Tag Archives: Accounting

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

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.

Commercial Property, Environment, News

Regional experts advise on another acquisition for RSK Group

Accountancy and legal experts from two North East leading businesses have helped RSK Group acquire Wigan based Ground Heat Installations Limited.

Ground Heat Installations is one of the UK’s largest providers of ground source heat pumps. It employs 15 staff and has worked on projects including Clifford Lamb Court, the first of its kind in Europe, Albion Towers and three further projects for Salix Homes.

Ground Heat’s knowledge and expertise in renewable energy heat pumps will complement RSK’s existing technical and drilling services.

RSK Group is the UK’s leading integrated environmental, engineering, and technical services consultancy.

Alan Ryder Chief Executive at RSK said “We believe that ground source heat will play a vital role in our drive to net-zero emissions and help bring an end to fuel poverty,”

He added. “We are delighted to welcome Ground Heat’s incredibly talented team on board. Although Covid-19 has taken over recent news, we must continue to focus on the impacts of climate change and ensure that organisations and communities are supported as we move towards a greener future.”

Dave Thompson, Ground Heat managing director, added: “Delivering heat to both domestic and commercial properties is a major contributor to greenhouse gas emissions and will undergo transformative change as we move to a low-carbon future.

“Ground source heating is an important part of the solution, so I am excited to be joining RSK, a business that shares our values to drive development in this sector.”

The vendors were advised by Steve Plaskitt and Graham Brown at MHA Tait Walker Corporate Finance and by Nigel Williams and Sean Jackson at Endeavour. The two professional services firms had previously teamed up alongside RSK Group following on from the sale of Geocore Site Investigations Limited to them in August last year.”

Steve Plaskitt, Corporate Finance Partner at MHA Tait Walker said “It was great to see a small innovative renewable energy company become part of a larger group which will allow it to provide its UK leading services throughout more of the country. It was also good to work alongside Endeavour again on our second deal together for RSK Group.’

Nigel Williams, Partner at Endeavour Partnership said: “We already knew how the RSK team work and we regularly work with MHA Tait Walker so this transaction was a genuine team effort. We were delighted to get this deal completed for our clients in these challenging times.”

FInance

Auditors are not to blame for corporate reporting failures

Trust in auditors has declined after a number of high-profile corporate reporting failures, however according to newly appointed professor Olof Bik from Nyenrode Business University, external auditors are not the only ones to blame.

According to Professor of Behavioral Research in Auditing, Olof Bik,

“We need to realize that auditors are human too and therefore there is no such thing as zero risk in conducting audit work. It is possible that these risks can never be fully addressed through regulation and professional intervention alone as these could even lead to unintended consequences.

“When the Dutch Authority for the Financial Markets (AFM) reports to have found issues in the audit files of 45% of the selected audits, small or large and irrespective of any real economic significance in financial reporting quality, the public narrative is that 45% of audits fail.

“The reality is that financial reporting quality – and therefore also financial reporting issues and failures – is a joint responsibility of at least a number of parties in the entire financial reporting and assurance supply chain.

“As a result, the auditing profession should dare to cross their own divide by choosing financial reporting quality as its compass for audit quality which is in line with the expectations stakeholders and society have of the auditor.

“In the case of financial reporting quality issue or failure, it also casts a slur on the work of the auditor – but the auditor would also have a better story to tell: the reality that financial reporting quality – and thus also financial reporting issues and failures – is a joint responsibility of at least a number of parties in the entire financial reporting and assurance supply chain. Not only: where was the auditor? But also, where was the accounting department of the audited company? Where was management? Where was the internal auditor? All parties have a role to play.”

The Foundation for Auditing Research, which is co-lead by Olof Bik, Jan Bouwens and Henriëtte Prast, is an example of a serious attempt to bridge science and practice in auditing research.

According to Olof Bik, telling the story of the financial-reporting-level definition of audit quality will enable the profession to paint the complete picture and tell it like it really is.

The research is published in CROSSING THE DIVIDE: BEHAVIORAL RESEARCH IN AUDITING.