Payroll preparations for the new tax year – part 1 Posted 03/12/2019 by Julie Hodgskin & filed under Bookkeepers, Pensions and payroll. There’s an old saying ‘there are only two things in life that are guaranteed, death and taxes.’ Well, for the anyone dealing with payroll a third could be added: change. The Government may be busy with Brexit negotiations, but it somehow still finds time to come up with new ideas and changes that affect payroll and make a payroller’s life more complex. In this the first of three articles the main changes due in the 2019-20 tax year will be covered. Income tax It is not news to payrollers and small agents that the Personal Allowance is increasing to £12,500. Nor is it news that the basic rate band (BRB) will increase to £37,500 so that anyone earning £50,000 or less per annum will not pay tax at a higher rate than 20%. What may not have registered so prominently are changes to the Scottish rate bands and the new Welsh rate of income tax. Both of these are coming into force from 6 April 2019 and though the payroll changes will be automatic in the software, the potential queries from confused employees, taxpayers, friends or even ‘mates down the pub’ will need preparing for. Scottish rates of tax The Scottish rates of tax for 2019-19 were ratified 21 February this year. There are five income tax bands and amounts as follows: The increase in income tax rates and tax bands will not only make payrolling more complex, but also affect other related areas. Though pensions Relief At Source is unaffected as the Basic Rate remains the same at 20%, the amount on which the rate is charged is different. This could lead to queries from employees so make sure that you are happy with how the amounts are calculated to ensure that explanations are clear, and perhaps more importantly, confident. Separate calculations will be needed for any PAYE Settlement agreement (PSAs) as tax is charged at the marginal rate. This means that any Scottish tax payer benefits will need to be identified and separated from the rest of the UK (rUK) tax payer benefits before tax computations are made. On the plus side the Scottish rates of tax do not affect the basic earnings assessment for Employer-Supported Childcare (this is not a devolved matter) or Automatic Enrolment assessments (the Qualifying Earnings Bands higher level is the same as the rest of UK). As the source of all tax related knowledge (or that’s how most people view payrollers and accounts staff), you must be like the Scouts and ‘Be prepared’. Have the relevant information or links ready to provide a (free) service to those that may enquire. Welsh rates of tax Tax codes are now being issued with the new ‘C’ prefix. This indicates a Welsh tax payer as defined by HMRC’s residency test (the test uses the same parameters as used for identifying a Scottish resident). The Welsh rates are calculated by using the rates used by rUK less 10%. The basic rate is therefore reduced from 20% to 10%, the additional rate from 40% to 30% and the higher rate from 45% to 35%. The Welsh Assembly then adds a specified percentage on top, giving rise to the Welsh rates. Though they have the power to do so from April 2019, the Welsh Government does not intend to increase income tax rates during the current Assembly (ends May 2021). Implications Though there are implications for payroll, currently those implications are hidden as the Welsh tax rates and bands are the same as rUK. However, once the rates and thresholds start to diverge the implications will become apparent, and as with Scottish residency employees, extra complexities and work may be needed to fulfil payroll duties. Residency Whether a taxpayer is a Scottish, Welsh or rUK resident is decided by HMRC and will be identified through the tax code, so don’t give in to pressure from any individual who tries to tell you differently. Any queries they may have should be referred to HMRC. The individual could also access their information via the individual Personal Tax Account. While they are there, they may wish to check their address as it is that that informs HMRC of where they resident! National insurance Now to the calmer waters of the national insurance rates and thresholds. Fortunately, the rates have not changed, and though the thresholds have, they apply to the whole of the UK. The Lower Earning Limit (LEL) has increased to an annual figure of £6,136, the Earnings Thresholds, both Primary and Secondary to £8,632 and the Upper Earning Limit (UEL) to £50,000. There is one word of caution here. The Primary Threshold increase for 2019-20 (compared with the threshold for tax year 2018-19) is £208, whereas the corresponding increase in the UEL is £3,650. This means that some employees will be paying more national insurance contributions than last year. Again, you may have queries coming your way, so be prepared to show how the amounts are calculated. Student loans New tax year, new thresholds. And a new type of student loan deduction, the Postgraduate Loan. This new loan has a threshold of £21,000 and a deduction rate of Retail Price Index ( RPI )+ 3%, which currently works out at 6%. HMRC has made changes to the relevant documents (see part 2) so the administration of dealing with this new deduction should be straightforward. The thresholds for the undergraduate loans Plan 1 and Plan 2 can be found with all the other relevant statutory deduction rates. Getting ready So far, only the basic statutory deductions have been outlined. In the blogs that follow the forms and submissions enabling all these changes and more will be covered, along with the national minimum wage increases, changes to automatic enrolment rates and thresholds, termination payments, the apprenticeship levy benefits and more. New tax year, old slogan – Be Prepared!
AT Magazine Posted 03/11/2019 by David Nunn & filed under Members. AT magazine is our award-winning publication exclusively for members. It’s designed to keep you up to date with the changing face of accountancy and the emergence of new skills that will shape your career. AT is focused on making technical subjects accessible, profiling inspirational AAT members and covering diverse and fascinating stories of the world of finance and accountancy with the goal to inform and inspire. Download the latest copy below (login required). March/April 5 unstoppable accountants To mark International Women’s Day we profile the careers of five women in accountancy to learn of their challenges and achievements. Read the online version here. Business Model Canvas template How do you understand what makes an organisation successful? Answer: you use the Business Model Canvas template. Download your copy here: Business Model Canvas template View issue
How to apply management accounting knowledge in the real world Posted 03/11/2019 by CIMA & filed under Career, Members, Students. This content is brought to you by CIMA. A professional accounting qualification does more than just expand your career options. It provides real world skills that you can apply to your everyday life. Here are four ways you can apply management accounting knowledge to improve your work and personal life. 1. Risk management Risk management is one of the core functions of a management accountant and it includes the ability to identify and manage risks in order to protect the organisations strategic and financial objectives. One common category of risk that exists within a business is environmental risk – that is, risks that occur due to political, economic, socio-cultural, technological, or legal changes. Think about how this can be applied outside the office. If you have ever considered moving towns or buying a new home, you would have automatically weighed up the pros and cons. You would have assessed your new town in terms of community makeup, any upcoming council plans for the area, who your new neighbours might be, and whether you could afford the cost. In other words, you managed risk. By studying management accounting, your ability to assess and manage risk will improve, and this will automatically flow through to your personal life, making those big decisions feel more intuitive. 2. Negotiation and influencing Negotiation and influencing skills aren’t just for sales people. In the real world, these skills can be employed by anyone looking to affect change, including management accountants. A core part of the CIMA Professional Qualification framework focuses on people skills which include the ability to negotiate effectively. This skill will let you gain consensus on core business projects, making it easier to get your work done efficiently. It will also help you to build strong and trusted relationships with your colleagues. It’s easy to see how you might apply these skills to the real world. From haggling on price for your next smartphone purchase to finding a compromise during a disagreement with your spouse. The negotiation skills you learn during your management accountancy studies will be used regularly on a personal level and in the workplace. 3. Project and relationship management The ability to manage projects in the finance department is becoming increasingly commonplace for management accountants. These projects often span all business functions that make up an organisation, making the ability to manage both projects and people an important skill for all accounting professionals. CIMA recognises the importance of these skills by including an entire section on managing projects and people as part of their Professional Qualification. So whether its planning your next big family holiday, a big life-event like a wedding, or structuring a plan to build a new home, you can utilise the skills and knowledge you’ve earned through your studies to make your personal projects run smoothly too. 4. Digital skills Technology is rapidly changing in finance and business. AI, blockchain and advanced data analytics are challenging the relevance of traditional accounting skills while also creating new opportunities for organisations and individuals. In February 2019, CIMA announced an update to its Professional Qualification to integrate new digital skills into the framework, after consulting with more than 2000 organisations worldwide. These new digital skills will equip CIMA students and members with the knowledge to stay ahead in their roles. Both our work and personal lives are increasingly digital. By nurturing a digital mindset during your management accounting studies, you will be prepared for anything that comes your way – whether that is the possibility of a robot taking your job, or simply the need to understand cloud computing, 3-D printing, or how to protect your finances online. Level up – study management accounting with CIMA By studying with CIMA you will acquire skills that you can apply to all areas of your life. You will benefit from CIMA’s future-proofed, revised qualification, giving you the digital know-how to get ahead in your career. Take the great foundation in accounting that you have acquired through your AAT studies one step further and study management accounting with CIMA. Find out more.
Supporting the Tech Talent Charter to help close the digital gender divide Posted 03/08/2019 by Phil Hall & filed under AAT news, Members, Students. On International Women’s Day, a day that not only celebrates women’s achievements but serves as a call to action for accelerating gender parity, it’s particularly timely to consider the role of women in the technology sector. This doesn’t simply mean the tech start-ups that we increasingly hear about or the FANG companies (Facebook, Amazon, Netflix, Google) that dominate the tech landscape but every UK company with an IT department or analysts or coders or network administrators or data managers or any element of tech employment. There is some form of tech involved in most UK companies today and with increased automation, the use of AI and the onset of big data many more aspects of everyday life (and business life) will be covered. Lack of representation in the digital world However, women are underrepresented in both the uptake of digital qualifications and in digital roles. Just 17% of people who work in the tech sector are female and the future doesn’t look any brighter with only 12% of students taking GCSE Computer Science being female, with a further drop to just 10% of students at A level. These obvious shortages are compounded by the fact the UK needs one million more tech workers by 2020 alone. These are daunting statistics with real life impacts on individuals and more broadly the British economy. To help address this skills gap, the Tech Talent Charter was launched and subsequently supported by Government. AAT and gender equality AAT has a strong history of supporting women – having published its Gender Pay Gap data as part of its annual report long before it was legally required to do so; being the first and for a long time the only accountancy body to have signed the Women in Finance Charter and regularly engaging with policymakers on issues relating to Gender Equality. AAT therefore had no hesitation in becoming the first professional accountancy body to sign the Tech Talent Charter last month. The Charter requires signatories to have attraction, recruitment and retention practices that are designed to increase the diversity of their workforce and to measure and share the diversity profile of their UK employees for collective publication. Britain needs a more diverse, inclusive, fairer and commercially successful tech workforce and AAT is pleased to play a part in helping to achieve this. We’d like to see other professional bodies sign up and for accountants of all shapes and sizes to give this some consideration too. Together we can make a real difference. As Debbie Forster, Tech Talent Charter Chief Executive, recently said; “It’s vital for the industry to come together as a whole to do more to show females that a career in technology is incredibly rewarding, to increase the number of females working within the industry, to attract people who are considering a career change, and to encourage younger generations to consider these careers from the word “go”. Supporting the Tech Talent Charter We welcome AAT as signatories but would like many more to pledge their support for the Tech Talent Charter and to join us on our exciting journey.” There is Government support for the Tech Talent Charter too with the Minister for Digital & the Creative Industries repeatedly highlighting that a digital gender divide is unacceptable and that they want to ensure everyone has access to the exciting employment opportunities within the tech sector – because in order to make the UK the best place in the world to start and grow a digital business, the right workforce is essential. The Minister appears to be making all the right noises, especially around the Tech Talent Charter, but there is much more that could and should be done, especially in schools. In 2017 just over half of all schools in England offered a GCSE in Computer Science, a subject that as well as offering programming skills and software development, covers cyber security and the ethical, legal and environmental impacts of digital technology on wider society, including issues of privacy. A paltry 12% of students (male and female) are currently opting to study this subject. The world needs digital skills The Government readily acknowledges that for the UK to be a world leading digital economy that works for all, it is crucial that everyone has the digital skills they need to fully participate in society. All jobs in the future are likely to require some form of basic digital skills understanding so there should be a requirement for all students to have basic digital skills at GCSE grade 4 (previously grade C) or above in the same way that most employers currently require for GCSE Maths and English. This would be a welcome statement of Government intent and of ensuring young people, parents and employers appreciate the rapidly increasing importance of digital skills. It would seem that industry is doing more than Government on this important issue. Not only did they come together to establish the Tech Talent Charter (which Government subsequently backed) but programmes such as TechFuture Girls and Facebook’s She Means Business programme have been hugely successful. Given the plethora of industry schemes and programmes, perhaps more could be done by Government to disseminate information about available programmes. An emphasis on this in a renewed Careers Strategy would be a helpful start. Any organisation, large or small, can sign up to the Charter. It is completely free of charge. Find out more now at: https://techtalentcharter.co.uk/
She who dares… 5 success stories from unstoppable accountants Posted 03/07/2019 by Mark Rowland & filed under Members, Women in finance. To mark International Women’s Day we spoke to five successful career women about their experiences in accountancy. By Mark Rowland. Opportunities for women have been growing over the past few decades. The number of women joining the sector is increasing – there’s a 50-50 split among accounting students, says the Financial Reporting Council – and women are well represented in lower- and middle-tier roles. It seems doors are opening for women – but they have to push hard. (Pictures by Louise Haywood-Schiefer) Nicky Goringe Larkin, MD and founder, Goringe Accountants Nicky Goringe Larkin carved a career in accounting before launching her own accountancy firm. Early on a male boss gave her some advice: “He said that, as a female, I would have to work twice as much and twice as hard to get on. Hopefully, that is not quite so true now, but it’s sad that he felt he had to say that.” Goringe Larkin knew she wanted to run a business one day. She just didn’t know it would be in accounting. She worked her way up to finance manager within three years of qualifying with CIMA, working in similar roles at several tech firms before setting up her own practice, Goringe Accountants, in 2007. “I always knew I wanted to run my own company, but I didn’t think I’d end up running an accountancy practice. I thought I’d end up running my own IT company. Launching the business “Lots of people said to me: ‘Why don’t you open your own practice?’ So I decided to give it a go, but I’d never been in practice, so it was a huge change.” Starting as a small practice in a home office, Goringe Accountants is now well on its way to becoming a top 100 firm. “I was always ambitious, and wanted to take on more and more responsibility, and I found it very frustrating when I would be told that I needed to be older and have greyer hair. That’s probably why I’m now running my own practice.” Gender expectations Goringe Larkin still sees assumptions about gender affecting her staff – expectations about childcare are an example. “So often I have a woman in my practice say: ‘I’ve got to go and pick up my son,’” explains Goringe Larkin. “You think: ‘Well why isn’t your husband doing it?’ I’m very lucky because my husband does do it.” Jannine Edgar, Finance And Operations Director, AAT Jannine Edgar was the only girl in her sixth form. That experience stood her in good stead to deal with the male-dominated boardrooms she has worked in across the world. In the 18 years that she was at industrial gas company BOC, she worked with a research team developing needleless injections, oversaw the company’s merger with the Linde Group, and stepped in to rescue the group’s ailing South African business. Walking on the wild side Before heading to South Africa, Edgar had already worked in roles in the US, completed the Linde merger and headed up operations in Ireland. She was ready for the challenge, she says: “Most of my male peers wouldn’t go because of the environment there. I think that, if you can step up and do something like that, you’ll have more credibility.” Edgar proved her worth, finding ways to bring the business back from the brink after taking tough decisions. The business culture was also tricky. “Being female and going into a male-dominated environment was a real challenge, but I think it worked for me to stay with the Linde Group, because they did keep putting those challenges on the table.” Bosses who back you Edgar says her career has benefitted from supportive men, who recognised her talents and gave her the chance to keep stepping up. “There still aren’t that many women in leadership roles, so you need men in business who are willing to be the champions of talented women in their organisations,” she says. Edgar believes mentoring is vital to ensure that other women enjoy the same kind of opportunities that she has. “The women at the top should be sponsoring people further down, and not in their own organisations necessarily. I think it’s our responsibility – the higher you go up in an organisation or if you have your own business – to be mentoring others.” Angela Ashworth, Co-Founder, Purple Lime Accountancy Angela Ashworth’s journey into accountancy started on a hotel management course. While her ambition was to run a hotel, the course’s accountancy module led her down a different path. “Instead of going straight into hotels, I ended up working for a leasing company in the finance department, and that’s how my career started. Then I did the AAT qualification by correspondence,” she says. Ashworth went into the hotel sector and worked her way up at companies such as Thistle Hotels and Thermae Bath Spa. She also got involved in updating and modernising their systems, which proved to be the germ of a major change in her career. The leap into consultancy Around seven years ago, Ashworth, then self-employed, attended Xero’s first roadshow in the West Country. It was a ‘wow’ moment. “There were only about a dozen people in the room. I thought: ‘I’m putting all of my clients onto Xero.’” Ashworth started working with traditional accountancy practices to tidy up client data and get it ready to review for tax purposes. Through doing so, she met her business partner, Oli Thomas, and they co-founded Purple Lime, which has grown into a team of seven in two years. “A lot of my role is Xero training, client onboarding, assessing workloads, streamlining things and suggesting new technologies,” she says. Purple Lime has built flexibility into its culture and working practices, which is a result, in part, of Ashworth’s own experiences. When she had her family, she struggled to find work. She wanted to pursue her career but to work part-time or flexibly, so she could spend time with her family. “We have one person who’s on maternity leave and another who will soon be going on maternity leave. For both, it’s their first child, and they’ve both said they’d like to come back on a part-time basis. We put a lot of time into training and the way we work in the practice – identifying the people we want and getting the culture right – so we don’t want to lose them.” Technology evens up the playing field Technology has been a real leveller, Ashworth explains, because it allows people to have more flexibility around when and where they work. And the new generation of accountants have grown up with it. “All of our team are in their 20s and 30s,” she says. “I think they just kind of accept that they’re all coming into it together. They certainly don’t have the same sort of issues and perceptions that I had when I first started out.” Bola Lawal, Group Reporting Accountant, Santander UK Bola Lawal grew up in south London but moved to Essex when her family could no longer afford to live in the capital. She didn’t want to go to university and found it hard to get started in accountancy – even offering to work for free. Every knock-back just steeled Lawal ‘s resolve. Leadership Through Sport & Business (LTSB) finally provided her with an apprenticeship at accountancy firm BKL. Recognition soon followed. Her bosses praised her work and nominated her as LTSB apprentices of the year in 2018. She won and was invited to speak at a parliamentary hearing on the importance of apprenticeships, and how to improve access to them for people from disadvantaged backgrounds. Her career prospects also took shape. Marvellous mentors A chance meeting at a networking event with Susan Allen, head of retail and business banking at Santander UK, led to a huge opportunity for Lawal. Allen, seeing Lawal’s potential, put her in touch with Santander financial controller Mónica Díaz, who offered to mentor Lawal. On one of their mentoring days, Díaz asked Lawal if she’d like to work at Santander. Lawal jumped at the chance. She now works in the head office as a group reporting accountant. “Before I came into the industry, my idea of women in power positions was that they were kind of intimidating,” Lawal explains. “But the female mentors that I do have changed my perception. There are a lot of women who are more open to helping and guiding young people coming into the industry, because they’ve been through the challenges.” Work prep starts in the classroom Lawal would like to see more workplace skills taught in schools. For example, when she left school, Lawal lacked confidence in her communication skills. “Luckily for me, I was on a programme that helped me with that. A lot of us [on the programme] didn’t know how to write an email, what you do when you go into a meeting, how to communicate with people or how to adjust the way you communicate when you speak to someone who doesn’t have accounting knowledge. “When I see graduates in the workplace, some of those skills probably would’ve been great for them to have as part of their degree.” Farha Jamadar, Finance Manager, Todd Doors Farha Jamadar’s manager was made redundant while she was finishing her qualifications. It left her and a part-time colleague running the accounts department. Jamadar had a choice: she could shrink from the challenge or she could step up. “I was being asked questions left, right and centre, and initially I wasn’t able to answer them, but, as I progressed through AAT and stepped up more, I was able to understand the state of the company financially, where the needs were and where the gaps were,” she says. When she’d finished her qualifications, Jamadar was promoted to accounts supervisor – a job she was essentially already doing. A couple of years later, once she’d achieved FMAAT status, she became finance manager. Confidence to conquer Becoming the voice of the finance department so early in her career also meant finding the confidence to speak up in management meetings. Jamadar’s bosses have all been supportive, but she sometimes found herself inadvertently isolated by the shared interests of senior colleagues, such as golf or football. That seems like a minor problem, she explains, but it can result in an imbalance once the focus turns to work. The solution? Just make colleagues aware of the issue. “You have to be sassy,” she says. “You have to find a way to own the conversation. They want to talk about football? Well, I bought a new pair of shoes – let’s talk about that,” she laughs. Having started her career with a series of big challenges, Jamadar is still pushing herself out of her comfort zone. She’s now overseeing the implementation of new process management software and helping the business prepare for Brexit. Lessons learned What can we glean from these five inspiring stories? Women can progress through their own hard work, ability, ambition and a willingness to overcome difficulties. But all is not yet rosy in the garden. While women are well represented in the sector overall, there are fewer at the senior level, particularly in large firms and corporations. There are just ten female CFOs in the FTSE 100, and the Big Four firms pay their female workers up to 43% less than their male staff – largely due to the ratio of male to female partners. That’s why accountancy as a sector needs more people to step up and offer support and mentoring to make sure opportunities remain open to all. All of the women on our panel have been supported by managers, mentors, business partners or family, who have made sure the door has stayed open as they’ve progressed. But ultimately they are the creators of their own success. What needs to change More mentors The more champions that women have at a senior level, the more opportunities will open up. More flexibility Technology allows us to work from anywhere. You can excel no matter what your commitments are. Company culture must change to reflect that. More dads at home At Aviva, two-thirds of fathers take six months off work to look after their children. Businesses should promote and embrace shared leave. More soft skills at school We must build pupils’ confidence so they fare better in the workplace. Inclusive banter Efforts must be made to include everyone in the conversation. Why all this needs to change There are only ten female FTSE 100 CFOs. Only 18% of partners at UK accountancy firms are women. The industry has a gender pay gap of 21.5% – above the national average. The first female finance director to join a FTSE board did so in 1991. Women make up just 35% of all chartered accountants worldwide. Take a look at AAT’s short video celebrating the women of AAT
Should Oxford Dictionary change the definition of an accountant? Posted 03/07/2019 by Charlotte Beugge & filed under Members. How would you define your role as an accountant? Earlier this year, accounting software specialists Xero, started an online petition to change the Oxford English Dictionary definition of an accountant. Currently the role is defined as ‘a person whose job it is to keep or inspect financial accounts’ Xero believe this should change to ‘a person whose job it is to keep or inspect and advise on financial accounts’. Xero’s managing director Gary Turner said in an open letter to the dictionary: “Today, an accountant doesn’t just crunch the numbers and observe financial operations, but so much more.” So would a change in wording reflect better what accountants do these days? Is accountancy unfairly seen as simply, number crunching? And is the definition so out of date that it might put off others from joining the profession? Is the TV to blame? Mike Warburton has spent most of his career as an accountant, specialising in tax. A regular on television, radio and in the newspapers, the former Grant Thornton tax partner rails against any conception that the role of an accountant is simply to look after a business’ accounts as per the dictionary description. Warburton blames Monty Python for the image of accountancy as being boring. “In the lion tamer sketch, accountancy is mocked as being dull and that image has prevailed. But it’s unfair: my career has been varied and exciting and anything but dull.” In the famous sketch John Cleese is a career counsellor and Michael Palin is Mr Anchovy, who wants to switch from his job as an accountant to a lion tamer because his work is ‘dull, dull, dull’. Cleese tells him that accountancy suits him because “our experts describe you as an appallingly dull fellow, unimaginative, timid, lacking in initiative, spineless, easily dominated, no sense of humour, tedious company and irrepressibly drab and awful. And whereas in most professions these would be considerable drawbacks in chartered accountancy they are a positive boon.” Warburton, 71, however says that accountancy is an exciting career and one that can lead in many directions. “A large part of British commerce and industry is run by accountants” he says. “I chose to be a tax accountant because I liked talking to clients about saving tax, something they really appreciated. My career as an accountant does not fit the current dictionary definition at all. “Accountancy is a great career; one that offers so much variety. You can choose which routes you take – your qualifications can take you so many places. Over the course of my career I’ve done lots of radio, television and media work and public speaking. I’ve also been an expert witness in court cases. Accountancy opens so many doors: it is not simply doing the books’. A younger perspective While Warburton can look back over a long career, Farid Gasanov MAAT, is 29. An accountant with Q Accountants, his passion for maths and desire to have a career, which involved helping people, propelled him towards accountancy. He has a 21st century take on what the dictionary definition of an accountant should be. “An accountant is someone who makes sure the client’s business is compliant from financial reporting and taxation point of view. They spot trends in the industry which affect business growth and advise on these using the most advanced technologies available.” And he adds: “An accountant is someone who has insight into the client’s business, which is particularly important for small businesses. It’s vital to speak the right language so you can relay the figures in such a way that clients can understand them and use that knowledge to grow their business.” A better definition? Indeed a survey by emolument accountancy ranked as the fifth most boring job, with 67% of those surveyed saying it was dull (the most boring profession was legal jobs, with 81%). James Brent, business director at recruitment firm Hays Accountancy & Finance says that accountancy has changed. “I think the dictionary definition of an accountant is limiting and whilst it’s unlikely to deter anyone from a career in accountancy, there is certainly room for a more modern definition. The role of the accountant has undoubtedly changed over the years and accountants now play much more of a business advisory role.” And he adds: “An accountant’s role is so much more than just reviewing spreadsheets. The most successful accountants will possess the ability to communicate with peers, customers, external business partners and investors alike, coupled with an acute eye for detail and key technical accounting knowledge.” What’s more, Brent says that the definition of accountancy will change as our society and ways of working progress. He adds: “As advances in technology progress such as cloud based software, robotics and artificial intelligence (AI), the role of an accountant will undoubtedly continue to change. “However, while robots and AI may have the potential to add speed and efficiency to the profession, ultimately it will still be human accountants who will add the commercial nous and insight that the smartest of technologies cannot rival.” So, regardless of whatever definition there is of the accountancy profession, it will evolve and adapt to new challenges: a long way from the desk-bound, number-crunching role suggested by the dictionary.
Why taking a secondment can help you update your skills Posted 03/05/2019 by Neil Johnson & filed under Career, Members. On of the key takeaways from talking to recruiters about their outlook for accountancy and finance recruitment in 2019 and beyond is that the war for top talent is going nowhere. In fact, it is only likely to heat up in the face of digitalisation, AI, automation and the evolution of professions and business. The Robert Half 2019 Salary Guide found that more than half of CEOs admit they can’t find the candidates with the necessary skills to help them navigate an increasingly digitalised business landscape. One of the struggles for employers is that they’re looking for professionals with multi-layered skillsets, including a good qualification and technical grounding, excellent communication skills, ability to analyse data and talk about their findings, a passion for new technology, the ability to advise non-finance people in different departments, great with clients, change managers, process implementors… the list goes on. While this may sound like a tall order, the upside is that accountants who can meet these skills requirements can command good salaries, while also making themselves relevant for the changing future of work. What is a secondment? There are various ways, one of which is a secondment. A secondment is a temporary transfer to another position of employment. They can range from a short-term arrangement of a few weeks, to something more long-term stretching across a number of months. Both SMEs and larger organisations offer secondments, and they can be a great way to increase employee engagement and retain top talent, so they don’t just benefit the seconder. Finance professionals may want to consider a secondment to learn new technical skills such as data analysis, or develop an understanding of new technologies, such as AI. “This can help them stand out from their peers and stay ahead of the digitalisation curve, enabling them to add value to their employer,” says Matt Weston, Managing Director, Robert Half UK. “Secondments can help boost your personal brand and visibility within a company. They also provide the opportunity to experience new things – an auditor seeing the client perspective, or a consultant seconding to software developers, for example. This enables the individual to acquire a wider and deeper range of skills, increasing their value to potential or current employers,” he says. Secondments can take place anywhere. Many people will work overseas during a secondment, which is key considering the increasing demand for professionals with international business experience, a result of the rapid pace of globalisation, digital transformation and adoption of global regulatory and banking standards, say Weston. Overseas opportunities “Professionals should seriously consider an international secondment if offered. Many organisations offer new career opportunities abroad, typically in another global financial hub like Singapore or New York. A 9-5 in a different culture helps the individual to learn a new way of working – it shows that they are flexible, adaptable to different management styles and are able to tackle a different set of challenges – whether this is a language barrier or learning a new way of doing things. Working in a new environment or culture also enables the individual to strengthen their ‘soft skills’ like communication, business partnering and strategic thinking.” Working abroad can also benefit long-term career prospects. Research recently found that six in 10 (59%) financial services leaders believe that an employee’s chances of promotion were improved greatly if they have worked in finance jobs abroad in the past. “Developing transferable skills such as global market expertise and commercial acumen, but also other qualities such as cultural understanding and communication, can be advantageous not only in helping a candidate stand out from their peers with new-found knowledge, but also in bringing fresh perspectives that help shape their outlook and the value they can bring to an organisation,” says Weston. How to get on a secondment For those considering taking a secondment, speak to your line manager about the opportunities on offer within your organisation. For those working in smaller firms who have no secondment programme (this could be due to scale or lack of resources), be a trailblazer, try to set one up. This could be with a different department, or even in an other company, one your business works with (a supplier or partner, for example). If you can sell the benefits of a secondment to your boss, prove that your coming back with certain skills will be a boon for the company, they may go for it. What would really support your proposal is showing that you’ve thought of all problems and questions; organise everything so operations would be unaffected, hand the proposal to your boss on a silver platter, don’t give them an opportunity to say no. Show how your responsibilities will be covered when you’re gone and that how when you come back you’ll be more valuable. Importantly, secondments aren’t just “time out” from your normal working environment – when applying for a secondment, treat the process as you would with a job interview,” says Weston. “Approach it in a professional manor, with a clear business case as to why a secondment will be beneficial. If no such scheme exists, then try to have the confidence to pitch it to your boss – it could prove invaluable to your long-term career.”
Career profile: Forensic accountant Posted 03/04/2019 by Ebony-Storm Halladay & filed under Career, Career profiles. A forensic accountant has to combine the roles of detective, examiner and witness in cases ranging from corporate fraud to personal injury claims, and as the financial regulation landscape intensifies, demand for forensic accountants is growing. Samantha Perkin is an accountant at Matrix Forensic Accounting and Investigations, a firm that helps clients resolve legal disputes by analysing complex financial data. In our interview, she highlights the need to spot tiny details in a big pictures, the challenge of preparing lengthy and detailed reports, and the importance of ethics and impartiality in her profession. What led you to a career as a forensic accountant? I qualified as an accounting technician in 2008, and have worked as part of the Matrix Forensic Accounting team for five years now. I met Shaun Walbridge, managing director, when he gave a forensic accounting talk at AAT Cornwall while I was chair there. Shaun is a valuable mentor and taught me most of what I know about forensic accounting. What does a typical work day look like for you? No two forensic cases are ever the same, and what a day’s like depends on whether we’re working for the prosecution or the defence. But let’s say the police have supplied us with a backup of a computer owned by someone they think has committed fraudulent offences, for example. It’s our job to seek the critical documents used in preparing the accounts and pick out line by line what they’ve attempted to do. Sometimes we can see they’ve put a figure in as the opening and closing stock, but in the next sheet that figure’s changed, and that affects everything. We then look at whether there’s evidence anywhere else that would substantiate that change. Sometimes you can follow the logic through and sometimes you have to play the detective and go hunting for other information. What are the main challenges and rewards associated with your role? Most of us are drawn to accountancy because we like numeracy, but in forensic accounting, you find you’ve got to write really long, carefully-worded reports for everything. This isn’t a skill that accountants are naturally comfortable with. You’re not allowed to use lots of accounting terms because you have to remember the user of your report is somebody who doesn’t understand accounts. Personally, I find working with the prosecution the most rewarding part. It’s fun working out the details of the case, following it through and knowing that you’ve done something productive to ensure that nobody falls victim to that crime by that person again. It’s definitely an exciting area of accountancy. How much of your job involves dealing with courts and the legal system? I take more of a backseat role while my colleague Shaun, who is a member of the Expert Witness Institute, mostly deals with the courts. I doubt that’s a luxury most forensic accountants get though! A critical part of the job is being able to stand in the witness box under cross-examination and communicate in a calm and concise way about where you’ve taken the numbers from and why you did so. What unique aspects of the job do students need to prepare for? People will be fascinated by what you do, but as you’ve a lot of sensitive information in your head you have to be careful not to breach confidentiality when answering questions. You also can’t express your personal views within the role. If we’re doing a prosecution case and find evidence that would help the defence, we disclose that too, whether or not we actually want to help them. Since we tend to take all our information from documents, though, our communications with any party are actually quite limited. It’s important we aren’t influenced by the opinions of others.
How winning an award can help create publicity for your business Posted 03/04/2019 by The content team & filed under Annual Conference, Members. How can you distinguish yourself from the competition, attract new clients and create publicity for your business at the same time? One of the best ways is to win or be shortlisted for a major award. So, when it comes to the AAT Professional Member Awards 2019, what are the judges looking for, and what difference can it make to you both as an individual and as a business? We asked Kim Hughes MAAT, Licensed Member of the Year 2018. What has winning the award led to? Continued growth personally and professionally and being able to share this accolade with clients gives them confidence in my ability and my commitment to high professional standards. A recent new client was so impressed by the award and my enthusiasm for learning that they moved from another accountant for bookkeeping and payroll services. What do you think the judges were looking for/what do you think was special about your entry? I think dedication to providing a high level of service to my clients and my own commitment to CPD and also that I have gained the confidence to grow business-wise from meeting other Members in Practice at the AAT Conferences Do you have any advice for would-be entrants? Go for it – you’ve nothing to lose! Being shortlisted was such a great confidence boost and then to actually win is something I am immensely proud of. The awards are a great experience if you’ve got something to shout about then do it and enter! Winning an award is a massive achievement. It not only sounds and looks good, but it also creates real business benefits such as attracting new clients, media attention and broader industry recognition. Thinking of entering the awards? Here are our top tips on how to write a winning award entry Keep it simple Judges know nothing about your role or achievements, so be as clear and descriptive as possible, using plain English. It’s best to avoid jargon or acronyms that our judges may not be familiar with. Allow plenty of time Many of us tend to wait until a deadline is imminent before completing a task, but rushing could affect the quality of your entry. Try to put an hour aside at least two weeks before the deadline, so you can write a great entry. Check and double check Make sure you have answered all of the questions properly, uploaded any necessary documents, and checked your spelling before hitting ‘Submit’. Use a great reference* Your reference is an important part of your entry. Give your referee plenty of time to write a clear reference on why you should win the award and make sure they include their name, job title and the nature of your relationship. Show your enthusiasm We want to see your passion for the industry you work in. Write clearly and enthusiastically to make your application stand out from the crowd. The AAT Professional Member Awards 2019 are free to enter and winners will be announced at the AAT Annual Conference 2019. Awards categories Professional Member of the Year – AATQB Professional Member of the Year – MAAT Professional Member of the Year – FMAAT Licensed Member of the Year Rising Star of the Year Branch of the Year Visit aat.org.uk/awards to find out more
How my employer supported my return to education Posted 03/01/2019 by Charlotte Beugge & filed under Employers, Inspiring stories, Students. Richard Matthews MAAT, left school at 18 with no intention of taking exams ever again. Yet at 37, he chose to return to education and become qualified. Now, there’s no stopping his desire to learn and improve his prospects. Today, Matthews is a financial accreditation manager for the HMRC and is studying towards becoming a chartered accountant. So what propelled him towards returning to study after such a long time – and how did he manage it? Never too old There are about 70,000 over-21s in full time education in the UK. Given the cost, it can be difficult for older learners to countenance full time study, as they need to earn money. However, part-time study is a good alternative as it provides the opportunity to continue to work. And it allows you to work towards the kind of qualifications which could help you to climb the career ladder faster. What’s more you might find, as Matthews did, that your employer welcomes your desire to study and helps out. So how did his return to study story start? “I was working for HMRC and I wanted to take an accountancy qualification, but I couldn’t afford to take time off work for full-time study’ says Matthews. “I was 37 and had been at the HMRC since I left school, working in the records department. Lots of my colleagues had AAT qualifications and I thought if I studied for one then it wouldn’t only help me, but HMRC too. I chose AAT because its qualifications have a very good reputation and the support you get is really good – and the qualifications are world-renowned.” Fortunately for Matthews, now aged 42, the HMRC agreed to pay for his AAT studies as long as he continued working full-time and studied in his own time. He passed AAT’s Foundation Certificate (level two) in a year and then took the Advanced Diploma (level three) in another year. He’s now passed his Professional Diploma (level four), and has AAT full membership (MAAT). I made sure that I managed my time properly and didn’t let study intrude on my home life Work-life balance For Matthews, it was really important to make sure his studies, work and home life did not impinge on each other. “I did all my studying online, in the evenings and weekends. At the time, my daughter was just two years old and I’m a hands-on dad – but what helped me was going to my parents’ house when I needed quiet in order to study.” However, don’t underestimate how much work you’ll need. “I reckon I did 100-110 hours’ study for each of my AAT levels. The work is challenging – but it was worth it.” Having someone else studying helped too says Matthews. “I had a colleague doing the qualifications at the same time, so we bounced ideas off each other and helped each other out with challenging topics.” But sometimes real life has a nasty way of intervening in the best-laid plans. Tragically, just after completing the Advanced Diploma Matthews’ father died. I had been planning to study for my Professional Diploma, but my father’s death hit me badly. The HMRC were amazing: they gave me the time off work so I could study full-time. I’m currently studying towards being a chartered accountant.” Focus on the goal When Matthews returned to study it completed changed his life and outlook. He has been working for HMRC for over 23 years, since qualifying he has been promoted and developed a new love for his job. “I was able to prove that I had dedication to my studies and achieving my goals. I had not been involved in education for nearly 20 years when I began my AAT journey, passing each level as I progressed was a great achievement.” “Before, I was always someone who just treated work as a day to day commitment: work was just something you did. Now I’ve been promoted I have a role with more responsibility. I’m doing planning, problem solving and find my work really fulfilling and intellectually stimulating. All the hard work studying was so worth it: I would urge anyone else to do the same thing. Yes, it’s daunting to go back to studying years after you left school but if I can do it, anyone can.” Matthews points out that if you focus on what you can achieve, you’ll find studying easier – but you do need to make sure you can handle the hard work involved. “Do ask yourself if you have to time to study. Really, you need to be self-disciplined. You can manage to keep all your plates spinning if you try. I didn’t miss out on my daughter growing up – I just made sure that I managed my time properly and didn’t let study intrude on my home life. And HMRC were great: I got time off for exams and used annual leave to study in.” More than anything, it was a great achievement having the confidence to study again so many years after his formal education finished. Particularly as he hadn’t really enjoyed school nor been very academic. He adds: “I left school with one A level and really didn’t want to study ever again. And I wasn’t very good at maths. Indeed, recently I bumped into my old maths teacher at a school reunion. When he asked what I did and I said I was an accountant he couldn’t stop laughing!”