As already pointed out in the comments, criminals will carry on getting away with it and businesses will be under even more pressure to comply.
Of late, smaller businesses have been facing a "counter industrial revolution". In contrast with the 19th century, when the industrial revolution was boosted by a new type legal entity (joint-stock companies) and the concept of the"veil of incorporation", we are now going in reverse and heading for an industrial recession. The only survivors will be the big corporations whose controllers are gangsters gone "legit"
Let's face it , stress is due to the ridiculous amount of compliance and AML work combined with the constant changes in reporting standards.
I have seen those who love all this nonsense. They all have something in common that I do not wish to discuss here.
Being a practitioner does not seem to be a profession anymore. It is just like an agency; 'Statutory Auditor' acting on behalf of the government (as the term implies) and a Tax Accountant acting on behalf of HMRC. No accountant tries to reduce a tax bill anymore; those days are gone for ever.
Basically MT gave the ordinary worker a chance to buy their own home and start their own business. It worked. Then along came GB and started to destroy that legacy.
Bless Maggie ! She did try to give power to the ordinary person and business.
AI has always been overrated. Your article seems to recognise this, I am happy to say.
Some accountants , however, seem to be getting excited over AI; thinking that it will reduce their workload. They should be thankful that business entrepreneurs make decisions with their brains and will power. If entrepreneurs started to rely on AI, there would not be much business going on.
The only trades that benefit from a form of AI (better referred to as fast calculation through programming) are Derivatives and bookmakers (not bookkeepers). Both use some laws of physics, especially the former . You could also add Actuaries.
As for the accountant, since it appears he wants to become a robot (and is already, anyway), I can understand the excitement over AI.
This is the sort of article that I would have expected to read 20 years ago. Things have move on quite a lot.
These days, you would often feel you were among a cast of East Enders instead of an accountancy firm or lawyers or bank.
It has its good and bad points.
I think some comments here are being a bit harsh on the taxpayer.
I totally agree with you.
Ironically, even accountants can fail terribly when it comes to dealing with cash accounting vs invoice accounting.
Accountants understand the principles but very few would know how to transfer a business that uses cash-accounting for VAT from one software to another. I am often called upon to tidy the mess of a colleague who did not understand how to bring individual unpaid invoices from one system to another in order not to mess up the VAT on the new software when using cash accounting for vat.
When I make an issue of it , I get the usual response from colleagues: "we do accounts production and tax. We are not bookkeepers". If we are not then what is it that accountants do ?
Red Leader wrote:
Operating profit: 9,927, stated before:
Software impairments: 18,604
Finance cost: 14,459
Income tax: 4,007
Resulting in: Loss 27,143
As with all publicly listed companies , you need to read between the lines.
I could not resist downloading the 100-page annual report (if only to see how window dressing operates in this day and age )
Interesting how Intangible Assets consist mostly of Software development costs .
Perhaps the Catholic church needs to get its bite back. Maybe rekindle its link with Cosa Nostra and go hunt for the culprits and get medieval on them
I don't think that people are resistant to cloud because they are from a certain generation. That seems to be a view of some commentators here and it is the wrong view.
I am IT friendly but I do not like cloud; whether it be cloud storage, cloud software or cloud apps. I hate to be dependent on others (servers, internet connection,etc) and to be at their mercy. I also do not like the risk of personal data kept on third party computers.
Accountants are throwing in the towel because the profession has become a bit of a joke. Onboarding a new client, for example , is a daunting prospect. Then you have all the compliance work not to mention the dreaded QAD visit.
We have 4 accountants in the family including my wife who is a partner in her own firm. I have sworn that there will be no more. An enterprising attitude combined with intelligence should not be wasted in a profession where you are now treated like a child or even a potential criminal (read diciplinary hearing reports - struck off and heavily fined for petty things most of the time.
Also , I have respect for clients and will not betray them by putting their data on cloud without given them other options, just because it suits me.
I have had the privilege of working in the profession in pre-self Assessment days ; when an accountant was a true professional and a champion for their client. Now we just have the robotic accountants who happen to love cloud.
I have yet to find someone or some organisation who actually understand where bridging software fits in.
So many think that accounting systems means : Xero, QBO, Sage, etc. No one ever considers the thousands of ERP software used in the UK ,that originate either from the US or Europe , that are not MTD compliant. I have made a few of those become MTD compliant through a two-stage process : 1) write a macro to convert raw reports into the 9 VAT figures in a few seconds with no manual intervention and 2)use a basic bridging software to send over the figures to HMRC.
A lot of accountants need to start accommodating the needs of those businesses and not tell them to switch to software that would never be able cope with the complexity of the business. Switching from ERP to Xero, QBO or similar is like moving from Windows 10 to Commodore 64. Sadly, I have seen accountants doing just that and sending standard letters to all clients askling them to switch to "mtd-compliant" software.