Going Digital: The Impact of Digitalisation on Small Practices. The future s bright, the future s digital

Transcription

1 The Digital Accountancy Forum Going Digital: The Impact of Digitalisation on Small Practices. The future s bright, the future s digital Tony Margaritelli, ICPA Chairman

2 "Life can only be understood backwards; but it must be lived forwards" Søren Kierkegaard

3 Software and App Advances Better More Accessible Cheaper

4 Software and App Advances Easier to comprehend Significantly easier to setup and integrate Easier to use

5 Notebooks looked like this

6 Trial Balances looked like this

7 Calculators looked like this

8 Spreadsheets looked like this

9 Balance Sheets looked like this

10 Computers looked like this

11 HMRC looked like this

12 Small practices: The poor relation? Is it because they deal only in compliance or owner run companies and the self-employed? Or is it because they are perceived by those in larger practices to be still anchored to their desk, their timesheets and outmoded techniques? Small practice clients are somehow not worthy? Their clients can just as easily be dealt with direct by HMRC

13 HMRC s View of small business and their Accountants Half of the UK tax gap is attributable to small businesses, despite the fact that the vast majority of them pay a tax agent to help them comply Jim Harra HMRC Director General

14 HMRC s View of small business and their Accountants There is the tax agent industry, which has a very high level of penetration into small business taxation, yet its clients are often presenting as non-compliant we need to drive up the value the tax system gets from agents in the system

15 What is a Small Compliance Based Practice? You have to have clients! client referrals promoting within the community or particular niche shown a willingness to use social media

16 What is a Small Compliance Based Practice? For their clients they: Produce annual accounts, management accounts, tax returns both personal, corporate and trust and then there s payroll auto-enrolment and let s not forget bookkeeping and of course Vat. Legitimately minimise tax Ensure clients pay the correct amount of tax Ensure clients comply with legislation

17 Number one trusted advisor

18 Workplace Pensions example Accountants stepped in and did the research, learned the rules, sourced the software, trained the staff, educated the client and filled the void

19 Is there a market for small practice accountants? 4.8 million self-employed people in the UK - 15% of the UK workforce - they contribute 270billion to the UK economy 1.9 million Companies 414,000 partnerships

20 Major Milestones PC Spreadsheet Internet cloud

21 Major Milestones Self-Assessment RTI Auto-Enrolment Anti Money Laundering

22 October months away from MTD for Vat 1.1million Vat Registered businesses will have to file their Vat Returns from within some form of digital software NOT via the gateway Small practices and their Tech providers will be tested next April - their busiest time namely the 31 st January filing deadline

23 Will MTD for Vat be a Shoe in? It s only nine boxes isn t it

24 MTD for everything else targeted for all our Limited Companies, Partnerships, Self-employed individuals and Landlord clients will be subjected to quarterly reporting Will small practices be ready? Will business be ready? Will HMRC be ready? Time alone as they say will tell

25 The Cloud Cloud based applications Increased automation Time saving Become the accountant that can add value Help clients plan with up to date information

26 Small practice Accountants are Changing Reviewing clients systems and integrating apps into mainstream accounting for Invoicing for Debt collection for Expense allocation for Obtaining finance speedily and efficiently for Forecasting and planning for HR and staffing for Marketing and Publicity Whilst all the time never losing sight of the simple yet basic fact that records and accounts must be kept up to date and accurate.

27 Automation and AI Obtaining urgently needed finance used to be a major problem for small businesses Now we can link accounting records direct to the provider

28 Accountants can give their clients the gift of time Time to spend thinking about the business Time to spend thinking about the future Time to spend enjoying the success of their business

29 Tech isn t just for clients On-boarding clients Value pricing Time recording Credit control Cloud Bank Accounting

30 From Compliance to Advisory : Set free and Riding the Cloud

31 Thank You