Technology and the shifting European VAT landscape
HMRC's vision to digitalise the UK tax system is well under way. Making Tax Digital (MTD) was announced by the government in 2015 as an initiative to improve the UK tax system, and reduce its complexity.
Following a delay it is now scheduled to be introduced in April 2019 for mandatory VAT reporting by all VAT registered businesses with turnover above the UK VAT threshold of £85,000. Then, but no earlier than April 2020, it will be phased in to apply to other taxes, notably corporation tax and income tax.
It is not only the UK where digitalisation is gathering pace. Many countries have now introduced - notable examples being the Czech Republic, Poland, Portugal and Spain - or will be introducing - Hungary and Italy are imminent - voluntary and mandatory transaction reporting submissions.
One of the most popular formats
The timing varies from inclusion with monthly/quarterly VAT returns through to real-time reporting to the tax authorities at the time of an invoice being raised. One of the more popular formats is Standard Audit File for Tax (‘SAF-T’) which was developed for global use by the OECD.
This is a scheme for the exchange of information between tax authorities and businesses that can be consistently applied in all countries. However, as you might expect, countries have introduced a number of variations to fit their own circumstances.
This digitalisation is primarily focused on VAT and the major motivation behind it is the desire to reduce the VAT gap, the difference between expected and actual VAT revenues. VAT fraud and evasion, which are major components of the gap, cost government budgets billions of euros per annum across the EU.
Tackling VAT non-compliance is therefore one of both the Commission's and the Member States’ top priorities. Hence the European Commission have proposed a far-reaching reform of the EU VAT system, while Member States have been working to tighten up their VAT collections and recapture the losses in revenue.
What are the practical implications?
That is the background. What might the practical implications be?
In the long term, digitalisation should make life simpler by providing the dual advantages of eliminating both paper transactions and data errors within your accounts system.
On the other hand no new system is ever introduced flawlessly and teething problems can be expected. A good example of this is that the data required by national tax offices will need to be in a specified format. For example, on the HMRC website if there is a space left in the data formatting in certain fields you are unable to input. Additionally, tax offices in different countries sharing and transferring data means more errors (even if unintentional) will be identified, potentially leading to disruptive audits and fines. In extreme cases individuals could also be found personally liable.
All-important compliance checks
But countering this is the positive news that the VAT industry and technology companies are coming up with technological solutions which will ultimately provide ease of data handling, simplicity of use and all-important compliance checks.
As such we are delighted to have developed VIVAT - a cloud based automated VAT tool - which provides a low cost option with a flexible pricing policy. There is no real competition for the product unless a company is prepared to purchase and download expensive software or pay for an expensive service contract for a professional to undertake the work.
We believe that, while in the short-term technology can create and provide issues, companies should not hesitate to embrace it to deal with their VAT obligations as in the long-term there will be many advantages.
Is it time to tap into Generation Z?
Accountancy is an industry that has faced a lot of changes over the past few years, both in terms of how roles have changed and also what customers now expect. In order to continue competing in this market, it’s important to keep ahead of any changes in customer behaviour.
One way accountants have had to do this so far is by adapting to a growing number of younger entrepreneurs who have hugely different expectations compared with previous generations.
Millennials and Generation Z
Millennials and Generation Z are changing the way businesses market their services and communicate with clients and accountancy is no different. While many can’t agree on the exact age ranges, millennials are typically thought of as those born between 1981-1996, aged between 22 and 37. Generation Z were born between the mid-90s and the mid-2000s.
We’ve all heard a lot about millennials changing the workforce and the business world. On the other hand, relatively little has been said about Generation Z in the same way so far. Part of the reason for this is that a lot of them are still children, but they won’t be children for long. Soon enough they’ll become a new generation of entrepreneurs with modern business needs and expectations.
As digital natives, Generation Z will build on the expectations that millennials already have. Having a solid digital presence, embracing mobile technology and new communication methods will become essential to target these clients.
Communication methods
People nowadays like the option to pick the communication method that best suits their needs. Many will still rely on email and phone calls but others will prefer live chats, instant messaging and Skype calls. To offer more than one method of communication puts your clients first and also helps you to appeal to younger clients.
A study last year from technology company LivePerson, showed that 74.4 per cent of millennials and Generation Z prefer digital interaction over traditional communication methods. 69.4% would choose to use a messaging app over phoning someone.
Social media
One of these methods of communication considered essential for businesses nowadays is social media.
It’ll come as no shock that younger generations are using social media more than those before them. People like using it because they can quickly gather information, look up companies, keep up to date with offers and comment on businesses they’ve had experiences with (both good and bad).
This infographic from marketing platform Ambassador shows how important social media is to any business. 71 per cent of people who have had a positive interaction with a brand on social media were likely to recommend them to a friend. 70 per cent of those helped by a brand through social media will return as a customer in the future.
This means that accountancy firms have something to gain from having a presence on social media. It gives you a direct line of communication with the very entrepreneurs that you’re trying to turn into clients.
Mobile expectations
Mobile use is on its way to taking over desktop computer and laptop use. A piece of research from Think with Google found that in Generation Z, 78% use smartphones, 68% use laptops and 52% use tablets. This shows that the younger generation values the ability to take their data on the move.
This doesn’t just apply to millennials and Generation Z. Look at how much we all rely on our smartphones now. We use them for communication, to ease boredom, to fill in gaps in knowledge and catch up on the news.
For those in business, smartphones are essential for communication, customer service and marketing. So why should this be any different for tasks like bookkeeping?
As service providers, accountants can tap into mobile expectations. This means at the very least making sure your website is mobile friendly and functions well across smartphones and tablets. If appropriate, a mobile app can further develop your business and keep it ahead of the competition. However, if you’re looking for a quicker and simpler way of appealing to younger generations, heading into the cloud is the answer.
Cloud accounting
Cloud accounting can help your accountancy firm meet the needs of a mobile-loving generation of entrepreneurs. Being busy people on the move, it’s not always possible to sit at the same computer every day to update financial records and manage accounts.
This is why using the cloud is so popular. Having everything readily available in your pocket on your smartphone with the ability to sync information across devices, is so much more convenient.
While people still use spreadsheets to do bookkeeping (which they can do on the move thanks to Google Sheets), bookkeeping software takes this one step further and makes the entire process a lot easier. Software can link with bank accounts, send invoice reminders, help users correct errors and cut down on tedious data entry.
Moving accounting to the cloud addresses two needs: simple bookkeeping and mobile capabilities.
Machine learning and automation
Everyone’s busy, too busy for tedious tasks. In this fast moving world, people want something that’s going to make their lives easier and give them the breathing space to focus on what they’re really passionate about, their business.
This is where machine learning and automation come in. They can help to make our everyday lives easier by cutting down on tedious tasks that software can take care of instead.
With bookkeeping software, a lot of processes can be automated. For example, linking bank accounts can automatically pull over transactions into the software. This cuts down on time and errors caused by manually inputting information.
Embracing automation
We realised early on that clients have completely different expectations of us as accountants and bookkeeping software developers. People want simple software, with remote capabilities and the chance to communicate how they want. We believe bookkeeping should be as simple as possible so it’s not a daunting task for our users, especially for those without experience. This is why machine learning and automation have been important to us from the start.
We’ve used automation to cut down on tedious data entry by linking with bank accounts to automatically load transactions. We’ve made working with multiple currencies simpler by creating automatic sub-accounts for each currency rather than users having to manually set up a separate bank feed. We also send out automatic reminders for unpaid invoices to help our users manage cash flow, and allow users to automatically send out invoices to groups of clients with ease.
Messaging centre
Client collaboration is essential to efficient accounting. To help keep communication open between accountants and clients we’re developing a messaging system within Pandle so that all correspondence is kept in one place. With our Pandle Notes feature, users and accountants can attach notes to transactions and tag each other to keep important information right where it’s needed, within the software itself.
Partnering options
If you’re currently looking for bookkeeping software that’s simple to use and uses innovative new tech solutions, then take a look at our Pandle partnering options. Our Pandle Partner option means accountancy firms can use our software to manage all their clients’ accounts with ease.
Our second option is Brandle. With Brandle you can use our software but you’ll get the added benefit of having all Pandle mentions replaced with your own company branding. It’ll give you and your clients the benefits of having your very own software but without the hassle and expense of having to develop it yourself. This can help you become competitive in the industry as having your own software can be used as a selling point when you market to clients.
Pandle are exhibiting at Accountex, stand 873.
'Free up time with automated working practices'
A common theme we see at FibreCRM (when speaking to partners of practices of all sizes) is that they want to "spend less time chasing clients". I am sure this resonates with pretty much every reader of this blog!
Whether it`s chasing for information to complete a tax return or reminders to pay taxes - this is un-billed time and eats into profit margins. The larger the practice the more time that is lost, and if one day (per partner) each month is lost chasing clients - the cost (both £ and time) can be staggering. For example, if a practice has 10 partners, that’s 10 un-billable days per month (120 un-billed days per year, or 960 hours).
Based on an hourly rate of £100 (conservative, I know) a practice could be absorbing £96,000 of unbilled work, every year. In that context, this is an issue well worth seeking a solution for. Time IS money, after all.
Look no further - because more and more accountancy practices are discovering that the solution lies in a (practice management/integrated) CRM (client relationship management) system.
What's integration?
It sounds obvious, but in fact there are varying views of what integration is or looks like. I like the definition, “linking together of different systems and processes to act as a coordinated whole.”
What does integration achieve? An integrated system promotes efficiency and reduces costs, and is now a key focus for businesses across the world as their catalyst for growth. Integration allows organisations to leverage their existing processes, technology, people, and data - to stay ahead of the competition. Their individual, standalone processes become stronger and more efficient as a result.
As Daniel H. Wilson quoted, “Things grow stronger when you integrate”. So, where does CRM fit into this picture?
While CRM is traditionally seen as a system for managing relationships (which it does extremely well, along with other key benefits), it is increasingly becoming seen by businesses as the “hub” for consolidating all their existing standalone systems. CRM delivers a solution so that staff can manage (efficiently) all those activities from within one system. This is being evidenced more than ever right now, by businesses who have identified CRM as the best solution for managing their GDPR compliance process.
CRM is the key to integration in accountancy practices
CRM is the key to integration in accountancy practices, as it enhances practice management. It finds those job stages that stall due to manual (internal or external) information flows - and sorts them out. CRM sends automated email alerts directly to the client (without interrupting staff and partners) and immediately removes those expensive lost hours chasing clients. In short, it pays for itself (and then some).
Job turnround subsequently speeds up, and invoices get sent (and paid!) sooner - resulting in improved cashflow and a healthier bottom line for your practice.
The key is identifying what standalone processes your practice currently operates, and discovering that CRM can integrate and bring them all together.
Another Daniel H. Wilson quote sums this blog up perfectly: “The true knowledge is not in the things, but in finding the connections between the things.”
FibreCRM will be on Stand 955 at Accountex 2018.
Will 2018 be a new dawn for data encryption?
The impending GDPR deadline, and most particularly it’s regime of fines for data breaches, has placed security at the top of the agenda at many organisations. There is now a compelling reason for the use of data encryption after it has laid dormant for decades.
It is a shame that encryption is still so misunderstood as it is just a tool like any other. Below are the three key approaches to encryption in use today and, as you will see, your own IT team is key...
Machine level encryption - preventing external theft
If you are a small business you may be simply wanting to know your data is safe from physical theft. Low-level hard drive encryption secures a machines data so that even if it is stolen, data cannot be accessed by prying eyes. Microsoft BitLocker, for example, provides that blanket protection without your users or applications needing to know or care.
This can also be applied to mobile working. However, the risk of inappropriate access remains: Where someone inside the business – a staff member or consultant perhaps –can access all users’ data that is still "in the clear" on a hard drive, unless further or more targeted steps are taken:
Directory or Database level encryption – preventing internal theft
A larger business may be looking at securing their systems to ensure the safety of sensitive PII data from theft by either normal users or departmental IT staff who may still need to support those systems. Typically this data is accessed only via the business applications which control access at a user level. What is important is that the raw data of those systems cannot be read if accessed directly or stolen?
Here you can use Microsoft EFS (encrypted file system) or Microsoft SQL server transparent encryption for databases to prevent readability of these raw assets from users on your network.
Again, applications should not need to know that this encryption is in place. It is something that the IT team can implement and these are configurations that software vendors should willingly support. With the above two approaches, we have already covered encryption needs for 95 per cent of businesses.
In some cases, it is necessary to have a mix of encrypted data and data in clear in the same business application – rather like a password protected attachment in an email. This is where applications themselves offer specific support and functionality for data security.
Document, Application or fine-grained encryption – preventing in-application theft
Working at this level requires the application itself to be aware of encryption and is a more complex and expensive topic. For most situations, it is not needed, but it can be important if it is the only way to use a system for both common and sensitive data at the same time. If this is your requirement then it is critical you discuss it in detail with your software vendor. If you can avoid it - do so.
Enabling encryption for most business data is actually really quick and painless.
Don’t let yourself be bamboozled by the technical terms, just focus on your key threats and obligations – and get that encryption done!
Invu Services will be on stand 146 at Accountex 2018
How do successful firms go with the cash flow?
Successful business owners seemingly have one thing in common, they proactively manage their cash flow and address the key issues that can improve it.
Growth Street CEO Ciaran O’Donnell is a virtual finance director who works with many early stage businesses across a number of sectors. Most of the successful businesses he has worked with have similarities when it comes to their attitude and management of cash flow.
Managing cash flow
So, how do those successful businesses manage their cash flow?
They can have a clear visibility of their future cash flow and address the issues which maintain visibility and improve their cash flow
Ciaran suggests asking and addressing the following questions:
- How much cash or investment is required to get my business cash flow positive?
- When do I run out of money?
- Does my business need funding during certain months of the year?
- How can I change my working capital cycle to have more cash in my business?
- How can I grow my business? Will I be able to do so with my own cash or will I need to borrow or raise investment?
They can make better decisions
Successful businesses may have a better understanding of their current cash position and can make better financial decisions, for example, both short term and long term planning.
Ciaran noticed that successful businesses keep a close eye on their cash position, plus, the day-to-day operations (closely reviewing management accounts and/or cash flow forecasts). By maintaining that visibility they are well-placed to make decisions that don’t hurt the cash position or future cash flow of the business. Ciaran has seen some businesses rush into making poor decisions that hit their cash and financial positions.
They can push for better payment terms with customers and suppliers
Successful businesses may also know when and how to lean on major suppliers for extended credit terms. One client who worked with Ciaran leant on six of their major suppliers who agreed to stretch payment terms from 30 to 90 days for almost 12 months as the business was going through two separate investment rounds.
Ciaran adds: “This helped our immediate cash flow significantly and the net-payables position for almost a year as key suppliers were keen to retain our business. The suppliers we leant on had sufficient financial strength themselves to offer the extended credit terms. Don’t be afraid to ask!”
Additionally, negotiating shorter payment terms with customers or, taking immediate payment (whether that’s cash, credit card or debit card) helps businesses achieve a healthier cash flow. Ciaran says: “Another client completely changed their customer payment model and moved everything to online payments and direct debits. The business no longer had to chase customers for payments and also shortened their collections process by 45 days!”.
They tie-less money up in stock?
Stock can quickly tie up cash and impact your cash flow. Ciaran mentioned one rapid growth business that was unaware it had £100,000 in closing stock which was approximately six to eight months of sales at their current sales rate: “We conducted a relatively simple piece of analysis and calculated that we could implement a better buying and production process to operate with more efficient stock levels. Today, as the business continues to grow, order lead times are shorter, stock levels are lower and savings on bulk purchases will be considered as the business grows, but until then the business has less cash tied up in stock.”
They don’t always offer early payment discounts to customers
“Offering a discount to a customer for a quicker payment can benefit your short-term cash flow”, Ciaran tells us, “however, bear in my mind that discounts can significantly reduce your profit margins. It is worth considering what other options you have to raise short-term finance as there may be more cost-effective ways available to you.”
Growth Street will be at Accountex 2018 on Stand 1120.
Why and when do accountants partner with alternative lenders?
My conversations with accountants are rarely the same. As a senior account manager for online business lender Spotcap I travel across the UK meeting practitioners of all sizes and focus areas. One day it can be a small practice specialising in corporate finance in Leeds, the next a large firm in London offering auditing, tax related advice and assurance services.
We have conversations about their business, what they are trying to achieve and what they see as their greatest opportunities and barriers.
Is there ever a common theme? Regardless of size, location or focus they all talk to me about the importance of client-service. They see it as the foundation of their success.
How does alternative finance fit into the picture?
How does alternative finance fit into the picture? Here are some comments I've had from accountants in recent meetings: "Alternative finance offers our clients an opportunity to access finance more quickly." "Alternative finance enables us to better respond to business opportunities." "Alternative finance offers clients a quick solution but there is a need to educate them to consider the idea."
Many of them are already working with a few alternative finance providers. Interestingly, these practitioners often mention how surprised they are by the minimal effort involved in sourcing finance themselves. They are keen to share that, in the long run, it enables them to free up time to improve their client service.
I also meet a lot of accountants that still only source finance working with a broker or bank. Common push backs I hear of why they aren’t working with alternative lenders include "how do I know its secure?" and "I don't have the time or resource."
Compliance and security
Explaining that we have 500 partners globally—among them, BDO and KPMG, accountancy firms with the highest standards when it comes to compliance and security, often helps. When it comes to the second point, “I don’t have the time", I usually find their concerns are alleviated, once we walk through the resource investment required.
It only takes a few minutes to sign up and join our partner community. Around 15 minutes to upload and submit a case. There is also a dedicated account manager who is ready to provide support, should there be any snags along the way.
Another common push-back that I am hearing is “I have everything I need. Why would I work with an alternative lender?” In response to that I often say: "That is an interesting perspective to have, given that the general consensus is that accountants need to reinvent themselves and provide higher-quality differentiated services."
Perhaps working with an alternative lender is something to consider after all?
Spotcap are on Accountex stand 1040.
Juliette Peyraud, will be speaking at Accountex on Alternative Finance: current opportunities and how it can help your clients succeed in the Financial Directors Forum 5pm-5.45pm on 23 May.
19 reasons why accountants need to network
Walking into a room full of strangers is intimidating for most people. Especially people in the accounting world, where technical expertise is a given but social skills and networking capability are often rarer.
For some people, Accountex 2018 will be hard work. The many conversations, interactions and situations can be overwhelming, even for the more confident networkers.
While the opportunities are huge, the motivation for accounting types to be there is not always enough to ease the nerves and enhance the performance. One way to feel more positive about events like Accountex is to focus on the positive.
Huge benefits to networking
There are huge benefits to networking for accountants and others in and around the profession. If your ‘why’ is strong enough, you’ll be motivated to get out there and network. Here are 19 benefits to help you to get out there and get talking to people...
- Uncover new business opportunities.
- Make more profits and more money.
- Meet or exceed sales targets.
- Raise your personal profile.
- Raise the visibility of your company, product or launch.
- Source great suppliers, vendors or providers, both for your firm and yourself personally.
- Recruit your next employee.
- Locate new strategic alliances.
- Improve your self confidence – if you get through, you’ll be stronger.
- Make your mark in a new role, niche, product line or territory.
- Enjoy the thrill of winning new work.
- Learn new ideas, industry tips and insider trends and information.
- Scout the competition and see who is doing what.
- Develop leadership skills by taking your team there.
- Validate your ideas, products or propositions.
- Maintain contacts with existing clients or customers.
- Explore new commercial partnerships or joint ventures.
- Develop ‘referral networks’ with other professionals.
- Meet new friends or gain a support system - business can be lonely.
There are many great reasons to go networking. You've got to figure out which ones work best for you and your personal situation.
To ease the worries of a huge networking extravaganza like Accountex, come to my training session on Wednesday, 23 May at 11am in the Business and Finance theatre. The title is “7 Different but Equally Effective Networking Strategies for Accountants to Raise Their Profile and Win More Work.”
Four ways to protect your documents from cyber threats
Cybersecurity risks are at an all-time high. In an era of phishing, malware, password attacks, and other schemes, sensitive client data is more at risk than ever before. Professionals who routinely deal with personally identifiable information need to be diligent about protecting that data, and tax preparers are certainly no exception. The IRS recently issued a warning to tax preparers to increase their security measures in light of a widespread new scam designed to steal taxpayers’ refunds using compromised data from tax preparers’ offices.
From simple human errors to unsecured software systems to inadequate retention policies, there are many ways you could be putting tax documents at risk without even realising it. The following are four common areas of risk and how to avoid them.
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Electronic document delivery and exchange
The ability to electronically exchange documents has revolutionized the way we do business, but it also opens the door to potential fraud and security breaches if the proper precautions aren’t taken. Sending and receiving tax documents using unsecured, unencrypted email makes them an easy target for scammers who intercept emails, spoof email addresses, and steal unprotected data. These email programs can also place limits on document size, which could lead to important information being bounced back, lost, or misplaced.
As a more secure alternative to email, firms should consider using portals to deliver and exchange tax documents. Portals not only provide crucial encryption during transfer and storage, they also limit access to only specific approved individuals. Additionally, you’ll benefit from having an organized structure for document collaboration, because portals support Windows-friendly filing structures.
You should also investigate document management solutions that offer encrypted email systems. These solutions allow you to send messages and documents using links that encrypt downloaded or uploaded data, protecting it from would-be hackers.
- Human error
We’re all human. Tax season brings with it long hours and mountains of work. Even the most competent, diligent CPA is bound to make a mistake. Unfortunately, when it comes to something as sensitive as tax information, a seemingly harmless error can have huge consequences.
If tax documents are accidentally deleted or moved from their proper places, it can severely impact your productivity and put timely filing at risk. The same is true of misnaming documents – the time you lose searching for them or resending them can jeopardize the filing process.
The right technology solutions can go a long way toward alleviating these errors. Your software should recognize your documents and automatically file them to prevent accidental deletion. It should also offer full document searchability, so you can search your documents’ entire contents and not just their titles. Finally, it should give you the ability to easily retrieve deleted documents. No one wants the embarrassment of having to ask your client to resend data.
- Competing versions of documents
It’s common for documents to undergo multiple revisions before they’re finalized. Problems arise, however, when people mistakenly work off different versions of the same document. This can happen when there are multiple copies of the same file or when multiple people are able to access a document with the same permissions at the same time. Not only does this create a risk for errors, it can also impede your productivity and create unnecessary confusion.
These needless errors can be prevented by employing a software solution that gives you control over the different versions of your documents, so you can manage them in a way that ensures everyone is always working on the most current and accurate version, while retaining the ability to access previous versions in case improper changes are made.
While it’s important to permit multiple people to access your documents, there should be a formal check-in and check-out function that only allows one person to work on a document at any given time. All others should have read-only access, so people aren’t simultaneously entering competing edits.
- Document storage and retention
While a lot of attention is rightfully paid to avoiding errors and ensuring security while documents are being prepared, the concerns don’t end once the documents are finalised and tax season is over.
Maintaining tax documents is critical. Documents must be archived in such a way that they can’t be altered and can be easily searched. Delays in locating important data can pose real risks. There needs to be a firm-wide standard for naming conventions and file storage locations enforced by technology, otherwise data will be lost. Leaving naming up to individual preferences allows room for error, resulting in files that are difficult or impossible to locate.
Do keep in mind that software changes and licenses expire all the time. Your documents need to exist in a format that you can access regardless of the software you currently have.
Your firm should have a formal document retention policy that outlines how long client files are stored and when they should be deleted. Technology reinforces that policy, either automatically deleting files at the appropriate times or alerting staff members to do so. You want to be able to provide a client with past filings for an appropriate amount of time if requested. However, you also want to protect your firm from burdening your IT systems with terabytes of unnecessary data and incurring unnecessary costs for storage.
Remember too that in today’s litigious world, any firm can find itself having to produce documents in court. If you can point to a clear and appropriate retention policy and show that you have a system in place for enforcing it, your professional judgment or whether you properly handled and archived your documents will rarely be questioned.
The way forward
There’s no escaping the fact that we live in a time when cybersecurity breaches are a real threat for tax preparers. The good news, though, is that many of the most common potential risks relating to tax documents are avoidable. By implementing software solutions that give you secure workflows and document storage, you can remove many of the everyday errors and security weaknesses that put sensitive client tax information at risk. Armed with the right technology, tax preparers can rest easy, knowing that their tax documents are secure.
Doc-It will be exhibiting at Accountex on 23-24 May, stand 1032
Why a majority of accountants use web portals
Web portal use among accounting, tax and bookkeeping professionals has grown significantly, according to the 3rd Annual Accounting Firm Operations and Technology Survey.
It's risen from 52 per cent in 2014 to over 75 per cent today. With the exchange of digital documents and security concerns on the rise, those who have not yet adopted this technology will get onboard in the next 12 to 24 months, driving the 75 per cent up closer to a 90 per cent adoption rate in the profession.
Clients expect information be available when they need it, regardless of where they are and with no regard for your firm’s digital capabilities. To meet those demands and most importantly, to deliver or exchange documents in a secure manner, accountants and tax professionals have caught on to the value of web portals. For those who have not yet adopted web portal technology, regular email will not suffice; it does not provide adequate security when transferring documents.
Two major functions of web portals
Web portals are used to exchange files and to post files for access and recovery at a future date. Exchanging files may include sending QuickBooks backup files back and forth, or engagement letters needing to be signed. Using a web portal for these matters allows the firm to set retention parameters on the documents being exchanged.
For the exchange of QuickBooks backup files, there may be a 30-day retention period set. When posting financial statements or tax returns in the client’s web portal, you might set retention timeline of three to four years, ensuring when files are needed into the future, they can be easily accessed by the client or firm.
Once a web portal is set up, one of the few places where firm’s run into trouble is when they do not allow the client to manage their own password. If clients are having trouble with login, giving them the ability to change their password helps to ensure they are not calling the accountant for an administrative task such as password help.
Required features of web portals
There are several required features when shopping for Web portal technology. Investigate Web portal technology to ensure it has the following features:
- Usage of the web portal needs to be simple. Clients need to easily be able to upload and download documents or they will not use it.
- There needs to be access to multiple entities from one login. (i.e. individual, corporation, their trust funds.)
- The accountant or tax professional must have the ability to assign different levels of access to owners and employees of the client. For example, an owner may have access to their own personal records, the company and trust fund records where as the employees may only have access to the company’s records.
- Auto-notification sent to the accounting firm or the client when a document is posted by the other party.
Doc-It will be exhibiting at Accountex on 23-24 May, stand 1032
A life more digital with HMRC
I was trawling the internet the other day and came across this great new blog from the HMRC digital relationship lead. It's aimed at software developers, but it's interesting none the less... so I thought I'd share.
I’m Louise Tarpy, HMRC’s Digital Relationship Lead in the new Digital Relationship Management team. Welcome to my first ever blog in which I’ll be introducing our new Digital Relationship Management team and explaining where it fits in delivering HMRC’s digital future. Hopefully, this will be of particular interest if you are a software developer.
Politely referred to as an HMRC lifer, I joined what was the Inland Revenue in 1987. Rick Astley was Number 1, people thought nothing of smoking next to huge piles of cheques, we shared one computer between four and the internet was yet to be invented. Impossible then, for 17 year old me, to envisage a future self whose entire world would revolve around something called digital. And yet, here I am!
HMRC digital... the API circle of life
HMRC’s transformational agenda has a proactive approach to third party software development. It’s about working in partnership with the tax and business software industry to encourage the development of ‘best in class’ products, software that’s personalised to user needs and enables our mutual customers to help close the UK tax gap by being tax compliant.
Our Third Party Software and API Strategy maps out our vision to provide software developers and other third parties, with high-quality, rich APIs that facilitate the production of innovative, personalised, and more sophisticated software products to the market.
We’ve created three teams to enable that strategy and support developers and third parties on their API journey. Each team has a well-defined, yet complementary, purpose.
For the Digital Relationship Management Team think customer relations for product development. Our role is to foster and grow long-term, collaborative relationships with the industry. We’ll get to know you, your products, your structure, your delivery schedules and your strategies. We’ll also listen to your suggestions and feedback on our APIs and wider digital transformation plans, and feed those back to internal HMRC stakeholders. In short we’re the voice of developers inside HMRC and the voice of HMRC to developers.
The two other teams which make up the circle are:
Application Programme Interface (API) Platform Team: In order to facilitate our vision and provide third parties with secure and stable access to HMRC’s APIs we’ve built our own platform, the API Developer Hub. Here you can test your application in a sandbox (test) environment before moving your application into our live production environment. My colleague, Richard Baines, and his team are responsible for the provision and welfare of the platform, while Lisa Barnett and her team provide the Developer Hub services that reside on it. To find out more see Richard’s recent blog.
Software Developer Support Team (SDST): You may already be familiar with SDST, headed up by Dennis Dawkins. The team have a long-established history in providing crucial technical support to developers throughout product development and delivery. They provide service support models tailored to specific consumer needs, and their customers include commercial software vendors, other government departments and financial institutions.
The creation of a Digital Relationship Management team doesn’t change this. SDST remain first-tier operational and technical support for product development. To find out more see contact SDST pages on GOV.UK.
Regardless of which team you initially make contact with, the service you get is the same. All third party API consumers complete our circle.
And it’s not just developers these days
Say software development and it’s natural to think software developer but our API strategy is broadening the scope of that assumption. We’re seeing increasing approaches from banks, accountancy firms and fintechs interested in consuming our APIs for a variety of innovative reasons. Interest has grown at such a rate we’ve recently appointed a Digital Relationship Lead dedicated to the financial sector, Melanie Evans.
Your feedback is valuable
As a new team it’s important we get your feedback, so all of our email signatures link to a short questionnaire and quarterly we issue a longer version. These don’t take long to answer but the results are invaluable to us so, if you’re in contact with us, we’d really appreciate you taking a few moments to complete our surveys . Your feedback will help us to adapt and grow the service you need.
Digital Relationship Management on the road
We’re attending a number of events over the next few weeks with our Making Tax Digital colleagues. If you’re visiting Accountex on 23-24 May, please pop over and say ‘hello’. We don’t bite (honestly!).