Christos V. Vasiliou: Global & local trends are reshaping our industry and the profession needs to adapt proactively

Christos V. Vasiliou, Managing Director at KPMG in Cyprus, explores the vital role of audit, tax and advisory in shaping global business resilience.

He also underscores the importance of fostering a future-ready workforce and embracing new technologies.

Given the rapidly evolving global business landscape, what role do you expect accounting firms to play in the future and how do you envision their function and influence?

Professional services firms play a critical role in the evolving global landscape, moving beyond their traditional roles as auditors to provide strategic insights that help clients navigate an array of service lines. This shift allows firms to support clients in building resilience and sustainable growth strategies, adapting to challenges ranging from technological disruptions to climate change.

What are the most significant challenges you currently face as Managing Director of a prominent professional services firm?

Leading KPMG in Cyprus involves managing multiple dynamic challenges. These include increased regulation and compliance and the resultant costs, adapting to the new norms and way of working, digital and operational transformation and, of course, talent attraction, retention and development. We aim at fulfilling all these pillars, because we recognise that they must work in harmony in order to enhance our quality of service to our clients. We continuously seek to meet and exceed the rapidly evolving needs of our clients and we focus on fostering a culture that values agility, innovation and excellence.

With revenue streams from professional services evolving significantly, how do you see the future of traditional services like audit/assurance, tax, and advisory/consultancy? Which service lines do you anticipate seeing the most growth over the next five years and are there emerging areas or new opportunities that you are exploring?

I expect that traditional core services like accounting and audit will remain important pillars for professional services firms like ours. These services are, however, evolving by leveraging on automation, technology and AI. The shift towards digital audits makes the process more efficient and interesting.

The nature of tax services has also evolved considerably over the past few years. Apart from the universal use of technology, tax has moved towards helping clients navigate complex global and EU regulations like transfer pricing and emerging tax frameworks. Both tax compliance and tax advisory are experiencing positive signs because of developments in EU tax frameworks and harmonisation across the European Union. Advisory services are continuously evolving in a dynamic way to serve clients’ needs in areas like digital transformation, cybersecurity, ESG strategies, operational excellence and risk management. Depending on the state of the economy and the number of deals in the marketplace, Deal Advisory also forms an important pillar of our Advisory function. With around 200 advisors on the ground, we continue building on our goal to be a trusted advisor for clients across all areas of need, helping them to innovate and grow sustainably.

What major trends, both global and local, do you see reshaping the professional services industry and how is the accountancy profession adapting to these changes?

Global and local trends are reshaping our industry and the profession needs to adapt proactively. Digital transformation is changing how we operate and deliver services, with AI, blockchain and machine learning being integrated into our audit and tax processes to enhance accuracy and efficiency. Locally, increased regulatory demands around Anti-Money Laundering (AML) and ESG transparency are driving us to expand our expertise and support in these areas. We are committed to adapting to these shifts by upskilling our workforce, investing in technology and expanding our capabilities to support both local and global client needs.

How do you envision the future of Cyprus as an international business hub and what steps are essential to enhance the country’s global appeal and competitiveness?

I believe that our country has great potential to solidify its position as a leading international business hub. With our strategic location, favourable tax and legal frameworks and skilled workforce, Cyprus is already an attractive destination for many global organisations. KPMG in Cyprus is committed to helping position Cyprus as a forward-looking business jurisdiction, by assisting in developing digital infrastructure and fostering partnerships between the public sector, educational institutions and industry. By focusing on high-growth sectors such as education, technology, green energy and maritime, we aim to support the growth of Cyprus as a centre of excellence for business and innovation.

As the industry evolves, what new skills or competencies do you consider critical for your workforce to maintain a competitive edge in the professional services sector?

At KPMG in Cyprus, we view our people as our most valuable asset and we are dedicated to equipping them with the skills needed to maintain a competitive edge. Digital fluency is essential and we are actively training our teams in data analytics and AI to meet the increasing demand for technologically advanced services. The use of technological tools in our processes, including audit, sits at the forefront of our priorities. Soft skills like adaptability, complex problem-solving and cultural awareness are also vital in today’s fast-evolving global business landscape. At KPMG in Cyprus, we foster a growth mindset and promote continuous learning, ensuring that our teams are not only highly skilled but also prepared to lead and innovate in a rapidly changing industry.

(This article was first published in the November issue of GOLD magazine. To view it click here)