BDO: using digital skills to become more than an accountant

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BDO is now the world’s largest professional services network outside the Big 4.

Mark Sykes, Partner and Head of BDODrive UK, talks about digital skills, the need for brand differentiation and the importance of putting young accountants into interesting and dynamic scenarios.

Becoming a successful firm

“To be a successful large accountancy firm you need to be able to see things in the round,” says Sykes. “So BDODrive is about seeing what challenges businesses have, and how we can help them.”

Focused primarily in the UK but also global, “it’s about asking – how can we bring our worldwide expertise and make it relevant to everyday business life?”

Some of those challenges are about helping management, “from financial accounts to decision making,” and some are about acting “as external support to clients and helping them break down obstacles to growth.”

This in-the-round view means recognising when there is a skills gap in-house. “For example we might bring in experts from the wider firm to help clients on particular areas of VAT or tax – or we might produce dashboards to improve information and help with decision making.”

“Why” as well as “how”

Close to Sykes’s heart is the belief that “businesses that have a close relationship with their accountant are more likely to succeed, so it’s our job to help businesses do the best they can.”

It’s here that the importance of digital skills comes to the fore.

“We effectively have a GP’s role. We don’t claim to know absolutely everything, but it’s about spotting gaps and sensing opportunities.”

In practice, it’s actually really hard to be able to do this well, Sykes says, and has come about because of the way the industry has evolved.

Benefiting from technological changes

“As financial legislation, particularly tax, became more complex, all accountants realised they had to specialise. So they built specialist departments, which then got sub-divided as complexities continued to evolve, and then you’re faced with a dilemma – what kind of specialist do you want to be, when your overall desire is to be there for your clients?”   

Today’s digital landscape helps BDO go back to that original model of being there for clients.

“Digital technology does various things. It reduces the amount of time spent on process, by automating more and by judiciously employing machine learning. But it also enables us to connect more. We can quickly reach colleagues in other departments, ensure the right person is available, and track where we are.”

The technology helps BDO operationally, “and whilst this means we need to be very good at using tech, it means the time that is freed up can be spent helping clients. And you can’t do the latter without the former.”   

Heads up – the BDO strategy

BDODrive’s strategy is, unusually for such a large company, to move entirely to cloud-based.

“We are partners with Xero and the reason I single them out is that they were key in enabling us to make the necessary changes – they spent a lot of time helping us equip the team. The challenge was to work closely alongside the software provider.”

As Sykes explains, the “old school” method was, by necessity, “to send information to the client; the client made changes and sent it back to us; then we sent it back to them.”

This “you do yours and we do ours” approach was slow and ineffective – “the world doesn’t work that way, and the cloud has made a massive difference in terms of parallel working. We can be looking at the same thing the client is looking at, at the same time. We can see the problem straightaway, and we can see how to fix it – not a few days down the line.”    

All this enormously helps the 21st century focus on the accountant becoming a business advisor.

“If you ask any accountant why they went into the industry, they will always say it was because they wanted to be advising businesses, but process got in the way. Technology has revolutionised that and means we can focus once more on advising.”

This does not, of course, mean leaving the numbers behind. “Compliance is sometimes looked upon as a bit of a dirty word – but accountants are there to help businesses stay on the right side of wrong. We’re there to look after them, and if you need to say, you’re going to run out of cash in the next month – or you’re not being as responsible as you think you are – that’s absolutely the right thing for an accountant to be saying to their client.”

The future of accounting 

The focus on technology up-front means that BDO can ensure young employees get to undertake interesting work, soon after recruitment.

“In terms of attracting talent, we want our trainees to be engaging with clients early – and we also want them to be using their brains and skills to be different. There is no factory mind-set, no sense of being a standard accountant. We want people who are individuals: they’re there to be themselves and we want to empower that.”  

Sykes offers an example of this in action.

“What does adding real value mean, and what does it look like? Say I have a client who’s told me they want to expand into China. You can either say a variation on – that sounds lovely, and good luck. Or you can say – I want to help you.

“ We can say, have you thought about what the costs of expanding into China are? Do you need an office there? Do you have the right resources? What are the tax implications? Do you know who you need to speak to, and do you know what audience you need to target when you get there?”

The BDO Accelerate programme

The BDO Accelerate programme was set up with this kind of thing in mind. “At this point, we can say – we can connect you with people there. We can help you on your way and introduce you to the right places, people and ideas and get all the legals right.” In this sense, “we can be like an in-house finance adviser who’s passionate about the expansion. That, for me, is what advisory is all about.”    

Finally, how does differentiating your brand in the ways we’ve discussed – attention from individual accountants and technological proficiency – ensure clients keep returning to you, instead of going elsewhere?

“Our evidence is that this does work. We are not just there to give accountancy advice – we’re really focused on ways we can help clients. Getting the numbers right is only part of the relationship, and this approach massively changes the proposition.”

Finding the sweet spot between advisory and compliance

BDO wants to be “passionate, engaged, and focused on our clients. And that’s exciting – we don’t come into work each day for process. We are client-centric and we are about adding value to businesses, whilst reducing the stresses that affect them.”   

Ultimately, “we are unashamedly accountants – we are about navigating the day-to-day. But having said that, BDO is focused on finding the sweet spot between advisory and compliance. We’re not just consultants; we offer something very special.”

Creating a support network that works

Posted by & filed under Ready, Set, Go.

Tackling a course on your own can be daunting.

You can minimise the challenges of studying for your qualifications by establishing a support network early on in your studies. Here are some ideas, which could help…

1. Connect with your tutor

Make full use of the help your tutor has to offer. Engage with them early on and make an effort to keep lines of communication open as your course progresses, it will make things easier when you need to call on them for help.

Share your learning goals with your tutor at the outset and get their input to help you customise your study plan.

It’s good to try and solve problems yourself. But if you are stuck, get in touch with your tutor.

“We often find that students can be reluctant to ask questions, so we encourage them to ask as much as possible. It doesn’t matter how trivial it seems to you, just ask away,” says Caroline Warburton, AAT course director at iCount.

Help them to help you by asking for specific help. Try and pinpoint your difficultly, for example:

  • I understand everything up to this point…
  • I understand this part, but not this…

Don’t forget to thank them for the feedback and support afterwards.

2. Join AAT’s student forum

If you haven’t already done so, sign up to the AAT student forum.

AAT’s social media team will need to approve you. If you already communicate with AAT via email, you can use the same email address for your application.

As Online Community Executive, Paul Combes puts it: “You will find other students going through the same subjects and modules who you can talk to and just support each other”.

You can also find members who have gone through it all. The search function also allows you to find historic topics that may help answer a question.

3. Buddy up

Finding a study partner is a great way to increase your motivation and raise your chances of a pass.

Ideally you will be able to pair up with someone from your course. If not, look for someone suitable from a forum or Facebook group.

“What’s really good about having a study buddy is that it helps you learn,” says Catherine Littler, a trainer and consultant for AAT. “If you have a study buddy to discuss topics with, you benefit from having to put your ideas into words; if you have to explain a subject to your study partner, then you have to understand it – and thus you learn it”.

Learn more about finding the perfect study buddy.

4. Look out for webinars

Webinars are another way to top up your knowledge. Some training providers run free webinars on topics ranging from general study strategy, to advice around specific assessments. You can find out about these on training provider websites or support groups.

Samantha Hannigan of Premier Training says, “There are webinars that are free and open to all. We also run a mentoring service, which is free to our members and available for a fee to those who aren’t customers.”

5. Friends and family

Sometimes all you need is a little boost to get you over a hump. Family and friends may not be able to help you with advanced tax or bookkeeping techniques, but as people who believe in you, they are an invaluable resource.

Make full use of this network by sharing your goals, updating them on your progress and reaching out when you need encouragement or general advice.

Browse the full range of AAT study support resources here

What NOT to do to pass your exams

Posted by & filed under Study tips.

We get bombarded with advice on how to cope with tests, especially when you’re trying to revise and focus up. But it’s sometimes easier to look at what NOT to do in order to ensure you do your very best.

Avoiding all of the following bad habits will significantly boost your chances of success.

Don’t plan ahead

Failing to plan is the single biggest cause of stress when it comes to exams. According to the mental health charity Mind, it’s a good idea to make a list of all the things that you have to do and then arrange them in order of importance.

Avoid trying to do too much all at once. Instead, take plenty of breaks and take things as slowly as possible, splitting up your learning into manageable chunks. This approach may seem counter-intuitive but it will actually make you far more productive. If you try to learn everything at the last minute, you’ll only experience more pressure.

Of course, this strategy only really works if you have given yourself enough time to carry out all the revision you need to do so that you feel fully prepared. Work backwards from the date of the exam and put together a schedule that allows you to get it all done.

Don’t fall into the common trap of revising areas that you already know well. Although this can make it seem as though you are making progress, you’ll be setting yourself up for a fall as you’ll still struggle in other areas once the exam starts.

Keep it to yourself

It’s not surprising that a popular theme within Mental Health Awareness Week (16-22 May) is relationships, as talking things through with someone who knows the pressure you’re under can help put things into perspective.

Confiding in someone you trust who will be supportive helps to alleviate stress. Keeping it all to yourself is the best possible way to ensure your stress levels are as high as possible.

Another bad exam habit is believing you can achieve the impossible:

  • reading an entire text book in a day
  • staying up for three nights in a row in order to cram in more information
  • or trying to review a wide range of disparate topics in a matter of a few hours.

Talking to someone about what you’re going through, and your plans, can make it far easier to see the error of your ways.

Neglect your health and diet

According to psychologists, we can only fully concentrate for up to 45 minutes at a time. If you regularly work longer than this without a break, this is a habit you need to change. Though you may feel guilty about stepping away from your revision, breaks will help you to retain the information more easily.

Stress may make you crave sugar and shun the idea of getting any exercise, but these bad habits will also cost you in the long run. Instead, eat healthy snacks to keep your blood sugar level right and drink plenty of water as being fully hydrated will make it easier for your brain to function correctly.

Feeling that you need to cut all the fun out of your life in the run-up to your exams is another habit you absolutely want to avoid. While it helps if you have allowed enough time to have the occasional bit of fun, no matter how much pressure you are under, you will cope far better if you take a little time to do the things you enjoy alongside your work.

According to a research paper published in the Journal of Personality and Social Psychology in June 2013, authored by Wendy Wood, David Neal and Aimee Drolet, we don’t only fall back on bad habits during times of stress but good ones as well. This means that the more you can make good habits – exercise, healthy eating, getting the right amount of sleep – a part of your regular routine, the more likely you are to be able to maintain them regardless of how much pressure you find yourself under.

Panic!

When it comes to the exams themselves, according to Dr Dawn Hamilton of the Institute for Stress Management, the best way to eliminate any feeling of panic you may have is to simply close your eyes and take a number of long, slow deep breaths.

This kind of deep breathing will help relax your entire nervous system.

You can also try giving yourself a pep talk, repeating phrases like “I know I’m going to do well”. If you get stuck on a question, deep breathing for a minute or so will also help you avoid getting into a panic (which makes it harder to think clearly). If this doesn’t help, don’t dwell too long – move on to another question and come back to the one that caused you trouble later on.

If you really want to push yourself, even when it’s all over, be sure to go over every aspect of the exam, focus on all the things you did wrong and spend as much time as possible in the company of those who felt it all went really well.

Alternatively, at the end of the exam, focus on the things you did well and don’t let yourself succumb to negative thoughts.

Read more on prepping for assessments;

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Seven study secrets from AAT students

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What better way to supercharge your studies than to learn from those who have been there, done it, and now proudly wear the T-shirt?

AAT qualifications offer a great deal of flexibility with part-time and full-time and distance learning options. As well as the option to book assessments when you are ready and available.

We asked seven students to share the priceless lessons from their study experiences.

Plan for the long haul

  • Pearl Belcher AATQB

Studying for your AAT assessments is a marathon, not a sprint.

Before you start, create a long-term calendar that takes life events, holidays, family commitments and similar into consideration.

Use this to help you judge how much time you’ll be able to dedicate to studying week-by-week. You can also add different study and assessment milestones to the calendar to help you plan how long your studies will take overall. For example, you might want to clear two weeks in the lead up to an assessment.

“Make sure you can dedicate a whole 12-18 months to study. I found that writing out a study plan for each week, so that I could also fit in gym time and spending time relaxing with my husband was really important. I wrote out all the mock assessments and tests that Accountancy Learning provided, and I would set myself a goal date for each one.”

How to deal with disruption

  • Simon Collin AATQB

Simon Collin chose distance learning for his Foundation Certificate in Bookkeeping. It could help him change career, and would fit in with his wife’s work schedule, looking after his kids and parents, including his father who was very ill with dementia at the time.

“It was, and is, hard at times, as you are home alone and have your head deep in books, studying can become very tiresome. But if you have an aim, and remember that, it does drive you.

“I passed my advanced stage of bookkeeping and was awarded the designatory letter AATQB, and continued with the rest of course, during which time – last September – my father sadly passed away. Kaplan, with whom I am studying, were very helpful and have lengthened my course time because of my father and because I’m now trying to help my surviving parent.”

Study every day, no matter how much

  • Elena Brown – student

Getting into the habit of studying every day – even if it’s for a short time – can help build consistency. If you dip in and out of study, you can waste time relearning things you’ve looked at before and forgotten.

Setting a target to do some work on your AAT study once a day can help you retain and build your knowledge. It will help deepen your understanding of the concepts you’re learning and how you work best – are you a morning or an evening student? for example – and at what pace.

“It’s easy to let a day slip but try to do it every day, even if it’s just for an hour. If you know you’ve got other commitments or people to see, first you need to deserve it. First comes your study, everything else comes after.

“If you have to start the same book a few times it can make you feel like giving up, but if you do, you’ll feel awful. The amount you pay, the time, the effort – it will just increase if you don’t complete it. The Georgians have a saying: the root of education is very bitter but it will sweeten. It’s worth every minute, every penny to study and have your qualification.”

Don’t let fear take over

  • Pete Freeman MAAT/AATQB

When it comes to written questions for the Advanced Diploma, for example, you will being tested on how clearly and concisely you can show your knowledge and what you’ve learned.

Unlike school assessments, if you don’t pass, you don’t have to wait to take a resit. While that doesn’t mean you’ll want to do endless repeats, it should be used to take away some of those pre-exam nerves.

“No one wants to fail an (assessment) – and they rarely do – but you can just retake it. There’s no penalty so try not to ‘big up’ failure in your head,

“I did this qualification through difficult circumstances which shows if you want to do it you can. It’s about believing in yourself and having that qualification to aim for at the end. If you get something wrong, treat it as an opportunity to learn. That way getting something wrong doesn’t have to be a negative.”

Seek out alternative materials to broaden your understanding

  • Natasha Fielden AATQB

You’ll be given study materials and practice papers by your training provider. There’s a good thread on this in the AAT’s discussion forum – remember, previous students may have materials to sell or offload.

The more mock assessment questions you have, the more you can practice your answers and assessment technique. Additional study materials will also offer new examples and different explanations and perspectives for the concepts you’re learning. Find workbooks that match your way of learning and processing information.

“I’m still not sure what was the best way of learning for me. Sometimes I made notes, then condensed them into revision cards, and always did examples but I bought a couple of extra practice books for Financial Statements and Tax which helped. Sometimes a different book explained it more clearly.”

Use your tutor

  • Samantha Blount MAAT/AATQB

Think about what helps motivate you – and what role your tutor can play. They are part of your support network, along with family, friends, fellow students and, if applicable, your employer.

If you need more support or maybe more or less chasing up, ask for it. If something isn’t working, contact your tutor or course provider and make a change. Don’t suffer in silence or ignore the impact a mismatch could have on your studies and assessment success.

“I had a couple of issues with my distance learning in the final year. I didn’t gel with the tutor I was allocated. They were there to provide online/email support. But I’m someone that needs to be held accountable, I need a little nudge as I struggle with my confidence. I was honest with the training provider about it and they then allocated me to someone else, who was amazing.

“But be kind when asking to be moved as your tutor may not realise that they aren’t doing the best for you! Your tutors are humans too and may feel they have let you down but this doesn’t need to be the case if you’re honest and upfront.”

Believe in yourself – and be patient

  • Philip Shergold MAAT

Some days studying will come naturally and you’ll quickly grasp every new idea that’s thrown at you. On other days, you may feel demotivated or that you’ll never understand specific concepts or workings.

Philip Shergold’s advice after studying all levels of AAT is, don’t be deterred. Difficulties are normal. Step away from your study or temporarily move onto something else. Sometimes you just need a fresh pair of eyes on the problem.

Be patient with yourself and come back to the things you’ve found most difficult, spending more time with the relevant materials and, if necessary, asking your tutor for support.

“Whenever I would get stuck on something I would just come back to it the next day and either re-read my textbook or watch the corresponding video lecture that my Distance Learning Provider had given me access to.

“Most of the time it would sink in, but on the rare occasion I would contact my tutor and they help explain things in a different perspective. I have been blessed with an excellent tutor who seems to know exactly how to word things to make the difficult concepts click.”

Browse the full range of AAT study support resources here

How to find hidden time in your day to study

Posted by & filed under Ready, Set, Go.

Although we all get the same 24 hours in a day – which means we all have the same amount of time to work as Beyoncé – you’re not alone if you sometimes struggle to get everything done.

Luckily, making some simple adjustments is all that’s necessary to start getting the most out of your day. If you identify quiet moments and use them wisely, your studies can fit around even the busiest of schedules.

Step 1: decide what’s important

“Most people don’t have a clue how many commitments they’ve signed up for and how much time they cost,” says David Allen, author of Getting Things Done: The Art of Stress-free Productivity.

“They’re in a constant emergency mode, trying to solve problems as they happen. Instead, you need to sit down on a weekly basis to plan out your work so that deadlines don’t overwhelm you.”

Keeping a time log is a good way to set priorities. During a typical work day, note down what you’re doing during specific time slots. The next day, rate each activity on a scale from one to three, with one indicating an activity that’s a great use of your time, and three representing time-wasting activities.

Focus on moments you spend staring at your phone or aimlessly watching TV, and transform them into study time.

Step 2: pick your ideal study moment

“Getting up earlier and spending an hour studying at the beginning of the day before going to work is one of the best strategies,” says Elizabeth Saunders, CEO of time management coaching company Real Life E.

“Many think that studying after work is effective, but that isn’t always the case. The majority of people are really tired by the end of their work day, and that can make studying more difficult.”

If you can’t face getting up earlier in the morning, there are still some other hidden time pockets to turn into study time.

You could devote one morning each weekend to your studies and go to a coffee shop or library to study for a few hours.

Or maybe you’re one of those rare people who do function better after dark. All it takes to discover your best study time is a simple test to check if you’re a morning or evening person.

Step 3: make time to relax

It may feel counterintuitive to schedule downtime, but it’s actually the best way to boost your productivity.

A 2016 study by the University of New South Wales found that sleep deprivation can have the same negative effects on response speed and accuracy as being drunk. Clare Evans, author of Time Management for Dummies, recommends breaks as a means of claiming hidden time to study.

“With a more relaxed mind, you’ve got more energy and you’ll feel more effective when you’re studying,” she says.

“Don’t work when you’re tired and don’t work excessively long hours. You won’t take in as much information, and you’ll just become more and more ineffective.”

Step 4: say no

If you can’t remember when you last had a quiet night in, consider whether you need to get better at saying no.

It’s important to spend time with your friends and help them out when they need you, but if you’re left without time for yourself you run the risk of ending up without time to study.

Don’t feel like you’re rejecting people by saying no and never get tricked into defending your choice.

If you find it hard to say no, change your body language to appear more confident.

  • stand up straight
  • speak clearly
  • make eye contact
  • people will respect your decision.

Step 5: imagine your future

Finding and using hidden time takes persistence: you’ll need to keep making the right choices to create study time as you progress with your qualification.

If your phone or that new Netflix series are just too tempting, remember why you chose to pursue your qualification in the first place.

Although it’s true that you can’t “make” more time, you can learn to use the time you have more effectively. It all comes down to identifying hidden pockets of study time, cutting down on time-wasting activities, and sticking to your schedule.

This might not make you into a world-famous pop star, but it will help you succeed in your studies – with enough time left to master the Single Ladies dance.

Browse the full range of AAT study support resources here

Career profile: management accountant

Posted by & filed under Career, Career profiles.

Ever considered becoming a management accountant? Here’s what to expect.

Management accountants are trusted to guide critical business decisions and drive strong business performance. They understand how the different parts of the business need to work together, combining financial and business expertise to achieve sustainable business success. While many chartered global management accountants work in the finance department, others put their broader business training to use across the organisation, in roles including Board Director, Chairman or CEO.

1. Planning

A key focus of management accounting is planning for the future. Management accountants develop more detailed reports than financial accountants. These can include information about specific products, market reach and regional information. Based on the information obtained from reports such as surveys, budgets or competitor analysis, managers can set objectives and outline how they will be achieved.

Rob Johnson, Strategic Planning Manager at EE explains that EE have a five year plan and part of his role is to own and drive forward key elements ensuring they’re aligned to company strategy. “The work that underpins the plan needs to be completed with granularity and rigour to ensure optimised decision making, and part of my role is to ensure this transpires.”

2. Decision making

The quality of a business’s decision making is often how it will out-perform competitors. Management accountants are able to analyze data in the context of the business, understanding what data is relevant and meaningful to make key decisions.

Management accountants provide information to decision makers which understand the business, the market and factors in prior knowledge and experience of the business’s needs and challenges. Due to the training management accountants receive they are able to provide a unique service which technology cannot match.

Joanne Beattie Assistant, Financial Controller at Nestle describes the purpose of her current role is to, “provide a comprehensive support service to the factory, to generate data which allows the factory management team to make informed decisions.”

3. Problem solving

Contrary to financial accounting, which focuses on historical reports, management accounting considers actual performance and compares it to goals and the future outlook. This information is used to identify issues that may arise in budgets or production changes and develop alternative strategies. Sometimes, the accounting information that a company has may not be sufficient in solving a problem, so management accounting gives managers the option of requesting additional information with limited time constraints.

John Anderson, Finance lead at the Department of Transport, explains that, “the problem-solving techniques which I picked up on the CIMA course have been invaluable to me in approaching and tackling issues which often involve high levels of ambiguity, complexity, and uncertainty.”

4. Strategy

Management accountants must assess risk and implement strategy through planning, budgeting, and forecasting. In order to report on financial and non-financial measures of performance they must understand the financial and operational sides of the business.

Management accountants often take an active role in the day-to-day and strategic decisions that face an organisation. There is a growing emphasis on providing non-financial performance measures. Because of this they are also considered strategic business partners in the management of an organisation’s activities.

Hayley Hunton, Senior Finance Manager, at Bentley Motors Ltd explains that as a management accountant she is constantly forward looking and has to consider the impact of strategic decisions on the wider business. “My current role is to manage a team within engineering finance who control project spend for the various functions within engineering. This includes the production of the monthly R&D report against budgets, forecasts and strategic plans.”

The evolving role of the management accountant

The role of the management accountant is changing to provide better support for decision making and performance management. The production of standard reports (such as end-of-month financials, variance analysis, KPIs and regulatory filings) is becoming more automated. Demand is growing for management accountants because they can provide ongoing insights, from both financial and non-financial data to help which helps organisations succeed and grow in an increasingly competitive climate.

How to build on strong bookkeeping foundations

Posted by & filed under Bookkeepers.

Gareth John, executive chairman and director of First Intuition’s Accountancy Training College, talks to senior accountants all the time about which accountancy skills are most valuable.

Indeed, we asked a number of senior accountants what accounting knowledge matters most as you progress through your career, and they all agreed that the answer was knowledge of bookkeeping.

That bookkeeping knowledge is the foundation on which so many tasks in accountancy rely. But bookkeeping skills alone aren’t enough to really propel your career ahead – that knowledge needs to be paired with crucial soft skills in order for you to excel. Here are the key traits that those senior accountants say will really complement your bookkeeping knowledge as you progress through your career.

Bookkeeping plus strong communication skills

Having a technical knowledge of debits and credits is important, says Joanne Wilkinson, FD of North Brewing Group, but it won’t matter if you aren’t personable: “Being human about numbers is key.” Sam Ellis, head of finance at InterWorks Europe, stresses that this includes the ability to listen, as well as talk. “If you aren’t able to communicate well – even with the best will in the world, all the talent you could ever wish for and all the best ideas – you can easily find yourself floundering,” he adds.

Paul Bulpitt, co-founder of accountancy firm The Wow Company agrees: “Specifically, you need to be able to take complex ideas and explain them in a way people can understand and gain insight from.” Part of good communication is the ability to put yourself in stakeholders’ shoes, says accountant, author and mentor Anna Goodwin: “Many business owners feel unhappy and fearful about their numbers, so it is essential that you can put them at ease.”

Bookkeeping plus an analytical mind

If you can use your analytical thinking to dig into the books, you’ll be highly valued, says Ellis. “The analytical aspect implies good reasoning and logic, and backing everything up with credible data. Curiosity is exactly that – constant questioning and asking why, what if and how.”

Analytical thinking is a skill that you can practice, and being curious is a habit that you should definitely cultivate, says South African accountant Peter Sean Magner: “You won’t always know the answer but, with a questioning mind, you will be a lot closer to figuring it out. It amazes me how many people struggle to think through problems.”

Bookkeeping plus creativity

While an analytical mind will help you dig into data and identify problems, creativity will help you zero in on a solution, based on your reading of the books.

Again, you can learn to think creatively, even if you don’t consider yourself to be a creative thinker to begin with. One aspect of creativity is being able to take existing knowledge and adapt it to new situations, which is especially helpful when you’re first starting out. “Accountants have the knowledge but frequently don’t think far enough outside the box to devise unique solutions for a business,” says Goodwin. “It is essential to think about a business in a holistic way – and not just the numbers.”

One of the best ways to learn to think more creatively is to observe and ask questions of more experienced accountants.

Bookkeeping plus confidence

Accountants often aren’t the most confident people. But you’ll need to feel confident – and have an analytical approach – if you’re going to get to the heart of an organisation’s problems and communicate the solutions effectively. Confidence can also help you make connections that will aid you in your career, says Goodwin. “Accountants on the whole prefer to be tucked away in an office, rather than getting out there. When I network at events, I don’t often come across accountants,” she says. But remember: the more you get out there, the more natural it will come to feel.

Bookkeeping plus presentation skills

Presentation and communication skills are linked, but, while it’s one thing to be great at writing emails, good on the phone and personable in meetings, getting up in front of a group of people and presenting to them is a whole different kettle of fish.

You need to use your bookkeeping knowledge to pick out the salient points for directors. And you’ll need to think visually when preparing those slides. “It’s crucial that you, the keeper of core financial data, present it clearly and simply,” says Andy Cotgreave, author of The Big Book of Dashboards.

So make text large and easy to read, and stick to conveying one key piece of information at a time. Use colour to highlight the bits that are most important. Speak clearly and slowly, and make eye contact with your audience. And make sure everyone has taken the information in before you move on.

A good way to develop your business knowledge is simply to ask questions of clients or the non-accountants that you work with, and ask them if there are specific areas where they need help.

Understanding more about double-entry bookkeeping

Posted by & filed under Study tips.

Double-entry bookkeeping is one of the commonest stumbling blocks that accounting students face on the road to qualifying.

Most experienced accountants would agree that it’s difficult to get your head around double-entry when you first start out.

AAT tutor Gill Myers is one of them: “Double-entry is unlike anything you’re likely to have come across before. People who are good at maths often think they’ll be good at accountancy but, while maths obviously helps, being organised and methodical is probably more helpful.”

While you might be struggling with what to debit and credit, and where, remember that every accountant lacked that knowledge at some point – so it can be learned.

Use your own experiences to understand bookkeeping

And, if you’re careful with your own cash, you may get the knack of double-entry bookkeeping quicker than others.

“People who care about their own money are likely to care about accounting for someone else’s,” says Myers. “If you regularly check your bank statements, then you’re likely to be a good candidate.”

But knowing the ins and outs of your own bank account could also cause confusion, as you’ll be used to a ‘credit’ meaning there’s money in your account. Particularly when it comes to the bank account, this is one of the biggest head-scratchers for someone new to bookkeeping.

Debits to increase, credits to decrease

“You have to switch your thought process from seeing transactions from a personal point of view to seeing them from a business’ point of view,” Myers explains.

“If your business is the bank, a credit means the balance is owed to the account holder, as it’s a liability for the bank. If you are the account holder, then you have an asset, as you have money in the account and are not overdrawn, so your version of the bank’s transactions would show a debit balance.”

Once students get their heads around the bank account, that’s when double-entry starts to click.

“Once you can see things from a business perspective, using debits to increase the organisation’s bank account and credits to decrease it, then the rules of double-entry (every transaction has two effects that are equal, opposite and balancing) help you work out which other accounts to use,” says Myers.

Make use of flash cards

Thinking about the bank account isn’t the only way in which double entry can start to make sense. You can also use visual aids to help picture where different transactions sit within the ledger.

“Using flash cards is really handy for learning double-entry,” says AAT tutor Cath Littler. “It brings a practical element to working out what sits where in the different accounts. I gave my students a set of flash cards to work with in class, some representing the accounts, and others representing the elements that go into the accounts.

At the end of the session, they refused to give them back – they found them that useful.”

Practice will make perfect

Above all, Myers and Littler agree that the more you actually do double-entry, the more sense it will start to make.

“Practice is the key to getting it right at the end of the day,” says Littler.

“The more you do it, the easier it’ll become. It will become second nature eventually.”

These tips were written by AAT tutors Gill Myers and Cath Littler.

This article appeared in our summer 2018 issue of 20 magazine.

Read more on double-entry bookkeeping;

Browse the full range of AAT study support resources here

Meet the mentor: Chris Argent, CFO and Digital-Transformation Guru

Posted by & filed under Inspiring stories.

Kofi Abedi-Boafo is at the very beginning of his career. He’s about to start a traineeship at accounting firm BDO when he meets Chris Argent, a CFO and digital-transformation guru.

Kofi got into accountancy through the charity Leadership Through Sport & Business, which offers a combination of an AAT apprenticeship and training in core workplace skills.

What Kofi really wants to work out is where he would like to end up. Chris is more than happy to help him come up with a plan. He held senior manager and CFO roles at companies such as BT, All Group and SSP Group before moving into digital transformation roles at John Lewis, Amazon, British American Tobacco and Vodafone.

Chris: So why BDO? What appealed about it?

Kofi: I like the idea of problem-solving and helping a business grow. I’m quite creative. When I went in, they were impressed with me, so they called me back pretty quickly and I met some of the partners. I started last week.

Chris: What’s next then?

Kofi: I just want to keep working on my AAT qualification and move on to ACCA, so I can become a chartered accountant. I want to progress up the ladder.

Keeping an open mind

Chris: I would keep an open mind about that, if I were you. There are a lot of changes going on in the market and at least one of the Big Four has said: “We’re going to recruit on a skills and competence basis, rather than by qualification or which university you went to” – and credit to them.

If you’ve got a skill for financial modelling or technology or something that’s not pure accountancy – data science or analytics, say – couple that with something like AAT and I think you’ll go just as far as if you had put an extra two or three years into your accounting studies. It depends on what you want to do. A lot of people come into accountancy with the vague idea that they want to be a CFO. Is that your plan?

Kofi: I want a position with some authority. I want to be fairly high up in a company.

Chris: What’s driving that? Is it status?

Kofi: My main motivation is my family and making them proud. I’ve always been an ambitious, competitive person. I don’t know why – I just want to be the best that I can be.

Chris: In six years, what do you want to be doing?

Kofi: Wow, okay. Hopefully, I’ll be living a comfortable life. But I’m not really doing this for the money. I want a job that I’m going to be satisfied in. I want to be happy when I’m coming into work. And settled.

What does good look like?

Chris: What does that look like in practical terms? Is it a run in the morning and getting your coffee at 11? Is it having a good team around you that’s working well?

Kofi: Yeah, having a good team around me, where everything’s working smoothly. I think that will give me satisfaction. At BDO, I think I can find something like that. I spoke to my line manager and he said his team is small and they work closely together, and I feel like being in a small, strong team would be a good starting point for me.

Chris: You’ve got a good opportunity there. If you like the culture of the company, see it as a long-term investment of your time to get to where you want to go. I’d definitely try to define what that is in practical terms. Have a really clear line of sight on those goals, and it’ll make them easier to achieve. I can see you go to the gym. If you go to the gym without knowing what you’re going to do for the next 45 minutes, you’re going to have a worse session than if you went in with a plan. That sort of focus will keep you where you want to be.

Kofi: One area I’m quite interested in is advisory – helping companies grow. What do you think I need to do to succeed in that area?

Chris: I think, in an advisory role, you’ve got to come across as very credible very quickly. A lot of people turn to LinkedIn first, so they’ll have checked you out before you meet them – you don’t really have to go through your CV. What they really need to do is like you. It’s just like any sales approach – you buy from people you like. People will have an advisory chat with someone they like and trust, so building credibility is critical. But that’s an umbrella term for lots of skills: you’ve got to be able to communicate well, build rapport quickly, open people up with the right questions and really listen. That’s the first part of the role: to find the problems. So you need to ask the right questions.

Asking the right questions

Kofi: What sort of questions should I ask?

Chris: What’s the biggest pain point in your organisation? You could do what we’re doing here and ask: what are your goals and where do you want to be in six years? But another question for you, Kofi: what do you hope to learn at BDO?

Kofi: I want to know how to be credible. I want to be trusted. How can I make sure I can get into advisory and be successful? I think I’m likeable, but I want to make sure I can offer good advice.

Chris: You’re more than halfway there if you’re a likeable character that people will want to work with. A friend of mine who works in advisory said to me: “It’s amazing how far you can get in advisory just by being likeable.” So don’t undervalue your personality. And remember: you don’t have to know everything. Focus on your strengths and exploit them as much as you can, and then use your network and your team to plug any gaps.

Kofi: That sounds like a good game plan.

Chris: Definitely, and they’ll love you for that. People want nothing more than to talk about what they do. I’m not a technical accountant – I’m not interested in talking about financial standards. I’ve turned down jobs on that basis and let people know upfront that it’s not my area of expertise. That’s made me more credible. They know what my skills are. Then I’ve got my network. Networking is very important – it can open a lot of doors.

What to do if you feel stuck in your career

Posted by & filed under Career.

Even a dream job can be a nightmare some days.

But what if you feel your lack of enthusiasm for your work is affecting your career? How do you rediscover the sense of purpose and joy you used to have in your job?

Is it just a blip?

Everyone has days when they drag themselves into the office, wishing they were still home in bed. But is it more than that?

If you feel down a lot of the time, then you might need to seek your doctor’s help. But if there are no personal or medical issues affecting you and it is just work that’s a struggle, there might be a way to start loving your job again.

We spoke to Corinne Mills, managing director of Personal Career Management and the author of Career Coach: How to plan your career and land your perfect job:

“You need to think about how long you have been like this. We all have days when things go wrong and people are horrible and it is raining and you don’t want to be at work. But it could be a blip.

If it’s just a bad day, it will pass. But if you’ve lacked enthusiasm for work for a while – say a month or more – then you need to do something about it.”

  • Identify if it just a blip and focus on the future

Think about your motivation

What made you choose your accountancy or bookkeeping career in the first place? And what made you apply for your current job? Are your reasons still valid?

It’s also a good idea to think of how much you have achieved at work and what particular projects you enjoyed and were successful at. Everybody has something good to say about their job – and once you start thinking positively, your outlook could change for the better.

Maybe your enthusiasm for the project you are currently working on requires a different approach that will make it more interesting or challenging.

“If you have a difficult project then you may be better ploughing on with it and thinking about the future when it’s completed. You could talk to your manager and ask what you will be doing once that project is finished, pointing out that you are looking forward to a new challenge,” says Mills.

This will also help to make you look keen to your manager, which is always a good move.

What is essential is that you never tell anyone at work that you are feeling unenthusiastic. A manager is not going to give you an interesting new project or agree to you learning new skills if they think you aren’t wholly engaged with your work. So be careful what you say to others.

“What they want to see is someone who is committed to their work – even if privately, you are feeling less than enthused”.

  • Accentuate the positive

Up for the challenge?

“Maybe you need a new challenge” says Mills. Volunteering for a new project at work or going for a promotion will kick start you.

“Ask your manager if you need new skills: there is nothing wrong in saying you want to progress and learn. Your manager will want to help an enthusiastic, ambitious member of staff. Ask them for their advice on what kind of skills you need to advance. Everyone likes being asked for advice”

If you don’t want to approach your manager, then you could consider looking for a mentor or sponsor at work, someone who can help guide you in your career.

Perhaps you should think of becoming a mentor yourself: helping others in their careers and explaining why you love your work can be a brilliant way of restarting your enthusiasm for your profession.

  • Upskilling can boost your enthusiasm and your career

Other ways to get purpose back into your career

Getting involved in your professional organisation – such as the AAT is a great way of finding purpose again.

“‘Meeting others in your profession at events or forums will remind you why you like your chosen career.” Talking to peers will help you put your concerns in perspective too says Mills

Intellectual stimulation is invaluable too. It might have been a while since you studied but working for new qualifications and learning new skills will be just what you need. And it will also help you advance in your career. Your boss might allow you to study during work time too.

Volunteering for projects outside work in your local community can be a good idea too. You could help set one up and get others at work to join in. Have a look at the work of platform Neighbourly for inspiration.

It helps companies set up schemes helping in their local community, such as giving staff time off work to develop community gardens or running contact groups for vulnerable residents.

“Having interests outside work will help in work too”. “Maybe you need to do something creative with your spare time.” Remember too that any ‘soft skills’ you can pick up outside work can help within too.

If you really need a change, then perhaps you could think about being seconded to a different part of the business:

The message is: don’t ignore your lack of enthusiasm for your work: a few simple moves can reignite your interest and could even have you climbing the career ladder faster!