Toolkit for leading your team through restructure and change Posted 10/19/2020 by Annie Makoff & filed under Leadership, Members. The following is a companion guide to Duncan Brodie’s webinar on Leading your team through restructure and change. The pandemic has brought about significant change across firms and businesses. Many AAT members will face dealing with redundancies or restructuring within their organisation. Change is difficult, there’s no doubt about it. It can bring up a myriad of different emotions and reactions in people and within teams. Some embrace it, while others may shy away. Based on the Kubler-Ross Change Curve Model, there are seven key stages that individuals encounter when navigating change, which you need to be aware of as a manager. Webinar: Leading teams through change Change isn’t optional. And it’s not easy either. But as a manager you can have a big impact – learn more in this member’s webinar.on success. View webinar Seven stages you need to be aware of 1. Shock An individual may experience shock at the sudden change or announcement. Often, they will be so focused on the uncertainty, performance and productivity will suffer. 2. Denial Many individuals experience a real sense of denial in the early stages. They may convince themselves the problem will go away or it’s not as bad as they first feared. Others may simply bury their head in the sand and act as if nothing has happened. 3. Frustration Some individuals may display a lot of anger and frustration. An otherwise calm and measured employee may become short tempered or snappy. It’s important to remember that this behaviour change is an entirely normal: the anger isn’t personally motivated – it’s driven by their frustration at being unable to control events. 4. Depression An individual may become depressed once they begin to understand the situation and their productivity and motivation may suffer. They may feel worthless and have a bleak or defeatist outlook. Although this is the low point in the change curve, things begin to improve once an individual has moved on from this stage. 5. Experiment At this stage, individuals are willing to try and adapt to the new situation and find different ways of living or coping with the change, albeit slowly. They may feel more receptive to change and what it may bring. 6. Decision This stage can be the catalyst which helps individuals move forward. They may want to make positive decisions about themselves and their situation. If they’re facing redundancy, they may decide their next steps or work out some personal goals to focus on. 7. Integration Change has been assimilated and individuals and teams have accepted the new normal, integrating the new way of working into their everyday lives. In summary…. “The Kubler-Ross Change Curve Model which these seven key stages are based on, has gained a lot of traction in the change world,” says Duncan Brodie FCMA CPCC who reinterpreted the model for the AAT webinar Leading People and Teams Through Change. “But it’s important to remember that these stages are not linear. You may go back and forward between the different stages in this process.” Recongising where your team are will help you respond effectively. So how can managers help support individuals and teams who are presented with change and upheaval? 10 ways managers can support their teams Managers have a responsibility to support their teams, especially when going through a restructure or a period of significant change. Here are ten ways managers can successfully support their workforce: 1. Remember the purpose As a team, get back to basics and remind yourselves of your team’s purpose. Why does your team exist? What are you there to do? What contributions do you make to the organisation? This can be key in helping to give meaning and value to an individual’s role and that of the team. 2. Set goals Common goals give teams purpose and something to work towards. Set a small number of clear goals together as a team as you transition through change. 3. Create stepping stones Often, individuals can struggle to see the endgame and feel lost, but putting a few stepping stones in place – or milestones to aim for – can help build momentum and will give individuals the confidence to move forward together. 4. Communicate well Leaders and managers need to be really conscious about how they communicate with their teams. Some may simply ‘broadcast’ at team meetings and do all the talking while others give individuals an opportunity to air their views. The latter is really important: two-way communication is good communication, so give time and space for questions, thoughts and ideas wherever possible. 5. Be a good listener Listening is an essential key skill, but it’s not always valued as such. A manager who is a good listener is more likely to see higher levels of engagement and gain the trust and respect of their team. 6. Get people involved Involve your team as much as possible, particularly when making key decisions. Give them the opportunity to put their ideas forward and give their point of view. As Brodie explains: “if people feel they’ve been part of the decision-making process, they will be more willing to accept final decision. Involving people also helps them feel more in control and will bring a higher degree of commitment.” 7. Show empathy Showing empathy can really help teams through the change process. Unlike sympathy where you might feel pity or sadness for someone’s situation, empathy is the ability to see things through others’ eyes and understand how they might be feeling. A good leader will demonstrate empathy by listening and acknowledging, rather than making assumptions. Phrases like, ‘I understand why that’s a worry for you’ or ‘I understand what you’re saying’ can really help. 8. People before process Whichever changes you make within your team or organisation and whatever systems you have in place, if you don’t take your people with you, you won’t deliver change successfully. You need to win people over based on how you deal with challenging situations and your behaviour as a manager or leader. “You won’t get everyone on board straight away,” says Brodie, “but you need to be working towards getting the critical mass on board which is around 70 per cent.” 9. Accept the continuum It’s important to accept that people either embrace or resist change on a continuum. Some may jump on board immediately while others may put up barriers right until the last minute. There will be degrees of resistance and compliance at different stages – that’s just how it is. Accepting this will reduce the pressure on those leading teams through change. 10. Be patient There is a tendency to be overly optimistic around how quickly change can be delivered, but anything that involves people will always be a slow process. So be patient – things can’t always be changed in an instant.
Why new powers for the Small Business Commissioner won’t end late payment Posted 10/19/2020 by Phil Hall & filed under AAT news, Members, Policy, Prompt payment. On 1 October 2020, the Government published its consultation on increasing the scope and powers of the Small Business Commissioner (SBC). Here Phil Hall examines what lies beneath the headlines and what more could be done to address the long-standing problem of late payments. The latest in a long line of Government consultations relating to late payment was published earlier this month. Once again, many in the media have hailed the limited proposals for reform as much more than they are. Headlines on the proposals ranged from “Government crackdown” to “lifeline for small businesses” and “tough action” – all of which create the false impression that we are on the brink of solving the late payments issue once and for all. A more accurate, but admittedly less attractive, summary of the underwhelming measures would be “steps in the right direction.” The main proposals are that; the Commissioner’s complaints handling function should be extended to allow for small business to small business disputesa new “review and report” function should be introduced, unrelated to payment problems but instead focusing on other small business issuesthat the Commissioner should have the power to impose a financial penalty when a business does not comply with a monetary award and/or payment plan There are one or two other more limited proposals relating to powers that should have been given to the SBC at the outset, such as the power to compel respondents to provide information and making investigation costs recoverable. Small business complaints AAT is broadly supportive of the proposal to widen the scope of the SBC to include small business to small business complaints but cautions that this should only occur if the SBC’s office is given significantly increased resources to enable it to undertake such work. According to its latest Annual Report, the office of the SBC currently has only eight staff, excluding the SBC, which is unlikely to be sufficient to cope with potentially hundreds, if not thousands of additional claims from the small business community. Furthermore, all eight staff members are recruited as secondees from other Government departments in the public sector. This doesn’t provide the certainty necessary for complainant confidence or for long-term planning and needs addressing if the SBC is to open itself up to dealing with many more complaints. “Review and report” Conducting regular reviews of wider business practices, unrelated to payment matters, that are specifically impacting small businesses, would be most welcome. This is because there are many issues affecting small businesses that require action. In its consultation, the Government gives the example of the effect of relevant legislation, policies and practices in creating barriers to the adoption of payment technology, but there is obviously much more, including tax and training issues specific to the SME sector. The proposal that the Commissioner would provide a report with recommendations to the Secretary of State is also a positive development, but its importance should not be overstated. Such reports will not be binding and so the Government will remain free to reject any proposals it deems too politically difficult or sensitive. There is a clear precedent here in the form of the Office for Tax Simplification (OTS), tasked with reviewing various areas of tax by Government, reporting on those areas with a list of recommendations to the Chancellor and often seeing many of its recommendations ignored or rejected. Financial penalties Perhaps the most misreported section of the consultation, the application of financial penalties, will still not apply to companies who fail to pay their suppliers on time. Instead, the proposal is that fines may be levied where the organisation has failed to pay on time, failed to pay when asked to make payment by the SBC and then failed again when a binding monetary award or payment plan is not paid to the complainant within a specified timeframe. AAT has been calling for the SBC to have the powers to impose financial penalties since 2016 so naturally supports the proposals contained to do so, even though they apply only in limited circumstances. However, we continue to believe Government should go further and grant the SBC the power to penalise any firm that consistently fails to pay 95% of invoices within 30 days. Next steps AAT has long campaigned for three simple changes to the payment regime in the UK; For the Prompt Payment Code to be compulsory for large organisations (those employing more than 250 staff)For the maximum payment terms under the Code to be halved from 60 to 30 daysFor the SBC to have the power to impose financial penalties on those who persistently pay more than 95% of their invoices in more than 30 days The Government has previously rejected all three out of hand, despite YouGov polling showing 73% of MPs support AAT’s recommendations and having received widespread backing from the construction, accountancy, fashion and finance sectors, not to mention from many SMEs. Despite the apparent setback, AAT continues to campaign for these changes because of the strength of support, the belief that it’s the right thing to do, the huge problems late payments continue to create and the inadequacies of Government action to date. This appears to have had some effect. Postivie signs Last month, for the first time, the Government proposed halving the maximum payment terms under the code from 60 to 30 days as AAT has campaigned for over the past four years. Unfortunately it will only apply to small companies rather than all companies. Still, this will be a big help for many. Secondly, this month’s consultation sets out some powers to impose fines on late payers, albeit in limited circumstances and not going as far as we would like. So, given the direction of travel, we remain hopeful that Government will continue to make reforms and improvements that will ultimately result in significantly less late payments. It’s just frustrating that the pace of that change is not as quick as AAT, or any of those waiting for payment, would like.
How to start a job remotely Posted 10/14/2020 by The content team & filed under Students. If you are starting a new job soon, you may find yourself not being able to join your office in the traditional way – but instead facing the challenge of getting to know your new role, new manager, and new colleagues, remotely. Calum Fuller recently started his new role remotely as editor of AT magazine at Redactive Media Group. The interview process for his role had been conducted prior to lockdown and, by the time restrictions came in, everything was agreed and signed. “It’s an odd experience,” he says. “My employer was very accommodating and couriered a laptop out to me ahead of my start date, so it was just a case of making sure everything worked and ensuring I had the right software installed.” Calum says he did what he could to make things easier, such as introducing himself to key colleagues by email and video calls as early as possible, being as communicative as possible and being proactive in moments when he was unsure of what to do. “While it seems strange at first, you can take solace from the fact it quickly becomes second nature,” he explains. Here’s how to ensure a smooth start Arrange introductory chats When you start, reach out to your new colleagues and organise quick introductory phone or video chats. Your manager may organise these meetings for you, but if not, this is something you can easily do yourself. Make these chats regular, too – this will help you get to know your new manager, workmates and the company better. To encourage introductions, announce yourself as the new team member in any online meetings, communications or emails. 2. Find mentors and build networks Many workplaces implement “buddy” systems, where new starters are paired with colleagues that can help them navigate through their first few weeks or months. You can also be proactive and find your own buddy or mentor that can help you figure things out – this could be one person or even multiple people. Art Markman, author of Bring Your Brain To Work: Using Cognitive Science To Get A Job, Do It Well, And Advance Your Career, says that usually when you start in a new office, you’re more likely to develop these relationships slowly. However, when you start working for a company remotely, the faster you find people who will be helpful to you, the better. You will be able to become more productive a lot faster if you put some good mentors in place, Art explains. 3. Get involved Get involved as soon as possible with your new team. Whether that’s joining your team’s chat on WhatsApp or Skype, it will help you build rapport and get a sense of the social culture. It’s also important to ensure you are subscribed to your company’s internal communications, so you don’t miss out on any updates. 4. Ask for help when you need it It’s important to ask for help when you need it, so you are able to carry on with your work and not feel stuck. When you’re communicating with your manager and colleagues over Zoom or over the phone, it may be a bit harder for them to notice if you’re confused or if you’re struggling – so speak up and ask them to clarify. If you feel worried about bothering your new manager or workmates, or if you feel like you’re asking too many questions, keep a daily diary of any queries or issues to be resolved. Then you can bring up any questions you may have at an appropriate time, such as the morning meeting. Key takeaways Reach out to your new colleagues and organise quick introductory phone or video chats. This will help you get to know everyone better.Find a buddy or mentor that can help you figure things out. You will be able to become more productive a lot faster if you put some good mentors in place.Join your team’s chat on WhatsApp or Skype to get involved as soon as possible with your new team. It will help you build rapport.Keep a daily diary of any queries or issues to be resolved, then bring up any questions you may have at an appropriate time. Further reading: How to onboard staff in a remote teamRemote control: how to manage and motivate a virtual teamTips for moving from classroom to remote study
Social media mistakes that are costing you the job Posted 10/14/2020 by Georgina Fuller & filed under Job hunting, Students. 74% of employers will look you up on social media before hiring you. So before you post another ‘What kind of bread would you be?’ quiz, it’s time to career-proof your social accounts. Update your privacy settings for professional connections “If you want to keep your social media profiles personal, fine, but make sure your profile has the correct privacy settings. From holiday snaps, to your views on the latest Love Island, there’s a lot you may want to share socially, but not professionally,” advises Stephen Warnham, jobs expert at Totaljobs. Twitter and Instagram can be set to private, or not private, but Facebook offers some nuances. “[With Facebook,] you can set things to open or private to everyone except specific individuals. Very handy if you’d like to keep your professional and personal life separate,” says Warnham. Use the Mum and Dad test We heard from Divisional Manager Zoe Coy at recruitment agency, Macildowie : “The first thing we tell our clients is to run the ‘Mum and Dad’ test – if your parents wouldn’t be happy seeing the post, then neither will potential employers.” “This doesn’t just concern your posts and pictures, it’s everything, especially check-ins as employers will look at where you have been recently – so try to keep it clean.” This test may not be entirely reliable if your parents are rebellious outliers. In this case, substitute in a sensible, professional person instead. Use social media to network But the experts aren’t warning you off social media altogether. Gemma Dale, co-founder of The Work Consultancy and HR blogger says the number one mistake is not capitalising on social media opportunities. “This would include failing to have a professional social media presence such as a LinkedIn profile, or having one that is empty or dormant,” she says. “Sites like LinkedIn provide an excellent opportunity for personal branding, adding more information that can be submitted on a typical CV/application form and not doing so is a missed opportunity.” A professional headshot, complete profile and up-to-date CV is essential, Dale says. Think of your ‘brand’ Freddie Chirgwin-Bell, Marketing Executive at Morgan Jones recruitment, says you need to think of yourself as a brand, like Pepsi or Cadbury’s. “The importance of building a personal brand on LinkedIn has been talked about a lot but make sure that you are presenting yourself and your values in a manner that is attractive to the industry you are applying for,” he notes. “You are, essentially, trying to sell yourself. So think of yourself as a commodity and a brand and build that on social media so that you become attractive to potential employers and respected in your field.” A picture speaks a thousand words Even if your social media is private, your profile photo will be visible. So when making your all-important choice, factor in that potential employers will see this photo. And it will stick in their minds. James McDonagh, director of EMEA at Nigel Frank International recruitment, says: “If you find a candidate online and the image they’ve chosen to represent themselves is one surrounded by beers, it gives you a clear impression of them that can be difficult to shake.” “When you sit down in the interview and they’re dressed smartly, eloquently telling you about how reliable they are… all you can see is that image of them on the bar floor missing a shoe.” Stick to something neutral, McDonagh advises. “A photo in a professional setting or a headshot in front of a plain background works great for Twitter and LinkedIn.” Avoid politics and consider separate accounts “Always avoid posting anything controversial on politics or religion even if you think it’s a funny, off-the-cuff thought,” Coy advises. “Feel free to show your personality, especially if you’re lacking in the experience and hard skills departments as this can be a great way to secure a meeting, but one comment could jeopardise a potential interview.” If you want to comment about politics and newsworthy items, consider making separate Twitter accounts for your professional and personal personas, Coy says. “For your personal account, try to come up with a name that doesn’t directly point to you.” Think twice before reaching out on social media “Avoid reaching out to an interviewer through social media unless you’re offered the job,” McDonagh advises. “I’ve been in interviews where we’ve built up a great rapport and the candidate made a really great impression, then they’ve immediately sent a friend request on Facebook afterwards and it’s given me serious reservations about them. It’s a bit presumptuous and may give an interviewer doubts about your professionalism.” McDonagh, Director at Nigel Frank International Recruitment, is strongly against friend requests, but his opinion may not be shared by all. You may encounter an interviewer who thinks it’s very professional to follow-up your interview with a LinkedIn request to connect. You’ll have to exercise your own discretion, but be aware that potential employers may have strong opinions on your actions. In summary Humans are nosey. And with social media ever-present, it’s very easy for potential employers to do some digging. Get proactive and take steps to clean up your online footprint. After all, when you’ve spent hours perfecting the tone of voice in your CV, the last thing you need is a thoughtless post from 5 years ago sabotaging your interview. Start off by adjusting your privacy settings and then schedule time to assess how your social media profiles really make you look. Ready to accelerate your career in finance and accounting Join AAT President, David Frederick FMAAT on Thursday 5 August 2021, 12.30–13.30 (UK time) to get some advice and insight on how to advance your career and upskill to accelerate career growth. Hosted by Duncan Brodie, a qualified Accountant who will explore with you how to land the job you want, improve your analytical financial and strategic skills. Register to watch Further reading on social media for professionals: How to create an effective social media policyGetting your employees up to scratch on social media is more important than everAre you risking your business reputation on social media?
Your views: the operation and effectiveness of the local furlough Posted 10/13/2020 by Mark Rowland & filed under Coronavirus. As the hospitality sector shuts down in Northern England, the Chancellor announced a new scheme to further protect jobs With the Coronavirus Job Retention Scheme winding down this month, businesses are expressing a lot of concern about their ability to preserve jobs, particularly in hard-hit sectors such as hospitality, events and the arts. The Job Support Scheme has not provided all the answers. It is now clear more needs to be done to protect jobs in areas where stricter lockdown measures are now being imposed. Chancellor Rishi Sunak, therefore, announced a new local furlough to plug this gap on Friday. Details of the new scheme: applies to all businesses forced to close due to lockdown restrictions,applies where employees can’t work for one week or more,the Government will pay two-thirds of those employees’ salaries,this includes businesses told to operate on a collection-only or delivery basis. We asked accountants serving those most-impacted sectors for their views on the new scheme. I’m disappointed with the Government ’s ‘one-size-fits-all’ approach David Fort, managing partner Haines Watts, Manchester While this measure worked in the spring, I think the Government could be a bit smarter in how they allocate support now. There are some businesses that have flourished in the current situation and have certainly managed to keep going. However, there are also some sectors that have been absolutely decimated and I think the mix is badly skewed. Initially, Sunak was opposed to extending the furlough scheme, but suddenly the goalposts have been moved again. I think there has been a complete lack of consistency and clarity. Like a lot of businesses, we have put a lot of time and effort and invested money into getting the office and the environment Covid-19 secure. I know a lot of my hospitality clients have done the same. You almost feel as if that has been wasted really. We’re all feeling as if we have been led down a path that we thought was the right way and then suddenly it’s a dead end. My hospitality clients have all been gearing up to start again after being actively discouraged to open up with the Eat Out to Help Out Scheme, so it’s massively unfair that the hospitality sector is being blamed in this way. I have a nightclub client that is very much focused on students and while the 10pm curfew was in place, they were just about covering costs. They weren’t making any money, but at least they were able to pay staff. Further restrictions mean they are not going to be viable. I also have a live events client and that again has been affected. Other clients, particularly those in the home improvements sector, are absolutely flying. Government assistance going forward very much needs to be targeted by sector and geographical location. The North of England now faces an anxious wait to see the full impact. Next step: Keep agile and make sure that you take positive steps to try and manage the business effectively ( based on the latest Government guidelines ). I know this is really difficult with so much confusing restrictions and information around. Verdict: More help should be targeted specifically at most impacted sectors. The support is welcome, but limited John Lawrence, director, Guida Accountancy Any scheme is welcome and it will help save some jobs. However, the scheme only provides limited support to businesses that are still recovering, and in many cases barely surviving, from the period of full lockdown. Although I do not deal with any clients in the North, I have spoken to some in Essex (who fear local lockdown or another national lockdown) and most say that job losses will be inevitable even with support. Cash reserves are very low and paying even part of the salary with no income coming in just will not be possible. The scheme does not offer support for many business owners or self-employed. Local lockdowns will affect businesses that can remain open but will inevitably see a drop in trade, whether through lack of spending by consumers or through the loss of their business customers who are forced to close. As payments are made to retain ‘viable’ jobs businesses will need to decide what is viable. That will be a difficult choice as they will probably need to let some staff go even though there will need them when they reopen. Next step: Accountants should be advising their clients about the new scheme and help businesses with forecasting, particularly cashflow. Ensuring clients are making claims as early and accurately as possible, and claiming for everything they can. Help businesses to look at their costs to see where short term savings can be made. Verdict: It may save some jobs, but not necessarily enough. It doesn’t support employers on NIC and pensions payments – this isn’t sustainable Nigel Morris, employment tax director, MHA MacIntyre Hudson The JSS expansion scheme will provide some income and certainty where localised restrictions apply, but it doesn’t support the costs of NIC and pension contributions like the old furlough scheme did. Employers may be able to bear the cost of NIC and pensions for a short period, particularly if they’ve been able to trade over the Summer, but paying overheads and payroll costs with little or no trade revenue isn’t sustainable for long periods of lockdown. Also, some sectors will not even have been lucky enough to have Summer trade, so the JSS may be too little too late for them. An employer with multiple sites or locations may have employees on the same payroll paid under two different schemes. Some might get ‘standard’ JSS, calculated using the set of rules where, providing an employee works at least one-third of their hours, they are paid two-thirds of their wages for the hours not worked. Other employees might get the expanded JSS scheme where they are paid two-thirds, even if no hours are worked, providing the business is forced to close due to lockdown restrictions. Many of them will know how complex flex-furlough was and the two versions of JSS could be even more challenging to operate, claim and get right. For businesses it is not only the uncertainty of local lockdown, but the complexity and challenge of how they can remain resilient in these uncertain times. Next step: For all of our clients we have been recommending that they review CJRS claims, make early corrections and ensure their finances are on a firm foundation. In addition, we’re helping clients get the necessary paperwork together to support their Job Retention Bonus (JRB) claims, which can be applied for from February 2021. Finally we’re producing JSS checking tools, as we did for CJRS, to help smooth the claim calculations reclaim processes, which are inevitably unlikely to mirror payroll and require supplementary calculations. Verdict: The local furlough extension to JSS may be too little too late. We need a long-term strategy – not short-term stopgaps Russell Nathan, head of hospitality, HW Fisher It’s a serious time for British business. The extension to furlough measures are reassuring, especially for those in hospitality who are forced to shut their doors, but the Government are still missing the mark when it comes to a long term strategy. Christmas is less than 80 days away and is the biggest revenue driver of the year for those in hospitality and retail – the next three months is normally the quarter in where they make their profit for the year. Hospitality is quick to be blamed for the virus spread but the evidence shows it is not the black spot. Measures such as the 10pm curfew are having a disproportionately negative effect on the industry relative to the benefits. Next step: The Government must now focus on building a clear roadmap to support businesses to scrap the 10pm curfew, extend insolvency protection, tackle the Landlord issue, and make a plan that will last beyond the next month. Verdict: The Chancellor might not be able to save all businesses – but he can save more.
HMRC updates and guidance – October 2020 Posted 10/12/2020 by AAT Comment & filed under HMRC updates. HMRC has published an extensive set of updates following the launch of the Job Support Scheme, extensions to other Covid-19 support schemes, and preparations for leaving the EU single market. Job Support Scheme (JSS) The Government recently announced the Job Support Scheme (JSS) to protect jobs where businesses remain open but are facing lower demand over the winter months due to COVID-19. Under JSS the Government will contribute towards the wages of employees if they are working fewer than normal hours due to decreased demand. Employers will continue to pay the wages for the hours their staff work. Employees must work at least 33% of their usual hours. For the hours not worked, employers and the Government will pay a third each of their usual wages (the Government contribution is capped at £697.92 per month). Expansion of Job Support Scheme The Government today (9 October) announced an expansion of the JSS, to provide temporary support to businesses whose premises have been legally required to close as a direct result of coronavirus restrictions. Under this expansion, affected businesses will receive grants towards the wages of employees who have been instructed to and cease work. This will cover businesses that, as a result of restrictions set by one or more of the four governments of the UK, are legally required to close their premises, or to provide only delivery and collection services from their premises. The Government will pay two-thirds of employees’ usual wages, up to a maximum of £2,100 per month. Employers will not be required to contribute towards wages, but do need to cover employer National Insurance and pension contributions. Employers can apply for the JSS, including the new expansion, even if they haven’t previously used the Coronavirus Job Retention Scheme (CJRS). JSS is available for six months, from 1 November, with payment of grants in arrears from early December. The scheme will be reviewed in January. A factsheet explaining the changes in more detail can be found on GOV.UK. Further information will be published in the coming weeks. Job Retention Bonus – guidance now live Further guidance for the Job Retention Bonus is now available. It includes information about how employers can check if their employees are eligible and when they can claim the bonus. Employers will be able to claim a one-off payment of £1,000 for every eligible employee they have furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS) and kept continuously employed until at least 31 January 2021. Employers do not have to pay this money to their employee. To be eligible, employees must earn at least £1,560 between 6 November 2020 and 5 February 2021 and have received earnings in the November, December and January tax months. Employees must also not be serving a contractual or statutory notice period on 31 January 2021. Employers will be able to claim the bonus from 15 February until 31 March, once they have submitted PAYE information for the period up to 5 February 2021. We’ll let you know how employers can make a claim when further guidance is published by the end of January. Employers can still claim the Job Retention Bonus if they make a claim for the same employees through the Job Support Scheme, as long as they meet the eligibility criteria for both. Further information can be found on GOV.UK by searching ‘Job Retention Bonus Guidance’. What employers need to do now: If employers intend to claim the Job Retention Bonus, they must: keep PAYE submissions up-to-date and on time, with Real Time Information (RTI) reporting for all employees, including reporting the leaving date for any employees that stop working for them in the month they leave or the next Full Payment Submissionuse the irregular payment pattern indicator in RTI for any employees not paid regularlyprovide any employee data for past CJRS claims that HMRC has requestedmake sure all their CJRS claims have been accurately submitted and they have told us about any changes needed (for example if they’ve received too much or too little). Coronavirus Job Retention Scheme – changes from 1 October From 1 October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work. Employers will continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves. The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in October, employers are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). Employers must still pay their employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours, employers need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion themselves. For help with calculations, search ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ on GOV.UK. Employers will also continue to pay their furloughed employees’ National Insurance and pension contributions from their own funds. The scheme closes on 31 October and employers will need to make any final claims on or before 30 November. Employers will not be able to submit or add to any claims after 30 November. If employers have claimed too much in error It’s important that employers continue to check each claim is accurate before submitting it, and we would also recommend checking previous claims so they can avoid any penalties for claiming too much. If employers have claimed too much CJRS grant and have not repaid it, they must notify us and repay the money by the latest of whichever date applies below: 90 days from receiving the CJRS money they’re not entitled to90 days from the point circumstances changed so that they were no longer entitled to keep the CJRS grant20 October 2020, if on or before 22 July they received CJRS money they were not entitled to, or if their circumstances changed. If employers do not do this, they may have to pay interest and a penalty as well as repaying the excess CJRS grant. For more information on interest search ‘Interest rates for late and early payments’ on GOV.UK. How employers can let HMRC know if they claimed too much Employers can let us know as part of their next online claim without needing to call us. If employers claimed too much but do not plan to submit further claims, they can let us know and make a repayment online through the new card payment service – go to ‘Pay Coronavirus Job Retention Scheme grants back’ on GOV.UK. Further support Guidance and live webinars offering more support on changes to CJRS and how they impact employers are available to book online – go to GOV.UK and search ‘help and support if your business is affected by coronavirus’. HMRC phone lines and webchat remain very busy, so the quickest way to find support is on GOV.UK. This will leave their phone lines and webchat service open for those who need them most. VAT Deferral New Payment Scheme If an individual or business deferred VAT payments that were due between 20 March and 30 June 2020, then these payments need to be made to HMRC by 31 March 2021. They can use the VAT Deferral New Payment Scheme to spread these payments over equal instalments up to 31 March 2022. Alternatively, they can make payments as normal by 31 March 2021, or make Time To Pay arrangements with HMRC if they need more tailored support. More information on the VAT Deferral New Payment Scheme will be available on GOV.UK in the coming months. A reminder about closure of the SEISS 2 Grant Applications for the second Self-Employment Income Support Scheme (SEISS) grant close on 19 October 2020. Anyone who thinks they are eligible for the grant and has not yet claimed must do so by 19 October. It is quick and easy to apply on GOV.UK. Anyone who needs extra support can make their claim over the phone. Grants paid under SEISS count as taxable income. Anyone who has received a SEISS grant will need to enter the amount they received on their Self-Assessment return for tax year 2020 to 2021 to ensure they pay the correct income tax and national insurance contributions. Parents who were previously ineligible for SEISS because their trading profits for the 2018 to 2019 tax year were affected by taking time out of their trade to care for a new child, may now be eligible. Parents who think they may be entitled to a SEISS grant, had until 5 October to provide information to HMRC to verify the birth/adoption of their new child. HMRC will confirm if their information has been verified and they are eligible to make a claim for a grant. Any parent who believes they may be eligible and has missed the 5 October should contact HMRC. The Government has recently announced an extension to the SEISS grant scheme. You don’t need to contact HMRC about this. HMRC will provide more details in due course. Claim tax relief for working from home More than 54,800 customers have claimed tax relief for working from home via HMRC’s new online portal. Launched on 1 October 2020, the online portal is simple to use and has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer to help stop the spread of coronavirus (COVID-19). Click here for more information. Border Operating Model Published As part of preparations for the end of the transition period, the Government has published an updated Border Operating Model, which provides further detail on how the GB-EU border will work and the actions that traders, hauliers and passengers need to take. The updated guidance follows extensive engagement with the border industry and the £705m package of investment for border infrastructure, jobs and technology, announced earlier this year. This publication gives traders further information on the changes and opportunities they need to prepare for as a result of us leaving the EU Single Market and Customs Union. These steps will be needed regardless of whether we reach a trade agreement with the EU. The updated GB-EU Border Operating Model: Maps out the intended locations of inland border infrastructure. The sites will provide the necessary additional capacity to carry out checks on freight;Announces that passports will be required for entry into the UK from October 2021 as the Government phases out the use of EU, EEA and Swiss national identity cards as a valid travel document for entry to the UK. Identity cards are among the least secure documents seen at the border and ending their use will strengthen our security as the UK takes back control of its borders at the end of the Transition Period;Confirms, after extensive engagement with industry, that a Kent Access Permit will be mandatory for HGVs using the short strait channel crossings in Kent. The easy-to-use ‘Check an HGV’ service will allow hauliers to check if they have the correct customs documentation and obtain a Kent Access Permit. In a further move to support the customs intermediaries sector, the Government is also announcing that it will exercise an exemption within EU state aid rules to increase the amount of support that businesses can access from the Customs Grant Scheme. To date, the Government has provided more than £80m in funding to support the customs intermediary sector with training, new IT and recruitment. Daily penalties for Self-Assessment 2018-19 Tax returns HMRC has taken the decision not to charge individuals and businesses daily penalties where someone has been late in filing their 2018-19 Self-Assessment Tax return. This is in recognition of the exceptionally difficult circumstances many taxpayers have faced due to the impact of the COVID-19 pandemic, during the period when the daily penalties accrued. The mandatory 6-month and 12-monthly penalties will apply for 2018-19 tax returns as normal and HMRC continue to require customers to file their returns where they are able to. HMRC will consider coronavirus as a reasonable excuse for missing return deadlines. HMRC will keep all our operational decisions under constant review. HMRC also want to let you know that HMRC can agree time to pay arrangements with any businesses that cannot pay their tax because of COVID-19. HMRC agree these on a case-by-case basis and tailor them to meet their circumstances. We’ve set up a dedicated helpline for dealing with time to pay arrangements. If businesses need help or want to talk about their options, they can phone us on 0800 024 1222. More information on this can be found on GOV.UK. Self Assessment customers to benefit from enhanced payment plans Self Assessment customers can now apply online for additional support to help spread the cost of their tax bill into monthly payments, without the need to call HMRC. The online payment plan service can already be used to set up instalment arrangements for paying tax liabilities up to £10,000. From 1 October 2020, HMRC has increased the threshold to £30,000 for Self Assessment customers, to help ease any potential financial burden they may be experiencing due to the coronavirus pandemic. The increased self-serve time to pay limit of £30,000 follows the Chancellor of the Exchequer’s announcement on 24 September to increase support for businesses and individuals through the uncertain months ahead. Customers who wish to set up their own self-serve time to pay arrangements must meet the following requirements: they need to have no: outstanding tax returnsother tax debtsother HMRC payment plans set upthe debt needs to be between £32 and £30,000 the payment plan needs to be set up no later than 60 days after the due date of a debt. Customers using self-serve Time to Pay will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from 1 February 2021. Students warned about tax scams Students starting at university are being warned by HMRC that they could be targeted by a fresh wave of tax scams. With universities blending online and face to face tuition this year, and an increase in remote working due to the pandemic, students could be left exposed to the work of fraudsters. Freshers might also be more vulnerable because of their limited experience of the tax system. To highlight the risk, HMRC is writing to Vice Chancellors, asking them to help ensure students know how to spot a tax scam. Read more on GOV.UK. Criminals are also taking advantage of the measures announced by the Government to support people and businesses affected by coronavirus. They text or email taxpayers offering spurious financial support as a way of harvesting their personal and financial details. People are encouraged to forward suspicious emails claiming to be from HMRC to [email protected] and texts to 60599. Changes to our opening hours At the start of the pandemic HMRC reduced our phone helpline opening hours to 8am – 4pm, to offer customers the best service HMRC could at the times they needed us the most. We’ve reviewed the situation regularly, monitoring when our customers are contacting us, and are now extending the opening hours for most of our helplines to 8am – 6pm. As part of this we’re also changing our webchat opening hours. We’re no longer offering webchat after 8pm or on Sundays, so HMRC can make more advisers available when customers need us most. There will be a few exceptions to this, so please check GOV.UK for more information about our helplines and their opening hours. VOA Rental Information Campaign The Valuation Office Agency (VOA) is now contacting businesses to request rental information to support the next revaluation of business rates in England and Wales – Revaluation 2023. When businesses receive the letter, they should go online and use the reference number provided to submit your up-to-date details. It is important to provide this information to ensure business rates are accurate. The coronavirus outbreak significantly affected many businesses. This is an opportunity to make sure any changes are reflected in the details the VOA holds. At revaluation, the VOA adjusts the rateable value of business properties to reflect changes in the property market. To make sure every business is treated fairly, all rateable values are based on the open market rental value at a certain date. For Revaluation 2023, this date is 1 April 2021. Businesses may not receive the letter immediately, but they should look out for it and provide information as soon as they are able.
Everyone, irrespective of age or background, should get the skills they need Posted 10/12/2020 by AAT Comment & filed under News, Skills debate 2020. The Government is helping to improve the nation’s skills, support careers and provide a talent pipeline for business, writes Conservative MP Gillian Keegan, Minister for Apprenticeships & Skills. The pandemic has shone a light on some of the acute skills gaps that exist across the country. According to recent research by Hays recruitment, four out of five accountancy and finance employers say they have experienced some form of skills shortage within the past year. Accountancy firms are the bedrock of our financial sector and the industry has long faced the challenges of skill shortages. In this country, businesses and public sector organisations are crying out for more accountants and financial analysts. Apprenticeships are playing a key role in attracting new talent from all walks of life, helping to make sure employers of all sizes have access to the skills they need to grow. There are a range of apprenticeship opportunities available within the financial sector – everything from accounting technician to senior compliance and risk specialist. It is great to see employers like BDO and KPMG embracing the benefits of apprenticeships, providing people with the chance to gain a professional qualification and earn a salary – all at the same time. Another great example in the accountancy sector, is RSM UK, who have continued to invest in their apprenticeship programme giving more school leavers the opportunity to have successful careers in audit, tax and consulting professions. Since 2016, their school leaver intake for their AAT apprenticeship programme has increased by more than 35%. I know first-hand the power apprenticeships can have. They can transform lives and open doors to careers you didn’t think were possible. This government’s apprenticeships, which have all been designed in partnership with leading employers, are longer and higher quality, ensuring apprentices get the valuable skills they need to progress. Ensuring more people can access high quality further education and training, and secure a good career, is central to this government’s mission of levelling up opportunity across the country and helping to rebuild and grow our economy after the pandemic. The Prime Minister recently announced the ‘Opportunity Guarantee’, giving every young person the chance of an apprenticeship or an in-work placement. To help boost the number of apprenticeship opportunities available, as part of the Government’s Plan for Jobs, employers are being offered £2,000 for each new apprentice aged under 25 they hire, and £1,500 for each new apprentice they hire aged 25 and over, up to the 31st January 2021. This includes taking on an apprentice who has been made redundant. On top of this, we announced an £111 million boost to triple the number of traineeships available across England – the largest-ever expansion of traineeships – to help even more 16-24 year olds prepare for apprenticeships and work through sector-focused skills development and work experience. Last week the Prime Minister also announced a new ‘Lifetime Skills Guarantee’ including offering adults without an A Level or equivalent qualification a free, fully-funded course, to provide them with the skills valued by employers. We will also make it easier for adults and young people to study more flexibly – allowing them to space out their studies across their lifetimes, transfer credits between colleges and universities, and enable more part-time study. We will also provide finance for shorter term studies, rather than having to study in one three or four year block. Technology is also playing a greater part in all our lives, so we need to ensure that everyone is able to gain the tools they need to navigate the digital world, particularly in the workplace. That’s why we have committed £8 million to expand digital bootcamps this year in the West Midlands, Greater Manchester, Lancashire and Liverpool City Region. These will be led by local employers and will be followed by additional camps in Leeds, the South West, Derbyshire and Nottinghamshire early next year. We have also expanded The Skills Toolkit – an online platform which now offers over 70 free to access online courses in a wide range of subjects including everyday maths, tools for using email and social media at work. We want people to learn about all available careers – including exciting opportunities in the accountancy industry – so they can choose a path that is best suited to their skills and talents. We invested a further £32 million to ensure The National Careers Service can provide high quality, personalised advice and guidance to more young people and adults. I know it has been a challenging time for the entire country, but the wide range of support we have developed is designed to help us to build back better after Coronavirus. We are working to make sure everyone, irrespective of their age or background gets the skills and experience they need to progress, to have rewarding careers and give businesses the talent pipeline they need to prosper, not just for today, but for the future. About the author Gillian Keegan is Member of Parliament for Chichester and the Government’s Under Secretary of State for Apprenticeships & Skills.
Government must think again and put training at the heart of its Coronavirus response Posted 10/12/2020 by AAT Comment & filed under Coronavirus, Skills debate 2020. The Government must prioritise skills to mitigate an unemployment crisis, writes Wes Streeting MP, Shadow Exchequer Secretary to the Treasury Labour is clear: training must be at the heart of the coronavirus response. As more and more local areas face local restrictions to tackle the spread of Covid-19, the Government must not repeat the same mistakes of the last six months. Focusing on the impact of public health restrictions on education, particularly in schools and universities, is right. But we must not forget the important role that training plays in the UK economy, and the risks of not supporting individuals to train and re-skill as part of the economic response to the pandemic. We must protect the jobs that people already have, especially in sectors of strategic importance to the UK economy such as the arts and aerospace. But we should also be equipping people for the secure, skilled jobs of the future. The Government’s inadequate replacement to the furlough scheme looks set to trigger a period of structural change in the UK economy on a scale not seen since the 1980s. The resulting unemployment crisis risks seeing millions of jobs lost that would otherwise be viable in the medium-term. At the same time, industries and occupations that are growing or expected to grow, ranging from social care to renewable energy, will require many people to start or switch careers through training. Last week the Government ‘announced’ a mixture of re-heated old policies and small schemes around training. The centrepiece was a Lifetime Skills Guarantee that only serves to reverse a decision taken by the Coalition Government. But the vast majority of the funding will not come into effect until April 2021. That risks being too late for the one million workers who have already lost their job, many of whom will have been out of work for almost a year by then. Millions more are either at risk of unemployment or face another six months of reduced hours working. The Government could have included a training element alongside both the Coronavirus Job Retention Scheme and the new Job Support Scheme, but it hasn’t done so. This is a disaster for those who could have benefitted from training opportunities taking place in their unexpected free time since the start of the pandemic, gaining valuable skills to get on in life. Instead, all that the Government has put in place is an under-used digital-only offer, which has achieved just 16,200 course completions despite over nine million workers being furloughed throughout the pandemic. Earlier this month we heard the news that the Government was withdrawing funding from Unionlearn – a scheme run by the TUC that helps to train over a quarter of a million workers every year. In a speech to Labour’s recent virtual conference, Shadow Chancellor Anneliese Dodds outlined Labour’s alternative. First, we need to protect jobs with a Job Recovery scheme that incentivises employers to offer their staff high quality, properly accredited training. Other countries have done this without difficulty. The French wage support scheme subsidy for employers is higher for employees who undertake training. Secondly, we need a proper National Retraining Strategy for the unemployed and those facing unemployment – a strategy that prioritises building capacity in the adult education, JobCentre Plus and Further Education network, to ensure those who want or need to retrain can access the opportunities they desperately need. The government should urgently bring forward more of the £3bn earmarked for the National Skills Fund to pay for this. It is not just Labour calling for urgent action to support training. Recently, everyone from the Trades Union Congress (TUC) to the Confederation of British Industry (CBI) has called for training to be central to the Government’s economic response. Labour agrees. By building training into a Job Recovery Scheme and bringing forward announced funding to deliver a National Retraining Strategy, we can support individuals facing an uncertain winter to access the jobs of the future and support the recovery. About the author Wes Streeting isLabour Member of Parliament for Ilford North and Shadow Exchequer Secretary to the Treasury.
Remarkable reporting – a skill to keep you out in front Posted 10/12/2020 by Neil Johnson & filed under Members. Hirers want to find professionals with strong reporting skills – here’s how to get them. Talk to recruitment experts about hiring trends in finance amid the coronavirus crisis and a common theme emerges: businesses want to see more financial and management information, while shareholders want to know how their money is being spent. What is reporting? So what makes for great reporting? “I’m sure if you ask loads of different accountants, you’d get lots of different answers,” said Andi Lonnen, founder & CEO (chief energising officer), Finance Training Academy. First of all there is statutory financial reporting, the quarterly and annual financial statements to be filed with Companies House. The size of a business will dictate how much information needs to be included – the smaller the company, the less it will have to report; while for a publicly listed business exposed to capital markets, more information will be required to provide transparency and prove solvency / liquidity. Then there is reporting that can provide insight into a business’s “live” operations and performance. This is often referred to as the management accounts, which can combination financial and whatever other data and information a company wishes to see to form a bigger picture. Such reporting supports management decision-making and adds more value than the statutory reports alone, which are ultimately backward looking and quickly out-of-date – management are unlikely to base strategic decisions on financial information that can be over a year old (in the case of annual reports). And such insightful management information is no longer exclusive to large organisations with big budgets. Digitisation, cloud accounting and big data mean now more than ever SMEs can see unique, tailor-made information about ongoing performance. “The most value for a business owner is to give them information in as near to real-time as possible,” said Alastair Barlow, co-founder and chief dreamer at flinder, a practice that embraces the digital opportunities of modern accounting. “The purpose of management or financial reporting is to provide answers to questions: What’s going on in a business? Is it making a profit?” Taking a broader approach to reporting can help companies and investors focus on what drives value now and into the longer term, said Rebecca Farmer, partner, Financial Accounting Advisory Services, EY. “Well-structured external reporting, which makes a strong link between a company’s purpose and strategy and the outcomes it intends to deliver for its key stakeholders, provides investors with useful information on how a company intends to drive value both in the near and longer term, and on how it manages risks that could diminish that value.” How do you do it? There is no one-size fits all and reporting varies depending on the size and nature of a business. Nevertheless, due to the evolution of cloud accounting and big data, accounting practices, finance departments and SMEs have access to more information than ever before. And while it’s still common for reports to come as PDFs, Word documents or PowerPoint presentations, they can also come as advanced interactive visualisations. Cloud accounting systems, such as Xero, QuickBooks or Sage, to name a few, have been developed for ease of use and ability to process and present financial data in real-time. Combined with the ever-growing ecosystem of apps that plug into these accounting systems to perform all manner of tasks, analysis and visualisation, modern reporting is at many more people’s fingertips. Yet such technological gains should not obscure the fundamental strengths of reporting as a form of communication. The PACE approach To this ensure reports communicate well, Lonnen follows the PACE model: Purpose, Audience, Content, Engage. Question the true purpose of the report. Accountants can be accused of writing endless reports. “Pause for a moment and ask what the report is trying to achieve, is it needed anymore? Be strategic in your approach before you even put pen to paper or use data.” The audience is everything, it’s what will provide the report focus and direction. “A board report will be completely different to a management report, as it will only need really high level details, while a management report might need more information to help managers make decisions,” Lonnen said. Simplify, simplify, simplify! The clarity of the content is vital. “No matter the audience, simplify, simplify, simplify, because a lot of the people reading these reports will not have finance expertise,” she continued. “We often forget that our years of training, qualifications and experience mean we use the words we’ve learned instead of translating them into something simple. If you want to tell the story behind the numbers, then remove financial jargon to keep things as clean as possible.” And finally, engage. This will depend on the audience. Don’t lose sight of what they care about. This could be managers wanting to know if they’ll get regular bonuses, or if a company will be able to invest in a project, or seeing which product lines are profitable, or understanding customer behaviours. It’s no good having a report that’s pretty looking with a wealth of clever-looking data insights if it doesn’t address its purpose and answer the audience’s questions. Types of data that can be blended and reported Statutory (external) financial reporting Management accounts reporting Other types of data Income statement Profit & loss report Website data – traffic, new users, subscribers Statement of comprehensive income Balance sheet CRM – Customer Relationship Management system Balance sheet Cashflow Sales – orders, purchases, types of payment Statement of cash flows HR – productivity, culture, hiring Statement of stockholders’ equity Sustainability / environmental impact Quarterly and annual stockholder reports Marketing & social media – campaign data, performance Advertising Any other data a company has A rough example For Barlow and flinder, the idea is to provide rich and insightful reports that are relevant to stakeholders. This involves a six-step process based on six key principles of management information. flinder’s six steps to designing a reporting blueprint flinder’s six principles of management information Identify stakeholders Rich (segmented) Explore current reporting Real-time Stakeholder questions Integrated Design metrics Business-wide (heterogeneous) Identify data sources Aligned to strategy User preferences: How is the report presented? User friendly The insight that flinder can provide a business can go a little something like this: Over May-August monthly online revenue shows a steady increase, which is good. But add in non-financial information, like online customer levels and web traffic, and we see these are inconsistent. Add in online conversion rate and average order value data, both of which are falling, we see that key growth drivers are not optimised – the business’s revenues over these months could have been higher. “Bringing in non financial data to enrich financial data is extremely powerful,” said Barlow. “Often, financial data can tell us what has happened, but it can’t tell us why it’s happened.” But by adding in the extra data in the above example, flinder are capable of showing a client lost potential and therefore begin a conversation about how to address. Who uses the reports? OwnersManagersInvestorsBanks and lendersAccountantsAuditorsTax planners What do businesses do with reports? “We want businesses to take action from what we deliver,” said Barlow. This means questions and engagement, hopefully. “Historically there were very rarely any questions,” said Lonnen. “They didn’t really know what questions to ask and they didn’t want to look foolish, but now it’s all in English, people are more confident. It’s really good when you get questions, because then you understand their map of the world, which means that you can tailor your information even more tightly to what the audience needs.” This is where accountants can do more than merely deliver a report and walk away. They can become business partners that support businesses to grow and improve. “Reporting in this way is completely under-tapped,” said Barlow. “The technology can definitely make reporting look prettier and a bit more relevant, but really it comes back to the accountants and their skillsets. Their ability to tailor the reporting, aligned to the business strategy, understand the business model, and have the communication and partnering ability to translate it to action. That’s really important. And that’s not getting taken away by any technology anytime soon.” How can reporting help a business? Assess key performance indicators and metrics to get a ‘heads up’ of the live businessImprove decision-makingImprove profitabilityRate financial performance between entities or officesIncrease salesUnderstanding risks to the business and future-proofingManaging working capital, cashflow and trading volumesCan uncover bad practices and business areas to improve or transformIt can reduce overall accounting costsVarious operational controls: establish sales break-even points; overheads and stock levels; manage debtors; bank positionsAmong other possibilities deeding on the business, it’s size, sector and ambition What skills do you need to do reporting well? Knowledge of up-to-date legislation and a technical background afforded by an accountancy qualification are a basis. More broadly it helps to be able to combine an eye for detail with an eye for the big picture, to be able to combine a detailed understanding of the business with the eye of a well-informed reader, said EY’s Farmer. “This means that you need to be comfortable that the data being communicated is not just complete, well-controlled and comes from reliable sources, but that taken together the results and accompanying narrative provide a fair, balanced and understandable view of how, and how well, the business is delivering value to its stakeholders.” Modern reporting requires strong IT skills to work with the variety of software and database systems commonly used in financial reporting said James Brent, director at Hays Accountancy & Finance. Though less obvious and equally as important are good verbal and written communication skills, given the importance of telling the story of data in a non-financial way. “You’ll almost certainly be required to summarise your work to people who don’t have your level of technical knowledge, so the ability to communicate clearly to different target audiences is much needed.”
What will the accounting industry look like post-Covid? Posted 10/12/2020 by The content team & filed under Coronavirus - students. These are challenging times for anyone keen to start a career in accountancy, and the difficult recruitment climate emphasises the value of an AAT qualification. The job market has become incredibly competitive because of the Covid-19 pandemic. Workers who are being made redundant across different industries are investing in re-training in the finance sector, often using AAT as the route in. Employers are also getting used to doing things differently and considering, for example, the pros and cons of hiring apprentices rather than graduates. The impact of Covid-19 is stark, but thankfully the outlook is positive. Bill Richards, UK managing director at global job site Indeed, says the accountancy sector’s share of all jobs on the site has slumped 17% since lockdown began in March. The overall trend in postings until the pandemic had been one of growth, with accountancy’s share up 10% since 2018. The company does not reveal actual job numbers. “No industry has been immune to the impacts of Covid-19 and that includes accountancy,” says Bill. “Since lockdown there has been a fall in accountancy jobs, but the rate of decline has been nowhere near as dramatic as in other parts of the economy.” The good news is that job postings are slowly beginning to exceed job seeker interest on the site. Bill expects the number of jobs to continue increasing over the coming months. If you are looking at starting a career in the industry, Covid-19 has created some new growth areas for accountancy. These are types of accountants that are needed by businesses right now – and in all probability – the years to come too: Insolvency practitioners The finances of many companies have been skewered by the Covid-19 outbreak, with many of their revenue streams having evaporated. Businesses will be looking to cut costs and consolidate resources wherever they can. As such, in 2021, there could be a dramatic rise in mergers, meaning it’ll be a busy year for those insolvency departments tasked with restructuring Covid-hit companies. Tax experts With unemployed workers and crisis-hit firms paying less tax because their income and profits have sunk, the government will seek to raise tax from other sources. The Institute for Fiscal Studies recently warned that tax rises will be inevitable. Those accountants who are au fait with all things tax can expect to have their expertise called upon. Digitally-aware accountants Companies embarking on digital transformation journeys will need accountants to help them make sense of the financial costs – to ensure the process runs as smoothly and cost-effectively as possible. Companies will also be increasingly reliant upon data to help them forecast sales and target customers, so being able to understand and interpret such data could give them an edge over fellow job candidates. Cash flow connoisseurs Cash flow has always been a problem for businesses – something brutally exposed by the financial hardships of Covid-19. Over the coming years (especially if there are further outbreaks of Covid-19), cash flow will still be a top priority for many firms, meaning accountants will be in demand for emergency planning, reviewing assets and liabilities, assessing income and eliminating any unnecessary spending. Mathew Kaye, senior recruitment consultant at Accountancy Recruit, says the number of jobs at technician level are probably around 50% below a year ago but the medium-term outlook is more optimistic. “Anyone with an AAT qualification and some experience will find it easier at the moment, as it shows employers you can study and work at the same time and are committed to a career in accountancy,” he says. “There are a lot of senior accountancy roles to be filled and once they are, we expect to see a recovery in more junior positions.” Mathew says people who have little or no experience in accountancy should consider temporary work. “We find that many people who accept three or six month contracts tend to be taken on full-time.” Ultimately the key for anyone is to be as flexible and adaptable as possible and demonstrate a broad set of skills, so potential future employers can see how they would fit into their organisation. Key takeaways No industry has been immune to the impacts of the Covid-19 pandemic, but the outlook is positive for jobs in the accounting industry. There have been a number of new growth areas in accountancy as a result of the Covid-19 pandemic. Job seekers with an AAT qualification and some experience may find it easier to find a role in the accounting industry at this time. Further reading: How coronavirus will affect employment and what you can do about it 11 trends from Covid-19 that could affect your career Does accountancy still offer a safe career after the mayhem of Covid-19?