New FRS: Your Next Steps part IV
Resourcing the FRS transition
In our previous posts on effectively approaching your transition to new FRS, we’ve explained how using the right software can make the transition a pain-free process, the new business opportunities that are arising as a consequence, and how you can calculate the impact each transition will have on your practice.
You now need to decide what education your team needs on the principles behind FRS: both the professionals involved in the preparation of financial reports and those using the information.
Accountants who completed their training some years ago and haven't covered IFRS will have a whole new language to learn, as the following presentational terms will change:
- Balance sheet --> Statement of financial position
- Profit and loss account --> Income statement
- Cash flow statement --> Statement of cash flows
- Debtors --> Trade receivables
- Creditors --> Trade payables
This new terminology is just the beginning and the changes are not superficial. In fact, the new standards should be considered as completely new accounting frameworks - not just a shift in accounting policy.
No train, no gain
FRS introduces a myriad of changes and factors that accountants need to understand in-depth before they can apply them to real-world scenarios. At IRIS, we’ve put a lot of thought into developing an FRS curriculum consisting of both online courses and public ones in nationwide locations from Exeter to Edinburgh, plus bespoke on-site training.
This means that businesses and practices can choose the option that best suits their budget and the number of staff that require training. For example, an on-site course will save travel expenses where there are large numbers of staff to be trained.
You can read more about our training options here.
Accessing additional resources
Once you’ve assessed the potential workload involved in the transition to FRS, you’ll need to decide whether you can release the time required by your team to have meaningful conversations with clients or business colleagues.
There are several options available to you:
- To free the time of experienced accountants, you could take on a junior to handle the more routine work, with the commitment and overheads that entails
- Taking on temp staff may offer a short-term fix. However, don’t forget that the Agency Workers Regulations, which give agency workers entitlement to the same basic employment and working conditions as if they had been recruited directly once they complete 12 weeks in the same job. This may reduce the attractiveness of using temps
- A proven alternative is to outsource day-to-day work, both FRS and non-FRS related, to a reliable source of accounting expertise such as IRIS OpenResourcing. This is a quality service that gives you access to highly skilled, senior accountants trained in all areas of UK reporting, including FRS
Using IRIS OpenResourcing is a secure and cost-effective way to complete routine accounts and payroll work without the costly overheads and commitment of hiring, training and retaining additional staff in-house.
With regular reporting and processes tailored to your practice needs, the IRIS OpenResourcing team frees your staff’s time to concentrate on higher fee-earning activities and client care - including all those conversations around FRS - with all the reassurances of working with part of the IRIS family.
FIND OUT MORE
And there'll be even further thought-leading insight into subjects such as the new FRS, Brexit, Making Tax Digital and much more at this year's IRIS World, our annual event dedicated to accountants in practice.
Book your free spot and see the full agenda here: