RSS feedsThere was real desperation in the questioner's eyes. 'Please,' he said, 'tell me it’s all going to get better.'
I'm paraphrasing, but only slightly. But I had every sympathy. After all, the partner in the small accountancy firm had just heard how money laundering regulations were set to change, how firms were failing to capitalise on fee-earning opportunities because of a lack of communication among their most senior colleagues and how tax filing procedures were set to change. Again.
If this suggests that the central message of last month's Accountancy Age Conference was a bleak one, it's not too wide of the mark. But, as accountants know better than most, with change comes opportunity.
Our partner's question was driven by growing frustration at the volume of changes in tax legislation in recent years. He was responding to a warning that taxpayers could end up paying £1,000 if they fail to file self-assessment returns on time.
Francesca Lagerberg, head of the tax faculty at the ICAEW, told delegates in no uncertain terms: 'The late filing penalty is £100. Although we do not want to pay that kind of fine, it’s actually not that much money. I would put money on the penalty going up, though.'
The same applies to money laundering. And again any accountant looking for reassurance and for the status quo to be maintained is likely to be disappointed.
Just 24 hours before the conference, Sir Stephen Lander, chair of the government's new Serious Organised Crime Agency, made recommendations to improve the suspicious activity reports submitted by banks, estate agents, accountants and lawyers when they suspect money laundering or terrorist financing have been, or may be, taking place.
ACCA's head of business law, John Davies, said the changes could be significant and told practitioners that change would not end there – despite the volume of new regulations in recent years.
As well as an expected Auditing Practices Board paper on auditors' responsibilities regarding money laundering, due later this year, practitioners should expect incorporation of the third European Union money laundering directive into UK law by 2007.
At least, he said, recent domestic reforms mean that UK money laundering regulations are 'gold-plated' to such an extent that the directive will only have a limited impact.
Few crumbs of comfort there, unfortunately. And there are few to be had closer to home.
One partner in a small firm who turned to Phil Shohet and Andrew Jenner of Kato Consulting for help, admitted he had no idea whether one of his fellow partners was competent or not. As a result he didn't refer any work across, costing the firm potential fees.
A common complaint or a one-off? It's hard to tell. But in a month when the Federation of Small Businesses warned that the percentage of SMEs turning to accountants for advice had slumped to 54% from 74% two years earlier, it highlighted that firms are not short of challenges – internal or external.
The award winners
Ford Campbell was the main winner at the inaugural Accountancy Age conference
and Smart Thinking awards, held at London’s QEII conference centre last month
and attended by 150 delegates. The Top 30 accounting firm walked off with the
awards for Tax Practice of the Year, sponsored by Business Tax Centre, and Audit
Practice of the Year, sponsored by Pegasus.
Silver Levene secured the award for business innovation, sponsored by Global
Operations & Administration Ltd. The £6m turnover practice has set up its
own outsourcing operation as a joint venture in India. Iris won the award fro
Practice Management Product of the Year; Bank of Ireland was named Business Bank
of the Year. The winners received their prizes from World Cup legend Sir Geoff
Hurst.
For more photos of the conference and to access speaker slides go to www.accountancyage.com/specials
