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This story is misconceived.
The typical small business outsources the work that it can't or doesn't want to do itself to external accountants doesn't it?
Totally agree
John. In fact I will go as far a saying the bods that actually do the work could well be more qualified in experience to do the job, because they would have more insight as to how the business is run.
Could this story be a ploy to get more people to join AAT?
Surely not.....!
Could this story be a ploy to get more people to join AAT?
Surely not......!
Figures don't really stack up do they:
"Owing to this skills gap, every small to medium sized business in the UK could have lost an average of £1,277 due to issues such as tax miscalculations, unpaid invoices and fines."
So I can risk losing an average of £1,277 or pay for a qualified bookkeeper then? Even at minimum wage that's less than 4 hours per week and clearly at that level you'd just outsource it as johngroganjga suggests and save yourself the employment complications. If they are saying small businesses should contract the work to suitably competent people (and I say competent no qualified, so as not to re-open that particular debate) then I'm sure we'd agree, but that's not what it says above.
Also the SME definition can cover some fairly sizable and complex businesses, is the AAT not on a sticky wicket here, unless they point out that they themselves may not be competent/qualified to undertake some of the work associated with these businesses?
What's the Problem?
With modern accounting packages such as quick books or kashflow doing all of the work for small companies, the only likely cause for concern would be getting the input wrong. In addition profit and cash flow planning using something like figurewizard is more than adequate to produce accurate forecasts for the average SME.
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With modern accounting packages such as quick books or kashflow doing all of the work for small companies, the only likely cause for concern would be getting the input wrong. In addition profit and cash flow planning using something like figurewizard is more than adequate to produce accurate forecasts for the average SME.
This is 100% the issue, garbage in:garbage out
Its not a software issue, its an understanding one.
But agree with the above this is just another press release.
If this isn't an AAT Advert.......
I have worked with many people who call themselves "accountants" because they hold a little scroll or certificate saying that they have read a text book or two and remembered how to do something on an exam paper. I'm sure there are just as many mistakes made by "accountants" and even larger wastes of money by being too over complicated in their approach to things.
I am not qualified, and have built up a career with good experience gleaned from working with some good people. Even my ancient mother in law is able to input an invoice and pay it to avoid repercussions, and she can't even spell "qualification".
AAT, could you please provide us with your initial data collected and questionnaire of the research conducted in order to verify your controversial outcome?
Beside that, I fully agree with:
@ Johngroganjga
"This story is misconceived".
@ Johnjenkins
"Could this story be a ploy to get more people to join AAT?".
the case for interims direct - or added value services from
well from the profession
the interim FD or Fc with commercial + financial - not full time - portfolio basis is a massive value add to most of these SME's.
The larger practices [ ie probably not sole practitioner] should be able to upsell some additional [ to bookeeping] skills and find that they are able to offer a lot more to their clients - because they get to know their client [ a very important and relevant professional need ! ]
a good booker is fine for record keeping but timeliness and commercial appreciation is another matter
do agree with Johns open post !
SME accounting
The ACCA should remember their origins ?/ when all of them were experienced but unqualified/ and the Association was formed to give them a voice/ However now chartered they appear to be suggesting the lack of a piece of paper makes the current such group
of a "lower " cast ?/ "untouchable"/ as with the ACA/ the ACA however recently took over
the Financial Accountants/ a group similar in origin to ACCA/ "experience but unqualified"
which in theory now makes them part of ACA and therefore superior to ACCA/AAT ?
I agree with "John"