FRC shifts focus to diversity as accountant numbers grow
Accounting's watchdog, the Financial Reporting Council, is turning the focus of its annual report to industry trends on of diversity and inclusion. Plus it's planning an event to nudge accountancy bodies towards highlighting the issues.
The FRC'sannual Key Facts and Trends in the Accountancy Profession shows the sector's professional bodies,such as the ICAEW, have more than 530,000 members worldwide, an rise of 16,706 from 2017, which is the highest rate of year-on-year growth in the past five years.
This year, its 16th, the FRC requested data, collected voluntarily, on seven additional diversity indicators on the workforce of the professional bodies and firms.
Widening diversity
Anonymity has been maintained to encourage the accountancy profession to improve and widen its diversity and inclusion data collation in future years. The FRC asked whether accountancy bodies collected data on ethnicity, disability, religion/belief/ sexual orientation, school type, first generation to attend university and caring responsibilities.
The results show that the accountancy bodies currently used four of the seven additional diversity indicators to record student data. The other three indicators, religion/belief, sexual orientation and caring responsibilities, are not being recorded.
Representation at partner level
PwC and EY have the largest percentage of female partners (19 per cent), with KPMG and Deloitte at 17 per cent. KPMG and EY have 8 per cent BAME representation at partner level, PwC 5 per cent and Deloitte 3 per cent.
Melanie Hind, FRC executive audit directorsay7s: “I know from personal experience that accountancy is a route into senior roles in business.
Benefits of diversity
"It is encouraging to see that the number of people choosing the profession is continuing to grow worldwide.
"The benefits of having a diverse and inclusive workforce are well documented.
"The FRC is planning an event on diversity later in the year at which we will discuss with, and encourage the bodies and firms, to continue collecting diversity data and look at how to attract and develop talent from a wider cross section of society.”
Other key stats included in the FRC report:
- There are about 164,000 students in the UK and Ireland and nearly 590,000 worldwide.
- Global student numbers increased by 2.4 per cent.
- The number of registered audit firms was 5,660 in 2017, a fall of nearly 19 per cent since 2013.
- Fee income for the Big Four audit firms was up 6 per cent compared with an increase of 4.2 per cent for firms outside the Big Four.
- Fees for non-audit work was down about 9 per cent for Big Four and non-Big Four.
Complaints group says HMRC must do better!
Happy 25th birthday to the Adjudicator's Office, which has just released its annual report. First, what is it? Well, it deals with complaints against HMRC. Or as the report puts it: "We give HM Revenue and Customs (HMRC) and the Valuation Office Agency (VOA) the opportunity to learn lessons and make improvements."
The AO, which is run by the adjudicator Helen Megarry, also says it does this:
- Resolves complaints that come to us by providing an accessible and flexible service and making fair and impartial decisions.
- Supports and encourages effective resolution throughout the complaint handling process.
- Uses insight and expertise to support the departments to learn from complaints and improve services to customers.
Helen says, “There are signs of continued focus on improving complaint handling in the department. However, in practice the benefits and principles of good
complaint handling and learning are not fully understood throughout either organisation.
"This is apparent in the way in which individual complaints are handled. Although there are business areas demonstrating consistent improvement and evidence of good practice, more needs to be done to consolidate that across the board.
"Anyone accessing any part of the complaint process should be able to expect a similar level of service, focused on putting things right when they have gone wrong. That is not currently always the case.”
She adds: “We will continue to support and work with the department to identify and make improvement. I encourage them to continue to invest in sustainable improvements to complaint handling to access the full benefit of listening to their customers’ feedback to improve service.”
In a nice article about the AO, Jennifer Adams, AccountingWEB consulting editor asks: "Do accountants complain about HMRC's service enough?"
Processes reviewed
Jennifer points out: "The department costs £2,844,394 a year to run with only 60 staff (an increase on 56 in 2016/17). There is clearly a need for an independent AO, not least if their recommendations result in amendment or review of HMRC procedure. However, although the office does get results in getting HMRC processes at least reviewed, it must be difficult to have a large impact with the small number of employees."
The AO report looks very nice and make all the right noises, rapping HMRC on the knuckles where necessary and dishing out plenty of 'positives', too. The thing is, when you type the AO name into Google, let's just say coverage of the organisation is 'somewhat limited'.
Someone buy them a trumpet for their next birthday, perhaps... Meanwhile, I will be returning to the report in an effort to redress the balance slightly.
Accountant issues interest rate warning
The Bank of England's decision to lift interest rates for only the second time in a decade has received a mixed reaction... and worse.
The rate has risen by a quarter of a percentage point, from 0.5 per cent to 0.75 per cent - the highest since March 2009.
Mark Carney, BoE governor, says there will be further "gradual" and "limited" rate rises down the line.
Stark warning
So it was interesting to read this article in Accountancy Daily, which came before the Bank's decision. But it still holds good now.
It said: "A leading accountant has issued a stark warning that an interest rate rise will leave the Bank of England ‘with blood on its hands’ as more people struggle to cope with financial difficulties."
The hard hitting message is from David Birne, insolvency partner at chartered accountants HW Fisher. He says the hike will only make matters worse for those already struggling.
The number of personal insolvencies has soared to a six-year high in the three months to June, according to the Office for National Statistics.
Benefits cuts and high wages
High inflation, low wage rises and benefit cuts are the reasons why.
Individual insolvencies totalled 28,951 in the second quarter, a rise of 4.4 per cent on the previous quarter and 27.3 per cent on the same period last year.
Individual voluntary arrangements
A record number of people taking out individual voluntary arrangements (IVAs), where debtors agree to repay creditors some or all of what they owe.
Stuart Frith, of the insolvency trade body R3, says: "Although unemployment is low, there are more people earning variable amounts in the gig economy, which can make budgeting difficult.
David Birne adds: "This is a stark reminder of how many Britons are in the firing line. The Bank of England’s rate-setting grandees are determined to return interest rates to more normal levels, sooner or later. But it’s looking increasingly unlikely that they will be able to do so without getting blood on their hands.
Tip some firms over the edge
‘The number of people slipping into insolvency is up by more than a quarter on this time last year."
He says company insolvencies have fallen, but a rate rise could tip some firms over the edge.
"High profile failures of high street brands like Poundworld may grab the headlines, but there are more livelihoods at stake among the thousands of smaller retailers and builders who are steadily being driven to the wall,’ he says.
"At particular risk are Britain’s zombie companies – the weak businesses being kept afloat solely by rock bottom interest rates – who could be tipped over the edge when interest rates begin rising again."
Accounting rules in the line of fire
The Financial Times kicked off what promises to be a great series of articles on accounting this week with an excellent piece by Madison Marriage, titled "The big flaw: auditing in crisis".
The basic question is, with the big four dominating the scandal-hit market and big company bosses 'making the most' of the "fair value" system, what can the sector do to improve standards?
The article seems to have struck a chord with lots of accounting professionals everywhere, judging by the interesting comments, posted beneath it. One observer had this to say:
"Good article and on point. I am a qualified CA though moved on into investment many moons ago and am currently having a stand up battle with a big four firm insisting on something called 'straight line revenue recognition' on a certain financial instrument which has the effect of significantly overstating current income beyond what the counter party contractually owes us, is in complete breach of 'true and fair', the 'matching concept', nor has it anything to do with either the fair market value currently realisable on the instrument (let alone cost) and is completely divorced from both the contractual reality and common sense. It is an absolute absurdity and frankly offensive to anyone that understands finance or accounting for that matter."
Such is the consternation buzzing around the profession at the moment, the FT has been promted to produce a hard-hitting editorial comment that kicks off thus: "Bad audits and beleaguered auditors are symptoms of a cancer in the body corporate. The ... investigation into the flawed audit market suggests accounting standards may be part of the disease."
Structural dependency
It continues... "Structural dependency on four big firms is one problem. Another is auditors’ seeming inability to prevent investors being misled or to curb aggressive, even criminal, reporting practices. It suggests the rules are no longer fit for purpose. Accounting standard-setters have at least two laudable aims: to align rules globally and to close loopholes to abuse.
"Thirty years ago, it was easy for a bank to manipulate its profits by valuing loans and setting aside provisions for loan losses with little heed to economic reality. Some investors were delighted at the consequent smoothing of profits and dividends through the credit cycle.
"But the scope to minimise tax, inflate bonuses or simply obfuscate a decaying financial situation was great. Indeed, out-of-date numbers in US banks’ balance sheets were partly to blame for the savings and loans crisis of the 1980s and 1990s.
Boost share prices
Concluding that... "A key underlying principle of modern accounting is fair value... Unscrupulous managers, increasingly rewarded with equity incentives linked to accounting measures, have exploited the system. By writing up asset values in line with market values — whether real or estimated — they could book profits, distribute dividends, boost share prices and make incentive payments.
"Fair value accounting is clearly based on logic. But for it to work in practice it requires auditors to play the crucial role of arbiter. Straightforward market valuations are one thing. But when models and estimates are used as proxies, an auditor’s judgment is crucial to the credibility of company accounts. Yet the Big Four auditors have used their considerable lobbying power to hollow out their role, rather than accept that responsibility.
"The audit market needs to recover its original purpose of assuring investors and the public of the truth and fairness of accounts. Reforming the rules would be a critical first step."
This is an issue that is clearly reaching a tipping point. As ever, if there's going to be any significant action, it will depend on any campaign's momentum. And vested interests.
Can robots boost the accounting client experience?
One of the hottest topics of summer 2018, apart from the heat of course, is artificial intelligence. Wherever you look there are new takes on how AI is going to affect business and it can be hard to take on board some of the predictions. For instance, Gartner, the research and advisory group, reckons that by 2020, businesses will manage 85 per cent of their relationships without any human interaction!
In our conversations with accountants, AI can be too easily dismissed as not being relevant to their practices but when we explain how chatbots will work, it’s as if the lightbulb comes on and they can start to visualise the benefits.
Imagine having a new staff member who never takes a day off for illness, never needs a holiday and will never hand in their notice. Immediately, faces light up. Communicating with chatbots works exactly as if you were messaging a friend and the technology is there for chatbots to evolve and become intelligent virtual assistants that can perform a useful role within today’s accountancy practices.
Deep learning technologies
Over the past year, we have been working with Amazon Lex, which offers developers the same deep learning technologies that power Amazon Alexa. It is allowing us to build sophisticated, natural language, conversational bots to work with our apps. This is an exciting opportunity, we believe, for practices to generate big cost savings by automating some tasks that have, until now, required a member of staff.
The appeal of AI is not restricted to cost reduction. There are other real benefits including improving the client experience and eliminating the Google threat. We have long talked about the Google effect and how this poses a real threat to accountants as clients can find it quicker and easier to Google a question that they could ask their accountant if they were available 24 hours a day.
AI has the potential to change this and for accountants to offer a 24-hour, 365-days-a-year service that is manned by virtual assistants that can run help desks and help with scheduling appointments and other administrative tasks.
This frees up the time of administrative staff, so they can focus on higher value-add services and may help employees warm to their chatbot colleague.
Natural synergy for AI
While we do not agree that Chatbots are the new apps, as Microsoft’s CEO Satya Nadella said earlier this year, we do see them working closely with apps and providing interaction with tasks performed within the app and such as with calculators.
We see a natural synergy for AI within the practice environment following a careful analysis of its needs, the potential uses for AI technologies and their business value.
And, in the alpha launch of our own Virtual Assistant, basic voice and text conversations will help to deliver a heightened client experience.
Over time, this will be enhanced to become even more intelligent and to deliver better interaction with clients.
Conversational commerce
As we enter an age of conversational commerce, AI techniques will be used to improve client interactions, eliminate wait times and provide greater in-depth expertise. All of which will help boost client retention and differentiate the practice.
It may well be, that further in the future, there will be a dedicated chatbot tailored for each client, making them far more personalised as the intelligent systems driving them know all about the person they are helping.
They know their language, the services they require and their preferences and used in the right way, can help to make clients relationships truly ‘sticky’.
Investment priority
The move to AI technologies has been brisk, as demonstrated by the fact that in 2016, the term ‘artificial intelligence’ did not even appear in the top 100 search terms on gartner.com. By May 2017, the term ranked at No. 7 and Gartner predicts that by 2020, AI will be a top five investment priority for more than 30 per cent of CIOs.
The level of automation that AI can bring to a practice will undoubtedly drive great efficiencies and present accountants with opportunities to add value to clients.
The pace of technological change can be daunting, but the key is to remain open to new introductions that have been carefully developed by those working with the profession and to evaluate their ability to strengthen firms while at the same time helping to make cost reductions and improve efficiency.
MyFirmsApp provides a compliant solution for accountants, to help overcome these challenges whilst putting them at the heart of their clients’ mobile lives.
AI is the way forward for accounting
I spotted this headline in Forbes. "Why Artificial Intelligence Is The Future of Accounting". This statement seemed to run counter to a lot of robot scare stories I've come across since taking up my role as Accountex editor three weeks ago.
The author of a new study, Jean Baptiste Su, VP and analyst at Atherton Research, reckons: "More than most other industries, accounting hasn’t seen much innovation since the creation of double-entry bookkeeping - a process of recording both profits and losses - and considered one of the greatest advances in the history of business and commerce. That was over 500 years ago!"
Opportunities and serious challenges
He adds: "We expect that by 2020, accounting tasks - but also tax, payroll, audits, banking - will be fully automated using AI-based technologies, which will disrupt the accounting industry in a way it never was for the last 500 years, bringing both huge opportunities and serious challenges." Sound familiar?
And it's at this point that I realised just how many of these AI articles come equipped with a familiar rider, too. It goes along the lines of... machine learning efficiency needs to improve to avoid errors ... in order that automation can fulfill its promise. When it does, it'll be OK because accountants can take on a more advisory role.
All this is bound to become clear. One day. What does seem pretty clear to me now, though, is that there is a massive difference between automation and intelligence... artificial or otherwise.
And this seems to be overlooked by many observers in the field.
A way to go on GDPR
About two-thirds of businesses worldwide are not ready for the arrival of General Data Protection Regulation, which, in case you didn't know, is on 25 May.
But worry not... that's the headline figure from an EY survey. In Europe that figure rises to nearly two-thirds of companies have compliance plans in place. That's good news, as far as it goes. But that still leaves a third with no strategy...
Called to account on diversity
Diversity and gender equality are big news in so many areas of society at the moment. (Unless, of course, you are the BBC, where there is "no evidence of gender bias".)
Meanwhile, big accountancy firms PwC (they carried out the BBC gender survey), KPMG and EY are among the top 100 inclusive employers, as ranked by LGBT charity Stonewall.
Fiona Wilkinson, ICAEW vice-president, says, “Diversity is a powerful force for good. We know that businesses benefit from strong diversity and inclusion policies and practices that help both attract the best talent as well as a diverse range of clients.
"I urge member firms to do more to promote equality and diversity in the workplace and, whatever their size, to consider applying to Stonewall’s Index.”
And finally...
Drum roll... Fanfare ... Party poppers! It's time to look at the top of Accountancy Age's Financial Power list for 2018. And at number one in the top 50 folk who'll have the biggest influence on accountancy this year is ... Brexit Secretary David Davis. Oh dear.
If you have any comments or content ideas for us here at Accountex, please let us know in the box below or drop me a line at [email protected]
HMRC's MTD software supplier list is growing fast!
The updates for HMRC's MTD/VAT software supplier list seem to be coming thick and fast. That's three in the past fortnight with the latest arriving yesterday. There are now 27 providers in the line-up, up from 18 on July 15.
Joining the roll call are AlphaVAT – Tax Systems plc, Cirrostratus - Exedra, FreeAgent, KPMG LLP (UK), Landmark Systems, Motor Trade Technologies Limited, NJT VAT Return Manager (MTD), Tax Automation and Zoho Books.
The update on Gov.UK says: "HMRC is working with more than 150 software suppliers who have said they’ll provide software for Making Tax Digital for VAT in time for April 2019.
Follow the rules
"If your taxable turnover is above the VAT registration threshold you must follow the rules set out in VAT Notice 700/22 by 1 April 2019.
More than 40 of these suppliers have said they’ll have software ready during the first phase of the pilot, in which HMRC is testing the service with small numbers of invited businesses and agents. Other software suppliers will follow.
"The pilot will be opened up to allow more businesses and agents to join later in 2018.
The update adds that HMRC is working with software suppliers in the pilot who have:
- tested their products in HMRC’s test environment
- already demonstrated a prototype of their software to HMRC
"HMRC will update this list as testing progresses. Check with your existing software supplier to find out if they’ll be supplying suitable software before or after the pilot."
The list now looks like this
- Accu-Man
- Ajaccts
- AlphaVAT – Tax Systems plc
- BTCSoftware
- Bx
- Cirrostratus - Exedra
- Clear Books plc
- DTracks Limited
- eFileReady
- Farmplan
- FreeAgent
- GoSimple Software
- Intuit – QuickBooks
- IRIS
- KPMG LLP (UK)
- Landmark Systems Ltd
- Liquid Accounts
- Motor Trade Technologies Limited
- NJT VAT Return Manager (MTD)
- PwC
- Quickfile Accounting Software
- Sage (UK) Limited
- Simplifi-HQ Limited
- Tax Automation Limited
- Tax Optimiser
- Xero
- Zoho Books
We'll keep you posted on any more updates.
AAT joins debate on future of FRC
"Toothless" and "useless" are just a couple of the words used to describe the Financial Reporting Council.
In fact, the accounting industry watchdog is presently the subject of an 'independent' review led by former L&G chief and top Treasury official John Kingman.
Conflicts of interest and handling freedom of information requests are two areas where the FRC's behaviour has come under scrutiny. Its efforts to regulate the Big Four auditors have fallen short. Take Carillion as just one example.
Evidence from interested parties
So the review is going ahead as we speak. Kingman recently made a call for evidence from interested parties to help he and his panel to look at the FRC and the following areas:
- Role and purpose
- Effectiveness and its powers
- Potential role in preventing corporate failure
- Legal status and relationship with the government
- Governance and leadership.
He says: "The FRC’s work is critical to financial markets, the economy and public confidence. Trust, quality and credibility are the questions at the heart of today’s consultation. The review wants to hear the widest possible range of views on how the regulatory system can best deliver for the future."
Flavour of its opinions
One group - there will be many - to express its views on the FRC is the Association of Accounting Technicians. The organisation that has 50,000 full and fellow members, plus 90,000 student members is fairly forthright. Here's a flavour of some its opinions about the FRC, which are included in its submission of evidence to the Kingman probe. The full AAT response can be read here.
- The FRC has presided over a catalogue of audit failure that has brought its own existence into question. It failed to investigate the audits of most of the UK banks that played a role in the 2007-8 financial crisis and in September 2017 the FRC closed its investigation into the auditing of HBOS by stating that KPMG’s performance, “…did not fall significantly short of the standards reasonably to be expected.” It has been widely criticised for its performance in dealing with the collapse of both BHS and Carillion and on Corporate Governance its changes to tackle excessive executive pay are said by the FRC to be “world leading” but are entirely lacking in effectiveness.
- Looking to the rest of the world will be unlikely to provide a very effective solution to the challenges faced here in the UK. For example, Norway, having failed to implement EU legislation on audit, is listed as having the world’s second-best auditing standards according to the influential World Economic Forum Global Competitiveness Report (2017-18)
- If the FRC is unable to evolve and change its culture then its primary function of regulating accountants, auditors and actuaries could be transferred. This function could go to another department such as BEIS, an expanded FCA or even to the relevant professional bodies.
- If the FRC were to mirror the FCA approach to prioritising its work based on the potential for consumer harm this could avoid harm. For example, taking into account issues such as public funding, the number of employees, importance to the British economy etc.
- The FRC should do whatever it can to promote competition. Ofgem, Ofwat, the FCA and PRA all have clearly stated objectives to promote competition. Promoting competition is unlikely to cause any harm whilst it could achieve much.
- The FRC should consider adopting the FCA model of seeking to identify emerging trends and risks before they materialise. This could be done by undertaking forward looking market studies and data analysis and reacting accordingly. By doing so, the risk of major corporate failure, whilst not eliminated, could probably be reduced.
- The recent appointments of Julia Unwin CBE and Jenny Watson CBE (April 2018) are welcome. They bring much needed broader experience as well as doubling the number of women on what was previously a very male-dominated board. These appointments should not be the end of the process but the beginning and the FRC may wish to look at how it operates at grades below board level too.
- Along with various other stakeholders, AAT has consistently stated that any extra powers the FRC receives, any change in FRC structures or accountability or status, may well prove inadequate without a change in culture, mindset and outlook.
What do Accountex visitors think about the show?
Welcome to the last Daily Insight for this week. I'm off on a long weekend break. But fear not, I'll be back on Monday. Today I'm devoting Accounting Insight News's regular update to some of the 7,000-plus visitors at Accountex 2018 at ExCeL in London last week.
Accountant Nicola Donnelly, a first-time visitor to Accountex and Accountex Summit North, kindly agreed to write a short blog for us about her experiences of both shows. So, first up, here's Nicola:
I’m Nicola from MEND Accounting, based in Liverpool. My practice was created to help small sole traders and limited companies have an out sourced bookkeeper, and accountant. I love the bookkeeping side of accountancy, and creating financial statements for year end. However, for my larger clients, I do the bookkeeping and work closely with their chartered accountant to help them prepare for audit.
In my free time, I take part in running a Facebook group to support new bookkeepers and accountants in starting their own business called Accounting & Bookkeeping support (AAT, ICB students and qualified).
Such a buzz in the room
I’d never attended Accountex before, but when I heard about the North Summit, I thought this was an opportunity for me to go along and see what it was all about. There was such a buzz in the room, I got to meet some of my accountancy heroes like Elaine Clark from cheapaccounting Ltd who ran a Women in Accounting roundtable, and Amanda C. Watts who focused on marketing for accountancy practices. I was also introduced to Zoe Lacey-Cooper he director of Accountex. I love the way she has projected the image of a strong independent women in a male dominated industry.
I decided then there that I had to attend the London event. I'd been told it was double the size and over two days... so I booked it.
I have to say, it was an amazing experience, 260 speakers over two days, including Mark Lee, Mark Wickersham, Amanda C. Watts, Elaine Clark, John Whelan, Brad Burton, not to mention the software providers' stands.
A brilliant addition to an amazing day
Being a sole practitioner, I learn mostly by reading articles online. So how impressed was I by being able to speak to multiple software providers and their customers at Accountex, Seriously, if you didn’t visit this year you really are missing out! I couldn’t wait to sign up for some of the software when I got home. I have dates in my diary all week for calls with different suppliers.
The Accountex #myfirmsapp was amazing, I was able to plan my seminars in advance getting a text alert to remind me where I needed to be next. This was a brilliant addition to an amazing day. It's so easy to get side-tracked when chatting to the exhibitors (and eating the sweets/ goodies).
I still can’t believe I got all this CPD, access to speak to all these software providers, and the opportunity network with hundreds of accountants and bookkeepers at many different stages in their journey. Not to mention the huge motivation and inspiration ... and the books…. so many free books. All for free!
Ill definitely be at the next Accountex,... my only issue will be how I can split my self in 10 so I see all the speakers!
Here's what a few more of Accountex visitors had to say:
"I thought the show was excellent and full of resourceful information for business both for accountants and those who have to do accounting themselves."
Bharti Parmar Ms, tutor, Cubic Zirconium Foundation.
"In an age of bloated inboxes and an overwhelming information stream through social media channels, Accountex is a truly efficient way to collect information and chat to relevant people in the business of accounting."
Markus Mantere, business developer and sales guy, Arkimera Robotics AB.
"I visited Accountex 2017 for one day and ran out of time. I spent two days at Accountex 2018 and still ran out of time, but made some excellent connections and look forward to doing the same in 2019 as well as visiting the Accountex Summit North to see what that has for visitors."
Steve Darnell, director, Enquir3.
"As a small sole practitioner I found it useful to have discussions with software providers. Also, the seminars provided many useful viewpoints in these rapidly changing times.
John Hollow, director, Leddra Perry & Co.
"Essential for all Accountants in practice... not to be missed!"
Andy Downs, accountant, Independent Taxation and Web Services.
"Anyone who is somebody or wished to remain relevant in tax and accounting always attends Accountex!"
Olusegun Kazim, managing director, Certax Accounting, Basingstoke and Newbury.
"Thank you to Accountex organisers. Job well done."
Bhupen Mehta, director, R B ACCOUNTANCY SERVICES
"Accountex is an unmissable opportunity to see so much innovation and creativity in the accountancy profession."
Aleem Islan, technical consultation manager, Association of Accounting Technicians
"Accountex is a must for every accountant who is forward-looking and willing to make a genuine improvement to his/her practice operations."
Godwin Falade, managing consultant, Godwin Falade & Co.
"The round tables were interactive, insightful and incredibly relevant to everyone. It utilised accountants soft skills in a way no other seminar did. I found these sessions invaluable."
Ceyrilia Francis-Kirton, financial controller, Pentagram Design.
"It was my first time at this event, I was looking for new accounting software and this was an ideal place to talk with various software providers to see what was on offer. I was able to tell the providers what i was looking for in the software as an end user and some of the providers said it was something they hadn't thought about and would include it in the development! It’s an excellent event not only to get the latest information and insight, but also to provide feedback to suppliers."
Abbas Shah, partner, Hallam Jones
"Great day out at Accountex. This was our first visit and it was a great way to meet lots of suppliers under one roof. We found several pieces of software we will be purchasing and also using some of the exhibitors as service suppliers."
Karen Healy, Managing Director, Just Payroll Services.
Well, there you have it.... see you next week.
What are the latest accounting sector trends?
Some insightful sector trends are revealed in a just-published survey of more than 500 accounting and finance professionals.
Research titled Platform for growth, by accounting software group Wolters Kluwer and Kelley Market Research, offers a broad sweep of how the profession is changing and the challenges it is facing.
Let's start with technology trends.:
There's only been a slight shift at the top. Now cyber security joins cloud computing and mobile computing on top of the list, whereas six years ago cloud computing, mobile computing and social media were seen as the key issues.
Integrated solutions
In terms of cloud adoption, 28 per cent of those firms surveyed have implemented integrated cloud solutions, just one percentage point up on 2015; 38 per cent of firms have integrated solutions with one centralised database. That's compared with 31 per cent in 2017.
Now 25 per cent have a formal succession plan. In 2013, only 16 per cent had a written plan that had been signed off.
There's been good progress in the area of documented tax and audit processes, where 93 per cent of firms now report an uptake compared with about 70 per cent in 2011.
Enhanced client service
Enhancing client service is always seen as a top priority, though there's been a shift towards adoption of paperless workflows from recruitment and retention in 2015. Attracting new clients and revenue growth? It almost goes without saying.
Wolters Kluwer Tax & Accounting says: "The most successful firms are using technology to increase their revenue and profitability through automated business models."
According to the company, firms will enjoy greatest success if they:
• Adopt a forward-thinking technology culture
• Move to the cloud
• Carefully plan business succession
• Utilise more integrated solutions
• Have documented business processes and follow them
• Apply best practices to key workflows
Key findings: then and now
Wolters Kluwer adds in its report: "Cloud collaboration tools such as client portals also enable firms to more easily pursue opportunities outside their geographic area and provide the 24/7 access to data that clients and staff both expect today.
"With high profile data breaches occurring in the news, it’s becoming clear that enhanced security features - such as multi-factor authentication - are important considerations firms should be discussing, when adopting cloud solutions. Many firms see improved data security and back up procedures as one of the most important benefits delivered by cloud solutions.
"Finally, firms using more integrated solutions, including document management, workflow/project management, and client portals, enjoy better end-to-end automation. This increases the efficiency of tax and audit workflows and can lead to improved client service and overall revenue/ profitability.
"Combined with documented processes and best practices, the right technology will help firms increase their value and continue to serve clients well."