At Lugo, we specialise in supporting accountancy firms with IT services tailored to their unique compliance needs. Recently, we attended the IRIS webinar, Turning Busy Season Challenges into Growth Opportunities, which brought together industry leaders to share strategies for navigating the busiest periods in the accounting calendar. This article explores the key lessons shared by Lucy Cohen (Mazuma), Helen Morris (Companies House), and Gill Thomas (HMRC) and highlights how these insights align with Lugo’s expertise in IT support, cyber security, and strategic planning for Scottish accountancy firms.

Setting Boundaries with Clients

Lucy Cohen, co-founder of Mazuma, spoke about the importance of clear boundaries during busy periods. She explained that sticking to deadlines and managing client expectations reduces stress and helps firms deliver consistently high-quality work. By being upfront about terms and conditions, firms empower their teams to push back against last-minute demands.

This resonates strongly with accountancy firms balancing high workloads during critical periods like January tax deadlines.

Takeaway: Establishing strong processes is as important as setting client boundaries. With support from Lugo, accountancy firms can automate routine tasks like client reminders and compliance tracking, allowing your team to focus on higher-value activities without compromising deadlines.

Navigating Changes in Compliance: Companies House Updates

Helen Morris from Companies House discussed how the Economic Crime and Corporate Transparency Act is transforming compliance requirements. Key Changes from Companies House include:

Mandatory Software-Based Filing

• Filing company accounts will require the use of HMRC-approved third-party software.
• Paper filing and some existing online services (e.g., Companies House web filing) will be phased out, with limited exceptions.
• The joint filing service with HMRC, Company Accounts and Tax Online (CATO), will also no longer support account filings.

Profit and Loss Account Requirements

• Small and micro-entity companies will now be required to file full profit and loss accounts, removing the current option to file abridged accounts.
• This change aims to improve transparency and ensure more accurate financial data on the register.

Enhanced Audit Exemption Statements

• Companies claiming audit exemptions will need to provide an enhanced statement detailing:
• The exemption being claimed.
• Confirmation of the company’s eligibility for that exemption.

Additional Filing Measures

• Component parts of filings (e.g., accounts, supporting documents) must be submitted together as a single instance filing, avoiding fragmented submissions.
• New rules will limit how often companies can shorten their accounting reference periods to prevent misuse of this feature.

Implementation Timeline

• Changes will be introduced gradually, with extensive notice periods to help businesses and accountancy firms adapt.
• The staggered approach allows for:
• Necessary software development by both Companies House and third-party providers.
• Legal and procedural readiness for firms.

Helen emphasised that these updates aim to improve trust in the data on the Companies House register, but they also demand greater use of digital tools and systems from accountancy firms. See more information here: https://changestoukcompanylaw.campaign.gov.uk

Takeaway: Accountancy firms need secure IT systems to adapt to these changes. Lugo ensures your telecommunications are ready to handle the shift to digital compliance, providing seamless integration with the latest software and ensuring secure, efficient operations.

Preparing for Making Tax Digital

Gill Thomas from HMRC outlined the timeline for Making Tax Digital for Income Tax (MTD ITSA), which will soon become mandatory for many businesses. Here’s a summary of her key points:

Mandatory Rollout Timeline

• From April 2026, self-employed individuals and landlords earning over £50,000 will need to use MTD-compliant software.
• From April 2027, this will extend to those earning over £30,000.

Voluntary Enrolment Encouraged

• HMRC encourages businesses to join the voluntary testing programme now. This allows firms to familiarise themselves with the system, test processes, and provide feedback during the trial phase.

Core Requirements

• Businesses and landlords will need to use HMRC-approved software to keep digital records and submit quarterly updates.
• A final end-of-year submission will consolidate the quarterly updates for accurate tax reporting.

Benefits of Early Adoption

• Reduced errors in record-keeping and submissions.
• Streamlined compliance processes for both accountants and their clients.
• Access to HMRC’s dedicated support during the testing phase, with no penalties for late quarterly updates.

Preparing Now

• Gill stressed the importance of being proactive. Waiting until the last minute to implement changes could cause disruption, whereas starting early ensures a smoother transition.

Gill strongly encouraged accountancy firms to join HMRC’s voluntary MTD ITSA testing programme early to understand the process and gain hands-on experience: https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax

Takeaway: MTD isn’t just about compliance—it’s an opportunity for firms to embrace digital transformation. Lugo helps accountancy firms implement and secure cloud-based systems that align with MTD requirements, making the transition seamless for your team.

Harnessing Technology to Reduce Workloads

A key theme across all speakers was the role of technology in reducing manual workloads and improving efficiency. Lucy Cohen shared how automation has allowed Mazuma to scale without adding stress, while Gill Thomas and Helen Morris highlighted the value of integrating systems to streamline compliance tasks.

Takeaway: Automation isn’t just a buzzword—it’s a necessity. At Lugo, we specialise in implementing technology solutions that reduce repetitive tasks, such as Microsoft Copilot to take advantage of secure artificial intelligence, Microsoft SharePoint for secure file sharing and collaboration with clients. This helps accountancy firms stay agile and focused, even during peak times.

Proactive Planning for Long-Term Success

One of the most powerful lessons from the webinar was the importance of being proactive. As Helen Morris noted, waiting until systems “crumble” before acting adds unnecessary stress and cost. Early preparation ensures smoother transitions, whether adapting to regulatory changes or upgrading internal systems.

Takeaway: Lugo’s Technology Alignment service helps accountancy firms stay ahead of the curve. By identifying potential IT bottlenecks and addressing them proactively, we ensure your firm’s systems remain reliable, secure, and ready for the future. We’ll work with you to ensure sensitive client data is secure and compliant with GDPR and other regulations, utilising tools such as Microsoft Intune.

Why Partner with Lugo?

The insights from this webinar highlight the importance of having reliable IT systems that support, not hinder, your firm’s operations. As ICAS Partners, we speak the same language as accountants. We understand the pressures of tax season, the complexities of compliance, and the importance of trust and efficiency in your work.

Stay ahead of regulatory changes with IT solutions designed specifically for accountancy firms. Whether it’s preparing for MTD ITSA or adapting to Companies House filing updates, Lugo ensures your systems are secure, compliant, and stress-free.

With over 20 years of experience in IT support, cyber security, and strategic planning, Lugo provides solutions designed specifically for the unique needs of accountancy firms. Our approach isn’t just about technology—it’s about understanding your workflows, your challenges, and your goals. We’ll help you create an IT environment that supports your team, enhances productivity, and ensures compliance at every step.

We are the trusted IT partners for more accountancy firms in Scotland than any other technology company—we’re even open to support our clients every weekend throughout January, sharing the LugoLove!

Final Thoughts

Busy seasons are challenging, but they also present opportunities for growth. By embracing automation, adapting to compliance changes, and planning ahead, accountancy firms can turn these periods into a competitive advantage. With Lugo as your IT partner, you can focus on delivering exceptional service to your clients while we handle the technology behind the scenes. Wouldn’t you like your firm to be confidently prepared for digital compliance change?

Ready to level up your IT strategy? Visit Level Up with Lugo: Technology Alignment to learn more.

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