The consultation on the proposed cash accounting rules ends this week. It is clear that this initiative is intended to benefit very small businesses, and mainly those who are unrepresented, explains Rebecca Benneyworth MBE.
The potential impact on small firms of accountants is huge, in terms of changing processes and potential loss of fees – particularly those firms who pride themselves on a good service at a reasonable fee. They now potentially face being undercut by agents without accountancy backgrounds, keen to make a killing by offering a very cheap service for cash “accounts”. These issues are worthy of wider debate, but in my view we have to be realistic and accept that this comes from “on high” and is designed to benefit small businesses. We, I guess have no God given right to our market place – and we can discuss the impact of this at some length once the consultation closes. I do have some ideas about how we might re-engineer small practices to benefit from what is going on around us, but will save that for a future debate.
Read the rest of the article to find out:
- Who can use it?
- What are receipts?
- What is expenditure?
- Other issues
About Rebecca Benneyworth
Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.
She also lectures extensively for a range of professional bodies, accountancy firms, commercial organisations and the Inland Revenue. Demand has grown for Rebecca on the lecture circuit where she is well known for her refreshing, enthusiastic and entertaining presentation style as well as having a practical and down-to-earth approach to tax.