Category Archives: Accountancy

Accountancy

ACCA’s response to small business strategy

Glenn Collins, head of technical and strategic engagement, ACCA, said: “ACCA applauds the government for acknowledging the vital contribution that small and medium sized business (SMBs) make to the UK economy. We look forward to seeing the detail in the new small business strategy.

 

“We also welcome that this recognition of the challenges facing small businesses is being backed up by action – action that ACCA and its members have been calling for loudly and consistently over many years.

 

“Late payment is a persistent problem that is crippling SMBs, so more robust action is warmly welcome. ACCA previously called for stronger powers for the Small Business Commissioner in addition to greater corporate responsibility for prompt payment. However, we recognise that this is a complex issue and further detailed discussions will be required to ensure new legislation is both practical and effective for businesses.

 

“Access to finance is a demonstrable barrier to growth and a source of constant frustration for growing enterprises. Therefore, boosting start-up loans looks like welcome news. We know as key advisers to small firms, our members will be working hard with the business community to access the finance they need at the time they need it. In particular, we welcome the Bank’s flagship Growth Guarantee Scheme, established in August 2022, which has been extended through the Spending Review period to 5 April 2030. This puts the scheme on a long-term footing and gives finance providers and smaller businesses certainty about its future. We know our members are integral to making sure that this scheme works as intended.

 

“At a time when our ongoing research shows business confidence is at a low ebb, we hope that this positive action to tackle longstanding barriers to small business growth will provide a much-needed boost of confidence.”

Accountancy, Accountancy & Accounts, Tech

AI is reshaping the work of accountants

AI will reshape the accountancy profession by changing how tasks are completed at all levels. Leading global accountancy body, ACCA (the Association of Chartered Certified Accountants) says that as AI becomes more commonplace, new responsibilities and tasks will emerge for finance teams as they focus on improving controls and specifying the desired information outcomes from machine use.

 

Accountants can thrive in an artificial intelligence-dominated workplace just as they have done in other tech revolutions

 

New roles are also expected to support activities ensuring AI systems remain accurate and compliant with professional standards and regulations.

 

ACCA’s latest AI Monitor report explores how the gradual integration of AI over coming years is likely to change how accountants work and deliver value from the automation of repetitive tasks to increased knowledge support for decision making. The report points out that while AI can help make processes more efficient, human intervention needs to be retained at critical junctures.

 

Ultimately, the integration of AI needs to reflect the fact that trust remains a fundamentally social concept built on human interaction, transparency, and oversight. And the future of accounting will involve navigating tensions between efficiency and human judgement, automation and control.

 

Alistair Brisbourne, head of technology research, ACCA, said: “Professionals who can embrace uncertainty, develop strong judgement skills, and continuously adapt their expertise will thrive even as specific tasks change or become automated.”

 

Brisbourne said: “It should be remembered that over the decades accountancy has prospered by its intelligent and enthusiastic adoption of the latest technology.”

 

The report sets out four key work trends that AI will drive for accountants:

  • A contraction in routine processing;
  • An expansion in strategic and advisory decision-making;
  • An evolution of mid-level roles to incorporate more judgement and client interaction; and
  • New responsibilities at the intersection of accounting, technology and strategy.

 

The future that is unfolding isn’t one where finance and accounting professionals are replaced – but one where their responsibilities will change. Success in this transition depends on making clear assessments of where AI will add value, establishing clear policies and governance in use, and the cultivation of skills that complement technical capabilities.

 

ACCA expects that coming years will see organisations develop more integrated workflows based on the principle that AI adoption is not just about distinguishing high versus low-value activities – but focusing on outcomes, quality and value.

 

Brisbourne said: “Only a minority of finance and accounting teams have implemented AI solutions – but these resources are widely available, and organisations are reviewing opportunities and workforce needs.

 

“AI adoption is expected to accelerate in coming years, especially as our data shows investment on AI initiatives is increasing, and widespread cloud adoption provides a crucial foundation for AI implementation.”

 

The profession is still in the invention and adoption stage of AI, as demonstrated by investment data and current adoption/usage statistics. And the profession is embracing the learning and employment challenge offered by AI as shown by the recently announced changes to the ACCA Qualification which embraces emerging advances in technology and sustainability.

 

The report adds that widescale use of a general-purpose technology, like AI, may take longer than anticipated.

 

Read How is AI reshaping finance and accounting work? https://stories.accaglobal.com/how-is-ai-reshaping-finance-and-accounting-work/index.html 

Accountancy, Accountancy & Accounts

ACCA announces redesign of qualification for a redefined accountancy profession

 

  • Future ACCA Qualification unveiled as employers look to accountants to take broader role in embracing AI-driven technology and driving sustainable business

 

Global accountancy body ACCA (the Association of Chartered Certified Accountants) has announced a redesign of its gold standard ACCA Qualification focused on a redefinition of accountancy which is expanding and reshaping the role of the profession.

 

The redesign reflects the increasing role of accountants in driving the widening value needed for business success, combining profitability with ethics, sustainability, the ability to leverage new technology and the agility to deal with economic volatility. Similar changes are being seen in the public sector.

 

Responding to and anticipating the evolving needs of employers, the changes build on the current strengths of the ACCA Qualification. They will introduce a more integrated learning and assessment experience, including AI-enhanced learning journeys, designed to equip the next generation with the professional skills and technical expertise they need to succeed in a dynamic and volatile world.

 

The announcement follows extensive consultation with members, employers and learning providers around the world, as well as representatives of Gen Z. The redesigned qualification will be introduced from mid-2027.

 

Helen Brand, chief executive of ACCA, said: “Accountancy is being redefined. Accountants are drivers of sustainable business, promoters of social value, and enablers of new technologies. They are sharpening their financial and ethical skills for a changed world of ever-shifting opportunities and challenges. They innovate with new business models and fresh thinking about what success looks like. They focus on people, planet and prosperity to create value for all.

 

“The changes we’re making will equip the next generation for this exciting new future that will bring wider and more varied opportunities.”

 

Employability is a key focus of the changes, which include the introduction of Employability Modules at each of the qualification’s three levels, providing simulated work experiences on topics such as digital tech, ethics, sustainability and business management.

 

Enhanced awards and designations recognise achievement and allow students to demonstrate their skills to employers at every stage of their ACCA journey.

Technology, sustainability and ethics, already integral to the ACCA Qualification, will be interwoven at every stage. Another innovation is a new Data Science Professional exam which students can choose as an option at the final ‘Strategic Professional’ level.

 

Abdul Goffar, director of ACCA UK, said: “The ACCA Qualification has always been the gold standard, globally recognised and highly valued by employers in the UK market. It will remain as rigorous, relevant, and future-focused as ever, with an even sharper focus on employability.

 

“The redesigned qualification comes together as a unified experience at each of its three levels with learning guidance and support, assessments, employability support, and help to develop skills.  Students will benefit from tailored learning journeys supported by AI technology and a digital mentor.”

 

ACCA has prepared a smooth transition for all students currently on, or about to start, their ACCA journey. Existing achievements will be recognised and there will be no disadvantage in terms of progression and the cost to complete the qualification.

 

ACCA students will continue to benefit from the opportunity to attain a world-leading academic qualification alongside their ACCA studies with the new BSc (Hons) Professional Accountancy collaboration with the University of London.

 

ACCA is known for its focus on inclusion and opportunity. A redesigned ‘Foundations’ route requiring no prior qualifications provides those not meeting the entry criteria for the ACCA Qualification with a way to meet it.

 

Find out more at accaglobal.com

Accountancy, Accountancy & Accounts

What could the LGPS triennial valuation mean for employers?

As at 31 March 2025, the Local Government Pension Scheme (LGPS) is undergoing its latest triennial funding valuation.

The LGPS, a defined benefit pension scheme, is one of the largest pension schemes in the UK with over 6 million members, 18,000 participating employers and four actuarial firms appointed to carry out valuations across over 80 different funds.

While each fund will see differences in their valuation results due later this year, pensions specialists at leading financial services consultancy Quantum Advisory have observed the direction of travel since the last valuation in 2022 and have identified key issues that are likely to affect LGPS participating employers in 2025 and beyond.

Stuart Price, Partner and Actuary at Quantum Advisory, said: “Since the last triennial valuation, it’s been an incredibly volatile period and the economic backdrop has shifted fundamentally in response to a number of events.

“In the UK we’ve seen four prime ministers, double digit inflation and a general election resulting in the first Labour government in 14 years, on top of the lingering effects of the pandemic and Brexit. Globally, conflicts have impacted supply chains, a new Trump administration in the US has introduced tariffs and there are a number of uncertainties in global markets. All of these elements feed into the backdrop against which the assets and liabilities of a pension scheme are assessed.

“Despite these major changes, we would expect funding improvements across most LGPS funds and that almost all LGPS funds will be in surplus on an ongoing funding basis. For employers looking to potentially exit the LGPS, their exit funding position has likely never been better due to the current high interest rate environment we are in.

“Even if exit from the LGPS is not on the immediate horizon, employers should take steps now to review their strategy to make sure they are comfortable with the risks they are running by maintaining membership. However, membership of the LGPS can be a key staff retention tool and, given contribution rates are likely to fall from April 2026, membership of the LGPS will be more affordable than it has been for a long time.

“If we have learned one lesson from the last three years, it’s that nothing is certain and situations can change rapidly. With a new party in government, we can see plans for policy changing already and at pace.

“The ‘Fit for the Future’ consultation for the LGPS closed in January this year and covered three main themes – the pooling of assets, local investment, and governance of funds and pools – with proposals going further and faster than previous ones. Additionally, the Employment Rights Bill, which could affect employees’ terms and conditions in relation to exiting the LGPS, is likely to become law at some point in 2026. It will be interesting to see the impact of these over the coming years.”

Accountancy, AI

S&W adopts Dayshape to enhance project visibility and drive greater career ownership

S&W, one of the fastest-growing UK accountancy firms and previously the Professional Services arm of Evelyn Partners, selects Dayshape’s AI-powered resource management software.

Dayshape, a software company using AI technology to power professional services planning, welcomes S&W as a valued customer. After recent organic and acquisition growth within Evelyn Partners, newly formed S&W selects Dayshape to provide vital visibility into project performance and empower practitioners to drive their own careers. S&W has around 1,800  employees and 120 partners located across 15 towns and cities in the UK and Ireland.

Matt Cockett, CEO of Dayshape, shared:

“As we went through the process of selling and delivering for S&W our relationship has gone from strength to strength, built on trust and a shared vision for growing the business. We see this as just the beginning. By adopting Dayshape for its audit team and working closely together, we’re laying the foundation for S&W truly optimise the company for the next phase of market leadership.”Russell Girling, Head of Audit Resourcing at S&W, shared: “Dayshape gives us unmatched resource visibility which is critical for us in terms of business decisions now and as we grow our audit team in the future.”

Notably, S&W will benefit from Dayshape’s real-time project financials to provide crucial visibility into mid-project performance. Further, Dayshape’s reports and dashboards allow S&W to easily pull reports— taking minutes rather than days—to analyze past, present, and future financial performance on key aspects such as margin and revenue.

Russell added: “Visibility into mid-project financials is fundamental to our ambitions as a firm.  It enables the Resource Management function to drive productive conversations with Engagement teams over team size/structures of their team and the impact on their engagement economics. Dayshape has allowed us to review from a central perspective those engagements and make a difference even in such a short space of time.”

With the ability to update their skills and preferences in Dayshape, S&W employees will automatically be considered for opportunities that match their profiles and availability with Dayshape’s AI scheduling. The benefits of which are threefold as it cuts down admin for the resourcing team, encourages career ownership for practitioners, and ultimately optimizes the firm’s workforce.

 

Russell added: “I’m super passionate about our people having the ability to influence and drive their careers and Dayshape gives people the ability to do that. Plus, it provides us with insights into which skills are in demand and we can use that to inform our future hiring decisions as well as the development opportunities for our people.”

 

Mark Bishop, Head of Audit at S&W states that “with the introduction of Dayshape even in such a short space of time we have been able to transform our resourcing function into one that is far more operational and strategically focused and not just perceived as a back-office admin focused function. I firsthand have seen the benefits Dayshape’s intuitive economics dashboard can bring at an engagement level along with elevated levels of reporting and I am excited at the opportunities it will present for both our people and the business as we aim to grow in the coming years.”