Financial Accountant - September/October 2023

Head Office: Office CS111, Clerkenwell Workshops, 27-31 Clerkenwell Close, Farringdon, London EC1R 0AT +44 (0)20 3567 5999 mail@ifa.org.uk | ifa.org.uk | financialaccountant.co.uk

Chairman of Members Advisory Committee: Ian Hornsey

Group Executive International: John Edwards

PA Business Support Executive: Jolene van Wyk

+44 (0)20 3567 5832 | jolenevw@ifa.org.uk

Head of Practice Standards: Tim Pinkney | timp@ifa.org.uk

Disciplinary Case Manager: Lisa McNeela | lisam@ifa.org.uk

Regulatory Case Manager: Clara Robinson

+44 (0)20 3567 5828 | clarar@ifa.org.uk

AML Reviewer: Alan Hind | alanh@ifa.org.uk

AML Reviewer: David Erichsen | davee@ifa.org.uk

AML Reviewer: Mizanur Rahman | mizanurr@ifa.org.uk

Compliance Manager: Bill Bewes

+44 (0)20 3567 5841 | compliance@ifa.org.uk

Compliance Officer: Anthony Higgins

+44 (0)20 3567 5842 | anthonyh@ifa.org.uk

Compliance Officer: Erin Campbell

+44 (0)20 3567 5834 | erinc@ifa.org.uk

Director, Business Development and Membership: Jonathan Barber

+44(0)7711 955 939 | +44 (0)1924 865779 | jonathanb@ifa.org.uk

Business Development Executive: Paul Flowers

+44 (0)7946 528029 | paulf@ifa.org.uk

Business Development Executive: Alan van Wyk

+44 (0)7387 845590 | alanvw@ifa.org.uk

Business Development Executive: Sara Moras

+44 (0)7444 570783 | saram@ifa.org.uk

Technical Manager: Matt Barton

+44 (0)7879 594198 mattb@ifa.org.uk

Head of Communications and Marketing: Debbie Homersham

+44 (0)20 3567 5833 | debbieh@ifa.org.uk

Events & Professional Development Executive: Hayley Blackman (maternity cover)

+44 (0)203567 5838 | hayleyb@ifa.org.uk

Marketing Assistant: Iesha Hinds

+44 (0)20 3567 5829 | ieshah@ifa.org.uk

Education Manager: Susan Divall

+44 (0)20 3567 5836 | susand@ifa.org.uk

Membership Manager: David Haste

+44 (0)20 3567 5831 | membership@ifa.org.uk

Membership Executive: Robert Millard

+44 (0)20 3567 5837 | membership@ifa.org.uk

Membership Support Executive: Alyce Tatchell +44 (0)20 3827 2950 | membership@ifa.org.uk

Membership and Finance Executive: Yasheema Hall +44 (0)20 3567 5839 membership@ifa.org.uk

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While every care has been taken in the compilation of this magazine, errors or omissions are not the responsibility of the publishers or of the editorial staff. Opinions expressed are not necessarily those of the publishers or editorial staff. All rights reserved. Unless specifically stated, goods or services mentioned are not formally endorsed by Institute of Financial Accountants, which does not guarantee or endorse or accept any liability for any goods and/or services featured in this publication.

ISSN: 1357-5449. Copyright: Institute of Financial Accountants

ANDREW CONWAY

John Edwards takes up new role

After eight successful years, IFA CEO John Edwards has assumed the role of group executive international. He has been managing international activities for the past two years, and the move will enable him to focus on leading and developing the international division on behalf of the IPA Group.

As group CEO, the operational responsibility of the IFA will shift to me in the first instance. A new director of the UK operations will be announced in the coming months.

In 2015, John became the IFA CEO and was instrumental in supporting the amalgamation of the IPA and the IFA. He has achieved much during his time as CEO including successfully positioning the IFA as the body for SMEs in the UK, gaining AML supervisory status, building member services, and introducing IFA Direct and pathways to membership.

John’s strategic vision and leadership skills have played a pivotal role in developing the reputation and recognition of the IFA within the accountancy sector and with government bodies.

John is a key member of the IPA Group team, and we look forward to his ongoing involvement in supporting the growth of the Institute.

On a personal note, I would like to thank John for his hard work over the last eight years and look forward to working with him to develop and deliver on our international growth strategy.

Professor Andrew Conway FIPA FFA IPA Group CEO

T: @IPAaccountants

F: /ipaaccountants

L: Institute of Public Accountants

JOHN EDWARDS

A fond farewell

Thank you – it’s been an absolute privilege. You will all by now have received the email from Andrew Conway explaining that I have stepped down as chief executive of the IFA with effect from 1 September.

I would like to say a huge thank you to colleagues, members, students and volunteers for your continued support and commitment over the last eight years. I will genuinely miss you.

If I’m honest, it wasn’t an easy decision as I have thoroughly enjoyed my time as CEO. Human nature is for us to continually focus ahead on what we still need to achieve. In making my decision, I’ve spent some time looking back and reminding myself of what has been achieved during my time as CEO. This includes successfully positioning the IFA as the body for SMEs, developing the IFA’s reputation and recognition within the accountancy sector and with government bodies, gaining AML supervisory status, and introducing IFA Direct and pathways to membership.

I’m immensely proud of the IFA team, as without their support, dedication and loyalty the IFA would not be the organisation it is today. I hope you would agree.

I know Andrew shares my

commitment to the IFA and IPA Group, and I look forward to seeing it continue to flourish under his leadership.

For the past two years, alongside my role as CEO, I have also been managing the IPA Group’s international activities, which I will continue to do. This will enable me to focus on leading and developing the international division on behalf of the IPA Group and helping and supporting our international members.

Finally, I would like to say a heartfelt thank you for all the kind messages I’ve received over the last few weeks, which have been very much appreciated.

John Edwards FFA FIPA

IPA Group Executive International

T: @InstituteFA

F: /instituteoffinancialaccountants

L: Institute of Finacncial

YouTube: InstituteFA

Accountants

It wasn’t an easy decision as I have thoroughly enjoyed my time as CEO

KEVIN REED

Costly flexibility

The Flexible Working Bill has received Royal Assent and has become an Act. It gives workers more clout when it comes to making a flexible working request. It was expected to give workers that right from day one of their employment but it wasn’t included in legislation (the government has said it will correct that in due course).

The act isn’t just about having more rights to ‘work from home’ – but, for many, flexible working’s focus is around when you spend time (if any) in the office.

There were concerns that younger generations would fight to stay away, but non-office places of work are often not designed to balance productivity and health. Crucially, they have seen that a lack of face-to-face interaction can make workflow clunky and on-the-job learning becomes almost impossible. A YouGov survey found that 62% of respondents believe young workers working from home will struggle to progress more than their counterparts in the office. As we have all experienced, those crucial first years in work help us flex our social muscles, grow up, and develop skills to forward our career.

WHO SAID THAT?

And so, there’s a certain irony in the bill’s enactment at a time when there is a need from employees and employers to build a future-proofed office culture.

Thanks John

One of my favourite parts of being Financial Accountant’s editor is communicating with members – both in the UK and internationally. It’s great to see the expansion that’s taken place over the past few years.

And so, while we bid farewell to John Edwards as the IFA’s CEO, I’m heartened that he will be responsible for maintaining the IPA Group’s momentum across the globe. Good luck John, and thanks.

Turn to pages 12-14 to find out

Sometimes it’s underplayed how much information you pick up from listening to someone answer a query on the phone

23%

Increase in pay for S&P 500 CEOs between 2018 and 2022, compared to 1.1% for the FTSE 100

Source: ISS

7.75%

HMRC’s late payment interest rate (as at 22 August 2023).

Source: HMRC

£223M

£906,000

Average distributable profit per UK partner in 2022/2023, compared to £920,000 a year earlier.

Source: PwC

0.2

The UK’s GDP growth between April and June.

The value of pawnbroker loans in the UK during 2022, up from £158m in 2021.

Source: Mazars

$13.5BN 5

Sales hit a record number for Nvidia, mainly due to demand for its AI-enabled chips

Source: Nvidia

There were 248 compulsory liquidations in England and Wales during July 2023, 81% higher than July 2022.

Source: ONS

49%

Three out of five accountants give their on-the-job fulfilment score at a C grade or lower

Source: FloQast

Percentage of women business owners that report current stable cashflow

Source: Bibby Financial Services

Number of delays to the implementation of post-Brexit border controls on food and fresh products coming from the EU.

-85,000

Fall in the number of UK job vacancies during Q2, the first fall in six months.

$785,000 81%

Source: FT

Source: BDO Employment Index

Audit firm Crowe’s settlement fee with the US Securities and Exchange Commission for audit work at streaming business Akazoo (settlement total includes penalties to CEO Nigel Bostock and senior auditor Matthew Stallabrass).

Source: SEC

TECHNOLOGY

Accountants yet to get to grips with automation

THE TASK THAT FACED ACCOUNTANTS with persuading clients to prepare for MTD has been laid bare in a new survey by Dext. It found that 53% of 250 owners of small businesses have yet to consider automating bookkeeping tasks.

Half (51%) of the respondents admitted that they wouldn’t know where to start with automating key finance processes.

“There is a clear lack of understanding around the benefits of automated tech and how to access it at all, while many feel like they are spending too much time on manual tasks,” said Dext CEO Sabby Gill.

A third (33%) said they don’t have realtime visibility into their bookkeeping, while 40% feel like they spend too much time manually entering data. Half (49%) experienced stress completing bookkeeping tasks at least once a year, while 22% said they were stressed a number of times a month.

“With advancements in AI and machine

ON YOUR BEHALF

learning continuing to emerge, there is light at the end of the tunnel,” added Gill.

“Stress levels, like the ones found in the survey, can be reduced and time can be saved through automation, giving users the opportunity to focus on what really matters; growing their small business.”

IFA IN THE NEWS AND OUT AND ABOUT

PUBLISHED COVERAGE:

Accountancy Age

Diversification for small firms key amid tech advancement says IFA tinyurl.com/IFA-16803

Accountancy Today

Have you planned your exit from your business? tinyurl.com/IFA-16805

PQ magazine

Recent changes at HMRC

highlight the value in remaining agile tinyurl.com/IFA-16807

Why the training never stops: keeping an eye to the future tinyurl.com/IFA-16807

Scottish Business Insider HMRC changes: are you aware of them? tinyurl.com/IFA-16809

Financial services firms are embracing ‘intelligent’ automation. A survey by the Bank of England found that 72% of FS firms are using machine learning or developing their own applications.

SME concerns come on top of other headwinds. A June ONS survey of businesses found only 68% of those with ten or more employees were able to receive the goods they needed from within the UK without some form of disruption to the supply chain. Being unable to rely on deliveries can have knock-on effects for cashflow, it added.

REPRESENTATION

We were represented at the following during June/July: HMRC, including Agent Support Group, Charter Stakeholder Group and One to Many Compliance Advisory Board

Accountancy Intelligence

Sharing Expert Working Group

Anti-Money Laundering

Supervisors Forum

Accountancy AML

Supervisors Group (AASG)

Fraud Advisory Network

Office for Professional Body Anti-money laundering Supervision (OPBAS)

HM Treasury

Economic Crime

Legislation: Private Sector Legislation

Working Group

HMRC consultations

With your help, we’ve made public representation to HMRC on the following tax consultations:

Smarter regulation

non-financial reporting

review: call for evidence

Charities tax compliance

Construction Industry Scheme reform

The Tax Administration

Framework Review:

Creating innovative

Artificial Intelligence rules curb enthusiasm

BUSINESS DEMAND TO LEARN more about AI is here, but adoption faces headwinds.

Research among 3,000 business owners (of which 500 are UK-based) by Xero found that 64% believe emerging technologies such as AI will impact their business within the next five years. A quarter (24%) want to try out AI in the next 12 months.

However, 39% of UK respondents cite data privacy as an ethical challenge to

49%

Percentage of UK small business owners that would trust AI tools with identifiable customer information.

Source: Xero

change through new legislative pilots

Tougher consequences for promoters of tax avoidance

Off-payroll working: calculation of PAYE liability in cases of non-compliance

LEARNING

Students from LSBU, Anglia Ruskin University, KBM Training and FC Training attended June’s London conference.

Students from Aston University, Birmingham City University, KBM Training and FC Training

surmount in terms of AI adoption. A third of the global respondents want more training and resources to support AI adoption.

Alex von Schirmeister, EMEA managing director at Xero, said: “UK small businesses are recognising the benefits of AI but more knowledge, training, and regulation is needed to ensure the nation’s smallest firms are not left behind.”

Half (46%) aren’t currently taking any proactive steps towards AI adoption.

Aspects of training that will be required around AI include: identifying biases or inaccuracies (20%); creating policies and guidelines for employees (18%); and establishing procedures for an AI-related incidents (17%).

attended June’s Midlands conference.

Arrangements have been put in place with the University of Greenwich and Air University School of Management in Pakistan for graduates of specific accounting and finance programmes to have an agreed pathway to membership.

AROUND THE WORLD In-country meetings, online networking events and CPD webinars took place in Ghana, UAE and Pakistan.

NEWS IN BRIEF

Member survey winners

Thank you to everyone who completed the first IPA Group member survey. In total, 3,496 responses were received. This equates to an excellent 16.25% response rate. Congratulations to the following members who entered the prize draw and each win a £200 CPD voucher:

Agbagidah Christopher AFA MIPA; Kesaven Moonesamy AFA MIPA; Raphael Agyei AFA MIPA; Selwyn Korklin AFA MIPA; and Syed Mohammed Shoaib AFA MIPA.

Tougher to retire

More than two-thirds (71%) of the British public believe it’s tougher to retire than ever, while 63% believe their pension isn’t enough to retire on comfortably. More than half (56%) say they’re unable to contribute as much to their pension as they would like, according to Investing Reviews.

Subject to contract

Permanent employees would consider taking on a better-paid contractor role, according to Walters People research. It found 58% would be open to taking on a contract position. Janine Blacksley, director of Walters People, said: “With the rise of fully remote working and four-day week trials, it is no surprise to hear that professionals are rethinking how they carry out their day job.”

Taxing times

A tenth of SMEs are struggling to pay their tax bills, according to Premium Credit. It found that 10% said they were struggling to keep up, while 26% said they will struggle to pay tax bills in the next five years.

Pay review

Senior professionals are worried that spend management is out of control. Research by Payhawk and Insights For Professionals found that 36% of US and UK managers were either ‘extremely’ or ‘very’ concerned about the amount of corporate spending, while only 51% said their spend management was ‘very good’.

‘Tinyurls’ explained

The tinyurl web address at the end of news items, and elsewhere in the magazine, are short aliases for longer addresses. Type the tinyurl in your browser and press return.

Disciplinary outcomes

DISCIPLINARY COMMITTEE

HEARING 5 JUNE 2023

Mr Aloke Kundu AFA MIPA

Essex, UK

Complaint

The allegations were that Mr Kundu was convicted by the Snaresbrook Crown Court of being knowingly concerned in the fraudulent evasion of VAT and had failed to bring to the attention of the Institute any facts or matters indicating that he may have become liable to disciplinary action, in breach of Bye-law 11 (effective 1 January 2021).

Order

Permanently removed from the Register and costs of £1,964.96.

DISCIPLINARY COMMITTEE HEARING 13 JUNE

2023

Mr Arulkumaran Kandasamy

AFA MIPA

Gwent, UK

Complaint

The allegations were that Mr Kandasamy was disciplined by another professional body on 24 July 2019 and failed to accurately respond to a question in his annual member returns for 2020 and 2021 and consequently was in breach of Bye-law 13 (effective 1 April 2019) and Bye-law 12 (effective 1 September 2019).

Order

The Disciplinary Committee ordered a severe reprimand, reprimands, total fines of £6,500 and costs of £8,290.

DISCIPLINARY COMMITTEE HEARING 16

JUNE 2023

Mr Muhammad Kamran Aslam AFA MIPA

Yorkshire, UK

Complaint

The allegations were that Mr Aslam failed to provide timely handover information and respond to a professional clearance request, and failed to provide his full and prompt cooperation in connection with an investigation and consequently was in breach of Bye-law 11.2 (effective 1 January 2021) and the Fundamental Principle of Professional Behaviour in the IFA Code of Ethics (effective 1 March 2020) and Disciplinary Regulation 20.10.

Order

The Disciplinary Committee ordered a severe reprimand, total fines of £5,250 and costs of £4,560.

REGULATORY COMMITTEE MEETING 28 JUNE 2023

Mr Ishmael Bangura AFA MIPA

London, UK

Complaint

The allegations were that Mr Bangura breached IFA Bye-law 12.2 and IFA Membership Regulation 5.1(c) in that he failed to submit a firm return to the Institute by the prescribed date of 31 December 2022; and breached regulation 4.3 of the IFA Membership Regulations in that he failed to cooperate promptly and effectively with the Institute and its staff in respect of attempts by the Institute to undertake monitoring of his firm by way of the firm return required for 2023.

Finding

The Regulatory Committee found that there was a prima facie case to answer that rendered Mr Bangura liable to disciplinary action under IFA Bye-law 11.2(c) and (d) for breaching

IFA Membership, Member Firms, Affiliates and Students Regulation 4.3 and IFA Bye-law 12.2.

Consent order

Severe reprimand, fine of £3,000 and costs of £651.

Member details withheld

Complaint

The Regulatory Committee found the following alleged breaches proven: failure to carry out a firm risk assessment; lack of suitable policies and procedures; lack of adequate internal controls; failure to take appropriate measures to ensure that relevant employees given relevant training; failure to carry out client due diligence; and failure to provide information or documents requested by the Institute amounting to a failure to comply with Money Laundering Regulations 18, 19, 21, 24 (1), 27(1)(a), 28; and 66. It was also found that there had been a breach of Bye-law 12.2 in that there had been a failure to provide such information as is deemed necessary by the Institute for compliance and monitoring purposes.

Consent order

Severe reprimand, fine of £7,500 and costs of £651.

Member name withheld

Suffolk, UK Complaint

It was alleged that in connection with attempts by the Institute to undertake monitoring of a firm, the respondent failed to respond on a timely basis to communications from the Institute and/or failed to co-operate promptly and effectively with the Institute or any of its staff or Conduct Committees in breach of IFA Bye-law 11.2(d).

Consent order

Severe reprimand, fine of £2,500 and costs of £651.

NEWS IN BRIEF

Creative tax reliefs jump

The creative industries received a big bump in tax reliefs during 2021/2022, new statistics reveal. Some £1.66bn went to creative industries in the year to 31 March 2022, up 36% on the previous year. High-end TV reliefs made the biggest increase, jumping 131% to £829m; representing half of all creative sector payments made. Will Simpson, creative sector director at RSM UK said: “With high-end TV showing such strong results, this clearly demonstrates how the industry is moving away from feature length films to high quality TV series.”

Government launches SME climate hub

The UK government has launched a sustainability hub to support SMEs. The UK Business Climate Hub has been developed by the Department for Energy Security and Net Zero alongside the SME Climate Hub. It aims to provide ‘net zero’ advice for smaller businesses. → businessclimatehub.uk

Liquidations on the up

Corporate compulsory liquidations

reached 248 in July 2023, 81% higher than in July 2022. The number of registered company insolvencies during the month was 1,727, lower then the previous year (1,831). “The trend will continue to tick upwards despite the total number of insolvencies dipping last month – but most concerning is the number of compulsory liquidations,” said Colin Haig, head of restructuring at Azets. For more visit pages 20-21.

HMRC loses VAT recovery appeal

The Upper Tribunal has dismissed HMRC’s appeal against the First-tier Tribunal decision in the case of HMRC v Hotel La Tour Limited (HLT) (24 July 2023). Glyn Edwards, VAT director at MHA, says business and charities can now recover VAT which was previously thought to be non-recoverable.

→ tinyurl.com/IFA-16801

INHERITANCE TAX

Pandemic drives up IHT receipts

LIABILITIES FOR INHERITANCE tax (IHT) reached a record amount, up 16%, according to the latest figures from HMRC.

The IHT numbers for 2020/21 show liabilities at £5.76bn, an £800m increase on the previous year. The increase is linked to the rise in deaths during that period.

Some £15.7bn was transferred to surviving spouses and civil partners on death, a 21% increase on 2019/20. However, the number of UK deaths which led to an IHT charge fell slightly, by 0.03 percentage points, to 3.73%.

“While the headline rate for IHT is 40%, it’s interesting that the average effective tax rate for 2020-21 was 13%, lower than in the previous year,” said BDO tax partner Helen Jones. “As HMRC notes, this is due to the combination of tax-free allowances, exemptions and

reliefs used by taxpaying estates to minimise the chargeable portion of their estate.”

While questions are consistently raised about canning IHT, Jones pointed out that some 81% of IHT receipts come from estates worth more than £1m – therefore a mooted ‘wealth tax’ would seem pointless. “Arguably we already have one and it operates with a low administrative cost to HMRC.”

PAYROLL Tens of millions in fines for shoddy wages records

TENS OF MILLIONS of pounds in fines have been issued due to sloppy payroll procedures, according to the latest data analysis by MHR.

More than £75m in fines have been issued by HMRC for

incorrect or absent payroll reporting since 2020, with a quarter of that amount (27%) relating to 2022/23.

Anton Roe, CEO at MHR, called the fines “ridiculous and completely unnecessary”.

“Not only do employers save money by avoiding payroll mistakes, but they can also use technology to improve employee financial wellbeing, empowering them to take control of their income with options like early wage access or real time commission tracking.

“The knock-on impact can be huge when it comes to retention.”

How can finance leaders get the most out of the youngest members of their teams? Sally Percy finds out.

Working life can be tough for Gen Z accountants. Sure, they might be digital natives with youth on their side, but they’ve entered the workplace at a time of huge upheaval, in many cases following a disrupted university education. In the wake of the Covid-19 pandemic, they’re now having to get to grips with working environments that

A WORKPLACE THAT WORKS FOR GEN Z

either entirely or partially embrace remote working – a challenge that previous generations did not face when they first started work.

Gen Z are defined as having been born between 1997 and 2012, making the oldest members of this cohort a sprightly 26. As a result, they are generally among the most junior members of finance teams, which creates challenges for both them and their employers as organisations continue to adjust to new ways of working. “Gen Z accountants are the first cohort who are going to be working through the ‘new era of work’,” says Lorraine Twist, a director at recruiter Hays, specialising in accountancy and finance. “Many finance firms are still figuring out how their hybrid offering works, and what a hybrid workplace looks and feels like.”

Certainly, research suggests that

hybrid working is creating plenty of conundrums for employers to wrestle with — across all industries, sectors, and professions. A survey of more than 3,000 office workers in North America and Europe by Insights Learning & Development found that two-fifths (40%) identified a lack of social connection as one of the challenges associated with hybrid working. In addition, 30% felt disconnected from remote colleagues, while 29% found it hard to establish relationships.

“Our research found that hybrid workers struggle with ‘human’ aspects of remote and hybrid working,” explains Tanya Boyd, learning experience architect at Insights. “Many lament the lack of social connection and the opportunity to engage in casual conversations. They feel disconnected from colleagues and struggle to establish relationships with teammates. While these issues affect all generations, it is easy to see that they could disproportionately impact younger workers, who don’t necessarily have the workplace experience to fall back on in order to successfully navigate these challenges

GETTING GEN Z FROM A TO B… THE OFFICE VS HOME

Former finance director James Segal founded fin-house, a provider of finance teams as a service, in 2021. He has several Gen Z staff members and agrees that face-to-face interaction is critical to their development. His own team spends three days in the

and for whom the social side of work has always been so important.”

Challenges facing Gen Z

An obvious problem for young accountants starting out in a remote or hybrid working environment is that they may not have a suitable working space at home, regardless of whether they are living with parents or housesharing with friends. This can hinder their productivity and cause their managers to assume — unfairly — that they are underperforming. Another issue for young accountants is that hybrid and remote working practices can deny them the opportunity to ask important questions and effectively ‘learn by osmosis’ from their peers and managers.

“Sometimes it’s underplayed how much information you pick up from listening to someone answer a query on the phone,” says Judith Germain, leadership consultant and founder of The Maverick Paradox. “And it’s much easier to walk over to somebody and say, ‘I’m sorry, I don’t understand this’, than it is to pick up a phone or to try to book a meeting.”

On the topic of phones, these are

company’s London office and two working from home – and he’s noticed that his younger team members are more likely to raise queries when working in the office. “For us, it’s really important to have a base,” he says, “especially for people in the early part of their careers, so that we can train them and coach them.”

Segal also believes that fully remote businesses can “lose the vibe and the connection” that naturally arise when people come together.

“With Gen Z, if something in their life is affecting them, their work is immediately affected,” he says. “So, you need to build up relationships with them.”

High-quality work is vital in finance. So, junior team members invariably benefit from having convenient access to their colleagues. “In a profession where accuracy is important, having that opportunity to sense check work with your peers in the office can be very useful,” says Twist.

famously not a device that Gen Z feel particularly comfortable using – when it comes to speaking to other people, rather than messaging them, that is. In fact, research by Sydney-based CommBank and telecoms company More found that nearly half (49%) of Gen Z Australians feel anxious talking on the phone.

Perhaps surprisingly, for a generation that grew up with YouTube, Gen Z are not necessarily at ease with sitting on videoconferencing calls either. “A lot of people struggle with being on a video call,” says Germain. “Because it looks like you’ve got ten people looking at you. Older people have got used to it, but it’s quite nerve-wracking, especially if you’re a new person or you don’t know what to say.” (see box for more)

Providing support

Gen Z are renowned for their love of a good work-life balance. Indeed, research by the Graduate Management Admission Council found that they view a good work-life balance and job stability as two of the most important factors in their future careers. As a profession, finance is known for its long hours and tight deadlines, however – which poses a problem for finance leaders looking to attract, motivate and retain the younger generations.

Segal addresses this issue by underlining the fundamental importance of what his business does and the “massive knock-on impact” for clients if deadlines are missed or

bookkeeping or reporting are not done correctly. “We’re clear about our expectations,” he says, “and people’s careers go really far here. We open the door for them, and they can choose to walk through it. If they don’t, that’s on them. Quite a few people have not passed probation.”

Boyd has some practical suggestions for employers who want to help younger workers better acclimatise to the office and further their careers.

To begin with, she says, they should develop a robust preboarding and onboarding experience that ensures all new colleagues deeply understand the business’s purpose and strategy, its organisational and operational structures, and perhaps most importantly, its culture.

She also emphasises the importance of managers investing time upfront in introducing new employees to their new teammates, potential collaborators and key stakeholders. “Ensure they properly understand the role they’ve been brought in to do, their unique contribution and how it helps the company — and your customers,”

she says. “Help them get to grips with the communication channels and technologies, and cadence of meetings — including one-to-ones, and team, departmental, and company-wide meetings.” Additionally, she believes that managers should organise social gatherings, outside of work, to strengthen relationships and build a unified and cohesive community.

Germain suggests that when it comes to getting Gen Z up to speed in the office, employers should capitalise on their willingness to learn new things. So, while younger accountants will be undertaking technical training as a matter of course, they could also benefit from training in basic workplace skills such as writing business letters and emails, answering the phone, or knowing when or how to speak up in meetings. She adds managers should ensure they set clear expectations for Gen Z team members and provide them with feedback.

Within his business, Segal has motivated new employees by giving them dedicated projects to own.

“It might be as simple as writing a holiday handover policy or looking at how we can innovate using technology,” he says. “But it means they benefit from getting a start-up experience.”

Finally, finance leaders should embrace all the advantages that come with having Gen Z accountants in their team. “Gen Z bring some wonderful gifts and fresh perspectives,” notes Germain. “They’re entrepreneurial, they do their research, they bring in lots of new ideas, and they’re probably more up to date than you are.”

Segal echoes this positive view, saying: “If you hire right, you’ll get fantastic results from Gen Z.”

Sally Percy is a freelance journalist

Gen Z accountants are the first cohort who are going to be working through the ‘new era of work’

Ihave stressed that the number-one ability in a great leader is decision-making, and that to improve your decision-making, you should welcome the input of as many people as is practical. Which leads to my second key to leadership: being great with people. Which in turn leads me to that quaint Yorkshire expression, ‘There’s nowt so queer as folk’. Which summarises brilliantly the situation surrounding us all: People are weird and they do weird things; live with it. How do you know if you’re a good leader? Simple: People follow you. How do you know if you’re a great leader? People follow you over a sustained period of time. I have seen good leaders who are very introverted. I’ve seen leaders who are extroverts. I’ve seen very educated people lead. I’ve seen uneducated people lead. I don’t see that there is much that knits leaders together such that you can create that ‘leader recipe’.

Some people might believe that leaders are born, not made. Not me. Maybe someone’s inherent nature at birth plays some part in whether they can become a great leader, but I think just about anyone can succeed at leadership. This is truly a game without rules.

So please, don’t tell me that you’re not the ‘leader type’. If you want to be a good leader, maybe even a great leader, I believe you can be. If people follow you, then you’re the leader. I put decision-making at the top of my list of leadership qualities, but it’s not the most challenging to achieve. That would be dealing with people, trying to lead them where you want to go.

BE A BETTER BOSS

People are complex machines; you need to appeal to them intellectually and emotionally. Having a good balance between the two will help you to be a great leader—but a little imbalance can help. Some imbalance may even be necessary because some followers can be led more easily via intellectual links and others through emotional links.

A decision’s hidden impact

Here’s a situation for you. Let’s say one of your team members,

Diane, is a single mum with two little kids. Immediately, what does that say to you? Right; she is going to have particular needs: school appointments, sick days, and so on.

Diane, a good member of the team, comes to you one morning and says, “My little one, Jonny, fell down yesterday and chipped his tooth. The only dentist appointment I could get is this afternoon so I’ll have to leave a couple of hours early.”

She concludes by telling you that there’s no possibility of her making up

Leading does mean making decisions, but that doesn’t mean avoiding the opinions and thoughts of your co-workers. Henry Engelhardt explains how to garner views while maintaining control.

the time. What do you tell her? Before you answer, tell me what the issues are. What are the things going through your mind that will lead you to your response? OK, you’ve listed the issues, now tell me what you’d tell her? (We’ll come back to the issues in a minute.)

I suspect most of you would tell Diane “fine, take care of your family, that’s what’s important”. I suspect that because you’re a nice person who understands the problems single parents have, and why you must help your people, all your people, when they need your help. Good answer. But the wrong answer.

Now, what did you list for issues? No, the ‘issues’ aren’t about being able to cover her work for a couple of hours. That can be done (happens every time she goes on holiday,

doesn’t it?). The key issue is what the rest of the team is going to think. What is Chris, who doesn’t have any family commitments, going to make of this? What stops him from saying, “Hey, I too have to go to the dentist and I’m also leaving at 3pm and can’t make the time up. Ta-ta!” So, what’s the solution?

Opening up the question Well, it comes back to the Superwoman/ Superman complex: You are in charge, you made a decision, you told Diane and the team and that was it. I think there’s a better way, one that probably gives Diane the time she needs and avoids any potential problem with the other members of the team. My solution is to get the team, or part of the team, together, explain Diane’s situation and ask the team to come up with a solution.

I’ve taken the decision to the team, but note that I’ve only asked for a suggestion, not given them authority. There’s a possibility that they’d make a terrible decision that I don’t want to follow (it’s my back door). The team will likely say “let her go to the dentist and not worry about the two hours”. They’re likely to say this because that’s how they’d like to be treated in a similar situation, and because it’s

the right thing to do. But they might say “make her take unpaid leave because she’s pulling these kinds of stunts all the time”. That might be new information for you!

But the real beauty is that, assuming you follow the team’s suggestion, you now have buyin. And buy-in is a powerful force. If you had made the same decision on your own it opens it up for some team members to bitch and moan about how you play favourites and give special treatment to anybody with a little kid. This way, you didn’t make the decision, they did!

An added bonus: When you give the team buy-in, they feel that they have some control over their destiny. Rules aren’t dumped on them from on high—they actually have some say in how the team, department, or company is run. This approach might sound logical and easy, but it kind of goes against everything the buck-stops-here culture leads us to believe makes a great manager. Isn’t it just a sign of weakness to outsource decision-making? We live in a culture that tells us only the weak avoid making a decision. In truth, a smart leader does make the decision but gives the team input.

Henry Engelhardt is the founder and CEO emeritus of Admiral Group plc. He has almost 50 years’ working experience, starting with Poochie’s Hot Dogs at age 13. Originally American, Henry settled in Wales and he was awarded a CBE in 2008. Henry’s new book, Be a Better Boss: Learn to build great teams and lead any organisation to success is out now, published by Whitefox Publishing.

The real beauty is that, assuming you follow the team’s suggestion, you now have buyin. And buy-in is a powerful force

THEN “Getting the right staff in the right place with the right training at the right time is vital to your future success. They need to want to stay with your firm and be engaged with and add value to your clients.”

NOW “It’s not enough that there are opportunities for progression, or that people can see the firm grow. To make people want to stay you need to be explicit, outline career pathways and demonstrate progression.”

Ibelieve that growing your firm is quite easy. Scaling an accounting firm is much harder. It means working harder, living by its values, an openness to change and a lot more. Conventional accounting firms have to keep bringing partners on. While some firms manage to grow this way, it is potentially unsustainable. For us, the fact that as principals we don’t hold direct client relationships gives us a greater ability to scale.

We’re in a growing market. One of the challenges of recruiting is that the people you recruit need to deliver growth. Whereas the rigid hierarchy of a partnership model becomes unwieldy, and works only with indefinite recruitment or promotion of new partners to service new clients, our pod structure makes our business scalable, firstly because we’re delegating client ‘ownership’

SCALABIL STAFF AND

In an excerpt from his book The Human Firm, Will Farnell explains that moving out of the ‘nine-tofive mentality, and creating a more flexible working environment, will have the virtue of attracting people to join your firm.

and secondly to provide our clients with speedy access to the expertise they need.

Make the most of this recruitment from a marketing point of view, for clients as well as for new joiners. The thing many firms often miss is that they don’t treat recruitment as a marketing activity.

To avoid this lost opportunity, when you’re marketing for talent you need to get across the flexibility you offer along with the values that underpin your firm’s purpose, so that both potential team members and clients looking for an accounting firm that aligns to their values can clearly see that you do.

Yes, there is more flexibility now than there was pre-Covid, but the likelihood is that many firms are still very much office-based, which makes those firms offering some level of flexibility more attractive in the world we operate in now. Accountants are not generally good at adapting. While it seems bonkers to me, it often takes regulation or a significant event to catalyse significant change.

Covid and job flexibility

While many forward-thinking businesses – including accountants

and bookkeepers – were prepared to offer workplace flexibility pre-Covid, the pandemic has increased the expectation of staff that flexibility in both hours and location be given.

Farnell Clarke had already moved from a nine-to-five mentality to ‘do the job how you want as long as it gets done properly’. That gave us a unique advantage in terms of recruitment, because we were offering flexibility when other firms were not.

Don’t get me wrong, despite increasing flexibility for staff that has come as a result of Covid, most accounting firms are still office-based. They expect their teams to be in the office five days a week. They might not even have a choice, since flexibility is conferred by use of the right tech, and those using tech throughout the entire firm, are still in the minority.

It makes sense to create an internal structure within which people can recognise how they can be promoted and grow. Whilst we created pods at Farnell Clarke to serve the client better, we were careful in their design, ensuring that the pod structure serves our employees too.

For me, there is no better way of growing a team than internally. At Farnell Clarke, we create jobs so that people can move around and be promoted effectively. And while

we created the pods partly to serve the client better, they also mean people can see their potential career pathways within the firm.

So bringing people in, training them in the way that we want them to work and ensuring that they recognise the business is growing and opportunities are created all the time is one of the things we sorted years ago.

I discovered that Eriona Bajrakurtaj has an interesting perspective on staff training and the balance of flexibility and working from the office in a recent conversation: “Coming out of Covid, we did ask the team to come back a few days in the office, and a few days from home, because I do think fully working from home is not ideal. You don’t get that culture or camaraderie or — you know — training.

“Or if you need to ask something quickly, when you’re in the office, and say someone has a query, you will overhear what their issue is and how they resolved it. What we try to do is every two weeks we would have the team kind of send messages to one person say, ‘I’d like an update on this’ or ‘I’m not sure how to do that.’ We put a list together, and every two weeks we go through that list.

“Without saying who asked for it, we present it as a refresher, so that everybody gets that training. But it’s not as effective as being in the office. Hence, we’re never going to be fully working from home. We are always going to be a mix. We connect with each other via teams, and we try to be as friendly as possible, but it’s not the same as meeting with each other.”

Will Farnell is the founder of awardwinning accountancy firm Farnell Clarke, and author of The Human Firm (published by Sage). The book can be found on Amazon.com.

It makes sense to create an internal structure within which people can recognise how they can be promoted and grow

Financial pressures that were alleviated during the Covid-19 pandemic by temporary legal restrictions on creditor action and a boost to the economy from government handouts have returned with a vengeance.

A shortage of labour, upward price pressure, difficulties with imports after Brexit and higher interest rates are increasing businesses’ costs while dampening demand from consumers.

Accountants play a key role as preventive guards, identifying warning signs and suggesting pre-emptive measures. But how can accountants spot the red flags warning of their clients’ impending financial troubles?

The key tool is communication, according to Carl Reader, chairman of business advisory firm D&T. The warning signs of late payments, declining sales, increasing short-term debt, and tightening cashflow may not be visible if you are not in regular contact with your client.

“It all comes down to speaking with your clients, checking in with them and understanding not just what the historical data shows, but also the verbal comments the business owner makes that cannot necessarily be quantified,” Reader says.

Indeed, a key harbinger that a client might be in financial difficulty is when the client starts to go quiet, Bobby Lane, chief executive officer of multi-disciplinary outsourcing firm Factotum, suggests.

“If those clients that are historically good communicators start going quiet and burying their heads in the sand and not facing up to potential realities it is a warning sign that things are starting to go wrong,” Lane says.

It is important that your client knows you are there for them; rather

than merely as an agent of HMRC or Companies House. It is worth getting in touch and having an open conversation on a personal level to build trust and rapport.

This will allow them to open up and then have the necessary frank conversations about what is really going on, according to Reader.

“A great adviser is one who can have that empathetic conversation, having previously built rapport in a relationship and be able to sense what is going on in the client’s mind,” Reader adds. “There are flashy software packages, but until they have got that rapport the best software in the world can’t help these clients.”

Routes to safety

If accountants spot these warning signs, there are several proactive

steps they can take, ranging from cutting costs, streamlining inventory management, negotiating with creditors or finding alternative financing — through to the more extreme steps of restructuring the business or shifting its business model. But, like spotting the warning signs, accountants won’t be able to identify the problem areas unless they communicate with the client.

The most important advice an accountant can give to help navigate a client through challenging fiscal terrain is to put together a forecast and business plan, according to Lane. This will identify whether the business is having cash flow difficulties, but is otherwise profitable, or if the problems run deeper.

Lane advises putting together a realistic forecast that shows what the

THE SIGNS

Accountants’ technical know-how may help clients steer through choppy waters — but only if you’re in good communication with them, writes Richard Crump. READING

Image: Shutterstock

business can achieve moving forward, what an ‘Armageddon’ scenario looks like if everything goes wrong, and what potentially you would need to keep the business trading.

“It is important that it is realistic, honest, and not a wish list - but an analysis of the reality of the situation,” Lane says. “Then you are able to make informed decisions about what you should be doing with the business rather than gut instinct about what you think you should be doing.”

Call the IP

If none of that is achievable then the accountant must advise their client to seek advice from an expert insolvency practitioner (IP). Accountants may wish to avoid this route because they don’t want to lose the client, but it isn’t an option. Russell Nathan,

senior partner at HW Fisher, explains that accountants must consider referring their client to an insolvency practitioner when they become aware the client is potentially entering into contracts where they aren’t able to pay their creditors.

“We are the triage; we patch things up and if things get worse you have to call in the insolvency specialists. They will be in a much greater position to protect the company and the employees in regard to its insolvent position,” Nathan said.

Reader said he advises clients to speak to an insolvency practitioner “sooner rather than later”. His firm has built relationships with IPs so that his clients are comfortable to have a conversation some 12 months before they are legally required, if needed.

“It helps reassure the business owner of the process and what the ramifications would be should they go down that route,” Reader explains.

Many of the more reputable insolvency practitioners offer corporate finance services to try and raise funds in a way the business owner may not be able to, as well as restructuring advice. It is valuable for the adviser to be involved during the process as well.

“The accountant might typically fear that by handing it over to an insolvency practitioner, that is them then out of the picture and they might never get paid,” Reader says, but working with an IP who is looking not just to charge for insolvency but prepared to help “in the spirit of a relationship with the accountant”, will put you in a good position to support clients in avoiding the worst-case scenarios.

Richard Crump is an accounting and legal journalist

RESEARCHING THE RULES

This spring heralded major changes to the research and development (R&D) regime, following the British government’s concern about the effectiveness of the tax reliefs. From 1 April 2023, the rates changed for R&D expenditure incurred on or after that date.

For the Research and Development Expenditure Credit (RDEC) scheme, which is mainly used by large

companies, the rate increased to 20% from 13%; while for SMEs, the additional deduction decreased to 86% from 130%, and the SME tax credit rate shrank to 10% from 14.5%. But these aren’t the only changes — and there are more to come.

Following the review of R&D reliefs launched in the 2021 Spring Budget, the government has already “taken many steps to reduce the costs of the UK’s R&D scheme to get better value for money,” observes BDO innovation

incentives partner Carrie Rutland. However, the release of HMRC’s 2022/23 accounts in July showed an estimated £1.1bn lost to error and fraud in R&D tax credits claimed under the SME scheme in 2020/21. This figure is equivalent to 16.7% of claims across both the SME and RDEC scheme, and significantly higher than HMRC’s previous estimate of 3.6%.

Rutland says “it’s no great surprise HMRC is keen to clamp down on noncompliance”, adding 300 new officers

With the R&D regime overhauled so HMRC can clamp down on abuse, Santhie Goundar talks to experts about the current state of play.

to its R&D team.

Justin Arnesen, R&D tax partner at Evelyn Partners, says HMRC’s report “highlights the size of the problem [it] is tackling” in its attempts to combat fraud and error within the system. “Concern over abuse and boundarypushing has grown in recent years,” he says.

As well as doubling the number of people working on R&D compliance, Arnesen notes that HMRC set up a dedicated R&D Anti-Abuse Unit to

THE NEW ADDITIONAL INFORMATION FORM

From 8 August it is mandatory to include the following on an Additional Information Form before submitting a corporation tax return to HMRC: Project details –the scientific or technological advances, uncertainties, baseline, and activities undertaken. Project costs –including details of qualifying indirect activities.

Holmes advises businesses should: Maintain robust recordkeeping –businesses should be able to discuss all expenditure on a project-by-project basis. By having project information captured and readily available, firms can complete the form more easily. Start the process early – the new claims process is more demanding and timeconsuming. Avoiding

target unscrupulous advisers and fraudulent and erroneous R&D claims.

Pre-notification and additional information

Along with the rate changes in the two schemes, HMRC brought other changes in earlier this year to combat fraud and error, increase tax yield and modernise the relief. New claimants with accounting periods beginning on or after 1 April 2023 need to pre-notify HMRC of their intention to claim R&D.

Nigel Holmes, tax director of Catax, notes that from 1 April new items of expenditure now qualify as R&D: “Data sets, cloud computing costs, and pure mathematics are now claimable,” he says, “and there is a new concept of ‘loss-making R&D-intensive SME companies’ who will be impacted less by the rate changes.” Loss-making R&D-intensive companies are those whose qualifying R&D expenditure constitutes at least 40% of total expenditure.

From 8 August, a new requirement for R&D-claiming companies to

a last-minute rush can prevent firms making silly and costly mistakes. If using an adviser to complete a claim, consider the time needed to provide more information. Consider speaking to an R&D specialist – some advisers may have made only a handful of claims before without an accompanying report or comprehensive narrative that’s now expected from HMRC.

submit an Additional Information Form to HMRC was introduced. The form is submitted through a new online portal, separate from the corporation tax return, and should be completed before or at the same time as the corporation tax return.

As Lucy Lloyd, R&D specialist at Kilsby Williams, explains: “The Additional Information Form requires businesses to collect claims and cost data at a much more granular level, with different data headings and on a project-by-project basis. Failing to submit the form… [will result in] claims automatically being invalidated with no method of reinstatement.”

Nigel Holmes says record-keeping is more important than ever:

“Businesses should keep records of both costs and projects – R&D should involve systematic planning, so do document it and retain it,” he advises.

“With the requirement to complete the Additional Information Form from August onwards, the need for every claim to include details of projects and costs broken down by project

is a massive step-change for those advisers who never used to provide project narrative.”

Draft legislation

HMRC says the April 2023 reforms ensure that taxpayer support is as effective as possible and improve the competitiveness of the RDEC scheme, adding that the reforms are “a step towards a simplified, single RDEC-like scheme for all” — and released draft legislation in July containing this and other proposals, with a consultation deadline of 12 September.

It is unclear at the time of writing if HMRC intend for the changes to take place on 1 April 2024 as HMRC previously suggested, but Rutland says such change would be “too far, too fast” if implemented at that time, and calls for them to be delayed until at least 2026 “so they don’t damage the R&D investment the relief is supposed to support”.

“Given all the changes, creating more uncertainty by changing the R&D regime could risk turning innovative businesses away from investing in the UK,” Rutland says.

The draft legislation does include

design proposals that many will welcome, she adds: “The original proposals on who claims relief where R&D work is subcontracted could have caused problems for maany businesses — the draft legislation allows outsourcing costs to be claimed where the work is outsourced to a UK company. But the most significant downside is the new rule that any R&D project which is subsidised (including grants) cannot be included in a claim.”

Mark Smith, partner of innovation incentives at innovation consultancy Ayming, believes the draft legislation’s proposals would be “a major setback”, even though on the surface, merging the two R&D schemes “represents a welcome simplification of the system”.

“The government plans to merge the two R&D schemes, expanding the cost rules of the SME scheme to apply to businesses of all sizes, will prevent claims for subcontracted R&D. This

means the companies that are doing the R&D won’t be eligible to receive the funding for it,” Smith says. In particular, it would raise problems for subcontractors in the construction industry, where (for example) a subcontractor carrying out R&D would not be able to access funding from tax credits, while the company engaging them can.

However, Richard Turner, senior managing director in FTI Consulting’s UK tax practice, is more positive. “The proposed changes represent a move towards a more coherent framework to provide incentive for companies to develop new science and technology here in the UK, and for the UK to be a key player in the knowledge economy,” he says.

Justin Arnesen wants improved guidance to be released alongside any new legislation:

“Considerable changes are required to guidance on both qualifying and non-qualifying activities: for example, the R&D guidelines have an example [regarding] a DVD player — an obsolete technology,” he points out. While HMRC will share a further update in winter 2023, he adds, “given the two-year time lag on estimates, we may not know for some time whether these measures have had a meaningful impact. Additional measures, such as requiring additional information directly from advisers, or an annual adviser audit, may need to be considered.”

Santhie Goundar is a freelance journalist

Concern over abuse and boundarypushing has grown in recent years

Welcome to new members & new fellows

We welcome new IFA members who joined in July/August and congratulate our new fellows

New members

Mr Michael Abayomi IFA AIPA

Mr Ronald Abbey AFA MIPA

Mr Mohamed Abdinur AFA MIPA

Mr Kasun Abeysinghe AFA MIPA

Mr Muhammad Adil AFA MIPA

Mr Ahmed Adnan AFA MIPA

Mr Bilal Ahmed AFA ATA

Mr Emmanuel Aidoo AFA MIPA

Mr Abbas Ali AFA MIPA

Mr Wasif Ali AFA MIPA

Mr Bello Aliyu AFA MIPA

Mr Zeeshan Ameer Ali AFA MIPA

Mr Ahmed Amer AFA MIPA

Mr Muhammad Amin AFA MIPA

Mr Muhammad Nazim Ansari AFA MIPA

Mr Harish Arora AFA MIPA

Dr Joseph Asantey AFA MIPA

Ms Numra Azhar AFA MIPA

Mr Vincent Azumah AFA MIPA

Mr Mohammad Bachir IFA AIPA

Mr Eric Baffoe AFA MIPA

Mr Simion Barcari AFA MIPA

Ms Sylvia Bedzrah AFA MIPA

Mr Nouman Rashid Bhatti AFA MIPA

Mr Muhammad Choudhary AFA MIPA

Mrs Mokshada Domah-Booneeady

AFA MIPA

Mr Selorm Dzah AFA MIPA

Miss Zubaria Ejaz AFA MIPA

Mr Muhammad Faheem AFA MIPA

Mr Mihidukulasooriya Shawn Fernando

AFA MIPA

Mr Sheraz Ghrew AFA ATA

Mr Shoaib Ghulam AFA MIPA

Ms Felicia Gnananandarajah AFA MIPA

Mr MD Tofazzel Hossain AFA MIPA

Mr Mirza Muhammad Taimoor Hussain

AFA MIPA

Miss Sana Ifzal AFA MIPA

Mr Qaisar Iqbal AFA MIPA

Mr Edward Jacob AFA MIPA

Mr Suman Jawed AFA MIPA

Mr Vinu Kattathuvalel Mathews AFA MIPA

Ms Tala Khalifeh AFA MIPA

Mr Khursand Khan AFA MIPA

Mr Rai Shahzad Kharal AFA MIPA

Mr Mohammed Abid Khatri AFA MIPA

Mr Saad Khattak AFA MIPA

Mrs Monika King AFA MIPA

Mr Liyanapathirana Arachchilage

Liyanapathirana IFA AIPA

Mr Ghulam Mahar IFA AIPA

Mr Hasan Mahmood AFA MIPA

Mr Syed Makhmoor AFA MIPA

Mr Thembelani Mangena AFA MIPA

Ms Paula Maynes AFA ATA

Mr Sajid Mehmood AFA MIPA

Ms Uzma Muneer AFA MIPA

Ms Denair Munroe IFA AIPA

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Mr Richard Partington AFA MIPA

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Ms Elena Pickup AFA ATA

Mr Eric Pinto AFA MIPA

Miss Mercy Quarm AFA MIPA

Mr Diyan Rajakaruna AFA MIPA

Mr Faizan Rana AFA MIPA

Mr Abhishek Rastogi AFA MIPA

Mr Muhammad Raza AFA MIPA

Mr Curtis Robb IFA AIPA

Mr Kalin Samarasinghe IFA AIPA

Ms Tabitha Sewell Sands ATA

Mr Godfred Kofi Sosu AFA MIPA

Ms Gergana Stoyanova AFA MIPA

Mr Issahak Sumani AFA MIPA

Mr Mian Tayyab AFA MIPA

Mr Subhash Thachedath AFA MIPA

Mr Solomon Tome AFA MIPA

Mrs Thu Nga Tran AFA MIPA

Mr Samuel Wilkinson AFA MIPA

Mr Shahrukh Yousuf AFA MIPA

Miss Sarwat Zafar AFA MIPA

Mr Dao Zela AFA MIPA

Mr Sabine Ziadé AFA MIPA

New fellows

Mr Nooral Ahammad FFA FIPA

Mr Mohammad Iqbal Ghori FFA FIPA

Mr Sajid Javid FFA FTA

Mr Eliezer Koramoa FFA FIPA

Mr Isaac Osei FFA FIPA

Mr Akter Uzzaman FFA FIPA

As a professional, networking is a must. We need to connect with others to build our businesses, win clients and make useful contacts. Some people, of course, love the opportunity to jump into a networking event, but others are more reticent.

If your personality is such that you don’t relish the idea of networking, remember that connecting with others and impressing them is rooted in our evolutionary need to forge bonds successfully; essential for survival in prehistoric times. Nowadays, career success depends on gaining professional and social validation; it is something we can become comfortable with.

Let me share some tips for enhancing your professional networking and making that all important positive first impression.

Try the microphone technique

An effective way to make a first strong impression with an important group is to use the microphone technique. When introducing yourself to the group imagine standing on a stage (or on live radio) with a microphone. This mental exercise helps in two ways: first, you are likely to speak in concise sentences with a better selection of words, and second, your voice and cadence will sound more measured. You will be surprised to see how employing this technique purposefully can instantly prime your audience to tune into what you have to say.

Use your hands to communicate

An analysis of TED talks a few years ago revealed that the most viral speakers used an average of nearly

465 hand gestures. The least popular speakers, on the other hand, used half as many. Even with the sound off, speeches with more hand gestures received higher scores from test volunteers on trustworthiness and charisma than those with fewer gestures. In another study, researchers found that using hand gestures increased the value of the spoken message by 60%. Combining verbal and non-verbal cues enhanced information processing and recall.

When engaging at a networking event allow your hands to complement your spoken communication. Hands indicate intention. Using them effectively and purposefully can help establish trust and credibility with your peers.

Get names right

Our workplaces and social circles are becoming increasingly diverse. Shifting attitudes towards culture and identity in recent years means

FIRST CONTACT

Making first impressions, delivering clear messages, interpreting others’ messages. Nishtha Chugh sets out key techniques and strategies to help you play the communication game.

Image: iStock

a growing number of people from diverse backgrounds are choosing not to anglicise their names in our predominantly English-languagedriven workplaces. People like to hear their names, or at least see peers make an effort to spell or pronounce them correctly. It helps affirm their existence and reinforces their sense of self. By proactively asking a person to help you with the pronunciation of their unfamiliar or challenging name can be the simplest yet most powerful way to show respect and establish positive association. It’s worth remembering that requesting people to repeat their names is still more polite than asking them for a shorter version or nickname.

Power pause

What are your most memorable movie scenes or speeches? Would you describe them as powerful and moving? Watch them again and you will notice that their impact, in all likelihood, is down to the well-timed pauses in their delivery. Pausing before and after important ideas helps to create emphasis and significance. This not only allows the audience to absorb the message more intently it also makes the speaker appear more confident and powerful. So even when speaking to one person use the power of the pause.

Let your eyes listen

Positive first impressions and interactions do not consist of confident verbal and non-verbal speech alone. Constructive engagement in small groups, like those in the networking events, also depend on your ability to listen effectively. At Toastmasters International, we emphasise the need to develop listening skills as

much as speaking skills. To establish a connection with your group, it’s important that you listen not just with your ears but your eyes too. This means active and attentive visual listening by paying close attention to the person you want to build a rapport with. Making eye contact with them, observing their posture, facial expressions, and body language will help you gain insights into their intentions and emotions.

Make yourself memorable

Events like networking require repetitive and seemingly mundane exchange of basic information such as names, vocation and interests. In professional settings people often baulk at the idea of saying anything unusual or adding ‘colourful’ details when introducing themselves. But these elements are exactly what can make you stand out, appear instantaneously interesting and leave your peers with something to remember you by long after you’ve met them. The key is to do it skilfully and within context.

When giving a university commencement speech Steve Jobs once introduced himself by saying “Truth be told, I never graduated from college.” Steffi Graf, one of the tennis greats, once began a conversation with: “I’m Steffi Graf, and my backhand is so fierce that it has its own fan club.”

Incorporating a professional anecdote, a humorous fact or surprising statement into your introduction can be a powerful way to make a positive impression. Use these tips and your time at networking events will pay dividends.

Nishtha Chugh is a member of Toastmasters International

An effective way to make a first strong impression with an important group is to use the microphone technique

It is widely acknowledged that providers of traditional accountancy services are being squeezed by the digital revolution. What does this mean? If you stand still, how will your practice be impacted? What are your options? What are the steps you need to take to build a sustainable business? These are a some of the strategic challenges many members are facing. Evolving your accountancy practice into one that serves as a ‘strategic adviser’ is one way to add value for both your clients and that of the practice itself.

The challenge is no longer emerging, it’s here

The digital revolution is now an integral part of every-day business and personal life, that much is obvious. We all recognise that the provision of compliance services is becoming increasingly automated or moving fast in that direction. This results in streamlined processes which reduces some of the ‘grunt’ but also much of the traditional value-add of the practice.

Just stop and think for a moment. Consider what has happened in

the last ten years and ask yourself: what might the next few years bring in this fast moving, ever changing digital age? What will robotics and artificial intelligence (AI) bring to our business world? How will technology companies exploit their position?

If your business is engaged in standard and repetitive, compliancerelated, activity then ongoing digital transformation is likely to become an ever-increasing threat to your practice and the same holds true for many of your clients’ businesses. Doing what you have always done is always an option and building a higher-volume, lower-value, business model might work for some. However, many of you are already taking action, or at least reflecting on what this means, and

taking steps to re-balance your practice.

Turning a threat into an opportunity

Are we doomed? Not at all, there are great opportunities ahead.

Many members are already reviewing their client offering and how to build on the many strengths they have, such as:

You are knowledgeable about business; you understand its good points and bad.

You are most likely already viewed as a trusted adviser by your clients. You have great insight into your clients’ businesses and their challenges/opportunities.

You probably already have a network of professional contacts in your local area.

Building on both your existing professional strengths and local business network or ecosystem, many of you have already moved into a form of business advisory. However, we know there are many of you who are seeking support in taking such a step, or indeed may need some guidance to help develop your advisory approach.

Part two of this series will cover setting an action plan in place. Purchase a licence for the new ‘Six Steps to SuXcess’ online strategic planning course, approved and accredited by the IFA.

To find out more contact Duncan M Walker FFA FIPA at duncan@ duncanwalkerpartnership.com.

If you want to survive, do you need to change?

In the first of a three-part series, IFA fellow Duncan Walker outlines why developing your practice to provide deeper and more valuable advice is both necessary and possible.

VIEW

Describe yourself to us

I retired from the Royal Navy as a chief petty officer in 2002. During my 35-year career I served on minesweepers, frigates, aircraft carriers, nuclear submarines and almost every type of warship. I had many shore bases at home and abroad, including a memorable tour in the defence section of the British Embassy in Moscow from 1992 to 1996. After the navy, I did a three-year stint as a golf club secretary then joined a Royal Navy charity as IT & finance manager, where I remained until 2016 when I joined the IFA.

What is your role at the IFA?

I am part of the membership team, working closely with business development and compliance, assessing applications for membership and preparing them for final approval.

What is the most interesting part of your job?

Without doubt, dealing with the many and varied queries received. I enjoy bringing them to a satisfactory conclusion.

Most embarrassing/funny moment in your career?

At a garden party for the visit of Princess Anne and her husband, when serving at our Embassy in Moscow, the Princess asked me: “what is the biggest difference you find between living here in Moscow and back in the UK?”. When I answered truthfully “I get paid more Ma’am” she laughed… though my late wife Lesley didn’t find it so funny.

OUR STORY

but, when we returned to Moscow two weeks later having completed our task, I felt so proud to have been a part of this amazing experience.

What is your favourite food?

This is a toughie, as I have travelled quite a lot in my time. But, if I must choose, it would be for pan-Asian food. When I was a youngster in the early 1970s and posted to Singapore, I discovered street food.

Who is your role model, in life or in your career and why?

What is the most memorable/rewarding moment in your career?

There have been many, but I must pick one from my military career. When the republics of the USSR broke up during Perestroika, it became necessary for the British ambassador in Moscow to present his credentials to all these new countries.

At six days’ notice I had to organise a flight to tour all the ex-satellites with the ambassador and secretaries, including arranging the aircraft, fuel, accommodation, and provide personal protection. It was exhausting

This one is easy — my father. He gave me all the values and life skills I needed to get by in the crazy life I chose by joining the Royal Navy. Even after flying the nest at 15, he continued to help and advise when needed.

How do you spend time away from your role?

My pastimes are fairly simple. I like to sing in any genre — choirs, folk music and even karaoke! I also like to dine out with friends.

Why is the future bright with the IFA?

During my seven years with the IFA, I have seen many innovations and improvements in the way we do business and assist our members in the way they do business. This, combined with the incredible team spirit within our organisation is the reason we have a bright future.

BOB MILLARD

From the surf of the seas to the turf of the golf course, IFA membership executive Bob Millard uses his experiences to advise potential members.

ONLINE

Costing and pricing

IFA technical manager Matt Barton will provide you with a detailed understanding of different approaches to costing and pricing that you can use in business, to advise clients, or for your own practice.

29 September | 10am-12pm

CPD hours: 2

Price:

IFA members - £55

Non-members - £79

AML Matters

Our programme of practically focused webinars support and help build understanding of anti-money laundering requirements for members and accounting professionals.

How to create policies and procedures

Looks at the regulations and the shared areas members struggle with regarding the writing of policies and procedures.

4 October | 9.30am-12pm

CPD hours: 2.5

Price:

IFA members - £70

Non-members - £90

How to conduct a risk assessment

Develop a firm and client risk assessment form and discuss when EDD is required and what it includes.

1 November | 9:30am-12:00pm

CPD hours: 2.5

Price:

IFA members - £70

Non-members - £90

IFA International Conference Online

Covering a broad range of

internationally relevant topics chosen to meet the needs of those working in MSMEs and SMPs, the educational sessions will be presented by respected industry specialists.

9 November | 9am–4pm

CPD hours: 6

Price:

IFA members - £55

Non-members - £75

IFA

Tax series

Focusing on tax topics relevant to small business, our quarterly series features speakers who are experts within the industry. The webinars run across three weeks and last two hours each.

Quarter 4

16, 23, 30 November

CPD hours

Per quarterly series: 6

Bundle: 24

Price per quarterly series

IFA members - £109

Non-members - £130

Price per bundle: (24 webinars)

IFA members - £390

Non-members - £468

Financial Reporting Quarterly Update

Preparing financial statements and annual statutory accounts is a constant part of an accountant’s role — especially those working for a small business or advising them. Matthew Shaw updates the changes in financial reporting requirements, and any small changes in the accounting treatment of different areas.

Quarter 4

6 December | 10am - 12pm

CPD hours

Per quarter: 2

Bundle: 8

Price per quarter

IFA members - £55

Non-members - £79

Price per bundle (four webinars)

IFA members - £198

Non-members - £284

FACE-TO-FACE

Regional Networking Meetings

Northern Ireland | 21 September | 2pm–5pm

Dunsilly Hotel, 20 Dunsilly Road

Ballymena, Northern Ireland BT41 2JH

CPD hours: 3

Price: Free

South-west of England & Wales | 26 September | 5.30pm-7:30pm

WEBINARS AND MEETINGS

started their own practice.

24 October | 9.30am - 3.30pm

IFA head office, Farringdon, London

EC1R 0AT

CPD hours: 5.5

Price:

IFA members - £99.00

Non-members - £129.00

Visit ifa.org.uk/cpd for more information about events and to register.

The IFA Diploma in IFRS for Accounting Professionals

The diploma will give you a solid grounding in the background, principles and application of the IFRS framework, develop your understanding and working knowledge of IFRS and give formal recognition for your skills.

Designed as an international qualification the short and intense programme gives you access to:

Interactive training either online or face to face.

Trainer presentations. Comprehensive study material which includes handouts, presentations and practice assessments.

Comprehensive question and answer bank provided by the IFA. End of programme final assessment. Qualification certificate upon successful completion.

The Bristol Golf Club, St Swithins Park, Blackhorse Hill, Almondsbury, Gloucestershire, BS10 7TP

CPD hours: 2

Price:Free

London | 11 October | 6:00pm–8pm

London South Bank University Business School (Explore room),

Borough Road, London, SE1 0AH

CPD hours: 2

Price: Free

Starting out in practice

Our focused, engaging and very insightful workshop supports members and accounting professionals who are thinking about setting up or who have

CPD hours.

The diploma is available through our accredited training providers in Pakistan, Peru, and Lithuania and you can choose which provider you study with.

Find out more about the diploma at ifa.org.uk/learning/dipifrs

Maintaining your continuing professional development couldn’t be easier, wherever you are.

NORTHERN IRELAND

Positive signs for N. Ireland

REGION IN FOCUS: NORTHERN IRELAND

Without an operational government in place in Northern Ireland, plans to raise revenues and introduce cost-cutting measures - prepared in a briefing by civil servants, have caused further political ire.

While some see the move as a method to force the DUP back into power-sharing at Stormont (pictured), Caoimhe Archibald of Sinn Féin said the move would be harmful to people, reported the BBC. DUP leader Sir Jeffrey Donaldson said the plans should be left to an incoming executive.

Tell us about your roles and responsibilities –has anything changed since we last spoke over a year ago?

Practice-wise at BMG Accountants and Tax Advisors we’re very busy. We’re continually picking up new clients, which keeps surprising me. Post-lockdown, I thought it would fall off a cliff, but it’s been quite the opposite.

What is the current business and economic climate in Northern Ireland?

One sector getting it tough in Northern Ireland is the hospitality sector — lots of prominent cafes and restaurants have closed.

More generally there’s a mixture of things — some sectors are doing very well: the construction sector seems busy; and trades such as plumbers and electricians too. They’re booked out till the end of the year. People have become more comfortable in their own surroundings at home and looking to improve. However, that means leisure and hospitality suffer — particularly

with rising costs. We’ve also had a period in Northern Ireland of not having any government at all. That has impacted us severely in terms of budgets being cut by the central government.

How does the IFA work with business, people and the local community?

The main thing for us has been getting back into face-to-face meetings. Those that are online work very well in terms of CPD and training, but people are glad to get back together - particularly sole practitioners.

In the past we had longer presentations during our face-to-face meetings – now the emphasis is a bit more towards networking and shorter presentations. Our last meeting had a session where we went around the room gauging their thoughts; things that had worked for them in their business, and where they had challenges. The feedback was great, and that was a really useful way to structure the session. We also have a WhatsApp group: recently I had a query about a client and someone on the group helped me out, which was great.

The Northern Ireland Purchasing Managers’ Index fell to 48.2 from 52.5 in June, its first fall in six months. Quoted in the Financial Times, Richard Ramsey, chief economist for Northern Ireland at Ulster Bank, said: “The dark cloud of no Stormont executive looks set to remain anchored over the economy for the foreseeable future.”

Whiskey production has restarted in Belfast for the first time in 90 years. Titanic Distillers has invested nearly £8m in converting the Thompson Dock and Pumphouse in a distillery, reports the Belfast Telegraph.

Belfast law firm Mills Selig has completed the first stage of renovating its Arthur Street premises, and is celebrating its 65th year of business.

A £2.25m surgical facility has been opened in Ballykelly by Kingsbridge Healthcare Group. The Kingsbridge Eye Clinic will create ten new jobs.

Although some businesses are finding it tough, Bill McGregor is pleasantly surprised by Northern Ireland’s performance.

Image: iStock

We spoke two years ago. What has changed in your life and career?

Over the period, a lot of changes. My work portfolio has expanded: I am managing diversified areas at group level i.e. IFRS, compliance, digitalisation, SAP, and M&A. Recently, as an M&A manager, I concluded a fully-fledged engagement; managing to set-up/acquire three different companies in different countries.

What has happened in that time working with the IFA?

The number of IFA and IPA members are growing rapidly. My focus is not only on growth, but also professional development of existing members. We continue to explore ways to provide support and training to members and students, whether this be with education, or other forms of accounting and technical learning.

Since we last spoke, what has happened in Saudi Arabia and Bahrain?

The Saudi Arabia and Bahrain accountancy markets are becoming more regulated. The Saudi Organization for Certified Public Accountants (SOCPA) is regulating

US$1.1trn

S $ t S FACTS AND STATS

YOUR WORLD

Not only is Sulman Ihsan juggling multiple responsibilities within work, but is

regional representative for both Saudi Arabia & Bahrain.

Saudi Arabia

GDP in 2022 36m

Saudi Arabia

Population in 2022

Saudi Arabia has signed a $1.3bn deal with China for the building of housing, real estate and infrastructure. The deal was agreed during the Saudi-China Business Forum in Beijing. Reports suggest that

2.3%

Saudi Arabia

Inflation in July 2023

the UK prime minister Rishi Sunak has invited Crown Prince Mohammed bin Salman for his first visit to the UK since journalist Jamal Khashoggi’s murder at the Saudi Consulate in Istanbul in 2018.

all the accounting bodies, and all the professionals must register with SOCPA. The IPA Group is registered with SOCPA. IFA and IPA fellow members can directly get their membership of SOCPA.

Have your thoughts on doing business in these countries changed since we last spoke? Both countries’ economies are being driven by vision. The governments are constantly enacting new policies for ease of doing business including the SME sector.

You have a series of webinars planned for members, can you tell us more?

We are organising an IFRS webinar series to help keep members up-todate and across new developments. We have already presented on IFRS 9, 15, and 16.

What is the future of the IFA in Saudi Arabia and Bahrain, and why?

The IFA, being internationally recognised and a full member of IFAC, can support the delivery of qualified accounting professionals to Saudi Arabia and Bahrain. The outlook is very optimistic.

US$44.4bn

Bahrain

GDP in 2022

1.5m

Bahrain

Population in 2022

Bahrain is looking to build walls that would hold off the threat of coastal erosion. A rise of five metres would swamp the country, reports Arab News. Further inland, Bahrain has launched its largest

0.7%

Bahrain

Inflation in April 2023

solar power project. Situated in Sakhir, the project would generate 72 megawatts, 28% of the nation’s target of 250 megawatts from renewable sources by 2025, reports Bahrain News Agency.

SAUDI ARABIA & BAHRAIN

In a practice, the COO, Martin, recommends the firm acquires a suite of AI training courses for all employees to undertake as required CPD. However, he meets with strong objections from other executives.

They ask, ‘Why would the firm need to upgrade staff ’s AI skills when they have been using Microsoft products for years?’

Martin is frustrated. He believes that AI is upon us, and there are ways the firm will benefit from using AI properly for its services including opening up new markets to the firm. Besides, staff need to brush up on the latest technology.

The dilemma is Martin is always a compliant person. He feels misunderstood. The objections may come from the traditional view of the executives being more concerned about staff costs. He believes the benefits to the firm outweigh the costs. However, he has to be careful not to openly disagree with the executives as he relies on the group’s support.

The positive case

He considers why and what do staff need to learn about AI? Is the current practice sufficient for the present and future needs of clients? What is the rationale of using AI? He finds that with some of the AI products such as massive data analytics and generative software, client evaluations etc, can provide the firm with quality and exact solutions, on scale, and in real time.

The firm wants to develop a capability of integrated reporting but none of the staff know how to identify the value-adding capitals, or how to assess investments and returns on these capitals. With

MEMBER SUPPORT

How do I build a case for AI in my fi rm?

some powerful AI-assisted analytic tools, he will be able to decompose and reconstruct the different functionalities within the firm, its key capitals, and critical value factors. This will help the staff ’s capability in integrated reporting.

Guardrails

Martin also applies a risk approach. What are the risks of not proceeding with training, especially when other competitors or clients continue to get better with their technologies? Accounting has grown into a multi-disciplinary ecosystem that requires the understanding of not just technical financial reporting, but risks, governance, cyber security, and sustainability. More importantly, accountants need to provide a well-founded narrative in real time for stakeholders. He puts forward an example

of an old client, a construction company, which is keen to adopt more sustainable materials, wants to use some advanced tools for site measurement, and other facilities evaluation that it cannot do at present. An AI-facilitated service will help this client choose and evaluate the right tools, besides learning the latest development in construction.

Martin is confident with his analysis: the rationale, the firm’s direction with its current business environment, the types of AI that will benefit both the firm and clients, and a plan of how to roll it out so that staff will not feel threatened. The investment has become something not only worth a try, but a must.

The executives also felt it was time to accept the challenge.

Philomena Leung is the IPA’s director of education

Tax relief

Catax

Catax are experts in specialist areas of tax relief. They have been helping clients secure tax relief for 10 years and have identified over £204m in tax benefit for their clients to date.

The average client benefit for capital allowances is £47k and the average for research & development and the Patent Box is £51k. We break down the claims process for you, so all your clients need to do is provide us with some

details, and we’ll take care of the rest. There are no complicated forms to fill out, no legal language to unpick and no tax law to get your head around.

Headquartered in Manchester, with offices in London, Edinburgh, Glasgow and the Channel Islands, Catax work with businesses across the UK. They have a team of more than 100 in-house experts which includes surveyors, tax technicians, accountants, and report writers. They are also ISO 9001 accredited.

Simplifying Income Tax Self Assessment

APARI Pro

APARI Pro is a unique platform offering specialist tax services to accountants and their clients. It uses automated data capture and extrapolation to deliver significant efficiencies along with added-value services to accountancy clients.

Seamlessly automating live calculations

of clients’ tax affairs, APARI Pro delivers efficiency, accuracy and transparency. Through the use of APARI Pro, accountants can enjoy added value service, real-time client data insights, increased client retention and an overall future-proof, long-term solution to simplify tax return processes.

Self-invested personal pensions Mattioli Woods

With offices UK wide, we administer over 10,000 clients and hold £8.3 billion of assets. We can proudly claim to be a leader in the field of self-invested personal pensions (SIPP) and small self-administered schemes (SSAS), and such arrangements are often central to our clients’ pension strategy.

We take full account of the wider opportunities, including ISAs and other forms of personal investment; taxation and trust planning; and work with our clients to develop a balanced financial plan.