New FRS: Your Next Steps part II
The Opportunity of FRS
In our first blog post on the critical next steps of your FRS journey, we detailed how you’ll need to have the right software in place and be prepared to spend additional time managing the transition in order to avoid the mistakes of PLCs of the past.
You can read it again here.
This time, we’re looking at how the new standards encourage owners and managers to change their way of thinking from financial reporting being a matter of compliance – and a significant burden – to taking a more strategic view of their business and its finances.
New standards = more information
To navigate the business implications of the new standards, accountants in practice will need to have exhaustive conversations with their clients to build out the working papers and provide evidence on why, from several possibilities, a particular decision was taken.
Corporate accountants will need to liaise even more closely with their colleagues across the business. Ultimately, company directors are responsible for decisions around what to disclose and what accounting policy to adopt, but they will look to you, their accountant, for guidance and rely heavily on your professional advice.
They’ll also want to understand why their final accounts look different from last year or from what they were expecting this year.
It’s better to be proactive with this conversation and manage their expectations than to have to explain retrospectively all the differences and why they were required. This may promote more collaborative relationships than you have at the moment. At the same time, you can move higher up the value chain, beyond compliance work.
Becoming a virtual FD
For accountants in practice, helping clients to deploy the new legislation to the best advantage is the perfect opportunity to become their virtual finance director. It may also open up opportunities to sell a wider range of business services to clients. It will consume time to have these necessary conversations, so you should start scheduling your meetings sooner rather than later.
It’s entirely possible that FRS may promote more collaborative relationships with your clients than you have at the moment, and that can only have a positive effect on any aspirations to provide value-add services you may have.
FRS: Master the art
Clients love to be dazzled by a confidently knowledgeable accountant, so you’re no doubt keen to become an all-knowing FRS master. Fortunately, you’re in the right place to do just that.
We’re currently hosting a number of classroom-based training courses in half-day or full-day formats, led by our FRS specialists. You can come to us or we can bring the lessons to you if you prefer – our bespoke courses can be tailored to suit every need for you and your practice staff.
If you’d prefer to learn in your own time, we also have a range of overview and ‘key change’ video training options available for you to watch as and when you please.
In our next blog, we’ll be showcasing our FRS Transition Impact Calculator, which enables you to see exactly how much of an impact the new UK GAAP will have on your practice.