Accountants: you don’t have the right skills
If you attend accounting conferences or peruse accounting websites, certain topics will come up again and again. Is AI going to make me redundant? Regulators are at it again; what’s the latest change?
How can we make better decisions under extreme uncertainty? What about really big problems like climate change? How can accountants be part of the solution?
These are the types of issues future industry leaders must be prepared to deal with.
But how do we currently train accountants?
Rigorous exams
The path to a career in professional accounting typically requires passing a series of rigorous exams,and acquiring relevant work experience. This is a good thing! It ensures that a professional accountant has a baseline mastery of financial reporting, managerial accounting, audit, tax, etc.
But there is a gap between this type of training and the skills required to lead a team, an organisation, and a profession through the uncertainty, ambiguity, and complexity that seems to be increasing.
Where are accountants going to get these skills? Continuing professional development requirements? In-house corporate training? Online courses?
Gap persists
These can be good resources, but the gap persists.
Universities are in a unique position to meet this need. How? Ideally, a university should:
- Immerse students in relevant knowledge, relationships with peers and faculty, and the culture of the university
- Aggregate experience by bringing the best experts in the university and the world into the classroom, in person or virtually
- Bring together an international group of students for a truly global experience
- Explore all sides of a complicated issue from a neutral perspective
Global accounting leadership
The Cambridge Master of Accounting integrates these strengths in a global accounting leadership programme for professionals who want to bridge the gap.
Our curriculum encompasses three broad topics:
- Change leadership: What are the shortcomings in current systems and processes related to financial reporting, audit, and governance? How can they be improved? How can the choice of “what gets measured and how” change an organisation, or even society? How will technologies like blockchain and AI change the industry?
- Decision making under uncertainty: How can you apply cutting-edge data analytics tools to answer crucial questions? How can you effectively interpret and persuasively communicate your results?
- Interpersonal dynamics: How can you develop and refine relationships and interpersonal skills necessary to lead change? How do you navigate power dynamics in an organisation?
Our programme features eight quarterly residential weeks in Cambridge over two years, with robust online engagement between visits.
Successful candidates will demonstrate a track record of impact in an organisation, an interest in preparing for leadership roles in the field of financial information, and ability to perform academically at a high level.
The Cambridge Master of Accounting (MAcc)
Accounting Insight News goes live!
An essential source of news, views and analysis for UK accountants and finance professionals launches today.
Accounting Insight News is the exciting new content platform that will be partnering Accountex Summit North and the UK’s premier exhibition for accountants — Accountex.
It will focus on the latest industry news and state of the art technology, plus it will provide refreshing analysis that takes you behind the headlines.
The website is edited by Ian Moss, an experienced journalist who was worked on several UK titles, including the Daily Mirror and the Financial Times.
He says:
Accounting Insight News will aim to deliver a clear, concise and credible overview of the industry. I’m hoping we’ll become a favourite stopping point for accountants who want to stay in the know.”
For more information, please visit www.accountinginsightnews.co.uk.
Accounting Insight News and the Accountex events are a part of Diversified Communications UK.
Over 800 delegates confirmed to attend Accountex Summit North
Tuesday 6 March marks the start of Accountex Summit North – the industry’s new one day accounting conference and exhibition for senior accountants and finance professionals based across the Midlands and North of England.
With all places now booked, over 800 delegates (working in business and practice) will be heading to Manchester Central to discover the best choice of new products, tools, software and solutions from 80 leading exhibitors (including event sponsors Inuit QuickBooks, Xero and Sage). While the Summit’s raft of expert speakers with provide major pointers on how to prepare for the key changes, challenges and opportunities ahead.
Among the attendees will be representatives from organisations as diverse as HMRC, ITV, Telefonica UK, Ginsters, Aon, Bettys & Taylors Group, Elior UK, Lookers, Co-operative Bank, DHL, FirstGroup, AstraZeneca, Morrisons, Virgin Media, the NHS, University of Liverpool, Network Rail, The Guinness Partnership, Defra, and DCLG - Ministry of Housing, Communities and Local Government. Plus senior names from leading practices: Moore Stephens, Haines Watts, Crowe Clark Whitehill, BDO, Cowgill Holloway, Dains, French Duncan, Beever and Struthers, Jackson Stephen, Bulley Davey, Lamont Pridmore, Garbutt & Elliott, Duff & Phelps, and Jolliffe Cork.
Exhibitor highlights
The following is just a taste of some of the innovations on show at Accountex Summit North:
TaxCalc is showcasing its latest Accounts Production enhancements and new software Bundle – The TaxCalc Practice Collection. With 8,000 customers, TaxCalc’s suite of Accounts Production, Tax, Practice Management and more, is multi-award winning, integrated and yet extremely affordable. Learn how twelve years of innovations like SimpleStep®, Check & Finish, and CloudConnect, make life easier (pod 30).
Xero is introducing its new time and cost management tool – Xero Projects. As well as showcasing new functionality within Xero Expenses (pod 52).
MyFirmsApp, developers of the largest global custom App platform in the world for accountants, has launched OneApp, a next generation, future proofed App platform. The OneApp platform goes above and beyond to deliver Apps in line with the growing expectations users have. Daniel Richards will present ‘Bringing the best of the Add-ons together to strengthen your client relationship’ at 11.45am in the Tech Theatre (pod 8).
Hubdoc is unveiling 50 new connections to vendors across the UK. Hubdoc automatically fetches financial documents from hundreds of banks, utilities, telecom providers, and more; extracts key data; and seamlessly syncs transactions to GLs with source documents attached. With Hubdoc, reconciliation, payment processing, and audit-proofing are just a few clicks away (pod 39).
IRIS Accountancy Solutions is launching its new solutions designed to support accountants with their GDPR compliance challenges, develop new value-added services and underpin their digital transformation. Hear from Steve Cox, Chief Evangelist, sharing his insight into the state of the accountancy sector at his session: The Accountancy Climatic Flip - Time for Digital (pod 43).
FUTRLI will be on-hand to answer delegates’ forecasting and reporting questions and demonstrate how its latest features can help advisors and business owners make better business decisions. Its industry-leading advisory certification course can transform the way accountants work and accelerate rollout of advisory services (pod 70).
Fujitsu Scanners’ ScanSnap Cloud speeds up the device free scanning process and routes data directly to cloud-based accounting software and software for organising receipts: QuickBooks Online and Expensify for receipt and expense management and integration with leading accounting and workflow tools; Concur Expense and Shoeboxed for receipt organisation and automating expense reports (pod 14).
Practice Ignition is helping companies respond to the massive challenge of GDPR. They can provide guidance and assistance on how to tackle GDPR, by updating existing engagement letters with accountants’ entire client base to ensure they comply with the new regulations. They are also showcasing a new integration with Zapier, which helps boost efficiency and integrate workflows (pod 37).
R&D Online is unveiling its intuitive digital platform that enables accountants to make R&D Tax Relief claims on behalf of their clients. The service is offered on a white-label basis, but supported by R&D tax specialists who will ensure accountants can deliver successful claims to their clients every time (pod 58).
Feebooster Accountancy Marketing Specialists is launching Multimedia Marketing packages, where telemarketing, email marketing and digital marketing are used in combination, to reach the greatest number of targeted prospects in the local area. Delegates can access a free Marketing Your Practice guide and benefit from an exclusive sign up discount on the day (pod 53).
One of JustAccounts' unique features is the ability to perform the whole process from lead to onboarding and bank account creation without ever having to leave the platform. It can create leads, consultations, illustrations and track referrals directly in to a live client. Accountants can even incorporate companies, set up business bank accounts and create contracts for their clients to agree through their dashboards (pod 5).
BrightPay Payroll has recently launched a new cloud add on. BrightPay Connect offers powerful features, including automatically backing up payroll information to the cloud, online annual leave management, client dashboard and an employee self-service portal. The online payroll flexibility enables online access anywhere, anytime for accountants, their clients and their employees (pod 33).
Docusoft provide innovative and comprehensive solutions for document, email and data management. For GDPR, its Portal secures document delivery and its OneView concept provides a comprehensive information view. See the E-Signature App in action and all new DMS App that transforms document access and control all from standard Outlook (pod 42).
The 2020 Innovation Training team will be on hand to share expert insights into GDPR, Making Tax Digital and the use of new technologies. 2020 support approximately 25% of all UK accountancy firms and their members enjoy unlimited training and support, covering such areas as CPD, FCA and Tax Updates (pod 34).
Accounting Insight News (launching on 5 March at www.accountinginsightnews.co.uk) is an exciting new content platform from the organisers of Accountex Summit North and Accountex. It will focus on the latest industry news and state of the art technology, and provide refreshing analysis that takes you behind the headlines. The website will be edited by Ian Moss, an experienced journalist who was worked on several UK titles, including the Financial Times.
Other exhibitors include Sage, Intuit – QuickBooks, ACCA, AccountancyManager, AccountingWEB, AIA, AutoEntry, CaseWare UK, CIMA, CIPP, CIS, Coface, Compleat Software, Debt Collection Services UK, Economia, Enterprise Tax Consultants, First Corporate Law Services, FreeAgent, GAAPweb, Global Infosys, ICB, IFA, Octopus Blue, Opt Pensions, Qubic Tax, Receipt Bank, RollPay, Sage, Spotcap, The Learn Centre, and Wolters Kluwer.
The full exhibitor list is available at www.accountexsummitnorth.co.uk/exhibitors.
Seminar highlights
There will be over 20 sessions in four dedicated theatres – including the Tech Theatre, How To Theatre, Practice Growth Theatre, and Business and Future Theatre – and the Keynote auditorium.
Speaker highlights include business commentator Declan Curry, David Kaye (Intuit – QuickBooks), Damon Anderson (Xero), Mark Wickersham (Cloud Pricing), Amanda C. Watts (TwentyTwo Agency), Glenn Collins (ACCA), Gordon Gilchrist (2020 Innovation Training), Chris Astle (Think Forwards), James Ashford (GoProposal), and Cameron John (Sage).
“Never stop learning and give yourself every opportunity to be open to new ideas and new ways of working. There is not one silver bullet or a one size fits all model so each Accountant needs to assess what is right to give them their competitive advantage and remain successful,” says Cameron John, Sage’s global director of accountant partners.
The Summit’s Hot Topics Round Table, featuring two group discussions covering Woman in Accountancy and surviving as a sole practitioner, will be facilitated by award winning digital accountancy practice owner Elaine Clark.
The full programme is available to view at www.accountexsummitnorth.co.uk/conference.
Accountex Summit North – the year’s most hotly-anticipated new event for the accounting and finance profession – opens at Manchester Central on 6 March. All delegate places are now booked and the event has sold out of all available exhibition space.
For further information, please visit www.accountexsummitnorth.co.uk.
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Diversified Communications UK Ltd (Diversified UK) is a fast growing trade event organiser and publisher based in Brighton, Peterborough, Nailsworth, and London. Diversified UK’s portfolio includes Accountex Summit North (new for 2018); Accountex; SITS – The Service Desk & IT Support Show; British Tourism & Travel Show; Casual Dining; lunch!; Commercial Kitchen; GO! Organic Festival (new for 2018); Natural & Organic Products Europe; Nordic Organic Food Fair & Natural Products Scandinavia in Malmö, Sweden; GEO Business; Ocean Business; MARELEC Marine Electromagnetics conference; Euro Bus Expo; Coach & Bus UK; and London Design Fair. For more information, visit: www.divcom.co.uk.
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Q&A: Damon Anderson, Xero (2018)
Next up in our speaker Q&A series is Xero’s Director of Partners Damon Anderson. A leader in fintech with over 15 years’ experience delivering digital marketing and payments technology, he'll be sharing his insights into the challenges facing the industry and why accountants must get on board the digital revolution to survive. Read more
Inside track on HMRC tax-gap strategy
Reducing the 'tax gap' is at the heart of HMRC's digital strategy . The "tax gap" is the difference between the amount of tax that should be paid and what is actually paid.
According to HMRC's Official Statistics Release of June 2018 the 'tax gap' is about £55bn, which is 5.7 per cent of the total tax take, equivalent to half of the annual defence budget. Approximately 10 per cent of this is lost as a result of tax evasion.
Although HMRC says that any taxpayer could be the subject of an inquiry, the reality is that they are either based on computer-generated risk-based selections or as a result of information received from sources.
Sophisticated computer systems
HMRC has one of the most sophisticated computer systems in the world, with its analytics team winning the award for the Best Big Data Project at the 2017 UK IT Industry Awards for its 'Connect' project.
Connect looks at data using a mathematical technique known as 'social network analysis', which ploughs through disparate, previously unrelated information to detect otherwise invisible networks of relationships.
Other digital technology used includes web-trawling software as well as social media search tools.
However, there is still a place in HMRC's investigation world for good, old-fashioned, investigatory skills – it is not unknown for undercover investigators to have lunch in a restaurant suspected of hiding small value cash transactions.
Rogue operators
Most holiday or short terms lets and parking spaces to rent are all invariably advertised on the internet.
Landlord licensing schemes are popping up all over the country as local authorities attempt to crack down on rogue operators.
HMRC have use of these council databases and would welcome licensing for all landlords to make their search for landlords who do not declare that much easier.
Tip-offs are still a vital source of information and tend to generate the biggest returns.
Tax fraud hotline
HMRC has a hotline enabling the public to report evasion and tax fraud direct to which 40,695 calls were made in 2017/18.
As an incentive to expose, HMRC offers rewards to those who provide information about suspected tax evasion and confirm that last year £343,500 was paid. In addition, every three months HMRC publishes a 'name and shame' list of taxpayers who evade more than £25,000 in tax.
With far more information available than ever before HMRC is able to target investigations on a more efficient and cost-effective basis. But the department is not being complacent - it is intent on extending its data gathering powers.
A recent consultation on HMRC’s civil information powers proposed that HMRC should be able to seek information from third parties without the agreement of the taxpayer or a tax tribunal, with no right of appeal.
The change proposed is essentially to bring HMRC’s powers in line with those of tax authorities in the rest of the G20 group of countries and although the number of taxpayers affected by these proposals will be relatively small the fact the taxpayer will not be consulted is a worrying point.
Q&A: Steve Cox, IRIS Accountancy Solutions (2018)
Next up in our speaker Q&A series is Steve Cox, a technologist and accountant who looks at how technology can simplify the modern accounting world. Currently Chief Evangelist for IRIS Group, Steve has worked closely with customers, software companies and the government and is championing the digital transformation of UK SMEs and accountants.Read more
Q&A: Amanda C. Watts, TwentyTwo Agency (2018)
Amanda C. Watts is founder of TwentyTwo Agency, an Amazon bestselling author, mentor for Virgin Start-Up and creator of The Relationship First Method™. She'll be sharing her proven marketing strategies for maximising sales and referrals at Accountex Summit North.Read more
Top takeaways from the World Congress of Accountants
The World Congress of Accountants (WCOA2018) was held in Sydney, Australia, this month. With the theme of Global Challenges, Global Leaders, it highlighted how global issues are driving change in the accounting profession that will change the role of accountants in the future.
Three areas that are going through significant change at a global level at the moment are the economy, demographics and technology.
According to historian Professor Niall Ferguson of Harvard university, Brexit and the rise of populist and extremist governments is creating financial upheavals that will challenge the global economic order for a long time to come.
Looking to history, he argued that there will be an increasing need for good standards of business conduct in the future to maintain business confidence and safeguard against corruption.
Critical role to play
The accounting profession has a crucial role to play in this new world. But our role will extend beyond ensuring individuals and business are compliant, to making sure that we all do the right thing.
At a demographic level, we’re already seeing the impact that baby boomers are having on the ageing sector, but there is less discussion about the effects of the baby bust. The Australian government has been counter-acting this decline in national fertility rates with immigration.
According to Bernard Salt, these demographic changes will continue to drive every aspect of our lives. If we’re going to share in the prosperity to come in the future, Salt believes that people need to become knowledge workers.
Future generations
We need to upskill and train our future generations in technical skills that have global application. According to Helen Brand, CE of the Association of Certified Chartered Accountants (ACCA), the accounting profession is ahead of the game because we have a common technical language that is already global, but there’s still much more that we need to do to keep up with the rate of change.
One of the most important factors driving the need for new skills is technology. A hot topic at the WCOA2018 was artificial intelligence (AI) and its potential to transform how accountants work.
Kriti Sharma, VP of AI for Sage, highlighted small businesses spend a shocking 120 days a year on administration. This is an area where she believes AI can make a real difference in the near future.
Value added tasks
Another is in compliance, which Carol Barnay Head of AI R&D programmes at Xero believes will become something that is done passively in the background. This will leave accountants more time to focus on value-added tasks for their clients.
To thrive in this new world, we all need to develop new skills. Matt Tindale, managing director of LinkedIn Australia and New Zealand, highlighted that core professional technical skills like accounting, management, finance, reporting, auditing and even Excel remain the backbone of the accounting profession.
Essentials for the future
But technology and data analysis skills are emerging as essentials for the future. This includes knowing things like python, javascript, customer relationship management tools, strategy and digital marketing. The only constant skill that accountants require both today and in the future was communication.
These skills agree with a survey that the ACCA took of its members that highlighted the professional accountant of the future needs vision, ethics, intelligence, creativity, emotional intelligence, digital savvy and experience.
My key takeaway from the WCOA2018 was that the skills that accountants have relied upon in the past will no longer be enough. To face the future we need to take stock of the changes that are occurring at a global level and grasp the opportunities before us.
Being aware of how the economy, demographics and technology will change our industry is the first step in starting to prepare your organisation for the changes ahead. I believe this will change our industry for the better, which means it’s an incredibly exciting time to be part of the accounting profession.
What makes a truly ‘digital’ accounting firm?
Accountancy, like many other professions, is undergoing digital transformation – albeit in a staggered and variable manner. What was once considered a reasonably ‘safe’ trade, and a necessity for businesses with predictable revenue models, is now open to disruption from technology.
Digitally savvy firms can massively outdo inert firms in terms of both efficiency and quality of service – manual accounting actions can take twice as long as automated ones, are more likely to result in errors, and divert attention and energy away from more important, value-added tasks.
But digital firms enjoy more benefits than efficiency; they’re also more neatly attuned to changing customer expectations.
The millennial generation in particular expects more from accountants than number-crunching and spreadsheet-filling: yes, they want efficiency, but they also want advice, they want service, and – ultimately – they want a different mindset.
Commercial challenge
And the best employees want to work for companies with this mindset. With Making Tax Digital (MTD) just around the corner, accountants are faced with a stark legislative, operational, and commercial challenge.
But becoming a digital firm shouldn’t be seen as a matter of compliance – but a strategic necessity to be readily embraced.
If you run an accounting firm, it’s vital to strike a balance between human interaction and technology. You can’t use technology to automate all of your core duties – if you did, what would clients be paying for? So how can you add value in 2019, and beyond?
Business models and fee structure
A digital mindset is about technology – but it’s also about rethinking the way your firm operates. If you can streamline administrative tasks and data entry, then it’s necessary to double down on the other things you can offer, especially if you’re running a smaller outfit; firms with bigger clients are already emphasising value-added services.
So, look at your financial data and your business model, identify any potential problems, and come up with solutions wherever you can. Here, human input can be invaluable (at least until machine learning eventually steps into the breach): if you need to undertake more content marketing to improve your target audience’s awareness and trust, for example, you’ll know better than a computer. Using technology will give you the time to focus on these activities.
It’s also worth examining your fee structure: are you offering clients value for money? If not, think about what services or support you could provide that you currently aren’t.
A digital culture
It’s a less tangible thing than the other actions, but it’s still a necessity to create and cultivate a digital culture within your firm. Your working environment should align neatly with the personalities of your target audience. The aim should be to create a fun, dynamic, and agile workplace which offers clear recognition for all staff – and clear career progression.
That means filling the right skills gaps with any new hires – and it means enabling the right training opportunities to ensure current staff stay up to date. A digital culture is half about the technology, and half about being able to adapt, adjust, and move quickly.
Technology: current essentials and future considerations
Finally, and most obviously, a digital firm is one driven by technology. To grow your practice and increase your client roster, you need to be able to scale – and that means using the latest tools.
You need to think about your firm today, but also tomorrow, and in ten years’ time. Many firms will state that they have already started (or even finished) their digital transformation.
However, in reality, it’s an ongoing process – especially with innovations in artificial intelligence and machine learning not too far off in the future.
Streamlining processes
At present, cloud accounting software is essential in terms of streamlining existing processes and facilitating future scaling. It offers a clear, real-time overview of your client accounts, enables easy multi-user access, and runs entirely online – nothing to install, updates confirmed automatically, and everything backed up without any involvement from you.
It also mitigates upfront business costs, as maintenance, system administration costs, version upgrades, and server failures are all managed by the cloud service provider.
Many firms are already on the way to adopting digital cloud software; yours may be too. The technology is a critical part of this. But the individual tools are perhaps less important than how they fit together: if the elements of your software suite aren’t compatible, it will have an effect on overall performance.
Migrating to the cloud
Migrating to the cloud can’t be done off the cuff. For a full picture of financial health, it’s best to start with a core tool like Xero, and then select the apps that will suit your clients’ particular needs. These apps will specialise in inventory management, point of sales, job costing, CRM, expense management, and other key areas.
Soldo, for example, has recently launched a core integration with Xero that allows enriched business expense transaction data to appear seamlessly within the platform – as well as an open bank feed integration that leverages Xero Bank Feeds API, which allows transactions to sync daily and automatically.
Each complementary app means more control over potentially hidden costs such as staff expenses, as well as greater insights, and ultimately fewer errors – painting a better picture of financial health and the accountant’s overall competency.
A digital mindset needs to be expressed internally and externally: you should feel the benefits of technology within your firm, but your customers should also perceive you as a technologically-driven business – one that helps them embrace digital practices, too. This will improve your value as a business in the longer term.
What works for individual firms will vary; the key is to take the initiative. A truly digital business relies on a truly digital attitude. In 2019, don’t wait for the competition to overtake you – and take your firm into a bold, exciting, and technologically-empowered future.
All hands on Brexit as HMRC slows MTD delivery
HMRC's latest notice reveals that Brexit is taking priority over MTD .... though the digital delivery for VAT remains on course for next April.
The Revenue says: "HMRC have had to make some tough choices about how we use our resources so we can be sure of delivering on our EU Exit responsibilities.
"We’re now at the point where we need to step up our internal preparations to make sure we’re ready for next March. In practical terms, that means putting skilled project teams on to this work straight away. I’m therefore writing to update you on what that means for MTD.
Delivery of MTD for VAT is continuing as planned, but we are slowing the IT delivery of some other elements of MTD relating to Income Tax and Corporation Tax.
Million customers
Work will continue to complete the Income Tax service for the million customers who are eligible to join and the pilot will remain open for those who wish to trial the service, but we will pause work to extend the service to cater for other customer types.
“The introduction of the Making Tax Digital (MTD) service for VAT from April 2019 will be a major step towards HMRC’s ambition to become one of the world’s most digitally advanced tax authorities.
"These changes do not impact our plans for VAT – the majority of customers with turnover above the VAT threshold will still be mandated to use the MTD for VAT service from April 2019 - and the continued prioritisation of the majority of MTD delivery in these challenging circumstance reflects the importance we and Ministers attach to it."