4 | Q2 2020 There’s no doubt the last few months have forever changed the way businesses operate, with more demand for remote business systems than ever before. However, looking back over the last five years, the accounting industry had already begun making huge leaps towards totally virtual systems, particularly for SME’s. The following contributing factors all contributed to this shift, which has allowed for greater flexibility and efficiency for many companies at this time; • Making tax digital brought a substantial change as all companies that are registered for VAT needed to begin submitting digital returns and this sped up the evolution and move towards a virtual accounting world. • All accounting systems have now transitioned to cloudbased systems • Apps have been connected to software to increase performance and paperless working • Companies can plan, forecast, and understand their finances looking forward • On and offsite accounting are now genuine choices instead of needing to utilize an internal team and incur fixed expenses According to Bernard Merchant of Marden&Co – an accounting firm based in Surrey, specialising in SME businesses; “We are now living in a virtual world and this requires companies to lean more on their accountants to provide virtual bookkeeping and management information. It is more important than ever to see your accounts from anywhere in the world at a click of a button.” What’s next? How do industry-leaders like Marden&Co see the landscape changing over the course of the next few months? “We anticipate companies reducing fixed costs all round, with less or no office space, fewer employees operating in fixed areas and a lot more services being performed using software and technology. As costs continue to be reduced, no doubt all companies will have to begin considering how to create an ‘oyster’-style tap in and out service as we progress and move out of the lockdown and that this will change travel, accommodation and traditional service expenses for those operating in major cities. “But it’s not all bad news. Merchant says lowering of costs for a normal SME, can ultimately result in a better work/ life balance, and possibly a greater appreciation of positive contact with others where face to face meetings will be that much more meaningful.” Virtual Accounting New Norm For SMEs
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