Latest news with #accountants
Yahoo
3 hours ago
- Business
- Yahoo
Slight rise in accountants' Q2 confidence amid fragility: ACCA survey
The ACCA and IMA Global Economic Conditions Survey (GECS) for the second quarter of 2025 (Q2 2025) has reported a marginal rise in confidence among accountants worldwide. However, this increase does not overshadow the prevailing sentiment of fragility in the profession, with confidence levels still trailing behind historical standards. According to the survey, while there has been a slight uptick in the confidence index, reaching a peak not observed since Q3 2024, the overall mood remains cautious. The new orders and capital expenditure indices, key indicators of economic health, have both seen modest declines. These indices are hovering around their historical average and are reflective of the economic landscape following the conflict in Ukraine. The employment index has shown some resilience, edging closer to its average historical benchmark, suggesting a stabilising job market within the sector. On a regional scale, North America has witnessed an increase in confidence, with US accountants reporting a somewhat improved outlook. Despite this, the levels of confidence are still low compared with past data. In Western Europe, there has been a steady increase in confidence, with the UK experiencing a notable recovery from its all-time low in the final quarter of 2024. In stark contrast, the Asia-Pacific region has seen a sharp decline in confidence, negating the positive trends from Q1 2025. This downturn is largely attributed to the impact of significant changes in US trade policy on the global trading environment. For the first time, geopolitical instability has emerged as the primary concern among accountants when considering global risks, overtaking economic, regulatory and compliance issues, which now share the second position in terms of risk priority. Other concerns such as talent shortages and cybersecurity have diminished slightly in urgency. Climate change, fraud and supply chain risks are positioned lower on the list of priorities, indicating a strategic shift towards navigating immediate geopolitical and economic challenges. ACCA chief economist Jonathan Ashworth said: 'Global growth has generally proved quite resilient in the first half of 2025, despite the large increases in US tariffs and massive rise in uncertainty. 'While the key GECS indicators are certainly not pointing to a global economy in rude health, with confidence in particular remaining low, neither are they suggesting that a major downswing is imminent.' This month, the ACCA disclosed the pass rates for the June 2025 examinations. "Slight rise in accountants' Q2 confidence amid fragility: ACCA survey " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 days ago
- Business
- Forbes
Why Business Financial Literacy Is The Secret To Making More Money
Notebook with marks about financial literacy. Chances are you started your business to create freedom, impact, and wealth. But here's what many entrepreneurs learn too late in the game: if you don't understand your numbers, your business will never reach its full earnings potential. Your business is a financial asset that can make you a lot of money, so you want to know business financial literacy. Business financial literacy isn't about becoming an accountant or spending hours buried in spreadsheets. It's about knowing where your money comes from, where it's going, and how much is left as profit. Business financial literacy helps you make smarter, more profitable business decisions. When you understand what your numbers are telling you, you can confidently manage your business through profitable pricing, expense management, sales, and knowing that you don't have a constant fear of running out of cash. What Is Business Financial Literacy? Business financial literacy skills help you understand and manage the financial health of your business. It's knowing how to read your profit and loss statement, track cash flow, create and follow a monthly budget, and use your financial data to help you make smarter and more profitable business decisions. It's learning the language of money that helps you spot opportunities and make decisions that directly lead to more profit. A common misconception is that financial literacy is only important to accountants and financial people. Many small business owners also think that they can put off financial management or figure it out later after they grow their business or make more money, but financial literacy skills will help you get there faster. Without this skill, you are guessing at prices, unaware of hidden costs, and risking the stability of your business. When you have business financial literacy skills, you're in control of your business. You can confidently plan, grow, and pay yourself what you deserve. Why Business Financial Literacy Is The Secret To Making More Money Financial Illiteracy Is Expensive Not understanding your business numbers can leave you making decisions based on gut feelings over data and facts, and that is risky. You could be undercharging your offer and losing money, or you could hire too quickly with the assumption that your revenue is growing, only to face a cash shortage shortly down the road. The biggest threat to a business is running out of cash. This can happen even when sales are strong, because revenue does not equal cash flow. You need to have a handle on your numbers to understand your cash flow. The hidden cost of financial avoidance can add up fast. Without financial clarity you might overspend on items that don't give you a return on your investment. Guesswork doesn't cut it in business and every financial misstep caused by financial uncertainty chips away at your profit and confidence. The Connection Between Confidence and Cash Flow Financial confidence comes with financial clarity. When you know your numbers, you are no longer guessing in your business. You make informed decisions that lead to profit. You make decisions based on financial data. Financial literacy empowers you to expand your product line, launch into new markets, negotiate better deals, secure funding, and so much more. When you understand your profit margins and cash flow, you can confidently invest in the growth of your business. How to Improve Your Financial Literacy (Without Overwhelm) Improving your financial literacy doesn't have to feel overwhelming. You can start with a few simple habits and tools, you can build the knowledge and confidence needed to make smarter, more profitable decisions. Here are four practical ways to begin: Focus on your profit, cash flow, and sales targets. These three numbers give you a clear picture of your business's financial health and help you make smarter, more profitable decisions. Review your financial statements, even if it's just your profit and loss (P&L) statement. Regularly checking your numbers will help you identify trends, spot problem areas early, and plan for growth. If you're unsure how to interpret your numbers or set financial goals, a fractional CFO or coach can help you create a strategy to increase profit and stability. There is financial software that can automate tracking, send alerts, and provide actionable insights so you always know where your business stands financially. The bottom line is that financial literacy is one of the most powerful business skills you can have as a business owner. When you understand your numbers you gain financial clarity, confidence, and control over your financial future. Start with small steps, stay consistent, and remember that every number you track brings you closer to building your wealth and financial freedom.
Sky News
6 days ago
- Business
- Sky News
Tax, interest rates and water
Sky News can exclusively reveal that accountants advising people who entered into a tax avoidance scheme, which was later found to be illegal by HMRC, were being paid a commission. Gareth Barlow speaks to a tax specialist about this. We also hear about new data on water firm pollution incidents, interest rates and streaming giant Netflix's revenue forecast.
Sky News
6 days ago
- Business
- Sky News
Accountants were paid to place clients into loan charge schemes targeted by HMRC
Victims of the loan charge received advice from professional accountants who were being paid to place them into tax avoidance schemes. Sky News has seen evidence of chartered accountants advising their clients to enter loan arrangements, run by companies that were paying them a commission. These schemes were later targeted by HMRC, and workers were hit with giant tax bills, sometimes hundreds of thousands of pounds. In some cases, the tax demands have been crippling. It's a campaign that has driven people to the brink of bankruptcy, devastated families and has been linked to 10 suicides. MPs are now calling for a public investigation into the role of accountants and other professional bodies in the proliferation of these schemes. An independent review of the loan charge is currently under way, but it is limited in its scope. What is the loan charge scandal? It is the latest revelation in a scandal that has caused untold misery for tens of thousands of people, who were enrolled into tax avoidance schemes, often against their knowledge. They included contractors who were urged to avoid setting up limited companies and to instead receive payment through the schemes, which were meant to handle their pay and taxes. 1:42 They worked by paying workers what were technically loans, instead of a salary. This allowed them to circumvent paying income tax. What many assumed were tax deductions on their payslips were, in fact, fees going towards the promoters of the schemes. Tax avoidance is not illegal, but HMRC has successfully challenged tax avoidance schemes in the courts, and workers have subsequently been asked to pay the missing tax. There is no suggestion that these accountants broke the law. Richard's story For Richard Clancey, HMRC's handling of the loan charge feels like "state-sponsored bullying". After being offered a contract role in 2010, Mr Clancey, now a retired computer services professional, contacted a chartered accountant in Kent to help him set up a limited company. The accountant encouraged him to enrol in a payment scheme instead. "He gave us an hour's presentation on the benefits of the scheme and how it worked," Mr Clancey said. "This included how they would handle all administration, pay all tax that was due, was IR35 and tax law compliant, had a lower risk than using a limited company, had been approved by a tax QC and was currently used by several people who were working for HMRC. "The presentation was very elaborate and complicated and I cannot claim that I understood it all, but I wanted to ensure I was legal and compliant, so I trusted the advice of a chartered accountant that use of this scheme was the right thing to do." The accountant told him that he was receiving an introductory fee, but not that he would receive ongoing payment. In 2014, Mr Clancey received an email from his accountant outlining that the previous year he had received £257 in commission. However, he did not receive statements for the previous two years. "Although you were notified of this commission before, we are also required to declare the amount of commission to you according to the guidance of the Institute of Chartered Accountants of England and Wales," the email read. "This commission has not cost you anything," it added. The company's former website page clearly stated that it offered accountants commission, boasting that the rates had been raised. At this point, Mr Clancey was already on the radar of HMRC. In 2012, tax authorities wrote to him to explain that he had been in a tax avoidance scheme that "HMRC believes does not work". He was subsequently asked to pay more than £100,000. "Over the next seven years, I received multiple penalties and threats from HMRC who said I had been a tax avoider who should settle their debts now or face worse consequences later," he said. "There hasn't been a single day when I haven't been consumed by the frustration and anger of my situation and how it arose... Since my involvement with [the scheme] and the subsequent hounding from HMRC and government, a lot of that has changed. This state-sponsored bullying has caused me to suffer some mental health issues. "My personal stress levels were through the roof. I dreaded the next brown envelope coming through the post box with outrageous, unsubstantiated demands. My poor wife would apologise and burst into tears as she brought these to me." HMRC said it takes the wellbeing of all taxpayers seriously. "We are committed to identifying and supporting customers who need extra help with their tax affairs and have made significant improvements to this service over the last few years." Like others in his position, Mr Clancey is frustrated by the blunt approach of the tax authority and the lack of accountability from other parties. "I have been increasingly concerned that my chartered accountant led me into the hands of a scam organisation," he said. "HMRC continues to persecute victims." Government reaction The government has now launched an independent review into the loan charge, and HMRC is pausing its activity until that review is complete - but its focus is on helping people to reach a settlement. The review will not look at the historical role of accountants, promoters and recruitment agencies, even though they propped up the schemes. Politicians and campaigners have called for a broader investigation. Greg Smith, MP and co-chair of the Loan Charge and Taxpayer Fairness APPG, said: "It's clear that many chartered accountants were directly involved in the promotion of loan schemes. "People trusted accountants and had the right to rely on this advice, and yet, instead, are facing life-ruining bills. There needs to be a proper investigation into this as part of an independent inquiry into the loan charge scandal," he said. "Either HMRC warned accountants not to recommend these schemes, in which case the accountants were giving reckless and potentially fraudulent advice; or HMRC didn't tell accountants not to do this, in which case HMRC themselves were seriously at fault. "Either way, it is quite wrong that the current government continues to only pursue those who took and followed professional advice and not those who gave it, whilst profiting from doing so." The experience has damaged Mr Clancey's faith in the sector. "I will never again trust professional financial advice," he said. "If the advice of a chartered accountant can cause this much damage without culpability, then there is something very wrong. It is a failure on the part of the entire tax industry that accredited professionals can, through their advice, destroy the lives of the individuals that they advise." A spokesperson for the Institute of Chartered Accountants in England and Wales, an industry body, said: "We expect chartered accountants to adhere to the highest standards in all of their work, including tax. "Robust rules for members performing tax work are contained in standards which have been developed and strengthened to prevent the involvement of members in aggressive tax avoidance." The organisation strengthened its standards in 2017, after the loan charge legislation was announced, adding that "members must not create, encourage or promote tax planning arrangements or structures that set out to achieve results that are contrary to the clear intention of parliament in enacting relevant legislation and/or are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation".
Zawya
15-07-2025
- Business
- Zawya
Tax Star becomes the UAE's first aI-powered corporate tax software
Developed in Dubai, Tax Star is the UAE's first corporate tax software that uses AI to help accountancy firms and in-house finance personnel save time, avoid penalties, and support more clients without having to hire extra staff. It is particularly adept at addressing the challenges associated with managing complex tax rates, exemptions, and allowances within the new UAE corporate tax system. The unique Tax Star software was built by accountants for accountants, enabling it to integrate directly with their systems and automate daily tasks. After more than 18 months in development, its features combine smart tax calculation, compliance tracking, client approvals, document storage, and integrations all in one place. AI technology is increasingly utilised in the UAE's accounting sector across multiple functions, including corporate tax, VAT, ESG, AML, and other compliance areas, as the industry priorities efficiency, accuracy, and scale. Notably, while many tools offer advisory guidance, Tax Star provides full workflow automation, from calculation through to filing. Rayhan Aleem, Co-Founder and CEO of Tax Star, explained: 'Our vision is to build a global tax technology company, proudly headquartered in Dubai. We aim to help accountants supercharge their capabilities by enhancing productivity and reducing reliance on manual processes. Although businesses are now legally required to retain records for at least seven years, many still have tax-related documents scattered across emails, WhatsApp, accounting systems, and internal servers. Tax Star keeps everything in one place - structured, accessible, and audit-ready so firms stay compliant without the chaos. Rayhan continued: 'What excites us most is how our AI-powered platform is reshaping compliance into something far more strategic. We are not just doing the calculations; we are replacing manual spreadsheets with a system that automates corporate tax from start to finish. This shift allows accountants to devote more time to focus on higher-value advisory work. By building intelligent tools that simplify tax calculations, we're doing more than streamlining a process; we're giving accounting firms a way to scale smartly, advise confidently, and lead the future of tax in Dubai and beyond.' According to accountancy users, Tax Star's AI-powered corporate tax calculator saves 75% of processing time and allows them to handle 50% more clients. Moving forward, the tax technology company is working on launching group tax calculations for companies that fall under a group structure, making it easier to manage group return filings within a single, consistent framework. ENDS For media enquiries, contact: Samantha@
