The true value of technology?

In the July/August issue of Financial Director magazine we published research, carried out with CSC, which suggested that finance directors are now fully aware of the true business potential of technology.

IT, it seems, is no longer seen as a cost, but as a long term strategic investment - and measuring the return on that investment is not of critical concern. "Instead of having technology in a support role, it is one of the central driving engines for the organisation," said one finance director.

Recent research by the Economist Intelligence Unit points to very similar findings with 69% of C-Level respondents saying that within three years the role of IT will move from cutting costs to driving revenue growth.

So, is the role of technology in the eyes of directors changing? Are execs finally viewing IT as central to the business, rather than something that the guys in jeans and trainers look after on the fourth floor? Will IT directors get seats on the board? Is ROI a waste of time?

We plan to get to the bottom of these questions, and hopefully many more, during an Insider Business Club live roadshow at Softworld Accounting & Finance.

But let's get the ball rolling now...

David Rae
Deputy editor, Financial Director

Major VAT changes planned by HMRC

HMRC is in deep discussion with the software industry about the best way to fight its burgeoning 'Carousel Fraud'. The current suggestion is the treatment of certain items as 'Reverse Charge' when sold 'business-to-business' (b2b), but as normal VAT when sold retail.  The trading company would have to send a Reverse Charge Sales List (RCSL) to HMRC showing the monthly sale of these items under the reverse charge rules.

The concept of Reverse Charge has already been implemented in most computer systems but only for imports from EC countries.  This new initiative will be for local b2b sales of the specified goods (Mobile Phones, Computer Chips, Memory Cards etc).  We would have to upgrade our VAT systems as well as provide the ability to send the new Reverse Charge Sales List.

HMRC expects to have EU approval for these changes before the end of the year - unfortunately it may be a further 6 months before the software industry is able to deliver updates to its products.

For more information see:- http://customs.hmrc.gov.uk/ - Business Briefs - 2006 - 14/06.

Dennis Keeling
Chief Executive, BASDA - representing the Software Industry.

How is your emotional intelligence?

In predicting success in life and in the workplace, Emotional Intelligence is all the rage – so how’s yours? Take our fun two-minute test and see if you’ve got what it takes....

Click here to take the test!

Are you up to speed with all the latest developments on electronic reporting?

This is a little quiz we put together on the Carter Report and electronic filing.  It was sent as a viral email campaign to promote the Softworld Accounting and Finance show. 

How well do you know the government's electronic strategy for HMRC?  Click on the link below to test your knowledge now!

CLICK HERE TO TAKE THE TEST

Don't purchase a new HR System without first looking at the performance of your HR transactional processes

Whatever you do, please do not try to replicate existing processes when you select your next HR System. Take the opportunity to review what you are currently doing and ask yourself "what do we need, in terms of HR systems functionality and technical functionality to make our processes LEAN and more efficient and effective".

Using Six Sigma LEAN techniques for transactional services like HR you could improve your process performance by between 30% - 80%! It's happening already in the USA with spectacular savings being achieved in large organisations and it WILL happen here.

Using these techniques you can not only prepare a cast iron business case for your new HR System, but also deliver year on year savings to maximise the return on your investment.

Come and see my masterclass session at Softworld (NEC) on 19th October 2006 to see how it can be achieved, or email me for more information at paul.rains@transacthr.co.uk or visit my new web site www.transacthr.com