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AE: How prepared are accountants?

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14th Sep 2015
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We regularly meet with accountancy businesses of varying sizes, says Matthew Mitten. Last month, we had meetings with around 20 firms - each with very different sets of clients on their books.

What really amazes me is the lack of awareness when it comes to accountants and the auto enrolment legislation. Most have certainly heard about it, but few - to my knowledge - seem to be promoting it heavily to their clients, and flagging the approaching staging deadlines. We hear comments from accountants along the lines of: "Yes, we are just starting to look at this legislation now, or we will do in the next six months or so."

Recent reports have appeared highlighting that 1.8m SME employers will need to set up a workplace pension over the next three years, as opposed to the originally forecast amount of 1.3m.

With this statistic in mind, shouldn't a level of responsibility rest with the accountant to ensure their clients are as well prepared as possible? I'd imagine - given these large numbers - that most firms will have a few dozen clients that need to auto enrol their employees into a pension scheme during 2016 and into 2017. These companies should be preparing as soon as possible - to avoid possible errors and lack of choice in pension provider when it's crunch time.

In a piece of research we conducted earlier this year, we uncovered that 42 per cent of companies plan to turn to either their accountant or bookkeeper for guidance when it comes to getting their employees enrolled into a workplace pension. Accountants have to appreciate that they are and will continue to be a port of call for their clients when it comes to supporting them through auto enrolment.

It's highly likely that many (but not all) small business owner/managers are now researching the topic of auto-enrolment in some detail, and - potentially - to a level that they understand the legislation more than their accountant. But, isn't this a chance for accountants to really add value? And to pass on the knowledge they have learned? No service professional wants to be caught out, or to be seen as being on the 'back foot'. I'd argue that auto enrolment presents a real opportunity to develop and build on relationships with existing clients. And, for those offering a payroll solution, the chance to attract potential new clients.

Workplace pensions isn't a core focus for accountants, but the onset of auto-enrolment is a chance for them to provide a level of expertise. Whilst they can't recommend providers to support their clients through the auto enrolment compliance process; accountants could be offering a guiding hand and pointing them in the right direction. 

When it comes to pensions, people 'switch off' - it can be seen as being a dull and boring subject matter. But, it doesn't have to be that way - brought to life and made easy, everyone should benefit from the onset of auto enrolment. For many employees, this is their chance to begin saving for the future, and for the employer - they will be seen as supporting their staff - working towards increased loyalty and retention. And for the accountant, this is their chance to really stand out and to be seen as going that extra mile.

Matthew Mitten is the director of Enrolsme, a complete online auto enrolment solution.

AccountingWEB has launched the No-one gets left behind campaign to alert as many accountants as possible to the obligations implied by auto enrolment. Read our simple eight-point statement which sets out the auto enrolment facts you need to know.

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