Upwardly mobile: Why social mobility matters

Posted by & filed under Social mobility.

As an employer, as a professional body and as a thought leader, AAT’s commitment to social mobility is unwavering. However, some continue to question why this is something in which AAT invests.

Mobility problems

Those from better-off backgrounds are almost 80% more likely to end up in a professional job than those from a working-class background and even when those from a lower socio-economic background secure a professional job, they typically earn 17% less than their more privileged colleagues.

This is simply unacceptable. It has nothing to do with talent or potential and everything to do with a lack of opportunity.

The problem is particularly pronounced in the accountancy sector with research from the Bridge Group confirming that the largest accounting firms are less likely to employ applicants from low-income backgrounds than their wealthier peers, despite a range of award-winning programmes to change this.

Educational institutions and businesses large and small can do more to help deliver greater social mobility and like many others, AAT is playing a part in seeking to change things for the better.

Employer responsibility

In 2018, AAT undertook its first internship programme, giving an opportunity to 7 individuals from disadvantaged backgrounds. The scheme proved so successful for interns and AAT that AAT was awarded “Employer Newcomer of the Year” by the Brokerage.

“We chose AAT as Employer Newcomer of the Year… for being a supporting, accommodating and welcoming organisation. This helped the interns to settle down quickly and enjoy the experience,” Bridget Gardiner Chief Executive, The Brokerage

Last year, AAT undertook interviewer training to underscore the impact of unconscious bias on the recruitment process; to ensure that AAT’s recruitment process is fair and that it promotes the organisations values.

AAT has also taken part in the Employers Network for Equality and Inclusion (ENEI) benchmarking survey, performing well in many areas but also helping to identify areas for improvement and informing AAT’s new Equality & Diversity Inclusion strategy, recently signed off by AAT’s Executive Committee.

The power of apprenticeships

AAT plays a crucial role in the apprenticeship marketplace with approximately 16,000 apprentices. These are being offered by a very diverse range of employers including 80% of the FTSE 100, local and central Government, the third sector and many SMEs.

Data from the Department for Education shows that apprentices tend to come from relatively low socio-economic backgrounds – their parents are less likely be in higher-level and professional occupations and more likely to be in semi-routine and routine occupations.

Yet a wealth of evidence also points to the positive impact apprenticeships can have.

An attractive proposition

Most professions, including accountancy, are today accessed via an apprenticeship as well as via a graduate route, meaning whilst the destination for many may be the same, the route may be somewhat different – with an apprenticeship often proving to be a more attractive proposition.

The social mobility impacts are clear too. In 2018, almost three-quarters (74%) of apprentices who had never worked before completing their apprenticeship had moved into and remained in paid work. That’s a powerful incentive for many.

As well as increasing employability, apprenticeships tend to have a positive effect on earning potential and moving on to higher levels of training.

Accountancy, ahead of the curve?

In fact, despite long term problems at the top, looking at social mobility more widely, the accountancy sector could arguably be considered ahead of the game in terms of acting to address the problem.

For example, the top two organisations in the 2018 Social Mobility Employer Index were both accountancy firms – KPMG & Grant Thornton – both of whom offer AAT qualifications as part of their Apprenticeship programmes.

Many smaller firms also hire apprentices and should be commended and supported for doing so. Likewise, many smaller firms recognise the benefits of a diverse workforce and of taking on those who are clearly bright and suitable but may not necessarily have the right grades on paper.

As Dominique Unsworth, a small business owner and SME Apprenticeship Ambassador, recently said; “Rather than focus on pre-existing academic achievements, apprenticeships enabled us to focus on recruitment based on raw talent, initiative, willingness to learn and practical skills. This in turn resulted in more socio-economic and cultural diversity within our organisation and increased our worldview and ability to innovate.”

In Summary

The message is relatively simple. The UK has a social mobility problem and it’s up to all of us – professional bodies, educators, employers large and small, politicians – to take action. In the 21st century, an individual’s birthplace or parental income should not dictate success, instead ability and potential are surely what matters most?

Social mobility and accountancy – in 10 charts

Posted by & filed under Social mobility.

Can you go from stacking shelves to working in a major accountancy firm in the UK?

Here’s the story of social mobility in 10 charts.

From this whistle-stop tour, we get a feel for the state of the nation. We can better understand the underlying causes of the problems. We can also see cautious grounds for optimism. In accountancy not all is bad.

Those from better-off backgrounds have the advantage in almost every way. They are more likely to do well at school, get decent careers advice and go on to the kind of university employers target with recruitment fairs. Their families support them – for example, in taking up internships or moving region.


That’s why more accounting employers need to change. How is your organisation doing? What could you improve?

How accountancy is opening doors in social mobility

Posted by & filed under Social mobility.

Welcome to the start of our new AATPowerUp campaign on social mobility.

Every person should have the chance to achieve their potential, regardless of the background from which they come.

Improving access to opportunities is not easy. In fact, Government says efforts to make the world of business more inclusive have been slowing down recently.

However, accountancy has been making a difference. What’s more, it’s been leading the way in the professional sector.

So, over the next two months, AAT will be focusing on the achievements, changed lives and opportunities for us all to do even more.

Definition: What is social mobility?
Improving social mobility means enabling individuals to move up the social ladder by advancing professionally or economically. It can encompass equal opportunities regarding education, recruitment, gender and disability.

From bottom to top of the class

10 years ago, accountancy was far from open. A major Government report criticised the profession for being massively tilted towards the well-off. Over 40% of employees came from families with above-average wealth.

Since then, several accounting firms have taken the criticisms on board. They have responded so well that five of the top seven employers for social mobility are accountants.

KPMG claimed the top spot in the last rankings, with Grant Thornton second. Deloitte, PwC and EY all finished in the top seven. 

As the 2018 index has shown, Employers are tackling the issue with innovative apprenticeships, changing recruitment procedures, outlawing unpaid internships and making talented youngsters from disadvantaged backgrounds feel welcome. 

“If you’re from a background where going to university wasn’t an option, you might have thought accountancy was something you couldn’t access. Times are changing. The sector is really thinking about social mobility.”
Zoe Pluckrose-Norman, people director at accountancy firm Armstrong Watson.

More work to do

However, inequalities persist. Applicants for accountancy jobs who come from wealthy backgrounds have a one in 18 chance of being hired, compared with a one in 22 chance for those from low-income backgrounds, according to research by the Bridge Group in 2017.

The top 10 employers

  1. KPMG
  2. Grant Thornton UK
  3. Ministry of Justice
  4. Bryan Cave Leighton Paisner
  5. Deloitte UK
  6. PwC
  7. EY
  8. Enterprise Rent-A-Car
  9. Civil Service Fast Stream and Early Talent
  10. Baker McKenzie

2018 Social Mobility Employer Index.

Facts and figures

  • In professional occupations, those from working-class backgrounds earn on average 17% less than those who come from professional families.
  • Only 21% of people with disabilities from a working-class background are entering professional or managerial jobs.
  • Graduates earn an average of £10,000 a year more than those who didn’t pursue further education.

Government’s social mobility report, April 2019

Why social mobility works

Accountancy firms aren’t hiring recruits from underrepresented backgrounds because they’re nice people. Social mobility also makes good business sense too.

For a start, diversity broadens an organisation’s talent pool. Ideas and decisions will come from a broader range of sources. This, in turn, can prevent ‘groupthink’ (where people think the same way to conform), which has led to various corporate calamities, such as the Volkswagen emissions scandal.

Customers can also identify more easily with companies that draw their employees from different backgrounds. “We’ve got such a wide range of clients, and it adds great benefit if our workforce reflects that diversity,” says Zoe Pluckrose-Norman, people director at Cumbria-based accountancy firm Armstrong Watson.

“[It] is about bringing people with different experiences and backgrounds to come up with better decision-making.”
“It helps bring in more innovative solutions… Talent comes from everywhere, not just in pockets.”

Jenny Baskerville, KPMG co-head of inclusion, diversity and social equality

Social mobility: the benefits for employers

  • When employers cast a wider net in recruiting, they’ll unearth even more talent. 
  • Employing staff from diverse backgrounds helps companies understand their clients and customers better. If clients/customers see staff who look, act and speak with the same accents as them, they’ll be able to better relate to the organisation.
  • With automation threatening to make many bookkeeping tasks redundant, communication skills are more critical than ever before. Accountancy firms now realise that employing people who can relate to their clients can lead to better business relationships.
  • Social mobility also boosts corporate social responsibility, helping attract new employees and clients. 

What are companies doing right now?

Apprenticeships are one of the most effective ways of fostering social mobility within a company. The KPMG 360 apprenticeship programme rotates placements in different areas of the company while studying AAT qualifications. As Baskerville notes, “It allows school-leavers to progress at the same level as graduates. Some of our apprentices end up being in charge of graduates… It creates a good working dynamic.”

Innovation: EY targets parents
EY developed a parental advice campaign to challenge out-dated careers thinking and explore how the world of work has changed.
EY followed up by chairing panel events with 88 parents, creating a pilot ‘EY Parentaship‘, in London followed by events in Reading, Manchester and Birmingham. The Cabinet Office noted the campaign.

In a bid to eliminate class bias, some companies are changing their recruitment policies too. For example, EY has adopted a CV-blind approach, where the candidate is judged on an interview or test, rather than knowing where they went to school/university.

Other firms, such as Grant Thornton, have dropped academic entry requirements (such as a 2:1 degree). “Being able to pass exams isn’t what the future looks like,” says Richard Waite, head of resourcing and global mobility. “We’re looking for people who can bring passion and a real focus on client work.”

Maybe it’s time to finally scrub out the ‘Hobbies & Interests’ section of your CV too. “We don’t look at that now,” says Waite.

“There’s a correlation between ‘impressive’ extracurricular activities and being from a higher socioeconomic background, so we’ve removed this barrier-to-entry.”

Unpaid internships are also being phased out by some larger firms. These favour people from privileged backgrounds who can afford to work for free (one 2018 survey found that unpaid work experience can cost at least £1,019 a month in rent and travel expenses).

PwC – Social mobility scorecard
In September 2017 PricewaterhouseCoopers published its first-ever social mobility scorecard in its annual report. This measured performance linked to social mobility strategy, including recruitment and retention, advocacy and community. New hires from a Free School Meals background rose from 6% to 7% after its introduction.

What should we do next?

The accountancy sector might be among the best social mobility employers in the country but David Johnston, chief executive at the Social Mobility Foundation, argues there’s still work to be done…

“Accountancy firms have done well, particularly with school-leaving and apprenticeship programmes. But they haven’t solved all their social mobility problems.

“For many years, firms have focused on getting people [from less privileged backgrounds] into a company, then assuming that everything will take care of itself. However, once people get into a company, they find their colleagues speak and act differently plus have cultural references they don’t understand. Quite often, many employees feel the organisation isn’t for them. There’ll also be parts of the business – or social groups – where they find it hard to get in. Some people are telling us that [at some firms] it’s still okay to take the mickey out of somebody from the north of England, or make jokes about ‘chavs’.”  

What can these firms do? Well, the social activities hosted by many firms sometimes don’t give thought to people who aren’t interested in sports or don’t drink alcohol.

Also, senior leaders need to find a way to connect with employees from different background. Reversing mentoring, which pairs a junior employee in an organisation with a senior person, can work well.

However, if employers do only one thing, we’d recommend designing a recruitment process that judges potential. Every company says ‘We’re looking for the best people’, but in reality, they’re judging how well they did at school, and not how they’d fare as an accountant. There also needs to be a workplace culture that enables these people to flourish, rather than them being judged on how middle-class they are.”

What can I do?

The takeaway for employers:

  • Adopting some of the recruitment procedures of the big four, such as CV-blind approaches or dropping academic requirements, can help widen your talent pool.
  • Also, consider scrapping unpaid work experience.
  • Look at apprenticeships as a way of supporting people who don’t go to university.

Takeaways for AAT Members

If you feel your organisation is lacking in social mobility, suggest a school outreach programme.

  • You could give a talk on accountancy to local schools and sixth-form colleges. Or perhaps set up a work experience scheme and/or mentorship service to inspire these youngsters on potential career possibilities.
  • After interviewing applicants from a disadvantaged background, make sure you give constructive feedback on their interview technique.
  • And if you notice any of your colleagues feeling isolated in the workplace due to their background or cultural differences, befriend them and perhaps suggest some social activities to your boss that they could enjoy too.

In summary

After having been lambasted in the 2009 Milburn report, accountancy has made big strides to improve access to all levels of society. The larger firms are setting the example. Small medium and sized companies need to follow their example. Moreover, hopefully, the sector as a whole can inspire more businesses to take a much more inclusive approach.

When they do, these firms have discovered, social mobility is enormously beneficial. Not only does it expose companies to new talent and fresh ideas, but it also means they have a workforce that resembles the clients they represent.

Smarter thinking: Mindfulness in the workplace 

Posted by & filed under Career.

According to the World Health Organisation, by 2020 the cost of mental health will be second only to heart disease globally.

For MIND, poor mental health costs the UK economy between £74 billion and £99 billion a year. And according to the landmark Stevenson-Farmer report ‘Thriving at Work’, published in 2017, at any one time 25% of the workplace is affected by stress, anxiety or depression.

Positive impact on financials

Not only is it the right thing for employers to have a positive focus on good mental health, but there are sound financial reasons for doing so as well.

However – many find it hard to know what to do, and many employees feel understandably cautious about asking for help. What are some of the most helpful pointers? Practising mindfulness, walking meetings and talking sessions are all ways to create this culture.

Ruth Steggles is Director at Fresh Air Fridays, an organisation that takes staff outside and walks with them as they work. “The programmes we run are designed to support people with their mental and emotional wellbeing,” she says, “and we use a coaching approach because this is not one-size-fits-all.”

Myths about mindfulness

In practice, many people say they find mindfulness too difficult to engage with, even if they are prepared to put in the time.

“There are some myths about mindfulness,” Steggles says. “People think you jump into it and will suddenly have a quiet brain. That’s not our experience. Even as a regular practitioner, I’ll have times when my brain is noisy and part of the learning is to be aware that this happens.”

An experienced practitioner “will notice what they’re thinking and bring themselves back to quiet. When we’re inexperienced, our minds will be wandering off writing shopping lists and worrying about things, instead of focusing.” It’s about forming a habit, she says; “it is not instant reward, as exercise can be.”

Here’s the science bit

Natasha Wallace is Founder and Chief Coach at Conscious Works, a wellbeing and leadership development company. “Neuroscience has shown mindfulness actually changes the shape of the brain and reduces the amygdala, which is where anxiety resides.”  

She agrees with Steggles that it can be hard to engage with. “Many say they can’t concentrate, and it’s true that the more overwhelmed you are, the harder it is to do – but that’s when you need it most.”

To counter this, Wallace recommends starting with breathing exercises. “When you take deep breaths, you learn how to regulate your emotional reactions to things.” This can be really useful if you are in an office environment and unable to take a break at that exact moment – you can still take control of your breathing and create some space, even from your desk.

The focus in offices towards wellbeing and positive mental health has certainly changed for the better, Wallace emphasises. “Mindfulness is now such a mainstay it’s almost become a regular thing for organisations to engage with.”  

Not just a nice to have

Making mindfulness a component of your office’s daily life reaps great benefits, both to the individual and to the organisation.

It’s not just a ‘nice to have’ or something flaky: as well as raising productivity it increases staff retention and reduces absenteeism. Research from Deloitte suggests that workplace interventions on mental health show a return to business of between £1.50 and £9 for every £1 invested.

However, it’s important to go about it the right way. “We see many managers wanting to do the right things for staff because we are human – most people want to help others,” says Steggles. “However, a side-effect is we can be very good at projecting what other people should do. Actually, the best way we can influence people is by how we are ourselves, rather than trying to fix others.”  

Walking meetings

Finally, we spend so much time in the office that any move towards disrupting the mind-set that all work has to be done inside, is recommended.

“We encourage walking meetings wherever possible,” says Steggles. “If there are two or three of you and you don’t need a laptop, get outside – contentious issues, for example, are handled and resolved much better, we find, when people are outside.”

“Our experience is that you create visual anchors to remember things you don’t recall in other circumstances. We said X when we walked past the post box; we agreed Y when we walked past the trees.”

Both sides of the brain are engaged when you are walking, Steggles says, “so you have access to more intellectual power.” When people are arguing, being outside “pulls you out of your reptilian brain and gets to the frontal cortex, so you can cope better and think better.”    

Mindfulness in the office – top tips

  • Don’t feel trapped in the office. “If you’re having a moment of stress and can’t go anywhere,” Ruth Steggles says, “be aware of your breathing. Try breathing in for 7 and out for 11 – long out-breaths signal to your brain that you can relax.”
  • You don’t have to do mindfulness for hours. Ten minutes at the beginning and end of the day, as a habit, will start to show results. This can be as part of your normal routine.
  • Try to find somewhere green. Our brains thrive on the oxygen from trees and just being outside in itself reduces stress.
  • Make it part of a wellness programme. “You need to be conscious of negative emotions that are unhelpful,” says Natasha Wallace. “It can be hard to change patterns that become deeply ingrained – mindfulness can help.”

For more on mindfulness and productivity:

How to successfully implement a culture change

Posted by & filed under AATPowerUp, Leadership.

Stuart Hurst had an uphill struggle when it came to implementing a cloud technology strategy at his new firm. Here’s how he won over his sceptical colleagues .

Stuart Hurst started at UHY Hacker Young with the goal of bringing cloud technology to the firm. He was optimistic about the work and excited to get stuck in.

But he didn’t bargain for the cultural barriers that he would face. He wasn’t just bringing in new technology – he had to change mindsets and build a team as well.

Building a new culture is no easy task for a CEO, let alone someone in a middle management role, but Hurst has proven that is possible.

Benefits and difficulties

Hurst oversaw the adoption of cloud software at Styles and Co, and expected the process to be much the same at UHY Hacker Young, a much bigger firm.

He also had the buy-in of UHY Manchester’s managing partner, Mark Robertson, which gave him the confidence to take his project forward. “He had hired me, so I had support from the top. The pair of us ran a presentation on day one about what I was there for, so people were aware of what was coming.”

So Hurst decided the best approach initially was to explain the benefits and be upfront about the difficulties – a big change in culture always involves a few hiccups in the early stages. “I said: ‘For the first month, you’ll hate me.’

“Using the cloud, the average 18-hour job comes down to six hours. But, in the first three to six months, it goes in the opposite direction. In my previous company, those tasks went up to 21 hours in the bedding-in phase, because people are getting used to the system and you’re spending a lot of time training. Without a vision for how to progress, I’d have been sacked in those first three months. It’s tough to manage.”

Winning support

When Hurst initially came on board, his team consisted of him and one disgruntled bookkeeper who was extremely suspicious of cloud technology. “It was about reducing her workload. That was my sell,” Hurst recalls.

Having finally won the bookkeeper over, Hurst needed to start changing the rest of the culture, one person at a time. His relentless positivity and enthusiasm for what he was doing were definitely a big help. He was upbeat about accountancy in a way that was foreign to the firm at the time.

“You need to find what will get people excited about a new way of working,” he explains. “Show them how they can see stuff in real time, and how they can spot what’s gone wrong and address it there and then.
It helps to see the bigger picture. Staff realised they wouldn’t just be number-crunching – they’d be doing advisory.

But we’ve always done it this way

All of this isn’t to say that Hurst didn’t meet continued resistance, though – big cultural changes will never be universally accepted. “If I had £1 for each time I heard ‘That’s how we’ve always done it’, I’d be a very rich man,” Hurst laughs. “Transparency is key. You need to share all the successes, as well as all the things that haven’t gone so well.”

The final ingredient for bedding in cultural change is bringing in new people. They will embrace the new culture from day one, and help to spread it.

“The younger generation are great for helping to instigate change,” Hurst says. “They’ve got no preconceptions. It creates a sort of cultural change sandwich when you’ve got partner buy-in and champions at the bottom.
It squeezes the middle.”

A team driving change

Now Hurst has built a dedicated cloud team of 20 people, and they’re all working to drive change. They’ve converted more than 400 clients so far, as the cloud-first approach slowly becomes the norm.

“We’ve gone from a workplace culture akin to [’80s kids’ show] The Raggy Dolls to a motivated, highly efficient team of accountants,” he says. “Staff are so excited about this way of working. They’re no longer just whacking numbers into a spreadsheet. Staff can see everything in real time and connect the dots. Their work has become business advisory.”

In summary

Any big change within an organisation is disruptive at the beginning. But by being clear on the benefits and challenges at every step of the way is a key factor in getting your team to adopt new ways of working.

For more on leadership and instigating change:

Study tips: Sales and purchases – part 3

Posted by & filed under Foundation Certificate, Students.

The third article of our series on sales and purchases.

Study Tips: Sales and purchases series

In the third part of our sales and purchases series, we’ll look at the difference between cash and credit transactions. 

Having looked at the business basics of sales and purchases in part one, and then paperwork in part two, we’re now only one step away from applying that knowledge and understanding to a double entry bookkeeping system.

The last element we need to consider is how invoices get settled once they’ve been generated and received by a customer.

Sales and purchases scenario

If you remember from previous articles in this series, Emily sold Adam some stationery.

Emily is the supplier and has generated the invoice for this transaction. Adam is the customer and has received the invoice from Emily and checked it against his purchase order and the goods he received.

Assuming that everything is okay with the transaction and paperwork, the only thing left to do is for Adam to pay the invoice.

Let’s assume that Adam actually went to Emily’s Stationery Company and ordered the goods in person at the counter. Emily got what he wanted out of her stockroom and generated the invoice there and then. Adam checked it was what he wanted, and then paid Emily on his business debit card.

Cash transaction

This would be an example of a cash transaction. There are a few points to note about cash transactions:

  1. The timing of the payment is important – money changes hands at the point of sale.
  2. The method of payment is not important – cash transactions can be made with actual notes and coins, cheques, debit or credit cards. They can also be made using bank transfers.
  3. There is no pre-existing agreement between the supplier and customer.

Let’s now consider what would happen if there was a pre-existing agreement between Emily and Adam. 

Credit agreements

That would mean that Adam had applied to Emily for credit and asked her to set him up with a supplier’s account so that he could delay paying for his goods.

Emily would have checked to see if Adam was credit worthy and then put a formal agreement in place, stating that Adam can buy and have stationery without paying for it at the point of sale, on the understanding that he will pay for it within a certain period of time.

The invoice in part two shows payment terms of ’14 days after invoice date’.

This tells us Adam and Emily have a credit agreement, therefore, let’s say that Adam sent Emily his order by email and that she sent the goods along with a delivery note by courier. She then followed up by emailing the invoice. Adam carried out his checks and then set up a bank transfer to pay the invoice on 11 May, as the invoice is dated 27 April.

This is now an example of a credit transaction. There are a few points to note about credit transactions:

  1. The timing of the payment is important – money changes hands after an agreed period of time.
  2. The method of payment is not important – credit transactions can be made with actual notes and coins, cheques, debit or credit cards. They can also be made using bank transfers.
  3. There is a pre-existing agreement between the supplier and customer.

In summary

The end result of a sale/purchase is that the customer has to pay for the goods and the supplier receives the money. The actual method of payment has no bearing on whether a sale/purchase is a cash or credit transaction. The crucial distinction is the timing of the payment.

Credit transactions are made possible by the agreements suppliers put in place to extend credit to their customers, allowing them to delay paying for goods or services.

The next two articles on sales and purchases will look at sales and then purchases in double entry bookkeeping systems.

The next article in the series will answer the question, “what’s the difference between sales, sales ledger and sales ledger control account?” This is a question I hear all too often and implies a lack of understanding about the difference between cash and credit transactions.

Now we have that though, we can compare and contrast the double entry needed for each and see, through looking at the T accounts, that the only difference is the timing.

Browse the full range of AAT study support resources here

Browse the full range of AAT study support resources here

The benefits of starting your own business

Posted by & filed under Career.

Imagine being able to work the hours you want and concentrate on the areas you enjoy with the clients you choose.

One of the biggest advantages of going self-employed, or setting up your own business, is the freedom to dictate both your working conditions, and the direction you want your career to take.

Getting started with your own business

While you need relevant experience to qualify as an AAT Licensed Bookkeeper or Accountant, you might be able to set up on your own sooner than you think.

Take Brandon Yeadon, who started studying for his AAT Level 3 qualification just four years ago at the age of 44. He is now running his own limited company, employing two people and meeting the needs of some 150 clients.

“I skipped AAT Level 2 because I already had some basic accountancy knowledge,” Yeadon said. “But while I was aware of the AAT licensing programme, I didn’t necessarily expect to take that route so soon after qualifying.

“However, I was offered a great opportunity by one of the accountants I was working with part time during my studies.

“She was planning to move abroad and offered to spend 18 months working with me to help me get the experience I needed to get my licence and be in a position to run the business when she left. It’s been an incredibly steep learning curve, but also a hugely rewarding experience” he said.

The licences

AAT offers two types of licence for AAT professional members looking to set up a business or provide services on a self-employed basis: AAT Licensed Bookkeeper and AAT Licensed Accountant.

Which licence suits your needs will depend on your qualifications and experience, as well as the services you wish to offer.

If you are keen to start offering services as soon as possible, for example, you can apply for Associate bookkeeping membership, or AATQB status, and become an AAT Licensed Bookkeeper initially – with the option of becoming a full member (MAAT) and applying to be an AAT Licensed Accountant once you have the relevant experience and qualifications under your belt.

It’s one way to start earning money even as you complete your studies, and could also help you get a job, as your initiative is likely to impress prospective employers.

Applying for a licence

Applying to become an AAT Licensed Bookkeeper or Accountant is easy.

The first step is to check out the information online and download the AAT Licensed member application form, then follow the guidance on how to complete the form.

As well as the relevant qualifications, you will have to prove a certain level of experience in each of the areas you want to work.

“While studying with AAT, you learn how things work in an ideal situation,” Yeadon said.

But in reality, things are rarely ideal!

“That’s why you can’t get an AAT licence without being able to demonstrate at least some experience.”

Building your business

Becoming an AAT licence holder does not just give you the right to offer self-employed services. It also gives you access to lots of resources designed to help you develop a successful business.

These include networking opportunities, free helplines, discounted CPD resources and the opportunity to use the AAT licensed member logo on your website and business materials.

So whether you are setting up as a sole trader, or planning to launch a business, there is plenty of support available.

Just remember you will need a wide variety of skills to be successful.

“The qualities you need to run your own accountancy business include good administrative skills, excellent people skills, a thirst for knowledge, and a good head for all the different types of software you need to use,” Yeadon said.

You also need to be prepared to work very hard.

“Working for yourself means you can mould the business around your other commitments,” Yeadon added.

“But it works both ways: you have to be flexible too. When something comes up, you have to be committed enough to be ready to drop everything and deal with it.

In summary: Yeadon’s 5 top tips

  1. Don’t rush into it. Having your own practice is highly rewarding, but the decision to set one up should not be taken lightly.
  2. Be prepared to work long hours. Running your own practice is brutally demanding and requires total dedication and a broad range of skills.
  3. Take advantage of AAT networking and Continuing Professional Development (CPD) events and resources.
  4. Find a mentor. I was lucky enough to have two strong mentors, which has been a huge help.
  5. If possible, have the funds in place to support yourself for a year or so while you build up your business.

Take your first step to getting licensed by checking out the Be Your Own Boss support online.

Getting your employees up to scratch on social media is more important than ever

Posted by & filed under Run your business.

No matter how many likes you can chalk up on Instagram with the perfect selfie, making the switch from your personal social media to generating an online strategy in a work context can be tricky.

But social media in a work context has many potential benefits. Here we gain expert insight and advice on how to harness the power of social media.

Encourage staff to raise their social media game

The use of social media apps during working hours is often a huge taboo for most employers but it doesn’t have to be. Fluency with Instagram, Facebook, LinkedIn and Twitter can also create business opportunities and boost a company’s brand if applied effectively.

Employers can encourage their staff to develop skills they may have taken for granted to boost not only their own professional profiles but also to raise their company’s social media game to maximum its impact on today’s digital landscape.

Tom Szekeres, a tech consultant and digital marketing expert, offers training on how businesses, from start-ups to corporates can leverage social media to improve brand-building, sales and communications by tailoring content to the right audience.

Be authentic

Szekeres stresses that “authenticity and being yourself” is a winner for both individuals and brands who want to harness the power of social media.

If you are aiming to develop a purposeful strategy then you must focus instead on revealing solutions to your clients’ problems and communicating valuable information to potential customers, argued Szekeres.

“If you want your content to do well then you need to ask yourself what people will stop and watch for more than a few seconds,” he advised.

The UK government’s digital service guidelines offer a helpful “playbook” on how to maximise your online business strategy, he said, but it’s also important to set your own boundaries before you set out about what you will and will not accept.

Personal vs professional use

Jodie Cook, a social media entrepreneur, who runs the JC Social Media Agency said that having familiarity with social media networks for personal use was beneficial but that it was crucial to keep in mind that social media in a business capacity was a different ball game.

“It’s important to keep learning and exploring all the functionalities available on each platform and the latest tactics,” she said.

Refusing to engage in social media is no longer an option in the business world and every company should have an idea of how to generate opportunities through a basic online presence.

Being able to develop ideas for company content that could help build traction online and portray the business well, will no doubt be a career boost.

Create opportunities to help less media-savvy colleagues

Millennials can be particularly helpful in the workplace by transforming their personal social media knowledge to help colleagues who are less comfortable with their online presence.

LinkedIn, the professional networking site, could be an ideal cross-generational starting point as it enables members of a team to easily make connections and links that could advance the business and reach a range of new audiences.

Building your own personal brand and professional profile can be done by creating a strong network and profile on prominent social networks, she said. “Making connections, building your influence and crafting your personal brand helps you stand out to potential employers and prospects.”

LinkedIn is an obvious place to start in a professional context because its focus is 100% work-related.

Mastering LinkedIn is essential

Knowing how to use LinkedIn is key, she stressed. Adding your qualifications, accolades and examples of your work will showcase your ability.

“Collecting endorsements and recommendations will also help portray you as an expert in your field. Sharing relevant content to your feed, on LinkedIn and other networks, helps portray you as someone who understands their work and is passionate about it.”

As Szekeres argued, a personal, authentic voice is key to making an impact, agreed Cook.

“An individual’s social media presence has become an extension of themselves and their personality. Just like you adopt a certain behaviour in a professional or commercial setting, your online behaviour needs to reflect this difference.”

Pay attention to detail

Bear in mind that any misspellings and grammatical errors are in full view and give a bad first impression especially in a business context. “Even if what you’re sharing is amazing, little mistakes give the impression you don’t take the time to check and take pride in your work,” cautioned Cook.

Finally, vary your use of social media. LinkedIn is an obvious place to start for companies as most professionals have a profile and are open to connecting.

However, other social media sites like Twitter can offer an excellent place to find out about local networking events and then connect with contacts afterwards.

“For accountants and those operating within the professional services, Facebook is likely to have some value if you can grow a business page. Facebook ads can be run to very specific audiences; even B2B businesses can generate interest and leads from them” said Cook.

Summary

It’s no longer just an option for businesses to utilise social media, it’s a must. By spending time getting your staff up to speed on the latest platforms and tactics this could help identify new opportunities and grow your contacts within the industry.

Further reading:

8 key ingredients for a positive business culture

Posted by & filed under Leadership.

Creating a positive culture is one thing. Keeping it is another matter entirely. Here’s how to do both.

Deloitte research found that 94% of executives and 88% of employees linked a strong workplace culture with business success.

So if you want to see a change in your bottom line, it’s time to get proactive.

But this raises the key question; how can you create a brilliant culture and keep it? We asked experts from a variety of industries to share their insights.

1. Encourage authenticity at all levels

“A good culture starts with authenticity,” says Sahar Hashemi OBE, serial entrepreneur and co-founder of Coffee Republic.

“Businesses used to have cultures where employees couldn’t be themselves; they had to put a ‘work face’ on. We need employees to display true people skills like empathy, curiosity, experimentation and vulnerability.”

Hashemi’s new book, Start Up Forever, looks at how large businesses can rediscover the agile, sustainable workplace cultures of innovative startups.

“It’s very much about the language that’s used,” Hashemi explains. “How often do we hear phrases like ‘We’ve always done it this way’? Successful leadership is about getting out there and immersing yourself in your client or customer base. It’s allowing yourself and your team to experiment with new ideas. It’s not being scared of failure.”

Key points:

  • Encourage staff to bring their authentic selves to work to create a culture of acceptance.
  • The language you use is very important; does it reflect the culture you want to foster?

2. Abandon the old business silo model

Hashemi goes on to advise that the way people work together needs to fundamentally change as well.

Staff working in isolated teams, or silos, can be detrimental to a sustainable workplace culture.

Employers, she advises, should discourage elitist, closed-knit groups and instead encourage a more open dialogue between staff and management. Collaboration should be embraced, not feared.

Key point: Collaboration and openness needs to be at the heart of all your business does.

3. Develop a clear business identity

David Carry is CEO of leadership coaching business Track Record. His staff, who all have Olympic sports backgrounds, work with management teams for over a year to develop their purpose and values.

He says entrepreneurs and startups should talk to employees about the identity of the business and acceptable behaviours and values right from the start. He calls this list of behaviours and values “guard rails”. “

Heather Wright, director at corporate training consultancy Advance Performance, agrees.

“The embedding of a workplace culture is constant. Discussions about the right behaviours need to start from the very beginning. So buy-in from everyone within the business is essential, as they will be the ones to either underline it or undermine it.”

Key point: Establish clear behaviours and values for your business identity, and then get buy-in from everyone in the business to solidify that identity.

4. Focus on ‘the Win’

‘The win’ is what you want to achieve with your business.

It will tell everyone in the firm what they want to “race towards” to ensure business success, says Carry, CEO of a leadership coaching business.

“You want to be super clear what that win is,” he explains. “No fudging numbers and no dodging halfway through. It will give staff a real sense of ownership and clarity about what they’re driving towards.”

Key point: Ensure everyone in the business is clear on the business objectives so they’re all working towards the same goal.

5. Hire slowly, fire quickly

Paul Ellis, managing director at e-procurement solutions provider Wax Digital, advocates due diligence when hiring: “Make sure new candidates fit with business culture, and carry out multiple interviews and written assessments to make sure they’re right.

“But it’s equally important to remove staff who aren’t the right fit as quickly as possible,” he goes on to say. “Disgruntled employees will influence others and have a negative effect on the working environment.”

Key point: Strive to bring the right people on board, as culture can be easily swayed by bad attitudes or disgruntled employees.

6. Learn to lead

The transition from team member to manager can be difficult, says accountancy coach Carol McLachlan; you need to change your mindset and keep your hands free to focus on your new team.

“A lot of people are used to measuring their worth in chargeable hours but, after promotion to manager or team leader, you can’t actually be measuring that anymore.”

Carry agrees: “It’s the difference between being selfish and selfless. It’s not about you delivering your best results any more. It’s now about maximising and leveraging the best results for the team.”

And during times of uncertainty, effective leadership and team management becomes even more crucial.

Key point: When team members progress into management levels, they need to adjust their mindset for the new role. Selfless managers who work for their team are essential to generating a great company culture.

7. Learn with your team

McLachlan urges managers to adopt an enquiry-led approach, where they learn and grow with their team, rather than a more autocratic approach.

Doing so fosters an environment of positive collaboration, she says: “Simply telling someone to do something in a particular way won’t land very well. You as a manager are looking at the world through a different lens from the person you’re working with, so it’s about fostering a learning culture, where everyone works together and helps each other out.”

Also spend time getting to know your team to get an idea of how each individual performs best, Wright advises. Identify the ‘unofficial leaders’, the influencers who can play a key role in getting buy-in from the rest of the team and keeping everyone focused.

Key points:

  • Managers need to adopt a growth mindset, ensuring they’re striving for continual development and progress alongside their team.
  • Focus on creating an environment of positive collaboration, where people within the team collaborate and help each other.

8. Deal with problems as they arise

“Don’t wait until the annual appraisal to tell someone they’ve been doing something wrong for the past year, because that’s bad leadership,” says Carry. “There need to be upfront conversations around behaviour so staff are on board with what’s expected of them and each other.”

Managers should address both good and bad behaviours as they happen, making sure to give specific examples. “It’s important to do both, as one without the other is counter-intuitive,” Carry adds.

Key point: When focussing on creating a great company culture, it’s important to give timely feedback when people are doing well, or could use improvement. It’s up to you to keep things on track.

In summary:

The culture of a company has been shown to strongly correlate with business success, but creating a fantastic culture and maintaining it takes work.

Our experts believe this is definitely time well spent, with leadership coach David Carry, working with management teams for over a year just to develop the right values.

How are you performing in the eight key areas identified above? Are your staff thriving in a collaborative environment? Or does your team need more of a helping hand to get it right?

For further guidance on working on improving your company culture, check out our resources below:

Tackling MTD as a larger organisation

Posted by & filed under Making Tax Digital.

Here, three large companies explain how they’ve overcome the challenges of MTD, from tech troubleshooting to staff training.

When Making Tax Digital was first announced in 2015, businesses were concerned that keeping digital records and sending quarterly updates to HMRC would double their admin, plus involve splashing out on costly new software and training.

Many larger accountancy firms started preparing early, such as Campbell Dallas, which has eight offices across Scotland. “We recognised this would be a major challenge,” says Campbell Dallas partner Mark Pryce. “We knew the industry was going to fundamentally change and it’d cause a massive shift in the way we do business.”

The seismic upheavals have meant firms have had to adapt accordingly. Which hasn’t been without difficulty in some places, here we speak to three companies who have conquered their initial issues.

The software switch

One of the key requirements of MTD is that all accounting records must be kept digitally and subsequent returns submitted to HMRC using MTD-compatible software.

Although, it has to be acknowledged that, at the moment this is only for VAT purposes and then only for those with VAT-able turnover over £85,000 (the mandated). For most firms, this has meant migrating to cloud-based software.

“Suddenly, the market was swamped by hundreds of providers, offering software from anything from £5 to £5,000,” remembers Damian Shirley, VAT partner, Cooper Parry, which chose Microsoft Dynamics 365 Business Central. “For any firms in the market at the time, it must have been very confusing for them.”

Campbell Dallas opted for Xero, one of the most popular cloud-based accounting platforms, which is used by more than 1.5m people in 180 countries. To enforce the changes, the Scottish firm hired a digital transformation manager.

For information taken from spreadsheets or clients’ in-house record-keeping systems, companies have used MTD-compatible ‘bridging software’ that links spreadsheets with HMRC. Copper Parry uses Abratax (“a very seamless transition,” says Shirley).

Key employer takeaway:

  • If you haven’t done so already, choose your cloud accounting software wisely and make sure it’s MTD-compatible. Check out this list here. Also, ensure all staff are trained up.

Getting clients on board

Once all the tech had been installed and staff trained with the new system, it was time to start communicating MTD’s new digital ways of working with clients. This posed new challenges. Switching to new software was a scary prospect for many small businesses.

Woolgar remembers, “in the first year we had a few issues with clients getting to grips with a new system. There was some unhappiness, as they’d been happy with the way they’d been doing things.”

The key to getting these customers on board? Publicity. In 2016, Campbell Dallas started publishing blogs on their website and hosting workshops. “Half of the workshops would be on MTD; the other half on the benefits of Xero,” recalls Pryce. Meanwhile, Cooper Parry informed their clients about MTD via a series of webinars, while Armstrong Watson delivered training sessions.

Campbell Dallas also segmented their client base in order to contact them about MTD changes.

“We took every single client in our contact list and stratified them into different groups,” remembers Pryce. “We identified those who’d already adopted the cloud. We also contacted those who’d said they weren’t sure about the cloud, and asked them about upgrading. We also had clients who kept manual records who weren’t doing anything. We contacted them to make sure they understood the implications of doing nothing or leaving it until the last minute.”

Key employer takeaway:

  • Notify your clients about MTD. This could be done by publishing blog posts on your website, or social media posts. Try segmenting your client list to identify which clients are affected by MTD, before contacting them to tell them how they’ll be affected and whether they’d need to update their software.

The next steps

“Being MTD-ready has taken us a long time – two years,” says Pryce. “But it’s an investment that’ll pay off in the long run for us. Our clients are ready seeing benefits. Being able to see forecasts through cloud accounting, or have an app that deals with stock is making their lives much easier. Many of them have been forced into this because of MTD.”

Woolgar has witnessed similar changes among Armstrong Watson’s clients. “We’re getting people moving away from spreadsheets and presenting receipts in a bag at year’s end,” he says.

But the hard work’s not over yet. Although MTD is currently mandatory for the above £85,000 annual turnover VAT clients, it won’t be rolled out to other organisations, or widen to include other taxes until April 2021, at the earliest.

“We should be passing the message to clients that they need to be ready,” says Campbell Dallas partner Mark Pryce . “Instead of having receipts down the back of the sofa or digging out old dividend vouchers, they’ll be able to see their personal tax returns on a cloud-based system that’ll make their lives easier.”

“We’re going to be very busy for the next six months or so,” predicts Woolgar. “When the bridging software ceases to work, you’ll see more clients wanting to move. Equally, you’ll see the pen-and-paper brigade who’ve taken MTD on themselves want accountants to take it over.”

Key employer takeaway:

  • Be prepared. Just because your mandated VAT-clients have stated to submit MTD-compliant VAT returns, MTD isn’t over yet. It’s a good idea to keep an eye on where MTD might go next so that you can keep you clients posted well ahead of the next set of changes.

In summary

Given MTD is the biggest shake-up to the UK’s tax system in generations, it’s no surprise that there have been teething troubles for accountancy practices and their clients alike.

However, it’s clear that those firms who remain prepared, both by having MTD-compliant software and ensuring their clients are regularly informed about changes, will fare better than most. For more info, click here.