Organizational Structure of the MAS Practice or Division

I. STAFF PYRAMID AND BILLING RATES

LEVE
L
1

POSITION
S
Partners,
Principals,
Directors
Senior
Managers,
Managers,
Supervisors
Senior
Consultants
, Seniors
Associate
Consultants
, Staf

DESCRIPTION

ACTIVITIES

The Top of the

pyramid
Typically the most
experienced highly
paid professionals
Normally responsible
for the:
- Successful
completion of
engagements
- Dealing directly
with clients
- For selling work

Senior
Managers,
Managers,
Supervisors

The next tier of the

pyramid is made up
of them
They perform weekto-week
management of
engagements and
are responsible for:
- Identifying new
client prospects
- Assisting in the
sales process

Performing
practice
planning,
Administerin
g and
developing
practice,
Consulting
with topclient
managers,
Approving
engagement
reports, and
Managing
client crises
Planning
engagement
s
Evaluating
consultants
Supervising
consultants
Writing
proposals
Reviewing
working
papers and
reports
Consulting
with client
managers
Serves as
expert in
one or more
applied
knowledge
areas

BILLING
RATES
P10, 000
to
P20,000
per hour

P 8,000
to P 10,
000 per
hour

Senior
Consultants
, Seniors

Associate
Consultants
, Staf

The third tier of the

pyramid includes
these individuals
They typically have
2 or 3 years of
consulting
experience
They are capable of
supervising the daily
work of the younger
staf.
They possess the
right combination of
experience and
dedication to
complete diferent
projects with limited
supervision
Normally, seniors
are short in supply in
most firms
The final layer of the
pyramid consists of
the young or new
staf
Depending upon the
firm, these
individuals usually
have less than 2
years of consulting
experience and may
have been hired
directly out of
graduate or
undergraduate
school
Some firms require
prior business
experience, while
others prefer to train
their own personnel
and hire some
undergraduate
students

P5,000
to P
8,000
per hour

P2,000
to P
5,000
per hour

II. PROBLEM AREAS IN RENDERING MAS BY AN INDEPENDENT ACCOUNTING

FIRM
1. Questions as to the efect of the practice of MAS on the firms independence.
2. Development and maintenance of a high level of competence in MAS.
3. Questions of what fee to charge.
4. Question of AUDIT-MAS cooperation in obtaining engagements.
5. Question of regular communication between the MAS function and the rest of the
firm.
III. FINANCIAL MANAGEMENT OF A MAS PRACTICE
A consulting practice is a business and, like all businesses, must have financing.
Financing can be provided by capital invested by you or the initial group of
consultants or by funds borrowed from banks and others

This will be used to pay and fund for:

- Monthly operating expenses
- Accounts receivable that represent time billings to client.

It is prudent to have working capital for at least three to four months

expenses
- Care should be exercised to avoid a FINANCIAL TRAP where funds are
received and spent before the work is actually performed.