Over the past year or so, you’ve likely dealt with a lot of change. And, with our sights set on the future, more is on its way.
First, cloud accounting software companies started targeting customers and your compliance revenues were threatened. So, you got the new software and put the processes in place. (Tick).
Then…. came the fuss about Making Tax Digital, and your frustrations hit an all-time high.
More, new processes in place. (Tick).
Can you see the pattern emerging?
But yesterday can no longer act as a guide for tomorrow.
The landscape for accountants has changed. Yet it is possible to thrive in this disruptive environment. And, as you have experienced, embracing technology is imperative to keep your firm moving forward.
But what about tax advice?
I don’t need to throw numbers and figures at you about how small businesses make up 99.9 per cent of businesses in the UK, allowing our economy to thrive. And that in 2016, a new business was founded in the UK every minute. That’s more than 525,600 businesses that may have had the opportunity to cut their tax bill.
But, have you ever thought about what it would take to service all these businesses with a holistic tax advisory service?
In the UK, there is only one Chartered Tax Adviser for every 20 Accountants?
And, even more astonishing, there is only one Chartered Tax Adviser for every 6,666 corporate tax payers.
How can advisers be expected to keep up with the demand?
Last year, tax legislation grew by two pages each day. It’s no surprise that 87 per cent of tax advisers think tax is too complex. The 2017 Finance Bill published early last year was the longest ever, at an unbelievable 762 pages.
It’s crazy right? I suppose the first thing you need to recognise here is, there are no shortcuts. Expertise is a necessary part of any tax function, and you can’t simply employ all the tax advisers in the UK.
So, is it time for change?
Maybe? If you think about it, the current tax advisory model in almost every accountancy firm is fragile. Advisers are drowning in legislation; doing everything they can to keep their head above water and service clients’ tax advisory needs. They are often only able to discuss tax with clients after transactions have taken place.
This isn’t sustainable or good enough.
And the solution?
We at Diagnostax think change is the answer. We’re convinced that those who adapt and move with the technology will thrive.