accountancy

Accountancy funding platform Capitalise secures £3.5m Series A investment backed by QED Investors and Hambro Perks

Accountancy funding platform Capitalise has closed a £3.5m Series A investment round led by US venture capital firm QED Investors and supported by existing investor Hambro Perks.

Capitalise, which works with 105 institutional partners, will use the funding to expand the company’s cloud product for advisers to “navigate the ever growing market of financial products for SMEs”.

Read more: German regulator bans short selling on fintech firm Wirecard

The firm has achieved a compound annual growth rate of 234 per cent and has partnered with firms including Armstrong Watson, Farnell Clarke and PFK International.

Co-founder and chief executive Paul Surtees said: “A revolution is occurring within the accounting industry, as automation from cloud technology is allowing for accountants to diversify their revenue streams and support SMEs in areas which previously would have fallen outside of their remit.”

George Davies, partner at venture firm Hambro Perks which backs UK technology firms, said: “We have long been believers in their vision of a platform that empowers accountants and SMEs, and gives them access to a broad range of finance options to best meet their needs.”

Yusuf Ozdalga, the head of QED’s London office, said: “We are very excited to partner with Capitalise in the next stage of their growth story.

Read more: Business lender Iwoca rakes in £150m financing

“We believe that the accounting and advisor community plays a crucial role in helping the small and medium sized businesses in the UK that are so crucial for a growing and dynamic economy.

“Capitalise’s unique platform helps accountants better serve and help their clients by demystifying and streamlining the funding process, and bolsters their position as trusted advisors.”

"AI could be the biggest invention since the calculator": How is artificial intelligence impacting accountancy?

What do you think of when you hear the term ‘artificial intelligence‘. Do robots spring to mind? A future full of possibilities in which you can do so much more in the same space of time? What about the way jobs and careers will be different?

We chatted to Christopher Salvidge from Turning Point Accountancy Services about how AI is making an impact on the accounting profession and why firms need to get on board with it.

The importance of AI

According to Salvidge, accounting is traditionally a process and systems-based industry where micro decisions are made every day.

He said: “Artificial intelligence allows scalable decisions to be made for repetitive high volume tasks, allowing accountants to focus on providing quality advisory services which add value to a business.

“This enables costs to be cut, quality to be improved and accountants to focus on adding value to a clients’ business.”

Clients want much more from the accounting industry than they did ten years ago. They expect their accountants to add value to their business as well as making their life simpler.

“AI can help with all of this. For example, here at Turning Point Accountancy Services we are aiming to bring in as much technology as possible to improve and enhance our services.

“AI is just a small part of this. It is therefore essential that accountancy firms start working with technology firms, such as The Robot Exchange, to advance the accounting industry and help our clients get ahead.”

How can AI change the accounting industry?

According to Salvidge, “AI could be the biggest invention since the calculator by going beyond a calculation and actually assisting with processing the data.”

He believes accountancy will change drastically with the onslaught of this technology because it has such a high volume of repetitive processes. The quality of what the industry can offer will hugely improve because human error will lessen and even go completely in some areas.

Salvidge added: “I believe we will also see more specialist uses of AI in the accounting industry as technology firms and accountants collaborate to find innovative solutions for accountancy practices clients.”

How will AI affect current accountants?

Salvidge said: “The work that accountants do will change.

“Gone are the days of pen and paper schedules – that is certain! In contrary to this, high quality accountants will become even more relevant. Whilst AI will change the way work is done, this does not necessarily mean accountants will be out of touch. The power of the relationship with a client will become even more important.”

Even more than ever before, accountants will need to focus on how they can add value to their clients rather than allowing themselves to be viewed as just a number cruncher.

“We predict that the advisory services will become more important to accountancy practices. It is also important to consider the future entrepreneurs – the younger generation expects automation and data to be available immediately.

“This is a challenge for many accountants as they are limited by the amount of staff – automation solves this by creating a scalable platform that can match demand more easily. The role of accountants can therefore help identify investments, acquisitions, driving IPO’s rather than managing receipts and invoices.

“AI is currently in its early stages in the accountancy sector however AI is going to radically change the accountancy industry as well as many others and not just for accountants in industry. The applications vary from chatbots assisting with customer facing roles, ecommerce business promoting product based on the weather and companies, stock level management in distribution companies and smart time management.

“The possibilities are endless. I think that what we will see is that this technology will also impact both small and large businesses too making it even more important to be a dynamic business no matter the size or industry. The limit to AI is down to how creative we can be with this new tool.”

How will AI change the accountant’s future?

Salvidge pointed out :”The ability of accountants to focus on using their skills to drive business benefits for clients will be the key to the use of AI in the accountancy industry. With the new applications, we expect ever increasingly complex decisions being made by AI from posting invoices to the correct account automatically to alerting accountant when a client is showing signs of cash shortage.

“By using various integrations, AI will be able to pull data from various sources and process this is into high quality management information. Client are expecting more for less therefore accountants need to be able to keep up with this demand.

“AI can help with this by providing greater insights and, combined with digitisation, allow clients to have real time, insightful view of their finances. Clients will no longer need to wait until their year-end accounts have been prepared to see how they are performing.”

Brexit could increase opportunities for Irish actors, says entertainment accountancy firm

It warned that any disruption Brexit might bring may well put the brakes on how the industry currently operates. Photo: Shutterstock

Irish actors could benefit from more work in the EU after Brexit as those with UK passports become less desirable, according to an entertainment accountancy firm.

Streets Media, a firm of chartered accountants that specialises in media and entertainment, said it is seeing an increasing number of Irish performers requesting financial and tax advice, suggesting they recognise “the potential opportunity this situation presents”.

It follows the news that an English-speaking theatre in Germany has said it would not consider British actors for its next production unless they also hold a passport for a EU member state.

Brexit fears prompt German theatre to rule out hiring UK actors for English-language show

The theatre said the uncertainty surrounding Brexit and the chance the UK might leave the EU next month without a deal – bringing an abrupt end to freedom of movement – meant it could not be certain requirements would be in place for contracts starting in April.

Now, Mark Carr, director of Street Media subsidiary Mark Carr and Co, said the move could open up opportunities for performers from Ireland.

“[The English Theatre of Hamburg’s approach] provides a potential pool of English speakers with EU passports, negating any red tape and circumnavigating any potential delays,” he said.

The Hamburg-based theatre said it hoped to develop links and casting networks in Ireland post-Brexit as a way of bypassing the increased bureaucracy and complexity that will surround the employment of UK actors.

Carr warned that any disruption Brexit might bring “may well put the brakes on how the [entertainment] industry currently operates”.

“A major concern is any implications that may befall actors and their ability to work in the EU… We are seeing something of a major uprooting of a system that has taken a long time to develop. After March 29, things could have changed significantly. The key is not to overreact, rather prepare,” he said.

Georgia is chief reporter at The Stage, having joined the company in 2014.