Accountancy Magazine 2017

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ACCOUNTANCY MAGAZINE Sponsored by

l A Career in accountancy

l Cyber security — a challenge for accountants

l Accounting in the cloud

l Part-time finance directors

Fortune favours the bold Lord Karan Bilimoria

ACA at the helm!

Inderneel Singh Managing Director, May Fair Hotel London

March 2017

An initiative by

Your ambition...

Taking a career journey with limitless possibilities.

There are many ways to qualify as an ICAEW Chartered Accountant.

Find out about the range of school leaver and graduate routes offered by employers.

Choose the one that suits you and achieve more as a chartered accountant.

icaew.com/careers

A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION 5671_ICAEW_Print_Ads_Employer_2015_A4_v10_Original_AWK_Standard_Profile.indd 11

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Accountants

Spoilt for choice

very industry and every area of society depends on the knowledge and expertise of accountants. They define, shape and deliver solutions to complex problems, issues and ideas that affect every area of our lives. Consequently, people who work in this sector are hugely important in developing and shaping the future of our society.

Today's accountants work in diverse fields and have incredibly varied choices. It has been rightly said that accountants are spoilt for choice.

The negative stereotype of an accountant as a solitary male, passive, a bean counter with little social skills has also changed. The modern accountant is on the front line, playing a key role in the strategic development of a business. Women too are better represented in the profession than they were a few years ago.

We now live in a digital world, and technology has come to present fresh challenges to the profession. As in every area of life, change is a constant and the profession is at risk if it fails to adapt to disruptive technological trends. At the same time, with change comes opportunity for those willing to wholeheartedly embrace it. It is worth noting here that accountants do come with qualities that cannot be automated, such as people skills, negotiation, persuasion, leadership and judgement.

A career in accountancy can be very rewarding and take you anywhere in the world and very often it can fast-track you to the boardroom. It probably will count as one of the top three career choices for UK's South Asian community. However, at the boardroom level ethnic diversity is not what it should be despite the available talent. In November last year, a report in the Guardian stated that the proportion of non-whites on UK FTSE 100 boards was currently at about 8%, compared with 14% of the overall population in the UK. It also published in the same report led by Sir John Parker, chairman of mining giant Anglo American, that every company listed on the FTSE 100 should have at least one non-white director by 2021. For FTSE 250 companies, it stated, that the deadline should be 2024. This is a welcome suggestion and one that can only make the profession richer.

With the winds of change blowing across the Indian economic landscape, UK businesses are proactively looking east. Accountancy professionals of South Asian origin can play a key role here given their extensive knowledge of industry and culture, of both the UK and India. I believe that this is gaining momentum given the growing presence of UK's South Asians in trade bodies and delegations.

I am once again delighted that the Institute of Chartered Accountants in England and Wales, a world leading professional body, has come forward to support our endeavour to promote the accountancy profession.

CB Patel Publisher/ Editor Asian Voice & Gujarat Samachar

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President's Message There is no such thing as a typical ICAEW Chartered Accountant. We recognise that all our members are different, all special. With ICAEW, you will be joining a community of over 147,000 other members in more than 155 countries, so you will be able to find advice and support all over the world. You’ll be well placed to pursue the most interesting and rewarding opportunities at every stage of your career and recognised as one of the world’s top finance professionals.

Chartered accountants are recognised around the world as leaders in accountancy, finance and business. You’ll find them working in all sectors – from large multinational organisations and global accountancy firms, to local charities and business start-ups. They’re the ones making commercial decisions that affect the strategy, direction and profitability of organisations all around the world.

At ICAEW we aim to give our members an edge in a profession that is at the heart of business and our global economy. We do this as a chartered body acting with integrity, objectivity and for the public benefit – which we believe is best for the long-term interests of the profession and for society generally. We’ve also sought to widen access to the career, through developing the ICAEW Higher Apprenticeship in collaboration with our employers, who also offer school leaver and graduate programmes.

Aspiring to becoming a chartered accountant was the best career decision I made. I’ve had a meaningful and rewarding career, and you can too. The ACA qualification gives you a passport that will take you wherever you want to go.

Hilary Lindsay President 4

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Hilary Lindsay President, ICAEW

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A career in accountancy

There aren’t many careers as diverse as accountancy. It offers limitless possibilities; opportunity for international travel, a competitive salary and job security. Read on to find out some of the many benefits of becoming an ICAEW Chartered Accountant.

Why choose a career in chartered accountancy?

Chartered accountants can find themselves working in a variety of sectors or organisations. If you’re looking for a career where you can train in business, practice, banking or the public sector, then accountancy could be the profession for you: once qualified, chartered accountants can be found working in high level jobs all around the world.

As a chartered accountant every day is different; you could work across various specialisms, including consulting, corporate finance and forensic accounting.

Plus, holding a globally recognised qualification means the opportunity for international travel and rewarding salaries are just two of the benefits open to ICAEW Chartered Accountants.

Excellent study support and training

A major benefit of the ACA, is that you are paid an attractive salary and given full support by your employer while training. You complete a training agreement, enabling you to learn while in full-time employment, combining practical work experience with studying and exams. The qualification is often paid for by your employer and you’ll be given study leave to help you revise for the modules before sitting exams.

Work experience will be challenging and you will be given a

lot of responsibility early on.

Preparing accounts, meeting external clients, leading teams, travelling, as well as managing people – are all situations you will experience throughout your training. The decision of where to train is all down to personal preference, depending on size and type of the organisation, location and which service line interests you if you choose to train in professional services.

Life as a qualified chartered accountant

Once qualified, you will be invited to become an ICAEW member, and use the letters ACA after your name. ICAEW members work in all fields of business and finance, including taxation, forensic accounting, financial and general management. Some are involved in public practice work, others work in industry and some are employed by government bodies or charitable organisations. Because a chartered accountants are valuable to all organisations, it means you will have the opportunity to shape your career in line with your interests and aspirations – wherever in the world you want your career to take you.

Career destinations

Chartered accountants work at the highest levels of business and finance. You could: • manage your own businesses; • become a Director of a blue chip company;

• hold a management position within a financial service organisation; • become Partner of an accountancy practice; • be a Finance Manager of a leading charity; • become a Financial Controller of a professional football club; • be the Chief Executive of a FTSE 100 company; EARNING POTENTIAL Globally, their average salary plus bonus 0-2 years post qualification is £49.9k.

OPPORTUNITY They work with organisations of all shapes and sizes and across a wide variety of sectors and industries.

SECURITY 97% of the world’s 100 global leading brands and 100% of the best global green brands employ ICAEW Chartered Accountants.

FLEXIBILITY You don’t need a business or financial degree to become an ICAEW Chartered Accountant; all degrees are welcome.

A GLOBAL CAREER ICAEW’s chartered accountancy qualification, the ACA, is recognised around the world. In fact our members work in over 154 countries worldwide and ICAEW is a founding partner of Chartered Accountants Worldwide (CAW).

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What do chartered accountants do?

ICAEW Chartered Accountants are recognised around the world as being highly qualified professionals. They are known for their ability to deliver the highest professional standards, wherever they work, however large or small the challenge. Because of their skills and expertise, chartered accountants are often found at the heart of business. They are the ones making decisions that affect the strategy, direction and success of organisations around the world.

Chartered accountancy involves more interaction with people than you may think. While technical knowledge is vital, it’s also about being able to understand key business challenges; solving problems, finding answers, analysing information and interpreting facts and figures to make business recommendations. You’ll need to be able to communicate your expertise to colleagues, managers and clients.

As an ICAEW Chartered Accountant, you can work across a diverse range of specialist financial areas including reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency.

Depending on the area of accountancy you choose to specialise in, typical tasks could include: • Continuous management of financial systems and budgets.

• Undertaking financial audits: an independent check of a company’s financial position.

• Liaising with clients to provide financial information and advice.

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What does it mean to be ‘chartered’

Whether you’re an accountant, engineer or surveyor, being ‘chartered’ means you’re at the top of your profession. You will be a highly qualified professional and a member of a professional body with a royal charter, such as ICAEW and will be able to have the letters ACA after your name.

To become a successful ICAEW Chartered Accountant, you will need to complete our globally recognised chartered accountancy qualification, the ACA. Specifically designed to make sure you develop all the skills and expertise you’ll need throughout your career, the ACA combines work with study, giving you the opportunity to earn a salary while studying for a globally recognised qualification.

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Areas of work Chartered accountants are valuable to all organisations and you will have the flexibility to shape your career to suit your interests and career aspirations.

The ACA is an internationally recognised qualification. You can train for the ACA in various countries around the world and many careers in chartered accountancy come with international travel and worldwide prospects.

As an ICAEW Chartered Accountant you will find yourself at the heart of business. You will be making decisions that affect the strategy, direction and profitability of organisations around the world.

Imagine a career where you can investigate fraudulent activity and deliver your findings as an expert witness in court? Or a career that gives you the opportunity to make a real difference, through ensuring that it has the funds to deliver its charitable work? Sounds interesting? With a range of industries and sectors to work in, a career in chartered accountancy really does offer limitless and exciting opportunities.

PROFESSIONAL SERVICES AND PUBLIC PRACTICE

Varying in size, type and location, accountancy practices offer their clients a range of services including audit, business advisory, consultancy, forensic, insolvency and tax advice. Working in this sector, you’ll get a real insight into how businesses operate and will experience the range of issues and opportunities they face on a regular basis. This sector offers great flexibility and progression for ICAEW Chartered Accountants. You can choose to either specialise or move between business areas to get a broad range of experience.

BUSINESS AND FINANCIAL SERVICES

Whether it is a large global organisation or a small business, working in this sector means that you will experience the full process of financial management and reporting. You will also develop an understanding of IT, marketing, sales and operations.

It can be a highly competitive environment with rapidly-changing risks and constant demands for innovation. As your career progresses, you’ll become involved in making strategic decisions to drive the business forward, creating plans and leading change for business success.

CHARITY AND NOT-FOR-PROFIT

Would you like to use your skills to make an impact on society? Then consider working in the charity and not-for-profit sector. Organisations in this sector need to carefully manage scarce resources and ICAEW Chartered Accountants working in them get involved in a range of activities. These can include working for a charity in a management accounting role, managing budgets, financial systems and liaising with budget holders and trustees to manage the needs of the organisation. Or it could be working for a charity specialist auditing firm, delivering high quality audit work, systems reviews and consultancies into the needs of charity clients.

PUBLIC SECTOR

ICAEW Chartered Accountants in this sector manage, distribute and invest finances in public services such as health, education, housing, emergency and local authority services. They are constantly challenged to reduce expenditure and improve efficiency to ensure value for money. They are also in charge of holding government departments to account by monitoring spending.

By working in this sector you’ll be responsible for making sure that public money is being spent properly for the benefit of the nation. You’ll be helping local communities and changing people’s lives, while leading a successful and satisfying career.

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Becoming an ICAEW Chartered Accountant Successful chartered accountants need the right mix of knowledge, skills and on-the-job experience.

To follow in the footsteps of our members and become an ICAEW Chartered Accountant, you will need to complete our globally-recognised ACA qualification. The ACA has four integrated components that have been carefully designed to build on each other. This means that you will develop the skills and expertise you need as you progress through the qualification.

PROFESSIONAL DEVELOPMENT

Professional development is an essential part of ACA training. It prepares you to successfully handle a variety of situations that you will come across throughout your career. The skills framework is made up of seven ladders, each containing seven or eight steps that represent a particular skill. Skills include: communication, team working, decision making, consideration, adding value, problem solving and technical competence.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethics is more than just knowing the rules around confidentiality, integrity and objectivity. It is about being able to identify an ethical dilemma, understand the impact and behave appropriately.

Ethics is an essential part of the accountancy profession. We integrate ethics throughout the ACA qualification to develop your ethical capabilities.

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3-5 YEARS’ PRACTICAL WORK EXPERIENCE

Practical work experience is a key component of ACA training. You will need to gain and show evidence of at least 450 days of work experience, which must be completed as part of a training agreement with one of our 3,500+ authorised employers around the world. The agreement is separate to your employment contract and details the commitment both you and your employer have to you achieving the ACA qualification.

While you can start the ACA qualification on your own, securing an ACA training agreement with an authorised employer will mean you receive the highest standard of training and support from the start. Your employer will guide you through your ACA training and you’ll benefit from six-monthly reviews. These regular reviews will give you the chance to discuss your progress through all components of ACA training with your employer.

Once completed, you will record your practical experience in your online training file.

ACCOUNTANCY, FINANCE AND BUSINESS MODULES

The ACA modules cover a wide range of subjects, to enable you to develop a broad understanding across accountancy, finance and business. They progress over three levels and are designed to complement the practical experience, professional development and ethical learning you gain throughout your ACA training. This means that you’ll be able to apply theory in the workplace right from the start.

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Routes into the profession

You can become a chartered accountant from a variety of entry routes.

You don’t need a degree to train as a chartered accountant. In fact, you don’t have to have studied A-level Maths. You can enter the profession through school leaver programmes such as the Higher Apprenticeship, the ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB) and the AAT-ACA Fast Track. For those wishing to go to university there are employer partnership degrees available or you can study your favourite subject and apply for a training agreement following your graduation.

School Leaver Programmes and Higher Apprenticeships

There are a range of options available if you want to become an ICAEW Chartered Accountant once you’ve left school or college. We recommend you start by looking for a school leaver programme with an ICAEW authorised employer. Many employers ask you to start your professional training with a qualification such as the Higher Apprenticeship or the ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB).

School leaver programmes typically last three to five years and combine on-the-job learning with ACA training.

AAT-ACA Fast Track

The AAT-ACA Fast Track is an alternative to the Higher Apprenticeship and ICAEW CFAB school leaver programmes. It allows you to progress towards ‘chartered’ status after starting your journey with AAT’s Accounting Qualification.

Once you have successfully completed AAT’s Level 4 Diploma in Accounting, you can start the ACA qualification building on the fundamental knowledge gained through the AAT. This approach means that you may be able to complete both qualifications in as little as four years after finishing school or college.

Employer Partnership Degrees

We have a number of partnerships with employers and universities designed to combine a university degree with real-life experience of the workplace.

These programmes combine accountancy and finance degrees, with time spent in the workplace on internships and placements. Each programme is different in structure, but each one allows you to count the knowledge, skills and experience gained during your degree towards the ACA qualification.

Graduate Programmes

ICAEW Chartered Accountants come from a wide variety of degree disciplines. Because successful businesses and organisations need people with varied backgrounds, interests and knowledge, you can train to become a chartered accountant whatever your degree background. If you choose to study for an accountancy, finance or businessrelated undergraduate degree you may be eligible to apply for exam credit towards the ACA qualification too. Programmes typically last three years and combine on-the-job learning with ACA training.

What grades do I need?

ICAEW’s entry requirements relate to your school, college or other relevant qualifications and full details can be found at icaew.com/careers. While employers are looking for applicants with a good academic history, employability skills are just as important. Check your chosen employer’s website for their specific requirements before you apply.

You can start the ACA as an independent student, but we recommend you secure a training agreement with an authorised employer as soon as you can. ICAEW authorised employers must meet strict standards to train ACA students, meaning you’ll benefit from a first-rate employer who is committed to giving you support and guidance throughout your training. Securing a training agreement early on also means that, not only will you gain a world-leading qualification, you’ll be paid a competitive salary while training too!

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Employability skills Recruiters look for a broad range of personal skills, not just academic ability. This means being good with people (particularly clients), at ease with numbers and interested in the way an organisation’s financial matters impact on performance. Employers are looking for candidates to possess the following skills:

PEOPLE SKILLS

Great chartered accountants are able to communicate complex financial information and advice to colleagues, managers and clients in an easy to understand way.

Improve your people skills by putting yourself into situations that requires lots of interaction with people from a wide range of backgrounds, abilities and cultures. Volunteering and part time jobs will help. It will give you access to people from different generations, levels and experiences.

PROFESSIONALISM

Chartered accountants are highly respected for behaving professionally and conducting business ethically at all times.

Presenting a professional image doesn’t mean sacrificing your own personality. It means you should always be aware of how your behaviour may be viewed by others and ensuring you always take the best course of action for both yourself and your employer.

Show an employer how professional you are by highlighting how you prepare in advance. If you are a member of a group, tell an employer how you acted when new people joined. Did you welcome them and show them the best the group had to offer? This is all about displaying respect for authority and those around you.

TEAM WORKING

Knowing when to operate as a team member or a team leader is vital, as is the ability to support and motivate others to achieve common goals.

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Demonstrate your team working skills by using examples from any societies or teams you are part of.

Make sure you explain why your team was successful and highlight your contribution to that. Always try to point out any actions you took that resulted in the overall success for the team.

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COMMERCIAL AWARENESS

By being commercially aware, chartered accountants are able to think creatively about problems to identify solutions and give their organisation the competitive edge.

Having an understanding of an employer’s business will show them that you have a grasp of their market place. Demonstrating knowledge of an employer’s competitors helps to give you an understanding of the challenges they come up against. It will make you better equipped to make decisions for them.

IT SKILLS

Chartered accountants have well rounded technical skills, keep up-to-date with technology and are able to use it to solve problems and develop strategic advice. Even for entry level jobs employers will expect applicants to be computer literate. This is one area where first impressions count. The majority of employers now take online applications so the first example they will see of your IT skills will be your application or CV.

DECISION MAKING AND PROBLEM SOLVING

Being able to research, collate, analyse and interpret data from a range of sources helps chartered accountants to make sound, ethical business decisions.

Problem solving is all about using logic, as well as imagination, to make sense of your situation and come up with an intelligent solution. Make sure you explain how you rectified the mistake and what you would do differently in the future.

The most important thing when it comes to communicating your problem solving ability is how your present the problem and the actions you took.

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Accountancy - in the family ‘...with the ACA qualification from ICAEW, the world is your oyster’

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ccountancy was the family business, but luckily I had no pressure to join, and found my own way there. I did a law degree at LSE and took an accountancy module, got a first in it and realised how much more I enjoyed numbers.

I got an internship at Deloitte in Birmingham and had the time of my life. I met some fantastic people and made some lifelong friends. I knew that was where I wanted to be.

Training to become a chartered accountant was the hardest thing I have ever had to do. I often joke that when I got my 2:1 at University I ran around the house screaming. When I passed my accountancy exams, I collapsed on the sofa! It’s competitive but brings out the best in you. The learning never stops. You have to stay on your toes, especially when running a smaller firm.

With the ACA qualification, the world is your oyster. Most of my friends moved to industry and are thriving there. I decided to join the family firm and enjoyed a couple of years of having my evenings to myself. But this didn’t last long – being a natural networker I started to make my mark in the city and the path to being the youngest ever President of the Asian Business Chamber of Commerce opened up. It’s a position of great responsibility and

prestige and we have enjoyed some of our most successful years.

I was also appointed to the board of the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) and am the director responsible for Business support in the GBS LEP area. The LEP is the most senior board in the region and was responsible for the creation of over 40,000 jobs in 2015. We are currently in the process of putting together an economic plan for the region and will be at the heart of the conversation.

My involvement with so many different things means that there is no such thing as a ‘normal’ day anymore! I sit on more than 12 boards around Birmingham, as well as running the family business. I can easily start around 7am for a breakfast meeting, have a jam-packed day of meetings with clients and then be racing home to put on my tux for a black tie evening.

One of my career highlights was being in Deloitte Financial Services Audit when the credit crunch happened. Overnight the world changed. A lot of people were relying on us, and the commitment of my team members was second to none. It was a privilege to work with such talented people.

Now I am a director at Younis Bhatti & Co, a family firm specialising in the SME market in the West Midlands. We have

Saqib Bhatti Director Younis Bhatti & Co. grown year on year as a firm, mostly through word of mouth.

If you are considering accountancy, my advice would be to do it! Once you have the ACA, nobody can take it from you. I have friends who work all over the world, and in any industry you can think of. You will need to work hard, but it will be worth it.

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Boldness in Business

Fortune favours the bold An excerpt from the speech delivered

by Lord Karan Bilimoria CBE, co-founder and Chairman of Cobra Beer, for the Bristol Distinguished Address Series, University for the West of England.

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any years ago there were two young boys – two brothers in a remote village in Kerala, Southern India.

The older brother got a place in the school and the younger brother didn’t. The younger brother would follow the older brother, walk the six kilometres to the school which was a hut, sit outside the classroom window and the older brother would pass the textbooks to the younger brother and that was the only way the younger brother could learn. He eventually got a place in the school and did very well. He got a scholarship to the London School of Economics. It took his family one year to raise money for his clothing – they were so poor – just to get to England. He did brilliantly at the LSE, joined the Indian Foreign Service, rose through the ranks, headed the Indian Foreign Service and eventually became the first Dalit (who used to be referred to as untouchables) President of India. He was President K R Narayanan who I had the privilege of knowing. That story tells you that anyone can get to anywhere.

Evolution of Cobra beer

When we first started no one gave us a chance – not even my family.

My very concerned father advised me to become a banker. Of course, once Cobra succeeded, he was my biggest fan.

Our mission was to brew the 12

Asian Voice & Gujarat Samachar - 2017

finest ever Indian beer and make it a century, Grolsch just celebrated its global beer brand, and 400th anniversary, I had never sold a Kronenberg started in Success is not a bottle of beer in my 1664. life. It was against all Michael Porter of destination, it is a the odds. Kingfisher Harvard Business journey – a very had been in the UK school said, “Before bumpy, rocky eight years before we you enter a market, had started. They had you are meant to journey, with lots of draft beer in 3,000 carry out a five-force ups and downs. outlets before we market entry started, Carlsberg was analysis.” If I had in just about every outlet. Beer done that I would have failed every brands in the UK are household one of those tests; I shouldn’t even names – many of them not less than have started. And that is the thing 100 years old. Stella Artois – 14th with most entrepreneurial journeys

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– most people say, “You don’t stand a chance.” The textbooks will tell you that you don’t stand a chance. I learnt very early that there is one quality that sets apart successful entrepreneurs from others and that is “guts”. They have the guts to do it in the first place. More importantly they have the guts to stick to it when others would give up. I have nearly lost my business three times.

and bars are our big growth opportunity and we export to over 40 countries around the world.

Defining a successful entrepreneur

There is no checklist to become a successful entrepreneur. The closest I can think of is Mathew Rock’s definition; he used to edit a magazine called Real Business and has interviewed several great entrepreneurs in the world, Blue Ocean Strategy including Bill Gates. He listed some Cobra beer is a Blue Ocean Strategy common characteristics of product. (Blue Ocean Strategy entrepreneurs. One, they have real generally refers to the creation by a self-belief; two, a lot of them are company of a new, uncontested specialists – Bill Gates was a techie; market space that makes or they are all-rounders, they have competitors lots of energy, irrelevant). they are not Our first company car When you start a afraid to talk business idea, it does about money, was battered, very and they will get not have to be battered, it needed on with the job, if something that has they come across push-starting never been invented problems they before. Invariably you everyday – I am not will deal with are going to be doing exaggerating.

You could them and get something differently and better, and see the road underneath round those obstacles, at the changing the market through the holes in the right moment place forever. I did not they love to floor of the car. invent beer; beer has party, and they been around for inspire people. centuries. As a 19They inspire year-old student from India, I went loyalty, they are very competitive, to the pubs in the UK and tried all and they are resilient. They love the famous beer brands from what they do, sadly, quite often, at around the world. I found that many the expense of their families. The of the lagers were bland, bloated, entrepreneurial journey is sadly fizzy and harsh – really difficult to littered with broken families. That drink especially with curries. I is a reality and shouldn’t be the decided to produce from India my case. And finally, they really own beer which had the believe in what they are doing refreshment of a lager combined even if others say that they don’t stand a chance. with the smoothness of an ale that is really drinkable, appeals to men Creativity and women alike with a globally appealing taste and accompanies all At school I was told that I was not food, in particular India food. Pretty creative. Why? I was useless at art. I simple – many big ideas are pretty went through all my school and simple. university life thinking that I was We started brewing in Bangalore, not creative. But when I started my then brewed in Bedford, Poland, business I realised that one of the Belgium, and in three breweries in skills that you need as an India. We have 98.5% distribution in entrepreneur is the ability to be creative. And I had it and I have it in Indian restaurants in the UK, over abundance and it had been 100 Turkish restaurants serve Cobra suppressed throughout my beer and of course the supermarkets formative years. If only we and cash and carrys sell them. Pubs

encourage and nurture our children's creativity our GDP growth would double.

Luck

I have attended three business schools and the best definition of luck that I have come across is – luck is when determination meets opportunity. I picture it as waves that are going past you in life. If you are determined, you might catch one of those waves. If you are not determined those waves will keep going past you all your life.

Team and Attitude

Talking about team let me tell you a small story. When we started off we put out an advert for two salespersons in the Evening Standard. We hired out two people.

The person who came third pleaded with me to give him the job and he agreed to work for commission only.

He didn’t even have a car, his English was terrible, he was a Pakistani Christian who had come over to the UK on asylum. We gave him a couple of samples and a sales target of 100 cases in one month. He achieved the target in two weeks.

I learnt very early that there is one quality that sets apart successful entrepreneurs from others and that is “guts”. They have the guts to do it in the first place. More importantly they have the guts to stick to it when others would give up.

He works for us to this day and is a legend in the industry. To me attitude matters more than anything. We hire for will rather than skill. If you have both the better. But it is the attitude that matters more.

P.S: Lord Bilimoria qualified as a chartered accountant in 1986 with what is today, EY. Asian Voice & Gujarat Samachar - 2017

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Inderneel Singh - Managing Director, May Fair Hotel, London

Trained as an accountant Inderneel plays a key role in the affairs of one of London’s landmark hotel chains - Edwardian Hotels London. He spoke exclusively to Asian Voice’s Accountancy Magazine.

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rom a young age, I recognised accountancy as a good career choice as my father was the one who prompted my interest in the sector. I saw first-hand how the qualification would give me a deep knowledge and understanding of the way in which businesses operate and how to make sound decisions.

Rising through the ranks

During my time at KPMG I actively took the opportunity to work with a variety of clients, of differing sizes, across a range of industries. For my first four years at KPMG I worked in Audit before completing a secondment in Advisory for six months. Following this I undertook a client secondment at the Group Finance function at British Airways before returning back to KPMG to work in the Internal Audit and Risk Consulting Services.

Various roles he has held in the group

Prior to becoming Managing Director at The May Fair Hotel, I was Corporate Development Manager for The Edwardian Hotels London.

Within this role I was part of the planning team for our Leicester Square developments, which is now under construction. This will become a five star hotel in London’s West End and is vital in improving the southwest corner of the square.

Overcoming challenges

There are of course challenges every day, much like any other workplace.

As I have taken on different roles 14

Asian Voice & Gujarat Samachar - 2017

within the Edwardian Hotels London, I have brought with me knowledge and experience from previous positions. I do think that helps with problem solving and seeking other solutions to support the business. As an accountant I learnt the importance of overcoming challenges in a pragmatic way, managing expectations and also working collaboratively with different disciplines.

Emphasis on staff's continuing professional development

It all comes down to our Hosts (staff).

If we invest in our staff and teach them the relevant industry skills, it plays a key role in the future success of our company. Most importantly, providing the right training instils confidence in our hosts and enables them to provide a first class service to our clients.

For this reason, each and every job position we offer comes with an individual career development plan designed for individuals who have potential and hunger to succeed.

Regular performance reviews also ensure that our hosts have an opportunity to get involved in planning their career progression.

As a team we work hard to ensure that we deal with any issues together, taking advantage of the wide range of skills and abilities we have here.

Training and support for staff at Edwardian Hotels London

Edwardian Hotels London is a family owned, dynamic hospitality group. It

is important that a sense of family pervades through the business, so anyone working in any of our brands feels that they have the opportunity to have their voice heard. We also want our Hosts to feel empowered that their everyday behaviours and actions can impact the direction of the company for the better.

It is for this reason that we have ED.G.E, our training academy based at New Providence Wharf. It serves to give all new starters a full induction and also offers in-depth Food and Beverage courses. This concept of equipping future leaders of our business with the necessary skills, confidence and practical experience manifests itself well through our partnership with Imperial College Business School. In 2015, Edwardian Hotels London became the first hospitality group to collaborate with them. We have pledged a 10-year alliance to create a development programme which intends to train over 250 of our leaders and managers.

For us it was a chance to really shakeup traditional hospitality training. We have been working with Imperial’s Executive Education team to deliver a bespoke programme that really sets us apart from others. It is a long-term initiative that we are really proud of. It allows us to explicitly demonstrate to current and future employees that we are wholly committed to their individual growth.

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CYBER SECURITY

ACCOUNTANCY MAGAZINE

A challenge for accountants

Nick Seaver, partner, Deloitte cyber risk services

The effects of cyber attacks are already inflicting substantial damage on organisations today, including disruption to operations and reputational damage, resulting in erosion of customer trust and falling share prices. The frequency, size, and sophistication of these attacks continue to increase.

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any organisations are highly reliant on IT systems, whether in-house or externally run, to manage their dayto-day business. Most organisations also make use of the internet and associated technologies to communicate and transact business with customers, suppliers and other third parties.

Whilst this level of connectivity has no doubt benefited many organisations, driving efficiencies, agility and innovation which was unimaginable a few decades ago, it has also hugely increased the risks organisations face. Much of the commentary around cyber security concludes that despite everincreasing investment, the number and cost of cyber incidents continues to grow at an alarming rate.

Cyber security has become far more than an IT issue-it is a critical consideration in many organisations -87% of FTSE 100 companies disclose it as a principal risk in their annual reports — with a profound impact on corporate strategy and risk management. It is important that accountants, not only understand cyber risk, but play an active part in helping measure and manage it.

Some of the areas accountants need to contribute to or lead on are: l Protecting the accounting information – particularly when

their remit covers sensitive personal and corporate information such as payroll, business forecasts or M&A activity. l Helping businesses understand the cyber risk. In small-and medium-sized businesses, accountants are frequently relied upon to explain the implications of IT and cyber. l Helping businesses measure the potential cost of a cyber breach, the cost/benefits of safeguards and helping to plan and practice how to respond.

It is therefore important that accountants understand not only cyber risk, but play an active part in helping measure and manage it.

l Helping ensure cyber is adequately covered in external reporting, particularly where there’s a duty to report to shareholders.

Three key questions for accountants to ask are: l Secure: Are the right controls in place to prevent both known and emerging cyber threats? How do we test these controls? l Vigilant: Do we understand how cyber threats are changing? Are we confident we would know if we had suffered a cyber attack?

l Resilient: How well prepared are we to respond to an attack? Have we planned and rehearsed how we would respond?

Key areas of consideration Robust assessment of the risk

l Who is likely to want to launch a cyber attack on us, and why? How is this likely to evolve in the future? l What are the most critical assets we need to protect from a cyber attack? How did we assess this? l Do we understand the impacts of a successful attack on these assets? l Have we defined a cyber risk appetite? How?

Monitoring of internal controls effectiveness

l Who is responsible for managing our risks associated with cyber? l Are our controls to prevent cyber attacks effective and in line with our risk appetite? l Do we have the right intelligence mechanisms in place to understand rapidly how the cyber risk is changing? Can we rapidly alter our controls as a result of this intelligence when needed? l Are we confident we would detect a successful attack? Have we developed and rehearsed how we would respond to a successful attack? l What management and mitigation activity is in place? l How do we ensure that our people, including the Board, are trained appropriately regarding cyber risks and their responsibilities? l How do we compare to our competitors, other industries and relevant cyber security standards? l What is risk, internal audit and external audit’s role in assurance around cyber?

Asian Voice & Gujarat Samachar - 2017

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DEMONETISATION

ACCOUNTANCY MAGAZINE

Prime Minister Modi's master stroke In conversation with Bhanu Choudhrie

In a bid to root out black money and corruption the Indian Prime Minister Mr.Narendra Modi on November 8, 2016, put Rs 500 and Rs 1,000 currency notes out of circulation. Black money and corruption apart, there was a strong suspicion by Indian security intelligence of a deliberate strategy by external forces to fund terrorism using fake currency notes and disrupt India from within.

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o in one fell swoop, and a decisive one, Modi has effectively rendered impotent the malaise of fake currency and black money that have emerged as a major national security threat. This is a game changing move. No previous government has had the courage to initiate such a bold and decisive step.

However, not everybody, particularly in economic circles, is happy with the demonetisation move, especially with its implementation. At a time when Modi is being criticised by various quarters for his “revolutionary and well-intended” move, he can find some support in Bhanu Choudhrie, a successful British-Indian entrepreneur, who described Modi’s move as ‘ahead of the times.’

According to Choudhrie, Modi's demonetisation move has fasttracked India by 50 years.

In a candid tete-tete with L.George (CEO, ABPL), the Delhiborn UK-based businessman dubbed Modi’s demonetisation move as the best thing that has happened to India in the recent past.

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Asian Voice & Gujarat Samachar - 2017

What makes you say that with move India has gone forward by 50 years?

“Modi’s crackdown on India’s cashbased economy will do the country a world of good. While many in India, especially in the hinterlands are still illiterate, this move will impose the very basics of banking education on them, which in turn will empower them to move with the changing times. I was born and brought up in India. I know the poor and rural population don’t know how to open and operate a bank account. But if you wait for them to be properly educated on these matters, it will take at least 100 years. With a single stroke (demonetisation) Modi has taken the country 50 years into the future. Now, if anyone wants access to their money, they must have a bank account because they can no longer operate with cash only. So Modi has brought a huge portion of the unbanked population into the banking system and has forced them to learn how to bank and benefit from the system.”

Bringing rural India into the mainstream fold

“Interestingly, most of the rural unbanked population has a mobile phone and that too a Smart one.

They know how to watch a movie or download music on a Smart phone but they supposedly can’t access a bank account online which to me sounds ridiculous. The fact is that they can. Just like how they learned to use various features on their mobile phone, maybe from their son or daughter or a relative, they can also learn how to operate an online bank account through a mobile phone. They may be illiterate but they can be taught what keys to operate on the phone to enable online banking.

Shoring up cash

“The Indian banking system had a serious problem. The problem was that it was short of cash and the authorities would have had to inject a huge amount of money into the banking system. Now, with demonetisation, a large amount of

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cash has come back into the system.

As a result, banks now are flushed with deposits and the money can be used by banks to lend. In the last few months we have already seen many banks willing to offer loans to businesses. And this is something positive for the economy.”

Black money on a leash

“Another positive outcome of this move is that the Modi administration can keep a check on black money. More importantly, it has taken black money away from political parties that had been misusing it for political purposes.”

Towards a cash-less society

“As they say every coin has two sides and such a revolutionary decision will certainly have its downside. But that need not cause alarm bells to ring as it is only a short-term problem.

Paying the blue-collar workers can be a hiccup initially but that is part and parcel of such a humongous decision. You can still pay them by helping them open a bank account.

The government has set up programmes to open bank accounts for such people and this should be properly utilised. There is an urgent need to change the mindset of certain sections of Indian society. They need to move with the times. My children or the younger generation are never going to go to a high-street bank. Every transaction of theirs will be online, on the phone or through a digital device. Because that’s the way the world is moving. So there’s no need for a cash transaction today unless one has to give a tip or pay a tea vendor in India or a taxi driver. In fact, the world has changed so much that even taxi drivers today are accepting cards. Just look at the US, the UK and other developed countries in Europe – they rarely deal in cash.

“This is a defining moment for India as demonetisation is paving the way for a largely cashless economy.

Yes, there is criticism and backlash, but ultimately the advantages of it will outweigh its disadvantages.”

Strengthening the tax system

“India may be a developing country but it is one of the fastest growing economies in the world. It badly needed a fiscal impetus such as this.

He has brought an entire generation into the new system. Now the government has a tighter hold on the tax system. It can tax people on transactions, as everybody will come under the tax net and this will keep a check on tax evaders.

“Conventional wisdom in India is to go after the 1% at the upper end of society – the highest earning group. But I would urge to look at the remaining 50-60% of the population. If they come under the tax net, that is huge revenue for the economy. With that money Modi can take up development, infrastructure and education projects – all those things that he talked about before becoming PM. Demonetisation will allow him to fast-track that.”

BLACK MONEY

Was it done in a hurried manner or in an unorganised way?

The beauty of India is that, despite the chaos, things work. Similarly, demonetisation will eventually bear results. By the way, the decision to demonetise was not done in a hurry.

If Modi had waited, printed all the currency notes, changed all the ATM machines, given enough notices to various departments – then everyone in India would have known. The success of this move lies in its secrecy. So he had to do it the way he did it. And he did it the best way that he could. Yes, on hindsight, it is easy to say that

things could have been handled a bit differently or in a better way. But I think under the circumstances he did it the best way.”

Will black money be wiped out with this move?

“What I understand from media reports is that a lot of cash has come back into banks. It’s too early to say how much of it is black money and it is for the authorities to find out. There is definitely a lot more cash in the system which has not come back. That money is either destroyed or, now, worthless. But, definitely, there was black money in the system.”

Do you think the purpose of eradicating black money has been served?

“I think so. From now on, you will have access to cash (both receipts and payments) only through your bank account. Every transaction of yours can be monitored and tracked. So the demonetisation move has certainly wiped off a huge portion of black money.

Of course, money launderers, tax evaders and other criminals will always find new ways to circumvent the law. They will find new methods to print fake notes or defraud the system.

But then there are various government departments to keep a check on them. Overall, I think, the demonetisation move will stand Modi and India in good stead, and it certainly has given the Prime Minister a lot of firepower to deal with anti-social elements than ever before.

“Let’s hope our political parties show the maturity to stand united in this massive national battle against corruption.”

Bhanu Choudhrie is the founder and executive director of C&C Alpha Group.

He sits on the board of 2 American public listed banks. He was the winner of Entrepreneur of the Year at the Asian Voice Political and Public Life Awards 2008.

Asian Voice & Gujarat Samachar - 2017

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Rel Integral.2.qxp_A4 Temp 03/03/2017 15:42 Page 18

Doing business in India and the UK ACCOUNTANCY MAGAZINE

O

Why India

n 3rd March 2017 during a visit to London, India's Finance Minister Arun Jaitley addressed a gathering of around 100 business leaders. He was visiting with a delegation of business leaders with a view to boost trade and investment in India.

During his visit Mr. Jaitley said,“Our aim is to create a worldclass infrastructure. Since 1991 India has had a huge mindset change.

There was a fear of the unknown with regards to liberalisation, but as we’ve seen, it has created a better India, and those fears have receded.

Therefore, today there is greater support for reform activity. The idea of a protectionist economy is no longer an issue in India.”

India is stellar performer in the global economy. According to Confederation of Business Industry (CBI) UK is the single largest G20 investor in India, and supports close to 800,000 jobs. The CBI also reported that between 2000 and 2016, the UK invested $24.07 billion in India – increasing its investment by $1.87 billion between 2015 and 2016 – representing 8% of all foreign direct investment (FDI) into the country. The chemicals sector receives the lion’s share of British investment in India at $6.1 billion (25% of UK FDI), followed by drugs and pharmaceuticals at $4.1 billion (17%), and food processing at $3.2 billion (14%).

The top reasons British firms invest in India are the size and growth potential of the market, the easy availability of talented work force and the stable political system.

The UK also remains the largest job creator in India via FDI. Between 2000 and 2016, British FDI created 371,000 jobs – 10% of all jobs created by FDI. The total number of people employed by British companies in India currently stands

18

Asian Voice & Gujarat Samachar - 2017

at 788,000 – representing 5.3%, or one in twenty, of private sector jobs.

FDI under automatic route is now allowed in all sectors, including the services sector except a few sectors where the existing and notified sectoral policy does not permit FDI beyond a ceiling.

No prior approval is required for FDI under the Automatic Route.

Only information to the RBI within 30 days of inward remittances or issue of shares to non-residents is required.

Why UK

The UK is the leader of foreign investment in Europe and is considered to be the easiest place to establish and run a business in Europe. A rich and diverse market with world-class industries including Life Science, ICT, Creative, Financial and Professional Business Services, Aerospace and Automotive engineering, the UK offers an attractive location for businesses with easy access to customers, product innovators, suppliers and partners.

Some of the key factors that make UK an attractive investment destination are: • A highly competitive tax environment for foreign investors • Least barriers to entrepreneurship • World leader in innovation • Stable Political Environment • English, an international language for business • The UK is home to the top six universities in Europe • The UK has extensive broadband markets amongst the G7 countries and also the strongest ICT infrastructure in the world.

• With an integrated system of airports, seaports, rail and road, businesses located in the UK can select the optimal method of moving people and freight between major

Ajay Kumar Agrawal FCA(India), FCCA(UK), MBA (UK) Managing Director, Rel Integral cities and locations, both within the UK and internationally.

• One of the lowest labour costs in Europe • UK is ranked as one of the world’s leading locations for its IT environment, and ahead of all major European economies • The UK is rated as the best location in the EU for the attraction of foreign skills • The UK’s main corporate tax rate is competitive against other major European nations.

About Rel Integral

Rel Integral is a UK and India based accounting, auditing and consulting firm providing specialized services in corporate and commercial fields. We offer to our clients a full spectrum of services to facilitate business growth and assist in critical decision making processes including setting up a business in UK or India. We work with individual, small and growing corporates and financial services.

Our services include:

• Audits, Accounts and Compliance • Financial planning & Risk Management

• Corporate Finance • UK – India Tax advisory services • Outsourcing Solution - Ajay Kumar Agrawal is also the Chairman of the UK Chapter of The Institute of Chartered Accountants of India.

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Kiran Patel.qxp_A4 Temp 03/03/2017 15:41 Page 20

“An Accountant is someone who knows how to crunch the numbers.�

ACCOUNTANCY MAGAZINE

In my opinion, this is so far removed from the truth. The increasingly competitive and uncertain business environment is resulting in organisations facing a number of issues that they may not be able to control, but which are likely to significantly affect their performance.

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hartered Accountants have a vital role to play in the commercial success of these organisations by offering their valuable knowledge gained through a vigorous training programme, both in terms of practical experience and the theoretical examinations taken over a number of years. The stress of having to qualify by passing examinations, increasing their practical knowledge and applying it to diverse circumstances produces a professional who is capable of applying their skills to any situation.

This diversity of training has led to Chartered Accountants operating on many levels and in several different roles in diverse organisations. Some Accountants operate in an advisory role while others go on to take up managerial positions in industry and in practice.

Chartered Accountants are often seen on the board of public limited companies, or in the public or voluntary sectors as well as expanding the traditional family business into a global empire.

The secret of such diversity lies in the training and development process that has been established by the Institute of Chartered Accountants in England and Wales, combined with a personal desire to attain high standards.

For those willing to rise to the challenge, the inherent training of a Chartered Accountant ensures a 20

Asian Voice & Gujarat Samachar - 2017

thorough understanding of the diverse world of business and finance that can be operated on from many levels.

The starting point is that Chartered Accountants develop a high level of understanding for numbers, however it must be emphasised that it is not always a numbers game. Mathematical skills, together with development of integrity and ethics with a common sense approach to thinking critically create the ideal Chartered Accountant. They are capable of taking up a senior position within an accountancy practice or a management position in a family run, national or international organisation. There are no limits.

Adding to this, an element of commercial acumen, confidence, the ability to communicate well and relate to any subject matter, creates an unprecedented level of skill that can be applied at a much higher level. The cream of the crop goes on to become successful entrepreneurs in their own rights, whether this is in Practice or in Industry.

Drawing upon my own experiences over the past 23 years, I have established that there are many facets to a successful Chartered Accountant. The obvious place to start is to ensure you sign up to a training contract with a reputable accountancy practice in order to serve the minimum three years of

Kiran D Patel BA (Hons) FCA

intense learning. My personal opinion is that the real entry point is at the GCSE stage when you can decide to take many routes into the profession. There are minimum entry requirements, depending upon the career path that you choose to take.

Once you have secured a training contract in the profession, it is important to establish, at an early stage, where you would like your career to go. The choices are endless, whether it be general practitioner, tax consultant, forensic accountant, management accountant, corporate finance specialist, insolvency practitioner, or financial director. It is very important to understand where you are going from the outset. As you rise through the ranks, your desired area of development will become more and more apparent as you begin to explore skills that you previously would not have even dreamt of acquiring (such is the flexibility of the skills that you will establish).

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ACCOUNTANCY MAGAZINE

So what are the qualities of a successful Accountant?

The most important quality is to ensure that you always keep an open mind. An open mind is essential in every single element of the experience that a successful Chartered Accountant encounters.

The conventional image of a Chartered Accountant that conjures up in the minds of individuals is so distant from the professional of today. No longer is the Chartered Accountant an individual who sits behind a desk crunching numbers all day. The pace at which technology is advancing, together with economic and legislative changes to taxation and corporate governance has resulted in the need for the Chartered Accountant to become multi-skilled in the workplace.

In practice, what does this mean?

It requires the need to apply yourself to multiple industries, make yourself more lucrative for longer term employment options and ultimately create a demand for yourself as an accounting professional. Diversity in thought can only achieve this. In today’s world, it is important to become the “Finance Director” in the business that you are advising. The Chartered Accountant in practice has to wear many hats and be mindful of the environment in which their clients operate both on an individual and on a global basis. To do this it is very important to familiarise, understand, and appreciate in detail, beyond a reasonable expectation, with the environment in which your client operates. You have to have a higher level understanding of the business itself, the markets in which it operates, the unique selling points and strengths of the business, the competition, the regulations that need to be complied with, etc.

Above all, it is important to also consider other aspects of the client’s business that the client would not ordinarily think about. Aspects such as employment, taxation, corporate

governance, and financial planning.

As an adviser, equal emphasis is to be placed on all aspects of the client’s business. In practice, one of the ways in which this is achieved is by ensuring that you draw upon the experiences you gain by advising other businesses and practically adapting those experiences to fit in with the circumstances at hand.

Naturally, this approach will lead to a higher level of diversification and with it comes an enhanced experience that can only grow with time.

From a professional perspective, this is all well and good, however, my view is that the professional Accountant of today must do significantly more. In order to achieve success, it is important to become the Accountant who does a lot more than an Accountant traditionally did. One who is able to achieve the unexpected, who is able to take a much broader view on any aspect of business. This is only possible by broadening your horizons and ensuring that you develop an interest totally unrelated to your “day job”. For me this was keeping fit by running and cycling.

The number of times that I have been able to successfully negotiate

transactions just by going for a run beforehand are well beyond my own expectations. I do believe that this is the synergy effect that the modern Accountant needs in order to succeed. It will keep you fit and healthy too.

For those envisaging a career in Accountancy it is important that you do listen to the sound advice of those who have managed to complete the vigorous training regime and have successfully carved a career path. There are many success stories to call upon.

To sum it up, in the words of the highly successful Indian Industrialist, Ratan Tata, “I need MBA for running my business….

But CA to teach them how to run the business!!!.” The world is definitely recognising the value that a Chartered Account brings!

Kiran D Patel BA (Hons) FCA is a Chartered Accountant with over 20 year of experience in the Profession, and Principal of Albury Associates, a boutique Chartered Accountancy practice, predominantly involved in high level Management Consultancy Services to a variety of diverse businesses in many industries together with the provision of Audit, Accountancy and Taxation Services traditionally provided by Accountancy practices.

Kiran Patel - pays to keep fit Asian Voice & Gujarat Samachar - 2017

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Cloud Accounting.qxp_A4 Temp 03/03/2017 15:37 Page 22

ACCOUNTANCY MAGAZINE

The advantages of accounting in the cloud Cloud-based computing has made managing accounts for both clients and accountants much more convenient. It has removed the need for the client to manage every detail of their accounts and bookkeeping, by allowing both parties to share and update information in real time.

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ntil relatively recently, payment options instantly. This is bookkeeping software was environmentally-friendly, always seen as a ‘desktop professional, reliable and – most product’, loaded onto a disc or importantly – should result in downloaded onto a computer. prompter payments from However, with the advent of online customers, meaning more efficient accounting, the client and cash flow for the client. accountant pay a subscription to use Using desktop software relies on their mutually agreed accounting the storage of data on the hard software via an online provider and drive of a computer information is and for those who stored ‘in the By taking the time and access the account to cloud’ and accessed remember to back effort to keep their dayover the internet. up their work to-day books updated, But being more regularly. Online convenient and online accounting allows accounting software, cost effective are an accountant and their on the other hand, not the only client access to real-time means the client and benefits that accountant can leave cloud-based information about a it to the provider to accounting make frequent selected account. software, such as backups of all the Intuit QuickBooks data associated with an account. In can provide both the accountant addition, the client also has the and the client. option to back up to their own By taking the time and effort to computer if they want their data keep their day-to-day books held locally, providing an additional updated, online accounting allows layer of security. an accountant and their client Unlike desktop software, there is access to real-time information no need to wait while downloading about a selected account. This lets any updates, as this is done them make better-informed unobtrusively in the background. decisions and meet their reporting Probably one of the biggest requirements – such as tax returns advantages of online accounting is – quickly and even while they’re on that it helps to reduce the need for the move. any unnecessary meetings, as it Cloud-based accounting allows allows for greater ‘virtual’ for invoices to be produced and collaboration on real-time data emailed straight to the account between a client, their colleagues holder’s customer who, with a and their accountant simple click, can be taken to their simultaneously.

Asian Voice & Gujarat Samachar - 2017

Jo Nockels, FCCA, Senior Training and Communications Manager at TaxAssist Accountants In addition, storing data in the cloud may be more secure than using some encrypted hard drives as all online accounting software should adhere to the requirements of ISO 27001— the International Standard for Data Security.

There will also be additional security measures in place such as firewalls and multi-site servers, so that if the main data centre should go down, the cloud software will be back in action within minutes.

Probably one of the biggest advantages of online accounting is that it helps to reduce the need for any unnecessary meetings.

Obviously, to ensure accountants and clients enjoy all the benefits of online accounting, they will need a reliable internet connection so make sure that you ask the software provider what the minimum internet speed required is to have a seamless experience using the software.

ADIT .qxp_A4 Temp 03/03/2017 15:35 Page 23

ACCOUNTANCY MAGAZINE

ADIT

(the Advanced Diploma in International Taxation)

ADIT is an advanced level, professional qualification specialising in international tax, and is a global benchmark for international tax practitioners in the UK and around the world.

The overall standard of ADIT is comparable to a postgraduate qualification. It is intended for senior level tax professionals and managers, or people working towards a senior level in international tax.

T

he ADIT qualification was developed and is supervised by an Academic Board consisting of several prominent international tax practitioners and scholars.

By pursuing and achieving ADIT, students develop and demonstrate their knowledge and acquired skills in international tax, across a range of interesting and contemporary topics.

A compulsory Principles of International Taxation module equips students with a detailed understanding of the fundamental concepts and practices underpinning the international tax system, and is followed by a choice of any two jurisdiction-based or thematic modules addressing the international tax regimes of major economies and international tax centres, and emerging international tax subjects.

ADIT is designed to challenge accountancy and tax professionals, who are expected to develop their international tax expertise to a high standard. A range of tuition options are available to assist students in preparing for the exams, which can be sat either on-screen via laptop, or using the traditional pen-and-paper method. Students also have the option of submitting a 15,00020,000 word extended essay in place of an exam for one of their modules.

Exams are held twice per year, in June and December, at locations in over 40 countries around the world.

Each ADIT module tests a range

Countries with ADIT holders as of February 2017

population has grown rapidly; today there are over 3,000 ADIT students and holders across 110 countries and territories. The biggest ADIT centres are the UK (756 ADIT people), India (272), Cyprus (264) and Ireland (204).

The ADIT qualification is awarded and administered by the of professional skills, as well as your Chartered Institute of Taxation understanding of the underlying (CIOT), the UK’s leading concepts. For example, exam professional body for tax questions will often place students in practitioners.

In addition to ADIT, the simulated role of a tax adviser, the CIOT also awards the Chartered in-house practitioner or revenue Tax Adviser (CTA) authority, and qualification for tax encourage the The CIOT also awards the practitioners analysis and Chartered Tax Adviser (CTA) specialising in evaluation of the qualification for tax domestic UK tax, possible approaches practitioners specialising in and administers the domestic UK tax, and to a given scenario.

The exams are up to administers the ACA CTA Joint ACA CTA Joint Programme in Programme in partnership date and based on with the ICAEW for individuals partnership with the current case law. seeking both accountancy and ICAEW for They cover the individuals seeking tax certification. trends and what are both accountancy now important and tax certification. areas in international tax.

The ADIT syllabus is updated The ADIT is administered by the annually, to ensure that the Chartered Institute of Taxation which is qualification remains at the cutting the leading not-for-profit professional body edge of international tax discourse. in the UK for advisers dealing with all Since the first ADIT exams were aspects of taxation. sat in 2004, the global ADIT

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The Post-Brexit Indo-UK business landscape

ACCOUNTANCY MAGAZINE

The British Prime Minister, Theresa May, travelled to India late last year, along with senior members of her cabinet and a delegation of UK small and medium-sized businesses, in an effort to bolster trade and investment relationships with India.

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t was not surprising that India was top of PM May’s list of countries to visit outside the EU. The UK is host to more than 1,000 Indian businesses, employing over 100,000 people, with a combined turnover of close to £25 billion.

There is also a strong cultural and diaspora relationship between the two countries and this relationship assumes even more importance as the UK grapples with uncertainties post-Brexit.

The Brexit result has allowed the UK to work towards initiating direct negotiations on finalising bilateral trade deals with emerging economies, including India. But this will not be an easy task and there is a need to understand and appreciate the complexities involved in dealing with India’s geopolitical and social ecosystem, as well as the timelines associated with clinching the deal.

While entrepreneurs and ownermanaged businesses in the UK take time to assess the implications, we know that UK SMEs are resilient and seize opportunities in the face of change. The bureaucratic upheaval involved, and the procedural changes that come from withdrawing from the EU, will be a gradual process. As changes to legislation and regulation continue to unfold slowly, dynamic British businessmen are keeping their eyes on the ball as adaptability and stability are key right now. Going international is happening earlier in the life cycle of businesses, with

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Asian Voice & Gujarat Samachar - 2017

Chandru Iyer Head of International Business Development Kingston Smith LLP

technology, ease of travel and infrastructure created by governments to support inward and outbound investment, removing barriers which would have made international trade unthinkable for SMEs in the past.

While entrepreneurs and ownermanaged businesses in the UK take time to assess the implications, we know that UK SMEs are resilient and seize opportunities in the face of change.

The relationship between the UK and the EU has had positive and negative effects for the UK tax system. On the positive side, the

UK benefits from various EU directives which eliminate withholding taxes within the EU. For example, the EU Parent/Subsidiary directive allows dividends to be paid from European countries to UK parent companies without withholding taxes, and the EU Interest and Royalties directive allows interest and royalties to be paid without withholding taxes.

Together with the generous UK domestic tax regime, which features a low rate of corporation tax (due to reduce to 17% from April 2020), a tax exemption for dividends received, a tax exemption for the disposal of trading subsidiaries and no withholding tax on the payment of dividends, the EU directives make the UK a very attractive place to locate a holding company for

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European subsidiaries of an Indian group.

The benefit of these EU directives could be lost once the UK leaves the EU. However, this is not the disaster it may first appear as the UK has a very wide tax treaty network, which covers most of Europe. Tax treaties also reduce withholding taxes, although not always to zero, but this should mean that most UK parent companies can continue to receive dividends, interest and royalties without withholding taxes being suffered.

The UK’s sales tax, called Value Added Tax (VAT), is applicable to most goods and services sold domestically in the UK and exported to the rest of the world. Trading within the EU, as a member of the EU, is reasonably straightforward as the European VAT systems are similar across Europe. However, once we have left the EU, many UK businesses are likely to face greater VAT compliance from the loss of intra community reliefs. After leaving the EU, the UK will be free to set rates as it chooses, however, VAT contributes nearly a quarter of the UK’s tax revenue so it is unlikely that there will be major changes to it, although the UK government would be free to abolish VAT and introduce a goods and services tax instead.

One of the negative aspects of being a member of the EU relates to the EU State Aid restrictions. The State Aid rules have caused the UK to either restrict the benefits available under certain tax relief schemes or to make them very complex to comply with EU State Aid rules. One example of this is the UK’s Research and Development Tax Relief scheme which provides subsidies to companies carrying on research and development through the tax system and is very popular with Indian technology businesses operating in the UK. The UK will wish to remain at the forefront of innovative research projects after leaving the EU and may encourage companies carrying out innovative projects to remain in

the UK by enhancing the existing R&D reliefs, without having to limit the benefit under EU State Aid rules. The UK made progress on introducing a Patent Box regime which would have reduced the Corporation Tax rate to just 10% for companies exploiting patents in the UK. This regime was severely limited when barriers were hit with the EU so, post-Brexit, the government may want to reintroduce it in its original form to add to the reasons to carry out R&D and hold intellectual property, such as patents, in the UK. These tax pointers are a good indication of how the post-Brexit scenario can play out for Indian businesses investing/already present in the UK. While the contentious issue of immigration is lurking in the background, a quick and favourable trade deal with India, while looking to project the UK as a truly global and forward-looking nation, will be a good result to achieve.

Kingston Smith has been helping clients build their business for more than 90 years. Outside the UK, as founder firm of international accountancy association, Morison KSi, we offer our clients the strength and experience of 170 independent accountancy firms across 88 countries to support their international reach.

Our firm’s close relationship with India started over two decades ago, when we began advising one of India’s leading commercial enterprises doing business in the UK. Building on that success, our India Group today advises and assists a large number of Indian businesses on their The UK will wish to remain at the international operations, forefront of innovative research encompassing the delivery of compliance services and projects after leaving the EU and advising on international may encourage companies business structures, taxation issues and corporate finance carrying out innovative projects to matters. That combination of remain in the UK by enhancing geographic knowledge, commercial expertise and client the existing R&D reliefs, without empathy has given us a great having to limit the benefit under track record in helping Indian clients open and grow their EU State Aid rules. businesses in the UK. Over the years, we have helped many Indian companies to access the UK and European markets by establishing a presence for them in London.

The current trend that we are seeing is growing interest across multiple sectors, including Technology (e.g.

FinTech, SaaS, IoT, Mobile, Gaming, etc.), Media & Marketing, Professional Services and Retail, to name a few. More and more Indian companies are considering London as a global brand and Europe’s number one location for technology, financial, business, and creative services.

The UK’s capital is one of the very few places on the globe that can boast of world-class technical expertise, creative talent and investors working together. It has a business friendly tax environment with a corporation tax rate that is one of the lowest in the world. The city offers other inherent natural advantages such as the English language and a time zone that allows businesses to seamlessly trade with India, Europe, Africa and America. From access to a highly skilled, world-class talent pool, equipped with both technical and creative expertise, to inorganic growth and fundraising opportunities, London offers a variety of advantageous levers for harnessing growth in the international arena.

Asian Voice & Gujarat Samachar - 2017

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Success in a selfish age

ACCOUNTANCY MAGAZINE

T

Adapting to a changing world

he world of work is changing, driven by technological change. The professional services sector frequently leads the way in adopting new and sometimes disruptive workplace technologies.

They disrupt partly because they affect workplace behaviours and how humans interact with the technology. From blockchain to big data, cyber security and cloud computing, the professional services sector (and accountancy in particular) has been in the vanguard of adopting and understanding such technology. At the heart of these developments is the interplay between employees and employers and especially the degree to which the “psychological contract” between the two is changing.

These issues formed the core of a recent discussion, the first of a series of Conversations Around the World, hosted by Chartered Accountants Worldwide (CAW).

The focus of the first conversation was how businesses can achieve success in a more selfish age, where trust and loyalty are in short supply.

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Asian Voice & Gujarat Samachar - 2017

Harnessing selfishness

Self-interest or selfishness is not a new phenomenon. Historical thinkers from Plato through Adam Smith and Daniel Bernoulli to Jane Austen, David Hume and Thomas Hobbes discussed selfish action as the prime motive for human behaviour and economies. This debate explored the proposition that more can be done to encourage business and individual employees to better appreciate and manage the impact of selfishness.

Businesses need to succeed despite an apparent rise in selfishness.

Individuals are more focused on themselves and their place in the wider community than on their function as employees. How employers respond to this and maintain trust remains an enduring challenge. The idea that people act to promote their own interests over others is an old one.

Probably most familiar to finance professionals is the work of 18th century economist Adam Smith, who clearly identified self-interest

interest.”

Smith succeeded in normalising the notion of selfishness as a major driver of human action. The issue now is less whether humans are selfish, but how this selfishness can be harnessed, and what degree of selfishness is healthy for individuals or organisations. So selfishness doesn’t have to be negative. Many

participants at the discussion spoke of selfishness as a positive opportunity allowing them to promote work/life balance and use career development as a means of improving productivity. With a nod to this long history of debate about selfishness, some at the table questioned if we had ever not lived in a selfish age. Most accepted that the nature of the relationship between From blockchain to big data, employee and employer was cyber security and cloud changing and that to some computing, the professional extent there was a different services sector (and accountancy type of selfishness on display.

in particular) has been in the vanguard of adopting and understanding such technology.

as a central driver of economic activity when he wrote, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own

It’s all about me

The panel drew a subtle distinction between selfishness and selfcenteredness. Selfishness (of a person, action, or motive) was defined as people being concerned with personal profit or pleasure. In contrast, self- centredness was defined as a preoccupation with oneself and one’s affairs, with

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little regard for the welfare of colleagues or employers. This distinction could be crucial for organisations. The selfish worker may present an opportunity if the interests of the individual and the company are, for example, aligned around career development.

Where they are not, there is a danger the self- centred or narcissistic worker may be more of a drain on resources or a risk to operations. One speaker, an employer for 30 years, said that he looks for evidence of selfcentredness in potential employees and doesn’t hire those who display it. His experience is that the best employees are self-aware but are also able to bring out the best in teams. While they might be selfish at times, they are often aware enough to keep it under control.

He disagreed that selfishness in the workplace is a recent phenomenon, pointing to the 1980s being called “the decade of greed”. He agreed that employees are selfish in a different way now, being more aware of their rights and entitlements, and seeking a better balance between employer and employees in negotiations, which has actually eased historical antagonism between the two. The panel debated the need for businesses to align their goals

motivations. Some employees may be focused on salary, while others pursue power and position.

Others still might want better work-life balance. The panel suggested this makes it more challenging for businesses to align rewards with goals.

Technological change

A study by the ICAEW, Understanding Ambition: Attracting the new generation of financial talent surveyed younger members and students and found most were firmly committed to a career in accountancy and finance and wanted the profession to be recognised for a strong ethical position, trustworthiness and professionalism.

Some participants saw the rise of narcissistic workers (rather than the merely selfish) as a function of the increased use of social media. The argument is that narcissistic employees are excessively interested in themselves because social media fosters such thinking. Rather than focus on what they want professionally, they are more concerned with how they look to peers. In rejecting the old, longhours, office-bound culture and expecting to work from home more and enjoy a better work/life balance, narcissistic employees are more likely to embrace shorttermism and place an unwelcome burden on company resources.

Although some employees will always be career-minded enjoying a job that allows them to travel, or meet interesting people, this work may in itself be a Businesses need to succeed strong motivator.

Whether employers despite an apparent rise in approve or not, social selfishness. Individuals are more networks are an important focused on themselves and their part of all our lives. Because social media influences place in the wider community behaviour, discussions about than on their function as employees have to consider employees. How employers the impact of this respond to this and maintain trust phenomenon. In this debate, there was a clear split remains an enduring challenge. between the generations.

Older participants viewed with those of individuals. There social media as a useful tool for was some feeling that successful risk management, frequently used organisations need to appreciate as a background check for difference – of people and their potential employees. Younger priorities. This is particularly true attendees saw it from a different given the current focus on viewpoint. One younger employer organisational diversity. Successful said he would be less likely to organisations are those that invite someone for interview who embrace diversity. That means a did not have a professional social diverse workforce, with different media profile because he wants to

see how recruits portray their personal brand. Younger participants considered social media a vital communication tool allowing them to see and compare the benefits friends might be getting from businesses. “Social media spurs selfishness because we see what’s out there and we see what’s possible,” one observed.

They also dismissed the effectiveness of corporate social media policies once an employee leaves an organisation. This was a warning to businesses that processes to protect reputations are as important after an employee has departed, as before. One participant added that their employer has a policy prohibiting Facebook during office hours, with the exception of lunchtime. This was described as a divisive policy that split partners. Not all comments about social media were negative. One participant praised the creative output from such platforms. “You can leverage the mindshare of others beyond your immediate team and network using external social media such as Facebook and LinkedIn, and also enterprise- based social networks such as Yammer,” she said.

Depending on how appropriate the conversations are in those networks, users can post ideas or questions and create a high-quality discussion that would not have existed otherwise. “On a practical level, I have done this within the enterprise-based social networks where we create special interest forums on Yammer within the Asian Voice & Gujarat Samachar - 2017

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company and people can post what they’re trying to build, share results and get feedback from colleagues across the world.”

If used properly, social media can be a useful team engagement tool and a means of soft appraisal.

Another speaker described a CFO who recognised the efforts of her team by posting pictures on Instagram. “In a way, she was rewarding someone using an unusual approach. The fact that you have your boss rewarding and recognising you on a completely public platform where you then create brand engagement and talent engagement through a broader community, can be positive.”

A pay cheque is no longer the answer

Against this backdrop, it is no surprise that several participants emphasised that aligning individual and corporate goals no longer depends on pay. Just as companies become more aware of the impact they have on various stakeholders, so employees have different objectives to aim for. All agreed that extra pay has diminishing utility as a retention tool. As well as joining a company for financial reasons, employees are also attracted to employers able to show support for charitable organisations or that have a clear, shared social purpose. Somewhat paradoxically, here workers’ selfishness leads to charitable action that can be framed as altruism. Both younger and older participants commented on the trend for employees to seek rewards beyond pay. One senior participant described his surprise when, 20 years ago, a graduate asked what support she could expect from the firm for her charitable work. At a time when graduates were expected to be thankful for a job offer, he felt her request was selfish. “Now we recognise it’s a big part of presenting an employment proposition for people that’s good for the firm as well,” he said. In financial services, there is also the 28

Asian Voice & Gujarat Samachar - 2017

issue of professional ethics. A study by the ICAEW, Understanding Ambition: Attracting the new generation of financial talent surveyed younger members and students and found most were firmly committed to a

around how do we help you get to where you want to be. The journey I took over time does not need to be repeated in the same manner.”

Are you of the moment?

While selfishness was discussed with respect to One participant praised the creative the individual, it can also output from social media platforms. apply to organisations, driving concerns that a “You can leverage the mindshare of selfish business might cause employees to be disloyal. At others beyond your immediate the debate, most team and network using external participants argued social media such as Facebook and organisational loyalty was dead today because LinkedIn, and also enterprisecompanies have shown a based social networks such as lack of long-term loyalty over the past 20 years and Yammer,” she said. job security no longer exists.

Another participant career in accountancy and finance suggested expecting long-term and wanted the profession to be loyalty from employers is harder recognised for a strong ethical anyway because companies have position, trustworthiness and shorter life spans.

The same professionalism. Although this speaker maintained that loyalty generation is often referred to as must shift to be more goals“loyalty light”, they are just more orientated or performance-related focused on rapid career to get the true measure of what an progression and quick to find a individual, team or company is new employer if employers don’t contributing. meet these needs. This is something employers can take positive action on and offers an important opportunity for businesses able to get managing millenials right.

Another participant

The popularity of social media will not diminish and business leaders may need to adapt to deal with this change. One challenge will be

commented on the greater selfawareness of young employees, who are prepared to have more courageous conversations with employers than staff 20 years ago.

“In the past there was a lot less about what do people personally want to achieve from work,” she said. “Today I have daily conversations with my team

aligning the goals of both the business and employees. And this is where the professionalism of chartered accountants could provide guidance. Concepts such as loyalty have changed. Where a job used to be for life, employees accept this has changed but have new demands that reflect shorter terms of service. These can still sustain loyalty, even after an

Conclusions

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ACCOUNTANCY MAGAZINE

employee has moved on.

Communication will continue to be key to finding the most effective management solutions to the trends that are transforming the business environment.

Top tips for business 1 Businesses need to accept that while selfishness is not new, more self-centred attitudes to work alter workplace relations.

2 Businesses should listen to what new recruits want to achieve and agree wider career goals.

3 Businesses need to focus on planning future development of staff, which attracts new talent

and retains existing staff.

4 Businesses need a clear set of values and a statement of their wider purpose beyond profitability.

5 Businesses need clear policies on flexible working and appreciate that workers are not on call around the clock.

6 Businesses should demonstrate support for community and charitable work to attract a younger generation of workers.

7 Businesses should examine culture and behaviours that encourage loyalty and build trust, ensuring alignment between values and employee actions.

At the debate, most participants argued organisational loyalty was dead today because companies have shown a lack of long-term loyalty over the past 20 years and job security no longer exists.

– Article attributed to Chartered Accountants Worldwide, a membership body of leading institutes of Chartered Accountants from around the world to support, develop and promote the vital role that Chartered Accountants play throughout the global economy.

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Employing a part-time finance director

A WIN-WIN FOR ALL I have been an accountant for over 50 years.

Having qualified in the early 70s and taken a career break to do a degree in finance, I made the decision to join industry as an accountant.

I was employed by a multinational with a turnover in excess of £500m and ended up as its chief financial officer.

I

n the mid-90s I decided to start my own practice so I joined Chown Dewhurst, a firm of UK and international tax advisors where I am currently a partner. I am therefore in an unusual position to have experienced both industry and the profession. I work with small and medium sized businesses and what comes across very clearly is that SMEs need the same level of sophisticated financial advice as multinationals. The problem is that, very often, SMEs are not in a position to afford the level of remuneration required to attract high calibre professionals. As a result, they end up employing a person who is not suitably qualified and the business suffers as a result.

In order to overcome this predicament, owner-managed businesses need to consider recruiting an experienced finance director on a part-time basis who can help grow the business.

Today, information flow that is available to a multinational is also available to an SME on a day-to-day basis, wherever they are, enabling them to closely monitor the performance of their business. An example of this is Xero or QuickBooks, where, for an outlay of less than £500 per year you are able to see all your financial data, even when you are on the move, provided you have access to the internet.

However, it is not always easy to install these systems and interpret what the data means to the business.

Organisations run their business on business plans, including budgets, so

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Asian Voice & Gujarat Samachar - 2017

that all the employees of their organisation are focussed in achieving those plans. This can be a daunting task for an accountant who is not suitably qualified and experienced.

There is therefore an opportunity for accountants to take up the role of a part-time finance director of ownermanaged businesses. In fact, some accountants have discovered the benefits of acting as part-time finance directors of owner-managed businesses and they create a portfolio of, say, 5 to 10 clients which then becomes the focus of their practice.

Part-time finance directors can assist SME businesses in a number of areas and these include but not limited to: l Systems and processes including computerisation of accounting systems l Implementing budgeting systems l Comparing budgets with actual results l Advise management of corrective actions when budgeted profits are not met l Advising tax efficient remuneration for both employees and owners of the business l Treasury management to deal with the surplus cash of the business l Raising of finance to reduce borrowing costs for the business while giving as little security as possible l Foreign exchange management l Tax planning l Addressing and advising on company law issues l Staff organisation and job descriptions

Kaushik Desai

Key benefits of hiring a part-time finance director:

Competence – you can hire the right candidate with the appropriate experience, qualifications and skillset Cost savings – they can make significant cost savings for the company Flexi-time – they will work for a set number of hours with agreed starting and finishing times Ability to hit the ground running – as a business you don’t have to wait till an inexperienced recruit gets to understand your business Motivation – part-time directors are retained solely on the results that they can deliver and do not have a guaranteed job contract. Therefore they are compelled to stay motivated and deliver results.

So, if you are an owner-managed business looking to grow, and you require a qualified professional to look after the areas mentioned above, you should start looking at the possibility of recruiting a part-time finance director.

If you are a professional accountant consider whether you have the aptitude and interest to become a part-time finance director for some of your owner-managed businesses.

Kaushik Desai is a Chartered Accountant and a Chartered tax advisor and is a partner in Chown Dewhurst LLP, a firm of UK and International tax advisers.

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