Category Archives: Accountancy & Accounts

Accountancy, Accountancy & Accounts, Business, Business Advice, Cardiff, South Wales

Two thirds of UK finance professionals optimistic about AI in accountancy

  • 66% of UK finance professionals believe that AI will allow them to add more value in their roles
  • 42% are concerned about the potential impact of AI on their roles in the future – but this is lower than the global average of 51%
  • 71% of finance professionals are keen for more training on AI to better understand it and integrate it into work

 

Recent research conducted by ACCA, the leading global accountancy body, takes a look at the current state of the UK workplace for finance professionals. Analysing key areas such as remuneration, staff retention, employee wellbeing, AI and diversity and inclusion, the study highlights the state of affairs for the finance profession across the UK.

 

AI has been dominating the conversation for UK finance professionals, but the response has been positive on the whole. Two thirds of survey respondents reported feeling positive about AI, seeing it as a tool to add more value to their roles and reduce data-heavy tasks. The fact that almost three quarters (71%) are keen for more training on how to best use AI demonstrates that the UK’s finance professionals want to understand and utilise AI effectively. Using AI to reduce time-intensive but low value work tasks means more time is freed up for high value work.

 

The pace of change in technology at work was a concern for one fifth (22%) of respondents, who felt overwhelmed by the rapid rate at which technology was advancing and changing.  However, the global average for this was 37%, indicating that UK finance professionals feel more prepared and resilient in the face of change than their global peers.

 

Concerns raised by respondents around AI included job displacement, qualifications taking longer, and the risks of AI such as privacy, security and ethical use of data, as well as potential issues of over-reliance on AI.

 

Alongside AI, ACCA’s survey revealed that finance and accounting employees in the UK are still very much embracing a hybrid work model, with 64% reporting this was their working pattern, almost a third higher than the global average of 41%. Only 21% of those surveyed are working full-time in the office in the UK – globally, that figure jumps to 52%. In the UK, Wales has the highest percentage of workers full-time in the office, at 38%. Only 52% of Wales’ finance professionals work in a hybrid pattern, the lowest of the UK nations surveyed.

 

However, there is a trade-off between productivity and team collaboration highlighted by the survey, with 68% saying working remotely improves their productivity, and 49% saying it makes team collaboration harder. Respondents did cite benefits of being in the office (in addition to improved collaboration) including workplace cultural reinforcement and adoption, particularly for new hires, organic learning and networking opportunities.

 

Joe Fitzsimons, senior manager, Policy & Insights, ACCA UK, and author of the report said: “The responses from UK finance professionals in this survey around AI reflects a growing conversation about how technology will change the future of work. It is positive to see that two third of respondents are optimistic about the role of AI and even more are keen to understand it more through training and upskilling. While UK finance professionals are more optimistic than their global peers, there is still a long way to go in full rollout of AI in organisations, and ACCA will continue to provide insight, research and support for a smooth transition.”

Lloyd Powell, head of ACCA Cymru/Wales, added: “Wales offers a diverse range of opportunities for those working in accountancy roles.

“We know from the many employers that we work with across Wales that attracting and retaining accounting and finance talent is a key focus, and that offering training, professional development and other employee benefits is something they are implementing in a competitive job market. The higher than UK average percentage of workers in the office full-time in Wales is interesting, and we’ll continue to monitor this from an employee and employer perspective.”

Read the full report here.

Accountancy & Accounts, Finance and Banking, News, Tax

HURST expands with new private client tax service

Independent accounting and business advisory firm HURST has launched a private client tax service to enhance its offering to business owners, entrepreneurs and high net worth individuals.

Karen Chadwick, who has 30 years’ experience in the field, has joined HURST as a partner to lead the new offering.

She has moved from Azets, where she was a tax partner. She previously worked at firms including Deloitte, KPMG and CLB Coopers.

During her career, Karen has gained a wealth of personal and trust tax compliance and advisory experience and technical knowledge, particularly in the areas of trusts and inheritance tax.

She said: “HURST is on an impressive and ambitious growth trajectory, as a strong, independent north west accountancy firm whose team delivers a first-class service to a varied client base as well as contacts and intermediaries, backed by a strong, cohesive and close-knit management team.

“The partners have recognised there is a need and demand within the firm’s tax service line for a dedicated private client tax offering, and I am thrilled to take up the opportunity to lead it.

“I’m excited to be part of the firm’s journey and to complement the existing partner group and HURST’s skilled and ambitious team to assist with the future development and growth of the practice.

“I look forward to applying my experience and technical knowledge to help clients achieve their personal and family wealth objectives now and in the future.”

HURST’s managing partner Tim Potter said: ““As the firm cements its position as the number one independent north west firm working with owner-managed businesses in the £5m-£100m turnover space, we have taken the decision to enhance our offering with a new service to support our high net worth clients with inheritance tax, trusts and complex personal tax matters.

“This is an exciting development for HURST and we are delighted to welcome Karen to the fold. We expect her vast experience and knowledge to be in high demand from our enviable client base of high net worth individuals.”

HURST focuses on advising entrepreneurial owner-managed businesses across all sectors. Clients include Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Scapa Group and Hyde Group.

The firm recently moved its head office to a new flagship development in Stockport to accommodate its growing team, taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

HURST had been based since 1996 in Tiviot Dale in Stockport town centre, but outgrew the premises. The firm aims to grow from 120 staff to around 170 over the next three years.

Accountancy & Accounts, Cardiff

Boardroom leadership needed to manage AI risks and drive trust

  • Businesses urged to take steps to maximise the opportunities of AI and lay foundations for responsible use of new technologies
  • AI use in finance must be built on trust in order for it to succeed in rollout and application

 

Chief executive officers (CEOs) and chief financial officers (CFOs) need to build trust in artificial intelligence (AI) by taking steps in their organisations to manage the associated risks.

 

As AI plays a greater role in the accounting and financial reporting of businesses, CFOs and financial controllers will have to be confident about the adequacy of oversight and controls of AI systems.

 

In the first in a series of insights, AI monitor: trust, ACCA (the Association of Chartered Certified Accountants) urges finance professionals to ensure that AI governance and AI risk management is in place, beginning with:

 

  • Investing in AI literacy and skills development: finance professionals must invest in education and training to critically evaluate AI outputs, communicate clearly with key stakeholders, and make informed decisions.
  • Collaborating via cross-functional teams: finance professionals should actively engage with IT, data science, legal and risk management teams.
  • Developing an AI governance framework: beginning with critical uses, finance professionals should take steps within their organisation to establish clear policies, oversight and governance practices.

 

AI presents many opportunities to businesses such as providing more insights from a wider array of information sources, driving greater efficiency and better customer experiences. But it also poses a challenge to trust in accounting and finance reporting with new dynamics being introduced to the traditional trust mechanisms that underpin corporate accounting.

 

Alistair Brisbourne, head of technology research, ACCA, said: “Introducing AI is both about trust in the systems and trust in the people that we work with, and how we bring those two elements together.

 

“CEOs and CFOs need to focus on making the changes needed to harness the many potential opportunities but also retain trust. This includes upskilling to deal with the technology and introducing new knowledge into their organisations. They also need to focus on the governance, the oversight and culture required to allow different teams to work together effectively. It’s about bringing change management and governance together.”

 

AI monitor: trust highlights some of the risks of AI in accounting systems, such as:

  • Impacting decision-making without clearly explaining the rationale of the forecast or recommendation;
  • An over-dependence on AI procedures in auditing and assurance and a decline in use of human intervention and judgement;
  • Concern over AI bias or error in fraud detection, risk assessment and compliance monitoring;
  • Over relying on AI-powered virtual assistants which give inaccurate or inappropriate responses.

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “In the AI era, the role of finance professionals is to focus on the outcomes driven by technology. Value lies in understanding how these outputs inform decisions and actions that drive business outcomes.

 

“As we recognised at a recent roundtable held in Cardiff, AI will change the finance function and there will be new roles as a result, but accountants will remain central to the success of Welsh businesses and organisations.”

 

In 2024 future issues of the AI monitor will explore talent, risk and controls, the relevance of effective data strategy, and sustainability applications.

 

Read Enabling trust in an AI-enhanced world

 

Visit ACCA’s website for more information.

Accountancy & Accounts, News, North of England

The AFA Group Celebrates Substantial Team Expansion

Manchester-headquartered AFA Group, the parent company of Clear Start Accountants and AFA Insolvency, has significantly bolstered its employee base over the last quarter with twenty three new appointments.

Welcoming half of the group’s recent recruits, leading personal insolvency specialist AFA Insolvency, has considerably extended its team. In the past three months, the firm has appointed individuals to a series of positions including Debt Advisor, Drafters and Quality Monitoring roles.

The AFA Group’s accountancy and personal budgeting division Clear Start Accountants, has also made a series of appointments, strengthening its customer service department. The business offers accountancy services for sole traders and smaller firms provided by a team of qualified accountants, as well as its pioneering, tech-enabled, personal budgeting service for both business and private individuals.

The significant growth follows hot on the heels of another record period for the group, which closed the year (2023) with a highly impressive 87.5% uplift in value of sales – rising to a noteworthy £15 million, from £8 million in 2022.

Fiaz Ashraf, Founder and CEO of the AFA Group, commented: “As we continue to experience monumental growth, it is a pleasure to offer a variety of job opportunities in the region and welcome a wealth of new team members to the AFA Group. Expanding our dedicated team is absolutely crucial in helping us to maintain an exceptional level of service for our customers, as we continue to support them with various aspects of financial management.”

With an employee base of over 150 people, and operating from its state of the art, contemporary headquarters in Universal Square, Devonshire Street North, Manchester, as well as from its offices in Stockport and Canada, the AFA Group is the parent company of several high-growth businesses including AFA Insolvency and Clear Start Accountants. The group offers via its various divisions a suite of services to support individuals and companies with financial management – from monthly budgeting services and debt management, to general accountancy support.

To find out more about Clear Start Accountants visit: https://clearstartaccountants.co.uk/

Accountancy & Accounts, Appointments, News

Dealmaker Max Perry gains promotion at HURST

A dealmaker at independent accounting and business advisory firm HURST has been promoted to associate partner.

Max Perry joins the HURST board as a result of his promotion from associate director.

He has completed a range of transactions involving UK and overseas trade buyers and private equity buyers since joining HURST’s corporate finance team in December 2021 after roles at Deloitte and corporate finance boutique Camlee Group

His deal highlights at HURST include advising the shareholders of Huddersfield-based PCS Asbestos Consultants on the company’s sale to AIM-listed Marlowe, acting for the shareholders of financial advisory firm Financial Management Bureau on the sale of the Cumbria-based business to Finitor Wealth, and advising north west IT and telecoms solutions provider Active on its sale to technology company Babble.

Max is among a group of HURST’s rising stars who are taking part in a bespoke two-year leadership development programme.

HURST is the first accountancy firm headquartered in the north to launch a Vistage Inside programme for future leaders. Vistage, with 45,000 members worldwide, is a global leader in personal development and advisory groups for CEOs, key executives and leadership teams.

Nigel Barratt, partner and head of HURST’s corporate finance team, said: “Max has played a leading role in growing our business by successfully completing transactions with UK and international trade buyers and private equity buyers.

“He is currently working on a number of transactions, has brought new clients to the firm and has built strong relationships with existing ones. He’s passionate about developing team members and actively supports and mentors his colleagues.

“His promotion is well-deserved and we look forward to seeing Max continue to flourish as our corporate finance practice expands further.”

Max said: “I’ve thoroughly enjoyed my time at HURST so far and I’m especially grateful to Nigel, corporate finance partner Ben Bradley and Mike Jackson, the head of our business services team, for their guidance to date.

“I’m absolutely delighted to receive this promotion and to have been invited to join the board. The firm is so full of talented individuals, and the future is incredibly exciting. It’s an honour to be asked to play my part in it.”

HURST focuses on advising entrepreneurial owner-managed businesses with turnover of £10m and above across all sectors. Clients include Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Arighi Bianchi, Scapa Group and Hyde Group.

The firm will move its head office to a new flagship development in Stockport later this month to accommodate its growing team. HURST is taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

It has been based since 1998 in Tiviot Dale in Stockport town centre, but has outgrown those premises. The new HQ will give the firm scope to expand from 120 staff to around 170, which it aims to achieve over the next three years.

Accountancy, Accountancy & Accounts, Investment

ACCA welcome UK/Australia audit recognition deal as step to driving audit quality

  • The deal between UK and Australian audit bodies allows professionally qualified auditors to more easily work in either country.
  • With talent in short supply, both countries’ regulators recognise audit professionals should face no boundaries in taking their work overseas. 

 

ACCA has welcomed the mutual recognition agreement between UK and Australian audit authorities. At a time of a talent shortage, the deal should make it easier for auditors, including ACCA members, to work between both countries.

 

The agreement between the UK’s Financial Reporting Council and the Australian Securities and Investment Commission (ASIC) allows auditors who have obtained professional audit qualifications as a statutory auditor in the UK or Australia to more easily apply for recognition of their qualification and audit rights in the other nation.

 

Maggie McGhee, executive director for strategy and governance at ACCA, said: “ACCA welcomes the UK and Australian audit authorities agreeing mutual recognition of audit qualifications.

 

“Over time this Memorandum of Understanding on Reciprocal Arrangements (MOURA) should increase the supply of high quality auditors for both economies. This is important at a time when audit talent globally is increasingly in short supply. This will in turn support the continued efforts from the respective regulators of the two countries to drive high quality audit in the public interest.”

 

ACCA has discussed the issue of audit talent scarcity in its recent report Attract, engage, retain: Insights and recommendations for audit talent success, published the day before the UK/Australia agreement was announced.

 

Simon Grant, CA ANZ group executive advocacy and international development, said: “The ability to be recognised and work overseas in a truly global profession is a major drawcard for a career in audit, and this agreement provides greater clarity and confidence for auditors moving between Australia and the UK.

 

“Australia is one of the first countries to be recognised under the UK FRC’s renewed approach on mutual recognition, which alongside New Zealand, is a testament to our close ties and shared history.”

 

Mike Suffield, ACCA’s director, policy and insights, said: “This builds on the professional ties between the two countries and helps embed the value of the strategic alliance between ACCA and Chartered Accountants Australia & New Zealand which works to increase the flow of qualified accountants, including auditors, between the two countries.”

 

See the FRC/ASIC announcement.

Accountancy & Accounts

ACCA welcomes HMRC move to require tax agents to belong to a professional body

Regulation needs careful consideration to ensure fairness and proportionality for taxpayers and agents

 

Leading global accountancy body ACCA (the Association of Chartered Certified Accountants) has welcomed the step by HMRC to look to only work with tax agents who are members of recognised professional bodies. Although ACCA is clear that the proposal would need to be carefully implemented to ensure that taxpayers, agents and Exchequer benefit and we do not see a spiral of increased cost and non-proportionate regulation.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “The idea of HMRC looking to work only with agents who are members of a recognised professional body has been raised by ACCA over many years. It has long been recognised that HMRC has issues with some agents it deals with who act in an unprofessional manner. This step is designed to deal with this problem.”

 

Collins said: “While the move would be broadly welcomed by ACCA members it is imperative that this is done in a cost effective manner. Such a move should increase the quality of tax advice which taxpayers receive and provide greater assurance to HMRC.

 

“However, HMRC will have to be clear and careful on how it defines professional body so those with clear accountability, and public benefit remit backed by clear and transparent standards are included. We will carefully support and advise HMRC to ensure the greatest possible competition and choice in the tax advice market for taxpayers while ensuring an appropriate degree of regulation and protection for taxpayers.

 

“HMRC needs to see that these professional bodies – such as ACCA – appropriately regulate and monitor their members across a range of activities including tax advice. Equally importantly taxpayers – both businesses and individuals – must not see an increase in the cost of their tax advice at a time when they are struggling with a sluggish economy and rising costs on many other fronts.

 

“Overall, ACCA believes this move could help improve trust and confidence in the tax system, reduce pressure on HMRC services and protect taxpayers. ACCA looks forward to working closely with HMRC and other professional bodies to ensure this lates regulatory move is applied proportionately, fairly and at pace.”

 

Editor’s note

 

ACCA also believes that this move could help to rebuild trust with stakeholders which we have consistently called on HMRC to do. See our letter to the Chancellor ahead of the March 2024 Budget https://www.accaglobal.com/uk/en/cam/spring-budget-24.html

 

 

Accountancy & Accounts, Business, News, Sport

Supporting the football heroes of tomorrow

Accountants and business advisors Mercer & Hole are delighted to announce the sponsorship of The Elneny Football Academy in Hatfield, Hertfordshire which has been set up by Arsenal defensive midfielder, Mohamed Elneny with the aim of developing the next generation of football stars and providing them with an opportunity to shine. Mercer & Hole’s sponsorship will go towards providing the players and coaches with much-needed kit.

The academy offers the chance to train with experienced coaches for children as young as five right through to 16-year-olds, to grow their skills and have a chance of playing football at the highest level.

Applications to join the academy can be made via https://elnenyfootballclub.com/our-academy

Mohamed Elneny joined Premier League club, Arsenal in 2016. He follows in the footsteps of players such as David Beckham, Wilfried Zaha and others who have established football academies in their own names. These academies provide opportunities for children who to progress their talent. England International Harry Kane trained at David Beckham’s football academy which demonstrates the high level and support and coaching available.

Maria Kelly, Mercer & Hole’s Marketing and Communications Director comments: “I am absolutely delighted that we are sponsoring the Elneny Football Academy. Supporting our local community and helping the younger generation get a develop in football, which might even lead to a successful career, is extremely important to us. As a firm, we believe in harnessing passion and talent, and this extends to the wider community.”

Mercer & Hole has 24 partners and over 250 employees across its offices in London, Milton Keynes, St Albans and Rickmansworth.

Accountancy & Accounts, Accounts and Accountancy, Business, Business Advice

ACCA calls on chancellor to deal with double whammy of frozen thresholds and weak growth

  • Additional people and businesses are being pulled into higher tax bands, adding to an already overburdened HMRC service
  • Frozen thresholds can result in companies not being as productive and instead capping their profit under thresholds to avoid taxation
  • UK economy remains weak, and small businesses are concerned about continuing inflation hitting their bottom line

 

In an open letter to the chancellor, leading global accountancy body ACCA highlights key concerns flagged by their 98,000 UK members, and what they want to see addressed in the Spring Budget on the 6th March 2024.

 

This includes concerns over the UK’s economic strength and attractiveness for investment, the impact of inflation on small businesses, and the continued freezing or reduction of allowances and thresholds, including personal allowances, PAYE and VAT thresholds, savings allowance and the dividend allowance.

 

Frozen allowances and thresholds are likely to add to an already stretched HMRC service by bringing more people into the tax net and increasing the workload of HMRC. As previously reported in 2023 by ACCA, 93% of financial professionals demanded drastic change from HMRC services, with more than half reporting that poor service from HMRC was affecting their clients and businesses as a result.

 

Combining an overwhelmed HMRC service with the impact it has on small businesses, agents and taxpayers and the weak UK economic positioning on the global stage, ACCA’s letter to the chancellor focuses on a call for practical action that promotes sustainable, long-term growth for businesses and individuals.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “The government should be as concerned as we are about the unintended consequences of frozen thresholds and additional complexity – allowance freezes can catch out many taxpayers. Many taxpayers end up overpaying or underpaying tax.

 

“Increasingly, the impact of the freezing of allowances look like an artificial barrier to growth as well as harming the UK’s position as a competitive place to do business on the global stage.”

 

ACCA points out that the VAT threshold is a particular area of concern for small and medium-sized enterprises (SMEs), especially in already troubled sectors. With inflation running so high over the last couple of years, any frozen threshold will bring more individuals and business into higher tax brackets – often for the first time – meaning they will have to register and file tax returns, creating more work for HMRC at a time when its service levels are buckling.

 

The ‘artificial barrier’ is created as companies can avoid going up a tax threshold by capping their profit and productivity just under that – ultimately slowing UK economic growth as a result. Without proper government incentivisation to grow and prosper, businesses will continue to stagnate – something reflected in the recent recession figures that were released.

 

Collins added: “The government should review the impact of tax thresholds and complexity on business growth with a particular focus on key sectors. Raising thresholds to be in line with inflation would allow people to be taxed more fairly, rather than having to introduce broad-brush tax cuts which when you look at the bigger picture, are cancelled out by the frozen thresholds.”

 

Visit ACCA’s website for more information.

 

Accountancy & Accounts, Events, Sustainability, Wales

ACCA celebrates St David’s Day with a focus on building on heritage for a sustainable future

National Day marked with business leaders hearing about sustainability and transformation

 

ACCA Cymru/Wales marked St David’s Day by bringing together the business community in Wales to celebrate the contribution commerce makes to the community and celebrate Wales’ national day.

 

Anne Jessopp, CEO of Llantrisant-based The Royal Mint told the 170-strong audience at a breakfast in Cardiff how a business founded in AD 886 is working hard to make sure it is around for another 1,100 years, transforming the business around its rich heritage.

 

While facing challenges – not least the continuing decline in coin usage – Jessopp set out for the audience of business professionals how The Royal Mint could harness its rich history to ensure it has a dynamic future. It is becoming a leader in reclaiming precious metals from electronic waste such as laptops and mobile phones.

 

With an annual revenue of £1.9 billion and customers in 120 countries, and an unrivalled expertise in precious metals, Jessopp talked about how she set about reinventing and transforming The Royal Mint.

 

The Royal Mint is committed to becoming a leader in sustainable precious metals. Later this year it will open a multi-million pound plant to recover gold from UK electronic waste. The pioneering facility will use patented chemistry to recover gold and other metals from circuit boards, generating hundreds of kilograms of precious metals per annum for The Royal Mint.

 

Jessopp said: “One of the ways we understand our purpose is the value we place on British crafts.  Our new business ventures not only contribute to our overall business success but also provide opportunities. We are moving our people into more sustainable skilled roles as well as nurturing new and diverse talent.”

 

Picking up on Anne Jessopp’s themes, ACCA Global Council member Helen Morgan spoke about the role that accountants play in supporting businesses and organisations of all sizes and in all sectors in challenging times.

 

As well as reflecting on key business issues the event heard about the unique work of the Sir Gareth Edwards cancer charity. The charity supports young people aged 15-35 who live in Wales, are receiving treatment for cancer and who are struggling financially.

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “It was a pleasure to hear from Anne Jessopp as she leads such an important Welsh-based organisation. Anne’s message about a clear vision, international trade, sustainability, skills and business transformation resonates with ACCA and all our members in Wales.

 

“We were delighted we worked on this event with our longstanding partners Menzies and University of South Wales. It was great to see so many guests. It is so important for the business community to come together to ensure we continue to work towards a prosperous future for Wales.”