#accountex

‘A lot of businesses don’t even know about all the services which their accountant provides’

Speaking at Accountex, Jennifer Warawa was quick to remind accountants that the pace of change in the industry will only increase from now on. That’s bad news for those who have already found the pace too fast – but exciting for anyone who is keen to take advantage of the transformation being wrought by technology in particular. Sage’s executive vice president of partners, accountants and alliances was introducing the company’s Practice of Now 2019 report, a survey of UK accountants. Among the findings was the figure of 86% of accountants who believe that the industry needs to pick up the pace of technology adoption to remain internationally competitive. She spoke to Accountancy Age about what this means for firms in the UK. How many accountants were surveyed for the Practice of Now report? Three thousand – it’s a good sample size, of different sized practices. What kinds of things did you learn? There are some trends which we haven’t heard about before so much, such as diversity and culture, which didn’t come up previously. MTD has pushed accountants forwards a bit, and opened their minds. They are looking past automation – which we have been talking about for many years  – towards other trends which are going to affect their business. Are training programmes adequately preparing people for the changed profession? Training programmes are not ready – they are only ready for old school accounting, the bean-counting tasks. Accountants do need that, but they also need to be able to have open-ended conversations with their clients. There was an accountant in a roundtable discussion this morning who said that she doesn’t want to change, she does compliance and her clients are happy with that. I feel like that is risky, you do need to diversify your practice. What are the most important skills for accountants to have now? One of the most critical skills that I see as a skill of the future is communication. It is top of the list. It is not a one-way process – how do you understand your client’s business, by asking questions and having a conversation. A lot of businesses don’t even know about all the services which their accountant provides. The accountants we surveyed think that technology literacy is the most important skill, but it isn’t just important to know about the big players, it is about understanding all the apps which interact with those. One way to do that is to focus on a speciality, such as retail, fintech, etc, and get to know that really well. In a market like Australia, they live in the cloud, but you still get accountants who say they don’t know if the cloud is safe. Your report found that 88% of UK accountants said they want to recruit people from a non-traditional background. What kind of experience would that be? “It is about what could add value for your customers.” We had a partner in South Africa who decided he was going to recruit someone who understands technology, but not necessarily accounting. It is about what could add value for your customers. You might choose someone who is a brilliant communicator, or someone who will understand what your clients want in five years’ time. Meanwhile, 28% of those surveyed said they are actively seeking to diversify their workforce. What is the best way to go about this? It depends what you mean by diversity. A lot of accounting firms think it means gender, but that is only one type of diversity. Others include background, skillset, and age. I always have interns report directly to me, as they can really challenge our perspective. Someone who doesn’t know the industry has a refreshingly different perspective. In a lot of cases, firms who say they are doing something about diversity are in reality only thinking about doing something about it. People tend to employ someone based on whether it would be a ‘good cultural fit’, thinking that they will get on and have fun at work, but that isn’t really what you need. You need someone who will bring a different perspective and challenge you. Change may be happening at a faster pace than ever, but how do you ensure staff can keep up with it, and not experience a kind of change fatigue from taking too much on? Everybody sees the value in their own profession, but we are bad at seeing the value in others. Accountants know they need to change, but they are reluctant to employ a change management consultant. They see it as a fluffy nice-to-have. When you ask people ‘would you cut your own hair?’ they say no, but they want to do their own change management. Every industry could benefit from it. What things should an accountant practice do right now to prepare for the future? They should spend some time creating a five-year business plan, even if everything changes. Right now, they often try to solve problems using technology, but they haven’t thought about the business they want to have in five years’ time. It makes you think about what is going on in the industry.   The post ‘A lot of businesses don’t even know about all the services which their accountant provides’ appeared first on Accountancy Age.

Five things we have learned from Accountex so far

1. Robots will steal our jobs – but more jobs will be created overall Jennifer Warawa, executive vice president of Sage, reminded us that all sectors are experiencing disruption, and the pace of change due to technology is only set to grow. But those accountants who are worried they will be replaced by AI or other kind of technology should be assured – she shared Gartner research which shows that by 2020, AI will become a positive net job motivator, creating 2.3m jobs while only eliminating 1.8m. Millennials want the same as everyone else Among the many surprising figures in Sage’s Practice of Now presentation, shared at Accountex 2019 for the first time, was the detail about millennials. While many practices worry about how to recruit and retain this section of the workforce, it may not be as difficult as feared. Executive vice president Jennifer Warawa said the things which matter to them, such as having a positive impact on their organisation, becoming an expert in their field and being able to do work they are passionate about, have always mattered to all generations. “Everybody ultimately wants the same thing in the workplace, not just millennials,” she said. While issues such as a work/life balance are now higher on the agenda for many graduates entering the workplace, all generations can in fact benefit from these changes, many of which are enabled by technology. There has been a 32% increase in positive sentiment among SMEs for MTD While some resentment remains among SMEs forced to choose between 200 different kinds of software which are compatible with MTD, the message about its benefits is getting through. QuickBooks’ Nick Williams shared the results of a survey they commissioned, showing that there is a more positive feeling about the regulation now. HMRC’s MTD director Theresa Middleton said the next steps for MTD would include stimulating the software market to create more software capable of filing income tax directly to HMRC, ahead of the government introducing MTD for income tax – though this will not be until after 2020, as Philip Hammond has said in the Spring Statement. The workforce is changing QuickBooks’ sales director Nick Williams shared the statistic that 50% of the workforce will be self-employed by 2025. And that’s not all – Sage’s Jennifer Warawa reminded us that millennials already make up the largest proportion of the workforce, a milestone which was passed in 2017. By 2020, she added, they will make up more than half of the workforce, along with Generation X. There have been 70,000 MTD submissions so far Theresa Middleton, HMRC’s MTD director, said the tax authority is pleased with the way MTD has been progressing so far, though she stressed that teething problems are being ironed out. The first VAT returns will be submitted on August 7, meaning that the April 1 deadline was not a “cliff edge.” Businesses who must comply will still have a chance to do so, although they should already be keeping digital records.       The post Five things we have learned from Accountex so far appeared first on Accountancy Age.

Accountex puts the profession face to face with the future

Whichever way you look at it, the accountancy and finance landscape is changing fast. For instance, the adoption of artificial intelligence is going to massively disrupt the profession. On the positive side of that is AI is set to revolutionise the accountant’s role, consigning repetitive and mundane tasks to the bin and replacing them with new opportunities. But, on the negative, it is signalling an end to the traditional accountant’s compliance role and sounding the death knell for the bookkeeper. Controversial policy Then there is Making Tax Digital, HMRC’s at times controversial policy of digitising the UK’s taxation system. As from April 1, all businesses with a turnover above the £85k VAT threshold will have to file returns digitally, using approved software or at least using bridging software that can convert Excel sheets. That marks the start in earnest of a financial revolution that will eventually see the whole system, including income and corporation tax, brought under the digital umbrella. Some observers are forecasting an HMRC meltdown over MTD. MTD message Others think the Revenue has made a hash of delivering the MTD message and implementing the changes. Then there’s the view that Brexit has derailed the whole thing. And then there’s the evangelists who see MTD and technology as unparalleled opportunities for the accountant to make hay in the sunny uplands of advisory work. It’s a familiar narrative, but it remains none the less confusing. And this is all before we arrive at payroll, cashflow, forecasting, blockchain and the arcane world of IR35. White noise With all the white noise, it’s difficult to get a clear perspective on which direction the accountant of today – let alone tomorrow – should be travelling in. This is where Accountex can help. Why? Because it gives you the opportunity to get all the information you need at first hand. It allows you to hear all the different voices and opinions. Under one roof. It allows you to make your own mind up and to feel confident that you are making the best decisions for your business or practice. Accounting software Many in the profession are already familiar with the annual two-day expo for accounting and finance professionals at London’s ExCeL. This year’s event takes place on May 1-2, and it is expected to attract nearly 8,000 visitors. They will be there to meet over 200 exhibitors and to get up speed on everything from accounting software and sales strategies to outsourcing and expense management systems. Then there is the show’s unrivalled education programme, which this year has more than 100 CPD seminars in 12 theatres. There will speakers from the HMRC and the major accounting professional associations such as ATT, ACCA and ICAEW. There will be leading lights from accounting software market leaders such as Intuit, Xero, Sage and IRIS. Face to face contact There will be the cutting-edge start-ups. There will be marketing gurus and accounting tech thought leaders. And there will also be sessions focusing on well-being and mental health; plus absorbing features such as the history of women in accountancy. It’s a packed and comprehensive agenda that is matched by a real buzz on the exhibition floor. Zoe Lacey-Cooper, Accountex group portfolio director, says: “With everything moving to the cloud… online …on email … on Slack groups, it’s all getting a bit anonymous. We are losing opportunities for face-to-face contact. “But when I turn up at the exhibition and take a moment just to stop and have a look… just having these accountants in one room, under one roof, just for two days; you can see they really thoroughly enjoy being together. “They love to catch up, they love to share their insights because (I get the impression) they work on their own quite a lot.” Sound strategy If you decide to visit ExCeL in May, it is important to have a sound strategy so that you can optimise your visit. Zoe adds: “Accountex London can be an overwhelming event. There are lots of speaker sessions, about 200 exhibitors to see – it’s busy busy! And it’s a lot to do in two days. “ The good news is that the organisers are always looking for ways to improve the show. “We are trying to make the visitor journey easier,” says Zoe. “But it’s all about planning. At the point of registration, we ask what ‘tech journey’ the attendee is on. Are they tech savvy, cautious or curious? We also ask what they’re looking to get out of the show. “Then we ask those same questions to our speakers, so we can match our speaker seminar sessions to the visitors. “We are hoping to develop this to then send them nudges like, ‘If you are tech savvy then here are some speaker sessions that would be great for you, and here are some exhibitors that you might like to see’.  We are trying to do a little bit of clever matching for people so it’s not so daunting.” And on a lighter note, she says: “I also recommend looking at all the free parties that you can go to!” Accountex takes place at London ExCeL on 1-2 May.  Attending is free if visitors register in advance, or is £25 on the door. All Keynotes and seminars (in the show’s 12 theatres) are also free to attend, but are allocated on a first come, first served basis. Register for a free ticket to attend here. The post Accountex puts the profession face to face with the future appeared first on Accountancy Age.

Accountex focuses on education and enlightenment

The 2019 Accountex education programme is looking especially varied and vibrant. In fact, visitors to the expo at ExCeL London on 1-2 May look set to witness an accounting and finance CPD hours bonanza. There are more than 200 seminars in 12 auditoriums, covering all areas relevant to the profession. Accounting Insight news editor Ian Moss has been helping portfolio event director Zoe Lacey Cooer to organise the sessions. Unenviable job He says: “The standard of applications to speak at Accountex is very high. “The speaker steering committee has an incredibly difficult and unenviable job of picking out the final line-up. “But we think we have arrived at a programme that will educate, inspire, inform and entertain.” Given the buzz over Brexit and MTD, one of the big keynote draws for 2019 will be HMRC, which has four sessions over the two days. Packed out auditoriums The tax authority is yet to reveal the identity of its speakers but they will undoubtedly be delivering their presentations to packed out theatres. The organisers of Accountex will be unveiling the keynote programme next week, but the rest of the programme is already online To get you started on organising your visit to Accountex, here are EIGHT sessions that highlight the depth and breadth of the speaker programme. Beyond Automation: Business Growth Lesson from Down Under: Sam Allert, CEO of Reckon, shares insights to help keep your practice ahead of the curve in efficiency, productivity, and delivering value. He’ll explain what Australia’s leading bookkeepers and business advisory firms are doing in the face of increasing automation. Cryptocurrency: The Basics You Need to Know to Help Your Clients: Aynsley Damery CEO of the Clarity Project, explains what a cryptocurrency is, how it’s traded, how you can use it, how it’s stored and the areas where you can help your clients who own cryptocurrency. Gender Diversity in Accounting and Finance: Claire Harvey, managing director of Reed, observes that accountancy globally has seen a rise in women choosing finance as their future. She will discuss some of the ways women can break through that glass ceiling and offer her insights into how companies can achieve a more gender diverse boardroom. How to Measure the Unmeasurable! Lucy Whittington, co-founder of Statzy, looks at how to easily measure what matters, set goals that help with growth and be in a position to ask valuable questions. Use your new know-how in your own practice and with clients as their adviser (or both). Essential Exit and Succession Planning: Peter Rayney of Rayney Tax Consultants on dealing with key planning areas – handing down to the next generation, purchase of own shares, company sales and maximising entrepreneurs’ relief, and IHT business property relief issues. The Two Ethels: How the Accountancy Profession Reacted to the Admission of Women: Helen Thornley, of the ATT, examines how women won the right to become chartered accountants. Starting with the experiences of two trailblazers and equal rights campaigners, Ethel Ayres Purdie, the first woman to join a professional accountancy body; and Ethel Watts, the first woman to qualify by examination to join the ICAEW, Helen will conclude by looking at how women are represented in the profession now. Challenging HMRC Tax Investigations and Disputes: What You Need to Know: Dave Jennings, tax investigations and employment tax director at Qubic Tax, explores HMRC’s powers during tax investigations and taxpayers’ rights, including information powers, issuing assessments and penalties, as well as other key considerations such as time limits, burden of proof, processes for obtaining a closure notice and routes to appeal. How to Keep Your Data Safe in the Cloud: Brendan Woods, CEO of AutoEntry, asks how can accountants do more to keep their data safe when using the cloud and following the introduction of the EU GDPR? From encryption to data location and access control, what security standards should accountants be looking for? What questions should be they asking their cloud service providers before adopting a new solution? Accountex takes place at London ExCeL on 1-2 May.  Attending is free if visitors register in advance, or is £25 on the door. All Keynotes and seminars (in the show’s 12 theatres) are also free to attend, but are allocated on a first come, first served basis. Register for a free ticket to attend here.   The post Accountex focuses on education and enlightenment appeared first on Accountancy Age.