The steady march of Artificial Intelligence (AI) has reshaped the way we work, penetrating almost every aspect of modern business.

This seismic shift to AI has offered a plethora of benefits across industries ranging from retail and healthcare to banking and financial services.

On the flipside, drawbacks and potential dangers of using this new technology remain a valid threat and successful integration of AI requires careful consideration of ethical concerns and potential security risks.

Enhanced efficiency and productivity

AI often augments human capabilities and can increase productivity while reducing operational costs.

It can handle repetitive, mundane tasks with the ability to analyse vast amounts of data, freeing up employees for higher value work and decision-making.

Customer service

AI powered chatbots and virtual assistants provide round-the-clock customer support, addressing enquiries promptly.

There are downsides to the technology, however. An AI-powered chatbot can sometimes fail to understand human emotions and give a robotic reply to a query, resulting in a dissatisfied and frustrated customer.

Safety and security

AI can assist in predictive maintenance, preventing equipment failures and ensuring workplace safety.

Businesses should be aware, however, that a cybercriminal can restrict the capabilities of a business’s AI systems to penetrate them and access sensitive information.

Broadly speaking, AI can support firms through automating business processes, gaining insight through data analysis and engaging with customers.

Those who fail to take advantage of AI risk falling behind competitors who can operate far more efficiently. Many still believe that more regulation is necessary to negate any potential risks.

Company insolvencies across England and Wales fell in July and are six per cent lower than the same month last year, official figures show.

The headline reduction in insolvencies to 1,727 is down 20 per cent compared to June’s registered total of 2,163.

The level of Creditors’ Voluntary Liquidations (CVLs), mainly seen among smaller companies, is also starting to drop. The total for July was 1,336 – 17 per cent lower than in the same month last year.

By contrast, the total number of administrations and Company Voluntary Arrangements (CVAs) – rescue procedures which tend to be used by larger companies – was four times higher than in July 2022.

Conditions remain challenging, and the latest figures shared by the Insolvency Service are still well above the pre-COVID-19 historic average. Compared to July 2021, corporate insolvencies have increased by more than 57 per cent and almost 20 per cent compared to July 2019.

Economic issues continue to bite

Despite some positive trajectories, experts are warning businesses to acknowledge and address persisting challenges.

Nicky Fisher, the President of R3, the UK’s insolvency and restricting trade body, said: “Costs are rising at a time when people are cutting spending back, leaving businesses facing the challenge of squeezed margins and shrinking revenues and having to work out whether to absorb their cost increases or pass them on to their customers.

“Alongside these, requests for wage increases, and higher energy bills are also hitting businesses hard as the costs of cooling premises in the summer are just as challenging as keeping them warm in the winter.

“These are making firms more cautious about investment or recruitment – especially as the increased cost of borrowing will make raising funds for investment more challenging.”

Seek advice

Businesses are being advised to continue vigilance, seek guidance and consider long-term financial management strategies that prioritise financial stability.

Need advice on this issue? We can help.

A change in a taxpayer’s circumstances could mean they need to complete their first ever self-assessment tax return.

Tax is usually deducted automatically from wages and pensions; however, people and businesses with other income must report it in a tax return.

HMRC must be informed by October 5 by those who need to complete a tax return and have not sent one before.

Who needs to check?

A free online checking tool is available on GOV.UK to help those unsure if they need to complete an assessment. It can also be used by people who may no longer need to do self-assessment, including if they:

• Gave up work or retired
• Are no longer self-employed
• Earn below the minimum income thresholds

If taxpayers no longer think they need to complete a self-assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on January 31, 2024.

Avoiding penalties

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “It is important that taxpayers check if they need to complete a self-assessment tax return so they can pay the right amount of tax owed and avoid penalties for not filing a return.

“It is quick and easy to check by using the interactive tool on GOV.UK – there is no need to ring us.”

Who needs to compete a tax return?

Taxpayers may need to complete a tax return if they:

• Are newly self-employed and have earned more than £1,000
• Have multiple sources of income
• Have received any untaxed income, for example earning money for creating online content
• Earn more than £100,000 a year
• Earn income from property that they own and rent out
• Are a new partner in a business partnership
• Are claiming Child Benefit and they or their partner have an income above £50,000
• Receive interest from banks and building societies of more than £10,000
• Receive dividends in excess of £10,000
• Need to pay Capital Gains Tax
• Are self-employed and earn less than £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits

Taxpayers can register for self-assessment on GOV.UK. Once registered, they will receive their Unique Taxpayer Reference, which they will need when completing their tax return.

Need advice or support with self-assessment tax returns? We can help.

Small and medium-sized businesses can now access support to reduce energy bills and carbon emissions through a new advice site.

The UK Business Climate Hub offers help for Britain’s 5.5 million SMEs, providing advice on everything from paying less for electric vehicles to generating green energy and selling it back to the grid to make money.

It also features a free carbon calculator and a suite of new tools to help businesses measure, track and report on emissions.

An array of options

The hub features guidance on various options including:

• Switching employee modes of transport and paying less for company EVs
• Getting business grants, green loans and financing for a retrofit
• Buying an air source heat pump
• Generating green energy with a wind turbine and selling it back to the grid
• Reducing emissions from farming and land use
• Buying credible carbon offsets
• Getting low-carbon product labels and certifications
• Reducing waste and recycling more

Drive towards net zero

Business and industry accounts for around 25 per cent of emissions in the UK. While research suggests 90 per cent of SMEs are keen to reduce their carbon footprint, many find it difficult to know how or where to start.

Minister of State for Energy Security and Net Zero, Graham Stuart, said: “More and more businesses are recognising the business benefits of reaching net zero and we’re determined to empower them to do so.

“Whether it’s fitting a low-carbon heat pump, generating energy with solar panels, or reducing the emissions from shipping goods, the new support will ensure businesses can drive towards net zero.”

The new site is endorsed by business leaders and ministers on the new Net Zero Council who are calling on business representative organisations across the country to take concerted action to plan to reduce their members’ emissions.

In 2020, the UK was estimated to already have more than 400,000 jobs in low carbon businesses and their supply chains across the country, with turnover at £41.6 billion.

More than 80,000 green jobs are currently being supported or are in the pipeline because of new Government policies since 2020, with that expected to increase to as many as nearly half a million by 2030.

For further information visit https://businessclimatehub.org/

Accountancy, like many other industries, has long struggled with a dire skills vacuum within the sector.

The pool of qualified accountants continues to shrink, with the over-50s and those aged 18 to 24 leaving the workforce in the greatest numbers. Figures suggest many older accountants chose to retire early during the pandemic, while younger individuals are choosing to travel or study for longer.

The war for talent may seem momentous, but companies who use honed talent acquisitions strategies and welcome new methods and technologies will be better placed to win the battle.

Embrace technology as an essential tool and leverage AI

As accountancy undergoes rapid technological advancements and evolving practices, teams who fail to adapt may find themselves at a disadvantage when it comes to attracting talent and retaining existing staff.

Training in data analytics, automation and accounting software can enhance efficiency and decision-making capabilities. Leveraging artificial intelligence to handle routine tasks, meanwhile, can free up accountants to focus on strategic analysis and decision-making.

It helps to forge strong partnerships between accounting and IT departments – collaborative efforts can facilitate the integration of technology into accounting processes.

Foster a culture of continuous learning

By investing in reskilling and upskilling initiatives and encouraging professionals to pursue certifications and staying updated on industry trends, businesses can bridge the skills gap without the need for recruitment.

Cross-training and mentoring programmes can facilitate knowledge transfer between experienced accountants and those new to the game.

Diversify hiring criteria

An open-minded approach in recruitment can uncover candidates with the potential to thrive.

Consider candidates who demonstrate so-called soft skills such as a willingness to learn, communication and critical thinking, even if they don’t possess the full spectrum of qualifications or experience.

Embrace remote working

According to research by Hays Recruitment Agency, a top priority for jobseekers is work-life balance, with 41 per cent rating it second only to salary in importance.

Providing remote or hybrid working can provide access to a larger talent pool and is known to increase productivity.

In addition, being more open to the possibility of hiring overseas candidates can help firms struggling to fill positions with local workers.