June 2017

Manchester employers hit with auto enrolment inspections

Written by Karen Bennett, BrightPay: The Pensions Regulator (TPR) has begun to conduct on the spot employer checks across the UK. Inspector teams have visited dozens of businesses across Manchester to ensure they are complying with their auto enrolment duties and check that staff are being given access to a workplace pension scheme. The Regulator began their inspections in London and recently moved across to Manchester. Inspectors will continue to focus on other locations in the coming weeks.

These checks will aim to catch and highlight any employers who have not complied with their employer duties. The inspections also allow TPR to get a better understanding of any unnecessary challenges that employers are facing. Employers who have not complied with the law will face enforcement action from TPR.

Darren Ryder, TPR’s Acting Director of Automatic Enrolment, stress:

Automatic enrolment is not an option, it’s the law. Where we find employers are not complying with the law, we will use our powers to make them comply."

There’s no doubt that automatic enrolment has been a success story overall with a few bumps along the way. As of June 2017, over half a million employers across the UK have met their auto enrolment duties, with a staggering eight million workers enrolled into a workplace pension.

Auto enrolment is an ongoing process but it does not have to be a difficult one. Employers will need to monitor staff consistently every pay period to see if any employees become eligible due to a change in age or qualifying earnings. Employers will need to go through the re-enrolment process every three years and complete a number of mandatory duties. After the 1st October 2017, new employers must comply with auto enrolment once they employ their first staff member.

Payroll software, such as BrightPay, will automate your employer duties and cater for re-enrolment.

BrightPay is exhibiting at Accountex Summit North & Accountex London 2018.

by Rob Deighton

Which social media platforms are best for accountants?

Written by Mike Farrell, community manager at Likeable Local (first published on The Accountex Report in 2016): Whether you’re just starting out or are looking to expand your social presence, there are quite a few routes accountants can take in choosing which social media platform is best for your business. Many accountants fall into the trap of trying to tackle every social network at once—and wind up spreading their efforts too thin. Especially for accounting professionals, who are likely already wearing many others hats, using your time efficiently on social media is crucial.

So, what platforms should you be focusing on? In order to properly determine the answer, you first need to ask yourself two questions:

What kind of audience are you targeting? Different demographics have different frequencies on the various platforms and this will affect your social strategy. Also, consider your intended brand voice, because each platform lends itself to a particular style of communication.
What are your businesses’ overall goals? Spell this out before you begin investing time in social media. One of the biggest mistakes I see a lot of business owners make on social is to move forward without any real plan in place. Determining the objectives of your marketing efforts helps you decide which platforms to focus on because each platform can best be used for different purposes. Are you trying to grow awareness for your brand online? Are you trying to promote specific offers/sales? Are you trying to drive followers to your physical location?

Facebook

Let’s begin with the social media juggernaut, Facebook. By now, it is almost assumed that everyone has a Facebook profile. More important for you, it is also assumed that all businesses are now on Facebook. Maintaining an active presence on the platform is vital because it’s currently the most ubiquitous social network, with over 1.5 billion users. Facebook has powerful advertising capabilities built right into the platform with the ability to create custom audiences and target by interests and demographics.

Facebook is also very useful because it allows for a variety of different functions such as short form posting, long form posting, and photo/video sharing. It encompasses most features of other social networks, making it a popular choice among marketers. Content on Facebook is less time-sensitive than other platforms, such as Twitter and Instagram, however it is largely pay-to-play if you want your followers to see your posts. Also important to consider with Facebook is that the user demographic is starting to skew older than other networks, which could benefit you or not, depending on your business.

In a reputation and referral-centric business such as accounting, Facebook can prove to be even more useful. In a relatively new development, Facebook is moving more into the local search sphere to compete with other listings, such as Yelp. Ensuring that you maintain your social reputation on the platform could be key in driving future clients. Social media is the new word of mouth and Facebook can be a powerful driver of referrals.

Instagram

Next, let’s move on to Instagram, which passed Twitter last year in terms of monthly active users. The platform boasts one of the highest user engagement rates, making it an effective space to build a brand community. Instagram is an especially great platform for businesses that have products that lend themselves to being showcased visually. Restaurants, jewelers, and clothing manufacturers are all examples of businesses with visually appealing products that are perfect for Instagram.

Not to stereotype, but accounting firms aren’t businesses you’d think would lend themselves particularly well to pictures or video. Don’t worry, the ‘Gram is also a great place to humanize your brand by showing off your company culture. This is especially important on Instagram because users on the platform tend to skew younger, and these younger consumers value connecting with brands online. Office shenanigans and behind-the-scenes looks can go a long way toward putting a face to your business.

One challenging aspect of Instagram for marketing purposes is that the platform does not support links within posts. You are only allowed one link within your bio, which can make it challenging to redirect followers to content on your website or blog. One way around this is to make use of Instagram ads, which redirect to an external website. These ads were originally for larger brands, but have recently become more affordable for small businesses.

Twitter

Twitter has recently been suffering an identity crisis of sorts and its user base has started to stagnate. However, that’s not to say that it’s all right to start ignoring the platform. Twitter remains a great place to receive small bursts of current information—and to connect with industry thought leaders. The platform lends itself particularly well to reaching out to people you may not fully know yet. Here at Likeable, we connect with people on Twitter all the time, and frequently are able to take conversations with prospects into email or Skype.

Twitter is particularly useful for redirecting to external content, and you can insert multiple links into a single tweet. The network also has powerful advertising capabilities with the added bonus of the promoted tweets looking very similar to normal tweets. If you want to maximize your reach on Twitter, it’s recommended that you make use of ads because the lifespan of tweets is so short. Ads will boost your reach and the platform even gives you estimates of how many link clicks you can expect to receive based on your ad spend.

Like Instagram, Twitter is great for fostering an engaged community around your products or services. It’s a helpful place to find out what people are saying about your business, your competitors, and the accounting and finance industry in general. There are also listening tools to help you gather these insights in order to make better-informed decisions moving forward. Finally, Twitter is often used as a customer service platform because of its real-time nature, so make sure you are responsive!

LinkedIn is an interesting network because its audience is more easily defined than that of other platforms. Billed as the “Network for Professionals,” LinkedIn can serve a variety of purposes for both businesses and individuals. If you are targeting clients of a certain profession or net worth, this may be your most effective option.

One of the most powerful aspects of the platform is its networking capabilities. On LinkedIn it’s possible to connect with and recruit users based on industry and common connections. It’s an especially powerful resource for B2B companies and can also be used to establish your thought leadership within an industry.

Like Facebook, LinkedIn also has a helpful groups feature that allows you to have private conversations with thought leaders on trending industry topics.

If you are not a B2B company, you can still certainly find use for the platform as an individual, but for a B2C company it might be better to initially stick to the other platforms described above.

Snapchat

Snapchat is an especially tricky platform to get started with for two reasons. First, the user interface of the platform is quite counterintuitive, making the learning curve for the app rather steep. Second, the core demographic for Snapchat is so young that businesses are still trying to figure out how to effectively market on the platform. However, Snapchat is currently the fastest growing social network, so it would be wise to at least acknowledge the transient messaging app.

Snapchat has quickly moved from the fringe of social media relevance to a legitimate platform where the likes of BMW and Hasbro now frequently advertise. The company has deftly figured out a way to include paid advertisements within in its app without disrupting the user experience. Now for smaller business purposes, the paid advertisements are not within the realm of financial feasibility. However, this is not to say that accounting firms can’t find use for the app.

As of last year, over 400 million snaps were sent daily. With over 25 million users in the United States alone, there is a good possibility that you may have some potential customers frequently using the app (even more likely if your target demographic is skewed younger). Especially with the inclusion of the story and chat features, companies are starting to figure out ways to effectively use Snapchat’s organic reach potential.

Snapchat differs greatly from some of the other platforms profiled here because of its innate casual and time-sensitive nature. More so than any other network, Snapchat really allows you to be your authentic self. The platform will be most effective for your business if you plan to have a personal brand voice and want to target a younger customer base. For accountants, being among the first in your industry on Snapchat could provide a distinct first-mover advantage. Picture targeting younger clients with casual Q&A sessions over snaps, or enticing them to get their taxes done for the first time with time-sensitive offers.

This post was first published on The Accountex Report in May 2016: www.sleeter.com/blog/2016/05/social-media-platforms-best-accountants

Mike Farrell is a community manager who works in Likeable Local’s NYC office, in the USA.

by Rob Deighton

Big opportunities for forward-thinking accountants

We asked a selection of Accountex London exhibitors for their thoughts on the biggest opportunities for smaller accountancy firms and sole practitioners in the years ahead. Here’s what they had to say…

Andy Bailey, founder & CEO of Octopus Blue:

The accountancy profession is going through a period of accelerating change. When I started my accountancy career around 20 years ago, I was a historian and an archaeologist; last quarter’s VAT return, last year’s accounts and tax returns, carefully digging through boxes of paperwork to put together what had happened…

Today’s accountants are digital pioneers, exploring new opportunities for their clients. With MTD rapidly approaching, PSD2 opening banking standards and hundreds (thousands?) of software vendors and applications out there to help you out, you need to be looking forward and working with your clients to help them maximise efficiency and profits.

They don’t teach you this at accounting school, and this is where the biggest opportunity lies. Compliance is important, but with software and robots increasingly able to automate this, your focus as a sole trader should be on adding value to your clients as a trusted business advisor. That phrase is becoming cliché, but that’s because it is exactly how 21st Century accountants are evolving.

Rich Neal, CEO at MyWorkpapers:

Digital Transformation is probably both the biggest challenge and opportunity for sole practitioners, particularly ‘coffee shop accountants’ – ones that make the effort to get out to see their clients and discuss their business in a coffee shop, away from the interruptions of business. These accountants built a relationship with their client, it’s not about what they bill them for year-end work. Those that embrace digital, rather than run away from technological advances, such as cloud-based accounting, can be described as digitally savvy, and use it to their advantage and will outperform their luddite rivals. Not only are they aware of current and emerging IT, they understand how it can be applied to run their own business, as well as that of their clients.

Those that are blinkered to new ways of doing things, or ‘tools’, will inevitably fail to be proactive with clients. If they do not recommend how technology can transform the client businesses, and facilitate ‘making tax digital’, their clients will be forced to take the initiative themselves…and probably find a new accountant. In the past, practices may have pushed certain technologies, such as Sage, but the new generation of sole trader accountants are not shy of acting more impartially and simply advising on what tools are appropriate for each particular business, from the latest cloud book-keeping software through to other real-time information and collaborative applications; such as Microsoft 365 or Dropbox. In turn, this consultative approach acts like ‘client glue’ delivering greater value, respect, trust and long-term loyalty of clients.

Reshma Roy, head of marketing of Zoho Finance apps:

Sole practitioners get the flexibility to choose work with clients that they feel best. Their relationship with clients is more personal and there exists an opportunity for them to provide service and assistance on a deeper level. They become a trusted advisor and even a friend to many of the small business owners.

As your client base increases, it's important to keep up the relationship with existing clients strong. They must plan for growth and position themselves, identify a niche client base and develop an efficient strategy to capitalize on this opportunity with an efficient system in place.

Many accountants are turning to online accounting tools to automate tax filing, preparing financial statements, and integrating their accounting software with other apps, like CRM, to save as much data entry as possible. Technology today has empowered the lives of accountants and has helped them transition into the role of a business advisor. By setting up a digital plumbing system, accountants can manage their clients' finances, as well as focus on advisory services that go beyond the work of a traditional accountant.

The accounting landscape is changing and its changing fast. As an accountant or a business professional, there’s a growing need to keep up with the current trends, especially on the technology-front. Accountex, for example, provides you with an excellent opportunity to meet your current software vendors and potential new ones, allowing you to re-evaluate your position.

David Hughes, MD of PeerPay:

With the evolution of Robo advice, Making Tax digital, and more and more Accounting platforms, it is becoming more difficult to charge for standard book keeping services. Accountants need to embrace the digital revolution, build strong links with strategic tech solutions and build a value-based proposition for clients.

Looking back 10 years ago, only two Accounting practices used online Accounting and it wasn’t seen as a service for the future. Now around 50% of quality practices use technology and, with MTD on the horizon and Pension AE, it is likely that all those that want to survive will be ‘cloud based’.

Younger generations of clients will be expecting the ‘face book’ real time accounting and information that they can get from their bank/apps and other instant data feeds – spreadsheets and static data will not be good enough to grow with the upcoming superstars of business.

Ashley Leeds, Business Development Director at Mint Trio:

The future is looking very bright for accountants now. Scouring the job pages you see lots of practices looking for staff and the professionals that I speak to have never been busier. But why is business looking so good? Is it the increase in the number of small business needed advice? The niche areas that people work in? Or, just the sheer amount of work that is being piled upon the profession from the different government agencies?

Whatever it is, busy times are ahead and for the forward-thinking accountant, it is a great opportunity to make better profits and attract new clients. With MTD on its way, small business owners need more help than ever before.

Gone are the days of the accountant doing retrospective work. It is not just about statutory deadlines or final accounts, today’s business owners want help and advice. So the proactive accountant can find new revenue streams by helping grow their clients businesses. With all the new software available in real-time, the accountant can offer top advice at the right period.

If you want to make more money you need to look at ways to help your clients grow, increase their profit or to just be efficient with their cash flow. If you are ahead of the curve, you’ll be recognised as a business advisor rather than an compliance provider and will attract your ideal client. You need to set your business up as an advisory business that will do the compliance work as part of the service, rather than doing the compliance work with a bit of advisory on the side. There are loads of tools available today to make this approach easier and manageable for the sole practitioner.

This post was orginally published on the Accountex London website: www.accountex.co.uk/big-opportunities-small-firms-top-tips-accountex-pros.

Month: June 2017

Visiting

Exhibiting