Accounting support from social media and AI might seem helpful at a time when people are looking to bring down costs, as it is effectively free.
However, there is a hidden cost to not seeking professional advice that is felt by most of the people who listen to other sources of information.
With the Autumn Budget on the horizon, knowing where to go for reliable support is more important than ever.
Is listening to social media accounting advice dangerous?
In all honesty, listening to any form of advice on social media carries an inherent risk that must be managed carefully.
If you want to know how easy it is to offer advice on anything on social media, simply pull out your phone and start recording yourself giving a speech on astrophysics or any other topic you are not an expert in.
There is currently no provision for verifying whether something is truthful or accurate on social media, though there are some sites that implement some form of community notes to offer insight into potentially misleading content.
However, this will not catch every piece of advice that is being put out there and many adults in the UK are suffering the effects.
Research conducted by TSB found that while only 32 per cent of the people they asked had acted on financial advice from social media, 56 per cent of them had lost money as a result.
The average loss experienced by these people was £700 – the equivalent of around five months of energy bills for the average UK household.
Understandably, 59 per cent of those who acted on financial advice from social media regretted doing so, indicating that even some who did not make a loss were still not happy with the outcome.
While only 24 per cent of people had actively used AI for financial advice, 51 per cent would not know if advice given was generated by AI.
AI financial advice is likely more precarious than that given by misinformed people, as AI endeavours to make responses sound legitimate even when it has made up the information.
In some instances, the research noted that social media content had led to investment fraud that cost over £3,000.
What is the value of an accountant’s advice?
Getting professional accounting support is the most effective way to have control of your financial situation.
It is worth noting that the research only considered the outcomes of financial advice in the past 12 months, meaning that those who did not report a loss might have one looming on the horizon.
Speaking of things that are imminent, the Autumn Budget is due to be revealed on 28 October and there will likely be a wave of additional advice given on social media before and after it.
As the decisions made during these times will have a profound impact on the finances of businesses and individuals, it is vital that this is based on legitimate advice.
Accountants take the time to consider each piece of legislation and guidance, considering the ways that they interact to determine effective approaches suited to the needs of individual clients.
Our team can work with you to understand your tax exposure and the way in which your unique financial situation might be impacted by changes introduced in the Autumn Budget.
HMRC will penalise those who make mistakes or are seen to be trying to avoid responsibility, so knowing that you are fully compliant can save you from having to pay fines and reduce the stress you feel when trying to guess what needs to be submitted.
As such, the true value of accountant support cannot be fully measured, as it encompasses a mitigation of penalty risk, a more efficient approach to tax and ongoing support with budgets and financial forecasting.
Keep social media casual and get in touch with our team for accounting support you can trust.
