technology – connectivity 15


Accountants who understand millennial mindsets


‘Why are you based in Reading?’ It was a daft question to ask the MHA MacIntyre Hudson team, writes John Burbedge


Why wouldn’t you base your specialist technology sector business advisory and accountancy team in Reading? After all, Reading is the number one UK tech cluster*.


Also, the UK tech sector has displayed sustained growth in recent years and the Thames Valley, with Reading at its heart (plus Wokingham, Slough, Bracknell and Basingstoke among the top 10 UK local authority tech clusters*), is a powerhouse of the sector.


Fortunately, audit and financial due diligence partner Jason Mitchell, corporate tax partner Chris Denning, employment tax partner Chris Blundell, and expatriate tax director Phil Partington, the four main technology expert advisers of MHA MacIntyre Hudson’s sector-dedicated team, treated me gently.


They simply highlighted the vibrant and varied nature of Thames Valley technology, and their personal satisfaction in having a professional input to the region’s success.


Their business growth has been largely achieved through referrals and retention – strong client relationships allied to astute advice, sector knowledge and accountancy skills.


“We are different because of our dedicated technology sector approach and the scope of Thames Valley tech companies that we work with daily, which gives us informed insight,” said Blundell.


“Plus, we provide a genuine partner-led, quick response range of services, and while some people talk about building client relationships, we actually do, and maintain them,” said lead partner Mitchell.


The colleagues know the Thames Valley and London technology and supportive professional services communities very well, having lived and worked locally throughout their careers. For example, Mitchell and Denning have 25-year accountancy careers, and formerly ran a boutique accounting firm for Henley dealmakers HMT.


“We are different because we know what is required to run a successful company today, and importantly we understand the entrepreneurial mindsets of millennials forming and growing tech businesses,” said Mitchell.


“There is a whole raft of things we can advise upon – revenue recognition, R&D capitalisation, share options, M&A, etc – based on our personal and professional experience,” added Denning.


“We are used to dealing with small nimble businesses, expanding rapidly and operating overseas early in their life-cycle. We know the challenges they’ll face and how and when the advice they need should be delivered. We operate


THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2016


close enough to understand those businesses as they grow,” said Partington.


Through its Baker Tilly International global links the team can deal with tech client matters throughout the world. This scalability enables both a full ‘cradle to grave’ business service, and a lower cost-base that suits its SME and mid-market clients.


Not surprisingly, with its technology focus the team utilises cloud-based tech platforms and systems to help itself and its tech clients overcome the challenges of today’s 21st century business world.


Thames Valley tech sector challenges tend to mirror those of most business sectors – attracting and retaining talent; gaining suitable funding; red-tape and bureaucracy; international trading; and Brexit uncertainty. The big difference, they say, is that those challenges are heightened within the fast-changing tech sector.


While early-stage funding is still hampered by the intangibility of tech IP and market values, plus the disruptive nature of technological advance, the four agree that the underlying challenge is to understand and embrace the millennial mindset.


Millennial generations are now setting up their own businesses, sometimes in their teens, with little or no previous business experience. Their digitally-aware talent and creativity often belies a lack of knowledge of the three Ms – money, market, management, notes Denning.


Most also want a fast business set-up, growth and profitable exit within 2-3 years, adds Mitchell.


And, the Internet-linked businessworld today, rapidly exposes them to trading, taxation and legislative issues, says Partington. “By virtue of our Thames Valley location a lot of our work involves inbound and outbound activities, and various international jurisdictions.”


Millennials are becoming key employees, but can be difficult to retain and engage. Employment packages now need far more reward variety, or are tailored for key employees, so provide more tax and bureaucracy headaches for employers. Stock options are now ‘de rigeur’ says Blundell. “Managing millennial expectations is key.”


Add in the challenges faced by non-millennial tech business owner-managers still battling regulatory requirements such as RTI and pension auto-enrolment or seeking the benefit of Patent Box and R&D allowances, and the increasing need for professional advice and practical assistance becomes clear.


And Brexit or Bremain? Well, tech companies are used to disruptive change, aren’t they?


Fortunately, the MHA MacIntyre tech-focused team understands millennial mindsets, the rigours of ‘traditional’ business practices ... and, based centrally in Reading, is on the Thames Valley doorstep.


* TechMonitorUK, compiled for KPMG by Markit, December 2015.


Details: Reading office 0118 -9503895 ReadingofficeInfo@mhllp.co.uk


The Reading-based tech sector team, from left, Phil Partington, Chris Denning, Chris Blundell and Jason Mitchell


businessmag.co.uk


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