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this story does not make sense
So the young people buying a practice do not read then. They are all going to rush to buy now at overflated prices.. I think you will find 5o's somethings will cope fine. It is a patronising piece.
As for receipt bank perhaps they should keep quite and concentrate on their software. It is not as great as it thinks it is. Too expensive and it make lots of mistakes I have spent more time fixing items receipt bank coded. It was quicker to enter it in the first place.
I am looking forward to moving towards digital but I think the software companies have a lot to do. As some of them are so dumbed down re reporting.
I am 47 this year and looking forward to the next 10 years.
I'm 60 this year and thinking
of carrying on past expected retirement age.
In my view, it would be naive to ignore the wise counsel of Tony Margaritelli who, as one of the founders of ICPA, has genuinely provided never ending support to all of the membership.I'm convinced Tony has a 36 hour clock.
Tony's comments will be his genuine opinion, as part of an ongoing debate.
Only two of my client's are signed up to formal software, the rest; carrier bags, spreadsheets and yes, the good old Simplex D. Much as I've tried, change, in many cases, isn't an option. This scenario has created me a decent living but, more importantly, it's created a good number of relationships, which are of great significance to me.
HMRC may consult but, in effect, listen to no-one. They and HM Government, assume that broadband provision in the UK, is second to none where, in reality, like many aspects of life in the UK, it's only second best. At my office I'm subscribed to 200 mbps whereas, where I live, if it's windy, the signal collapses!
Over the last few years I've seen the "imposition" of MLR, RTI, AE and now MTD (making tax digital). Up to now I've weathered the storms and organically adjusted to what is required. I'm sufficiently humble and honest enough to accept I will have made my share of mistakes. However, I've retained a hard core of exceptional client's simply because I try to provide a service, which is second to none.
In my view only health and education have suffered more interference from those who "allegedly" know best. But, lets be honest, since 2007/2008 (the financial crisis) and 2009 (the debacle of MP's expenses) who would trust the opinion of those who know best?
Is age an issue really?
So as a relatively 'young' guy in my own practice I see the following:
- digital is happening so it's adaptation time
- age does not impact the ability to adapt, my 88 year old Nan loves her iPad!
- supply and demand is true and let's face it there are more baby boomer accountants than the next generation so even without digital this would exist
- buy / sell is very black and white in looking at things, partnerships and long tail commercial agreements can be ways to unlock value for all
- baby boomer generation benefitted from so many things in house prices, pensions etc so we should not feel sorry for them
- I built a 100% digital and cloud practice without any prior practice experience so if I can anyone can (I made mistakes and learnt a lot so if anyone wants to know how please get in touch)
- personally I would welcome a bit of inter generational co-operation as both have a lot to offer and if we put customers first and build value for them then working out how to share it seems the easy bit
So let's not focus on age, the inevitable or resisting change and just get on with a bit of good old fashioned customer first thinking to create value and then we can talk about how to share and pass that value on.
.
You should never do anything line life based on what MIGHT be.
The form of digital is far from set, for all we know we may be just where we are with RTI, sticking in nils 11 months of the year and actuals in month 12 for director only payrolls for example as there is zero oversight of how its processed so long as the right total is in there in month 12.
Remember how every single payroll in the country had to register for a pension?
Then every single payroll, except single director firms? [ reducing at a stroke by 50% the work]
Then every single payroll except director only payrolls [taking another 30% of payrolls out]
Sanity is slow, but it creeps in eventually.
I reckon we will report garbage, sorry carefully worked out forecasts, 3 times a year and once properly. Its the only pragmatic way to make it work. Or what we do now with some auto-submissions in the middle.
Scaremongering of the Highest Order
You should never do anything line life based on what MIGHT be.
The form of digital is far from set, for all we know we may be just where we are with RTI, sticking in nils 11 months of the year and actuals in month 12 for director only payrolls for example as there is zero oversight of how its processed so long as the right total is in there in month 12.
Remember how every single payroll in the country had to register for a pension?
Then every single payroll, except single director firms? [ reducing at a stroke by 50% the work]
Then every single payroll except director only payrolls [taking another 30% of payrolls out]
Sanity is slow, but it creeps in eventually.
I reckon we will report garbage, sorry carefully worked out forecasts, 3 times a year and once properly. Its the only pragmatic way to make it work. Or what we do now with some auto-submissions in the middle.
Agree with all of the above. The only way this can work is to report guesstimates 3 times a year with adjusting amendments (possibly in quarter 4) to arrive back at what we do now. I'll worry about the digital side of things when it happens. Until we know what the new proposals are we can only speculate. If the new system becomes unworkable, or more to the point unacceptable to the taxpayer, I can see many resorting to tactics which I'd discourage today. We may well see mass incorporations if that circumvents unworkable rules (maybe 2 or 3 sole traders sharing the same company?) When the time comes I shall be thinking laterally but the last thing on my mind will be the hypothetical value of my practice (as one of the derided baby boomers).
Piece of Drivel
Change is what accountants deal with day in, day out.
Yes, the MTD is not welcome, but as a profession we will just get on with it.
There might be a very small minority that was already contemplating retirement that just don’t want to bother with the digital changes, but it isn’t widespread.
patronising in the extreme
I started witha n Olivetti 652 mag card reader and coupled electric typewriter in 1979 and have been computer literate ever since, coping with networking myself, followed by the tablet revolution. Most of my clients come with a good csv! I will be here when all of you youngsters are still trying to wean yourselves off the childish facebook and inane twitters! I note that a significant number of accountants' websites now have out of date feeds and it looks awful and appears shallow. I secretly think that 50% of us are still the luddites you always were and always will be. As for the Digital revolution, Anglesey has just 5 properties on superfast broadband! It will be HMRC's biggest fail yet. Better to go and do some trawling in the BVI!
Computer literacy
""I started with an Olivetti 652 mag card reader and coupled electric typewriter in 1979 " ah! a new comer! I started in 1966 on an IBM 1401, with 16K. But I'm not an accountant, I just support accounting systems.
Sell Now!
Sounds more like a marketing pitch to try and drum up some merger and acquisition business.
Fact is, we've had to adapt to new stuff all our lives- like self assessment, to name but one.
Rules change every year- most of us don't quit.
As someone almost 50 I think MTD is a stupid concept for micro businesses as most business owners don't want to spend hours doing the accounts- they are good at running their business and leave the accounting to the experts.
Unfortunately our Institutes don't represent the small people properly and don't want to upset HMRC so it's left to the likes of the 'Alice in Wonderland' tax campaign to fight the taxpayer's corner.
MTD will create a huge pile of new work for us, so that should increase valuations and fee income, so selling now would be a terrible idea- after all, once MTD comes in all those 'luddites' will have to convert anyway, and that's extra fees.
In fact, savvy buyers would search out those 'luddite' practices to purchase and then agree a price so that they only pay for retained clients, then charge clients to aid in the conversion process and get their money back in year one. This would push up the price for such practices in a properly structured deal.
MTD
I have to agree with Ian. We've always had a healthy number of clients who rely on us for monthly/quarterly book-keeping and/or management accounts and we've been busy over the course of the past couple of years converting as many as possible of those to Xero. I see MTD as a huge opportunity for practices with small business clients to take on the reporting function and at the same time give the client a clearer and more timely view of their financial position. Bring it on!
Have I missed something?
What Is "the substantial increase in supply" that will squeeze our prices? As Ian McTernan says, this will generate extra work, I've already started explaining to clients who are coming in with their usual "bags of [***]" that we'll have to be setting up proper bookkeeping systems for them, and there still seems to be more than enough work to go round.
Birdman talk sense
Agree with Birdman, there will be plenty of work to go round. Helping clients be more efficient, and making sure internal systems are in place will just help even more.
I dont get it
Like other comments on here, I dont understand why Tony feels the value of practice will decrease - MTD will increase workload and therefore fees making the value of a practice higher.
I would also imagine more people will be seeking accountants rather than trying to manage without.
Is Tony leading upto an increase in subscriptions.
I agree with much of what is saiad above and by Tony and I do expect the number of accountants in practice to reduce. We are a savvy lot and will adapt to new ideas and based on rti will be needed more than ever to sory our HMRC's [***]-ups. Tax made digita I suspect will reduce the accuratcy of the information submitted to HMRC A result of which will be the need for more input and demand for our services will increase.
Just as IFAs have changed we will too. More tax planning and less compliance may well be the future.
See you all on the otherside of MTD.
Change should improve things ,
For Change to be successful it needs to improve matters , are any of the changes made by HMR&Customs over the past 25 years an improvement?
If so who has benefited? Not my clients and not me (or my practice).Only HMR&c I think but what have they done with the benefits of the Digital Age ?
The have reduced their workforce to such a low level that they are barely fit for purpose.
They have retired or got rid of any staff that knew about tax .
Their systems creak and groan and likely to get worse with the new systems RTI. Universal Credits , CIS -I can keep on!
Now they are trying to con the GOVT (not hard) that they have all the answers .Jacks Magic Bean and its called Making everything Digital or whatever.
What they should be doing is getting to real grips with Multi Nationals and as an example the Panama disclosures.
Are you telling me that HMRC did not know about Panama (and all the others). If they did know they did not do anything about it and if they didn't know then someone should be fired for incompetence (oh yes I see - that would be most of them).
Instead they launch pathetic little enquiries into window cleaners and waiters!
Do not worry about the future - the future is only the past all over again! and again!
I started with a piece of charcoal and a cave wall, and look at me know, I'm sure I will weather the storm.
You were lucky to have charcoal...
When I started, all I had was a piece of dinosaur [***] & a few beads.
Actually, little has changed...
I'm 67
and been in the profession for 51 years. The only thing I can honestly say that has made my professional life difficult is the now constant determination of successive governments to re-classify the self-employed. We have phrases such as "disguised self-employment". A lot of [***] tax legislation is built around this and that doesn't bode well for having a healthy work force.
I have no intentions of retiring. I love my work too much.
No new software required for MTD
Just a smartphone to take lots of photos and HMRC will sort everything else out.
I'm 65
One thing that comes with age is wisdom and experience and a fairly acute ability to distinguish between hype and those matters that genuinely require serious attention. Unhindered by inane twittering or making sure we tell everyone on facepage when we have a coffee, we are able to deal with problems and new ideas in a more calculated and pragmatic way. No mass hysteria for us as we have been there before and know that if something looks too good to be true, then it probably isn't and MTD is a great example of this. I am not saying that it will not work, but it will not work for everyone and the Government will have to adapt accordingly.
I find it highly amusing and somewhat absurd that on one hand HMRC are projecting themselves as the innovators of digital taxation and on the other hand in the main, we cannot even communicate with HMRC by email, and when we do, the answer if often to the effect that we will receive a reply within 30 days. Send a letter to HMRC (because you cannot email) and not only do you not get an acknowledgement, it can be anything between 60 to 90 days to get any sort of response.
I was dealing with some of my clients by email in the year 2000, yet HMRC (destined to operate the best digital tax system in the world ... apparently) are obviously backing-off from email communication instead of promoting it.
My own opinion is that HMRC staff have a culture of dealing with matters only when they are ready to do so, as has always been the case, and the idea of dealing with a matter as it arises (by email) is alien to them. No matter how digital HMRC want to be, people are always going to be the spanner in the works whether they be taxpayers or HMRC staff and if this is not taken into account then heaven help HMRC because us oldies know how not to get sucked into the quicksand.
No need for you to worry about us Richard, we have the ability to look after ourselves, after all we have survived this long without failing and we are Accountants. Some of us have actually helped many hundreds or even thousands of businesses over time, and have learned a thing or two from it.
I enjoy what I do and put my clients first. I am happy to adapt to what suits them best, whether it be the latest or the oldest methods, in order to arrive at the correct answers. I am not going to retire for a while but when I do I will ensure that all of my clients are properly looked after and I do not expect digital taxation to adversely affect the value of my practice.
I have had a mobile phone since 1989 and the latest version will never photograph a receipt from a supplier or send accounts to clients, instead it will take proper photographs of family and friends.
“change too far”. I think MDT is a bridge to far father than a change to far. Remember its not here yet, 1 general election result could change everything.