Tag Archives: Accounting

Appointments, Finance and Banking, Finance News, News

Duo gain promotion in HURST’s tax team

Independent accounting and business advisory firm HURST has announced two promotions in its tax team.

Sam Ryan, who joined HURST in 2022, has been promoted to tax manager. He works with clients on a range of matters, including transactions, due diligence and restructuring.

Liza Whiley, who moved to HURST in 2021, has become an associate tax manager. She has a dual role, covering personal tax advisory and research and development.

HURST partner Liz Gallagher, head of the tax team, said: “Sam and Liza are integral to the success of our tax advisory department and have both contributed significantly to what will be our best-ever year.

“As a firm, it’s important that we recognise their hard work and dedication as they progress their tax careers with us.

“In addition to reflecting their individual contributions to the business, their promotions underline our commitment to helping colleagues actively develop their careers with us.

“On a personal level, I’m delighted that Sam and Liza have made these important career steps with HURST and I and look forward to working with them as we go forward to the next phase of our firm’s growth.”

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 tax team promotions follow a raft of recent promotions in HURST’s business services team. Four of those five individuals began their careers with the firm as trainees.

HURST is due to move its head office to a new flagship development in Stockport in the spring to accommodate its growing team.

The firm is taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

HURST is taking a 10-year lease and will occupy the entire fifth floor at the building. 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.

News

Grant Thornton grows Milton Keynes team with next generation of talent

Grant Thornton UK LLP has hired a raft of new starters this September, as the firm looks to invest in the future of its Milton Keynes team.   

23 graduates and school leavers have joined the leading business and financial advisory firm’s Milton Keynes office across a range of departments, including audit and tax.  

The new joiners have been welcomed from various stages of education including school leavers, university graduates and placement students.  

Nationally, Grant Thornton has more than doubled the number of trainees joining its school leaver apprenticeship programme, achieving a record 193 new recruits, up from 90 in 2021.  

The firm has also welcomed a record number across its broader trainee intake in 2022, with a combined 461 new graduates and school leavers joining across the country. 

Grant Thornton, which was named in the top 10 of the Department for Education’s Top 100 Apprenticeship Employers in 2022, aims to reach a 50:50 split in its trainee hire population between university graduates and those joining straight from school. 

Tim Taylor, Partner and Practice Leader at Grant Thornton UK LLP, said: “It’s been incredible to welcome so many new joiners to our Milton Keynes team. At Grant Thornton, we know that supporting the next generation is immeasurably value and that it’s vital for the future of our region and its businesses. For this reason, we work hard to create a culture that engages our graduates and school leavers to ensure that they are given every opportunity to fulfil their potential.  

 “It’s increasingly evident that apprenticeships provide a valuable and highly effective route for young people to become trusted business and financial advisors. They’re a great way to promote social mobility in our communities while simultaneously ensuring that there’s a pipeline of highly skilled and diverse talent in the East Midlands.” 

James Davie is an Audit Associate joining Grant Thornton’s Milton Keynes office on its school leaver programme having completed an extended diploma in business specialising in finance. James said: “It was Grant Thornton’s culture that attracted me to their school leaver programme and from day one, every single person has been really welcoming. The office is an open and sociable place to be, which is great because I am learning so much, talking to different people who come from different skill sets and areas of expertise.  

“I have always had a keen interest in audit and wanted to kick-start my career at a firm that nurtured young talent – and Grant Thornton has a really strong track record at doing just that!” 

News

HURST staff reach new heights to raise thousands for hospice

Intrepid staff at accounting and business advisory firm HURST have reached new heights to raise thousands of pounds for a Greater Manchester hospice.

HURST partner and director of practice development Simon Brownbill and Rebecca Leech, an associate in HURST’s business services team, led the way with sponsored tandem skydives from 15,000ft.

Meanwhile a team of 25 HURST colleagues completed the Yorkshire Three Peaks Challenge – scaling Pen-y-ghent, Whernside and Ingleborough in 12 hours.

Seven others undertook a cycle ride along the Tissington Trail in the Peak District, covering a total of 26 miles there and back, while a group of six took part in an open swim at Sale Water Park in Greater Manchester, clocking up 7km in total, followed by a 10km walk.

The endeavours mean HURST has now raised more than £13,000 for Willow Wood Hospice, which is based in Ashton-under-Lyne and provides care and support throughout Tameside and Glossop.

Willow Wood is HURST’s charity of the year for the second year in a row, as Covid impacted the firm’s fundraising ambitions in 2021.

Simon said: “Willow Wood does amazing work and our team was keen to help them out with some creative fundraising efforts.

“We’ve had groups of people doing some amazing things for the charity. I’d always wanted to try a skydive, and having the opportunity to do one for such a great cause was awesome.

“As well as raising money, we have supported Willow Wood directly, with a number of staff volunteering in its shop, distribution centre and at the hospice itself, and by the firm donating a number of computer monitors.”

Rebecca said: “I was inspired to do the skydive for Willow Wood as it was something I’d always wanted to do and I couldn’t think of a better reason to do it than to raise money for this lovely charity.

“I have a family friend whose mother was looked after at the hospice, and they have spoken so highly of the care that she received. It’s a very worthy cause to jump out of a plane for!”

The hospice provides care for people who have been diagnosed with a life-limiting illness. It has an 11-bed unit for palliative and end-of-life care. All of the rooms have en-suite facilities, a garden view and a private patio.

Willow Wood also provides holistic therapies, a dementia café, home support and bereavement support. It costs around £3m a year to run the hospice.

Mark Llewellin, vice-chair of Willow Wood’s board of trustees and its acting head of income generation, said: “Our sincere and grateful thanks go to the HURST team, who have pulled out all the stops to support Willow Wood this year.

“After voting for us as their charity of the year, they have not only volunteered in our shops, distribution centre and at the hospice itself, but have also raised thousands of pounds with their many and varied challenges.

“Their commitment has been fantastic and we are very proud to be associated with them. We wouldn’t be able to care for patients and their loved ones without supporters such as the team at HURST.”

News

Tax Systems Announces the Appointment of Bruce Martin as Chief Executive Officer

Tax Systems, the tax software supplier to accountancy firms and corporates, has announced the appointment of Bruce Martin to the role of CEO, post a 12-month succession planning programme. Martin joined Tax Systems as Chief Finance Officer in 2021 and was promoted to MD and CFO in February 2022. He now succeeds Gavin Lyons as CEO, who remains with the business as a strategic advisor and Board member.

In his role as MD, Martin has been instrumental to the business; delivering excellent financial results, overseeing the development of a new cloud platform as part of a strategic move to become a Software-as-a-Service (SaaS) provider, building out the senior management team and ensuring the business continues to deliver an exceptional customer experience.

Prior to joining Tax Systems, Martin was CFO/COO at Arrowpoint Advisory, an international mid-market M&A advisory firm. Before that, he was Head of FP&A and Operations at eFront. As he steps into the role of CEO, he will be replaced by Tax Systems’ Head of Finance, Adam Feigin, who is promoted to Group Finance Director. Feigin will also join the leadership team.

“Tax Systems is a special place to work. The large and expanding market opportunity, together with the impending launch of our new business model into a pure SaaS provider with a new to market, purpose-built platform, marks this out to be a very exciting journey,” commented Martin. “This transformation will cement our place as market leader in the UK and Ireland and will create the springboard for exciting future growth (plans of which are already underway). We pride ourselves in pushing the tax compliance industry to evolve with changing technology capability and doing our bit to reduce the well-documented tax gap. We have lots to do and I am eager to lead our team on this exciting journey!”

“Bruce has made a significant impact on the leadership team and our business since joining in 2021. We are delighted to appoint him at this key point in the Company’s evolution and we are confident he will lead us well during this period and beyond,” commented Mark Rogerson, Chairman of Tax Systems. “As a Board, we are extremely grateful to Gavin Lyons who has led the Business with considerable success as Co-Founder and CEO over the last six years and are truly delighted to be continuing to work with him and benefit from his support and guidance in the years ahead.”

News

Accounting firm HURST strengthens tax advisory team with two recruits

Accounting and business advisory firm HURST has strengthened its tax advisory team with two new recruits.

Chartered tax adviser Sam Ryan has joined HURST from Crowe UK as an associate tax manager. He will be using his expertise to advise clients on a range of matters, including transactions, group restructuring and succession planning.

HURST has also welcomed Joseph Bourke to its tax team as a graduate trainee. He recently graduated with an accounting and finance degree from Manchester Metropolitan University.

Liz Gallagher, head of HURST’s tax advisory team, said: “We are really pleased to welcome these two talented individuals to the firm and in particular to our tax department.

“Due to the rapid growth in our client base, both in terms of numbers and sophistication, we are experiencing an ever-increasing demand for high-quality taxation advice, and we are constantly on the lookout for new additions to our highly-experienced team.”

Joseph is the latest graduate to join HURST’s training programme, following the arrival earlier this year of Ewan Lawson, Tirath Panesar and Miles Redgrave as trainees in the business services department.

Meanwhile, Jack Skilton has joined the HURST Digital team on a full-time basis after being seconded from the business services team. He joined HURST in 2017 as a trainee chartered accountant.

HURST created its specialist digital team in 2018 to support companies in embracing technology to drive improved performance and efficiency. It is led by Jo Gibson, a partner in the firm’s business services team.

The digital team works with owner-managed companies across the UK to review their operations and implement bespoke digital strategies, including making better use of data, new business reporting methods and the integration and automation of processes. The team also helps businesses to meet the requirements of the government’s Making Tax Digital legislation.

HURST, which is celebrating its 40th anniversary this year, focuses on advising entrepreneurial owner-managed companies with turnover of £5m and above.

Clients including leading entrepreneurial businesses such as Kinaxia Logistics, M&I Materials, London Lash, Beechfield Brands, Duerr’s, Oliver Valves and Delamere Dairy.

Law, News, South East

Rising tax burden threatens South East growth

As businesses continue to focus on recovery from the pandemic and speculation on the contents of the forthcoming Autumn Budget continues, Grant Thornton UK LLP’s latest Business Outlook Tracker finds that one in three (31%) mid-market businesses believe the increased tax burden is a top threat to the growth of their business.

The survey of 605 mid-market businesses in October 2021 showed that the increased tax burden was considered as big a threat to the market as digital security and cyber risk.

Businesses have already been hit this year with the upcoming rise in corporation tax to 25%, announced in the March Budget, and the recent announcement of a rise in National Insurance from April 2022 to help fund the health and social care sectors.

With changing tax policy placing ever greater strain on business finances, the survey found that the policies the mid-market would most like to see introduced by government to support business growth are led by measures to improve infrastructure (32%) and incentives for employers to invest in skills attraction and development (31%).

Backing for low carbon business strategies (30%), measures to level up the UK economy with more devolved powers (30%) and simplification of UK business tax systems (30%) all scored highly.

John O’Mahony, the practice leader for Grant Thornton’s Gatwick team, which covers Surrey, Sussex and Kent, commented: “There is never a good time to raise taxes but businesses around the South East will fear that’s inevitable. I’m sure what the community wants to see is a careful balancing act from the Chancellor. UK Plc is currently batting a perfect storm of issues from supply chain disruption, rising tax burden, lack of talent, increasing energy prices and rising uncertainty as we move towards winter.

“To gain the confidence of UK businesses, the government will need to show that they are able to deliver a clear path to, not just recovery, but also growth. As our research shows, businesses have long favoured a simplified UK tax system but, as the tax burden grows, we are yet to see any progress in this area.”

With COP26 on the horizon and the publication of the government’s Net Zero Strategy this week, it’s encouraging to see that policies around low carbon business strategies are a priority for the mid-market. We know from previous research that only 51% of mid-sized businesses have a net zero carbon strategy in place. To shift the dial in this area and to engage the market effectively in taking action, policy setters need to share clearer guidance that helps businesses to integrate net zero strategies into their operations, ensures the mid-market has access to funds and projects, and consolidates relevant reporting frameworks and standards.

News

Family-owned businesses report their accounts more conservatively, reveal researchers

Family-owned businesses are much more conservative when it comes to their accounting reporting than non-family corporate organisations, potentially hindering their reported profitability, but also improving the company’s long-term reputation, according to new research from Durham University Business School.

The study also found that family firms with a founder CEO are more likely to report conservatively than those with a descendent CEO.

Conducted by Dr. Hwa-Hsien Gary Hsu, Associate Professor of Accounting at Durham University Business School, alongside colleagues from the National Central University and the National Pingtung University, the study was designed to better understand the impact that family ownership has on accounting conservatism, and whether or not this makes firms more cautious and understated in their accounting reporting.

The researchers reviewed accounting data from over 5,500 financial reports issued by family firms based in Taiwan, operating between 1996 and 2015. The level of accounting conservatism of these firms was assessed through four different measures; non-operating accruals averaged over three years, good news and bad news timeliness from firms, the sum of inventory, R&D, and advertising reserves, and the aggregate effect of individual conservatism measures.

The researchers suggest the reason that family firms are more conservative is likely due to family owners being highly motivated to maintain the firm’s long-term viability by protecting its image and reputation, therefore not overstating their accounting records.

Dr. Hsu says,

“Family owners’ incentives and motivations can have a huge impact on the choice of their accounting practices. Family firm owners have a greater, long-term attachment to their companies and therefore want the company to seen in the best light possible.

This non-economic motive can drive family owners to avoid the aggressive accounting practices typically employed by corporates as these could potentially cause long-term damage to their firm’s viability and reputation. Instead, they choose to utilise the monitoring effect of accounting conservatism for enhancing or preserving their reputational wealth.”

The results of this study reveal that positive reputational effects associated with high family ownership and the presence of a founder CEO can motivate family firms to adopt accounting practices that facilitate effective monitoring. As a result, Dr Hsu says, owners’ family identity and reputation in the capital markets and society are preserved, and external stakeholders are benefited, in turn.

However, the results show when family ownership is reinforced through the use of enhanced control mechanisms, a great sense of family control and influence can drive family owners to avoid increased monitoring by using less conservative accounting. This approach allows them to exploit valuable information at the expense of external stakeholders.

News

Nixon Williams creates new ‘margin-free umbrella employment’ package for contractors and freelancers

Nixon Williams, one of the UK’s leading providers of accountancy services, has announced the creation of a new, sought-after dual contracting solution that combines limited company and umbrella employment working styles

The new addition to their accountancy packages will enable contractors and freelancers to continue working through their own limited companies, with an option to transfer to an umbrella company set-up if a specific contract requires it.

The new offering is part of wider growth plans at Nixon Williams and has been set up ahead of the imminent off-payroll reforms, which come into play in April 2021.

A survey conducted by Nixon Williams last year found that more than 68 per cent of contractors were either ‘concerned’ or ‘very concerned’ about the possible impact of the off-payroll reforms, while 42 per cent believed they would need to utilise an umbrella company to continue working independently.

The same study also found that 30 per cent of contractors already operate with a mixed-set up; a statistic expected to increase once the off-payroll reforms are introduced.

Joanne Harris, technical commercial manager at Nixon Williams said: “It remains unclear exactly how the imminent off-payroll reforms will affect the contracting market, but we’re confident that many of our contractors and freelancers will need to consider umbrella employment solutions in the future, should they face status determination statements that deem them inside IR35 after April.

“Our new dual solution takes the pressure off contractors, who will be trying to find the best possible ways of working to ensure compliance and financial security. The ability to move from their personal service company (PSC) to an umbrella company, and back again, using one system is extremely desirable, especially in these challenging times.

“By eliminating the many administerial burdens that contractors could face if they want to work as both a limited company and an umbrella company contractor post-April, we have ensured that our contractors can benefit from an effortless transition. Our package takes the work away from them and is led by trusted, knowledgeable experts, so we’re confident it is exactly what our contractors and the wider contracting market needs right now.”

FInance, News

Wolters Kluwer Tax & Accounting UK Launches New Integration for Basecone

Basecone, the 100% cloud solution, launches latest Sage integration to meet the demand for real-time, automated data entry

London, UK, 18 November, 2020 – Wolters Kluwer Tax & Accounting UK has today announced the launch of a new Sage integration with Basecone, its cloud expense management app. The only real-time workflow app to feature Optical Recording Capture (OCR) for automating key bookkeeping processes such as invoice capture, processing, approving and booking of sales and purchase invoices, users can now integrate to the Basecone solution from Twinfield, Xero, and Sage.

Basecone was developed to handle digital documentation and receipt and invoice capture on the go; capturing and processing these documents for bookkeeping in place of what has traditionally been a manual, mundane, paper and time intensive task that can ultimately affect the profit margin on client services. Allowing practices to ’approve on the move,’ invoices can be easily uploaded to the Basecone solution with a real-time connection using a smartphone camera.

The new Sage integration, along with established Twinfield and Xero integrations, is secure and efficient, enabling users to process documents in real-time. The Basecone solution automatically recognises delivered invoices in these platforms and then makes a booking proposal that practices or their clients check and authorise.

A key strength of the Basecone solution, according to Phil Thornton, Lead Technology Product Manager, Wolters Kluwer Tax & Accounting UK, is the app’s end-to-end use of OCR, which can read invoices:” This cuts out the back office, human-based preparing and processing that occurs in other apps, and creates a true real-time document workflow environment. Without OCR this process can take anything up to 24 hours, but with the Basecone solution, companies can experience the power of what it’s like to work in real-time. Customers are reporting up to a 36% increase in time savings using the app, which is freeing up resources for higher value work.”

Basecone can snap copies of documents using smartphone cameras, or it can use a unique email address to receive documents into the app, which features both swipe and drag and drop functionality within its unified invoice approvals process. The pure cloud app also features facial recognition and touch ID.

“The app is incredibly easy to use. It’s basically a camera app – you simply snap and it’s done. It’s really efficient,” said Sam Batkin, Senior Accountant from Worcestershire-based accountancy firm Ormerod Rutter. “You don’t have to remember to retain physical receipts as you go about your day. That’s especially appealing to the next generation of business owners.”

Matt Crook, Managing Director Wolters Kluwer Tax & Accounting UK commented: “If 2020 has shown us anything, it’s that practices need to be able to set up to work not just more efficiently, but also in a way that supports remote working and collaboration. Our customers look to us when they need to be right. With Basecone, practices such as Ormerod Rutter, and many other customers, are taking full control over their document workflows and creating flawless booking processes, and moreover, they are operating in a more sustainable, resilient way, which is great to see in today’s rapidly changing services landscape.”

To learn more, please visit: https://www.wolterskluwer.com/en-gb/solutions/software-tax-accounting

COVID-19, FInance, News

Personal planning tips for business owners in light of the pandemic

One of the most commonly heard expressions at the moment is “it’s a strange world in which we live”. It certainly is, and so it is more important than ever to plan effectively. Here Andrew Moorby, Managing Partner of MHA Tait Walker and Head of the Teesside office has some personal planning tips for business owners.

For business the changes have been monumental, rapid and totally unexpected. The Government’s reaction to the problem has certainly helped with measures such as staff furloughing, tax deferrals, and the guaranteed loans – but these will have a limited life.

We are already seeing HMRC taking a much stricter stance on tax deferral requests. We now find ourselves trying to cope with getting back to work where we don’t know what the “new norm” will look like. Most analysts are predicting a V-shaped recovery.

This means that the issues will be significant but relatively short-lived. Clearly there will be some sectors where the recovery shape will differ or where the impacts are for a much longer period, but the predictions, for most us, are that we should plan for this V-shaped recovery.

If we assume that this is correct, what should we be doing or not now doing? The following are some issues to consider as part of your planning;

Cash is undoubtedly King.

Ensure you maintain forecasts showing what you need to survive, but also what you will need to take advantage of any upturn. Rapid growth will require significant working capital.
Remember to speak to your funders early so that you have the cash when it is needed. Make sure that any repayment plans, including deferred taxes, give you the headroom to expand. You should also make sure that you truly understand the nature of the current problems.

The downturn has been so abrupt that we have limited data to truly assess what is working and what isn’t. Many businesses are now coping with home working and flexible hours for the first time. What are the true impacts of this, how can it be made better, is it always the best solution? Take time to truly understand the data, don’t simply go with your gut reaction, and plan accordingly.

All change

The only thing we can be certain about at present is that things are going to change.
That’s why it’s important to ensure that you build an agile business that can deal with change and benefit from it. In particular, view your technology base to ensure it is fit for your future plans.

The redundancy word is inevitably rearing its ugly head as we approach the end of the furlough scheme. The obvious answer to many is to cut staff and therefore reduce headcount and cost. This may be the right answer for some, but don’t simply take the easy options.

Whilst on the face of it letting staff with less than two years’ service is the easy option, it is important to consider what the business really needs. Ensure that you retain those staff who can best help the business move forward and take advantage of the upturn. These may not be the people who have been with you the longest.
Consider alternative options. If you want to keep your entire team together but need to reduce costs, will the team agree to a temporary reduction in their salaries rather than having to make people redundant? That way your team is there and ready when the upturn comes.

In the last recession many firms laid off their trainees/apprentices or stopped taking on new ones. When the recession started to ease, however, they had insufficient experienced junior staff to take advantage of this. As stated above if, as expected, this is V-shaped recovery you may need those experienced junior staff relatively soon.

For several years now employers have highlighted, despite the stresses and strains placed on the economy from issues such as Brexit, that the key concern was their inability to recruit and retain sufficient quality staff to take their business forward. Again, take care that you don’t let good staff leave now only to find yourself short of quality people in the near future. Recruiting new staff can be a lot more expensive than retaining the good ones you already have.

Non income generating areas of a business may seem like easy targets. Areas such as marketing and HR play an essential role for successful businesses, particular those that want to grow, win new customers and look after their team.

Our staff are our key asset

They will be feeling uncertain and vulnerable, so no matter what you have to do make sure you communicate regularly and effectively. Now is the time to truly assess our future needs and to make some difficult decisions. The best management will balance future needs with current problems rather than simply taking the easy option.