By Marianne Curphey ApprenticeshipsSix changes to the Accountants or Finance Assistant apprenticeship standard14 Aug 2024 The Level 2 Accounts or Finance Assistant apprenticeship standard has been refreshed after five years. Here’s what you need to know about version 1.4.This article discusses the refreshed standard and its implications for AAT students and employers. It includes updated guidance on the new skills and knowledge needed around business awareness, office etiquette and communication skills, and a new end-point assessment that aligns directly with the AAT Level 2 qualification.The new standard for the Level 2 Accounts or Finance Assistant occupation and end-point assessment (EPA) plan went live on 1 July.The standard has been refreshed to ensure the candidate must pass the AAT Level 2 qualification to complete the apprenticeship qualification. That’s to avoid potential issues around students passing one but not the other.There are three qualification routes available:via AAT,via The Institute of Certified Bookkeepersand via the Institute of Accountants and Bookkeepers.The biggest change to the Accounts or Finance Assistant occupational standard is around the end-point assessment (EPA). The update also accounts for modern methods of communication, changes to working practices, flexibility and inclusivity, professional dress standards, business and office culture and sustainability awareness.Why was the update needed?The apprenticeship is considered the entry-level apprenticeship for the accountancy sector, and is relevant to those working in both practice and industry. The apprenticeship standard covers a wide range of roles in different sectors and industries, from smaller firms to large employers. Roles includecarrying out accounting and finance tasks,creating financial statements,data entry,reconciling figures,double-entry bookkeeping,and handling accounts payable and receivable. Completion of the standard lays a solid foundation for a successful career in accountancy. It develops essential knowledge, skills and behaviours that pave the way to progression in further levels of learning and increased responsibility and role in the workplace.The benchmark for the new standard was developed by the Institute for Apprenticeships and Technical Education (IFATE) in consultation with members of IFATE’s Trailblazer group. Samantha Vigus, Partner at Mitchells Chartered Accountants, is chair of the AAT Level 2 Trailblazer Group and says it took a year of discussions and debate to update the standard. Trailblazer groups help develop occupational standards in association with feedback from employers, students and training providers. This means that the standard is specifically designed to meet the needs of employers and students.“We were refining and updating the 2019 standard to bring it up to modern standards and incorporate new working practices,” says Samantha. “The AAT Level 2 accounting course is a great starting point and a highly valued apprenticeship for young people and career changes who want to get into accountancy. This means it is popular and a high number of students start the course annually. We wanted to ensure the standard reflects this.”Main changes to the apprenticeship standard1 It aligns the end-point assessment (EPA)Previously, learners would need to achieve the mandated qualification pre-gateway and then sit a structured interview and in-tray test. Now, with the support of IFATE’s integration policy, one qualification is held back and is assessed as part of the end-point assessment. This final qualification is taken after the structured interview. This ensures that learners complete the end-point assessment, which makes the EPA more appropriate for the level of learning.Samantha says: “The assessment will be more streamlined and aligned with the Foundation Certificate in Accounting (for AAT students this is Level 2). This avoids a potential scenario where the apprentice passed their AAT Level 2 but did not complete the apprenticeship. That was bad for training providers, because it was showing on their records that they had a number of people that hadn’t finished the apprenticeship, and it was bad for the students, who had an incomplete qualification.”2 The qualification is future-proofedThe standard recognises there is now a greater emphasis on the role of technology in accounting. It defines the duties of the assistant accountant as being able to “Use finance and accounting software packages to accurately input and manage data to contribute to routine accounting tasks. Handle data and digital technology in line with cyber and data security requirements, using data securely and safely, including backing up data.”Samantha says: “We have future-proofed the skills, knowledge and behaviours to reflect the new requirements around using financial and accounting software, cyber security and data security. While we want to incorporate this into the qualification, we also made sure that for employers we were covering the essential basics such as double entry bookkeeping, which will then give them the skills to move forward onto future AAT levels as well.”3 Communication skills and behaviours are updatedIn the five years since the standard was last defined, much has changed in the way we work and communicate. Especially around remote working, virtual meetings and using more informal channels – which bring their own benefits and risks.The new standard requires students to use “language tailored to the audience and different media methods with an appreciation of the risks and benefits to the business of social media and other digital applications.”Samantha says: “Back in 2019 it was unlikely that you would communicate with your boss via text, but things have changed. Whether it is an email rather than a formal letter, or a text rather than a phone call, methods of contact have changed, so we needed to adjust the standard to reflect that.”In addition, the standard says apprentices need to: “Communicate with internal and external stakeholders using appropriate methods and professional language. Examples may include letters, phone, face-to-face, e-mail, video call, online chat functions etc.”4 Duties of the apprentices are clearly definedAccounts apprentices carry out accounting and finance tasks. These tasks support creating items such as financial statements and other data. While much of their work is supervised, they will be expected to understand how to reconcile, do double-entry bookkeeping, and handle accounts payable and receivable. Among the duties that the standard sets out are:“Rectify errors in financial and accounting data,escalate problems beyond their remit as appropriateand reconcile transactional data to minimise the chance of errors in financial and accounting outputs such assale and purchase invoices,sale and purchase orders,bank statements and payroll.”Apprentices will also need to plan and review their workloads with their supervisor to ensure accuracy and efficient use of time.5 Diversity and inclusion are built-inModernising the standard means recognising that understanding ethics, diversity and sustainability are key components of accountancy training.The standard requires knowledge of the “Principles of corporate social responsibility (CSR), ethics and sustainability regarding finance and accounting. Approaches to diversity, inclusion and cultural awareness and their impact on finance and accountancy activities.”Samantha says: “It is about using inclusive and appropriate language, learning about appropriate dress and behaviour, and showing pride in their work. We had a lot of discussions around dress code. Back in 2019, appropriate dress for an accountant would probably have been a suit, but life has moved on. In the end, we said it was about demonstrating personal pride in the job through appropriate dress.”6 Employers have been consulted throughoutThe role of an accountant has changed over the past 60 years and will continue to evolve and develop. Employers have been a key part of the consultation process for the new standard as they are the ones who are helping to shape the new generation of accountants as they work and study on the job.Samantha says: “The apprentices will have a variety of roles depending on where they work. In a small firm, an AAT Level 2 accounting apprentice will have lots of different tasks, whereas in a large specialist firm their focus may be narrower.“Having lots of employers in this discussion helps because it gives us a diverse group from which to draw views and feedback. We had feedback from student groups, and from the training providers who could see each cohort of new students as they arrived. We also had input from the Institute of Certified Bookkeepers, and the Institute of Accountants and Bookkeepers.”Further informationFollow this link to read the new Assistant Accountant standard, which became active on 1 July. Marianne Curphey is an award-winning financial writer and columnist, and author of the book How Money Works. She worked as City Editor at The Guardian, deputy editor of Guardian online, and has worked for The Times, Telegraph and BBC.