Member Since: 2nd Feb 2009
Overt sarcasm may ensue
21st May 2020
Breaking news - traditional high street banks can't compete with their agile neo-bank competitors...oh wait....
30th Jan 2020
For me the real opportunity for RB is to push into integration with the wider app ecosystem. There's a big issue in this space where you use an app like, for example, Unleashed where PO and PI processing is dealt with in the app before being pushed to Xero. There are workarounds to the problem but they lack finesse and don't actually provide the real benefits of the app - data extraction removing the need for manual processing. The result is that you automate the processing of overheads but manually process the bulk of purchases.
I do realise there are apps that partially solve this problem (Lightyear and Aptimise being a couple) but they are pretty niche and don't feature wider app integrations either.
The Sage acquisition of AE is likely to slowly kill their subscriber numbers where they use alternative providers, but will increase on the Sage side if their sales team hit the phones. The Hubdoc freemium offering will increase usage of OCR at the bottom end of the scale where business couldn't justify the cost of extraction tech for a handful of invoices a week but these were never on the RB radar anyway.
29th Jan 2020
Would be nice to have some clarity over this. We've already prepared clients for the potential changes and the likely need to register in Ireland, to minimise the language barrier. This just creates more red tape for SMEs than less, but that's been typical of government policy for the last 10 years+
16th Jan 2020
Pages 56 and 57 explain why SSAP 10 was replaced https://www.frc.org.uk/getattachment/c30fb305-6f0f-4841-8fa7-8e82011a13f...(Revised-1996)-Cash-Flow-Statements-Oct-1996.pdf
The author's question was: has the business made any money? And the answer is - not really IMO - cash went down by 5, albeit 50 was invested in short term investments (the definition of which changes with the wind), but this had to be funded by 100 of share issue.
If you produced a cashflow for the same numbers the result is much more positive - operating cashflows are 805 and this enabled the business to invest in FA and payout dividends.
Maybe it's in the interpretation, but I know I can make a funds flow statement look positive even when the underlying business is on it's knees - you can't do that with a cashflow statement...
15th Jan 2020
As someone who both understands what profit is and how the various accounting standards manifest themselves to provide the aforementioned should I point out, somewhat glibly, that instead of producing an indirect cashflow statement (the common way to present a cashflow in most cases) that instead the direct cashflow statement is prepared instead - both options in FRS 102 and IFRS.
This does, afterall, look surprisingly like a source and application of funds statement just a bit cooler and more modern for those of us in primary school when SSAP 10 was killed off (for good reason)...
9th Jan 2020
Not sure I agree with Tim's comments here. We have delegated access to our ASA, with each member of staff having their own credentials. However, this causes massive issues for staff who share responsibility for VAT returns and constantly have to re-authorise the software if they log into a client on Xero after a previous colleague has done so.
16th Dec 2019
Somebody clearly didn't spend enough time on Google - a quick search provides any number of credit reference and benchmarking tools available - some at reasonable cost, others not. Better still, I can benchmark my clients along with all the other things the author wants at relatively little cost, but huge value to my clients, with the cloud tools available to me in the market. There are plenty of excellent firms in the UK serving their own particular niche sector in this way.
Yes, this could be done better (and for free) with the XBRL project that's been subject to political delay/ignorance and was pushed back again this year. In addition for small/micro companies, with current exemptions, you only get part of the picture and political decisions would need to made as to how/if this restricted data where to be made available and to whom. It's all doable now, just not implemented in law or the relevant software.
As for comparability, well accounting standards are open to interpretation, for good reason (in most cases) and it's down to the preparer of the accounts to explain, appropriately, how these have been applied. Ironically, big quoted firms are generally pretty good at this with the FRC and markets taking a hawkish view on disclosures and their quality. Unfortunately, this diminishes rapidly once you drop to SME world with boiler plate text generated by AP software. The impending MTD regs, along with the application of machine learning at pre-accounting level, will tighten things up in future years in terms of consistency.
Let's not rely on computers to do our interpretation for us but actually apply our minds to the problem - that might solve the heavyweight fund manager's computer says no problem.
What's with the lousy terminology used in this article? Costs are accrued or prepaid, not deferred - that's for income. which can also be accrued... And prudence may have been absent for a few years but she's back with a bang thanks to IFRS 9.
This article, and the previous one, written by this author explains a lot about why we have to spend a considerable amount of time with our graduate trainees going through a period of un-learning...
9th Dec 2019
Not sure I used the words misstatement in my comment but if I were to I'd make sure to say that auditors only have to address material misstatements in the financial statements and only in the last 18 months or so have they had to consider the accuracy of narrative reporting.
6th Dec 2019
Auditors may address their reports to the shareholders, but their remit is to consider all stakeholders when assessing risk, setting materiality etc. The problem is that auditors have little incentive or power to address other stakeholders' concerns if these are particularly under/mis-represented in the financial statements.
27th Nov 2019
This is the million dollar question and the thing that is hardest to determine, particularly for non-quoted companies. The problem here lies with the auditors, given you're unlikely to see this in 1A accounts, who will have to make some significant judgements around the client's estimates.
The reality of the situation is that most director loans, whether debit or credit, are provided with no formal agreement or terms and so are not required to be discounted as they deemed repayable on demand.