Cross-border Trade and Accounting

Debate between Andrew Jones and Luke Graham

Wednesday 30th October 2019 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I have to say that this is the most passionate speech on accountancy I have ever heard. I am slightly amused by, or in awe of, the idea that accountancy can save the world. To underline my hon. Friend’s point, technology removes operational burdens from business and boosts productivity. Is he going to come on to, or will he comment on, the barriers that are stopping more companies taking up the benefits that he is articulating so very clearly?

[Luke Graham]

My hon. Friend makes a very good point. The Minister will be well versed in some of the reports and debates on Making Tax Digital. A lot of these barriers were articulated at that time. One key area will be costs. Sometimes the cost of pieces of accounting software is very low, perhaps a couple of hundred pounds or so, but for a small company it is still an additional cost. The other obstacle that customers and companies will face is knowledge of the accounting software. Even in a large multinational business, many of the executives on the board, and many of the managers, have no knowledge of their accounting system. They are only focused on simple outputs and do not necessarily know what is underneath the bonnet. With modern cars, as we all know, that often leads to more costly and more complicated servicing when the time comes. That is great news for finance directors but not such great news for operational directors.