KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – SEPTEMBER 2023
- UK’s policymakers urged to accelerate creation of a trustworthy AI ecosystem
The UK government needs to work fast on the detail of regulating artificial intelligence (AI) to give business the certainty it requires. At the same time, the UK should work to secure international co-operation and interoperability, while ensuring that on the domestic front there is a high level of joined-up thinking across sectors and stakeholders (government, business, regulators and civil society) to avoid duplication or things falling into gaps between different regulators. Read More - Andrew Tall appointed Corporate Tax Partner at HW Fisher
Andrew is ACA and CTA qualified and has more than 25 years’ experience managing a range of clients, from micro-companies and non-resident landlords to large multinational groups. Andrew joins HW Fisher from Greenback Alan LLP and advises on a full range of Corporation Tax services from R&D claims to M&A due diligence, and transaction tax planning. Read More - Bank of England raises interest rates to new 15-year high of 5.25% in 14th consecutive hike
The Bank of England raised interest rates for the 14th consecutive time today, upping its base rate by a quarter of a percentage point to 5.25 per cent. But the hike was smaller than the half-point ‘jumbo hike’ last month, signalling that Threadneedle Street is slowing down in its battle with inflation. It brings interest rates to another 15-year high, as they last hit this level in February 2008. Rates have rocketed in the past year and a half, having been at 0.1 per cent as recently as December 2021. Read More - Less than 1% of firms can find enough staff
Relatively few CPA firms are able to find enough employees to fill their ranks and are resorting to strategies like hiring workers abroad, raising starting salaries, offering fully remote jobs, and hiring staff who haven't graduated college, according to a new survey. The survey, from alliant Talent, an affiliate of the tax advisory firm alliant group, used research firm Census Wide to poll 250 top CPA firm leaders in the country. Less than 1% of the respondents indicated they are able to find the staff they need in the U.S and are forced to turn to these other strategies to fill the talent gap. Read More - IRS launches paperless processing initiative
Taxpayers will have the option to go paperless for IRS correspondence by 2024 filing season, IRS to achieve paperless processing for all tax returns by filing season 2025. IRS paperless processing initiative will eliminate up to 200 million pieces of paper annually, cut processing times in half, and expedite refunds by several weeks. Read More - AICPA and CPA.com Announce 2023 Startup Accelerator Cohort
American Institute of CPAs (AICPA) and CPA.com announced its 2023 Startup Accelerator cohort at a kick-off meeting held at AICPA headquarters in New York. This year’s participants include five early-stage companies pursuing a variety of solutions in audit, accounting, tax and e-commerce. The Startup Accelerator supports the growth of early-stage technology companies benefiting the accounting and finance ecosystem. Read More - IRS Gives Taxpayers New Faxing Option to Request Relief on Late International Forms
The IRS says this electronic option removes a step in the paper process, which saves time and eases the burden on international taxpayers. Taxpayers who are not under examination by the IRS now have “an easier, more efficient way” to submit electronic requests for relief when they have to submit international tax documents after a deadline That electronic option is via a fax machine. Read More - TPG approaches EY about buying stake in consulting arm
Private equity group TPG Capital has approached accounting giant Ernst & Young (EY) about buying a stake in its consulting arm, Financial Times reported on Tuesday, citing a letter it had reviewed. TPG outlined its plan for a debt-and-equity deal to separate the consulting arm from EY's audit business in a letter sent to the firm's global and U.S. bosses, the FT report added. Read More - PwC Australia chases 'unprofessional' partner
PwC Australia said Monday it remains determined to take action against partners and other staff who failed to meet professional standards in connection with a tax document leaking scandal, despite losing a court action to force a partner into retirement. Read More - Inflation slows to 6.8% but further interest rate rise likely
Official figures showed inflation has slowed to 6.8% - down from a peak in October of 11.1%, but with signs that the rate of price rises remains stubbornly high, analysts say we're still likely to see interest rates go up in September. Inflation in the UK dropped to 6.8% in the year to July from 7.9% in June. It's the second month in a row that the rate of inflation - how quickly prices are rising - has dropped sharply, and it's now at a 15-month low. Read More - Cherry Bekaert Acquires MCM CPAs & Advisors
The deal involves two of the top 75 largest accounting firms in the U.S. by revenue. In a deal involving two of the 75 largest accounting firms in the U.S. by revenue, Raleigh, NC-based Cherry Bekaert said on Thursday it has acquired Louisville-based firm MCM CPAs & Advisors. MCM has approximately 370 employees in six offices spread out over three states and brought in nearly $72.9 million in revenue during its most recent fiscal year, making it the 75th largest firm in the U.S. Financial terms of the deal were not disclosed. Read More - Big Four plan to infuse AI into everything they do.
While generative AI is still a relatively novel technology, the Big Four see vast potential to transform their service offerings and create a few new ones along the way, and so are working hard to build it into as many of their existing services as possible. It would seem there are few areas that technology leaders think can't benefit from generative AI, and so are looking for it to enhance their current capabilities. Read More - Crowe Introduces 44 New Partners and Principals
Chicago-based top 20 accounting firm Crowe recently admitted 44 new partners and principals. “This group of exceptional leaders lives our purpose and values every day, and delivers on our promises to our clients, our people, and our communities,” Crowe CEO Mark Baer said in a press release. “We look forward to the many ways they will help bring our strategy to life to drive and shape our future, and continue to be stewards of our strong, inclusive culture.” Read More - U.K. arm of EY preparing to cut jobs
Ernst & Young LLP is planning to cut jobs in the U.K. as a challenging market environment crimps appetite for professional services. EY's U.K. financial services consulting practice "has taken measures to align current resourcing requirements with market demand," the company said in an emailed statement. "Regrettably, a group of employees in this part of the business are now subject to a redundancy consultation process." Read More - Smith + Howard acquires Market Street Partners
Atlanta-based firm Regional Leader firm Smith + Howard is merging in Chattanooga, Tennessee-based Market Street Partners, effective Aug. 15. Smith + Howard, which received an undisclosed amount of funding from private equity firm Broad Sky Partners last November, operates under an alternative practice structure in which licensed CPA firm Smith + Howard PC provides audit and other attest services to its clients, and Smith + Howard Advisory LLC provides tax, accounting and advisory services. Read More - PCAOB permanently bars CPA firm
The Public Company Accounting Oversight Board has permanently revoked the registration of AJ Robbins CPA LLC, and permanently barred its owner, Allan Jeffrie Robbins, from association with any registered firm, while also imposing $150,000 in total fines. Read More - SEC Fines Crowe U.K. $750,000 For Poor Auditing of Music Streaming Service
The U.K. arm of accounting firm Crowe LLP, its CEO, and a senior auditor settled charges with the Securities and Exchange Commission on Aug. 14 over various mistakes the firm made during its 2018 audit of music streaming company Akazoo. Without admitting or denying the SEC’s findings, Crowe U.K. agreed to be censured and will pay a $750,000 fine, CEO Nigel Bostock, who was the engagement partner on the Akazoo audit, will pay a $25,000 penalty, and Matthew Stallabrass, who was the Akazoo audit’s engagement quality reviewer, will fork over $10,000. Read More - AICPA asks IRS for better trust forms, guidance on tax credits
The American Institute of CPAs sent comment letters to the Internal Revenue Service requesting changes in two forms used to report on foreign trusts, along with more guidance on energy tax credits and advanced manufacturing investment credits. Read More - Midlands mid-market private equity deal activity drops by nearly a quarter in the first half of 2023
Mid-market private equity investment in the Midlands cooled in the first half of the year amid market volatility and tough trading conditions, new analysis from KPMG UK has revealed. The firm’s latest Mid-Market Private Equity study shows that 28 deals were completed in H1 2023, reflecting a drop in volume of 24.3 per cent when compared with the same period in 2022. Read More - Crowe Strengthens Private Equity, Venture Capital and Hedge Funds Services
Crowe LLP, a public accounting, consulting and technology firm in the U.S. with offices around the world, has expanded its tax service capabilities serving clients in the private equity, venture capital (VC) and hedge fund space with the recent addition of two new partners to the firm, Gev Khan, CPA, MBA, and Eric Evans, CPA. These new hires build on the firm’s recently announced expansion of private equity service offerings in Los Angeles and Boston. Read More
About The Author
Valay Parikh
Co- Founder & COO
With more than a decade of experience, Valay serves as the Vice-President of Entigrity Remote Staffing. Valay leads the India-centric Operations for the company, guiding its strength to unprecedented scales, with his guidance and leadership. Valay is a qualified Chartered Accountant himself. Beginning with public practice, he has served as a consultant and adviser to many small and mid-size businesses. Later on, he went on and co-founded Entigrity with Shawn. Valay has been phenomenal in building India Operations, with his core focus being on identifying and developing Indian talent pool for the company. Utilizing his experience, he developed and built robust HR policies and framework, developed strong training methodologies, and help clients with Financial Reporting, Business Analytics and Business Intelligence, thus creating strong and efficient processes for the clients.
