Tag Archives: ACCA Cymru

Accountancy & Accounts, FInance, Finance and Banking, Politics

Accountants praise government for promising action – but more still to be done

  • In the first 100 days the government has taken some positive steps but significant barriers to economic growth and increased productivity remain
  • Proposals to late payments, corporate governance regulation, and local authority audit backlog all welcomed as announcements

 

As Keir Starmer’s Labour party celebrates 100 days in office, global accountancy body ACCA (the Association of Chartered Certified Accountants) calls on the UK government to stay focused on the key priorities to boost economic performance and business growth, and to be clear on this vision to boost optimism.

 

Just over three months since Labour’s decisive victory at the 5 July General Election, ACCA is encouraging the new government to stick to its priorities of putting economic growth at the heart of its agenda for the country.

 

Glenn Collins, head of technical and strategic engagement at ACCA UK, said: “We have seen some encouraging signs that the new government’s Treasury and business team understand the worries of the business sector and the concerns that we hear consistently from our 100,000 UK based members.

 

“We want them to build on the foundations that they have set out and we will continue to hold them to account.”

 

ACCA reports that members support the government’s emphasis on growing the economy, and ACCA welcomes moves over the first 100 days including:

 

  • Action on late payment which ACCA has consistently called out as a blight on the growth prospects of small business.
  • The appointment of a government minister as chair of HMRC board. ACCA hopes James Murray’s appointment will result in further investment in HMRC and strengthen delivery, particular around HMRC service levels which continue to be a major drag on business effectiveness.

 

  • The King’s speech announcement of long promised regulation on corporate governance including placing the planned new regulator, the Audit, Reporting and Governance Authority (ARGA), on a statutory footing and setting out clear expectations and accountability for boards, management and auditors.

Lloyd Powell, head of ACCA Cymru/Wales added: “The government needs to build on progress to date and to build confidence. Business confidence is low with many highlighting uncertainty and challenges in their day-to-day work. We feel the government has a critical month ahead to provide to business insight on industrial strategy at the upcoming International Investment Summit, and to see this clarified further at the Autumn Budget.”

 

Visit ACCA’s website for more information.

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

New diploma from ACCA sets the global standard sustainability in finance

  • The qualification has been developed in response to the demand for skills and training in sustainable finance.
  • ACCA has worked with global regulators on their requirements for sustainability auditors, and the new professional diploma has been designed to meet their needs.

 

In response to growing demand from businesses and professional accountants, ACCA has launched a pioneering Professional Diploma in Sustainability, designed for finance professionals at all levels who are looking to gain a comprehensive understanding of sustainability and accreditation to prove it.

Businesses often lack the essential skills to support the move to more sustainable business models and urgently need the skills to consider non-financial as well as financial business drivers, according to research by ACCA.

The professional diploma brings together high-quality learning support and assessment, aligning with the increasing demand from employers, as well as individuals, wishing to pursue the widening career opportunities related to sustainability, and emerging regulatory requirements around the world.

ACCA has been working closely with regulators globally on their requirements for sustainability auditors and this new professional diploma has been designed to meet their needs. Once completed, the professional diploma provides a comprehensive accreditation in the core areas of sustainability.

This leading-edge qualification builds on the increasing number of sustainability learning opportunities ACCA has added to its portfolio in recent years, as well as the addition of more sustainability content into the ACCA Qualification.

The Professional Diploma in Sustainability consists of a comprehensive, integrated learning programme, in-depth knowledge, a revision kit, and a three-hour exam. Offering over 60 hours of learning and practice across four certificates and one exam, learners will gain in-depth knowledge of sustainability frameworks and ethics, sustainability strategy and management, sustainability reporting and sustainability assurance.

Helen Brand, chief executive of ACCA, said: “The expertise of accounting and finance professionals in driving sustainable approaches to business is absolutely essential if we are to make the progress the planet so desperately needs.

“With their central role working in and for countless businesses and organisations across the world, professional accountants are well placed to play a key role in shaping the future we need. This new qualification is designed to help meet that increasing need and recognises that success is not now just about profits, but about sustainability and social value too.”

Lloyd Powell, head of ACCA Cymru/ Wales noted: “Sustainable organisations that create long-term value for society will be the bedrock of our future economy – and professional accountants will be at the heart of these organisations. This specialist diploma will support them as they drive positive business change and support the Welsh economy.”

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Business, FInance, Finance and Banking

ACCA welcomes government action on late payment

Government action on late payment has been welcomed by leading accountancy body ACCA.

 

The announcement by Jonathan Reynolds, Secretary of State for Business and Trade, of a new Fair Payment Code to replace the Prompt Payment Code is the first step in the right direction.

 

Glenn Collins, head of technical and strategic engagement at ACCA, said: “We are pleased to see this move by the government today. ACCA has been a consistent and vocal supporter of the need to ensure small businesses are paid on time and have clear knowledge of the payment practices of who they are doing business with. It is a great first step but there will be more work to do. We look forward to participating in the consultation on the proposed new laws.

 

“Late payment and unfair practices continues to blight small businesses across the UK. We have long called for urgent implementation of proposed improvements to tackle late payment problems, including expansion of prompt payment reporting and the proposed expansion of powers for the Small Business Commissioner (SBC).  We are glad that some initiatives are now being taken.”

 

Lloyd Powell, head of ACCA Cymru/Wales, added: “Small businesses account for more than 99% of businesses in Wales. It is vital that they are able to get paid on time, as cashflow drying up can be a serious problem for them, more so than larger businesses.

 

“We are pleased that the SBC has been given extra powers to tackle some of the defaulters under the old code, however we will be calling for additional reforms to provide more transparency in this area.

 

“Clearly this is voluntary, but we urge Welsh businesses across the supply chain to see how they can sign up to this enhanced code and work together to eradicate the scourge of late payment.”

 

Based on the insight from members over the last two decades, ACCA is clear that late payment is a persistent problem in the UK. Poor payment practices have a domino effect throughout supply chains, with severe consequences for cashflow and the survival of SMEs. To rectify this situation, strong action – including a decisive culture shift – is required.

Accountancy & Accounts

ACCA Cymru/Wales on the King’s Speech

Lloyd Powell, head of ACCA Cymru/Wales, said:

 

“ACCA welcomes the King’s Speech and its positive focus on growth and the importance of stability in economic policy.

 

“However, with so many Bills for parliament to consider, it will be important for government to think small first, ensuring that legislative changes consider the implications for the smallest businesses. The Government should focus on getting the framework right so that businesses can plan and invest to generate growth.

 

“We welcome the commitment to establish a new Council of the Nations and Regions to renew opportunities for the Prime Minister, heads of devolved governments and mayors of combined authorities to collaborate and to bring economic opportunities to all parts of the UK.

 

“Although there are announcements that will affect Wales, such as the opportunities from Great British Energy and potential investments following pension reforms, we now face a further period of uncertainty as the new First Minister is selected, and we hope that this period of tumult will not result in Wales missing out on opportunities arising from announcements and initiatives from the new UK Government.”

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

Over 50% of SMEs say resisting bribery and corruption results in lost business opportunities

  • New research shows 59% of SMEs believe that standing up to bribery and corruption will result in lost business opportunities.
  • However, 67% of UK respondents agree a strong anti-bribery policy boosts customer confidence.
  • 68% of UK respondents say stringent anti-corruption guidelines increase the likelihood of large contracts with big businesses and public sector bodies.

 

A new report from the Association of Chartered Certified Accountants (ACCA), Bribery and corruption: The hidden social evil on your doorstep, delves into the true extent of how bribery and corruption impact small and medium sized enterprises (SMEs) across the world, highlighting the pressing need for enhanced transparency and robust regulatory frameworks.

 

The research shows a high prevalence and deep concern about the damaging impact of bribery and corruption on SMEs, with more than half (59%) of SMEs and their advisers believing that standing up to bribery and corruption will cost them business trade or opportunities. The UK appeared more relaxed, with 46% thinking taking a stand would cost them.

 

Yet the survey also reveals a strong understanding of the benefits of standing up to bribery and corruption. 77% of global respondents, and 67% of UK respondents, agree that having a strong anti-bribery policy boosts customer confidence in their business. Furthermore, 68% globally and 68% in the UK say it increases their chances of getting lucrative contracts with big businesses and public sector bodies.

 

Jason Piper, ACCA’s head of tax and business law, said: “Corruption is a poison; it distorts markets, stunts economic growth, and deters investment.

 

“Many very small businesses don’t have the bargaining power to refuse when small bribes are demanded of them. Entrepreneurs have to choose between paying the bribe or losing the business – and often that is no choice at all for someone trying to support a family.

 

“Our report aims to arm businesses and regulators with the necessary insights and tools to root out corruption and foster an environment of transparency and trust. This could include the use of the latest digital tools. Just as technology is being used by criminals, so regulators and enforcement agencies should embrace it in the battle to detect, prevent and respond to them.”

 

Drawing from a broad spectrum of global data, expert opinions, and real-world case studies, the report explores the multifaceted impacts of corrupt practices on SMEs and economic development. It highlights the severe consequences that businesses can face, including legal penalties and damage to their reputations.

 

The report also considers the effectiveness of current anti-corruption laws and policies across different countries, suggesting that while some progress has been made, much remains to be done to align international efforts.

 

Piper added: “As global markets become increasingly interconnected, the imperative for accountability and ethical business practices becomes more pronounced.”

 

Lloyd Powell, head of ACCA Cymru/Wales, added: “The threat of bribery and corruption is something that businesses across Wales face on a daily basis. The fact our members are reporting improved prosperity through having anti-corruption policies in place is a good start, but there is more we can do to help them moving forward. How best to address modern-day corruption can be confusing, but we hope our latest report will provide some clear advice on how members can identify and prevent such activity.”

 

ACCA hopes this report will serve as a catalyst for change, encouraging entities across all sectors to evaluate their practices and align with the best standards of business conduct. The report is recommended for business leaders, policymakers, and regulatory bodies worldwide committed to uprooting corruption and fostering a fairer business environment.

 

The full report can be accessed here.

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Business, Business Advice, 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

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

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, 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.”