MiP News JULY 2011
Editor’s note I am very proud to have served as chairman of the Members in Practice Management Panel (MIPMP) for the last four years and would like to thank all the members of CIMA for their kind words as I stepped down to pass the baton onto a very successful friend and fellow MiP, Ray Baxter. Ray will do an outstanding job as chairman and I am sure you will all fully support him in his endeavours to lead us to the next level of achievement.
ever received. This really is a must do event for any CIMA practitioner, or in fact any practitioner from other bodies come to that. It is exceptional value for money and my personal thanks in particular to this year’s conference committee chairman Antony Holdsworth and also to Su Moore, Alan Scott and Tony Boffey for once again generating such an extraordinarily good event. Mark Allen, Editor and Immediate Past Chairman
Once again the CIMA MiP conference was a huge success with what we believe to be the best feedback
Letter from the Chairman Hello MiPs, I have been given the task, which is quite an honour, of leading the MIPMP for the next two years. I would like to convey our heartfelt thanks to Mark Allen who retires after two terms in the job. He is not going away, however, as he has agreed to edit MiP News in place of Philip Badger who resigned from the MIPMP. Philip, many thanks for your contribution over the years. My priorities as Chairman will be to provide good CPD and support to all practising members at the lowest price possible. Apart from our annual conference, which this year was enjoyed by 180 delegates, we intend to increase the number of MiP focused regional events. I am also talking to the ATT (Association of Taxation Technicians) about helping to fill the tax training gap experienced by many MiPs. We have also become active in promoting self-employment as a career choice to the institute’s non-MiPs by running events throughout the UK. To date we have presented to many thousands of members. Are you interested in helping with this work? If so please email me at firstname.lastname@example.org. We will provide training so that you can help and eventually lead these events in your part of the country. It can be rewarding from a personal development point of view. We also plan to run a series of conferences aimed at SMEs in the next two years. This will help promote CIMA to your customer base. We ran a pilot last year in Belfast as an all day event in a prestigious theatre with six speakers on different topics. It is our rule that all speakers must be CIMA members. If you have a specialism of interest to this market and would like the opportunity to present please contact me, again at email@example.com Happy practising, Ray Baxter Chairman, MIPMP
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Current affairs HMRC consultation HMRC is consulting on proposals and options for implementing a strategy for engaging with tax agents. HMRC welcomes views from all tax agents, their representative bodies, those from the voluntary sector and individuals who provide support and advice on complying with tax obligations, as well as individuals or businesses using the services of a tax agent. The consultation is open until 16 September 2011. CIMA’s Members in Practice Management Panel (MIPMP) will be collating feedback to feed into CIMA’s response. Should you wish to contribute please send your views to Ray Baxter, MIPMP Chairman, at firstname.lastname@example.org by 9 August 2011. Read the establishing the future relationship between the tax agent community and HMRC consultation document on HMRC’s website.
Companies House accept e-filing only Companies House intend to consult upon accepting e-filing only. This initiative will effect charitable companies and also CIMA, ICAEW, ACCA and CIPFA members assisting their charity clients with filing their accounts. More information is available online: www.companieshouse.gov.uk/about/mandatingservices.shtml
Help your clients save money by preparing for climate change ‘There is increasing evidence showing that superior performance in managing climate risk is a useful proxy for superior, more strategic corporate management, and therefore for superior financial value and shareholder value-creation.’ RiskMetrics The UK government’s Department for Environment, Food and Rural Affairs (Defra) has partnered with CIMA to develop an online tool that can help you understand how climate change could affect your clients’ businesses – both the risks and the opportunities it presents. Climate change is, to some degree, inevitable. Your clients’ businesses may already be being affected by the weather. Rather than being a victim of these circumstances, a forward thinking business can act now to protect itself from the impacts of the changing climate and seize the opportunities it presents. This interactive tool takes no more than ten minutes to complete and will help you to assess the areas where your clients are most likely to avoid disruption and gain a financial advantage, based on your business activities. You will also get a report identifying potential risks and opportunities for your business, as well as links on where to go next. To try the online tool visit www.cimaglobal.com/sustainability We’d like to hear from you if you have trialled the Climate Resilience Tool and made some changes to your business as a result. We would feature your case study in CIMA’s publications, Financial Management or Insight. Please contact us at email@example.com Case study SME Taylerson’s Malmesbury Syrups who produce premium flavoured syrups for coffees, cooking and frappes, realised that the market needs for their products, which were linked to cold weather, would disappear within the next 10-20 years. The product range was reviewed and they now provide syrups to be used with ice creams and cold frappes.
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Current affairs FRC: case studies ASB has prepared a series of case studies to help constituents assess the effect of the ASB’s proposals for the future of UK financial reporting. They illustrate certain requirements of FRED 43 ‘Application of financial reporting requirements’ and FRED 44 ‘Financial reporting standards for medium-sized entities’. The case studies are available at: www.frc.org.uk/asb/technical/casestudies.cfm
Better financial support for UK small businesses On 15 March 2011, the British Bankers Association (BBA) launched its Better Business Finance website. The launch of the website is a result of the actions that have originated from its Business Finance Taskforces report. The new website provides resources to help in the development of small businesses. Content includes information on regional events, fact sheets and the soon to be launched business mentoring scheme. Of particular interest are the lending guidelines. These are followed by five of the UK’s largest banks and have been put in place to ensure small businesses have greater support when accessing finance. Should an application for a loan be turned down, a set of principles followed by banks enable any appeals to be dealt with fairly, promptly and transparently. The appeals principles state that: • Applications will be reviewed by a second employee who was not involved with the first application. • All information originally submitted will be considered when appealing. • Results from appeals will be given in writing within 30 days. • The bank will provide alternative sources of funding should the application be declined following the second assessment.
CIMA ethical support: focus on whistle blowing CIMA offers ethics and legal help lines to help provide you with support when you feel your professional integrity may be compromised or are concerned you are contravening CIMA’s code of ethics. Further information about the help lines are available online: www.cimaglobal.com/helplines • Ethics. This free, confidential helpline offers guidance to those who are facing an ethical dilemma. It can also provide clarification on aspects of the code of ethics and how it can be applied. Free to CIMA members and students. T. 0800 358 7663 E. firstname.lastname@example.org • Whistle blowing. A free, confidential service offering advice on whether or how to raise a concern regarding unethical behaviour. Contact the independent charity, Public Concern at Work, whose lawyers can give you advice on how to raise a concern about serious malpractice at work. Free to CIMA members and students. T. 0800 358 7665 E. email@example.com Important: please quote CIMA when calling. • Legal. You can now access business and personal legal information from LAW Express online and at no charge. LAW Express also offers a low cost professional telephone legal advice line for CIMA members. This covers all personal, commercial and employment issues, and the service extends to your spouse or partner. Free online service to CIMA members. T. 0800 092 1980 CIMA’s code of ethics can help you to identify and deal with situations where your professional integrity may be at risk. The code describes the high ethical standards every CIMA member and student must demonstrate, and gives guidance on how to uphold these. Five fundamental principles form the basis of the code: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. For a full explanation, along with guidance and case studies on applying the principles, please see www.cimaglobal.com/ethics MiP News | 3
Current affairs Keeping your records with CIMA up-to-date – professional indemnity insurance It is a regulatory requirement of CIMA that all members working in practice hold current professional indemnity insurance (PII). As part of your MiP application and annual renewal you are required to upload your current copy of PII. If you have recently renewed your PII we may still be holding the details of your expired cover. Please ensure that your records are up to date as CIMA reviews members PII details as part of its mandatory requirement compliance checks. It is easy to check and update your details. Simply log into your My CIMA account and select the ‘update my practice details and/or mandatory requirements’ link under the ‘Members in Practice’ section. More information on professional indemnity insurance and MiP regulations can be found in the members’ handbook.
IFAC issues help for implementing ISQC 1 To help small and medium practices apply ISQC 1 in a cost-effective manner, IFAC has created a guidance document entitled Tips for cost-effective ISQC 1 applications. Please email firstname.lastname@example.org for a copy of the full document. ISQC 1 deals with a firm’s responsibilities for its system of quality control for audits and reviews of financial statements, and other assurance and related services engagements. This ISQC is to be read in conjunction with relevant ethical requirements. The nature and extent of the policies and procedures developed by an individual firm to comply with this ISQC will depend on various factors such as the size and operating characteristics of the firm, and whether it is part of a network. The objective of the firm is to establish and maintain a system of quality control to provide it with reasonable assurance that: • The firm and its personnel comply with professional standards and applicable legal and regulatory requirements. • Reports issued by the firm or engagement partners are appropriate in the circumstances. Elements of a system of quality control include policies and procedures that address each of the following elements: • leadership responsibilities for quality within the firm • relevant ethical requirements • acceptance and continuance of client relationships and specific engagements • human resources • engagement performance • monitoring. The firm must also document its policies and procedures and communicate them to the firm’s personnel. The full ISQC1 can be found on the IFAC website under the International Auditing and Assurance Standards Board (IAASB) Clarity Centre. More information around the CIMA code of ethics and ethical compliance can be found on CIMA’s website.
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Current affairs Conference – getting and keeping the clients you want Conference content – day one The annual CIMA MiP conference was held on 24-25 June 2011 and saw over 180 delegates, committee members and sponsors enjoying two days of networking, learning and, for some, escaping to the golf course at Heythrop Park. Day one kicked off with a keynote talk from Gerald Ratner, the man more qualified than most to talk about the theme of this year’s conference, ‘Getting and keeping the clients you want’; after losing everything after some uncomplimentary remarks about his products, he recaptured his former success with an online jewellery company. Gerald spoke with humour about the importance of reputation and business relationships, providing insight on what successful businesses should and shouldn’t do.
Photo: Gerald Ratner
Charles Tilley, Chief Executive of CIMA, spoke about CIMA’s vision for the future. During the Q and A, Charles explained the reasons for leaving the CCAB, which made the situation clearer with a positive outlook for the future. You can read the FAQs on the CCAB withdrawal by clicking here. Other questions included CIMA’s role in the marketing of MiPs to the business community, what CIMA’s view is as to the role of MiPs, and what is the best part of his job.
The breakout sessions throughout the day comprised a variety of topics, encapsulating the philosophy of this year’s theme perfectly by demonstrating various ways and means to interest clients. These sessions included updates and essential tools: internet marketing, management accounts as a service, new FRSME updates, KPIs and time management. Well received workshops were also provided by sponsors Sennet Advisory Services, Liberty Accounts and Platinum Resource for Contractors. Ian McFarlane-Toms provided a very interesting presentation on branding your business, providing a different perspective on marketing and bringing it to life with real examples. Geoff Ramm followed up with an excellent workshop, ‘Now that’s what I call marketing’ which received brilliant feedback and left those who attended with a lot to think about. The evening’s gala dinner brought the moment everyone had been looking forward to: Jimmy Greaves’s after-dinner speech. Jimmy was introduced by Immediate Past President George Glass and had everyone in the ballroom laughing regardless of how much they knew about football or England’s greatest goal scorer of his generation. Jimmy generously donated signed books, a signed photo of himself and Paul Gascoigne and a signed 1966 England team football shirt for the charity raffle which raised over £2,000 for the Benevolent Fund. The dinner was followed by a disco featuring some excellent moves on the dance floor until the wee small hours.
Photo: Jimmy Greaves
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Current affairs Conference content – day two Day two started with a presentation by Philip Hesketh, ‘The psychology of persuasion and influence’, which he later followed up with a workshop later in the day, which proved so popular that extra chairs had to be brought into the room. Alan McCann delivered two workshops on tax updates, Roger Stotesbury explained how video tape can help get new clients and the ATT provided an interesting talk on developing your tax businesses. The afternoon began with another breakout session, featuring ‘The accountant as business advisor’ by Robin Tidd and a workshop by Xero. Clare Haynes kept the energy up with a presentation on the key to keeping clients, which went down so well that one member of the MIPMP was so engrossed that he forgot a meeting! Tony Boffey interviewed five successful MiPs ranging from the just starting out MiP to the very well established, all offering different types of services to their clients. Many thanks to those who contributed to what was an informative discussion on methods, services, marketing and best practice. The conference closed with a useful and motivational talk on getting and keeping the clients you want by the outgoing MIPMP Chairman, Mark Allen. Mark gave a great and heartfelt send off; he will certainly be missed after providing such excellent leadership since 2007. The conference ended with the AGM, during which Ray Baxter was confirmed as the new MIPMP Chairman. We welcome Ray and wish him the best in his new role. A big thank you to all the sponsors at the conference; we wouldn’t be able to do it without you and your contribution gives the conference a real buzz. Everyone who took the time to visit the sponsors stalls left with useful contacts and information.
Photo: Mark Allen, MIPMP Chairman with Charles Tilley, CIMA CEO, the MIPMP and Hayley Dove, MiP event co-ordinator
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Current affairs Testimonials ‘I came to the conference thinking about becoming a MiP. I will now do it – MIPs are a brilliant bunch. I am so impressed that the MiPs are friendly and helpful and it’s a pleasure to be part of this CIMA team!’ ‘Really enjoyable, good speakers, definitely coming next year!’ ‘My 16th conference – love reuniting with fellow MiPs and listening to inspirational speakers. A great experience!’ MiP conference survey Thank you to the 91 people who returned the survey questionnaire at the MiP conference on 24-25 June 2011. The survey gathers data anonymously on delegates, their practices and clients. This is the sixth year that the survey has been conducted and we are starting to build up a useful mass of data. The main points from this year’s data compared to that from 2010: • A higher proportion of female responses this year (32% compared to 22%). • Fewer ‘consultant’ responses (14% compared to 27%). • More ACMA respondents (64% compared to 62%). • Fewer FCMA respondents (30% compared to 34%). Looking at the practice group specifically: • More respondents are reporting that they are offering the full service of management accounts, annual accounts and tax (56% compared to 40%). • There has been an increase in the number working with other qualified people (29% compared to 17%). • There has been a decrease in those reporting having support staff (39% compared to 48%). It may be that there has been an element of substitution of qualified co-operation for general office support. • The reported median income per qualified person has dropped significantly. In 2010 this was well into the £40-60K band; in 2011 it only just gets into that band. • 93% of our client base continues to be owner-managed businesses. • Most respondents continue to be dealing with 50 or fewer clients but there has been a drop in the number who are dealing with more than this number. • Referrals continue to be the prime route to the recruitment of clients. • There is an increase in those reporting a failure to achieve the level of chargeable time that they would desire (58% compared to 45%). • Half of respondents continue to report that their prime competitors are other accountancy firms, largely those staffed by audit trained personnel.
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Current affairs MIPMP Mark Allen Editor and Past chairman T. 01789 294484 E. email@example.com Ray Baxter Chairman T. 02890 998004 E. firstname.lastname@example.org Stephen Milne Vice Chairman Antony Holdsworth Vice Chairman Secretary Su Moore Mike Houldershaw Treasurer T. 01205 280094 E. mike@sheafHF.com Elected Members Tony Boffey Kwasi Okanta-Ofori Alan Scott Kim Swarbrick Robin Tidd Ray Ankrah Dr Ndubuisi Anomelechi-Onyeodi
Date for your diary MiP conference 2012 The annual MiP conference will take place once again at the beautiful Heythrop Park on Friday 22 and Saturday 23 of June 2012.
Tips and tricks British companies are said to spend £1 out of every £4 from their advertising and marketing budget online. The online display market has benefited from the surge of video advertising, or virals. These are a quick way to get your message and brand spread across the world, without the costly effort of traditional advertising. This viral option has been massively successful this year, doubling in size to £54 million. By using Facebook, companies have conveniently reduced their costs from 61% to 57% for paid for searches on search engines such as Google. The paid for search market is still huge, growing by 8% year on year to £2.35 billion. Mobile advertising has also grown by 116% to £83m, and television has enjoyed a comeback with annual growth of 15% since the 2009 recession, totalling £3.5bn last year. Some things to consider: • How can you help clients cut their adverting and marketing budget? • How can you earn fees from this advice? • How can you use these opportunities in your own business?
And finally... MiP News survey MiP News is produced for CIMA MiPs to provide relevant up to date information, drawing together a mix of subjects to cover the many different aspects of being in practice. This survey is to check whether it is meeting its requirements as outlined above so we can continually improve our service. Please email your answers to the following questions to email@example.com by 30 September 2011. Many thanks. • Does the newsletter meet your need for useful information? • What are most interesting aspects of the newsletter? • What are the least useful aspects of the newsletter? • What would you like to see included in the newsletter in future editions?
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