Yet again...we find someone who thinks that software eliminates the need for someone who understands the task, how to do it and how to check it. Software assists in processing transactions and collating data, that's all
I think this needs to be sold a bit more. For example: “Clearly, open banking is going to make it much more simple and robust to access banking statements,” Since when has accessing Bank Statements been a problem.
Forgive me, but I suspect the Law Society's motivation is given away in the first sentence. A slump in cases means less fee income for lawyers. I would agree with others who comment that that the answer is to step up enforcement of current legislation. Employers who abuse employees are breaking the law and it is incumbent in Regulatory Agencies to put a stop to it. To be honest, my anecodotal impression is that employers are now much more aware of their responsibilities and the "slump" reflects this.
"Some practitioners are fearful of reduced fees and BIS is of the opinion that micro-entities may well be able to avoid the need for external accountancy and bookkeeping services." Am I misunderstanding the narrative here? Surely this is exactly why it is a good thing. The idea that Accounting Standards should be designed to oblige companies to use the services of practitioners smacks of the closed shop mentality which went out in the 1980s. Many stakeholders are increasingly tired of inane discussions about Accounting Standards which have no relevance to how companies should run their business.
As to the issue of whether HMRC can rely on the accounts, surely it is for them to have their own audit procedures. Company accounts were never intended to be for the benefit of Revenue. This would provide further scope for less use of practitioners. I would rather be audited by Revenue for at no cost than by an accountancy firm for a large fee.
"The cash basis for VAT and SA returns also means some businesses clients no longer need sales nor purchase ledgers." These are always required. If they are not done it is simply a weakness in the company. The attitude that you do things just to satisfy the VAT officer or the auditor is a dangerous one.
My answers
Yet again...we find someone who thinks that software eliminates the need for someone who understands the task, how to do it and how to check it. Software assists in processing transactions and collating data, that's all
I think this needs to be sold a bit more. For example: “Clearly, open banking is going to make it much more simple and robust to access banking statements,” Since when has accessing Bank Statements been a problem.
Forgive me, but I suspect the Law Society's motivation is given away in the first sentence. A slump in cases means less fee income for lawyers. I would agree with others who comment that that the answer is to step up enforcement of current legislation. Employers who abuse employees are breaking the law and it is incumbent in Regulatory Agencies to put a stop to it. To be honest, my anecodotal impression is that employers are now much more aware of their responsibilities and the "slump" reflects this.
Excel can add up
Yes, I can confirm from firsthand experience that this happens.
Reduced Fees
"Some practitioners are fearful of reduced fees and BIS is of the opinion that micro-entities may well be able to avoid the need for external accountancy and bookkeeping services." Am I misunderstanding the narrative here? Surely this is exactly why it is a good thing. The idea that Accounting Standards should be designed to oblige companies to use the services of practitioners smacks of the closed shop mentality which went out in the 1980s. Many stakeholders are increasingly tired of inane discussions about Accounting Standards which have no relevance to how companies should run their business.
As to the issue of whether HMRC can rely on the accounts, surely it is for them to have their own audit procedures. Company accounts were never intended to be for the benefit of Revenue. This would provide further scope for less use of practitioners. I would rather be audited by Revenue for at no cost than by an accountancy firm for a large fee.
Sales and purchase ledger no longer required?
"The cash basis for VAT and SA returns also means some businesses clients no longer need sales nor purchase ledgers." These are always required. If they are not done it is simply a weakness in the company. The attitude that you do things just to satisfy the VAT officer or the auditor is a dangerous one.