Now the Accrual World Team knows it’s not popular to play down the economic climate (just ask Baroness Vadera) but we do like a story that sees the silver lining in the enormous and very well publicised cloud on the horizon.

So you can imagine our pleasant surprise when we stumbled across a recent survey by Orange which showed that not only did 33% of SMEs say they had not felt the pinch, but one in five were optimistic about what 2009 held in store.

Now we guess it’s a glass half full question, but it did make us wonder, would you rather have the pessimistic client who looks towards cautious consolidation or the aggressive optimist who is looking forward to a positive 2009? And more importantly, how many of these people had made an informed decision after speaking to their accountant?

The AWTeam would like to propose that Michale Apted produces an updated SME version of his classic Seven Up! documentary and see how these attitudes change on reflection. Although 7 years maybe a little on the long side for this example.

We’d suggest 7 weeks would probably be enough…

After certain disparaging comments about ‘prettier’ blogs out there, we’ve decided that our New Years Resolution for 2009 is to scrub up, put on our best sales purchases and wow our readers with the new improved Accrual World for Accountants.

As we are sure you’ve noticed, we’ve been away for a while, but it’s still been going on behind the scenes. After listening to your feedback the site’s now got a new look and feel and it is even easier to navigate. We’d also like to shamelessly draw your attention to the RSS feed and Email This Post links on the site.

But what’s happened while we were away?

Well Alan Gold’s adventures in a financial wilderness are drawing worrying parallels with the 6 o’clock news, so it may be worth taking a look through the first 4 chapters if you want to be prepared for what 2009 holds in store!

In fact you should schedule in a regular fix of Alan Gold and his prophetic adventures, as we know what the future holds in store for Alan. Yes, you read that correctly. Accrual World For Accountants is finished!!

There will be some new genuinely exciting updates over the next few days so watch this space.

A recent report by recruitment consultant Badenoch & Clark shows that 44% of accountants are less confident about their career than they were at the start of the year. While this statistic is concerning, given the current market turmoil it is not a surprise. The article in Accountancy Magazine stated that around a quarter of respondents believe a clearer career path would make their role more attractive. This indicates that the profession needs to acknowledge the increasingly diverse workforce it attracts. Although people are starting in the profession with the desire for a varied role, it seems they are quickly meeting disappointment at the lack of direction. Practices have to recognize the need to encourage young talent – and perhaps they are already too aware of this when you consider the research from BDO Stoy Hayward that puts talent management as the top priority for Directors.

There has been much to-ing and fro-ing in the papers lately about the US’ adoption of IFRS. The overriding sentiment is that this will happen but nobody knows when. In simple terms, balance sheets will be more comprehensive. In the long term, could it actually lead to consolidation across the two markets and the need for only one firm and one office to support global businesses? On the lighter side, accountants with a travel bug will find it much easier to think about a career move to the States (as easy as it is with the Green Card system anyway). It’s certainly one to watch.

The jailing of accountant Anthony Roberts has highlighted the important of ongoing protection for both accountancy firms and their clients. Mr Roberts reported stole over £700,000 from his clients and was jailed for six years for theft and false accounting. While it could be argued this is an isolated case of a sole practitioner, how likely is it for this to happen in larger practices? At the very least, the case surely serves as a reminder for practices to safeguard themselves against the actions of any one individual and internal procedures, centralised systems and regulations all have their part to play.

According to a recent report in AccountancyAge, the Association of International Accountants is backing a move to protect the term ‘accountant’. Although there seems to be a majority backing from the industry, particularly following ACCA member Alan Shooter’s government petition, there remains some controversy around who will incur the expense. As we have often discussed on this blog, the accountant’s role is increasingly expanding beyond specific commodity duties to support more strategic business activities. As such, we agree that the profession is deserving of protection – not just to safeguard practices themselves but to also ensure businesses continue to receive the quality advice they require. But what are the implications of an unregulated profession? Without this measure in place, are we in danger of diluting the value of accountancy altogether?

As if we needed more proof, accountants play a crucial role not just in supporting businesses but also high profile individuals. Kerry Katona of Atomic Kitten and I’m a Celebrity… fame has come financially unstuck it seems, running up a tax bill of £400,000 that has sent her bankrupt. Can we blame the accountants? Well, that is up for debate but it is certainly a firm reminder of the importance of sound financial management and the need for a reputable accountant to take care of tax liabilities. 

It’s summer. The sun is shining (intermittently) the birds are singing, and at the end of every day it’s Pimms ‘o’clock…. but not for everyone. Spare a thought for those poor accountants whose head offices are in Australia because July is the dreaded year-end! For those companies based in Europe the somewhat arduous task of year-end accounting has to take place in the heat of summer resulting in European accountants missing out on key tanning months. Surely something must be done against this cruel and unfair practice - for the sake of pasty accountants everywhere!

Now, being audited will never be described as the most pleasant of experiences. Most in-house accountants approach the process with a mixture of fear, loathing and, unfortunately for the auditor, resentment. But let’s look at it from the auditor’s point of view. Businesses all too often forget that auditors are called in because they have been asked to by the company. They are an important final check, helping to make sure everything is in order. But how can auditors make this more apparent and enjoy their time in businesses better? Ask around your practice and I’m sure you’ll be surprised how many people have dabbled with auditing in the past. With that in mind, The Accrual World team have put together five key things to remember next time you’re going into a business to conduct an on-site audit. If you can think of any more, feel free to add as you see fit! Five top tips 

• Remember that you are reviewing an individual or team’s personal performance – be sensitive if there are errors!
• It’s easy to focus on the mistakes – make a point of highlighting good accountancy practices too
• Try to get involved in the social side of the company, if it’s appropriate. Maybe even a quick stroll to the nearby sandwich shop to buy lunch?
• Learn as many people’s names as soon as possible – consider everyone your stand-in colleagues for your time with the company
• Offer to do the tea round – a sure-fire winner!

A new survey by Venture Finance Accountants showed that one in five accountants have found that their clients have been refused finance or had their funding restricted as a result of the credit crunch. With the economic outset not looking too great for businesses, now is the time for accountants to step-up and lead the battle to defend against the credit crunch. As times get tough, so must accountants. The role will surely be stretched beyond the core compliance work and accountants will be increasingly called upon for business advice and consultancy. Taking the market worries into consideration, one positive by-product of the crunch may be stronger relationships with clients as their need for financial management skills grows.