Embracing accountancy industry changes that spell good news for business services
There have been rumblings in the accountancy world about the impending changes to the audit exemption threshold. With the EU’s Accounting Directive voting through the European Parliament to allow member states to increase the threshold on businesses requiring full audited financial statements; businesses with a turnover below £10.3m will no longer have to provide them.
The news of this shook the sector as many accountancy practices thrive on a large proportion of their business being audit services, particularly in the case of those groups with multiple regional offices. However, we embrace this change, as it will force the development of innovation in the sector, as many will be looking for ways to boost their offering in other areas, promoting other services or even looking to develop new services to meet the needs of businesses today. This can only be good for businesses who will benefit from a more innovative approach to accountancy services that cater for the very different business requirements in a challenging economic climate.
For too long, the sector has been able to rest on its laurels when it comes to the development of services and creating a modern approach to accountancy solutions. Diversification will be key in the fight to survive this sea of change.
At Adams Moore, this approach is embedded in our culture; we developed and launched Board Support – a higher level of support for owner-managed businesses for a fixed fee – almost ten years ago. Many clients have benefited from this and have been able to capitalise on opportunities to grow their business; opportunities that we have helped them identify through the service. Offering a wide range of services as part of the solution, such as initial company health check, monthly monitoring and quarterly strategic reviews, management accounts preparation and ongoing budgets and forecasting – to name but a few – it’s a service that was ahead of it’s time, and now quite pertinent given these audit exemption threshold changes.
We’ve always believed that accountancy should be much more than audits or end of year tax returns, and that businesses should be able to access good business advice without worrying about the meter running – as the cost can be a barrier to many businesses accessing advice that can them them grow. The difference some on-going monitoring and a steer in the right direction can make to an SME can be significant.
So whilst some in the accountancy world might be upset by these reforms, we believe it is a development that will force innovation and diversification for the benefit of businesses everywhere.