Share this content

Accountancy bodies and push back against software

Accountancy bodies and push back against software

Didn't find your answer?

Is anyone aware of any push back from accountancy bodies regarding software providers suggesting that bookkeeping , accounts and tax can be fully automated and fulfilled for £20-£30 p/m?

I fear that there is a significant 'expectation gap' and that HMRC have self infilicted significant damage with the MTD push without simplification of tax.

I have seen the other postings regarding advertising by the leading small business providers and I must admit that it is starting to grate.

I am referring to typical QBO/Xero small businesses here rather than any operation with an in house professional.

Garbage in/garbage out springs to mind!

 

Replies (19)

Please login or register to join the discussion.

By petersaxton
29th Jul 2021 09:20

If any people are fooled by the adverts they will soon realise that they still need an accountant.
Most software providers think that accountants are the best way to increase their user base.

Thanks (0)
Replying to petersaxton:
avatar
By Open all hours
29th Jul 2021 10:01

Strongly suspect that HMRC are fooled by the adverts.

Thanks (4)
Replying to Open all hours:
avatar
By Leywood
29th Jul 2021 15:44

Even xero's own staff are fooled by the adverts, as seen on here by one such making a ridiculous comment recently

Thanks (0)
avatar
By AdamMurphy
29th Jul 2021 10:04

Accountancy bodies actually doing something? There’s a novel idea. They’re mostly just cash collectors

Thanks (6)
Replying to AdamMurphy:
Flag of the Soviet Union
By thevaliant
29th Jul 2021 15:19

It's funny that they pretend otherwise.
I mean, look at disciplinaries pages.
No one, but no one, is ever struck off.... unless you don't pay your fine.

Thanks (0)
Replying to AdamMurphy:
Slim
By Slim
29th Jul 2021 18:04

can i get a hell yeah

Thanks (0)
avatar
By Jo Nokes
29th Jul 2021 11:20

One does get the strong impression that the accountancy bodies seem preoccupied entirely by the larger firms, and the concerns of we small practitioners are completely disregarded.

Thanks (3)
Replying to Jo Nokes:
avatar
By paul.benny
29th Jul 2021 11:36

I would say that the professional bodies are over-concerned with the minority (<30%) in any kind of public practice.

(Source: https://www.frc.org.uk/auditors/professional-oversight/key-facts-and-tre...)

Thanks (0)
avatar
By Crouchy
29th Jul 2021 12:11

how long until Xero or quickbooks start offering accountancy services to their users who cant actually use the software?

Thanks (2)
Replying to Crouchy:
paddle steamer
By DJKL
29th Jul 2021 12:29

They are all waiting on their being able to develop "Your plastic pal who's fun to be with", a virtual accountant with a terrible pain in all the diodes down his left side, the industry by then will have merged and consolidated into one group, The Sirius Cybernetics Corporation, whose motto will be "We Apologise for the Inconvenience."

Thanks (2)
Replying to Crouchy:
Glenn Martin
By Glenn Martin
29th Jul 2021 12:34

I believe QBO already do this in the US.

I also suspect Natwest fancy a go at being accountants when they bought freeagent.

Thanks (2)
Replying to Glennzy:
avatar
By Leywood
29th Jul 2021 15:42

''I also suspect Natwest fancy a go at being accountants when they bought freeagent.''
no that was to spy on clients books, little did they know what a pile of *** most businesses are because people have no clue how to inut the data.

NatWest used to own train companies, but not because they wanted to be train drivers. (OK I know, not a good analogy)

Thanks (1)
Replying to Crouchy:
Tornado
By Tornado
29th Jul 2021 16:09

Crouchy wrote:

how long until Xero or quickbooks start offering accountancy services to their users who cant actually use the software?

I doubt very much if they will do that. There is much more money to be made from software subscriptions than using the software. Best to get Accountants to do that sort of work.

Thanks (0)
Glenn Martin
By Glenn Martin
29th Jul 2021 12:35

I don't think the main accounting bodies are that in touch with the sharp end of the game that us small practitioners are. Their focus tends to around Big 4 and Top 50 firms and they will have little concern over how "Dave the plumber" actually does his books or how they will deal with MTD. AAT etc maybe are more aligned but have a small voice.

The last 18 months has been carnage to the business community without small business accountants, the furlough scheme etc would have collapsed as we are to small business what the NHS is to health care.

The role of the accountant in making these things happen is often ignored or not valued, but the only reason RTI, MTD for VAT has not been a disaster is that the roll out was done by ourselves, as was the education of clients.

Cutting us out would be a massive mistake, if they do not want to see a shambles unfold.

I have an app that tells me when the fishing is good, but you still need to know how to fish if you want to catch anything.

Thanks (3)
Replying to Glennzy:
avatar
By Geoff56
29th Jul 2021 12:43

Agreed. However, I think that for many small end clients, even the best efforts of their accountant won't be enough, when it comes to MTD for ITSA.

Thanks (1)
Replying to Geoff56:
Glenn Martin
By Glenn Martin
29th Jul 2021 13:48

I guess that is the opportunity for some firms. We only really do Ltd co and the directors of the companies for SA returns.

So don't really have any sole traders clients that this will effect the most. Maybe the contractor firms who have been hit with IR35 are re working there systems to mass produce tax filings for window cleaners and taxi drivers etc.

I did see a good app this week from someone who has built an app for landlords which looks quite good easy to use and was not expensive for anyone wishing to DIY file.

Thanks (0)
avatar
By rmillaree
29th Jul 2021 12:57

I think if accountants started contacting the ASA making complaints that advertising is misleading with relevant real examples and evidence (ideally backed up with client who has fresh bill for £1500 they were not expecting) - this is the quickest route to sort what is probably misleading adverts.

Thanks (0)
avatar
By jane
29th Jul 2021 22:51

I am but a humble book keeper but it is fair to say that the adverts for Quickbooks and Xero are misleading and that some of my customers were beguiled by the adverts into believing 'it's all very simple' and 'you can do it yourself'.
I recently took on a farmer who had subscribed to QB when MTD for VAT became operational. He managed to keep sufficiently 'ok' records for the Accountant to log into his data and submit returns on his behalf - but he had no idea how to reconcile the Bank account etc etc and preparing his year end statements from the QB records was, according to the same Accountant, reasonably ok at the first year end. But small business owners have no idea how to perform journals to bring the b/fwd TB to the correct 'numbers' so the software data becomes less and less reliable and more and more difficult to extract a trial balance.
Unless MTD for ITSA is properly positioned it will be a horrible mess for all unincorporated business' and Accountants alike.
QuickBooks should be renamed with something beginning with S (in my humble opinion) and Xero is only 'ok' as it allows me to WFH in these Covid times for a non vatable business - but the terminology 'bills to pay'........... - or I am just too old - so old that the tutor & I (AAT L4 Financial Stmts) have just been discussing SSAP9!

My farmer has a very shiny Fendt tractor - I too have a driving license - but I wouldn't dream of sitting in his seat :)

Thanks (0)
Melchett
By thestudyman
30th Jul 2021 17:41

With so much accounting based on software, I'm genuinely curious if T accounts are still taught at the lowest levels of accounting

Thanks (0)
Share this content