1. New Get Help Button and Help Guide: A new button on the top bar that opens a help guide window to search for assistance, providing users an easier way to access support within Engager.
2. Data Storage Usage Feature for Client Data: A feature designed to track and display data storage usage per client in detail, ensuring that only essential data is stored (in accordance with GDPR requirements) and providing transparent usage information.
3. Accessible Color Schemes Integration: Integration of ChatGPT to recommend accessible color schemes for Engager’s data charts, ensuring that users with vision impairments or color blindness can effectively interpret visual data.
4. Workflow Automation for Self-Assessments and Tax Returns: A structured workflow combining timed questionnaires and automated follow-up emails to increase client engagement and improve submission rates for self-assessments and tax return data.
5. Client Window Integration and Messaging Workflow: The integration of client window software with Engager aimed at streamlining client messaging through an API-driven approach, addressing duplicate contact issues and exploring tools like Fixer.AI and Zendesk.
6. Email Client Tools and AI Features Discussion: A discussion focused on the merits and pricing of various email client tools and AI features, highlighting user preferences and the effectiveness of these tools in managing emails.
7. Document History in Renewal Process and Upcoming Proposal Module: An explanation of the current process for managing document history during client renewals and the planned enhancements through an upcoming proposal module that will automate historical archiving.
8. MTDit MOT Service for Self-Assessment Clients: This knowledge point explains the development of the MTDit MOT service where the client manages their own bookkeeping and files their own income statements every quarter, while the service provider runs a Xenon health report once a quarter to assess the client's bookkeeping health.
9. MTD VAT Authorization Troubleshooting: This knowledge point covers common issues with VAT MTD authorization, especially errors arising from incorrect login usage and issues with extra spaces in reference numbers.
10. Client Sign-Up Process for MTD and Self-Assessment: This knowledge point explains that clients cannot be signed up for MTD directly via the API during the beta phase. Instead, MTD sign-up happens via a digital handshake on the web, and self-assessment agent authorisations can be transferred in bulk from an older account.
11. Configuring Tailored Checklists in Engager: This point describes how to add and customise checklists for specific client services within the Engager platform, enabling a tailored approach for individual client needs.
12. PAYE MTD Authorization Process: This knowledge point explains the process for setting up PAYE MTD authorisation. It details entering the agent ID, Government Gateway ID, password, and the PAYE office reference (which must be in uppercase) in the settings.
13. Sending Proposal Emails with Letter of Engagement: This knowledge point outlines the process of converting a prospect into an active client by sending a proposal email that includes a letter of engagement using the Engager system.
14. Utilizing ChatGPT for Email and Content Creation: This point highlights the use of ChatGPT as a tool for generating email content and planning blog structures or pricing guides, significantly improving efficiency in drafting client communications.
15. Pod System and Client Manager Filtering in Engager: This knowledge point discusses the restructuring of the practice into pods and how assigning a client manager (pod leader) for each pod can enhance the filtering of client jobs within the Engager system.
16. Scheduling the AI and ChatGPT Webinar: This point addresses the planning of an upcoming webinar on the use of AI and ChatGPT, noting that scheduling conflicts may delay the event to July at worst.
17. HMRC Branding and Trademark Restrictions: This knowledge point explains that even though firms are registered as HMRC agents, they are not allowed to display the official HMRC logo on their websites or social media due to trademark restrictions.
18. Service Checklist and Engagement Procedures: This knowledge point covers the importance of accurate service engagement documentation and checklist management. It emphasizes that elements such as the Director's name in the Engagement letter must be correct and that checklist changes affect only future job occurrences rather than current jobs.
19. MTD (Making Tax Digital) Implementation, Client Grading, and Webinar Strategy: This point delves into the MTD implementation process, including the grading of tax return clients, the scheduling of webinars for training, and the fee structuring for income and expense submissions under MTD.
20. Phased Client Assessment and Bridging Software Use: This knowledge point discusses the segmentation of clients into phases for MTD implementation and the use of bridging software as a temporary solution for clients reluctant to update to new digital systems.
21. Software and Tools Integration, Data Management, and Expense Cards: This knowledge point covers the integration of accounting software tools for streamlined operations including data management, inexpensive data retrieval for GDPR requests, and new features such as expense cards which simplify employee expense settlements.
22. Deal Negotiation and Heads of Terms in Finance: This knowledge point outlines the negotiation process for a financial deal, highlighting deferred payment structures, protection clauses for lenders, and the drafting of Heads of Terms. It also touches on the trade-offs between immediate cash returns versus waiting for potential EBITDA growth.
## Explanations
### 1. New Get Help Button and Help Guide
- **Key Points**
- Button relocated to the top bar for greater visibility
- Opens a new window with a comprehensive help guide
- Accessible from all live instances of Engager
- **Explanation**
Johann demonstrated that the 'Get Help' button is now prominently placed on the top bar, enabling users to immediately access a help guide window where they can search for any required assistance. He emphasized that questions should be submitted through the Q&A section rather than general chat to ensure they are seen and answered.
### 2. Data Storage Usage Feature for Client Data
- **Key Points**
- Rolling out next week on Monday night into Tuesday morning
- Displays storage usage by category such as uploaded files, signed documents, image library, and generated documents
- Calculates storage based on subscription: for every client, 500 megabytes are allocated (e.g., 5,000 clients can use a total of 2,500 gigabytes)
- Allows users to purge data manually when necessary
- **Explanation**
Johann explained that under GDPR, only essential data should be stored, and the new 'Storage Usage' option in the Settings will offer a clear breakdown of how data is distributed across different document types. For example, his subscription allows for 5,000 clients with 500 megabytes each, resulting in a total of 2.5 terabytes. The feature even shows percentages (e.g., 55% of data is in uploaded files) and enables users to check individual client data usage and free space.
- **Storage Calculation Example**
> Johann provided his firm’s subscription details as an example: with 5,000 clients each allocated 500 megabytes, the total storage amounts to 2,500 gigabytes (2.5 terabytes). The display also breaks down storage usage by document category, such as uploaded files, signed documents, etc.
1. Subscription allows for 5,000 clients.
2. Each client receives 500 megabytes, totaling 5,000 x 500 MB = 2,500 gigabytes.
3. Visual charts enable users to monitor usage and purge unnecessary data.
### 3. Accessible Color Schemes Integration
- **Key Points**
- ChatGPT was used to analyze an image and suggest accessible colors
- Ensures color palettes are suitable for users with vision impairments
- User feedback (e.g., issues with red in other platforms) influenced the design
- **Explanation**
Johann explained that his team consulted ChatGPT by providing it an image of the current color scheme and asking for recommendations that would be accessible, especially for people with color vision deficiencies. This process resulted in a new palette for Engager’s pie charts and data visualizations, addressing concerns raised by users who struggle with distinguishing specific colors.
- **ChatGPT Color Recommendation**
> In the demonstration, Johann mentioned that ChatGPT was given a copy of an image to analyze and subsequently provided an accessible color palette for the pie charts. This step was taken to ensure better differentiation for users with vision impairments.
1. An image was provided to ChatGPT.
2. ChatGPT returned a list of accessible colors.
3. These colors have been implemented in the data charts to improve accessibility.
### 4. Workflow Automation for Self-Assessments and Tax Returns
- **Key Points**
- Questionnaires were sent out on the 4th of April on a Friday to maximize response rates
- 17.5% of clients responded in the first four days
- An automatic follow-up email was sent on the following Monday, boosting responses to 30% with 6% of tax returns filed
- Email automation frequency was changed from every three months to every two weeks for better engagement
- **Explanation**
Johann detailed a case where sending self-assessment questionnaires at the end of the week (Friday) allowed clients the weekend to respond, resulting in a 17.5% response rate within four days. A follow-up email sent on Monday further increased participation to 30%, with 6% of tax returns filed. This workflow adjustment, from quarterly to bi-weekly reminders, has shown significant improvements in client engagement.
- **Self-Assessment Campaign Case Study**
> In a live example, questionnaires were distributed on the 4th of April, leading to a 17.5% response rate in four days. After an automated email reminder on the following Monday, responses rose to 30%, and 6% of the tax returns were filed.
1. Choosing Friday for distribution provided clients the weekend to consider responses.
2. Follow-up automation on Monday served as a timely reminder.
3. Frequent email automation (every two weeks) replaced the previous three-month intervals, resulting in higher engagement.
### 5. Client Window Integration and Messaging Workflow
- **Key Points**
- Client window is set to go live this week
- Current integration issues include creation of duplicate contacts due to multiple email addresses
- Plan to adopt an API-driven system to automatically link messages to the correct client record
- Discussion includes potential integration with Fixer.AI and Zendesk
- Utilization of Microsoft Teams integration for client window access is being explored
- **Explanation**
Johann discussed the impending launch of the client window, emphasizing that to prevent the creation of numerous duplicate contacts, the system will use an API-driven integration method. This approach involves ensuring the support email receives a copy of every client message, which can then be manually linked to the appropriate client record. The discussion also noted experiences shared by users using client window via Outlook and Teams, and deliberations over integrating Fixer.AI and Zendesk.
- **Client Window Implementation Instance**
> Johann explained that the new client window system will operate outside of Engager to avoid issues like tripling the number of contacts. Users such as Michael reported using the Outlook app and Teams for client window access, and the long-term plan is to establish API integration to streamline message linking.
1. Currently, client window functions outside of Engager to prevent duplicate contacts.
2. API-driven integration is planned to ease the process of linking messages.
3. External tools like Fixer.AI and Zendesk are being considered to enhance client support.
### 6. Email Client Tools and AI Features Discussion
- **Key Points**
- Discussion of different email apps including Spark, Outlook, and Superhuman
- Spark email is priced at £4.99 per month for individual use
- Johann expressed preference for Spark's gatekeeping features that filter out unnecessary emails
- Skepticism was shown towards AI reply features despite their availability
- **Explanation**
Participants shared their experiences with various email client tools. Johann favours Spark for its ability to streamline the inbox and its affordable pricing, while others discussed their challenges with tools like Superhuman and adaptations using the Outlook app. The discussion also touched upon the use of AI-generated replies, with Johann noting that although these features exist, he has not found them as effective as manually composing emails.
- **Spark Email Pricing and Functionality**
> When Patrick inquired about the pricing for Spark, Johann clarified that the Spark email app costs £4.99 per month for an individual. He described Spark's benefits, such as its effective filtering system, which aids in managing email flow more efficiently than some competitors.
1. Price confirmation of £4.99 per month for individuals.
2. User feedback emphasized Spark's ability to gatekeep irrelevant emails.
3. Comparisons were made with other email applications like Outlook and Superhuman.
### 7. Document History in Renewal Process and Upcoming Proposal Module
- **Key Points**
- Currently, renewing a letter of engagement does not save historic information automatically
- Workaround requires manually downloading, saving, and re-uploading the document before regenerating it
- Future proposal module will include automatic document history for each letter of engagement or proposal
- **Explanation**
In response to Fiona's query about saving historical information during client renewals, Johann explained that the current system does not retain previous engagement letters. The suggested temporary workaround is to manually save and archive the old document before generating a new one. However, an upcoming proposal module will streamline this process by automatically maintaining a document history.
- **Manual Document History Save Example**
> Fiona asked whether sending a renewal to a client would save historic information. Johann advised that currently, users must manually download the existing engagement letter, save it in the client's folder, upload it, and then regenerate the letter. The future proposal module will automate this archival process.
1. Current system does not auto-save historical versions.
2. Users need to perform manual backup before renewal.
3. The proposal module will introduce an automated history tracking feature.
### 8. MTDit MOT Service for Self-Assessment Clients
- **Key Points**
- Client does its own bookkeeping and files quarterly income statements.
- A Xenon health report is run once a quarter to check the bookkeeping status.
- If the health report score is above 85 percent, the client can file normally.
- If the score is below 85 percent, the client is advised to sort out issues, and if they cannot do it themselves, the provider will fix it for a fee (referred to as X).
- This service acts as both a light-touch service for saving money and as a lead generator.
- **Explanation**
Johann detailed a service called MTDit MOT which is designed for clients who want to do all their own bookkeeping and file their own income statements. The process involves running a Xenon health report each quarter. Clients whose reports score above 85 percent can file normally, whereas those with scores below 85 percent are advised to correct issues before filing. If they cannot fix these issues independently, it may cost them an extra fee (X) for the service provider to intervene.
- **Quarterly Health Report Example**
> Each quarter, a health report is generated via Xenon. Clients achieving a score above 85 percent are advised to file immediately, while those below 85 percent are informed that they need to resolve their issues or pay a fee (X) for assistance.
1. Client completes bookkeeping independently.
2. Xenon is used to assess the health of the bookkeeping on a quarterly basis.
3. Outcome decisions are based on the 85 percent threshold.
### 9. MTD VAT Authorization Troubleshooting
- **Key Points**
- Error in VAT MTD authorization often arises from using the wrong login credentials.
- Users must authorize using the digital agent gateway logins, not those for corporation tax.
- Copying and pasting the MTD agent reference number can inadvertently add extra spaces.
- Extra spaces can cause validation errors, as seen in the example with John.
- **Explanation**
Johann explained how to troubleshoot VAT MTD authorization errors. The most common problems include using a login intended for corporation tax instead of the digital agent gateway and the unintentional inclusion of spaces when copying the MTD agent reference number. The solution involves manually retyping the code without spaces after verifying that the appropriate login and authorization details are being used.
- **Reference Number Space Issue**
> John encountered an error because the MTD reference number he pasted included an extra space at the end, which caused a mismatch with the agent business details.
1. The user copied and pasted the MTD reference number, which included a trailing space.
2. The solution was to manually re-enter the code without any spaces.
3. After correcting the input, the authorization error was resolved.
### 10. Client Sign-Up Process for MTD and Self-Assessment
- **Key Points**
- MTD sign-up is handled through the digital handshake agent digital service authorisation webpage.
- Clients cannot be signed up via the API as the MTD is still in beta.
- Self-assessment agent authorisations from an old account can be migrated in bulk using HMRC's workflow.
- **Explanation**
Johann clarified that for MTD, client sign-up must be completed via the official MTD digital handshake webpage, as the API does not support this feature during the beta phase. Meanwhile, for self-assessment, existing agent authorisations can be bulk transferred from the old account by following a specific workflow on HMRC's website.
- **Bulk Transfer Workflow Example**
> Agents can transfer self-assessment authorisations from their old account to a new account by following HMRC's online workflow, which involves entering various required details.
1. Log into HMRC's website and access the workflow for transferring authorisations.
2. Input all necessary details as prompted.
3. Complete the process to collectively migrate the self-assessment authorisations.
### 11. Configuring Tailored Checklists in Engager
- **Key Points**
- Checklists can be assigned to individual client records rather than every client service.
- Users can import sections from other services to build a custom checklist.
- Tailored checklists can be activated for a client and later deactivated if needed.
- **Explanation**
During the class, Johann illustrated how to add a checklist for a specific client. By navigating to the client page in Engager, users can access the tailored checklist section, create a new checklist (such as for charity accounts), import sections from other checklist versions, and save the new checklist. This allows the checklist to be customised for that client alone.
- **Creating a Custom Checklist for Charity Accounts**
> For a client (e.g., 'clear your mind limited'), a bespoke checklist for charity accounts was created by importing sections from the year-end accounts checklist, adding additional sections if needed, and then saving this as a tailored version.
1. Navigate to the tailored checklist section on the client's page.
2. Click on 'create' and choose the appropriate service (e.g., charity accounts).
3. Import checklist sections from an existing service and add further sections as desired.
4. Save the new tailored checklist version for that specific client.
### 12. PAYE MTD Authorization Process
- **Key Points**
- Access the HMRC PAYE CIS section within settings.
- Agent ID (typically four or five characters) and corresponding password are required.
- The Government Gateway ID is needed along with the correct agent reference.
- PAYE office reference and case codes must be entered in uppercase.
- No letter code or duty start date is required for PAYE.
- **Explanation**
Johann walked through the steps to register for PAYE. In the Engager system, users must navigate to the HMRC PAYE CIS settings, enter their agent ID, Government Gateway ID, and password, then input the PAYE office reference (ensuring it is in uppercase). Once completed and verified, the request for authorisation is sent. This process tends to be straightforward compared to the VAT MTD authorisation.
- **PAYE Authorization Setup Example**
> Fiona experienced issues with PAYE MTD setup until she followed the instructions: entering the agent ID, keying in the Government Gateway ID with the correct password, and ensuring that the PAYE office reference was in uppercase.
1. Access the 'HMRC PAYE CIS' settings in the system.
2. Input required details: agent ID, Government Gateway ID, and password.
3. Make sure to enter the PAYE office reference in uppercase before submitting the authorisation request.
### 13. Sending Proposal Emails with Letter of Engagement
- **Key Points**
- Record the prospect details and mark them as 'prospect' in the system.
- Turn the prospect into a client by activating their services and setting their fees.
- Generate a letter of engagement which is then attached to the proposal email.
- Once the client signs the letter, their status is automatically updated to active.
- **Explanation**
Johann demonstrated the workflow in Engager where a prospect is first entered into the system and then updated with the necessary fees and services. After that, a letter of engagement is generated and sent as part of the proposal email. The client receives an email with a signer link; once they sign the letter of engagement, their status is automatically changed to active.
- **Proposal Email Workflow Example**
> A prospect is first saved in Engager, then transformed into a client by assigning relevant services and fees. The letter of engagement is generated and emailed out. The client clicks on the signer link, reads the document, signs it, and consequently, their client status changes to active.
1. Save prospect details in the Engager system.
2. Assign services and fees to the prospect to prepare for conversion.
3. Generate the letter of engagement and send the proposal email.
4. Client signs electronically to finalize activation.
### 14. Utilizing ChatGPT for Email and Content Creation
- **Key Points**
- ChatGPT can generate email content in under 30 seconds.
- It can be used to inform clients about changes such as the new Company House verification process.
- ChatGPT assists with deeper research and content planning, such as creating a complete blog structure.
- **Explanation**
Johann demonstrated the power of ChatGPT by using it to quickly draft an email regarding the new Company House verification process. By entering a simple prompt, ChatGPT produced a full email draft nearly automatically. This tool also serves as an aid for creating blog structures and updating pricing guides, allowing firms to save time and effort in content creation.
- **ChatGPT Email Generation Example**
> Johann showcased how he opened ChatGPT, typed a prompt regarding the new Company House verification process, and received a complete email draft in under 30 seconds. He then verified the content before sending it.
1. Open ChatGPT and input a detailed prompt about the changes in Company House verification.
2. ChatGPT processes the prompt and returns a comprehensive email draft.
3. Review and adjust the generated email as necessary before distribution to clients.
### 15. Pod System and Client Manager Filtering in Engager
- **Key Points**
- Firms are moving to a pod system where each pod has a designated client manager.
- Query raised regarding filtering jobs by pod instead of just by client.
- Recommendation to assign a lead person in each pod to act as the client manager.
- Filtering by the client manager field enables sorting jobs effectively by pod.
- **Explanation**
In response to questions about filtering jobs by pod, Johann explained that if each pod has a designated client manager, then filtering can be done by that manager in the Engager system. This method allows for more precise sorting and management of jobs. Victoria's situation was used as an example to drive home this point.
- **Assigning a Pod Leader Example**
> Victoria experienced issues filtering jobs by pod. Johann advised that every pod should have a single designated client manager, so that filtering by the client manager field would effectively group clients by pods.
1. Examine the pod structure within the firm.
2. Assign one client manager as the lead for each pod.
3. Configure Engager to use the client manager field as a filter for pod-related job assignments.
### 16. Scheduling the AI and ChatGPT Webinar
- **Key Points**
- Webinar topic will cover AI and ChatGPT applications in the accounting industry.
- Initial plans are in place, but scheduling conflicts such as conferences or account tech events may delay the event.
- Worst-case scheduling scenario is set for July, as June is unavailable due to travel commitments.
- **Explanation**
Johann mentioned that while a webinar on AI and ChatGPT is planned, various time constraints like account tech events and conferences may force a reschedule. Although he has most of the content planned, his busy diary might push the webinar to July in a worst-case scenario.
- **Webinar Scheduling Scenario**
> Johann indicated that due to commitments in June (including travel), the AI and ChatGPT webinar might be postponed to July if it cannot be slotted into his schedule.
1. Initial content for the webinar is largely prepared.
2. Time constraints from other professional commitments are influencing the scheduling.
3. The fallback plan is to hold the webinar in July at the latest.
### 17. HMRC Branding and Trademark Restrictions
- **Key Points**
- Firms are not permitted to display the HMRC logo.
- Using the official HMRC logo without qualification breaches trademark rules.
- Firms must create their own variations of the HMRC badge instead of using the official one.
- **Explanation**
Johann warned that despite being authorised HMRC agents, firms cannot display the official HMRC logo on their digital platforms. Instead, they need to create a custom version to comply with HMRC's strict trademark and branding rules. This guideline is crucial to avoid any legal issues regarding trademark infringement.
- **Branding Guidelines Example**
> The discussion highlighted that while agents may be registered with HMRC, they must avoid using HMRC's official logo on their websites or promotional materials and instead use a modified version designed in-house.
1. Official HMRC logos are restricted from public display.
2. Firms must design and use their own variations to remain compliant.
3. This measure helps avoid trademark breaches related to HMRC's trade marks.
### 18. Service Checklist and Engagement Procedures
- **Key Points**
- Changing the Director's name (e.g., to 'pod one') in the Engagement letter may appear unprofessional.
- Checklist additions or changes are not visible on the current job if the job has already been generated.
- Any changes made to a checklist will take effect only on the next occurrence of the job (for example, a weekly payroll job updated today will only reflect the new checklist for next week’s occurrence).
- **Explanation**
During the class, Johann explained that certain adjustments such as a wrong director name in a letter of engagement can create issues later. He stressed that checklists must be managed carefully, pointing out that any changes will not impact the current job instance but only future instances upon their next occurrence. This ensures that both the workflow and client service remain consistent and professional.
- **Weekly Payroll Checklist Change Example**
> Johann provided the example of a weekly payroll job. He explained that if a checklist is altered today, it will not affect the payroll job currently available but will be applied to the job in the following week. This illustrates the timing and impact of checklist adjustments within the workflow system.
1. The checklist for a weekly payroll job is updated only after the current job is completed.
2. This design ensures that service delivery remains stable for jobs already in progress while future tasks benefit from the update.
### 19. MTD (Making Tax Digital) Implementation, Client Grading, and Webinar Strategy
- **Key Points**
- Clients will be graded at the end of each month based on the 23 24/24 25 tax returns.
- The grading will help determine which year a client will be impacted and facilitate effective communication.
- There are plans for approximately five new webinars focused on different aspects of MTD implementation.
- Webinars will cover topics such as the MTD workflow, bookkeeping integration, support packages, and software solutions with partners like Free Agent and Zen.
- Fee structures are under discussion, with some businesses planning to charge between £10 and £20 per month, leading to a quarterly fee of £30 to £60, while others may charge up to £120 or nothing for the annual return.
- **Explanation**
Johann discussed how the MTD approach will involve monthly client grading based on tax returns and the integration of multiple webinars to assist users in understanding MTD operations and workflows. He underlined the variability in fee structures for MTD income and expense submissions, comparing it with VAT processes where fees might be spread over the months. The webinars are designed to offer different perspectives and detailed instructions on adapting current workflows for MTD, ensuring participants have plenty of resources and expert insights.
- **MTD Fee Structuring Example**
> Johann explained a fee structuring method where, for instance, a client might be charged £40 per month for a VAT-like service. However, since this service is performed only four times a year, the effective charge becomes £120 per quarterly submission. In other scenarios, fees may range from a monthly charge of £10 to £20, accruing to £30 to £60 overall.
1. The example shows how fees can be averaged out over the year to make them more palatable to the client.
2. It also highlights that there is considerable variation in pricing schemes depending on the service provider.
### 20. Phased Client Assessment and Bridging Software Use
- **Key Points**
- Phase 1 involves 30 clients, of which 12 are already using software; the rest are set for transition.
- Phase 2 comprises 90 clients who will need to be educated about the new processes.
- Bridging software, such as that integrated with TaxCalc, is approved by HMRC and can be used to manage reluctant clients temporarily.
- Bridging software is compared to its use in VAT processes, noting that VAT bridging software remains allowed even after five years.
- **Explanation**
Johann emphasized that the client population is being divided into different phases to streamline the MTD implementation process. For clients in Phase 2, where education is required, bridging software serves as an interim solution. The discussion included a note on HMRC approvals, mentioning that while bridging software is a temporary measure, it is permitted similarly to VAT systems. This approach provides immediate relief for clients while planning longer-term solutions.
- **Bridging Software Example**
> An example discussed was the use of TaxCalc’s built-in bridging software, which can be deployed if clients are hesitant to adopt full MTD-compliant software immediately. This method acts as a temporary fix to keep clients compliant while they transition to the new technology.
1. Bridging software offers continuity in service when clients are not ready for full system change.
2. Its temporary usage aligns with current HMRC guidelines, just as similar measures were used in VAT processes.
### 21. Software and Tools Integration, Data Management, and Expense Cards
- **Key Points**
- Discussion on using Apron and QBE Ledger for in-house management, with Apron considering a self-employed ledger tool.
- Sarah's use of Dext Solo and integration of expense cards was highlighted, showing improvements in expense management.
- Data can be downloaded as a zip file maintaining the original folder structure, which is crucial for GDPR requests.
- Users have storage of 500 megabytes per client. For 5,000 clients, this totals 2.5 terabytes of data.
- Upcoming settings will include storage usage indicators to manage and potentially clear archived client data.
- **Explanation**
Johann detailed how integrating various software products such as Apron, QBE Ledger, and Dext Solo enhances operational efficiency. The file download capability ensures that both the client and the firm can manage large volumes of data in compliance with GDPR. Also, the introduction of expense cards is set to replace traditional reimbursement methods by standardizing expense workflows, which simplifies financial operations for businesses.
- **Expense Card Implementation Example**
> Paul mentioned that Apron is about to launch an expense card, allowing employees to directly use a company card for expenses instead of submitting claims for cash reimbursement. This also replaces older systems where separate claims had to be processed manually, thereby streamlining the entire process.
1. Switching to an expense card improves accuracy, reduces manual workloads, and speeds up the reimbursement process.
2. It also maintains better tracking of company expenses and integrates with software systems for real-time monitoring.
### 22. Deal Negotiation and Heads of Terms in Finance
- **Key Points**
- A potential deal was discussed where the client (Darren) accepts receiving part of the money upfront, with the remaining amount deferred.
- A clause is proposed in the SPA stating that if financing is delayed, the balance will be paid within four months of completion, and if not, shares may be recalled.
- Discussion included considerations on current EBITDA versus potential future growth, comparing an immediate payout (e.g., £7.1 now) with a potential upturn leading to up to £8 million in value in three years.
- Heads of Terms are being drafted to define the new deal structure and will involve input from solicitors and lenders.
- **Explanation**
Johann explained the negotiation strategy where a client is encouraged to accept a deal that involves a blend of immediate cash and deferred payment. This offers a way to secure current funding while protecting lenders through a clause that triggers a recall of shares if financing is delayed beyond four months. He also discussed the strategic trade-off between cashing out now versus waiting for potential EBITDA growth, effectively reducing immediate tax burdens and preserving business value.
- **Deferred Payment Clause Example in the Deal**
> In the negotiation, Darren was offered a solution where he’d receive an upfront cash sum with the SPA including a clause that mandates the remaining payment within four months. If financing issues occur and Jamil does not pay within that time, the clause allows the recall of shares, thus protecting Darren's investment.
1. This structure mitigates risk for the lender by ensuring there is a clear, enforceable timeline for the deferred payment.
2. It also provides the client with immediate liquidity while keeping the door open for potential future gains based on EBITDA improvements.

> **AI Suggestion**
> - The core of this lesson is understanding Workflow Automation for Self-Assessments and Tax Returns. It's recommended to start with a hands-on exercise where you design an automated email and questionnaire campaign. Begin by outlining a workflow and simulating client interactions to see how response rates can be increased.
> - Core content of Workflow Automation for Self-Assessments and Tax Returns: An improved workflow using timely questionnaires and automated emails to boost client responses, demonstrated by a 17.5% to 30% response increase.
> - Additionally, here are some extracurricular resources:
> - Practical application of Workflow Automation for Self-Assessments and Tax Returns: https://example.com/automation-workflow
> - Alternative perspective on Workflow Automation for Self-Assessments and Tax Returns: https://example.com/email-automation-tips