## Keywords
`Engager 648` `AI in Accounting` `MTD IT Preparation`
## Key Learnings
1. Engager 648 Update: The Engager 648 update aims to streamline the process of identifying which clients are authorized at HMRC by allowing users to import client authorization data directly from HMRC's agent gateway.
2. Armalytics Usage: Armalytics is used to ensure bank account reconciliation for clients, particularly in relation to VAT returns and annual accounts.
3. RQ Platform: RQ is a platform that helps professionalize and track referrals, ensuring GDPR compliance and transparency in referral commissions.
4. Adfin Integration: The integration of Adfin with Engager involves multiple phases to streamline invoicing and payment processes.
5. AddSum and OpenTax: AddSum and OpenTax provide visibility into VAT and income tax liabilities but have an ulterior motive of offering loans.
6. Payroll Software: The choice of payroll software impacts efficiency and cost in managing payroll processes.
7. Ad Hoc PDF Documents: Ad hoc PDF documents are used to create standardized reports and letters efficiently.
8. AML KYC Custom Fields: The process of creating custom fields for AML KYC questions in settings.
9. Team Structure and Objectives: Changes in team structure and setting objectives for new roles.
10. Engage Platform Customization: Customization and feedback process for the Engage platform.
11. MTD IT Preparation: Preparation for Making Tax Digital for Income Tax (MTD IT) compliance.
12. Client Communication Strategy: Strategy for communicating tax updates to clients.
13. Use of AI in Accounting: Integration of AI tools like ChatGPT in accounting practices.
## Explanations
### 1. Engager 648 Update
- **Key Points**
- Engager 648 is expected to be online by a week on Monday, pending successful testing.
- Users can export a list of authorized clients for various taxes from HMRC's agent gateway as a CSV file, excluding MTD clients.
- The update will allow users to import this data into Engager, marking clients as authorized and simplifying the process of submitting agent authorization requests.
- **Explanation**
The update addresses the challenge of manually identifying authorized clients by enabling the export of client lists from HMRC's agent gateway. This data can then be imported into Engager, marking clients as authorized and reducing the manual workload involved in the authorization process.
- **Exporting and Importing Client Authorization Data**
> Users can export client lists for self-assessment, PAYE, CT600, and CIS from HMRC's agent gateway and import them into Engager to mark clients as authorized.
1. Export client lists from HMRC's agent gateway for each tax type.
2. Import the CSV files into Engager.
3. Engager marks the clients as authorized, simplifying the process of managing client authorizations.
### 2. Armalytics Usage
- **Key Points**
- Armalytics is used once a year for clients under the VAT threshold and four to five times a year for those over the threshold.
- It helps ensure bank accounts are reconciled for VAT returns and annual accounts.
- Armalytics requests are sent for every VAT return to verify bank balances.
- **Explanation**
Armalytics is utilized to request bank statements and ensure reconciliation of bank accounts for VAT returns and annual accounts. This process helps in obtaining accurate financial data in a format that can be easily imported into accounting software.
- **Using Armalytics for VAT Returns**
> For clients over the VAT threshold, Armalytics requests are sent four to five times a year to ensure bank accounts are reconciled for each VAT return.
1. Send Armalytics requests for each VAT return.
2. Receive bank statements in a CSV format tailored for accounting software.
3. Ensure bank balances are reconciled for accurate financial reporting.
### 3. RQ Platform
- **Key Points**
- RQ allows users to make referrals and track their progress.
- It informs clients about usual commissions, ensuring transparency.
- RQ ensures GDPR compliance by obtaining client consent for sharing contact details.
- **Explanation**
RQ facilitates the referral process by providing a platform to manage and track referrals. It ensures that clients are informed about referral commissions and obtains necessary consents to comply with GDPR regulations.
- **GDPR Compliance with RQ**
> RQ obtains client consent for sharing contact details with referral partners, ensuring GDPR compliance.
1. Client gives e-signature consent through RQ for sharing contact details.
2. RQ tracks the referral process, ensuring all actions are documented and compliant.
### 4. Adfin Integration
- **Key Points**
- Phase one involves adding an Adfin tab in the client's record in Engager.
- Clients can sign up for a direct debit mandate and view invoice statuses.
- Phase two will allow invoice setup in Engager, with Adfin generating and managing invoices and payments.
- **Explanation**
Phase one of the Adfin integration will add a new tab in Engager for clients to manage direct debits and view invoice statuses. Phase two will enable invoice creation in Engager, with Adfin handling invoice generation, sending, and payment collection, integrating with accounting software like Xero and QuickBooks.
### 5. AddSum and OpenTax
- **Key Points**
- AddSum shows VAT and income tax liabilities to offer loans to clients.
- The integration with HMRC allows visibility of client tax balances.
- The firm plans to build its own integration to display tax liabilities.
- **Explanation**
AddSum and OpenTax display tax liabilities to offer loans, similar to payday loans. The firm plans to build its own system to show tax balances using HMRC's API, avoiding AddSum's loan offerings.
### 6. Payroll Software
- **Key Points**
- Employment Hero is used for its cloud-based automation, despite its cost.
- FreshPay and Buddy are alternatives but lack certain features like time tracking and CIS.
- The firm is considering switching to Buddy once it fully supports CIS.
- **Explanation**
Employment Hero is chosen for its automation capabilities, allowing efficient payroll management with minimal staff. Alternatives like FreshPay and Buddy are considered but currently lack necessary features. The firm plans to switch to Buddy once it supports CIS.
### 7. Ad Hoc PDF Documents
- **Key Points**
- Ad hoc PDFs can include headers, footers, and templates for various documents.
- They are used for generating reports, letters to banks, and HMRC appeal letters.
- The process ensures consistency and standardization across documents.
- **Explanation**
Ad hoc PDF documents allow for quick generation of standardized reports and letters with customizable templates. This ensures consistency and efficiency in document creation, such as bank letters and HMRC appeals.
### 8. AML KYC Custom Fields
- **Key Points**
- Custom fields can be created for AML KYC questions.
- Fields can be added under a manual AML page.
- Examples of fields include a drop-down box for yes/no and ID expiry date.
- **Explanation**
To create custom fields for AML KYC questions, navigate to settings and select custom fields. Create a heading for AML and relate it to the manual AML page. Add fields such as a drop-down box for yes/no responses and a date field for ID expiry dates.
- **Creating a Drop-down Field for AML**
> A drop-down box for yes/no responses can be created under the AML heading in custom fields.
1. Navigate to settings and select custom fields.
2. Create a heading for AML.
3. Add a drop-down field with yes/no options.
### 9. Team Structure and Objectives
- **Key Points**
- Split roles between payroll and accounts after 11 months.
- Set objectives for new head of accounts and head of payroll.
- Created custom fields for bookkeeping software and other services.
- **Explanation**
The team structure was reorganized by splitting the roles of payroll and accounts. Objectives were set for the new head of accounts to streamline working papers. Custom fields were created to track client usage of software like Xero, QuickBooks, etc.
- **Objective for Head of Accounts**
> The objective is to streamline working papers and ensure relevance to clients.
1. Set the objective to streamline working papers.
2. Ensure the papers are relevant to as many clients as possible.
### 10. Engage Platform Customization
- **Key Points**
- Engage allows for adding custom fields to improve functionality.
- Feedback can be submitted through the platform for new features.
- Voting on feature requests is encouraged.
- **Explanation**
Users can customize the Engage platform by adding custom fields to suit their needs. Feedback and feature requests can be submitted, and users are encouraged to vote on important features.
- **Submitting Feedback on Engage**
> Users can submit feedback by clicking on their name and selecting 'request a feature'.
1. Click on your name in the Engage platform.
2. Select 'request a feature' to submit feedback.
### 11. MTD IT Preparation
- **Key Points**
- Webinar conducted in January for MTD IT preparation.
- Provided email templates and custom fields for MTD IT.
- Assessment based on 2023-2024 tax returns for 2026 compliance.
- **Explanation**
A webinar was conducted to guide firms in preparing for MTD IT compliance. Email templates and custom fields were provided. Initial assessments are based on 2023-2024 tax returns, with final assessments for 2026 compliance based on 2025-2026 returns.
- **MTD IT Webinar**
> A webinar was conducted to guide firms in preparing for MTD IT compliance, including email templates and custom fields.
1. Conducted a webinar in January.
2. Provided email templates and custom fields for MTD IT.
### 12. Client Communication Strategy
- **Key Points**
- Use BBC articles and ChatGPT to summarize budget impacts.
- Send information emails to clients about tax changes.
- Clients cannot opt out of information updates.
- **Explanation**
The strategy involves watching the budget announcement, summarizing it using ChatGPT, and sending the information to clients. Information emails are sent to 115 clients, ensuring they are informed about tax changes.
- **Sending Tax Update Emails**
> Emails are sent to 115 clients with updates on the spring statement, using summaries from ChatGPT.
1. Watch the budget announcement.
2. Summarize using ChatGPT.
3. Send emails to 115 clients.
### 13. Use of AI in Accounting
- **Key Points**
- ChatGPT is used for summarizing and communicating information.
- A webinar on AI usage in firms is planned.
- AI tools like ChatGPT and Copilot are used daily.
- **Explanation**
AI tools such as ChatGPT are used to summarize information and communicate with clients. A webinar is planned to demonstrate AI usage in accounting firms, highlighting tools like ChatGPT and Copilot.
- **Webinar on AI Usage**
> A webinar is planned to demonstrate how AI tools like ChatGPT are used in accounting firms.
1. Plan a webinar on AI usage.
2. Demonstrate tools like ChatGPT and Copilot.

> **AI Suggestion**
> - The core of this lesson is understanding the integration and customization of platforms for efficient business processes. It's recommended to start with a hands-on project to grasp the integration of systems like Adfin and Engage through practical application.
> - Core content of Adfin Integration: Integration involves phases to streamline invoicing and payment processes.
> - Core content of Engage Platform Customization: Customization and feedback process for the Engage platform.
> - Additionally, here are some extracurricular resources:
> - Practical application of Adfin Integration: [Link to a tutorial or case study on invoicing and payment integration]
> - Alternative perspective on Engage Platform Customization: [Link to an article or video on platform customization strategies]
> - Other resources: [Link to a guide on effective client communication strategies]