Accountants make less use of the rear view mirror

Paul Tutin

It may be surprising, but even accountants, a profession epitomised by steady people, working studiously and cautiously on the production of accounts, tax returns and other financial computations, are not immune to the pressures of change. As with their colleagues in the legal profession and banking world, those accountants working in practice have and continue to face change. No longer can they adopt the comfy routine of doing year on year the same work and at the same time enjoy the same level of rewards.

In common with most of their clients, they are having to earn their keep, to work not only harder, but also adopt new ways of working.Whilst historically their ‘work’ would have involved the preparation of accounts for clients, the use of IT and demands of business has somewhat shifted this emphasis.

Accuracy and timeliness have always been watch words for both accountants and their clients. Providing a good set of accounts quickly is no longer enough. Unfortunately, for those accountants that only added up, their days are numbered. Proactive advice and commercial wisdom is increasingly sought after and demanded. With the increased volume and impact of ‘red tape’, business’s accountants are required to not only to be au fait with its specific relevance to but also its impact on clients. Advice and assistance in dealing with matters are more and more a typical part of the accountant’s day.

The development of global markets and international trade, supported by the power of the World Wide Web, impacts on us all, not least owner managed businesses whom are as likely to face competition from abroad as at home. Increased competition and in the main rising costs, continue to place pressure on all important profit margins. Calculation of profit, is no longer enough, a good accountant should and will often be required to help provide advice on improving and sustaining profits.

The government’s regime of ensuring that they receive all tax due, has led to a tighter and more stringent framework not only for processing tax matters, but also ease and flexibility in which it is to use the various tax instruments to mitigate a tax liability. Accountants and those specialists in tax work need to, as part of their service to clients, ensure they are able to provide specific advice and schemes that are tax efficient, avoiding rather than evading any liability. The difference between avoidance and evasion could be jail.

Business sales, mergers and acquisitions of larger corporations are an increasing way of life for accountants and their clients. Growth, succession and wealth creation plans, more often than not, now involve the accountant in providing advice and facilitating what is know as corporate finance work.

The accountancy profession, historically, has probably been viewed as one that is involved in looking back on what has already happened. Their advice and support is based on the certainty that is known. As we can see, their future will undoubtedly involve a shift toward looking increasingly to the future and working with clients more closely to attain their goals, based on a thorough understanding of what has already happened.