The Accounting profession is changing
Accountant’s in practice are seeing some of the most dramatic changes to their profession’s history. As a result the accountancy profession is changing.
What are these changes and where will Guida Accountancy be going in the next 12 months?
The advancement of cloud-based systems for accounts, bookkeeping and payroll is continuing at a rapid pace. Artificial Intelligence is starting to come in as software adapts to learn from standard entries made to the bookkeeping system.
As Accountant’s this could be seen as a worrying trend or an opportunity. Accountant’s can now have access to a client’s system online, all the time. This means we can provide up to date help and advice, spot problems much earlier and advise the client accordingly.
Our role as advisors is becoming more and more important and this is a trend that I intend to follow. As a Xero advisor I help client’s set-up or transfer their bookkeeping to this cloud-based system. Then I monitor their progress, spot problems and help them when they need it.
Coupled with technology there is increasing automation of the bookkeeping process. Automatic bank-feeds are now common, reducing the time spent on manual entry of bank transactions.
Apps are available for scanning and inputting expenses and automating bill entries. All this saves time and I expect the advancement will continue.
There is still a role for an accountant/bookkeeper though, but they can concentrate on higher level work rather than the time-consuming manual stuff.
Making Tax Digital
MTD has been around for a while, but this is to be extended to cover corporation tax and self-assessment in the near future. This will mean a change to reporting requirements, both in terms of method and timing.
This is likely to cause businesses and individuals, including Landlords, additional costs and administration. Software may be needed even for very small businesses to enable correct reporting.
We are all awaiting the details on this, but I expect more businesses and Landlords will need help.
The burden for accountants, and yes the boring part, is keeping up to date with changes in legislation. With the UK leaving the EU and the economic effects of Covid-19, I expect some major changes to tax legislation in the coming year.
There must be a fine balance between raising sufficient money and suffocating growth. This is a tough one for the Government.
Current favourites for change are Capital Gains Tax, Entrepreneur’s Relief, Inheritance Tax and Pension Relief.
We may well see some measures to help business and the economy recover . However, we still don’t know the long-term effects of Covid-19, or the terms of Brexit so it’s harder than usual to predict what will happen.
What next for Guida Accountancy?
With changes in Technology, come changes in all businesses, so here a few that I intend to bring in over the next year.
- A new self-assessment checking service. Aimed at individuals who complete their own tax return, I will provide a check to ensure they are claiming what they can and have completed the return correctly. Providing assurance and reducing the risk of penalties for errors.
- Me and Ida are big supporters of Guide Dogs for the Blind. We want to increase our support over the coming year by offering donations for client referrals and new business and maybe a fund raising event of some sort.
- Increasing business contacts who can provide help and support for our clients. I have been working on this area for a while and have already established contacts that I know can provide an excellent service that my clients can use. There are areas that I am not an expert in, but I want to be able to help my clients get help and support for their businesses.
- Greater use of Social Media to keep everyone up to date with changes to legislation plus some more interesting stuff. Maybe even a video or two (of Ida as she is far better looking than me!)
I know that me and Ida are looking forward to the next year with optimism. Ida is fully expecting to meet more people, which she loves doing. She will expect them to bring a treat or a toy but will be happy to see them even if they don’t.
Though the accounting profession is changing, we will maintain our personal, friendly and helpful service to our current and, hopefully, new clients too.
We will continue to help micro and small business from start-up onwards and landlords with a small property portfolio. Why not book a complimentary discovery call with me to see how I could help you and your business.