Sage Blog

Over the last few months I’ve had the opportunity to talk to a number of Accountants about the changes to Real Time Information for payroll (RTI) and what it means to them.

So, what is Real Time Information?

Real Time Information (RTI) is a HMRC initiative to improve the accuracy of PAYE, reducing the need to send out corrections for overpayment or underpaying and the possibility of fraud.

Under RTI employers will be required to submit information electronically to HMRC on or before they pay their employees instead of just once a year.

What has been clear to me is that there is a clear divide between people who think RTI is a good thing and those that don’t but one thing for sure is that almost all see it as just another compliance aspect they need to deal with on top of  Self-Assessment, iXBRL, Financial and Payroll Year End for their clients.

Use RTI to strengthen your business

Some Accountants I’ve talked to are looking at RTI increasing the time and administration of running a payroll and considering whether they need to increase costs but could this be counterproductive in that you may trigger some clients to look elsewhere.

Other forward thinking Accountants are looking at RTI positively in turning around their viewpoint that payroll is a loss leader but a great client acquisition tool in their business today into an opportunity to drive more clients into their business.

Whatever you think and feel about RTI, there is one thing that I would recommend that you do; communicate with your clients, let them know RTI is coming, let them know what it means to them and tell them not to worry about it. With the support of both yourselves and Sage inspire confidence that we have RTI covered.

Get ready for RTI ahead of the crowd

I’m a typical male who always leaves things to the last minute, but if I had the chance to get RTI Ready before most other practices I would jump at the chance. Well, if you want to get your practice and your clients Payroll RTI Ready before April 2013 you can.

You and your clients have the fantastic opportunity to not only be RTI ready but also help shape how HMRC and Sage provide on-going help and support.

Register now

If you are interested simply click RTI Pilot Registration and we will be in contact soon.

In my next blog I will be talking more about Sage’s plans to make the transition into RTI as simple and seamless as possible, but in the meantime you can find more information about RTI and we are doing on our website at www.sage.co.uk/rti

Neilson Watts – Sage Payroll Expert

So firstly, why blog? Why not advertise your practice in the local Yellow Pages or Newspaper?

My answer to this is simple, think about the last time you needed to know something, not specifically a business query, but anything.

What did you do? Where did you go to find information?

I’d be amazed if more than five percent of you didn’t think ‘I Googled it’. Research is showing that our behaviour is changing; we are now much more inclined to trust internet search engine results ahead of paid-for directory listings, and we trust higher ranking websites ahead of those below them. This change is going to be reflected in the behaviours of your target audience, so you must consider search engines as integral to developing your business.

So the next question has to be, how do I rank higher on search engines?

Websites are regularly indexed by mathematical algorithms which calculate their ranking position, the precise indexing algorithm is kept top-secret but it considers factors such as Keyword Density, Meta Content, Age of Content, Inbound Links and Richness of Content.

High ranking websites will be rich in relevant keywords for the given search string, well built, updated regularly, referenced regularly and contains a healthy mixture of images, text and videos. These attributes are also typical of blogs, and so they can be invaluable to improving your website’s performance on search engines.

So, now you understand that having a blog can add value, we come to the crucial part, content. A lot of people are concerned about creating content; they assume that because they are not journalists or writers, that no-one will be interested in what they have to say. I argue to the contrary, regardless of whether you are a secretary, accountant or bookkeeper, what you are is an expert in your professional field and someone whose experience and insight has value to your peers.

Thought leadership

In Sage we refer to this as ‘Thought Leadership’, being seen by your industry as a reliable source of relevant information. Writing a blog isn’t easy, far from it. Your content needs to be accurate, relevant, engaging and most importantly original. Once you get into the habit of writing though, it becomes a lot less challenging and you will actually find that there are lots of topics out there for you to discuss.

What are the latest developments from HMRC, has using software helped your practice become more efficient, how will VAT changes impact upon your clients, how has working with your practice helped resolve problems for a client. There are a handful of topics ripe for blogging, which you can have on me!

Ideally I’d recommend keeping your blogs fairly short, something like 300 words is about right, and should only take you around half an hour to write. When you start, don’t overstretch yourself, try to write a blog once a fortnight, perhaps while you’re having a sandwich over your keyboard. Don’t expect instant results, but keep writing anyhow, the more relevant content you create, the better. The key part is that if you persevere, you will get results.

If you use other social media like Twitter, Facebook or Linkedin, then share your content there as well. Every click and inbound link will add to your blog’s authority and help to improve search engine performance.

Once you’re feeling confident in your blogging, you could even guest blog on Sage’s blog, we’re always interested in hosting content, which by linking back to your site will add to its authority. Just let us know if you fancy giving it a go!

Alex Walker, Sage Accountants’ Team @alexatsage

What is an infographic? Well put simply, it is a visual representation of information or data, which translates the information into simple images and dialogue.

One of the better know examples is the London Underground Map, which takes a network of train lines and stations of potentially overwhelming complexity and using simple colour coding makes it simple, navigable and beautiful.

We decided to try our hand at infographics because as we’re sure you know, the world of accountancy, finance and taxation can be complex. And we feel that there are better ways to present this data than just through tables! The beauty of infographics is that they also allow you to provide a narrative to the data, whilst representing the numbers in a manner that is more easily digested.

We chose to produce an Accountant’s Overview of Social Media as we know from our recent Roadshows and Virtual Conference that it is a topic which is prompting a lot of debate in the industry.  I hope you find it useful and if you have any feedback, we’d love to hear it!

So without further ado, here is Sage Accountants’ Division’s first infographic:

Alex Walker, Sage Accountants’ Team

Paul Donno

Sorry – competition now closed – We’re giving away three free tickets to the ICAEW’s Business Benefits of Social Media (in association with Sage). To win leave a comment on this blog post by Thursday 30th June and we’ll randomly chose the winners. Don’t forget to include your email address!

It revolutionised our leisure time, now social media is redefining the way we do business too. Or is it? I work in marketing and over the past 3 years social media has become a widely used communication channel; every campaign that I work on now has a ‘social media’ element.  I happily admit that I live in a ‘communication’ bubble due to my role, so was left wondering if the rest of the world is switched onto using social media for business…or is it just us?

It seems that the answer from accountants is “yes, we are interested”. So interested in fact that ICAEW approached us about partnering with them to create a social media event for accountants, as they felt there was a need for accountants to get more information on this subject and how they can use it to market their practice. Obviously we agree!

So is it useful to my business?

Like all marketing tools, getting it right takes time and energy. A well-defined social media plan will help you achieve further growth. And as accountants are finding out, the benefits of an effective strategy can be many and varied, offering cost-effective ways to market your practice and services.

Ok, sounds good, but give me an example…

This is where I hand over to Accountant, Paul Donno, who has been one of those accountants keen to embrace the trend which is now providing him great results. His Suffolk-based practice, Paul Donno & Co Ltd, serves more than 300 small to medium-sized clients and has had a formal social media strategy in place since 2010.

For us it’s about branding and marketing, about putting a human face to our business and broadcasting our messages to a wider audience.

It gives clients a snapshot of who we are and how we operate and can work well as a recruiting tool. It is straightforward to negotiate, extremely cost-effective – in most instances it will only cost you the time it takes to update your account – and it’s fast too.

We use it in a variety of ways, most notably to tell people about things like training courses. The results speak for themselves. We’ve just had bookings for two days of ACT! training as a direct consequence of our Twitter advertising.

Our followers are growing every day, so much so we’ve taken on an external agency to manage our account for us. Now we’re looking to identify further channels and ways of reaching our clients and market.”

Paul’s Tips For Social Media Success

Be consistent

If you are going to have a social media presence, you must be prepared to maintain it. There’s no point starting something you can’t finish!

We’ve issued three iPhones to staff on the condition that they use them to tweet every day, that way we know there will always be a steady flow of information.

Decide on tone and content

Think carefully about the image you want to project – and the language you need to use to do this.

In relation to content for our corporate Twitter account, my brief is actually fairly wide. At this stage, I’m as interested in the idea of creating a solid social media presence as the content. I trust my team to produce tweets and content that is appropriate – in the same way I’d trust them to attend a networking event and behave in a way that was respectful.

Think engagement

For me, social media is a great way of engaging with people – and showing them the human side of your business. With that in mind, content has to be engaging – interesting enough to keep their attention and relevant enough to keep them coming back for more.

Who will manage things moving forward?

Many practices, including ours, consider taking on an external agency to manage and implement their social media strategy. They can help monitor your output, take care of day to day maintenance and also measure your success.

Joined up thinking

It’s worth thinking about how you are going to let people know you have a social media presence and where they can find you.

Linking different platforms – websites, Facebook, Twitter and LinkedIn pages– is relatively straightforward and can help direct traffic. We have recently added a live Twitter feed to our web page to ensure clients can see what we’re saying, and what our thoughts are, across a range of platforms.

Look ahead

Technology is constantly transforming the way we communicate and we are always looking for the next ‘big thing’. YouTube is going to be massive for us. We’re looking in to using it at the moment because it’s great for putting short, sharp messages across in an accessible way.

Follow Paul Donno @pauldonno

Follow Sage UK @sageuk

To register or find out more go to ICAEW Business Benefits of Social Media in association with Sage or follow  #icaewsm on Twitter

Sheryl Thomposon, Sage Accountants’ Team and Paul Donno, Paul Donno & Co Ltd

I’m pretty sure I’m not the only magazine editor who sat there last Wednesday night, 15^th June, between 9 and 10pm, with my head in my hands, speechless and in disbelief, at what was unfurling on The Apprentice.

Steve Porter, Exchange Magazine

Hip Replacement?

The mind-meltingly patronising ‘Hip Replacement’ magazine was being pitted against the outdated, garish and gauche ‘Covered’; the former being described as something Viz would mock up, the latter boasting a section classily entitled ‘blowing your load’.

Clichés such as ‘funky’ were being thrown around in wild abandon. “Old people” were being asked what, well, “old people” like nowadays. Guys from the GQ generation were being stopped in the street and asked what they’d blow their aforementioned load on.

In both instances, the response that came back was one of incredulity or just plain dismissal! “I don’t want to tell you” was a common retort when the men were quizzed, and when the “hip” bunch were asked for their input they made it clear that 60 year olds don’t want to think that they’re 60.

So, what followed had me sat eating my arm, as the guys’ utter lack of engagement with the load-blowing section were overlooked, and Hip Replacement was rolled out containing imagery of, well, 60 year olds embracing in the most awkward, unnatural pose – looking every single one of the 60 years they weren’t supposed to be making reference to.

Even for viewers who have never been even remotely involved with magazine editing it was cringe worthy stuff. The looks on the faces of the publishers was priceless, and I never got bored of their reaction to the title ‘Hip Replacement’.

Getting your content right

But then I thought, well what about my own periodical – ‘exchange’ magazine for Sage Accountants’ Club?

Is it right that I sit here, throwing smug criticism after smug criticism at the television screen?

Is my magazine so targeted, so newsworthy, so well written that I can laugh outlandishly at two other magazines falling so far short of the standards of my own prized publication?

Obviously the answer I came to very quickly is “of course it is!”

I guess every editor likes to think that they’ve got their content absolutely nailed down; that they have the right mix of informative, interesting and topical articles.

The harsh truth, though, is that you’re never going to get it absolutely right all of the time – you try to provide the right content for as many people as possible and I suppose you have to accept that 100% of the stuff in there isn’t going to be right for 100% of the readers. But I find the best way to gauge how well you’re doing is to ask the readers, but more importantly to listen to what they’re telling you and then acting on it.

We’ve previously sent out feedback forms with exchange magazine, breaking down all the sections and asking people to rank then. We’ve asked what they want to see more/less of, and all the time we try our best to take this on board. So that customers can see the results in future editions.

My first task as editor of exchange was to completely relaunch it; to give it a complete makeover and to make sure it contained what accountants wanted to see. But even when we relaunched it, in November 2009, we knew we wouldn’t get it 100% right first time. So we used 2-way dialogue with our accountant readers to get their thoughts.

We found out quite early that readers didn’t like the very wide page format, so we changed it and slimmed it down. They wanted to see more technical information and tips on our software, so we doubled the no. of pages dedicated to it.

I’m not saying that exchange is now 100% right for everyone, far from it. But I like to think that it’s constantly moving in the right direction. And we’ll only edge further to that impossible 100% through continuously listening to the folk that read it.

So maybe I won’t be as hard on those Lord Sugar wannabes next week, as I know they didn’t have the luxury of time in order to get their magazine right. And maybe I need to up my game, as it takes me 3 months to produce an edition of exchange, whereas they did it in 9 hours!

And I certainly won’t be shouting at the tele again – because I know they won’t be listening!!

Steve Porter, Exchange Editor

It’s been a tough few years for the accountancy industry. And the toll taken by the recession has had very direct consequences for us all.

In an effort to cope with the economic downturn, we all know that many firms have had to freeze or even cut salaries, with some asking staff to accept reduced working or conditions in a bid to increase efficiency and minimise redundancies.

Steve Porter, Sage Accountants' Division

But now, as tentative recovery begins, accountants are starting to ask when they’ll be rewarded for their loyalty – and those personnel who settled for less will soon be asking for more.

So will they be successful? And will firms face even more difficult decisions in the months to come as a result of previous cost cutting?

What will the effect of the recession have on current staff whose careers have halted during the downturn and how will the new raft of summer graduates find their way in this changing landscape? One thing is for sure, there is no shortage of young people wishing to join the profession.

Almost 10% of all UK university leavers currently pursue a career in accountancy in some shape or form. The vast majority of these still enter the ‘big four’ firms – KMPG, Ernst and Young, PriceWaterhouseCoopers and Deloitte & Touche.

Although there is a small decline – the number of qualified workers employed by the top 50 firms has fallen by about 3,000 or about 5% over the past year – this means there are still almost 57,000 accountants working in the UK.

Access to such a large talent pool has been part of the problem. Having such a large number of staff and graduates to choose from means that in recent years employers have been able to offer reduced salaries as people compete for jobs.

In turn, new joiners have found themselves having to lower their pay expectations, sacrificing financial gain in return for job security.

Those already in position when the recession began have seen salaries frozen or hours shortened. And the introduction of four-day working weeks and optional extended leave have also been seen across the sector, as part of a longer-term strategy to stave off redundancies. Other smaller firms have laid off management staff and replaced them with less experienced, cheaper graduate recruits.

While this type of cost cutting might work well in the short-term, industry experts warn it could prove costly in the long run.

Although it could be argued that having such a large pool of talent to choose from means it is possible to secure strong candidates at reasonable rates, the departure rate of staff in such an environment is likely to be high.

If firms continue to offer non-competitive salaries even when the economic climate begins to improve, personnel will move on – wasting money and time spent on training and career guidance.

With this in mind, firms are urged to resist cutting training in a push to reduce costs.  Some argue that companies who don’t train their staff are far more likely to have problems later on – that those who invest in developing the talents of their employees are much better placed to weather tough times.

In some of the larger companies employers are offering accountancy professionals salaries that will not entice people to move, and those people who do move are more likely to do so with reluctance or because they feel they have no choice.

In order for employers to find and retain the most talented candidates on the market, there needs to be some change in the way they attract talent. Going on the understanding that people will be happy just to have a job isn’t feasible for the future, and there must be more forward thinking in the market.

As soon as there is evidence of an upturn, there will be huge unrest in the market if employees do not feel suitably engaged with employers or feel that they are not gaining enough recognition for their work. And unless comprehensive succession plans are in place, companies may not be prepared for a loss of skills and people when the market moves on.

So as the economic climate continues to change, how we attract, retain and reward staff looks set to be a talking point for some time to come.

Steve Porter, Sage Accountants’ Division