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The accountant of the future

Understanding both FRS102 and cloud technology

We keep a close eye on the accountancy and tax world - its vast, complex and changing faster than at any time in history. When I first trained in practice we had one computer between ten of us and as a practice that made us forward thinking and cutting edge among our competitors! The accounting rules of the game (known as Generally Accepted Accounting Principles or GAAP for short) were well established and really didn’t change a great deal – that world has changed and its just the start.

If you own or run a limited company in today’s social media savvy world, it would be easy to take the view that technology has solved all of your accountancy and tax challenges after all ‘The Cloud’, with its fixed fees from only a few pounds a month means that software has it all in hand. A word of warning - watch your back and your business, because even though it’s true that technology has made the preparation of financial statements a much easier platform for us all, with much quicker outcomes and information available at the touch of a button, it also brings with it a significantly higher number of risks to be considered.

Cloud accounting saves a lot of processing time and brings clients and accountants closer together by allowing us all to access the same data but it cannot provide an experienced accountant’s keen eye for detail and knowledge of trends. Nor can it deliver a consistent interpretation of a complex accounting policy or the correct notes and disclosures in the accounts to meet your legal obligations under the Companies Act. In a world where we are still seeing errors in financial reporting from some of the best businesses and accounting firms in the world (not mentioning Tesco as an example here obviously) it’s imperative that you don’t allow yourself to become complacent. By all means value the technological skills of your accountant but please don’t undervalue what their relevant experience, up to date broad spectrum of specialist knowledge and trusting, supportive relationship that cuts both ways can deliver to your business.

Let me share with you 5 key things that I believe you should be discussing with your accountant in relation to your company’s statutory accounts - not necessarily in one meeting but over the years you work with them: (read more)

This was posted in Bdaily's Members' News section by Harlands Accountants .