Incorporating NQ magazine
September 2024
EX ACC AM A INS TI IDE PS
www.pqmagazine.com/www.pqjobs.co.uk w.pqjjobs
THE AI TRAILBLAZERS Accountants and bookkeepers have emerged as the new AI trailblazers, adopting the technology at a much faster rate than any other sector. New research from Sage and ACCA, along with cross-party thinktank Demos, reveals artificial intelligence adoption among accountants is set to double in the next five years. And it has been estimated that the widespread adoption of AI by UK accountancy practices will add £2 billion to the UK’s GDP and create nearly 20,000 jobs. The researchers also believe these AI-enabled practices will hire 10 times more employees and triple their revenue growth, compared with non-users. The report found that accountants are technology optimists, with 61% of those surveyed believing AI creates more opportunities than risks. Some twothirds of respondents (68%) also felt confident that they will be able to
adapt to AI. Sage’s Aaron Harris felt AI is no longer a futuristic concept. He said: “From chatbots that enhance client communication to automation of routine tasks like processing invoices and generating data insights to improve cash flow, AI is set to become a driving force of growth within the industry.” Harris pointed out that AI’s benefits go beyond productivity and can reduce workloads, improve well-
being and increase job satisfaction. Ultimately, Harris felt the move to AI will attract new talent to the profession and help address current skills shortages. To help achieve the potential of AI, all three organisations are now calling on the UK government to implement four key policy initiatives: • Invest in boosting AI skills across the industry through a larger, long-term AI Skills Fund and reformed Apprenticeship Levy.
Extend the AI Skills Fund to last five years to support a transition to effective implementation of AI. • Extend full expensing of capital investment to digital technology. This would allow businesses investing in digital tech, like AI tools, to reduce their tax bill by 25p for every £1 invested. • Introduce e-invoicing to support Making Tax Digital. The government should collaborate with the private sector to enhance productivity, reduce late payments, and boost international trade through e-invoicing, which also provides real-time data for better AI solutions. • Establish a supportive regulatory framework. The government, regulators, professional bodies, software developers, and accountants should collaborate to create strong standards and ethical principles for AI use.
ISLAMIC FINANCE CAN SAVE WORLD Unleashing the potential of Islamic finance will help us achieve the increasingly challenging United Nation’s Sustainable Development Goals (SDGs), says a new report from the International Federation of Accountants, Malaysian Institute of Accountants (MAI) and the World Bank. The worldwide economic downturn, resulting from the Covid19 pandemic, has worsened the already significant $4.2 trillion funding gap to achieve the 17 SDGs. As countries strive to finance the ambitious scope and scale
of the SDGs they also face the complex task of serving financially underserved communities. The report states that a major tenet of Islamic finance is to protect people, planet and prosperity, and this underpinning can contribute to fresh thinking on sustainable development paradigms, interpretations and approaches. The SDGs also create opportunities for Islamic finance growth, just as Islamic finance can drive greater sustainable development. Advancing Islamic finance has the potential to not only
to serve usually under-banked Muslim communities, but have a broader application considering its synergies with the SDGs. The IFA emphasised that Malaysia has become a pioneer of Islamic finance, attributed in part to its strong governance, supportive regulatory ecosystem, and the pivotal role of a local professional accountancy organisation, MIA, in education and stakeholder outreach. “Though every jurisdiction’s use of Islamic finance would work differently, Malaysia and MIA can serve as examples to
learn from,” says the report. IFAC President Asmâa Resmouki stressed: “Professional accountancy organisations are playing a key role in advancing sustainable financing, and given the profession’s commitment to support the SDGs, principles of Islamic finance should be considered a viable approach. “We encourage all IFAC members to look towards best practices such as those cultivated in Malaysia, and seize opportunities presented in their own jurisdictions.”
WIN AN AAT SCHOLARSHIP
PQ magazine and e-Careers are offering a scholarship every month for the next six months to a lucky AAT student trying to get qualified! Check out more on page 16