IAAITC welcomes DTI ruling
Accountants' body says new SME audit thresholds will force firms to find other revenue sources
An independent organisation dedicated to pairing accountants and VARs in the SME space has welcomed Department of Trade and Industry (DTI) regulations increasing SME audit thresholds, claiming it will generate new business.
The Independent Association of Accountants Information Technology Consultants (IAAITC), set up last August, held its first steering committee meeting last week.
IAAITC has recruited around 200 resellers so far and is working closely with the government-backed Technology Means Business scheme.
David Reynolds, IAAITC chief executive, said: "One main topic of conversation was how the new audit ruling will affect business.
"From an accountant's perspective this is a source of revenue that will shrink in 2004, but this will encourage firms to develop other revenue sources and look more closely at IT."
As revealed in CRN last year, the DTI has doubled the turnover threshold that defines an SME from £2.8m to £5.6m.
The ruling, which comes into force at the end of this month, also means that businesses with a turnover below £5.6m no longer need a statutory audit.
Jacqui Malpass, manager of the Professional Partner Programme at vendor Evesham, an IAAITC member, said: "The DTI ruling is good news for the channel.
"Accounting firms will be forced to generate business from other areas and will look more towards IT. This is where the IAAITC comes in."
Stephen Slater, partner at chartered accountancy firm RMT, agreed. "Accountants now have the challenge of finding new income streams. Technology has a big part to play in this," he said.
"It makes sense for accountants to work together with IT resellers. It is a chance for both sides to cross-sell services and increase revenue."