Global financial accounting advisory market set to reach $127 bn by 2028

In just three years, Pierag Consulting has carved a niche in the assurance and advisory services space, attracting renowned clients across diverse industries. Founded in 2021 by Abhishek Gupta and Pierian Services Pvt Ltd, the firm boasts a strategic network with offices in Gurugram, Jaipur, Chandigarh, Bangalore, and Washington DC. Leveraging a 20-year legacy from Pierian Services, Pierag has established itself as one of the fastest-growing consultancies.

In an interview with Bizz Buzz, Abhishek Gupta, Founder and Managing Partner, Pierag Consulting, sheds light on Pierag's impressive client roster – including the world's largest e-commerce reseller and the US's leading solar company. Gupta also discusses Pierag's ambitious plans for further expansion in the UK and Australia, solidifying its position as a global leader in assurance and advisory services

How did the company evolve over the years?

Pierag Consulting has undergone a remarkable evolution since its establishment in February 2021. Initially, with a modest team of around 5 people, we embarked on our journey by securing a prominent Management Consulting firm in the US as our first client for Risk and Accounting Advisory Services in March 2021.

Building on this foundation, we swiftly expanded clientele by securing a partnership with one of the top Public Accounting firms in the US, establishing a substantial team to support their assurance services. By August 2021, Pierag's growth trajectory surged further as we extended our services to one of the world's largest Venture Capital firms.

The year 2022 witnessed a significant milestone for us, as we entered into a collaboration with Baker Tilly-US, one of the top 10 global public accounting firms. What began as a simple partnership evolved into a unique business proposition, culminating in a joint venture between Pierag and Baker Tilly US in July 2022.Currently, Pierag boasts collaborations with renowned industry giants that include the Global 7th largest and India's largest Airline, the World's largest e-commerce company (resellers), and one of the largest Solar companies in the US.

From its humble beginnings as a start-up, Pierag has swiftly ascended to become one of the fastest-growing organizations in the domain of Assurance and Advisory services.

What is the USP of the company? And what are the services that the company offers?

Our USP lies in the commitment to distinctly serving global clients. Founded with the motivation to bridge the gap left by the Big 4 firms, Pierag stands out by offering tailored solutions that address the diverse needs of its global clientele.

Headquartered in Gurugram, our offices are strategically positioned in Jaipur, Chandigarh, Bangalore, and Washington DC, facilitating seamless access to its services across key geographical regions. This extensive network enables Pierag to serve clients spanning industries in the US, UK, and India.We offer a comprehensive suite of services aimed at enhancing client value and driving business growth. These services include Audit and Assurance, Accounting Advisory, Business Risk Advisory, and Technology Risk Advisory.

What kind of clients do you seek who will benefit from your kind of services?

At Pierag Consulting LLP, we seek clients who can benefit from our specialized services tailored to meet their unique needs and challenges. We currently serve clients across the globe, with a primary focus on the US market, particularly global accounting and advisory firms.

In the domestic space, we work with clients spanning all industries. Whether it's a large corporation, a mid-sized company, or a startup, we tailor our services to suit the specific requirements and objectives of each client, delivering personalized solutions that drive tangible results and long-term success.

As part of our growth strategy, we are targeting new markets, particularly the UK and Australia. We aim to extend our reach and establish strong partnerships with clients in these regions, leveraging our expertise and experience to help them overcome challenges, seize opportunities, and achieve their business goals.

How would you define the rising demand for consulting and advisory services across various sectors and what factors driving this trend?

As per industry insights, the global financial accounting advisory market is expected to reach $127.320 billion in 2028, exhibiting a CAGR of 5.3 per cent during the forecast period keeping 2023 as a base. The Indian market is also expected to grow at a similar pace of over 5 per cent as per industry estimates.

With the implementation of various regulatory reforms in India like updates in accounting standards, sustainability reporting, data protection laws and additional compliance requirements from authorities like RBI, SEBI, and MCA, businesses in India are increasingly seeking people with specialised skillsets which add to the demand of advisory services. The recent inspection reports for audit firms by the National Financial Reporting Authority (NFRA) highlighting areas for improvement in audit quality might also result in stricter enforcement of reporting requirements resulting in the growth of advisory services.

What is the importance of audit readiness and financial regulations providing insights into the challenges faced by emerging businesses?

Audit readiness and compliance with financial regulations are crucial for emerging businesses as they navigate the complex landscape of regulatory requirements and stakeholder expectations. As regulators, like NFRA, create stricter regulations on auditors, getting a clean audit by companies will become more challenging resulting in additional time and effort of the finance team. India ranks third in the world ‘startup’ ecosystem.

Since startup entities grow at a very fast pace, it becomes difficult for them to upscale their finance function at the scale required, resulting in the need for consulting firms. Conducting an audit readiness assessment allows organisations to proactively address any deficiencies, reduce the risk of non-compliance, and ensure a smoother audit process. It provides an opportunity to fine-tune processes and documentation before the formal audit begins. The audit readiness team also acts as a bridge between the client and the auditor to ensure a smooth audit, resulting in cost savings.

How can organisations identify vulnerabilities and prioritise risk mitigation strategies through gap assessment?

The first step in any risk mitigation plan is risk identification. Bring in stakeholders from all aspects of the business to provide input and have a project management team in place. As many perspectives as possible should be considered when identifying or defining risks. The next step is to analyze the possibility of occurrence and the negative impact if the risk were to be realized.

Based on the severity of the impact and the readiness of the organization, it needs to prioritize its strategy to address this risk. Organizations are dynamic and so are business needs; therefore, an organization must have strong metrics for tracking each risk, its category, and the corresponding mitigation strategy.

What is the road to IPO readiness and the key considerations and focus areas for companies planning to go public?

The road to IPO readiness is a 12-24 months journey that transforms a company into a public entity and this is guided by several key considerations. Firstly, approaching the IPO as a transformational process rather than just a transaction is extremely important.

Behaving and operating as a public company at least one year before the IPO is also crucial along with having a strong financial performance and adapting to increased transparency. Performing a thorough gap assessment is essential to identify areas for improvement, such as leadership, organization structure, and investor communication.

In addition to this, a health check, ideally an IPO readiness assessment and diagnostics, should be performed and strategic options should be evaluated. A test run should be conducted for the preparation of the financial disclosure and internal investor relations reports. It is also imperative to identify ways for improvement in fast closing ability and implement required IT systems to meet financial disclosure requirements. One of the most important points is to seek help from external consultants wherever there is a gap in the available skillset.