MANAGING CHANGE
Shining a light on change management Jim Scott considers how accountancy firms can embrace, conquer and manage change. Jim Scott Managing Director for Accountancy, IRIS Software Group
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whether it will sink or swim. So, what can be done to overcome this resistance to change?
Get to know the elephant in the room
One of the main barriers to the seamless adoption of a change initiative is the unknown. Gaps in knowledge around the change can result in a lack of preparedness to implement the necessary processes needed for the initiative. MTD requires a level of understanding that some don’t know they need and that others struggle to easily obtain. This change project is still in its early stages, and it remains as one of the biggest changes on every accountant’s mind. With new legislation being rolled out and new tax reporting methods and requirements, accountants are feeling the pressure to face this change whether they want to or not. There are still some unanswered questions about MTD. At the end of last year, 80% of accountancy practices admitted to not having regular conversations with clients about how best to implement change. For this to be managed efficiently and correctly, with an easy and smooth transition, sufficient resources and knowledge tools are needed to allow individuals to properly familiarise and immerse themselves in the new processes. ISSUE 124 | AIAWORLDWIDE.COM
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ith the rapid speed of digitisation, change has become a constant in many aspects of daily life. Yet while it is necessary and often encouraged so as to foster progress and innovation, some are hesitant to face it. For accountants, change has taken many forms, most recently through the introduction of Making Tax Digital (MTD). This UK government vision for an effective and efficient digital tax system has meant that many accountants have had to face a continuous wave of change, head-on. Whether this is due to too much change too soon, or a lack of support and clarity, recent research shows that many firms are lagging behind in embracing the necessary digitisation to properly implement MTD practices (see bit.ly/3oAR6KU). Further, only 25% of accountancy practices feel that they have the right technology to support clients with the transition to MTD. It is most likely that this reluctance to embrace MTD is a result of human aversion to technological and digital change. In fact, when it comes to the intended outcomes of a change initiative, employee attitudes will determine