Accounting departments in UK businesses have continued to shift towards digital practices, but more than four in 10 (41%) continue to rely on paper-based processes, according to new independent research.

The 'Changing trends in the purchasing processes of UK businesses' report, commissioned Invu, revealed a slight reduction in the number of businesses relying on paper-based accounting in the last few years.

The 41% in this latest report is a slight fall from the 45% of business finance decision makers who admitted to relying on paper-based accounting in 2016.

But despite the trend towards digital, the report revealed a significant number of finance bosses who admitted that their company was struggling to move fully to a digital based model.

More than half, 56%, said that a paper process was still used at some point within the purchasing process in their business.

Within accounts payable departments in these UK businesses, 16% of finance bosses said their company had not introduced any digital processes at all - relying on totally paper - while nearly a quarter 24% relied on manual scanning and storing of documents.

Ian Smith, General Manager and Finance Director at Invu, said the findings showed a welcome trend of redundancy of paper-based accounting, but said some businesses were still putting themselves at risk by continuing to rely solely on paper.

"Businesses are often dealing with dozens, if not hundreds of invoices and payment enquiries on a daily basis and trying to manage and juggle these requests and demands using paper and filing cabinets can easily lead to finance departments being overwhelmed.

"Delays commonly arising from manual processing of supplier invoices can result in a business being unaware of its future payment commitments - and then it is only a short step further before they end up in severe financial difficulties.

"Given the current focus in the UK on productivity it is frankly staggering that so many companies won't let go of their legacy paper-based systems and free their accounting teams up to add value to the business rather than drown in paper work.

"In a rapidly changing world this report shows a welcome shift towards the use of technology. I’m concerned for the future of the 41% of businesses that appear to be lagging behind”

(Source: Invu)

More than two fifths (41%) of finance back-office processes could be automated in the next five years, a new study from global customer services provider Arvato CRM Solutions and management consulting firm A.T Kearney has found.

According to the new report, 41% of finance back-office processes are set to be performed by robots by 2023, with this figure rising to 53% within the next 10 years.

Implementation of Robotic Process Automation (RPA) is set to significantly boost firms’ productivity and efficiency, as bots are 20 times faster than humans with a 10% lower error rate. Subsequently, companies that adopt this technology, could potentially receive an ROI of between 300 and 1,000% over a three-year period.

It’s also predicted that the widespread roll-out of RPA solutions will result in an annual compound market growth of 50%, with the global market set to be worth $5billion by 2020.

New developments

The research also predicts that by 2023, RPA, with the help of cognitive capabilities, will be able to make automated decisions, and by 2028 robots will be able to carry out most back-office processes independently with minimal human intervention.

The new report, named ‘Robotic Process Automation: The impact of RPA on finance back-office processes’, interviewed more than 20 technology partners and players in the field of RPA, gathering together their view on the trends and developments within the sector.

Ben Warren, vice president of Digital Transformation at Arvato CRM, Global BPS, said: “RPA will revolutionize the finance back-office, as the new technology is more accurate, efficient and can work for longer hours, depending on demand.

“This can consequently help drive revenue for a business, streamlining processes and allowing employees to spend more time on higher value tasks.

“But although the benefits of automation can be great, it’s important that firms understand that to successfully utilize the technology they will need to invest.

“A full analysis of end-to-end systems and redesign of existing processes will be initially required, and companies will need to regularly review their processes as technology continues to evolve and develop over the coming decade.”

Dr. Florian Dickgreber, partner at A.T Kearney and co-author of the study, said: “Having transformed manufacturing, bots are now set to change processes in the service sector.

“We expect RPA, the automation of structured business processes, to take over more than half of all back-office processes over the next five to 10 years.”

(Source: Arvato CRM Solutions)

This week Finance Monthly hears from Nick Williams, Head of Business Development at UK Accountants, Intuit, who discusses change management methodologies and outlines an 8-step process for accountancy firms to apply Dr John P. Kotter of Harvard Business School’s methodology to ensure a smooth transition to Making Tax Digital.

These are changing times in the UK's accounting industry. Making Tax Digital (MTD) is the biggest overhaul to the taxation system in decades, and firms are not only adopting new ways of working, but they are completely re-thinking business models to meet the evolving needs of their small business clients.

The shift to digital accounting introduces new opportunities for accountants to take on more of a financial advisory role, providing real-time insights and strategic guidance to grow their clients’ businesses. However, while the shift to digital accounting is part of a wider push to digital in nearly all aspects of both our business and personal lives, the enormity of it cannot be underestimated. To ensure a smooth transition for their practice and their clients, accountants would do well to approach it in the same way as any other change management programme.

One of the most well-known change management methodologies is by Dr John P. Kotter of Harvard Business School, who observed countless leaders and businesses as they were trying to transform and execute their strategies, and developed the 8-Step Process for leading change. Here’s how accountancy firms can apply the same methodology to ensure a smooth transition:

1. Establish a Sense of Urgency: For months – years perhaps – we’ve been saying “it’s not too late to be early” to prepare for MTD. Communicate the message internally and externally that now it is in fact is a bit too late to be early. It really is time to move forward with cloud-based accounting to avoid a last-minute panic when deadlines approach.
2. Create the Guiding Coalition: Having dedicated “experts” flying the flag for digital accounting will help to ensure broader education among all employees on the forthcoming regulations. Start a process to train fee earners on your preferred cloud software and have "champions" trained as soon as possible.
3. Develop a Vision and Strategy: Think about how you can use MTD to seize new market segments or opportunities. For example, there are an estimated 1.75 million landlords in the UK, and all those earning more than £10,000 from property income will be liable for Making Tax Digital. For some, recording transactions online will be a first, and they will likely seek counsel from dedicated experts. Be one step ahead by positioning yourself as a future-ready firm.
4. Communicate the Change Vision: Once employees are up to speed on the changes, running a Making Tax Digital marketing campaign with clients is critical. Telephone calls, emails, client letters and even social media marketing will help to communicate these changes, and position your practice as a firm that is there for its clients every step of the way.
5. Empower Employees for Broad-Based Action: Some firms and their clients will be new to digital accounting; however, employees should be given freedom to experiment with different ways of working. Periods of change are frequently followed by periods of innovation, so try not to hamper any enthusiasm as employees “test and learn” to drive better outcomes for their clients.
6. Generate Short-Term Wins: Employees and clients will be more receptive to digital accounting if they see immediate benefits. Highlighting the time saved from less manual entry and the benefits gained from automation, for example, can help staff members see the potential of their roles to evolve from keeper of historical records to real-time financial advisor.
7. Consolidate Gains and Produce More Change: Use data to establish what changes have driven the best rewards for clients and share best practices across the business.
8. Anchor New Approaches in the Culture: Reward employees who share examples of how they have used digital accounting to achieve a better outcome, and encourage sharing, feedback and open discussion as you adopt new technologies to take your practice to the future.

By adopting a change management mindset, firms can ensure they stay ahead of the curve and have a business set up for long-term success.

From the pending implementation of VAT to the introduction of Inter-Governmental Agreements with foreign countries, below Finance Monthly hears about Kuwait’s most recent tax affairs through the lens of one the world’s largest professional services and accountancy firms, EY, and one of its top Partners and experts in Kuwait, Alok Chugh.

Despite previous plans, Kuwait’s parliament has recently announced that it will not implement VAT before 2021. What could this decision mean, both in the short and long term?

We are closely monitoring the progress in implementation of VAT and are in regular contact with all the key officials. Based on our discussions, we believe the VAT may be implemented sooner than 2021 (probably by January 2020).

While some businesses take a sigh of relief, this only seems to be short term, as once the other countries implement the VAT, the pressure on Kuwait will only increase.

What are the key challenges that could come with this decision?

Timing difference in implementation of VAT in Kuwait and in the neighbouring countries will have concerns by businesses involved in cross border transactions that may result in higher cash outflow. For Kuwaiti businesses, this is a blessing in disguise as this gives them additional time to prepare for VAT and also leverage from experiences of other countries.

What have been any other tax trends in Kuwait in the past six months?

Kuwait has signed the Inter-Governmental Agreements with the United States (US) for implementation of US FATCA. The financial institutions are required to do an annual FATCA reporting to the Ministry of Finance (MoF) and audit report prepared by a certified auditor is required to be submitted by the FIs on an annual basis.

In addition, Kuwait is a signatory to CRS Multilateral Competent Authority Agreement (MCAA). The MoF has recently issued additional guidelines for CRS, which among other things include appointment of an auditor for CRS reporting purposes (similar to the requirements for FATCA reporting).

Besides, from corporate tax point of view, there have been recent legal cases decided in the Kuwaiti courts, where the MoF has subjected the foreign principals and suppliers of products to tax in Kuwait, based on certain types of agency/distributorship agreements/arrangement. This effectively means a significant potential increase in the tax base. Kuwait is largely an importer of products and services wherein a number of foreign principals sell products and services through Kuwaiti agents.

Are there any concerns or future considerations regarding long term attractiveness for Kuwait as a place to do business? If so please elaborate.

Kuwait government is making efforts for: ease of doing business in Kuwait and has brought about legislative changes to attract foreign direct investments in Kuwait. Kuwait continues to spend on the mega projects in strategic Oil & Gas and Infrastructure projects. In addition, there are various other mega projects in pipeline, for which the tenders will be issued soon during the course of the year.

These projects definitely have promising business opportunities for local business as well as international companies wanting to participate in the Kuwait projects as subcontractors.

In addition, Kuwait has recently announced its Vision 2035, which will require significant investments in infrastructure, education, healthcare, over the course of 5-10 years.

Is there anything else you would like to add?

I take this opportunity to share our firm credentials. Our firm represents about 70% of the tax payers in the country and we are proud to serve almost all the major market players. We are a team of about 50 tax specialists, the largest tax team amongst the tax service providers, which includes team of experts in VAT, BEPS, Transfer Pricing, cross border tax advisory and tax compliance services.

Alok is a partner with EY’s Middle East practice and is based in Kuwait. He has lived and worked in Kuwait for over 25 years and has detailed knowledge of business and taxes in Kuwait. He has considerable experience in advising entry-level strategies for foreign multinationals wishing to do business in Kuwait.  Alok has been involved in a number of consulting assignments (including cross-border planning, application of double tax treaties and the efficient handling of tax and commercial affairs for project due diligence, business paper preparation or review, and structuring operational activities). Alok is a member of the Institute of the Chartered Accountants of India and is an active member and frequent lecturer at the American Business Council, French Business Council, British Business Forum and Canadian Business Council in Kuwait. He is also on the Board of the American Business Council in Kuwait. Alok has been consulted by various government organizations in Kuwait on the practical implementation of various regulations in Kuwait, including the Ministry of Finance. Alok also works closely with the Kuwait Direct Investment Promotion Authority (KDIPA) and a number of other government institutions.

Contact details

Alok Chugh

Partner - MENA Government and Public Sector Tax Leader

Mobile: +965-97223004 / +965-97882201

Phone: +965 22955104

alok.chugh@kw.ey.com

www.ey.com

Floor 18-21, Baitak Tower, P. O Box: 74, 13001 Safat, Kuwait

Based in Germany, Westphal+Partner offers a wide range of independent tax, accounting and audit services, specialising in small and medium-sized foreign-owned enterprises doing business in Germany. Besides that, the firm acts as a controlling unit for the investor ensuring oversight. As CPAs, Westphal+Partner’s accounting operates risk-oriented detecting and avoiding misstatements during the accounting process, preventing changes at the annual financial statement. Finance Monthly speaks to Partner Ingrid Westphal-Westenacher, who tells us what clients expect from an accountant and shares the challenges that her firm faces.

From your experience, what do clients actually want from an accountant?

Our customers have decided to hire experts to solve a problem that has nothing to do with their core business. They want to focus on their business idea without losing sleep thinking about tax payments and accounting. Once entrepreneurs decide to outsource bookkeeping or get help from a tax advisory, they expect viable solutions enabling long-term success. And they are right to do so. An outsourced bookkeeping must be objectively and legally correct at any time, while also being up-to -date. Since corporate tax in Germany tends to be quite complex, especially for people with scant knowledge of the local tax codes, clients should expect their tax adviser to explain tax issues in a comprehensible manner, so they can make the right decisions.

How do you make sure to keep up with you clients’ expectations?

Communication - not just with the business owner, but with the management and the staff too.

What challenges would you say you and your firm encounter on a regular basis? How are these resolved?

One challenge that we face is knowing our clients’ business, plans, expectations, and needs. Only by knowing all of them, you are truly able to advise clients on a rational basis. One way to resolve this issue is to build a relationship of mutual trust. In order to do so, we firstly articulate what customers can expect from us, clearly defining our services and explaining our proceedings. With this certainty, customers know what to expect from us, so they can focus on their businesses without worrying about taxation or accountancy standards.

Foreign clients add a cultural dimension to the customer relationship - an aspect often underestimated and frequently resulting in underlying frictions. People from different parts of the world have different cultural preferences and backgrounds; i.e. some people from China have a different attitude when it comes to taxation, when compared to people from Germany. The essence of it is to avoid pointing out the differences, but instead, to make sure that both sides fully understand how the other side’s processes and systems work. To avoid any kind of misunderstandings, we not only pay close attention to these differences, but, for example, we also have colleagues in our team who are Chinese or have lived in China and are familiar with the culture.

How are these challenges set to change, in conjunction with the advent of technologies and the potential future needs of clients?

Both challenges will persist, even with the advent of technologies. However new technologies are already disrupting audit and bookkeeping. Today, clients can check the books at the end of the month online and see how their business performed. In the future, bookkeeping will be a fully automated process with real-time results, by the day, enabling better oversight and steering and even fewer costs due to AI-powered accounting software.

As a long-term former Chairwoman of the working group Quality Assurance SME at the Institute of Public Auditors in Germany (IDW), I’m convinced we will see significant changes in the field of auditing. Tool-based data analytics will enable us to read out process data and check them by sophisticated data algorithm. This will put auditors in an unrivalled position to consult the client on strategic decisions.

What’s your piece of advice to our readers?

When the decision to outsource bookkeeping has been made, try to hire an accounting firm run by CPAs. Accounting firms with a pure background in tax sometimes tend to disregard the code of commercial law, focusing narrowly on tax law; thereby causing problems with the mandatory preparation of the balance sheet under the German commercial law, and insofar causing unnecessary trouble and costs. Finally, trust your gut feeling when hiring an accounting company - it is very important to feel at ease and understood by your adviser. Be cautious of people hiding behind technical jarring.

Website: https://www.westphal-wp.de/

More than nine in ten finance and accounting professionals (92%) are optimistic about increased automation in the profession, according to new research from Renaix.

The study, which questioned over 200 finance and accounting professionals, reveals that 81% are seeing their role impacted by emerging technologies, such as advanced data analytics (63%), cloud computing (42%), robotics (17%) and artificial intelligence (15%). This increases to more than nine in ten (94%) who believe these technologies will impact their role in the next five years.

Yet, despite the increasing role of technology, only 12% of those questioned believe their job will be completely automated within the next five years, with most seeing new tools as an opportunity rather than threat. Two thirds (69%) say automation will enable them to be more efficient, over half (59%) say it will allow them to add greater value to clients and 40% say it will reduce the amount of transactional work they’re involved in.

But that doesn’t mean there aren’t challenges, with more than half (59%) of respondents having to learn new skills to keep up with technological developments, with data analytics (54%), soft skills (54%) and working with new technologies (51%) coming top of the list.

Many are also worried about skills shortages over the coming years, particularly in data analytics (52%), STEM (science, technology, engineering and maths – 42%), and soft skills (31%). Furthermore, a quarter (25%) of those questioned say their employer still isn’t investing in upskilling the finance function to work with new technologies.

Paul Jarrett, Managing Director at Renaix, comments: “Emerging technologies are set to transform the finance and accounting sectors, with many professionals already feeling the impact on their day-to-day responsibilities. And it’s encouraging to see that, far from being intimidated or threatened by these new ways of working, the majority of professionals are excited and optimistic, believing automation will improve and expand their role in the coming years.

“Finance and accounting organisations have a fantastic opportunity to drive forward digital transformation, empowering all employees to play their part in developing and implementing new ways of working. However, to do so effectively, employers need to ensure they are equipping the workforce with the right skills, as well as investing in bringing in the right talent. While there will always be a need for traditional finance and accounting skills, we’re seeing a significant rise in demand for a broader range of backgrounds, particularly those with STEM qualifications. Businesses therefore need to plan their talent needs effectively, to ensure they stay ahead of the game.”

(Source: Renaix)

Britain’s 5.3^[2] million strong army of sole traders and micro businesses estimate they’re spending the equivalent of 2.5 million working days collectively each month on managing their finances, a figure which could be a serious underestimation according to KashFlow.

KashFlow commissioned a study among sole traders and owners of businesses with less than ten employees, to get a better understanding of the pressures they feel when it comes to things like balancing their books, managing cashflow and doing their annual tax return. The study uncovered some surprising findings. Despite almost a third (32%) admitting that managing their finances leaves them feeling stressed, only 6% rated their finance management abilities as ‘not good’ – with 87% rating themselves either ‘really good’ or ‘not bad’ at doing things like keeping on top of cashflow, managing payments and staying compliant.

As part of the study, KashFlow considered the list of jobs that are part of financial management for sole traders and micro businesses, all of which they say they’re currently fitting into less than half a day a month. These include:

• Creating and issuing invoices to customers
• Chasing late payments
• Recording all income and expenditure
• Reviewing corporation tax liability to ensure money is put aside
• Reviewing payments to owners and directors (including shareholders)
• Paying staff salaries
• Paying suppliers (including rent) and ensuring they’re not paid twice
• Managing expenses (paying staff and ensuring expenses are billed to customers)
• Managing staff pensions
• Reviewing prices against competitors to ensure the company is competitive
• Costing new jobs and creating quotes (or prices and estimates) based on time it will take to do the job and/or supplier costs
• Profit forecasting - Ensuring that the company will make a profit in the short and long term and making adjustments to the business where there is a discrepancy
• Cashflow forecasting – Ensuring that the company can pay invoices when they full due
• Reviewing investment for growth opportunities and calculating the opportunities and risks
• Regularly reviewing supplier costs to ensure value for money
• Reviewing capital investment needs and funding

As a business management tool, KashFlow makes all these tasks quicker and easier, with the exception of competitor price analysis and reviewing supplier costs.

Oliver Shaw, CEO of KashFlow said of the findings: “It’s really encouraging to see that many of those we surveyed feel confident and in control when it comes to their business finances, especially as we know it’s not their favourite thing to do. However, the figures suggest that many could be underestimating how long they actually spend each month, or perhaps overlooking important finance management tasks which will help them stay in better control of their business in the long term. We know that they would far rather be earning money doing what they love than staring at a spreadsheet. It’s one of the reasons why software like ours exists; to make the time intensive and tricky things easier for people.”

KashFlow say the impact of non- compliance on small firms and sole traders should not be underestimated, with penalties being enforced for late payment and filing, or mistakes with a broad range of things including tax returns, statutory accounts to Companies House, PAYE, P11D and National Insurance. These can have serious consequences for micro businesses, a sentiment echoed by Roy Maugham, Tax Partner at UHY Hacker Young who recently said, “There is increasing pressure on small and mid-sized businesses to spend their time and money on systems to ensure that tax affairs are accurate and up to date. Without adequate care, small businesses are at risk of being pulled up over minor mistakes or small disparities, which could incur disproportionately heavy fines and penalties.”

Oliver Shaw concluded: “Sole traders and micro businesses make a huge contribution to our economy, and our research shows they’re a really passionate and motivated group, who love being their own boss. Staying on top of their finances is vital for them to be compliant and ultimately, stay afloat, so they should consider tools that allow them to do it in a smarter and more efficient way.”

(Source: KashFlow)

[2] https://www.gov.uk/government/statistics/business-population-estimates-2016

Luke started his career in Sheffield, working as Finance Officer for Sheffield Union before moving to London to work for Tesco PLC. During his time at Tesco, Luke worked in Central Finance with responsibility for weekly management reporting and working capital, before moving to China with Tesco’s property business in Beijing. Luke’s next move was to Thailand, to work on a series of finance and business development projects as part of Tesco’s local subsidiary, Tesco Lotus. In addition to Luke’s financial responsibilities in Bangkok, he also took on the role of deputy project manager for the launch of the first Tesco Extra in Asia. In 2012 Luke left Tesco to join Tough Mudder in the USA. At this point, Tough Mudder was only 18 months old, but it was already reaching revenues of $70m. In 2014 Luke returned to the UK, working in a senior finance role for Marks & Spencer, focusing on Marketing & Strategy, as well as undertaking a secondment with HRH Princes’ Accounting for Sustainability Project. Here he talks to Finance Monthly about the accounting company he co-founded less than a year ago - Tech & the Beancounters.

Tell us about Tech & the Beancounters. What were its beginnings and how did it develop into the company that it is today?

 We set up Tech & the Beancounters to make finance simple, professional and accessible for everyone. Coming from an industry where I’d seen so many firms supplying outsourced finance at high cost with junior staff, this meant that many start-ups and SMEs could not afford their services or received a sub-standard service. My co-founders and I wanted to change that.

What have been the company’s top accomplishments thus far? 

 Our greatest accomplishment to date has been helping a distressed client through a tough period of trading, helping them to win back the confidence of investors and produce a credible financial plan that allowed the firm to raise debt and equity to secure its position as a going concern.

 From an internal perspective, a key achievement for me has been the recruitment of our founding team; we have a fantastic Head of Analytics and Head of Business Development, Tech & the Beacounters would not be growing at the rate it is without them.

What are your goals for the future?

 Our short-term goals all involve client care and team development. We have experienced rapid growth to date, but we want to ensure we are constantly developing the service clients receive, as well as make sure we are providing value-add analysis and decision making tools that distinguish us from high street accountants.

 In the medium term we are focusing on improve the “tech” in Tech & the Beancounters. We are developing our website into a more interactive platform that should include online client accounts. Furthermore, we are using some of the latest reporting software, including Microsoft Power BI to improve our interactive financial reports to give client even greater insight into their businesses.

What challenges would you say you and the firm encounter on a regular basis? How are these resolved?

 The most frequent challenge we face as a firm is time pressure. We have been resolute from our founding that our reach does not exceed our grasp, and we are incredibly loyal to our clients. We understand that as we grow, we will need to empower a wider team to take over some of the front-line interactions with clients.

The most frequent challenge we have observed amongst our clients is in forecasting/budgeting: some obsess about plans, some do not plan at all. We have seen several clients de-rail themselves because they cannot decide on a specific budget/business plan or course of action. In response to this, we have developed robust scenario planning tools that complement our budgeting and forecasting models, allowing clients to visualise the different possibilities for their firms and the decisions that will accompany them.

What does the future hold for you and Tech & the Beancounters? Do you have any upcoming plans or projects you would be willing to share with us?

Our focus will always be on sustainable growth – we want happy customers who stay with us for the long-term. We are also developing a new online portal for our clients so they can check their reports and financial information in real-time. There are also a couple of opportunities in China and New York emerging, but I’d like to keep that under my hat for now...

To hear about tax practices in the UK, this month we spoke with Rebecca Potton - a Chartered Tax Advisor with 15 years’ experience and Head of the Private Client department at Myers Clark, Chartered Accountants.

 Established in 1912, Myers Clark is one of the largest independent firms of chartered accountants in Watford, UK. Myers Clark offers a broad range of services for thousands of businesses and individuals, as well as national and local organisations in the Not-For-Profit sector.

Can you tell FM a little about the services you provide and the kind of clients you deal with?

 We are able to provide a full range of services including accounts, tax returns, tax planning, trustee and executorship. I also act as an expert witness often in cases of matrimonial disputes.

Myers Clark is very fortunate to have a varied client base, comprising sole-traders and partnerships to high net-worth individuals and top executives.

What are the most common tax planning solutions that you offer to your clients?

 Assuming the role of a trusted advisor and professional friend, our clients seek our guidance on trusts, inheritance tax and estate planning, together with the routine compliance matters such as self-assessment tax returns. Many clients utilise the expertise of our department to arrange their affairs tax efficiently whilst also maintaining their current standard of living.

We frequently act on behalf of a director both in an individual and business capacity, which affords us a unique perspective from which to advise. Such cases require us to consider a mutually beneficial tax solution for the business and the individual without incurring increased tax liability to either party.

What would you say are the specific challenges of assisting clients with tax-related matters?

 Many of our clients seek tax planning because they wish to pass their wealth to their families, however in most cases they wish to do so without comprising their current standard of living. Similarly, there are a number of clients who prepare their finances to facilitate a comfortable retirement whilst achieving the greatest tax efficiency. We ensure that tax is not the sole motivation behind our advice, it needs to be the most effective solution for that client’s individual needs.

Do you have any examples?

 A client, let’s call her Alison, was widowed in her early sixties and was worried about her inheritance tax liability because she was still earning a significant salary. Not unlike many people in the South East, Alison’s home fully utilised the inheritance tax reliefs available. Alison also had a stock market portfolio and an investment property, which was becoming cumbersome to manage. When organising her affairs, Alison was clear that she did not want to distribute her assets to her children immediately, but wanted to prepare effectively.

As a result of the planning, Alison was able to sell her rental property and decided to invest in products which gave her sufficient income to maintain her lifestyle, retained her capital and reduced her exposure to inheritance tax.

Another example is Bill, who sought advice on an exit strategy from his trading company to minimise this tax liability and whilst enabling him to access sufficient funds to spend his retirement sailing. Like many individuals, Bill had not worried about inheritance tax nor had he made sufficient provisions for his retirement. An issue for Bill, which is also faced by many other clients, is that the value of his shares in his company were exempt from inheritance tax by virtue of business property relief. However, as soon as he retired and sold his shares, Bill would have a cash asset liable to inheritance tax, in his case generating a tax liability of approximately £300,000.

Our priority for Bill was to ensure he would have enough capital to buy his boat and built this into the planning, which when completed saw Bill with a pension providing him with income for his retirement and an inheritance tax saving of £60,000.

As a thought leader, how are you ensuring that clients are engaged and informed about the development of new tax regulations or permissible strategies in the UK?

 We pride ourselves on being the go-to accountants for many businesses and individuals in Watford, and have established a reputation of excellence, integrity and innovation. Our specialists are trusted by clients to provide accurate information about tax regulations. We provide our clients with the opportunity to actively engage with this information through a calendar of seminars and events, as well as targeted communications.

Can you tell FM about your involvement in the community?

 Myers Clark has a CSR policy which includes charity fundraising events, being involved in corporate charity partner networks and establishing partnerships with local schools. This year we are introducing a new programme of work experience and summer job placements to local students in Year 10, Sixth Form and University Students.

In terms of market competition, where does Myers Clark stand nationally and what are its goals moving forward?

 Myers Clark is one of the largest independent firms of Chartered Accountants in Watford with a well-established reputation for highly skilled specialists. Our goal moving forward is to continue to provide support to individuals and businesses navigating the complex maze of tax and facilitating tax planning to ensure a profitable future.

Philip Letts, CEO of global procurement platform blur Group says now is the time for CFOs and CPOs to unite.

Technology is changing accounting and financial management forever. That much we know already.

But in an era of economic and political uncertainty, when CEOs repeatedly cite cost reduction as their number one priority, is now the time for CFOs to push on and embrace technological change in a far wider sense?

Right now CFOs should be telling their teams that a key reason for their existence, processing accounting transactions, is gone. But the seismic change will not stop there. Technology is already impacting on another vital aspect of how organisations manage their finance - procurement.

Recent reports from the likes of EY, PWC and Deloitte have revealed the scale of procurement waste, which globally now stands at £1.56trillion a year. Yet spend optimisation, particularly across indirect spend, remains an Achilles heel for many CFOs, despite the recognised savings that can be achieved.

Today, some 20% of organisational spend is typically unmanaged, made up of the tail spend of numerous low-value transactions, often uncontracted and through many suppliers (up to 80% of the entire indirect spend supply base).

Ultimately, cost reduction is a key part of any business case for the use of technology. And responsibility for achieving cost efficiencies rests with the CFO. So they need to be ‘ahead of the curve’ when it comes to process improvements and system changes, including automation.

Just as CFOs need to guide their finance teams as they rapidly consider their future roles as technology takes over more of their ‘everyday’ tasks, so CFOs should be considering the role of their procurement teams.

Online global marketplaces, self-service portals, mobile apps and artificial intelligence providing transparent processes, access to suppliers across the globe and detailed insight on the price and demand across the full range of business services and goods, and indeed on suppliers themselves, is already starting to transform what for too long has been seen as the poor relation within financial departments.

According to Deloitte’s most recent global procurement report published in December 2016, the use of cloud-based platforms and mobile technology by procurement functions has doubled in just 12 months.

In accountancy, technology means less time spent on financial close, allowing more time to be a strategic asset to the business. The same shift is true for procurement functions, where the most progressive have already moved from fulfilment of contracts to spend optimisation including right-sourcing and fractional outsourcing.

Adopting technology for procurement covers a range of activity that sits under a CFO’s remit:

• Implementing competitive bidding
• Digitising the purchase of business services to achieve savings and speedier delivery
• Developing a fraud prevention strategy including digital procurement and a compliant process for vetting suppliers
• Adopting a cloud-based business services catalogue - with vetted and up-to-date suppliers
• Strategic sourcing, coupled with creating strong supplier relationships - to ensure strong alliances with key suppliers and innovation

Just as most organisations have taken the key step of investing in software as a service (SaaS) models for their financial accountancy needs, simplifying processes with little or no customisation, so the same trend is happening in procurement.

And just as in accountancy, those that stick with legacy on-premise systems are also realising that having customised, non-standard systems and processes is costly and unsustainable if they expect to remain competitive.

Adopting and using technology successfully first requires a clear strategic approach, which is why CFOs should be the drivers to make procurement a more strategic and effective function using the right technology in the right way.

CFOs share many of the same preoccupations as CPOs, with cost control, risk management, technological advancements and talent development the top CPO priorities identified by Deloitte. Digital technology is receiving more investment, but often lacks the strategic context to maximise the potential benefits for the business (just 40 per cent have a clear digital strategy), which is why the CFO’s involvement is crucial.

The closer the working relationship between a CFO and CPO, the easier it will be to fully understand and maximise the opportunities across key aspects of a business - the efficiency of internal systems, how well suppliers are managed, compliance, evaluating the range of technology and sourcing options across direct and indirect spend.

In an era of on-going cost reduction, done strategically and driven by the CFO, a focus on procurement can start to drive stronger and longer-lasting cost reduction across wider aspects of the organisation. Where once we talked about procurement and supply chains, now is the time for spend management and spend optimisation strategies to come to the fore, and for CFOs and C-suites to consider the opportunities they bring.