The magazine of International Association of Bookkeepers

BOOKKEEPERTHE

January / February / March 2019

WINNERS CELEBRATED

AT IAB AWARDS. HELD WITHIN

THE HOUSE OF COMMONS.

Online security for bookkeepers – safe email handling

Bookkeepers urged to Flag It Up and tackle the threat from dirty money

GDPR is here to stay

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International Association of BookkeepersSuite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU

Phone: +44 (0)1732 897750Email: membership@iab.org.ukWebsite: www.iab.org.uk

Twitter: @IABinfoFacebook: IABBookkeepers

Contents

3 Janet’s welcome A message from the chief executive and a reminder

about the opportunity to join the IAB Council.

4 Winners celebrated at the IAB awards

View the winners and photos from the IAB awards which took place at the House of Commons on Thursday 6th December 2018.

6 News items A selection of news items including an update on

Making Tax Digital for VAT and new guidance on registering for the VAT MOSS scheme.

9 Pensions scam awareness campaign

Update on a campaign being run by the Financial Conduct Authority and The Pensions Regulator as well as 4 simple steps to protect yourself from pensions scams.

10 Have you renewed your professional membership yet?

A reminder about renewing your professional membership for 2019 and information about technical support you have access to.

11 Online security for bookkeepers – safe email handling

With online services comes online security concerns. Learn 3 simple tools to stay safe.

12 Bookkeepers urged to Flag It Up and tackle the threat from dirty money

An update on the Flag It Up campaign which the IAB is supporting as well as how to spot the red flags of money laundering.

13 GDPR is here to stay An overview of GDPR and some questions to ask yourself

to ensure you are complying with the regulations.

14 Thought provoking An article by Alan McCafferty from Simply Cashflow with

some questions to ask yourself to ensure your business is a success in 2019.

15 Word from Sarah: Are you ready for 2019?

In her regular feature, Sarah Palmer tackles the issues that matter.

16 Accountex Reasons to attend Accountex which is taking place at

the ExCeL, London on 1 – 2 May and how to register for tickets.

16 IAB Facebook group for members Join the Facebook group to gain further support for

your career.

2 | The Bookkeeper

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Let me start by saying what a great way to end 2018 with our Awards at the House of Commons. There was such

a high calibre of entrants again this year. Each year gets more difficult to judge. A very hearty congratulations to all of you and to our International Centres in India, Malaysia and China who attended.

If you’re a Member in Practice, are you behind the Flag It Up campaign? The campaign aims to highlight the importance of spotting the signs of money laundering and reporting any suspicions you have. You need to register with the National Crime Agency (NCA) to make a Suspicious Activity Report (SAR) so if you’re not registered make sure you do so now.

decided to apply for Council he said: “I always wanted to be part of a committee or some other form of a board where I could be part of the decision making and the discussion of the relevant issues of the organisation, and I felt that IAB could be one of those organisations I could contribute to as a Council member.

“It is an opportunity to be challenged and to be part of a group with different points of view where there are other opinions and other voices and where you make your voice heard by presenting your case and the critical points to the group. I saw it as an opportunity to learn from others, to share with others and to connect and network with others.”

He added: “Anyone interested in applying should not be afraid as the group is open and welcoming. You will not feel isolated or be seen as a stranger. It is a good experience for anyone

The IAB is still accepting applications and enquiries from members who are interested in joining the IAB Council.

The IAB is a Company Limited by Guarantee and the Council is our Board of Directors. They are involved in key decisions about the future of the IAB and how we work to provide the best support to bookkeepers and continue to raise awareness and raise the standards of the bookkeeping profession. Elections take place at the AGM in June each year.

Under the application process, members will be invited to attend a meeting with the Appointments Committee, where they will be able to quiz current members of Council and the IAB Executive about what it is like to be a Council member and what the role entails.

Juan Carlos Venegas MIAB FIAAP joined Council in June 2017. Speaking about why he

We have a new service provider called Simply Cashflow, which is something that will save you time and enhance the service you give your clients.

Wishing you all a happy and prosperous New Year!

Janet JackChief Executive

who may be interested in getting involved in challenging the decision makers of the organisation and be challenged on sharing their views and making their points.”

If you are interested in applying or would like further information about being a Council member contact Kelly Orford on kellyo@iab.org.uk or call 01732 897754.

The IAB is committed to equal opportunities and diversity and welcomes all applications.

Welcome

Could you be an IAB Council Member?

The Bookkeeper | 3

A global audience attended the annual awards ceremony at the House of Commons on December

6, 2018, hosted by IAB president Fabian Hamilton MP.

Speaking in the Terrace Room overlooking the Thames, he praised the work of the IAB, its professional members, students and centres around the world.

The awards inspire and recognise excellence in IAB members, accredited centres, students and other professionals. The event also celebrates and champions the critically important contributions that bookkeepers, payroll professionals, accountants and enterprise mentors make to the success of millions of micro and small businesses.

Above: Colin Faires FIAB (right) was named Bookkeeper of the Year, a category sponsored by Lloyds Bank.

Laura Whyte FIAB (right)

Helen Abari MIAB (right)Michelle Hammerton

Aisling Murray (right)

Di Garbera MIAB (right)

Winners celebrated at IAB awards

4 | The Bookkeeper

The other award-winners were:• IAB Small Business Mentor of the Year:

Laura Whyte FIAB (sponsored by SFEDI Group).

• IAB Payroll Professional of the Year: Aisling Murray (sponsored by CIPP).

• IAB Accountant of the Year: Samantha Nicholson MIAAP (sponsored by F A Simms and AMLCC).

• IAB Student of the Year: Michelle Hammerton

• Tutor of the Year: This year there were joint winners: Helen Abari MIAB from Zatkhon Accountancy Training and Di Garbera MIAB from Golding Computer Services Ltd.

Runners up:• Bookkeeper of the Year:

Emma Fox MIAB AIAAP• Small Business Mentor of the Year:

Liz Pepler MIAB• Payroll Professional of the Year:

Nicole Hagan-Kidd• Accountant of the Year: Sam Farren• Student of the Year: Katarina Soltysova

A list of our winning accredited centres can be found below:

IAAP Silver Centre Award:Jasa Accountancy Centre Sdn Bhd – Malaysia

Top Centre for the Indian Ocean:G-TEC EDUCATION – India

UK Silver Centre Awards:• One Study Training• University College Isle of Man• Wolverhampton Adult Education Service

UK Gold Centre Awards:• Highlands College• Mary Ward Centre• Skills & Learning Bournemouth,

Dorset & Poole

Congratulations to all the winners and finalists and thank you to everyone who attended!

The Bookkeeper | 5

Just 30% of organisations meeting GDPR obligations

Small businesses owed average £25K in late payments

Seven months on from the General Data Protection Regulation (GDPR) coming into

effect, more than two-thirds of organisations are responding to customer data requests late, according to new global research by Deloitte.

The survey of 1,100 organisations found that customer data requests, such as opting out of direct marketing and the right to erasure, are typically dealt with beyond the set timeframe of one month.

Peter Gooch, cyber risk partner at Deloitte, said: “What is clear is that some organisations are still grappling with the implementation of their GDPR compliance. Given the complexities of such programmes and increased consumer awareness of such requests, we would expect some bedding-in time. However, our research found that a fifth of organisations only aimed for bare minimum compliance back in May, which may be indicative of the delays some customers are currently experiencing.

“That said, 33% of organisations surveyed continue to invest in their privacy practices, including in technology and talent. Since May, 70% of organisations surveyed have seen an increase in staff who are either partly or fully focussed on GDPR compliance. For many, this included the recruitment of a dedicated Data Protection Officer (DPO). Of the countries surveyed, the UK leads in this respect, with 92% of respondents assigning a DPO.

“Overall, organisations are taking the right steps in continuing their GDPR implementation and the majority (92%) felt confident in demonstrating their ability to conform in the long-term. In the immediate term, though, many will need to address today’s pressure to respond to data requests. This is particularly the case as online tools, enabling consumers to make mass data requests, increase in popularity. Those that are currently responding with some delay will need to take a more customer-centric approach, not only to meet the existing volume, but also the influx of requests these tools could create.”

The average British small business is owed £24,841 in late payments on any given day,

while 78% are owed money at any time outside of agreed payment terms, according to research by accounting software provider Xero.

Research based on data taken from two million invoices issued by its UK small business subscriber base showed that in August the average 30-day invoice was paid after 39.67 days, almost 10 days after payment is due.

Furthermore, when reviewing overdue 30-day invoice payments the average late invoice was found to be paid 64 days after issue, more than double the payment term.

Edward Berks, EMEA director, platform business at Xero, said: “At a time when the world needs small business to succeed it’s estimated that 50,000 businesses in the UK fail each year because of cash flow issues.

“Our data shows the impact that this level of debt can have on small companies. Predicting

working capital requirements still remains a challenge for small businesses and accessing finance remains expensive and time consuming. But, it is increasingly critical that the government and industry takes the right steps to ensure that small businesses get paid faster.”

He added: “New measures to crack down on big business culprits and smarter technology to automate payments will all help to alleviate the pressure on small business cash flow.”

The industry with the highest percentage of invoices paid late was found to be transport, postal and warehousing, with 68% of invoices overdue over the last year, followed by electricity, gas, water and waste services (62%) and manufacturing (60%).

The small business sector posting the largest level of late payment was wholesale and trade, with an average of £42,989 owing, with financial and insurance services ranked at number six in a top table, with an average of £29,732 outstanding.

6 | The Bookkeeper

NEWS ITEMS

Fewer than half of SMEs say banks understand their needs

Giving SMEs access to the financial tools, products and advice they need would

increase their productivity by 10% and boost the UK economy by £70bn, according to a survey for high street bank TSB.

As the planned 1 April 2019 implementation date for Making Tax Digital for VAT

(MTDfV) gets closer, HMRC has confirmed that Mandatory use of MTDfV by businesses with ‘more complex requirements’ will be deferred until 1 October 2019 to ensure there is sufficient time to test software for such businesses.

Those who will not be obliged to use MTD until October 2019 are:• Trusts• ‘Not for profit’ organisations that are not set

up as a company• VAT divisions• VAT groups• Public sector entities required to provide

additional information on their VAT return, including Government departments and NHS Trusts

• Local authorities• Public corporations

The study, based on a survey of 550 SMEs carried out by Oxford Economics and YouGov, revealed widespread dissatisfaction with current business banking options. Just under half (49%) of respondents believe that their

• Traders based overseas• Those required to make payments on

account• Annual accounting scheme users. HMRC has opened its software pilot to businesses with more straightforward VAT affairs (you can sign up via the HMRC website). The pilot will not be opened for certain businesses until:• Early 2019 (partnerships and businesses

that trade with the EU).• Spring 2019 (businesses not required to use

MTD until October 2019).

Once a business has signed up to take part in the pilot, it must continue to use MTD to submit its VAT returns. Careful consideration should therefore be given before signing up, as a business which experienced problems would not be able to revert to the previous system for the past few months.

bank understands their needs, with 42% stating that lacklustre bank services are actually holding their firm back.

This, in turn, is leading to very low adoption of technologies and digital services that could actually help small enterprises grow. According to the TSB report, just 62% of SMEs currently use accounting software and 53% use tax software.

To help SMEs access the guidance they need, TSB has suggested that banks improve their small business offerings while providing local advice services. The report also insists that banks must be more transparent about fees and charges that could impact smaller enterprises, while supporting them in making smart borrowing decisions.

“The report shows that a new relationship between banks and businesses is not only possible but profitable,” said Martin Whitfield MP, vice-chair of the All-Party Parliamentary Group on Fair Business Banking, adding: “A relationship which focuses on giving SMEs the local support and guidance they need to grow and which offers them the financial services they require to exploit the digital age.”

HMRC has also confirmed that:• Businesses below the £85,000 UK turnover

MTD threshold can continue to use the existing portal.

• Businesses whose mandatory use has been deferred to October 2019, can continue to file their returns via the existing VAT online portal from 1 April 2019 to 30 September 2019.

• There will be no universal ‘light touch period’ for the first year of MTD, but it will be lenient with taxpayers who have done their best to comply. Penalties will be issued to those who have deliberately not complied. Surcharges will apply in 2019/2020.

Further information for agents about signing up for the pilot can be found here: www.gov.uk/guidance/agents-use-software-to-submit-vat-returns.

Further information for businesses about the pilot can be found here: www.gov.uk/guidance/use-software-to-submit-your-vat-returns.

HMRC NEWS

Making Tax Digital for VAT update

The Bookkeeper | 7

HMRC is struggling to control tax credit fraud and the “cracks are showing”, MPs

have said. Error and fraud in tax credits cost the taxpayer £1.3bn in 2016-17 alone, and the department expects the rate of overpayments to grow further, the Public Accounts Committee (PAC) found.

The committee said it was “disappointing” that HMRC says it will be unable to meet its target of keeping error and fraud below 5% of tax credit payments. HMRC expects the fraud and error rate to rise to 5.5% in 2017-18 and to 6% in 2018-19.

Tax is also subject to too many reliefs and HMRC has only a limited understanding of whether they represent value for money, according to the PAC.

Meg Hillier, chair of the PAC, said: “HMRC is under pressure and in some areas the cracks are showing. The authority expects fraud and

HMRC have updated guidance on registering for the VAT Mini One Stop Shop (VAT MOSS)

scheme, with new information about invoicing, leaving the scheme and which return to use.

The advice, called ‘Register for the VAT Mini One Stop Shop scheme’, explains how to register and use the VAT Mini One Stop Shop to report and pay VAT due on sales of digital services to consumers in the EU. VAT MOSS is a way of paying VAT on supplies

HMRC are trialling new podcasts to help you and your clients with tax obligations and

financial affairs.The podcasts will give you access to

interviews and chats with key policy officials and teams offering you information, tips and support. An initial set of three podcasts have been produced covering the following topics:• Making Tax Digital• Payroll Submissions• Tax relief for landlords: Replacement of

Domestic Items.

You can listen to the podcasts now, by visiting: audioboom.com/channel/hmrcpressoffice.

HMRC welcome your feedback on their podcasts. If you have any feedback please send it to: team.agentengagement@hmrc.gsi.gov.uk.

errors in tax credits to exceed its target in successive years, driven in part by policy changes that have effectively removed HMRC’s incentive to bring fraud and errors under control.

“It lacks understanding of the costs of a vast swathe of tax reliefs, which means it cannot take an informed view on their value for money.”

The PAC recommended that HMRC takes more responsibility for ensuring tax reliefs provide value for money and should set out an approach to improving its understanding of the cost of certain tax reliefs it does not understand.

HMRC faces a “daunting task” as it prepares for Brexit, the report noted, flagging concerns about the “risks to customs and border post Brexit and the impact on British business”.

of certain digital services if either:• a UK business makes supplies to

consumers in other EU member states.• a business is based outside the EU and

makes supplies to EU consumers.For UK businesses making cross-border

supplies where the place of supply is another EU member state, there is no registration threshold and VAT is charged at the rate due in the consumer’s country. Where a business

based outside the EU makes supplies of digital services to consumers in the EU, the place of supply will be where the consumer is located. Special rules apply to digital services – see www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers.

To view the updated guidance please visit: www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop.

HMRC NEWS

HMRC unable to hit tax credit fraud target

New guidance on registering for the VAT MOSS scheme

New HMRC podcasts to help you

8 | The Bookkeeper

The number of people seeking information about pension scams has soared since the launch of the first joint campaign by

the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) in the summer of 2018.

In the 55 days before the launch around 31,000 people visited the ScamSmart website at an average of 562 per day. In the 55 days after the launch this rose five-fold (462%) to more than 173,000 people - an average of 3,145 per day and the equivalent of one every 27 seconds. Additionally, over 370 pensions holders were warned about an unauthorised firm after using the Warning List, an online tool that helps consumers check a list of firms operating without authorisation.

The two regulators are urging all pension holders to be on their guard against pension scams as new research suggests that half (52%) of 45-65 year olds with a pension do not think they are likely be targeted by a pension scam. The most common reasons given were that they are too savvy to be scammed (21%) or that they didn’t have enough money saved in their pension (18%).

Victims of pension scams in 2017 lost an average of £91,000 each to fraudsters. They reported receiving cold-calls, offers of free pension reviews and promises that they would get high rates of return - all of which are key warning signs of scams.

Guy Opperman, Minister for Pensions and Financial Inclusion, said: “Pension scams are

devastating for people and can rob them of the retirement they planned. Raising awareness of how these heartless criminals operate is key to tackling fraud, and the response to this campaign is encouraging.

“I would urge savers to always exercise caution and seek independent guidance or advice before making important financial decisions - free, impartial guidance is available from Pension Wise or The Pensions Advisory Service.”

Research from the FCA estimates over 10 million UK adults received an unsolicited pension offer in just one year. The Treasury has laid regulations that will ban pension cold calling early in 2019.

The FCA and TPR are urging the public to be ScamSmart with their pension and always check who they’re dealing with. The regulators recommend four simple steps to protect yourself from pension scams:1. Reject unexpected pension offers whether

made online, on social media or over the phone.2. Check who you’re dealing with before

changing your pension arrangements - check the FCA Register: register.fca.org.uk or call the FCA contact centre on 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA.

3. Don’t be rushed or pressured into making any decision about your pension.

4. Consider getting impartial information and advice.

If you think you’ve been a victim of a pension scam, report it. Visit fca.org.uk/scamsmart to find out more.

Mark Steward, the FCA’s Executive Director of Enforcement and Market Oversight, said: “Our research shows that many pension holders believe they are too savvy to be scammed. But pension scams are often very sophisticated and difficult to spot. Scammers will target people from all walks of life and with any size pension.

“The best way to protect yourself is to always check the FCA Register to make sure that anyone offering you pension advice or any other financial service is authorised by the FCA.”

The FCA and TPR are part of Project Bloom, a multi-agency taskforce which is working to combat pension scams. The taskforce includes the Department for Work and Pensions, HM Treasury, the Serious Fraud Office, City of London Police, the National Fraud Intelligence Bureau, The Pensions Advisory Service and the National Crime Agency.

Scam awareness campaign prompts tens of thousands of pension holders to seek information

The Bookkeeper | 9

Thank you to everyone who has renewed their professional membership for 2019 so far. Your continued membership and support is highly valued. Membership notices were sent out in

October so if you require this to be resent please contact our membership team as soon as possible: membership@iab.org.uk or +44 (0)1732 897750.

If you haven’t yet renewed, this was due by 1st January so is now overdue. It is important you renew as soon as possible to ensure you have continued access to the benefits and support of professional membership.

If you have set up a direct debit via Go Cardless then the amount due would have been processed on or around 2nd January. Please note as the direct debits have already been processed, this payment method is no longer available to renew for 2019.

If you still need to make payment then you can do so via one of the following methods:• Online, by logging into the Members’ Area of the website

(www.iab.org.uk/login). If you don’t live in the UK you are able to make payment via the following link: iab.studypay.co.uk

• Providing payment details over the phone• Completing the renewal form enclosed with the letter• By cheque – Please note if you pay by cheque there will be an

additional charge of £5 due to the extra administration costs incurred in processing the payment via this method. Please add £5 to the total amount due when sending in the cheque.

Please note regardless of which method you use to make payment you are also required to complete the renewal statements which can be completed using the document sent with the renewal notice or online here: www.iab.org.uk/renewal-statements.

Once you renew we will send a receipt to you in the post along with an IAB notebook, which is replacing the diaries previously sent, and your new membership card. This year the cards we send are Eco cards, meaning they are able to break down harmlessly when disposed of, reducing the impact on the environment.

We work hard to ensure you have services and support available as part of your membership package that will help you in your business or in your career. In 2018 we added a number of new services that will support your ongoing success including a new offer with Yell.com, and Funder Finder, a finance engine that will benefit both you and your clients and we look forward to working on further benefits and support for you in 2019.

To bring yourself up to date on all of the support and services of your IAB membership login to the IAB Members’ Area here www.iab.org.uk/login.

There is a free helpline available to professional members who have VAT and tax related queries. If you need assistance with technical questions relating to other areas then we have a panel of

experienced members who we can pass on your queries to. If you would like to find out more about this service contact the membership team who will be happy to provide further details. Email membership@iab.org.uk or 01732 897750.

In addition to the helpline and technical support, there is also a website where members wishing to receive support can go to gain answers to any questions they might have.

The website has been set up by IAB member Frauke Golding FIAB. Frauke has been running her own practice for over 30 years so has plenty of bookkeeping experience. The idea for the website arose after she had been asked, on numerous occasions, whether she would mentor bookkeepers. However, she was too busy running her own businesses to give the time needed.

Anyone wishing to take advantage of this support can register to use the site and ask Frauke questions, which she will either answer herself or point you in the right direction. As well as being able to post your own questions you can also view questions asked by other users, to enable you to benefit from the support given to them.

Frauke also includes information on many of the resources she has found useful for bookkeepers and accountants and provides tips and advice in one place, which you also may find useful, making it different to the existing technical support available to you.

To find out more take a look at: www.yourlocalbook-keeper.co.uk. Further information about how to register to access the site and the cost to join can be found here: www.yourlocalbook-keeper.co.uk/create-a-login. Please note you will need to register to view the answers to any technical questions you ask.

There is no public access to the site, so no login means no access. This also helps it to stand out from other available support services.

Have you renewed your professional membership yet?

Do you have a technical query you need help with?

CONTACT THE MEMBERSHIP TEAM IF YOU HAVE A TECHNICAL QUERY.

10 | The Bookkeeper

If you’re working via the internet to provide bookkeeping services for your clients (as opposed to going on-site to their offices), you’ve found a highly efficient, convenient, and more profitable way to run your bookkeeping practice. But with online services comes online security concerns.

Has this ever happened to you?• You request needed information from your

client to complete a tax filing, and he dutifully attaches documents that include sensitive personal information with the reply email.

• Your client requests you to pay a bill online and she gives you her complete credit card information in an email message.

• Your client just hired a new employee and the employee fills in the forms needed, scans the document, and sends it via an email attachment (Yes, this too contains sensitive personal information).

In each of these real-life common occurrences, without even thinking about it, sensitive information that cyber-criminals would love to get their hands on has been shared via unsecure email correspondence.

Why sharing sensitive information via email is a problemAccording to an April 2018 article on The Register, “Identity fraud in Blighty hit a record high of 174,523 incidents in 2017 – and the vast majority of it happened online.”

The cost of cybercrime for small businesses runs a whopping £120,000+ these days.

As bookkeepers, we are also subject to GDPR requirements because we handle personally identifiable information. So it behooves us to do everything we can to protect our clients and ourselves, and that includes email.

How you and your clients can use email safelyMake it easy for your clients to give you the information you need without putting them at a security risk, and you on the hook with liability risk with email.

Here’s the first line of defence: Educate, educate, educate!

Teach your clients to know what they can and cannot give you via email. Here’s a good rule-of-thumb principle to make it easy to remember from IT Services, University of Manchester:

“Sharing information by email should be treated as the electronic equivalent of a postcard. If you assume that it could be read by anyone, this will help to ensure that you take appropriate care both in the content of the email and any attachments.”

3 simple tools for safetyHere are 3 simple choices you can use right away to safely exchange sensitive information with your clients and save your online security sanity.• Provide your clients with a secure, online

client portal for sharing sensitive documents and information. This takes email out of the loop! With either in-person or online meeting with each of your clients, you can show them how to securely give you what you need.

SmartVault is my client portal of choice where all my clients’ information is stored safely, accessible to both me and them whenever needed. I’ve found very little instruction is needed for my clients to use it effectively. It’s simple for clients to use.

• Use encrypted email. This can be done easily using add-on programs with Gmail and Outlook. If you don’t want to use those provided by Microsoft or Google (on their paid platforms), other tools that make this easy and safe for both you and your clients are Virtru, which is an email extension, or the free standalone service by ProtonMail.

• Use an old-fashioned fax. This is an option if all else is beyond the reach of your clients’ tech skills. Faxes encode documents into pictures and transmits them over telephone lines. So if this is something your clients are already using, it might be an easy choice, at least until you can help them get up-to-speed on more modern technology. It’s still better than unprotected email.

The best defence against cybercrime and providing professional level, secure services to our clients is to start with email. Proactively step up and implement safety procedures and policies now for the handling of sensitive information. Then teach your clients how to follow these policies and procedures, including email safety, and everybody wins (except the cybercriminals).

With online services comes online security concerns. Learn 3 simple tools for online safety.

Useful links: SmartVault, is an online document storage and secure file sharing system which can be used by bookkeepers for clients. They recently ran a webinar for IAB members on Cybersecurity in the GDPR Era. In case you missed the webinar you can download a recording via the following link: www.smartvault.com/resource/cybersecurity-in-the-gdpr-era.

The author of this article, Gabrielle, has also put together a Cybersecurity Checklist for bookkeepers which may also be of use: www.smartvault.com/resource/cybersecurity-checklist-bookkeepers.

There is also an information sheet available to view on the Members’ Area of the IAB website entitled Safeguarding your Business against Cybercrime which has guidance on implementing technical controls, the dangers of mobile working, safeguarding removable media and much more. This can also be viewed via this link: www.iab.org.uk/pub/IAB_Cyber_Security.pdf.

Online security for bookkeepers – safe email handling

The Bookkeeper | 11

By Gabrielle Fontaine PB, ABSC. The Freelance Bookkeeper

The IAB is proudly supporting Flag It Up, the Government’s anti-money laundering campaign, and is encouraging you,

our members, to do the same. The new look campaign was re-launched in October to urge professionals working in the accountancy sector to remain alert to the red flags of money laundering, and report any suspicious activity via a Suspicious Activity Report (SAR) to the National Crime Agency (NCA).

Money laundering is a dirty businessThe NCA states that the volume of dirty money laundered annually through the UK could be in the hundreds of billions of pounds. The impact of this is devastating. Money laundering is not only a crime in itself, but it also enables the proceeds of crimes such as corruption, fraud, modern slavery, or drugs trafficking to be enjoyed or reinvested, and contributes to ongoing criminality. These criminals are targeting our sector with increasing sophistication, and the risk of your skills being exploited is a very

real threat. For professional accountants, even unintentionally facilitating money laundering is a risk which carries severe penalties, including fines and prosecution.

As bookkeepers, you are in an unrivalled position to identify any suspicious activity within client accounts, and have a professional duty and legal obligation to report anything which constitutes suspicious activity. A high quality SAR can provide crucial intelligence for law enforcement, and by flagging your suspicions, you are playing a key role in tackling dirty money, and helping to build a safer society and stronger economy.

Know the signs, report the crime:As well as utilising a risk-based due diligence approach for both new and existing clients, harnessing your professional intuition is crucial to spotting the red flags:• Transactions: Are transactions unusual

because of their size, frequency or the manner of their execution, in relation to the client’s known business type?

• Structures: Do activities involve complex or illogical business structures that make it unclear who is conducting a transaction or purchase?

• Assets: Does it appear that a client’s assets are inconsistent with their known legitimate income?

• Resources: Are a client’s funds made up of a disproportionate amount of private funding, bearer’s cheques or cash, in relation to their socioeconomic profile?

• Documents: Are information or documents being withheld by the client or their representative, or do they appear to be falsified?

• Identity: Has a client taken steps to hide their identity, or is the beneficial owner difficult to identify?

• Behaviour: Is the client unusually anxious to complete a transaction or are they unable to justify why they need completion to be undertaken quickly?

• Geographical Area: Is collateral provided, such as property, located in a high-risk country, or are the client or parties to the transaction native to or resident in a high-risk country?

You can download and share campaign materials from FlagItUp.campaign.gov.uk. These can be utilised for internal training purposes, or to demonstrate your support for tackling money laundering on social media.

Bookkeepers urged to Flag It Up and tackle the threat from dirty money

12 | The Bookkeeper

“Don’t panic!” The Information Commissioner’s Office (ICO) shines favourably upon those that are clearly trying to become compliant. But the leniency won’t last for ever and ALL businesses need to be set up to comply and we can help you with that.

‘‘Most people/businesses are typified as follows:a) You think you are not affected by itb) You are terrified of it and are going to tidy up

your datac) You know you need to do something but it

can waitd) You think you have to contact your entire

database to gain consent to process their data – you don’t

e) You think it will all go away because we are leaving the EU and EEA.…or…

f) All of the above

Business owners are asking “what do I need to do”? “where do I start”? “Don’t panic!” The Information Commissioner’s Office (ICO) shines favourably upon those that are clearly trying to become compliant. But the leniency won’t last for ever and ALL businesses need to be set up to comply and we can help you with that.

It does not have to be complicated or daunting and most businesses require a few simple steps and much of it is in how you write your Privacy Policy, the key construct for outlining your basis and process of using and processing Data.

The GDPR principlesGDPR has Recitals and Articles that you do not need to know about now. What you need to know is:• The Key Audit Questions• The 7 GDPR Principles• The Rights of Consumers (‘Data Subjects’)• What to do if you are requested to provide

the data you hold regarding a particular Data Subject

The rights of Individuals or Data Subjects come under the following areas:1. Access2. Rectification3. Erasure4. Restriction5. Objection6. Data portability7. The right to withdraw consent at any time8. The right to lodge a complaint with a

supervisory authority9. Be informed of the existence of automated

decision-making, including profiling, as well as the anticipated consequences

Articles 12 and 15 and Recitals 63 and 64 of the GDPR deal with how to handle a Data Subject Access Request (DSAR), which can come in any form even orally and you have one month to respond and you generally cannot charge for providing the information. This is the most likely way that you will get your first contact with GDPR – so be prepared.

Your entire organisation should be made aware of the GDPR and individuals need to take responsibility too. If you would like to know more then please contact us, it can all be done in small simple steps.

Contact enquires@think-strategy.co.uk or call Tim Cobley 07527 984387 or David Terry 07958 361494.

How closely you are aligned to these 4 areas will determine what you need to do to gain and maintain compliance.

The key audit questionsGDPR applies to ALL businesses. Answer the following key questions:1. What information do you hold, where do

you hold it and what is the legal basis for processing?

2. Is your storage of data secure?3. Do you have well defined retention periods for

the data you hold?4. Do you have all the necessary polices &

procedures documented?5. If you were to receive a Data Subject Access

Request (DSAR), would you be able to deal with it in the time frame outlined by the ICO?

6. Do you have a breach register?7. Do you know the different levels of data

breach and how you have to report on each one?

8. If I was an ICO inspector and asked you to show me and provide evidence that you are working towards compliance, would you be able to do that?

The 7 GDPR principles affecting data processing are as follows: 1. Processed lawfully, fairly and in a transparent

manner2. Collected for specified, explicit and legitimate

purposes3. Adequate, relevant and limited to what is

necessary4. Accurate and, where necessary, kept up to date5. Retained only for as long as necessary6. Processed in an appropriate manner to

maintain security7. The Organisation is accountable and must

maintain documentation for every stage

GDPR is here to stay

IS HERE TO STAY

‘‘

The Bookkeeper | 13

This article has been provided by Tim Cobley at Think Strategy Ltd

After 25 years in business crossing a range of sectors from engineering to food manufacturing, contract builders, business consultancy, retail and many more led me into Non Executive

Director/advisory roles and business transformation projects. Across these very ‘different’ sectors it’s amazing how similar they are when it comes down to people management and business management. Regardless of what the business does these two remain pretty much constant. For business management: clear, reliable and timely financials are key and within that Cashflow Forecasting is one of the most important, be that for survivability or for others a controlled sustainable growth.

Don’t underestimate the value that you bring to the business/es you work with. Many a great business has gone under because of issues with the financial management.

So for 2019 and beyond, whether it’s Brexit, in or out (or something else!), a downturn, too much rain or even too sunny; whatever life throws at you, the key is to keep switched on and proactively manage your business. Change is the new norm!

Here is a checklist to challenge yourself – how many can you tick off right now – be honest!

And for added value - are you helping your clients manage theirs?

Hope that helps, Alan McCafferty, Chief Protagonist, Simply Cashflow

Thought provoking

14 | The Bookkeeper

This article has been provided by Alan McCafferty from Simply Cashflow.

No. Action Actioned

1

Are you making the best use of technology?This is not something we can shy away from anymore and MUST be fully embraced. Take your pick: love it, hate it or otherwise – but do it all the same.Make it a way of life and a core management topic.

2Have you taken time out of your business (mentally and physically!) and worked on your Business Plan? It’s simple: where do you want to be in 1-3-5 years and how are you going to get there? If not, then do it, you’ll be amazed what comes out of it and how energised you and your team will become.

3 Cashflow: Are your cash management processes and forecasting as good as they should/can be?

4

I’m not a huge fan of meetings for the sake of them but I do like the monthly management meeting, attended by the key people in your business, where you review the previous month’s performance, discuss the coming month/s, strategic planning, ongoing/new actions etc... It gives you a regular checkpoint to track your performance, ensuring you take corrective action early, planning ahead driving your business in the right direction.

5 Are you really focusing on what matters most and stopped doing what doesn’t?Challenge yourself.

6 Are you really looking after your existing customers? Are they happy – have you asked them? Are you totally customer orientated/focused?

7 Have you clearly identified your key business performance indicators and are you closely monitoring them?

8Have you stress tested your forecasts (e.g. sales 10-20-30% down) and planned for what action would be necessary depending on what that told you? Or even up by 10-20-30% - that can equally cause great stress!

9 Are your clients paying in a timely fashion? Could it be better? Could your business cope if it was much worse?

10

Be honest: Are you providing the strong clear leadership your business needs now? Are you maintaining clear, positive communication with your team?And are you looking after your best people? p.s. Don’t take your own judgement on this. Go and ask your team/someone close to your team.

11 Even during these challenging times there are always opportunities, are you looking out for them?

12 Are you acting decisively? Taking too long is one of the most common reasons for getting yourself into a little bit of bother!

13 Finally, are you maintaining a positive, proactive, can-do attitude? This is a must. And don’t forget – have fun!

So 2019 is just around the corner and is laid out like a blank canvas ready for us to imprint all our wishes and wants for the next twelve months. For me the Christmas break is always a good time

to step back and take stock of our lives. Christmas seems to celebrate the achievements of the passing year while the New Year seems to give us permission to look at the big picture—our families, our relationships, our careers, dare I say—our dreams? We may ask ourselves questions like: “Am I doing what I truly love? Is my career feeding my life?” Maybe there’s just a nagging voice of discontent that needs space to be listened to? It may show up as the unanswered email that’s prods our conscience at our child’s nativity or the inability to be able to fully switch off and be present with our family. Either way it’s an important time to reflect, review and plan.

My tips for planning:1. Choose a direction: Choose an overriding theme for the year; this may be

to consolidate learning and establish processes or it may be a conscience intention to grow by a determined percentage. Whatever your intention - BE HONEST WITH YOURSELF

2. Assess your business – be honest, however painful, look at the areas that need most development and where you have the most opportunities

3. Develop your priorities – link your ideas for the future with the current state of your business and commit to a small number of projects with clearly defined outcomes

4. Create goals - With a clear direction, create quarterly goals and monthly actions. By breaking down your list of projects, you’ll gain a sense of the resources, time and personnel needed. You will then be able to identify each step needed to achieve your quarterly goals. I can’t stress how important these smaller steps are in adding up to the bigger goals

5. Accountability - bring in your team by assigning accountabilities and due dates. Detail the specifics of each goal and project by associating them with a specific member of your team and creating a calendar for the year

6. With your plan almost complete, the final step is to document assumptions and allow for change. As your knowledge about your business grows, you need to build flexibility into your plan by establishing a formal review process.

The most important element is to remember that this is a creative process; there are no rights or wrongs as every individual has a right to develop their own business or career according to their own wishes. Enjoy and remember to reach for the stars!

Love to know your thoughts,Sarah Palmer, FIAB, owner of Women Who Count

Are you ready for 2019?

Word from Sarah

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The Bookkeeper | 15

Sarah Palmer

On balance, Accountex is brilliant for bookkeepers!

Join the IAB Facebook group to gain further support for your career

Talk to a pessimist about tech evolution and you might get the impression that the bookkeeper is an endangered species

on the verge of being devoured in the artificial intelligence jungle.

But this is not an opinion that was massively in evidence at a recent conference of bookkeepers in London.

And the idea that the future is bright for bookkeepers is not just the preserve of those at the coalface of the profession either. It has been echoed by some of the leading lights from the world of cloud accounting software.

Take Sage’s executive VP, Jennifer Warawa. She recognises that the changing work environment is challenging for bookkeepers. “This is the slowest pace of change that we will see for the rest of our lives,” she says – meaning that change is only going to get faster.

But she adds: “Will technology take your job? No. But you need to evolve.”

Gary Turner, Xero’s UK chief, agrees. “Everything’s going to be OK for bookkeepers. The bookkeeping role is so important to small businesses. “Bookkeepers need to harness the technology but keep the human heart. Bookkeeping is absolutely NOT going away.

“Accounting is still hard for small firms. So, what we have now is a huge opportunity.”

And one place where you will find these top-class businesses is Accountex, 2019’s biggest event for the accounting and finance profession - at ExCeL London on 1-2 May.

Accountex portfolio event director Zoe Lacey-Cooper says: “This is where you need to be if you want to keep up to speed with what’s going on in the profession and in the marketplace. It’s a must-go for bookkeepers!

Did you know that we have a Facebook group for IAB student and professional members? The aim of the group is to provide further support to you and a platform where you can interact

with other members and get to know each other. The group can be used for discussions relevant to studying or the bookkeeping profession, and can be used to post any queries you may have. We hope this group will provide more support to you in your career or studies. To request to join the group visit: www.facebook.com/groups/IABmembersgroup.

“It will offer an unparalleled opportunity for financial professionals to gain expert insight and education in a live environment, attracting more than 7,600 accountants, bookkeepers and others from the accountancy and finance world.” Accountex is supported by the UK’s most important professional associations, including the International Association of Bookkeepers, with over 250 exhibiting companies, seminar theatres, and workshops.

You can find out more about Accountex and its content platform Accounting Insight News at www.Accountex.co.uk. Register for free tickets to Accountex using priority code IAB101.

Bookkeepers need to harness the technology but keep the human heart. Bookkeeping is absolutely NOT going away.

‘‘ ‘‘

16 | The Bookkeeper

By Ian Moss, Editor, Accounting Insight News