The Modern Accountant Weekly Newsletter | 💸 The Hidden Cost of Payment Inefficiencies

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Editors Pick 📣

The Hidden Cost of Payment Inefficiencies—And the Opportunity for Accountants to Drive Change

Manual finance processes are quietly draining resources across the UK economy—but nowhere is the impact felt more acutely than in sectors like care, where delayed payrolls, fragmented systems, and poor cash flow directly affect frontline outcomes.

This week, Modulr spotlights how accountants can play a strategic role in solving these challenges. With the right automation tools, firms can help care providers and other operationally complex clients streamline payments, improve reliability, and unlock time for higher-value work.

Whether you’re advising clients in care, education, or other people-powered sectors, this is a must-read on how accountants can lead the shift to smarter finance infrastructure—without major disruption.

Sector Spotlight 🌟

ACCOUNTING TECHNOLOGY

Agentic AI Advances Towards Mainstream Adoption In The Accounting Profession

Agentic AI is shifting the conversation in accountancy by moving beyond robotic process automation—no longer just automating repetitive tasks, but also making decisions, learning from feedback, and taking on multi-step responsibilities with minimal human input. Although current products like Oracle NetSuite’s Financial Exception Management AI and new offerings from Microsoft hint at what’s coming, real end-to-end deployment remains limited, with most firms bolting on chatbots rather than implementing true agentic solutions.

The real draw for practices is clear: cost savings, efficiency, and addressing talent shortages. As AI integrates further, tasks such as handling client enquiries, generating proposals, and managing compliance are on the brink of significant automation. Still, these systems can’t fully replace human judgement, especially where context is key. Trust remains a hurdle, but as AI becomes faster and more reliable, its role in UK accountancy is set to expand rapidly.

FISCAL POLICY DIRECTION

Chancellor Reeves Rules Out Wealth Tax Hikes in Autumn Budget Statement

Chancellor Rachel Reeves has firmly put to rest any speculation about wealth tax increases in the Autumn Budget, including capital gains tax. This signals a clear strategy—no new squeezes on personal wealth, even as the UK faces a tightening fiscal landscape and sluggish growth forecasts. Reeves’ commitment to maintaining existing tax levels is rooted in the belief that economic growth, rather than higher taxation, will shore up public finances—an approach likely to reassure working households and investors alike.

On the policy front, Reeves is sticking to fiscal discipline, reserving borrowing for capital investment while keeping routine expenditure funded by existing taxation. This might please markets in the short term, but it could limit the government’s agility should economic conditions deteriorate. Internationally, Reeves is positioning the UK as pragmatic on trade and open to fresh capital through high-profile listings like Shein’s, despite underlying geopolitical tensions, signalling confidence in London’s eCommerce appeal and capital markets.

DIGITAL TRANSFORMATION

Paperless Audit Systems Enhance Efficiency, Data Security And ESG Capability For Firms

Going paperless is no longer just about being “green”; it’s turned into a smart move for accountancy firms eager to boost efficiency, audit quality, and client satisfaction. Digital audit platforms aren’t just modernising operations—they’re cutting out manual errors, speeding up compliance checks, and enabling teams to focus on higher-value analysis rather than chasing paper trails.

Cloud-based systems offer seamless client collaboration, real-time data validation, and robust data security through encryption and instant backups—a far cry from the days of lost binders and misfiled documents. These platforms also help firms attract tech-savvy talent and support ESG initiatives by enabling clearer audit traceability and sustainability reporting. With regulatory demands increasing and clients expecting more agile service, adopting paperless workflows is fast becoming essential for firms looking to stay competitive in a digital-first, ESG-driven world.

SUSTAINABILITY CONSULTING

Accountancy Firms See New Opportunities in Nature and Environmental Reporting

Peter Harker, a partner at Saffery and specialist in landed estates, highlights how accountancy firms are increasingly integrating nature-related services into their offering, particularly in response to growing interest in natural capital among landowners. Traditionally focused on audit and tax compliance, Saffery is now expanding into areas such as climate and ESG reporting, carbon credit accounting, and biodiversity units. The firm is advising clients—ranging from family farms to institutional investors—on how to treat nature as a valuable asset, helping them understand financial returns from activities like tree planting, peatland restoration, and ecotourism. Harker emphasizes the importance of strategic leadership and internal education within firms to meet the evolving needs of clients and support the shift toward sustainable land management.

TAX COMPLIANCE PREPARATION

Preparing For Making Tax Digital Income Tax Changes From April 2026

Making Tax Digital (MTD) for income tax is set to transform how self-employed individuals and property owners in the UK manage their tax affairs from April 2026. Now is the perfect time to streamline your client list by referencing 2023/24 tax returns and preparing for evolving reporting obligations. Remember, jointly-let properties are usually within MTD’s scope unless formally structured as partnerships, which is a detail that often catches professionals off guard.

Proactive preparation goes beyond the numbers. Leverage HMRC webinars for up-to-date guidance and evaluate your software setup—VAT-compatible tools may not cover MTD for income tax. The reality is most practices will juggle multiple, MTD-compatible software solutions; make sure they’re integrated smoothly to prevent headaches down the line. Start these preparations early, as this transition is as much about operational efficiency as it is about compliance.

DATA SECURITY

HMRC Freezes Tax Agent Accounts Amid Suspicious Activity And Security Concerns

HMRC’s recent clampdown on suspicious activity has led to the swift freezing of tax agent accounts—a move designed to keep client data safe but, admittedly, a cause of stress for agents caught unaware. Criminals exploit Agent Online Service Accounts (AOSA) and Agent Services Accounts (ASA) for their broad access to client tax records, prompting HMRC to act without warning when irregularities emerge. If locked out, agents can regain access through HMRC’s dedicated helpline, though password resets and a thorough malware check are part of the reinstatement process.