Last updated: January 12, 2021

What will 2021 have in store for us?

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It’s fair to say that last year no-one could predict the Pandemic and the devastation we’ve endured. We did predict Brexit disruption, and this looks like it will be the case until systems are in place to ease travel and trade.

Brexit - new rules are here

There will be ‘bumpy moments’ for UK businesses and travellers as they get to grips with new EU rules. The nature of the UK’s new relationship with the EU - outside the Single Market and Customs Union - means that there are practical and procedural changes that businesses and citizens will need to follow. You can find the new rules here.

The Government continues to urge businesses to make sure they understand the new rules on importing and exporting goods, including the different rules that apply to trade with Northern Ireland, and to consider how they will make customs declarations on EU trade.

They also encourage travellers to EU destinations from 1 January to take out comprehensive travel insurance, check their mobile phone provider's roaming charges and make sure they have at least six months left on their passports.

Manufacturing and sectors dependent on the movement of goods between the UK and EU will be most affected.  We do believe that our clients are resilient and will adapt to the changes and that the new regulations will be a short-term issue. 


COVID-19

The lockdown, in varying tiers, will continue to be in place for at least the first six months of 2021 and will only ease up when mass vaccinations have been done. This will impact hospitality, retail, personal services and travel businesses most. With a positive attitude, we’re hoping for many of these to bounce back later in the year. 


Change in consumer behaviour

The lockdown has altered consumer behaviour and we predict further retail evolution as a result. For example, it is reported that Amazon will expand its Go store chain into the UK with shops that do not have a checkout. Customers can collect the products they want and leave the store without a checkout process. A combination of digital cameras and artificial intelligence tracks what they have collected and invoices them when they leave the shop.


Working from home - the new norm?

We also predict that working from home will become the ‘new normal’ for many smaller service-based businesses. This offers reduced office costs and more flexibility.

New and enhanced work from home security and collaboration software will develop further next year, and we encourage our clients to review their internet security regularly.


Move to cloud accounting

We’ve already seen many businesses make the switch to cloud accounting throughout 2020, and this is likely to continue for 2021. Why? Cloud accounting software has several advantages for business owners:

  1. Your accounts are 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available, and you can access your data from anywhere, and any device with an internet connection.

  2. Get a clear picture of your current financial position, in real-time with bank feeds pulling in your data directly into your accounts on a DAILY basis.

  3. With hundreds of add-on applications, you can create seamless integrations between your different organisations systems.

  4. Ensure compliance with MTD.

If you’re ready to make the move to cloud accounting, and need help, get in touch with our Business Development Manager today on (0121) 295 8884 or email charlie.sangha@informaccounting.co.uk.

 

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