Tag: accountancy

Posted on by Vipul Sheth

It has to be one of our most fun – and eye-opening – articles for XU magazine.

We were lucky enough to have contributions from some of the UK’s most well-known accounting practitioners.

And these contributions weren’t just a few quotes for a feature. They have opened up to describe the many and varied (and often bumpy) paths that they took towards becoming accountancy professionals.

It’s certainly a timely article, because we know that accounting practices and finance functions are having a tough time recruiting and retaining good people. The market is febrile, with many outfits trying to expand, change direction or digitally transform – often all these things at once.

We’ve seen PwC reveal that it has lowered barriers to entry into their firm, and that has swiftly been followed by other practices doing the same.

It resonates with us here at AdvanceTrack, too. Our outsourcing services free up practices to not only be more efficient, but in turn to develop and grow their people – to build flexibility and opportunity into their model.

Our own people are also a huge priority, and we as an organisation must give them the right tools and environment to do well. Their development is vital too and, as we expand our services, we hope to give them more opportunities.

Some of the nine practitioners who we’ve highlighted faced hurdles that, quite frankly, shouldn’t have been put in their path. Whether it’s AdvanceTrack, your own accounting practice, or any organisation, it’s vital that we operate in a way that is efficient and profitable, but we must never forget that our foundation is people. Treat them well, either your own staff or of customers or those impacted by your products/services, and let’s make a positive impact.

Finally, I should flag up the hashtag associated with the contributions: #IWantToBeAnAccountant. The article can be accessed by clicking here.

And, of course, many thanks to our contributors: Nikki Adams; Theresa L Campbell; Lucy Cohen; Brendon Howlett; Stuart Hurst; Chris Kinsella; Bobby Lane; Sharon Pocock; and Carl Reader for their openness and support!

You can follow along with some of our other blogs here.

Posted on by Vipul Sheth

AdvanceTrack makes its third visit to speak to accounting practices about managing their clients and team in the midst of the coronavirus pandemic. While lockdown has eased, it certainly isn’t business as usual – with our practitioners formulating plans for the immediate future, and longer-term.

 

Bruce Burrowes, founder, Kingston Burrowes

It has been four months since lockdown, and a lot has changed since then. How has your firm been since we spoke a few weeks ago?

There has been lots of communication, particularly where clients have needed funding. For ourselves, we moved from four offices into three – which involved consolidating two of them. It’s been a really busy time.

The main focus of the last few weeks is getting compliance work undertaken that might have been put off during the first few weeks of lockdown, alongside bedding the new office in. Clearly that has meant encouraging people back ‘into’ the office – one they’ve not been in before.

Thankfully, the new office space is
more than big enough to accommodate
six staff and practice safe social distancing. A team member has managed the day-to-day issues.

The main problem we have had is typical teething problems of being in a new office – we had to wait for new monitors to arrive.

A key part of our ongoing dialogue with team members has been: ‘It’s OK to tell colleagues if they’re too close or make you uncomfortable.’ Where an office had to hot-desk to allow for social distancing, little things such as assigning everyone their own wireless keyboard has helped make a difference.

Clients have been grateful for us keeping up communication lines with them – even if it’s been to say ‘we’re really busy and we’ll speak tomorrow’.

One person moved during this time, which has meant reallocating work, but that’s opened my eyes to some of the existing team members’ efforts and technical ability.

 

What about the agenda going forward?

We know that some people want to come in and physically see us to discuss their personal tax return. But as a management accountant by qualification I think I can lead my team to demonstrate support – and communicate – online if need be. We can’t discount online communications because we can’t have a trail of people coming into our offices. So we need to make that work.

 

And what about the medium to longer term?

My firm didn’t charge clients for furloughing support, up until June. We’ve then had conversations that begin with: ‘Well, we’ve helped you out for quite a while…’ Clients have realised what a proper relationship is with an accountant. Well, I’m not going to go crazy with pushing remote working, that’s for sure. Our trainees require – and will continue to require – close contact with more experienced team members to learn and grow. That learning osmosis won’t happen with remote working. For example, I saw one small issue that took four hours to deal with over email.

We’re seeing the split now between businesses that are getting back on their feet and looking to push on, and those that are still pushed back and furloughing. There’s still plenty of support required for them over the coming months.

 

 

Nikki Adams, CEO, Ad Valorem

It has been four months since lockdown when we last spoke, and a lot has changed since then. How has your firm and its clients been?

We didn’t furlough anyone. It was a conscious decision that we didn’t want to and we didn’t need to do that. We were in a good position before it happened so there was no compelling financial need to do so. The biggest operational challenge for us was furloughing coming into play – the speed that everything was changing. It was a case of getting to grips with things… The team are used to being the ones that know everything and confident in what they say – but we had no time, so it was stressful. Thankfully we have a big enough team to provide support where required; in this instance, to support payroll.

It really paid off for us, because we used people for different things as it progressed. Our admin team helped with client comms. We charged for furloughing support where they wanted us to do it on their behalf. For us it was beyond basic payroll support.

We’re now back in the office with half the team rotating with the other. There’s also a skeleton staff in all the time and a few people not in at all. We’ve actually recruited six people during lockdown – they were primarily very good accountants and technicians who had found themselves furloughed and weren’t happy about it. They’re experts in tax, R&D and digital.

 

What about the agenda going forward?

 There’s been no noticeable dip in enquiries; in fact, we’ve won some big accounts – where their accountant doesn’t have a digital focus. Some accountants have been hard to get hold of or have even shut down – it is difficult for the smallest practitioners without resource.

Our workplace has become almost like a clubhouse where you come specifically to collaborate or train. Most people want 50/50 between working from home and the office. We’re outcomes-focused so that helps provide flexibility.

 

 

And what about the medium to longer term?

We’d taken on extra office space. There’s an argument about needing it, but we feel it will be our flagship – a central focus that has energy and buzz and where we can exchange ideas. And what about the medium to longer term?

The medium term is not so great though, without face-to-face. It makes training really difficult.

We’ve also placed 130 clients from a previous acquisition onto our systems, so that’s exciting.

We’ve certainly noticed that the value piece has come back. Clients understanding what we can do for them. Some wanted to ease back because things were tough, and they’ve realised how important we are in getting them back on their feet so have changed their mind.

Finally: people. We want more – good ones.

 

 

Brendon Howlett, operations director, Wood and Disney

It has been four months since lockdown, and we’ve previously caught up twice. How has your firm been since we spoke a few weeks ago?

 It’s been much more settled. Businesses are releasing people from furlough, and for others the shutters have been coming down. We’re also seeing business trying to do different things to diversify. We’ve had tax and furloughing – the waters have been a bit muddied there with July payments in terms of how and who we bill, but we expect clients to pay if they can afford it.

From our perspective we still have everyone in at full capacity – and we’re still using the team at AdvanceTrack to undertake tasks for us. We are behind compared to the budget at the start of the year but our heads are above water.

Communication has started to change. We’re moving away from the shock of what happened four months ago and people are going back to work. There had been so much info and assistance – it has been really good for new business and new clients, so we decided to continue a high level of communication as much as possible. We’re still using Zoom, but have to balance that out with getting on with general workload as we had fallen behind.

I personally thought that a lot of our routine work would fall off, but our team have been able to hammer home self-assessment returns. I think that the typical late filers have had time on their hands and got this off their back. It’s also enabled us to have conversation about their general finances.

 

What about the agenda going forward?

Discussions about understanding cashflow and accounts are leading to financing conversations. And then there’s improving ongoing financial reporting. Where there’s uncertainty then we have to help clients plan –
it’s on us as advisers to make that happen.

 

And what about the medium to longer term?

Most of our A-list clients like the regular dialogue… even if they say we’re fine let’s speak soon, checking in on them helps. So…linked to this communication piece, we’re thinking about how we present this pro-active support – supporting the client journey is fine but how we market that is a big thing going forward. And what about the medium to longer term?

Part of that will be reinforcing to clients that
we can communicate with them quickly so they can act quickly. We’ve also got to keep showing our human side in that process to maintain and build trust.

Posted on by Vipul Sheth

In the April, we spoke to practices about their approach to managing clients and their practice in lockdown. We revisited them after two months to find out what happened and how they see the next few months shaping up.

Bruce Burrowes, founder, Kingston Burrowes

How have the past two months been since lockdown began? Have things panned out for your firm as predicted?

I think we basically got it right. A great deal of effort has gone into talking to our clients, maintaining communication, talking about the changes, the funding available and supporting clients. We’ve had two clients cease trading but they voluntarily shut their business down – otherwise everyone else is still on board.

Big changes were made to how our people worked. It has been a bit more settled but now it’s about getting back to work, the ‘new normal’.

We now have three offices rather than four – but that was part of a long-term plan to better manage our operations – and included moving into a new, bigger site in Cheam. The plan was for this to be live just before Easter, which got delayed to the end of May – not because of the build but just because the desk manufacturer closed.

 

What is now on the agenda moving forward?

Well, now it’s about getting clients back into the flow of managing regular compliance tasks such as accounts and tax returns.

Our personal tax team has the self-assessment stuff in hand. On companies, it’s about trying to keep ahead of things; VAT, accounts have to come in. If you delay accounts because the information hasn’t come in, you don’t get that time back. So it is being mindful about letting clients know we’re still here and work needs to be done – it’s a similar message for our own team.

The huge thing, though, is getting people back into the offices. That is the same for us and clients. Where they’ve asked us for legal, human resources and health & safety advice, we have contacts we can refer them to.

Our biggest challenge is getting people back in – they must realise that face-to-face is so important, either for day-to-day tasks or managing clients. I’ve realised that even as government guidance relaxes, there has to be a mindset among people that they want to come back to work… if you don’t get that they won’t come back. Clients will have the same problems. Conversely, some people can’t wait to get back in.

 

 Are you able to undertake longer-term planning? How do you see the medium term?

This is normally my planning and budgeting time – so the coronavirus has taken that out a bit. We are involved in helping with funding and have had a few more enquiries on that front – something for me to consider.

From a tech perspective we’re in quite a good position; our investments in IT paid off. The investment allowed staff to be productive at home. We have a good understanding of both the applications we need to run, plus the hardware requirements. It has not been without challenges – such as dealing with ad-hoc IT issues remotely – but we’re on it.

The most immediate client-facing tasks will be around helping sort through and manage their Job Retention Scheme (CJRS) claims.

 

Brendon Howlett, operations director, Wood and Disney

How have the past two months been since lockdown began? Have things panned out for your firm as predicted?

It’s been well beyond the norm. We’ve had to speak to insolvency practitioners and lawyers and be brutally honest with some businesses. It went as good as it could, I guess. We felt as a team that our focus should be purely on client communication: calls, ‘hand-holding’, listening and sometimes just simply being there. We were, in tandem, sifting through the deluge of information from the government and various accounting bodies to understand what options were available. We had daily calls with a good number of our clients, others on a weekly basis.

As practitioners we’ve had to sacrifice our time. I’d justify it as an investment. Clients have been understandably coming to us for help – and we are the people they should come to. It does reach a point where it’s not sustainable as pro-bono; we have to operate as a business, too.

Furloughing helped as there was a lot of work to do and it was more straightforward to bill for while easily demonstrating value.

 

 What is now on the agenda moving forward?

We’ve said to our team that we understand the majority of our clients will be able to continue with a retainer – but that might dry up after that…so use the information we have on them, plus the extra communication, as an opportunity to understand what’s going on. Opportunities will come from helping clients move on and grow. We also know they’ll talk about us to other people – and we’re picking up some other work where their accountant has either let them down, or they haven’t heard from them.

Early on we did our cashflow budgeting and impact on our firm. We have also looked at our clients and undertaken a ‘z-score’ methodology, looking at their balance sheets and grading them. Then it’s the more serious discussions about ‘where your business is now’ and devising strategies to come through this.

Generally, we’d look at it as almost a given that clients we’re working with will want to grow. Some will struggle – it won’t necessarily be ‘the end’ for them but we need to do something about it and do it quickly. This coronavirus has sharpened the focus on tracking survivability.

 

Are you able to undertake longer-term planning? How do you see the medium term?

It’s going to be a tough few years. We’re quite a lean team at the moment and our focus will be on looking after existing clients and attracting new ones. Communication will be crucial and will remain at a high level.

We won’t focus solely on compliance services – there has to be more advisory work. We also want to grow our practice, so will need to keep the sales funnel working. We would like to think referrals will keep on coming but you can’t guarantee that or predict.

We have been able to build emotional connections with our clients… now’s the time to strengthen those connections through stepping up our digital marketing.

 

Alastair Barlow, founding partner, flinder

 How have the past two months been since lockdown began? Have things panned out for your firm as predicted?

Uncertainty was at the fore. We had no idea how our clients were going to draw back from us, or react with their employees. We were expanding and had just taken on two new team members, so we on-boarded them during the lockdown. With expansion in mind, the team knew we were unlikely to furlough anyone ourselves; it would be more a case of not hiring anyone else for the time being.

While our use of tech is high, we realised it would be stressful working from home for a prolonged period, so we tried to make it as comfortable and health-focused as possible – such as using a proper work chair rather one in the dining room.

As we’re London-based, we made a decision pre-lockdown to go fully working from home. If team members got ill travelling in and shared it with everyone else, it would have been disastrous. I think the move was pretty much seamless – MacBooks at home and phones as well – internet-enabled comms channels are already fully used. It has, however, been far more prolonged than we hoped for.

As such, some WFH situations can’t really continue – so we’re looking at co-working spaces nearer the teams’ home where possible.

From a mental health and wellbeing perspective we run ‘self reflections’ on a Friday. Our people opening up about what’s on their mind and how they feel. We also hold weekly Pulse surveys with questions, which help us gauge an overall sense of where we’re at.

From a client perspective we ranked them according to a number of metrics, including cash, exposure to sectors or supply chain and so on. We spoke to them all but with an understanding of their overall risk exposure. It took several weeks for things to unfold and understand the general direction they were heading in.

Our pricing model is flexible and based on consumption… if it increases we will increase fees – if things change adversely or are on pause then we’ll strip back where required. Of course, if we’re strategically advising a client on cash management, then we’d say that cutting our fees would be a false economy.

 

What is now on the agenda moving forward?

 Things are mostly settled with loans in place – we’ll see a greater than average fall of businesses in the overall economy due to repayment issues in the medium-term. Many of our clients are equity-backed, and we think there will still be enough investment around.

One thing we’ve seen slow down is the volume of clients changing accountants to come to us. We’ve picked up a couple of big clients but in a period of uncertainty many will keep as many certain things in place as possible.

We’re seeing more businesses unfurlough, and expect that to increase from the middle of June.

I don’t think rushing people back into the office is our thing – in fact, our lease was ending and we decided against its extension. Our people say they want roughly a 50/50 time split between WFH and being in the office. So we may look at leasing where we can take a bigger room if we have everyone in on a Monday, for example. We won’t do a big bang – we don’t need to take the risk.

We are all, however, missing human contact and interaction. While we leverage tech, we really try and send people out to be embedded with clients; whether it’s on their advisory committees or attending board meetings. Such rich, strategic, interactions are difficult to replicate.

 

Are you able to undertake longer-term planning? How do you see the medium term?

In terms of our service solutions, which revolve around client-centric problem solving, one thing that may be on the agenda is more governance and risk management offerings. It has surfaced a little bit more in the eyes of clients – and some of our team can already deliver it.

Generally, this situation has brought to the fore the concept of advice: what clients really value is speaking to accountants rather than receiving a set of accounts.

Posted on by Vipul Sheth

Some the most popular and well-known advisers and experts have been speaking to AdvanceTrack and accountants about how to lead through the crisis, while reconfiguring your services – and people – in a locked-down world.

 

While physical conferences and get-togethers are currently off limits, that hasn’t stopped AdvanceTrack from running a “mini conference” online via Zoom.

On 28 April, we ran a “Beyond the Pandemic – The Customers Journey”, a 90-minute online seminar, in which experts provided insight about how best to structure your approach to support clients through the crisis, and beyond.

Innovate and communicate

Kicking off the session was AdvanceTrack MD Vipul Sheth. He said that accountants are in a unique position to provide real value to the people they work for – above and beyond a basic and narrow ‘service’.

But they must not rest on their laurels. “The wow of today is the normal of tomorrow,” said Sheth.

Citing the exponential improvements in Amazon’s service provision and constant innovation, he explained that day-to-day consumer experiences influence what people expect from professional services organisations – and they must step up.

“Don’t compare yourself with what other accountants do – consumers and clients are driven by other experiences they have – that represents their expectation,” he said. “So why do you do what you do? You have to deliver value.”

While the coronavirus crisis has proved incredibly disruptive, it has forced accountants and clients to communicate more – albeit via digital online platforms.

“The importance of relationships never goes away,” said Sheth. “And now we see our people increasingly moving up the value chain – with clients and in our business. If you weren’t using Zoom or Teams a month ago, you are now – and these tools are helping you have conversations.”

You might have had two or three client meetings in a day; now you can have ten or 15 – hopefully all incredibly valuable to you and clients, explained Sheth: “Being digital allows you to do that. You’re doing things a lot quicker, communicating more – so take the digital journey.”

Invest in relationships

Karen Reyburn, founder of The Profitable Firm, gave an inspirational talk focusing on the relationship-building you will inevitably be doing at the moment. And that, while billing and charging is a difficult and thorny task at the moment, you are investing in potentially keeping clients for a lifetime.

“Some things have changed in the crisis, some things haven’t,” she said. “Relationships… it’s always important to invest in client relationships.”

Putting yourself ‘out there’ will also engender positive sentiment towards you and your firm from potential clients and other working partners.

“So many of you are already spending time on the things that build relationships – sharing information, blogs, videos… just get it out there! You will get enquiries if you’re doing those things. You are on the front line of saving businesses,” Reyburn added.

Some firms are fearful of giving too much valuable information away in the public domain, via their website or on social media. However, Reyburn’s approach is very simple: “Give information away, charge for implementation.”

If people think that undertaking a task will be exhausting or difficult, they will come to you, whether you’ve given them the basic information or not, she suggested.

“The more you share, the more they’ll want to work with you,” she said. “Use content to build assets. What can I build so that when they have problems, this is the tool they use? This is why video is so powerful: you’re connecting with them faster – the number of accountants who are realising that it doesn’t have to be perfect, but doing so builds relationships faster.”

Efficiency and trust

As founder of presentation training business Speaking Ambition, and MD of Blue Arrow Accounting, Alexandra Bond Burnett is well placed o talk about how you build trust with existing and potential clients.

“How do you give someone the green flag that you’re the best person to choose to help them?” asked Bond Burnett.

Breaking down the elements that are required to create trust was a key part of bond Bond Burnett’s presentation.

The trust equation is: credibility; reliability; and intimacy.

  • Credibility – “Demonstrating your experience, be that talking about things you know and understand, having conversations with people and presenting your qualifications.”
  • Reliability – “This is about ‘showing up’. Doing what you said you were going to do. To be there so your clients don’t need to worry.”
  • Intimacy – “You can be credible and reliable, but you have to build that level of rapport. People make logical decisions but with a dollop of emotion. How do you make someone feel? Safe, challenged, that they can do anything?”

Bond Burnett pulls this together by discussing ‘self orientation’. “It is a funny phrase – but essentially we’re considering who do you think about when you’re communicating?” she said. “It’s more than likely that it’s ‘what will someone think of me?’ Don’t focus on yourself – turn it around and think about the client.

“How can they be helped right now, and then next week and then the week after that… then start communicating that to them. The hero is the client; make them the centre of the story.”

Service clarity

“How do things get done?” asks Trent McLaren, global head of accounting and sales at Practice Ignition. Accountants need to be clear about understanding the work entailed both internally for your practice, and what you do for your clients.

For McLaren, this ultimately means you are looking for a balance between the work your people undertake, the technology used as a tool and the processes put in place to make the work flow.

“When the customer and employee experiences work well, then you as a practice gain a competitive advantage,” he said.

“It means you’re completing work faster, with fewer resources, improving quality and hopefully improving customer satisfaction.”

Another key task is to ‘map’ the customer journey. Do you understand the path a client takes, and the touchpoints they have with you, as you work together? From them becoming a lead/prospect to becoming your client and beyond, think about how you communicate with them and the services you provide.

By doing this you create a ‘blueprint’. McLaren referenced an article by the Nielsen Norman Group on this very topic, which can be found here.

 

 

 

Posted on by Vipul Sheth

AdvanceTrack has teamed up with business advisory platform Clarity to offer clients a way to understand and improve their business

We have exciting news of a new partnership, bringing together AdvanceTrack’s outsourcing capability with support to build and deliver a top-level advisory service. Clarity has partnered with us to provide an exclusive offer for AdvanceTrack’s clients.

Clarity is a business advisory platform harnessing AI, machine learning and blockchain, which uses the right combination of people, process and tech to transform the business advisory services of accounting firms worldwide.

Clarity’s offering helps practices support clients in understanding their numbers – and how to improve them. Accountants can help them create a step-by-step plan to build a better business and, through a structured online data room, help access the cash and investment to grow or exit. The Clarity platform empowers 100% of accounting teams to help 100% of their small business clients with business advisory.

Its founder and CEO is Aynsley Damery – a qualified accountant and former CEO of a multi-award winning niche advisory accounting firm for entrepreneurs in the UK.

 

“Our world is now so connected – both people and devices, and the ability to reach customers is no longer restricted by borders,” said Aynsley. “The move to the cloud and the ability to analyse big data opens up incredible opportunities for many accounting firms. Harnessing the power of technology effectively has become critical to gain competitive advantage.”

 

 

 

 

AdvanceTrack founder and MD Vipul Sheth said that, by outsourcing, accountants should be freed to drive client value. “We want practices to break free from spending all their time on compliance work that can be managed and processed in a better way,” he said.

“And by freeing them from these bonds, they can make much better use of their time understanding and advising their clients on growth, or their longer-term aims.”

Get in touch with #TeamClarity on in**@cl********.com to find out how you can benefit from our partner programme, plus an advanced implementation plan to get your firm on track.

Posted on by Vipul Sheth

The ACCA’s new report delves into the key roles that accounting professionals are now expected to fill, and what that means for your organisation’s future, writes Kevin Reed.

Technological change in the workplace, and our daily lives, is a constant. That the pace of change is seemingly increasing means it’s not so clear what this means for practices, their clients and the roles that accounting professionals will be expected to play.

With this as the backdrop, the ACCA has produced a report – three years in the making – that seeks to make sense of the social, corporate and employment environment.

Future ready: accountancy careers in the 2020s contains five key ‘career zones’ that could provide opportunities for accountants in the future. Some are more relevant to finance functions than practices, but they could all still apply to specific roles with a professional services organisation or otherwise. These are:

  • The assurance advocate: these roles will focus on trust and integrity in an organisation. This may include risk-focused tasks, or understanding emerging issues that could impact on business performance. Control and stewardship are also under their remit.
  • The business transformer: From a practice perspective, individuals will need to lead organisational change to cope with growing regulatory demands and evolving client needs.
  • The data navigator: From a finance perspective, they will focus on expanding the organisation’s use of data – finding tools that will analyse information to provide business critical insight. Accounting practices are beginning to understand the importance of strong data control and analysis, alongside managing its flow between them, their client and statutory bodies such as HM Revenue & Customs.
  • The digital playmaker: Described by the ACCA as an ‘evangelist’ for technology, we see practices looking to allocate a champion within their firm to help track the latest apps and software. They will also play an important role in its implementation.
  • The sustainability trailblazer: What does sustainability mean for an organisation? And how do you measure it? Producing broader information about business performance will certainly fall under the remit of a finance function – perhaps a path for practices to provide assurance, auditing and consultancy?

 

Considerations for the practice team

For those looking ahead at their own career, what does this mean? Transforming and evolving should be active and iterative. You can’t change who you are and what you do overnight. It will need to be in context of your chosen path. Are you a sole practitioner, running a bigger practice, holding an operational role or client-facing?

But the ACCA has picked out ten aspects for you to consider. For those in career mode, being flexible will be key in staying relevant as business models and customer requirements change. Understanding the impact of digitisation on the practice landscape is really a must – and should be integral to your development.

Because of these two factors, job roles will appear that are lesser-known or new, but might help you broaden and develop your CV. “With career paths less certain, thinking laterally about future job roles is critical,” the ACCA states. In essence, continuous learning and showing a hunger to improve “future-proofs capabilities and ensures enduring competence”, it adds. Building an online brand and being aware of the benefits and drawbacks of things you post on social media are also critical. “Online career visibility is vital in the digital age,” states the report.

Making sure that CVs represent your skills will be more important than previous job titles, it believes. “’Competence’ is king,” states the ACCA.

Collaboration, an issue for many silo-centric accounting practices, will be vital. Teamworking, particularly cross-function, service line or discipline, will provide the best service to either internal or external clients.

While the term ‘data scientist’ has been bandied around for many months in the profession, making better use of data and building an ability to better analyse different formats and types of information will be “a cornerstone” of accounting and finance roles.

But don’t forget to look all around you. As the ACCA states, we are moving to a point where several generations will sit in the workforce. For those developing their career they must not be blinded by the future, but take heed of lessons learned by others over the decades. “With different entry and exit points into the profession, the diversity of talents across all ages is enriched,” it states.

 

Considerations for practice employers

If you employ people within your practice, how do you as an employer respond to the opportunities and challenges ahead?

The ACCA’s first point is probably more focused on corporates, but could still apply to smaller and more collegiate professional services firms as well. Does your practice demonstrate a purpose and contribute positively to society? Practices, in their support of clients, tend to do this by definition – but not many spell it out clearly. “Employers that can frame and articulate their broader purpose successfully are more likely to be attractive to potential employees in the future,” states the report.

Succession planning is an ongoing problem for the practice community. And the ACCA highlights that career paths must be open and visible – this becomes even more crucial if roles are changing: “Do they support building a pipeline of retained talent for the future?”

As in the employee-focused suggestions, the ACCA flags up the responsibility of employers to build collaboration within their organisation. Team-based projects and encouraging people to move out of ‘silos’ is recommended.

As employees must make a big effort to continue their development, so practice owners must support their team in doing so. Digital learning is becoming a popular way to enable such development.

Technology-driven change can create apprehension in many practitioners. It’s not that the tools aren’t helpful, but the pace of change and increasing choice means that workarounds and organic change seem easier and more manageable than revolutionising how a practice is run and structured. Such fear is also heard by team members, who fear that efficiencies and automation will see them out of a job. Taking the opportunity to develop a practice using technology must be grasped, but careful consideration of how to redeploy staff must be considered – along with communicating that change.

Finally, evolving your practice will mean new skills and inevitably new people coming on board. Creating a diverse workforce will have a positive impact. “This isn’t just a moral obligation,” states the ACCA. “Workforces that are more diverse in a range of different aspects, for example gender or ethnicity or culture, are seen to be more innovative, and various studies continue to identify correlations between different diversity measures and improved organisational performance.”

The ACCA report can be found by clicking here.

 

Posted on by Vipul Sheth

AdvanceTrack’s most recent webinar was one of its most thought-provoking and interesting.

On the topic of ‘value’, three experts joined AdvanceTrack MD Vipul Sheth to discuss what value means in the context of an accounting practice, its people and clients.

Andrew Van De Beek, founder of Australian accountancy firm Illumin8, kicked off proceedings with an intensely personal and heartfelt presentation. This tone supported his message: work with clients you like, and understand the purpose of their business, before you can deliver value.

Clients are usually sold an expectation of what it will be like to work with another party, and are then disappointed with the reality.

“When I started my firm eight years ago, I’d already worked in a smaller firm and a Big Four firm. I hadn’t really enjoyed what I was doing – ticking boxes. That changed when I realised there were businesses behind my work – it changed my thinking,” he explained.

Van De Beek and his firm undertook soul-searching of who they were as personalities, and who they wanted to work with. “It was a transition from ‘pretending to be an accountant’ to ‘here’s Andrew… who is good at accounting’,” he said.

His official ‘work photo’ was him in a suit and tie. “I asked myself ‘why am I putting this shirt on?’ The branding was this picture while I was really [a guy in a t-shirt drinking whisky],” he said.

“In other words, the branding was the guy in the suit, but when clients interacted with us they got something different.

“If we’re pretending to be someone else, act a certain way, do things a certain way… it won’t hit the mark,” Van De Beek added. Accountants often present themselves in a similar way, providing similar services in the same style – “it just won’t hit the mark”.

Karen Reyburn, founder of accountancy marketing agency PF, carried on the thread. She said accountants feared being themselves, but making such a move towards fully representing yourself in your work normally required “small changes over time”.

However, such a move was important in terms of winning and working with clients. “Your brand is not for you, it’s for clients,” she said. “They will ask, ‘is this real? Are these people for real?’.”

When there’s a mismatch “they will hesitate to work for you”, Reyburn added.

The step towards online communication precipitated by the coronavirus pandemic has seen accountants behave more as they are, particularly where they talk to clients from their home environment.

“I hope that those moving through this see one of the big lessons that ‘me and my firm need to be who we are and show it’,” said Reyburn.

Building that authenticity is an aspect of setting out how to understand what value is in terms of clients, said James Ashford.

“Accountants do amazing [technical] things: balance sheets and P&Ls, but I only care
about what’s going on in my life. I want to be able to pick my kids up from school and my wife be safe, along with a storm-proof business. That’s where accountants can have an impact,” said Ashford.

On pricing, Ashford said you should be “consistent and profitable in what you need
to deliver”.

“And compliance isn’t dead,” he added. “It’s our most profitable work [at the accountancy practice where he is a director] because of how we charge it, manage our efficiencies and deliver.”

View the webinar by clicking here.

Posted on by Vipul Sheth

What can I outsource in my firm?

 

Outsourcing is no longer out of the ordinary. The outsourcing journey begins with accepting that.

We all know that the accounting profession has seen some big changes in the last decade – out with the old and in with the new, the more efficient and the most profitable. 

Some small firms with a handful of tax-only clients may be able to coast along for a while doing things the way they always have. But for those looking to grow and thrive, it’s a case of adapt or be replaced. 

That being said, it seems there’s still some lingering misunderstanding about outsourcing, what can be outsourced, and how it can contribute powerfully to the growth of your firm.

As far as we’re concerned, outsourcing isn’t about just getting some help with compliance.

It’s a tool to help you transform the nature of your interactions with your clients. 

 

Are you stuck hoping the dam won’t crumble?

 

When clients come to us, they’re usually overwhelmed in one way or another.

Remember the story about the little Dutch boy and the dam? 

In the popular fable, a little boy notices a crack in a dam. Since much of the Netherlands is below sea level, a leak in the dam could be a fatal disaster. So the little boy plugs the crack in the dam with his finger. The leaking stops. The little boy knows that if he moves, the hole will get bigger and bigger and the town will flood. 

When he is finally found, the boy is hailed the hero of holland! It’s a tale of bravery. The only problem? He is still the only solution for an imminent flood. 

We find many firms in the same position, stuck recruiting anyone and everyone to plug the holes in their own businesses before an imminent flood. Often we find the business owner is doing their own part to plug the dam. At this stage, we find the same issues stopping you from taking your firm to the next level:

  • You just don’t have enough staff or time to find them
  • Your existing staff are doing work at the wrong level 
  • You’re doing, rather than advising as the Business Owner
  • Your team don’t have the skills required for you to scale up
  • You’re unable to retain staff long term
  • Your top talent are recruited by bigger firms with more to offer

Our solution?

 

Build a damn wall

 

Instead of trying to fill the gaps with anyone who is willing, change the structure of the way you do business. Build a wall so that you’re never fighting floods and you can do the work that is going to be the most profitable for you. 

That being said, you don’t have to be in a tax work crisis for outsourcing to work for you. You can outsource at different levels within your business, to allow you to deliver more than just accounts, or find the skill set to break the barrier into advisory work. 

We created the outsourcing journey, to help you identify where you are right now, but most importantly to show you what’s possible. From all of our experience working globally with firms like yours, we’ve identified that this is the route that leads to scalable growth and profitability.

Start – Everything is being done in-house. You’re maintaining, not growing.

Regular User – We combat capacity by starting with one process and nailing it. By outsourcing accounts and/or bookkeeping, you’re scaling up your team’s hours for higher level work.

Strategic user – Getting to strategic level is exciting, because you’re able to revisit your internal roles and really start to level up your team. At this point, you’re outsourcing reporting and the team are reviewing rather than preparing. Your Account Managers are able to step up and have more conversations with the clients. 

Strategic + – At this point, outsourcing is your default method for accounting, bookkeeping and reporting. You now have the ability to increase your billable rates and your departments capability. At this level, your outsourced team are giving prime delivery, allowing your team even more time for advisory work. 

Growth – You have built the wall. You’re growing at a fast rate, with the right structure for having the very best conversations with clients, and the right team skillset to support your client base.

 

It’s not just about freeing up your time, it’s about what you use your time for

 

Ask yourself why you became an accountant. 

You are the most valuable person to your client, which means that you need to focus on what they value the most in order for your own firm to be more successful. If you’re stuck doing work at the wrong level, you’ll eventually become obsolete in the eyes of your clients.

Whether you need to build a wall to allow you time to find the right staff, or get your existing staff in the right seats for scalable growth, or you just want to do more of what you enjoy – outsourcing to a trusted team can help you accomplish your goals.  

Clear on where you are in the journey? Tell us what you need

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