Category Archives: Accountancy

Accountancy, Business, Economy & Jobs News, Sustainability

Women are key to the success of the green transition

On International Women’s Day, ACCA underlines the need to address gender inequality in sustainability  

 

Women have a crucial role to play in the green economy. But leading global accountancy body ACCA (the Association of Chartered Certified Accountants) is concerned that women are in danger of being left behind in the green transition. On International Women’s Day (IWD), ACCA is calling on governments, policymakers and employers to make a reality of the 2024 UN IWD theme ‘Invest in women: accelerate progress.’ 

 

ACCA highlights that 80% of people displaced by climate change are women, and women are fourteen times more likely to die in climate emergencies than men. And UN data shows how women led households lose 8% more income to heat-stress than male led households. 

 

Emmeline Skelton, head of sustainability, ACCA, said: “Women work extensively in sectors such as agriculture where they are disproportionately exposed to climate-related events. On the other hand, they are underrepresented in sectors that are benefitting from the transition to net zero such as construction, utilities and manufacturing. This imbalance needs to be urgently addressed.” 

 

ACCA is working on this inequality through its focus on gender responsive budgeting (GRB), which measures impacts of gender inequality and mitigates them through targeted policies and budgets.  

 

Jessica Bingham, regional lead, policy & insights – EEMA and UK, is looking at how this can help investment in women. She said: “Gender responsive budgeting can help to identify and address differences by allocating resources to help resilience building. Women often leave the workplace to fulfil unpaid caring responsibilities. In many areas of the globe, work and employment issues are exacerbated by climate change where women have limited access to resources, loss of livelihood and food insecurity.”  

 

The accountancy profession is not immune to these issues. Women leave the profession at a much higher rate than men. In large accountancy firms, estimates suggest around 60% of the graduate intake are women, but that figures falls to an estimated 20%-30% at manager level.  

 

ACCA is providing education through initiatives such as workshops on the EU’s Corporate Sustainability Reporting Directive (CSRD). ACCA is working specifically with public sector finance professionals to understand how gender responsive budgeting could be used to address the widening gender gap.  

 

Finance professionals have a vital role in the transition to net zero. ACCA research reveals that CFOs believe the finance function has a key role to play in business moving towards a sustainable business model creating long-term value. For instance, by grasping upskilling opportunities the finance profession can become the guardians of ESG (environmental, social and governance) corporate data.  

 

Skelton said: “In order to make progress we need to look at these issues from a holistic perspective. That is why ACCA supports the UN Sustainability Development Goals (SDGs) addressing gender, poverty and inequality. 

 

“The good news on IWD is the more I research this area the more I’m convinced women can create wonderful opportunities for themselves and for the rest of society in the green economy.” 

 

Watch here to see Emmeline and Jessica discuss green transition. 

Read ACCA’s transition report,
Accountancy, Appointments, Business, FInance, News from Wales, Wales

Quantum Advisory promotes Simon Hubbard to Principal Consultant in Cardiff

Quantum Advisory, the leading independent financial services consultancy, today announced the promotion of Simon Hubbard to the role of principal consultant. Simon, who is based in the firm’s head office in Cardiff, took up the role from 1 January 2024.

Joanne Eynon, partner, commented: “Our success as a firm depends on the quality of our people and we are pleased to be able to recognise their achievements and support them as their career evolves. This promotion is a demonstration of how we grow our talent from within the firm, and throughout the region.

“Simon has proved himself to be an invaluable member of our team and this promotion is well deserved.”

 

Simon added: “Since joining Quantum I have been pleased to support our clients in all aspects of their journey. I look forward to now also lending my expertise to the strategic leadership of the firm as a whole. We are an ambitious firm with grand plans and to lead the actuarial team in Cardiff will be extremely satisfying.”

Simon joined Quantum in 2016 and sits on Quantum’s risk transfer team, helping to manage client projects and working with major insurers to track market prices and market sentiment.

He has over fifteen years of experience delivering trustee and corporate consulting advice including valuation negotiations, benefit change projects, company pensions accounting and member option exercises.

He is also a member of Quantum’s Defined Benefit Strategy Group and assists with the development of Quantum’s in-house actuarial models.

Simon is currently Scheme Actuary to a number of pension schemes.

For more information on Quantum Advisory, visit www.quantumadvisory.co.uk

Accountancy, Appointments, Tax

Kilsby Williams appoints directors in new year promotions

Tax and accountancy specialist Kilsby Williams has announced a trio of senior level promotions to start the new year.

The Newport-based business, which is the largest independent firm in the region, has promoted three employees to director roles within its tax and business services teams.

Lucy Creese and Kaye Morris have been promoted to director in the tax team, while Zak Wright has been promoted to director in the business services team.

Lucy and Kaye are both experienced corporation tax and company tax specialists, regularly undertaking compliance and tax planning work for a variety of clients including SMEs.

Zak has qualified as a Chartered Accountant since joining the firm nine years ago and has honed his skills in the provision of statutory financial audits, accounts and due diligence work.

The newly promoted directors will lead a growing team at Kilsby Williams, delivering astute accountancy, business and tax advice and identifying key planning opportunities for a diverse range of clients.

Simon Tee, managing partner at Kilsby Williams, said: “We are delighted to announce these senior promotions as we start the new year.

“We firmly believe in supporting the professional development of our employees and rewarding their hard work. With their technical expertise and dedication to providing the best possible service for our clients, Lucy, Kaye and Zak have all made a significant contribution to our firm’s success. I look forward to seeing them thrive in their new roles.”

Established in 1991, Kilsby Williams works with clients from across south Wales, the Midlands and London, ranging from sole traders to companies in international quoted groups.

Accountancy, Business, Business News

Quantum Advisory secure £9m full scheme buy-in for Birmingham Chamber of Commerce with Just Group

Quantum Advisory, the leading independent financial services consultancy, has brokered a £9m full scheme buy-in with Just Group for the Birmingham Chamber of Commerce Pension Fund. The transaction provides improved benefit security to around 100 pensioners and 40 deferred members and opens a new chapter for the sponsoring employer, Birmingham Chamber of Commerce & Industry, who can now concentrate their resource on commercial activities for the benefit of businesses in the surrounding area.

After much work and due diligence, Trustee Corporation Limited (acting as Sole Trustee) signed terms with Just Group towards the end of last year, a significant step towards full scheme buy-out where all members’ benefits will be secured with, and paid by, Just Group for the lifetime of the Fund.

The lead transaction adviser, investment adviser and Scheme Actuary are Quantum Advisory and the Trustee legal adviser for the buy-out project is Gateley. The longstanding Trustee of the Fund is Trustee Corporation Limited, represented by Vivien Cockerill.

Adam Cottrell, lead transaction advisor at Quantum Advisory, said: “To complete a £9m transaction so seamlessly at an extremely busy time for the market was very satisfying. Knowing how this enhanced level of pension security will benefit members over the long term, at a time when everyone’s finances are so stretched, also makes this a particularly rewarding end to a successful project. The Trustee and the Chamber put their trust in us to make the right moves, at speed, at key stages of the transaction, something which is so often critical in getting this size of deal over the line.”

Joanne Eynon, partner and scheme actuary at Quantum Advisory, said: “We have worked diligently with the Trustee and Chamber since 2010 and so it was very fulfilling for us to see them achieve their long-term strategic objective as planned, providing additional security for Fund members and a new chapter for the Chamber. We are very proud to have helped them reach this key milestone on their journey to buy-out.”

Vivien Cockerill, trustee director at Trustee Corporation Limited, said: “The Chamber of Commerce and the trustees, including Trustee Corporation Limited, identified buy-out as their long-term aim many years ago. Trustee Corporation Limited moved to become the sole trustee more recently and the team is delighted to have achieved the important step of a full buy-in significantly more quickly than expected. The careful planning and good teamwork with the Chamber and the advisers in implementation have worked well.”

Helen Bates, chief financial officer at Birmingham Chamber of Commerce & Industry, said: “Birmingham Chamber of Commerce & Industry is pleased to secure its members’ benefits following the sale of its premises in 2020 and significant investment in the fund. The Chamber has worked closely with the trustee of the scheme Trustee Corporation Limited and scheme actuary Quantum Advisory to secure the future of the fund, and we can now focus on our mission to connect, support and grow businesses in Greater Birmingham.”

 

Rosie Mills, senior business development analyst, Just Group, said: “We completed this transaction in such a short timeframe, and in a particularly busy market – which illustrates that there’s a vibrant bulk annuity market for schemes of all sizes. We’re very pleased to have helped secure the future benefits of 140 members and assist the Trustee on its journey towards buy-out, while freeing the Birmingham Chamber of Commerce and Industry to focus their resources on commercial activity in their local area.”

 

Accountancy, Climate, FInance, Wales

Global accountancy body in net zero first as profession steps up drive for sustainable future

ACCA (the Association of Chartered Certified Accountants) has become the first global professional accountancy body to have its net zero targets verified by the Science-Based Targets initiative.

 

The achievement highlights ACCA’s commitment to a sustainable future and is part of its larger focus on equipping and upskilling the accountancy profession across the world to drive the changes needed in businesses and organisations to achieve this.

 

Helen Brand, chief executive of ACCA, said: “The SBTi applies independent testing to net zero targets in line with climate science, and we’re delighted that it has recognised our approach and targets. It’s a great step forward on our journey to net zero.

 

“The accountancy profession has a critical role to play in driving good business decisions and best practice that will create more sustainable businesses and a better, greener future for all.

 

“We’re working hard to drive this transition through our 773,000 members and future members in 181 countries and our work to influence policymakers. And it’s important that we apply best practice in our own operations.”

 

ACCA is targeting a 50% reduction in carbon emissions by 2030 and net zero by 2045, using science-based best practice.

 

The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets. It brings together experts to provide organisations with independent assessment and validation of targets.

 

Find out more about the role of accountants in sustainability.

Accountancy, Business, FInance

DIVERSITY AND INCLUSION CRITICAL TO TACKLING FINANCIAL TALENT SHORTAGE

  • 64% of UK finance professionals prioritise diversity and inclusivity when choosing an employer.
  • A further 76% of Gen Z employees rate diversity and inclusivity as one of their top factors when job hunting.
  • 46% of Gen Z believe their organisation focuses more on things like gender diversity than other important areas such as neurodiversity.

 

Almost two thirds (64%) of UK finance professionals rated diversity and inclusivity as a key factor when choosing an organisation to work for, as revealed in new survey data.

This wake-up call for employers comes in the biggest global talent survey across the accountancy profession, conducted by ACCA (the Association of Chartered Certified Accountants). Its latest annual Global Talent Trends Survey 2024 provides a unique and vital view of how people feel about their life at work in the financial sector.

While diversity and inclusion (DE&I) strategies are nothing new, they have risen in importance amongst financial talent when it comes to choosing a place to work – putting the pressure on employers to deliver DE&I policies in order to attract and retain the best talent.

The newest generation of talent, Gen Z, are more likely to put DE&I at the forefront of their job search, with 76% of this age group rating it as a key factor in their choice of organisation. ACCA’s research is backed up by a wealth of studies which show Gen Z is more principled than their older counterparts, and working in a diverse and inclusive environment matters more to them than salary.[1]

As attracting and retaining talent for the future becomes more important to companies, understanding what employees really value from employers is becoming critical to not just know, but to implement and put into action.

With an ongoing cost of living crisis, it’s no surprise that 50% of UK finance professionals are planning to ask for a pay rise within the next 12 months. A further 49% believe that the best way to secure a pay rise is to leave their current organisation. And with 54% of finance professionals expecting their next career move to be external to their current organisation, employers need to embrace this insight and take steps to retain talent.

Without the shoring up of other workplace factors like diversity and inclusion, hybrid working models and mental health support, ACCA believes there is a real risk that employers could face a move of half of their current workforce in the next 12 months.

 

Jamie Lyon, global head of skills, sectors, technology at ACCA, said: “The shortage of talent and cost of meeting pay rise demands, together with the many job opportunities available to professional accountants, mean that attracting and retaining talent presents a huge ongoing challenge for employers. So, it’s unsurprising that the number of respondents planning to move away from their organisations remains high, at 54% again this year.

“However, with 64% of respondents saying that a strong diversity and inclusion culture is a key factor in choosing an employer, there’s a real opportunity for employers who are strong in this area to differentiate themselves in a competitive market.”

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “The latest Global Talent Trends report shed interesting light on the situation around the world and at home here in the UK. Hybrid work was a trend that emerged from roundtables with Welsh ACCA members in particular.

“Whilst diversity and inclusion has emerged as a trend in the overall data, in Wales our roundtable sessions put the spotlight on hybrid work. Speaking to ACCA Wales members, there has been a recognition that certain tasks, especially those involving collaboration, are better carried out in the office, rather than remotely. Less experienced staff, including trainees, can learn more by spending at least a proportion of their time in the office. Of course, there are virtual ways of collaborating and supporting trainees and more recent recruits at a distance, but this was certainly the view expressed by many Welsh participants.

“Finding ways to support employers in implementing effective DE&I strategies, attracting and retaining diverse talent, supporting effective working patterns, and remaining competitive from a salary and job opportunities perspective is something ACCA will continue to support members with through education and policy outreach.”

 

Visit ACCA’s website for more information.

View the full Global Talent Trends report here.

[1] Deloitte research

Accountancy, FInance, Finance and Banking, Wales

ACCA welcomes proposals to strengthen auditor reporting requirements on breaches of law and regulations

  • ACCA backs FRC proposals to allow auditors to focus on laws and regulations that are most likely to have a material impact on the financial statements.

 

ACCA (the Association of Chartered Certified Accountants) is backing FRC proposals to enhance auditor quality and foster users’ confidence in financial statements.

 

The FRC – the UK’s accounting regulator – is proposing enhancements to existing requirements. This would strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations, and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators.

 

The FRC says updating ISA (UK) 250 and ISA (UK) 2X0 will enhance the usability and informativeness of the audit and provide greater assurance to users of financial statements that potential material misstatements have been properly assessed by the auditor.

 

Jessica Bingham, policy and insights lead, (EEMA & UK), ACCA, said: “Enhanced requirements for auditors to consider and address relevant laws and regulations will promote transparency and accountability, ultimately bolstering investor and stakeholder confidence.”

 

ACCA welcomes FRC’s acknowledgement that auditor’s responsibilities cannot be open-ended in terms of identifying and determining compliance with all laws and regulations relating to the entity.

 

To assist, the FRC is introducing a more robust risk assessment process. This will help auditors identify those laws and regulations that have, or may potentially have, a material effect on the financial statements.

 

However, Bingham adds: “ACCA asks that the FRC carefully consider the risk that in practice the impact of the updated requirements could be to shift workload from management to the auditor.”

 

The FRC is proposing switching from a procedural approach to an outcome-based approach, using risk focused assessment for the identification and assessment of relevant laws and regulations.

 

ACCA says this gives flexibility and discretion to auditors, allowing them to exercise comprehensive professional judgement to identify the likelihood and materiality of misstatements.

 

While acknowledging resource issues, ACCA is calling for ISA (UK) 2X0 to apply eventually to listed entities as well as public interest entities.

 

Bingham said: “We recognise the need to avoid burdening those with limited resources but believe that the proposed application material for ISA (UK) 2X0 appears to be a valuable asset for auditors, offering practical guidance on identifying and addressing suspicions of non-compliance.”

 

The revised ISA is set to come into effect for audits of financial statements for periods commencing on or after 15 December 2024.

 

Visit ACCA’s website for more information.

Accountancy, Accountancy & Accounts, FInance, Finance and Banking, Finance News, Wales

58% of SMEs cite rising costs as top concern for 2024 in new research

  • Challenges in talent acquisition, cost management, and ESG reporting emerge as the three top hurdles for SMEs in 2024.

New research from ACCA (the Association of Chartered Certified Accountants) highlights the pressing challenges and strategic innovation opportunities for small and medium-sized enterprises (SMEs).

The study, SMEs: Business challenges and strategic innovation opportunities, reveals three main challenges: escalating costs, workforce and talent management, and the evolving ESG (Environmental, Social, and Governance) reporting agenda.

Aleksandra Zaronina-Kirillova, head of SME at ACCA, says: “As we enter the new year, SMEs are grappling with a wide spectrum of challenges, but our findings are also a clarion call for SMEs to embrace strategic innovation. By addressing these challenges head-on, SMEs can unlock new growth avenues and strengthen their market position.”

The report emphasises the need for tailored strategies that can help SMEs navigate the evolving business landscape successfully, including embracing innovation, optimising resource management, and staying ahead of regulatory changes.

Key findings include:

  • Cost pressures and the economy: SMEs face significant increases in utility prices and supplies, with 58% of businesses highlighting higher costs as their top concern. A quarter of respondents said utility prices had surged by over 20%. This significant challenge underscores the need for effective cost management and innovative financial strategies.
  • Workforce and talent management: The study revealed a notable rise in job vacancies and challenges in filling specific roles. Increased job vacancies for professional workers were reported by 31% of businesses, and 14% were unable to find suitable candidates for clerical workers, technicians, and service and sales workers. This calls for a renewed focus on talent acquisition, skill development, and retention strategies.
  • SMEs and the ESG agenda: Nearly 50% of SMEs are now required to provide ESG information, highlighting the growing importance of sustainable practices. However, the report identifies a gap in the ability to generate and manage this data, presenting both a challenge and an opportunity for SMEs. Less than 45% of those surveyed said they had received training in how to effectively collect ESG data, leading to a lack of universal framework and metrics for reporting.

Zaronina-Kirillova added: “In these testing times, SMEs must pivot towards innovative strategies to navigate the complexities of cost pressures, talent retention, and sustainable practices. Our research not only identifies the critical hurdles but also offers a roadmap for SMEs to emerge stronger and more agile.”

The roadmap within the report recommends the adoption of digital technologies, enabling SMEs to streamline operations, reduce costs, and enhance productivity. It also emphasises the importance of embracing sustainable practices, not only as a regulatory compliance measure, but also as a strategic move to attract new business and customers.

It also encourages SMEs to develop and retain top talent through continuous learning and development opportunities.

In this rapidly evolving landscape, the role of accountants, especially those in small and medium-sized practices (SMPs) can be pivotal. Accountants are not just financial stewards but strategic advisers who can guide SMEs through complex challenges such as managing rising operational costs, navigating new regulatory requirements, and implementing effective ESG practices.

Accountants’ expertise in financial management and strategic planning is crucial for SMEs to optimise resources, identify cost-saving opportunities, and ensure compliance with evolving regulations.

To access the full report please visit ACCA’s website.

Accountancy, Business, Environment, Sustainability

European Commission urged to improve stringency of SFDR classifications to fight greenwashing

  • ACCA and CISI call for European Union regulations to be more effective in promoting sustainable finance.
  • Greenwashing rules are a potential barrier to entry and improvements are recommended to drive meaningful investment.

 

In a response to the European Commission’s Targeted Consultation Document: Implementation of the Sustainable Finance Disclosures Regulation (SFDR), ACCA (the Association of Chartered Certified Accountants) and CISI (the Chartered Institute for Securities & Investment) say that the European Commission (EC) has an opportunity to influence wider global regulations including SEC greenwashing rules, using the lessons learnt from the SFDR and other jurisdictions’ regulatory successes in this space.

ACCA and CISI say that to ensure effective regulation, the SFDR needs greater guidance and clarification. The response was informed by the two bodies’ policy positions, sustainability focused engagement across the EU and UK, and roundtable discussion.

Jessica Bingham, policy and insights lead, (EEMA & UK), ACCA, said: “We recognise that SFDR has driven increased transparency for investors, enabling them to make informed decisions based on the sustainability practices of asset managers and the environmental, social, and governance (ESG) characteristics of investments.

“It has led to greater accountability for asset managers and a stronger emphasis on ESG integration in investment decision-making processes. As we shift to genuine impact investment, asset managers are now recognising the value of impact investing as a means to fulfil their fiduciary duty to investors, while also contributing to societal and environmental progress.”

However, adhering to the SFDR’s extensive disclosure requirements can be costly for asset managers, as it requires gathering and analysing vast amounts of ESG data, developing and implementing new reporting systems, and training staff on the regulation’s intricacies. This can put a strain on asset managers’ budgets and limit their resources for other critical initiatives. In some scenarios this has led to sustainability being the first area to cut.

George Littlejohn, CISI senior adviser, said: “ACCA and CISI question the extent of positive impact that the SFDR’s mandatory disclosure requirements have had. We believe that in many ways the nature of the regulation has hindered some firms as opposed to inspiring better practice and investment.

“Despite its positive impacts, the Sustainable Finance Disclosure Regulation (SFDR) has also been met with some criticism and concerns.”

The SFDR relies on the availability of high-quality, consistent ESG data to effectively inform investor decision-making and evaluate asset managers’ sustainability practices. However, the current state of ESG data is often fragmented, inconsistent, and lacking standardised definitions. This can make it difficult for asset managers to accurately assess their ESG exposure and report on their performance.

ACCA and CISI acknowledge that this will improve over time, and the introduction of the Corporate Sustainability Reporting Directive will assist in taking significant strides in the right direction. However, there will continue to be a heavy reliance on estimates and challenges will remain in gathering, measuring and analysing non-financial data. This translates across the non-financial reporting sphere and both ACCA and CISI recognise their role in assisting their members through this transition to ensure relevant capacity building and upskilling.

The current SFDR has been a first move in establishing criteria to combat greenwashing. However, it is not at present fulfilling its potential to be effective in promoting sustainable finance. ACCA and CISI urged the EC to consider steps such as:

 

  • Adopt a transition-focused approach to the SFDR.
  • Introduce more labels for different types of sustainable investments.
  • Phase in the implementation of the SFDR over time.
  • Create more flexibility in the SFDR.
  • Reassess the hierarchy of the labels.
  • Move beyond climate-focused sustainability.

 

This could enable a more sustainable financial system that aligns with the Paris Agreement and the Sustainable Development Goals.

Visit ACCA’s website for more information.

 

Accountancy, Business, Wales News

Welsh Accountants Bevan Buckland LLP Ranks in the Top 50+50 Accountancy Firms 2023

 Wales-based accountancy, tax and financial planning specialists, Bevan Buckland LLP, has been listed in the Top 50+50 Accountancy Firms 2023 rankings. The rankings, released on 24th November 2023, evaluate firms based on their total UK fee income for the last financial year.

The Top 50+50 Accountancy Firms rankings are an annual assessment of the top accounting firms in the UK. Bevan Buckland LLP’s rise in position from #99 in 2022 to #98 reflects the firm’s standing in the industry and its growth over the past year.

As the only independent Welsh firm listed, Bevan Buckland LLP emphasises its commitment to providing professional services to local businesses and individuals throughout Wales.

Gus Williams, CEO at Bevan Buckland LLP, said: “We are very pleased to be ranked in the Top 50+50 Accountancy Firms 2023; this reflects our staff’s dedication to providing quality service to all our clients. This achievement is significant as we are the only independent Welsh firm on the list.
Businesses are demanding more from their accountants, and we have built up a strong reputation in providing complex tax advice and are the leading auditors for SMEs and not-for-profit organisations. We have also seen a significant increase in the number of business sales, acquisitions and MBOs we are undertaking.

We are proud to continue investing in our team, building the skills and experience of Welsh talent and promoting local jobs; this has been reflected in the many internal promotions in recent years and the success of our training academy for school and university leavers.

Above all, we are proud to support the local Welsh economy.”

The Top 50+50 Accountancy Firms 2023 rankings serve as a benchmark for industry performance. Bevan Buckland LLP’s inclusion reaffirms its position as a notable player in the UK’s financial landscape.

Bevan Buckland LLP is Wales’s largest independent accountancy firm with over 100 staff and five offices: Swansea, Carmarthen, Pembroke Dock, Haverfordwest and Cowbridge. The firm provides practical support and strategic accounting, tax and financial planning advice for small to medium-sized businesses, and its feature in the Top 50+50 Accountancy Firms 2023 highlights its dedication to serving the local community and contributing to the economic success of Wales.

 

For more information, go to www.bevanbuckland.co.uk or call 01792 410100.