Month: May 2019

Beyond MTD: managing change in the age of digital accounting

The recent implementation of Making Tax Digital was a huge shift for businesses and accountants alike – and the ‘soft landing’ period will undoubtedly throw up some opportunities and challenges.

But fundamentally, it’s worth remembering that digital accounting is not a short-term trend, and MTD is just one part of it. Over time, more and more elements of accounting will be digitalised. But the pace of change will be different for different firms – early adopters may well have a clearer roadmap in place for digitalisation, while others may be struggling to know where to start. In either case, being prepared to manage change is a necessity.

In my view, there are five key questions accounting firms must ask when preparing to migrate to a fully digital practice:

1. How digital do you want your firm to be in 12 months, 3 years and 5 years’ time?
2. What is your current technology setup and how are your team and clients using it?
3. Do you have any key gaps in skills, technology or processes, and how can you fill them?
4. How will you communicate the benefits of the changes to clients?
5. Are your management team and staff fully on board?

The more digital your firm becomes, the more value you will gain. But the process of becoming digital will depend on how you address the considerations above, so let us look at each in turn.

How digital do you want your firm to be?

You don’t transition to a fully digital practice overnight. Not successfully, anyway. Rather, you will need to plan the scale of change and how quickly it will happen based on your firm’s people, skills, technology and resources.

Knowing what your firm does and doesn’t have, you can then set realistic goals for 12-month, 3-year and 5-year intervals, all working towards migrating to fully digital accounting. Phasing the transition like this allows you to create detailed plans for each stage, offering more control over the process.

As part of this, firms should also set goals for how many clients they want to transition in any given period. However, make sure to consider the technology each client has in place when doing this.

What is your current technology set-up?

Most firms now use at least some cloud technology, whether that’s in the form of shared document drives, cloud-based servers or suites of cloud-based apps. It’s therefore crucial to understand the extent to which your staff and clients are already using these tools.

As mentioned above, knowing what technology a firm has available can help you plan and set realistic goals for implementing a transition process. And if staff are already familiar with using digital tools and processes, they will adapt more easily.

Knowing what your staff and clients have tried before – along with any problems experienced – when it comes to adopting new technology will also help you identify and avoid potential obstacles.

Finally, in a large-scale data migration, consider whether you have the right facilitative processes in place for both desktop-to-cloud and cloud-to-cloud data transfers. The former is far more common, but most suppliers should be able to accommodate cloud-to-cloud processes as well.

How can you fill key skills, technology and process gaps?

Planning a transition to digital accounting should involve identifying two things from the start:

1. Key gaps in skills, technology and processes at your firm.
2. How you will fill these gaps when you find them.

This is important because your client relationships depend on the competence of your staff – and the reliability of the technology they use. And you can’t afford to damage trust with clients due to a lack of the right training, expertise, or tools.

For instance, you can’t afford to wait until after the transition to begin training staff on how to sue new processes and technology. This would make the changes difficult to implement and could lead to mistakes or oversights. As such, you must make sure you have the right people, teams and partners to take charge of important change management tasks. It’s also vital to commit resources to the transition – you can’t be half in and half out.

How will you communicate the change to clients?

To ensure a smooth change to a fully digital practice, you must keep your clients informed throughout the transition process. So as part of your initial plan, you should have a clear process in place to communicate with clients, explaining the nature and timescale of the transition and, more importantly, how it will affect them. Above all, make sure clients understand the benefits of the change - and be clear about how you will help them realise these benefits.

One crucial consideration here is whether to make certain tools or processes mandatory for clients. In some cases, clients may not be keen on being told what to do. But this is why you need to clearly communicate your reasons for making necessary changes.

How can you get staff on board?

Just as you need to communicate clearly with your clients, everyone within your firm should be fully informed about the transition process. Staff must have the right amount of insight into the scale and schedule of the changes, with no ambiguity about how their work may change after the transition. Be sure to explain how the firm will help existing staff adapt to the change, outlining plans for training sessions on new technologies and requirements.

And how about your management team? Well, even if they are not directly involved in planning and implementing the transition, you should definitely ensure they are kept as well informed as possible throughout the process.

Furthermore, hiring is an important consideration. You may be tempted to prioritise bringing the most experienced accounting staff on board, but it is equally important to hire people with the right enthusiasm for learning how to use new technology.

The benefits of getting digital change right

So, with all the above considerations in mind, what are the benefits of transitioning to a fully digital accounting practice? A few prominent examples include:

• A simplified compliance process via greater automation
• Insights into performance and growth opportunities
• Better analysis and mitigation of risk in projects and ventures
• Automated management of accounts
• Repeatable, transparent systems
• Compliance with regulatory changes in technology requirements

In summary, the shift to a completely digital practice will in most cases be a lengthy one, and not without its challenges. The advantages, nonetheless, are significant – giving firms an even greater incentive to get started now if they haven’t already.

Will Farnell, founder of Farnell Clarke and consultant at Soldo

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by Rob Deighton

Protect your payroll data from identity thieves

Identity thieves are ALL up in your business, like, literally. Any bit of personal information can be used to imitate you in some way online and steal your identity.

But access to sensitive personal data, the type that payroll holds on you, well, that is like the pot of gold at the end of the rainbow for identity thieves. If they gained access, they not only have all your identifiable information such as your name and email address but they also have your National Insurance number (oh boy), your home address, your employer details including your employee number and your financial information i.e. your bank details (jackpot).

With this much data about you, in this technological age, they could not just steal your identity, they could:

• Access your funds and take all your money - yes really.
• Ruin your credit score - any shady dealings would be done under your details so you would have to deal with the fallout.
• Increase your premiums - again, if your online presence is shady then you will not be trusted and they won’t care if it wasn’t you or not. If you have a bad track record then hey presto your premiums increase and this, along with your credit, will be affected for years.
• They could impersonate you online and forge your tax return to get your tax refund - the ultimate insult.

The worst thing is that it’s SO EASY to obtain this sensitive data if you, and especially your payroll department, don’t take the appropriate measures to safeguard it. The main areas identified in which sensitive personal data can be obtained are as follows:

Phishing - You know the drill, you get an email that looks legit, you click on a link and BAM, the hackers have access to your computer and all its data.

Shoulder surfing - you might think this is a joke but people LITERALLY pretend they’re workers and walk into offices and make a note of sensitive data behind people's’ shoulders and then just walk out.

Dumpster diving - If you haven’t disposed of sensitive data that’s contained on hard drives or paper then there are people in this world who will climb into a bin to get it. TIP: use your shredder.

Vulnerable machines and networks - Now this one is the most important. It’s what gets most companies in trouble and is the leading cause of data being stolen. You can shred your confidential waste, you can destroy your hard drives, you can make sure no one has access to the office who isn’t an employee. But if you haven’t got proper protection against thieves who are trying to break into your data then you are doomed to fail.

This is especially true for any software, machine and network that is used to process payroll. The payroll department will be the place that the hackers want to get to; where all the data they need is stored. But there is a cost effective and easy solution to ensuring that this doesn’t happen and it is by using a dedicated payroll system that protects your payroll data such as BrightPay Connect. All communication between your payroll software and the BrightPay Connect servers is carried out on a safe channel with maximum security. They use various methods to protect against things like data injection, authentication hacking, cross site scripting, exposure flaws, request forgery, and the many other types of vulnerabilities that cause data leaks.

But don’t just take my word for it, check out BrightPay Connect here -  .

by Rob Deighton

How to boost business efficiency with a payroll partner

Pay Check – the specialist payroll services provider – brought 10 leading finance practitioners together at Accountex to discuss the challenges SMEs are facing around payroll and why working with an outsourced payroll partner could help

"Our people are our greatest asset" has become one of the best-known mantras in the business world. It stands to reason, then, that paying its people correctly and on time is one of the most important responsibilities a business has. So why do so many small and medium-sized (SME) firms put poorly-trained and under-resourced in-house teams on payroll duty?

A pressure to trim administration costs is often one reason. That’s the experience one of Rob Rattray’s clients had. Rob, director of r2 Finance, told fellow participants that the SME sought to cut costs after suffering losses for two years on the trot. Keeping payroll in-house would have placed enormous stress on employees who were taking on multiple roles and shifted focus away from what the company needed to do then, more than ever – focus on growth.

Outsource to focus on growth

Rob encouraged his client to move to an outsourced payroll service for staff, allowing the team to concentrate on business development. “The more you can pass on to someone who knows what they’re doing in an area that doesn’t add to your main focus – which in this case was sales – the more you can focus on growth prospects,” said Rob.

Selwyn Pye, Founder of business consultancy The Ngine Room, agreed that it’s important for SMEs to free themselves up from administration tasks to channel their energies into sales. He is currently working with one client that is making a series of acquisitions and is encouraging the SME to centralise payroll to an outsourcing provider. “It will reduce costs across all the new companies that they’re buying and help to make sure that each company focuses on its growth targets,” Selwyn said.

Navigating complex compliance

Outsourcing payroll is not solely about focusing on growth, however. It can also help SMEs deal with an increasingly complex compliance landscape. Katie Linstead, Business Development and Client Services Manager at Pay Check, told participants that new clients often get in touch, having got themselves into a compliance nightmare.

All new payroll compliance requirements in the past few years have needed investment in staff training and technology, plus annual software upgrades. Not only that, many new rules are easy to breach, and can potentially destroy a business. The new General Data Protection Regulation is a case in point. Sharing an Excel spreadsheet containing payroll data that isn’t password protected can easily breach the tough data protection rules, but still happens all too often.

Outsourcing payroll makes all of that someone else’s headache, Katie said. “A lot of the clients we speak to are incredibly stressed, scared and they don’t really know how they’re going to get out of that situation,” Katie added. “One of the things that we see when an SME outsources is that taking that stress away allows them to get over that precipice.”

Accountants are outsourcing too

SMEs often outsource to their accountants but even some accountants increasingly believe outsourcing the specialist area of payroll makes good business sense. Luke Streeter is Founder and Chief Delivery Officer of flinder, an international accounting, consulting and data analytics business. Luke told participants flinder outsources payroll on behalf of its clients and for its own purposes because it’s not an area flinder does or wants to specialise in.

Daljit Virdee, a director of his own accountancy practice, DSV Accounting, started his finance career processing large payrolls in-house, among other things, 20 years ago.

He told participants that the discipline had gone through so many changes and bolt-ons – such as workplace pensions – over the years that he now prefers to work with a specialist partner, many of whom have the scale to offer real value for money. He advises working with payroll partners who are members of the Chartered Institute of Payroll Professionals.

Not always a panacea

Some participants around the table warned that partnering on payroll is not always a panacea. Sophie Wright, director of WrightCFO – a consultancy of part-time finance directors and CFOs serving SMEs, said outsourcing payroll only saves you time if you pick the right partner. In her experience, payroll providers can often make mistakes and this means SMEs not only have to spend time checking the work of providers, it also dents the trust a client has in them. Robert Stell, founder and director of accountancy firm Bradbury Stell, said that, in his experience, high turnover of staff at outsourcing firms is often a factor in poor quality service.

“Salaries are so personal and when you get them wrong, the whole finance department looks bad and it can take ages to rebuild that trust in the finance department within the company,” Sophie said.

Picking a payroll partner

Luke stressed the importance for SMEs to pick a payroll partner that suits their needs and shares their brand values, as poor performance on payroll can ultimately reflect badly on their own brand reputation. An SME that promises its clients responsiveness and agility, for example, should look for similar qualities in their payroll partner. One example of that agility might be flexing a service according to a SME’s needs, rather than expecting the SME to take up a fixed service.

While carrying out thorough due diligence when selecting a payroll provider is important, participants agreed that word of mouth and networking are good routes to shortlisting firms to consider. There was a clear consensus that good payroll partners should be available, responsiveness and offer a consistent service.

Keeping the human touch

Looking ahead, participants wanted to see payroll providers evolve to offer a more automated and streamlined service, enabling clients to both provide and seek payroll data on the move via mobile apps. There was also a call for greater integration with HR management software systems so that payroll providers can access data such as new joiner forms and P45s, which already exist digitally in such systems.

Pay Check’s Katie agreed on the need for a move towards greater automation but warned of the necessity to maintain human interaction with clients – something that SMEs, in particular, still seek from their payroll partners. She explained: “For the future of payroll, the way we see it is, yes, embrace the technology, but we’re absolutely still focused on the client service side of it, too.”

by Rob Deighton

Who won the 2019 British Accounting Marketing Awards?

The winners of the 2019 British Accounting Marketing Awards were announced at Accountex, the largest accounting exhibition in Europe.

This year entries were accepted from both accounting firms and accounting industry suppliers in 5 categories, each category showcasing a different form of marketing that innovative and forward thinking businesses are using.

The awards were opened by Daniel Richard of MyFirmsApp, the awards sponsor, with a moving tribute to MyFirmsApp CEO Joel Oliver who passed away in December 2018.

With the accounting industry and the world in a state of evolution, the role of the British Accounting Marketing Awards in highlighting excellence and inspiring continued progress is crucial.

Amanda C. Watts, founder of TwentyTwo Agency and the British Accounting Marketing Awards comments:

"The way that we as a society consider and make purchases is changing dramatically, and we want to acknowledge and celebrate the firms and industry suppliers that are pioneering new and exciting ways to market themselves, to raise brand awareness and to build lucrative relationships with their prospects and clients."

Entries were accepted from every part of the United Kingdom from sole practitioners and multi-nationals, with the most exciting part being that businesses large and small are on equal footing.  Creating powerful and effective branding, marketing and sales is no longer about budget, it is about imagination.

The winners in each category are:

Accounting Firms

• Best Event Marketing: Kreston Reeves
• Best Content Marketing Campaign: Crunch
• Best Brand Building Campaign: Thorne Widgery
• Best Personal Brand: Alastair Barlow, co-founder of flinder.
• Best Rising Star: Steele Financial

Industry Suppliers

• Best Event Marketing: Practice Ignition
• Best Content Marketing: Karbon
• Best Personal Brand: Sam Warburton
• Best Rising Star: Fluidly

The British Accounting Marketing Awards are brought to you by TwentyTwo Agency, the number 1 authority on marketing for accounting firms. Their training and mentoring programs help accounting firms to achieve higher revenue with fewer clients. The awards are supported by Accountex, the leading exhibition for the accounting industry, and sponsored by My Firms App, global innovator in apps for accounting firms.

You can find out more about the British Accounting Marketing Awards, and register for next year, by visiting the website here: 

by Rob Deighton

Accountex breaks attendance records

Europe’s biggest accountancy event welcomed its largest ever audience, with an 18% increase for 2019

Accountex – Europe’s No. 1 conference and expo for the accounting and finance industry – has reported a record-busting 9,063 attendees flocked to its 2019 event, which took place at London ExCeL on 1-2 May.

It’s a massive 18% increase on the previous year, reinforcing the show’s position as the annual meeting point for the accounting and finance world.

“This is only the third year that Accountex has been part of the Diversified Communications portfolio, and so far we have seen the show grow and grow – but this year surpassed all expectations,” says event director Zoe Lacey-Cooper.

The unprecedented number of accounting professionals who thronged to the capital for the two day industry showcase came together to enjoy unrivalled access to over 230 exhibitors, ranging from software suppliers to cashflow forecasters, and take advantage of the expansive content programme, featuring more than 200 expert-led, CPD-accredited seminars, Keynotes and panel discussion in 12 theatres.

Ms Lacey-Cooper continues: “The bustling aisles and energetic mood of the exhibition hall didn’t subside once, from the minute the doors opened on Wednesday morning to welcome a flood of visitors, until the reluctant exit of thousands of attendees when the show closed on Thursday afternoon. The scorching success of the event is a true testament to the passion and enthusiasm of this thriving industry and the individuals in it… and we’re delighted to be a part of it.”

“A must-see event” – visitors describe Accountex 2019

Glowing testimonials have been coming in thick and fast from across the show floor. Fantastic, informative, insightful, lively, buzzing, well-organised, motivating, must-see, an amazing opportunity, and exceeded all expectations, were just some of the phrases that visitors used to describe this year’s stand-out show.

“Accountex 2019 was a whirlwind of an event. It really was the best way to get to grips with the trends happening in the accounting industry and to network with software providers and fellow accounting firms – all with the joint aim of improving our services for clients! A fantastic experience,” says Sasha Hoey, national marketing & business development executive at UHY Hacker Young.

“Accountex provides the impetus, inspiration and fresh ingenuity to continue to drive forward the business year after year,” says Douglas Quinton, director of Quinton.

“A great way to take the pulse of the accounting world,” says Emilio Reyes, finance manager of Mercy Ships UK.

“A must-see event for any serious accountant wishing to keep abreast of developments in a world of continual change,” says Stephen Quay, senior partner at Stephen Quay Accountancy.

“This was the ultimate event for anything and everything to do with accounting and taxation. I was going to attend for an hour or two but ended up going on both days. Would have returned for a third,” says Phoenix Debola, accountant at Phoenix Debola Accountancy Practice.

The industry’s favourite show

Visitors weren’t the only ones wowed by the show. Exhibitors at Accountex 2019 were also quick to praise the quantity and quality of the interactions and new business leads at the event. The huge crowds offered unequaled networking opportunities – almost half of visitors to the show were first-time Accountex attendees and their numbers included representatives from top UK accounting firms, big brands, government departments, big name bookkeepers and leading tax bodies.

Reflecting their positive experience, nearly 65% of exhibitors have already rebooked stands for 2020, with big names such as Xero, Sage, Intuit QuickBooks, TaxCalc, Futrli, Receipt Bank, FreeAgent, Silverfin, Thomson Reuters and Wolters Kluwer among them.

“I’ve travelled the world exhibiting at accounting conferences and Accountex London is one of the best I’ve seen. A balance of quality attendees and great content has made Accountex a staple in our event marketing calendar,” says Trent McLaren, head of accounting at Practice Ignition.

“This was the first year Funding Circle has attended the show. The conference was packed throughout the two days and we hope to follow up on some great opportunities,” says Craig Jackson, regional partnerships manager at Funding Circle.

Illustrating Accountex’s strong industry backing, all the major accounting bodies and associations were in attendance for this year’s record-breaking show, including ACCA – Association of Chartered Certified Accountants, ICAEW – Institute of Chartered Accountants in England and Wales, HMRC, CIMA – Chartered Institute of Management Accountants, IFA – Institute of Financial Accountants, AIA – The Association of International Accountants, ICB – The Institute of Certified Bookkeepers, IAB – International Association of Bookkeepers, ICPA – Institute of Certified Practice Accountants, and many more.

“Without doubt this was the best Accountex yet! Our ACCA theatre focused on two key areas this year – tech and talent – and whilst we’d almost doubled our seating capacity, we were delighted that yet again it was standing room only,” says Jason Hinkle, head of member engagement for Europe & Americas at ACCA.

He continues: “We had hundreds of fantastic conversations with ACCA members, students, businesses and partners across both days. We’re already looking forward to Accountex North later this year and thinking about how we have even more impact at Accountex next year. It’s now firmly one of the main events in our calendar and the whole team are excited to work on it!”

Highlights from 2019

Pioneering new accounting trends, thought-provoking seminars and transformative innovations were all on the cards at this year’s Accountex. One fifth of visitors dedicated more than one day to the show, reflecting the caliber of the content on offer, from the exhibitor offerings on the show floor to the inspirational sessions packing out the theatres.

The show’s exceptional lineup of expert speakers continues to be a huge draw year after year – and 2019 was no different. Crowds spilled out into the aisles as attendees streamed to major Keynote sessions from industry leaders including Theresa Middleton (HMRC), Jennifer Warawa (Sage), Caroline Miskin (ICAEW), Nick Williams (Intuit QuickBooks), Steve Cox (IRIS Software), Mark Purdue (Thomson Reuters), Ed Molyneux (FreeAgent), Richard Asquith (Avalara), Neil Robertson (Compleat Software), Alex Falcon Huerta (Soaring Falcon Accountancy), Andrew Van De Beek (Illumin8), and Alastair Barlow (flinder).

“Every seminar I attended gave me new insights into how the accountancy and finance profession is evolving and how I can grow professionally with these developments,” says Lola de-Lima, director of LCA Book-Keeping Services.

“If you can’t find time to be at the Accountex, you will never discover how much you are missing. No other conference will give you free access to such a variety of exhibitors, speakers and possibility of networking with people in the same industry whose sole aim is to share their best practice. Accountex is a place where you can recharge and reinvigorate yourself and your business in just two days,” says Lizzie Wojtkowska-Wright, business partner at Clarity First.

“Topping this year’s phenomenal show will be tough, but I’m confident we’re up to the challenge,” says Ms Lacey-Cooper. “We’re already discussing lots of ideas about how we can make Accountex 2020 measure up to and surpass this year’s event. The level of industry support is inspiring – there’s so much energy and excitement that we’re counting down the months until we can do it all again and take things to the next level.”

Save the date Accountex 2020 & Accountex Summit North

Accountex will return to London ExCeL on 13-14 May 2020. For further information, please visit www.accountex.co.uk/london.

Accountex Summit North is a free-to-attend, one day conference that will take place on 10 September 2019 at Manchester Central. To register your interest in attending, please visit www.accountex.co.uk/summitnorth and use priority code ASN104.

by Accountex Summit Manchester

'Diversity', the Big Four ... and the audit watchdog

Former Lib-Dem MEP Sharon Bowles is emerging as favourite to lead the UK's new sharp-toothed audit watchdog.

If appointed, Bowles will head up the Audit, Reporting and Governance Authority, which will be created following John Kingman's critical review of the FRC.

Behind the times

Bowles says the report shows KPMG, EY, PwC and Deloitte are “behind the times” and “failing to resemble society”.

“To have men overwhelmingly [leading these audits] means that the whole culture and approach is dominated by the male perspective.

"Audit is an important interaction with company boards and being male, pale (and stale) at the top shows audit firms are dragging their feet in terms of culture.”

by Rob Deighton

MTD sceptics soften their attitude

Intuit QuickBooks has revealed the results of its first Making Tax Digital (MTD) sentiment tracker since the new legislation came into force in April.

With more businesses than ever aware and taking steps to become compliant, there has been a significant increase in positive sentiment, as firms appreciate the benefits digital can bring.

• 89% of businesses are now aware of MTD, up from 82% at the end of March, just before MTD came into force
• 84% of those who have heard of MTD believe they are compliant, an increase from 76%
• 32% uplift in SMB’s attitude, as 49% of SMBs now believe MTD will have a positive impact on their business, up from 37%
• Less than 1 in 10 (9%) SMBs foresee a negative business impact

QuickBooks  demonstrated the full extent and functionality of the MTD product suite, including Bridging Software at Accountex 2019.

The first public demo of SmartCheck also happened during the two day show. SmartCheck, helps accounting professionals and small businesses save time by identifying common mistakes when submitting VAT returns.

SmartCheck, currently in beta is one of many new features automatically generating intelligent solutions to common issues faced by customers. Already available for accounting professionals is SmartLook, a virtual customer service solution using video technology to help with tech support, and available soon is Smart Notifications, a system that notifies accounting professionals when their clients need to file for VAT.

Nick Williams, UK sales director at Intuit QuickBooks, says: “The transition to MTD was never going to be without its stumbling blocks for accounting professionals and small businesses, but it is pleasing to see increasing numbers realising the time, efficiency and cost-saving benefits that digitisation can bring.

“QuickBooks is determined to continue innovating and iterating our product, releasing new features that help accountants better serve their clients as they navigate industry and legislative changes like MTD and Open Banking this year. By embracing and using the latest technology, AI and machine learning for their practice, accountants and bookkeepers become the true puppeteers of prosperity for their clients.”

Also demonstrated on the stand will be QuickBooks Online Advanced Payroll, a new solution that solves for accountants and payroll bureaus that manage multiple businesses with complex payroll needs. Available now in QuickBooks Labs, QBO Advanced Payroll provides a route to payroll automation, a streamlined pension experience and a self-service portal for employees, including a mobile app. QBO Advanced Payroll is a different product, but complements the existing QuickBooks Online Standard Payroll, a simpler payroll solution.

For more information on the QuickBooks product suite visit HERE

by Rob Deighton

Accountancy's shifting cultural landscape... 

Sage has released its annual Practice of Now research report, revealing a shifting cultural landscape in the accounting sector driven by evolving client demands and the marketplace.

Of the 3,000 accountants surveyed worldwide, 90% believe there has been a cultural shift in accountancy as it enters the next decade. This shift is driving significant changes in hiring practices, business services and attitudes toward emerging technologies across the globe.

“Accountants around the world are embracing change within the profession, bringing in new skill sets and expanding services to better meet client needs,” said Jennifer Warawa, EVP of Partners, Accountants and Alliances, at Sage.

“The future is promising, but there are still challenges ahead and more work to be done in order to build a successful practice for both today, and the decade to come. Accountants need to carefully evaluate changes in the workplace, paying close attention to skills, training, technology adoption, changing client expectations and diversity within firms. Innovation in these key areas will power the next generation of accountancy firms.”

The Practice of Now

The Practice of Now reveals that accountants across the world are still facing challenges as a result of ongoing cultural changes within the industry. Key findings in the UK include:

 An Industry Ready for Change

 Amidst this cultural shift, there’s no doubt that meeting client expectations begins with employees. In fact, 88% of UK accountants said they are considering recruiting from a non-traditional background. Furthermore, 39% of respondents say that new accountants joining the profession should have industry experience outside accounting. The accountancy profession will need to bring in new skill sets and update business processes to meet customer expectations, or risk losing out to competing firms.

As skill sets such as technological literacy, relationship building and business advisory become increasingly important, 55% of respondents agree that today’s accounting training programs will not be enough to run a successful practice by 2030. Training programs will need updating so that firms can keep pace with innovation and evolving client demands.

A Diverse Workforce for Today—and Tomorrow

With a gulf in the talent required to build a modern, digital firm, what’s needed is a commitment to building a diverse workforce. But this year’s data identifies an underlying issue not yet addressed by many practices. Just 28% of firms say they’re actively seeking to diversify their workforce. Only 31% have a written policy on diversity and inclusion. Even fewer (23%) have offered training or have altered any policies or procedures to promote diversity and inclusion (18%).

Building a Practice Ready for the Next Decade

 Accountants can see challenges ahead, and they’re preparing for it. 51% of respondents have formally examined their business practices in the last year, with an additional 26% stating they have formally examined their business practices in the last five years. All signs point to a profession building for the future. Still, accounting and bookkeeping remain the dominant service offering in practices worldwide (78%), however; business advisory services (18%) and outsourced CFO (4%) remain a significant growth opportunity.

As accountants re-evaluate business models, 86% state that the profession needs to pick up the pace of technology adoption to remain competitive internationally. Over half of respondents (56%) cite increases in productivity as the main benefit of technology adoption, with an additional 27% citing time savings as its main value. Meanwhile, more than half of UK respondents (59%) look forward to adopting relevant artificial intelligence (AI) applications as they become available.

The Practice of Now 2019 includes the findings of independent research commissioned by Sage and conducted by Viga, surveying 3,000 accountants from across the globe (US, UK, Canada, Spain, France and Australia) in January 2019.

The Practice of Now is available for download here.

by Rob Deighton