5 professional qualities that clients and employers expect Posted 03/01/2019 by ACCA & filed under Career, Client relations, Employers. This content is brought to you by ACCA. What makes a finance ‘professional’? Qualifications are an essential foundation of a successful career, but the role of a ‘professional’ demands a much broader range of knowledge and skills. So what else do clients and employers expect of financial services professionals? Accountants, doctors, engineers and lawyers are very different professions, but all share the core concept of the ‘professional’ – an individual who provides specialist expertise to others, whether as a consultant or full-time employee. In purchasing their expertise, clients and employers have clear expectations about what they want in return for their investment. More than likely, professionals will also be working alongside colleagues that have similarly clear expectations. ‘Professionalism doesn’t simply refer to your technical expertise,’ explains Ros Leah, ACCA head of strategy development and alignment. ‘It’s about how you deliver that expertise as a service, and this is a crucial point of differentiation for employers. The applicant that behaves in the most professional manner is usually the prime candidate for a position.’ So what does it mean to be professional? Here are five essential qualities that clients and employers expect. The building of relationships and trust Successful business relationships are built on trust, making it by far the most important quality of professionalism. ‘The confidence to trust someone comes from the way they conduct themselves,’ says Ros. ‘Clients and employers will, of course, assess you on your technical ability, but a great deal more contributes to their overall impression of you.’ ‘If a candidate is late, messy, uncommunicative, rude or evasive, this all serves to undermine the perception of trust. This isn’t restricted to interviews, as professionals are judged on how they conduct themselves every single day.’ Demonstrating responsibility ‘Responsibility and trust go hand in hand,’ explains Ian Waters, ACCA head of standards. ‘Every organisation relies on finance, which means finance professionals play a critical role in an organisation’s success. Clients and employers must be certain that you can not only carry out tasks to a high standard but also do it honestly, objectively, confidentially and in compliance with relevant laws and regulations.’ ‘This is why ACCA continues to drive professional responsibility in the finance sector, with a mandatory ethics module, a comprehensive ethical framework in the ACCA Rulebook that applies to students as well as members, and a positive engagement with the International Ethics Standards Board for Accountants (IESBA).’ Striving for excellence Manufacturers rely heavily on ‘quality assurance’, simply because one bad product can drive customers to buy elsewhere. Finance professionals must embrace quality assurance for the same reason, bearing in mind one critical difference – they take personal responsibility for their own quality assurance. ‘Quality assurance is an obligation that professionals have to their client or employer under the ethical principle of competence and due care,’ says Ros Leah. ‘Beyond that, striving for excellence is particularly important for those with ambitious career objectives as it can lead to professional recommendations and much greater opportunities.’ ‘Continuing professional development (CPD) is an essential part of this. Keep up to date with technical developments, embrace new skills, and continually challenge yourself to do better.’ Adding value Today’s world demands more of its professionals across all sectors and industries. More than ever, clients and employers are looking for individuals who can deliver a much broader positive impact on their organisation. This can take many forms, from improved business processes to initiatives that enhance team-working and morale. Today’s professionals must also be more considerate of how their actions affect communities and the environment. In many sectors, corporate social responsibility has even become a driving force for business improvement. Representing your profession ‘The conduct of professionals has a strong impact on their profession,’ explains Ian Waters. ‘Those with positions of responsibility have never been more closely scrutinised, both by traditional and social media. In particular, failures of integrity and ethics can have an extremely damaging effect, and ultimately weaken public trust in the profession overall. As a membership body, ACCA is in a similar position, which is why we expect all of our students and members to be positive role models and ambassadors of our organisation. In summary, professionalism encompasses every aspect of your presence as a service provider, and it may help to consider this in three layers. At the core, professionalism means delivering your technical expertise reliably, responsibly, ethically, with a continual pursuit of excellence, and in a way that adds value to your client or employer’s organisation. Supporting this are ‘soft skills’ such as written and verbal communication, team-working and leadership. And underpinning everything are personal standards such as time-keeping, appearance and your ability to treat colleagues with respect. Combined, this builds into a cumulative reputation of trust that will ensure clients and employers see you as a valuable asset within their organisation. If you’ve completed the AAT Professional Diploma in Accounting you’ve already started your journey to ACCA. You will receive free exemptions, meaning you will get a head start and qualify sooner. Find out more and claim your free exemptions.
How to build resilience in the workplace Posted 02/28/2019 by Sophie Cross & filed under Career, Members. Our wellbeing should always sit at the top of our priority list, but however much we like our jobs, they can cause us a rollercoaster of emotions. We spoke to Kate Greenslade, a mindfulness life coach at onlinemindfulnesscoach.com, about how we can build resilience and create healthy habits that are scientifically proven to help reduce stress and anxiety. The most common things that cause stress and fear There is a ton of issues which bring about stress and fear, but the main one is worrying about things that haven’t happened yet and probably won’t happen. There’s fear about the future and what might be around the corner. It’s easy to get caught up in but it’s never nearly as scary as what we make up in our heads. “My life has been full of terrible misfortunes, most of which never happened.” – Mark Twain When we’re stressed it can cause us to have a disproportionate emotional response. Recent scientific discoveries have identified this as the amygdala hijack – when our rational mind stops working and we react without thinking in a way that would normally be out of character. It’s because our ‘fight or flight’ part of the brain has been triggered. Humans would’ve needed this in the past for survival when they lived in the wild but responding like this now, day to day in work or personal situations, is not serving us. How can we stop worrying about things that are out of our control? Another cause of stress and anxiety is obsessing over what we could have done differently. One of the big things that we can do is practise acceptance for things we can’t change. Use ‘it is what it is’ as a mantra in stressful situations – it can break that loop in your head and help you take that step back. Let go of resistance – recognise and remember that the more we hold on to something that we don’t have any control over, the worse we will feel. Trust that things normally turn out ok. Stress only makes us unhappy and unwell and won’t change the outcome. How can we generate the courage to change things that are in our control? If you have something like a big presentation coming up that you are nervous about, don’t just prepare your notes and slides, but also do some preparation around how you might feel mentally, what might trigger you emotionally, and how you can let these feelings go. If you are trying to make a big decision, be clear about your intentions – why do you want to do it? Don’t work with “shoulds” as they will cause conflict and are not what you actually feel. Focus on your authentic self and trust yourself. Use your gut instinct and your intuition as opposed to always trying to intellectualise decisions, which can cause worry. Ask yourself what’s the worst that could happen – and is that likely to happen? How can mindfulness help? It helps massively just to know that there is another way to think, behave and feel. In general, people find it difficult to believe that we can adjust the way we think. But neuroscience tells us that the brain is constantly rewiring itself, even down to how we act and use our body. It has plasticity and the more we make the effort to change, the more it will change. If you’re always negative then that will naturally become the way you think and feel. You need to have the intention to change, repeating similar feelings, thoughts and actions to positively rewire the brain. Applied mindfulness can help you identify behavioural patterns that you want to alter – first understanding what they are, then learning how to shift those patterns. Regular mindfulness practice increases an inner calm and reduces anxiety. With it, you will build up resilience by increasing awareness of your own actions, thoughts and emotions. What healthy habits can we create to promote wellbeing? Regular meditation really works and so many people are starting to embrace it now with apps like Headspace and Calm. It allows you to build resilience to everyday stresses by creating inner space. If sitting still in silence fills you with dread then you can anchor meditation to something you already do like a daily walk. Force yourself out of autopilot and notice more of the little things to do with your environment, the people around you and how you behave towards other people – do you really listen and live in the present moment? Practice being grateful for small things. Notice if someone makes you a cup of tea and enjoy elements of people’s characters that you might not have seen before – it will bring you (and everyone around you) more joy. If you’d like to reduce your stress and create positive habits in your life, contact Kate Greenslade on 0790 888 9262 or [email protected] for a free introductory session.
Why accountants are looking to integrate management systems Posted 02/27/2019 by Marianne Curphey & filed under Members, Run your business. There are a number of reasons why accountancy firms and practitioners might want to combine and streamline their management systems. Among the potential benefits are: having a single set of standards for the entire business, increased efficiency, potential cost savings, a higher level of security and a reduction in duplication and bureaucracy. Another advantage of integrating management systems is that essential but repetitive tasks can be automated, freeing staff to add value to their interactions with clients and reduce human error. It can also enable real time data sharing to improve decision making, which is important for accountants who are advising clients about the overall financial health of their clients’ businesses. If you are an SME or sole practitioner, and you want to increase the size of your business, a well-integrated management system can also help you scale up. It can also help with Making Tax Digital and provide a better customer service. Adding value to your business “Technology is increasingly enabling traditional, time-consuming tasks to be streamlined and automated, and we are seeing the accountancy profession transitioning towards strategic financial consulting for businesses,” says Will Farnell, Founder of Farnell Clarke and Consultant at Soldo. “Larger and more specialist accountancy firms with enterprise-level clients will have already incorporated this sort of consultancy into their service offerings,” he says. “However, with the right use of technology and the right ‘digital’ mindset, smaller firms can now do this too.” Not only does this benefit clients – who get more out of their relationships with accountants – but it also supports the business growth aspirations of these accountancy firms. “It enables these firms to build and retain loyal customer relationships, as well aspire towards winning larger clients, and therefore stimulate increased revenue.” Reducing human error “Humans aren’t infallible,” says Darren Cran, COO of AccountsIQ. “Previous processes with non-integrated systems would have seen the manual movement of data from one system to another and potential rekeying errors.” Integrating management systems enables accountants to reduce errors, gives them greater insight and visibility of performance and enables them to make decisions based on factual information. “Through the Cloud and API technology it is now possible to integrate all systems (CRM, HR, Finance, Payroll) and have all the information in one place, to be able to interpret key financial information about the organisation,” he says. Improving customer service Many sources of information can be collated and can provide really useful, accurate and real-time business intelligence and financial information to a client, say Darren Cran. “A lot of the routine work that accountants are used to doing will phase out over time as more and more automation comes in,” he says. “Then it will become more about advisory-based work. Accountants will need to fully embrace digital technology as that is what the new generation of businesses and people are used to.” Will Farnell says integrating apps with core management systems will allow accountants to deliver live, meaningful financial data to clients from across a broad range of key areas. “When you can compare and contrast data from a number of different sources, hidden issues are easier to uncover – and it’s often the case that the data itself can point to possible solutions,” he says. “Of course, this isn’t to say that the accountant plays no part; rather, the accountant becomes responsible for translating this data into meaningful actions that will benefit the client.” Darren Cran says larger accountancy practices are moving with the times and are now setting up portals to enable their customers to view their real time financial position and underlying data. Making your business more competitive Automated and integrated systems can save time and money, says Darren Upson, VP Small Business Europe, Soldo. If you are charging by the hour, you can make your services more competitive if much of the administrative work is done automatically. “The efficiency gains that a firm can make as a result of building a tightly integrated technology stack can’t be understated,” he says. “Many accounting actions completed manually can take twice as long as those completed using automation. Time-sapping tasks can be a huge issue, especially as many accountants work on either a time-based or fixed-fee billing system. Why spend time on these tasks, when time could be spent on more valuable (and potentially more profitable) advisory work?” Darren Cran says system alerts will help ensure any compliance deadlines are met, which are particularly important for accountancy practices in delivering great customer service, as well as being able to provide enhanced information about their own or their clients’ business. Building a more consultative service The interpretation of this wealth of data is something that humans can do, which machines and artificial intelligence cannot. That is where business relationships can be enhanced by technology. “This is the approach accountants will need to take to build better client relationships and continue to add value,” says Will Farnell. “This consultative element of the profession isn’t necessarily new – but it is something that accountancy firms will now have more time to develop and today’s clients are demanding more of.” Darren Upson of Soldo, says apps and systems can perform data management tasks more effectively, but they can’t (at least not yet) offer the deep level of analysis and strategic thinking that a human can. “Understanding this difference is central to understanding the best way for accountants to work in tandem with technology,” he says. “A more efficient use of automation will also help accountants to counter the inevitable downward pressure in compliance fees.” The next steps “Becoming a ‘digital’, data-driven firm isn’t a quick and easy process,” says Will Farnell. “The integration of different accounting systems and apps can’t be done off the cuff – it needs to be planned very carefully, with input from all key stakeholders.” This not only means seeking input from staff within the firm, but also from your existing clients and prospects. Accountants need to take the time gather this information and then use it to determine which individual apps and systems will complement and work best with each other – with the overarching aim of painting a better picture of financial health. Future-proofing your career With the rise of digitisation, technology has become of vital importance for accountants, says Marc Trup, Founder and CEO of Arthur Online. Being proficient with business accounting software is a critical part of an accountant’s skill set, he says. “Using software to manage their clients’ accounts can potentially benefit an accountant’s credibility and help expand their reach,” he says. Both Xero and QuickBooks offer a marketplace area with a variety of integrated software designed to serve different purposes, giving accountants access to a wide range of apps that suit their business types. “It’s more expensive and time-consuming to bring on board a new client than it is to retain an existing client,” he says. “So being able to offer your clients useful services and solutions they can’t get elsewhere will be a real benefit.”
Personal privacy at work: how it is being compromised Posted 02/27/2019 by Georgina Fuller & filed under Career, Members. The need for personal privacy is a basic instinct, but we are also social creatures and modern technology is exploiting that, Baroness Sharmi Chakrabarti said at conference in November 2018. The former director of Liberty civil liberties group told delegates at the CIPD conference in Manchester: “There are huge risks when it comes to communicating online and our digital imprint is seriously compromising us.” Social media and personal privacy is, she said, something that is very tricky for employers to navigate. “It’s an asset but a liability too. I generally advocate more trust and less snooping but employers need to have a conversation with employees about what is and isn’t acceptable.” Tech providers, such as Facebook and Twitter, also had an ethical responsibility to look after people’s virtual safety and ensure that people weren’t vilified or subjected to online trolling, the barrister said. Protecting your privacy at work Paul Bischoff, editor of Comparitech website, said that there are a number of ways employees can compromise their personal privacy, and that of their employer. “Employees who log into social media, shopping websites, and other accounts on office devices might not realise that their activity can be monitored and recorded by their employer, even when those devices are taken off company property,” he notes. “On top of that, accidentally leaving an account logged in or saving your login credentials to a work computer can leave openings for other in the office to invade your privacy.” Employees should be aware of the lawful extent of employment background checks and at-work surveillance, Bischoff says. “For example, employees are not required under any circumstance to give an employer the passwords to their social media accounts.” Implementation of a data protection policy When it comes to implementing a data protection policy, there are four key things which should be considered. “What information is collected, how it’s used, who can access it, and how long it is retained,” Bischoff explains. “The first point is pretty self-explanatory. Employees and customers alike should know their data is being used and the context under which it was collected. Access should be limited to the minimum number of people possible, and employees need to give opt-in consent for their information to be shared with any third parties. Finally, personal data should have an expiration date. When data reaches the age limit, or when a customer or employee leaves the company, their data should be deleted.” A network security policy might also be necessary to support the more general privacy policy. “This can include company policies about how to spot and handle phishing emails, what activity is allowed on work devices, limitations on personal devices accessing the network, and disaster recovery plans,” says Bischoff. Why millennials and Generation Z are most at risk Tom Tahany, intelligence analyst at Blackstone Consultancy security specialist says millennials (those born between 1981-96) and Generation Z (1997 onwards) are the ones who are most at risk of flouting privacy regulations. “Journalist Marlo Stern, writing for the Daily Beast, coined the term ‘generation overshare’ to describe how the younger generation posts vast amounts of data online,” he notes. “From sources such as Facebook, Twitter and Instagram it is possible to chart enormous sections of an individual’s lives, from where they shop to where they holiday and even discover details about their daily routine.” Under the revised General Data Protection Regulation (GDPR), which came into force on 25th May 2018, companies must also use ‘appropriate technical and organisational security measures’ to protect the data they collect on employees against accidental loss, disclosure or unauthorised processing. Sean Potter, content manager at Evoluted digital agency says: “In addition, people will be allowed to request for valid updates to be made to any information held about them at any point.” Maintaining GDPR for employees In data terms, your organisation is what’s known as the ‘data controller.’ Potter explains: “This means that the responsibility for compliance is placed firmly at your door. To prove compliance with GDPR, you will need to maintain ongoing records. You’ll also need to put policies in place for governing the collection and use of data.” Some companies, especially larger organisations, outsource GDPR to as Data Protection Officer (DPO). “This would provide you with a dedicated employee with extensive GDPR knowledge – and also the time to handle all potential time taken up by the area (removal requests, requests for information held, knowledge shared throughout the company etc.)” Potter says. “Only you can decide whether a DPO is right for your company. The amount of data you handle may be the deciding factor.”
How can you stand out from the crowd and take on new opportunities? Posted 02/25/2019 by The content team & filed under Annual Conference, Members. 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 and your career? We asked Hayley Lavens FMAAT, Professional Member of the Year 2018 (FMAAT). What has winning the award led to? It has been really beneficial in raising my profile and I have had a few people asking me to mentor them which has been really rewarding. I have been able to deliver my message about not going to university and the opportunities that the AAT qualification has given to me. Recently speaking at a local school, it really helped that I had won an award to show I am good at what I do, but also was nice to show that us accountants can be glamorous too! I hope to continue to inspire others and assist where I can with the AAT and with young people looking to start their journey. For me personally, winning the award has given me a confidence boost. The recognition at being chosen as the winner was a real honour and on days where I may feel lost, I look at the award and feel on top of the world again. What do you think the judges were looking for/what do you think was special about your entry? I think the judges wanted an entry that stood out and was a bit different. I don’t really feel that mine was special but I was honest with the ups and downs of my career journey so far. Possibly the judges were looking for a journey that had started from the beginning and progressed to Finance Director level to inspire others. If this is the case I hope that people have read about my achievements and think – I can do that too! Do you have any advice for would-be entrants? Just go for it and enter! I nearly didn’t, it was my colleagues who persuaded me and I am so glad I did, I never expected to even be shortlisted. Write your entry with honesty and think about how someone else could read about you and feel inspired and motivated. If you don’t give it a try you may never discover that you are an Award-Winning AAT Member! 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.
Keeping up to speed as a bookkeeper in the digital world Posted 02/22/2019 by Marianne Curphey & filed under Bookkeepers, Pensions and payroll. New technology is changing the way bookkeepers work. While the skills of numeracy and accuracy remain important, it’s also vital to keep up with changes in technology and legislation. How can bookkeepers stay up to speed in a rapidly changing digital world? Less admin, more insight Technology is changing the nature of a bookkeeper or accountant’s role from administrative-heavy tasks to more specialist services. Paul McCooey is a director at Duncan & Toplis and head of the company’s bookkeeping committee. He leads D&T Online, their cloud service, and says over the last few years there has been rapid change in the industry. “The advances in Cloud software and the implementation of Making Tax Digital has meant that the mindscape for bookkeepers and accountants in the UK has changed immeasurably over the last few years,” he says. “Thankfully working through a big pile of invoices and bank statements to produce limited historic information should be a thing of the past. Instead producing up to date and meaningful financial insights should be what the future holds for bookkeepers and accountants working in tandem.” Mark Purdue, Product Manager – Tax Products, at Thomson Reuters, says technology has helped bookkeepers become much more efficient. “Efficiency is the main benefit of technology adoption,” he says. “Efficiency in your communication with clients, and efficiency in the service offering you give them.” Instant access to client data and being able to share results and reports with clients immediately, will be key in an efficient relationship between client and the accountant or bookkeeper. Being open to change Paul McCooey says that anyone who is setting out in a career in bookkeeping is very likely now to be using these tools daily. “Unless you are working in an organisation that is immune to these changes, if you are not using these tools you should be,” he says. “By not utilising them efficiently you are not providing clients with the best service and are potentially harming them.” The beauty of these systems is that they are easy to use. “More important than knowledge of debits and credits is an openness to change, a willingness to spend time learning the capability of the software and an ability to put in place processes to make the most of the efficiencies of the new cloud eco-system,” he says. What’s more, the client is changing too. People are used to apps on their smartphone that give them access to real time information and data, and they will come to expect it from their professional advisers, too. “As new generations of clients come on board, so do their expectations,” says Mark Purdue. “Printed paper and postage will not meet the demands of this younger generation of client. The flow of information from client to accountant/bookkeeper and back to client cannot be paper based any more, it has to be done with the use of technology.” Efficiency is the main benefit of technology adoption Becoming more productive Used correctly, these systems will enable bookkeepers to complete their traditional role in significantly less time and with greater accuracy. “The important point then is what to do with this freed up capacity,” says Paul McCooey. “It would be very easy to try and fill it with more and more work whereby you will be back in the position you started not having enough hours in the day.” He suggests extra time might be used for: Learning about the systems, the add-on market and the ongoing changes in the market to ensure you stay abreast of new developments. “Otherwise you will fall behind and not be delivering what is best for your clients.” Adding value to your clients – do more for them. “Spend time interpreting the information you are producing and helping business owners understand the numbers. Work with the accountant in partnership, together there is an opportunity to add real value for clients. If business owners have better information, they can make better business decisions leading to better more profitable business.” Serving clients better “A key benefit of technologies now and in the future, is data analytics,” says Mark Purdue. “The provision of financial statements to remain compliant won’t be all that clients look for in the future. They’ll want additional information to help them run efficient businesses.” He says that identifying KPI issues and future potential cash flow issues all take time today. “With technology this insight is easily available to add value to the client when they need it most.” Staying on top of new legislation Making Tax Digital for VAT is the catalyst for large-scale digitalisation and smarter technology adoption, says Damon Anderson, Director Partner and Product UK & EMEA at Xero. “This will change the way accountants work. It’s going to eliminate the need for repetitive manual bookkeeping tasks, freeing up accountants to offer more advisory services.” The transparent and immediate nature of digital technology may also mean that accountants may find themselves working in real time on the same financial document as clients. “This is a major shift, as we see more and more accountants use the latest technologies which enables them to shift from being number crunchers to business advisors,” he says. “With the right preparation and software, the legislation can be an opportunity for accounting professionals to skill-up and embrace the digital future.” Top tips to succeed in the digital age: “Embrace the new systems that are available, stop focusing on historic information, work in partnership with an accountant and as a result of this help your clients grow and become better businesses,” says Paul McCooey. “Technology is always changing and advancing. Staying in touch with your professional body is an important way to keep up to date,” says Mark Purdue. Analyse your current software provider – if they are not talking about the future, particularly the myriad of upcoming compliance changes, then find one that is. Keep up to date – your clients will view you as a trusted source of accounting technology information, and will expect you to be up to date, says Mark Purdue.
The benefits of face to face interactions – less virtual, more physical Posted 02/21/2019 by Georgina Fuller & filed under Career, Members. Since the dawn of the digital age, where emails and social media rule, face to face meetings have taken something of a nose dive. Those of us who were born before 1981, dubbed ‘digital immigrants’ remember a time when there was no Google or mobiles and you had to pick up the phone or arrange to meet someone in person. It’s probably fair to say that digital natives (loosely categorised as those born after 1981), on the other hand, are more au fait with texting than talking and virtual meetings rather than physical ones. Loneliness epidemic Speaking at the CIPD conference in November last year, author and millennial Dan Schwabel, said we were in the midst of a “loneliness epidemic” and that remote working, which was often seen as a major benefit, could potentially leave people feeling isolated. The Back to Human author said: “Great ideas come from socialising and how people behave is usually different to what they actually want and need. Sending a text or email is easier than speaking to people face to face but social integration is essential to our wellbeing and individual needs.” Virtual interaction But can virtual meetings or webinars help bridge the gap in the absence of face to face meetings? In a word, no, says Jonathan Taylor, senior psychologist at Pearn Kandola business psychology firm. “When I’m coaching someone and there is distance involved, I always insist on doing it through video conference, such as Skype for Business, because it’s so important for us to see each other’s body language and show that you are taking a genuine interest in what people are saying.” Words matter but not as much as the way we say them, according to Taylor. “There were some famous experiments by psychologist Albert Mehrabian in the 60s and 70s, where he looked at the impact of our communication,” he explains. “His conclusions were that our words do not carry as much impact as we think and that much of the influence of our communication comes from our body language and tone.” Building relationships Mehrabian found, for example, that 55% of the impact of our communication came from body language, 38% from the tone of voice, and just 7% from the words themselves. Face to face interaction is really important when it comes to building trust and rapport with someone and it takes significantly longer to build a relationship when you’re doing it primarily online and have to guess the meaning behind the words, says Taylor. “In a typical 10 minute conversation, studies show we can give away up to 150 micro-behaviours, which can be positive or negative. When we’re building trust with someone, the ‘micro-affirmations’ that we give away are really important – eye contact, open body language, building on what we hear. Our body language reinforces our words and our intent,” he notes. Creating a more inclusive environment One to one meetings and communication is also important when it comes to diversity and inclusion, says Taylor. “Micro-affirmations are a very important part of inclusive leadership – reinforcing your intent to include everyone in discussions. It’s very difficult to demonstrate inclusive leadership in the absence of face to face (or virtual face to face) non-verbal cues.” Sara Hope, founder of The Conversation Space coaching consultancy, says we should place as much emphasis on conversational skills as we do on data analytics, technology and AI. “Conversation happens at every moment, in every company yet it is often one of the most under-rated and under-developed skills, even though it carries the greatest potential to impact organisational culture, performance, brand and engagement – both positively and negatively,” she notes. Making yourself vulnerable We often underestimate the importance of good communication and conversation, says Hope, and the skills it takes to grow trust, build empathy and influence others. “The way we talk to each other, person to person; to our clients and customers and to the other people that we work with in our organisations, sets the tone and cultural norms at a foundational level.” Business leaders need to try and have more face to face conversations and to speak more candidly and openly, Hope believes. “Leaders need to have more courageous conversations, to show up in person and to show a high degree of humility and willingness to be vulnerable,” she says. So next time you’re thinking of sending that email, it might be worth picking up the phone and trying to do it over coffee or lunch instead.
Excel tips: Creating financial statements part 1 – Creating an extended trial balance Posted 02/20/2019 by Gill Myers & filed under Advanced Diploma, Excel tips, Students. Excel tips: Creating financial statements series Part 1 – Creating an extended trial balance Part 2 – How to avoid errors when using the sort functions Part 3 – Using basic functionality when creating financial statements Working with spreadsheets can make accounting tasks much more efficient and reliable once we have learnt to use the required functionality. However, in order to achieve that we have to combine accounting knowledge with spreadsheet skills and for many of us, bringing both areas together is a real challenge. In this article we’re going to work through how to use basic Excel functions when creating an extended trial balance (ETB). It is easy to focus our attention on Excel’s advanced functions and formulas and underestimate the value of having a good working knowledge of the basics. Download the raw trial balance (TB) for GM Consultancy, which has been exported at year end from accounting software. In the first tab we can see that the TB balances and there is no suspense account to clear. In the second tab we find some year-end adjustments that need incorporating. Therefore, we can start by formatting three more pairs of columns for the adjustments, Statement of Profit or Loss (SoPL) and Statement of Financial Position (SoFP). We can use the copy and paste functions to replicate the debit and credit headings already present. Note that once we have copied cells B5 and C5 they are highlighted with a dashed green border, and whilst this is still highlighted we can paste multiple times: Once the paste has been applied to cells in columns H and I, press the Esc button, on your keyboard, to clear the copy. The Esc button can be used to clear any cells highlighted in this way and is really useful to remember when you click on a cell by mistake in the middle of writing a formula and it all starts to go wrong! Merge and centre can be used to add overarching headings: Wrap text can be used to make the text fit when it is too long for the cell width: However, be aware that the combination of merging cells and wrapping text will result in the wrap not appearing to work or the cell height being inappropriate. Therefore don’t be put off by making manual adjustments. The height and width of rows and columns can be adjusted by clicking below the row in question or to the right of the column, the cursor will change to a black cross with arrow heads that indicate the direction in which changes can be made, drag the cursor and the change will occur once you stop: Double clicking, when the cursor is in the same position, will automatically adjust the height or width of rows and columns to fit the contents of the cells affected. However, again be aware that this will not work if the text in the cells is wrapped. If you click on cell A16 then you will notice that a number of boxes on the Home ribbon become highlighted: This tells us what formatting has been applied to this cell, including Wrap Text. Therefore we need to click on Wrap Text to remove it, then double click to the right of column A to automatically adjust the column width and stop the text from overflowing into column B. Now we have created a basic structure for our ETB, additional rows can be added for the year-end adjustments. Cells can be inserted, deleted and formatted in a number of ways using the buttons on the Home ribbon. However, if you highlight the row below where additional one(s) are required, a simple click or clicks on the Insert button produces the desired result. In this case we need five rows for the adjustments and profit/loss calculation. Making any adjustments to the pre-existing text, after copying and pasting, can be quicker than re-typing the account names required. At this stage it is often useful to scroll the screen to a sensible point, we don’t need to see the titles, and then freeze some rows as it is really useful to always be able to see the headings. In this case, the most appropriate options is clicking in A6 then selecting freeze panes: Now we can enter the year-end adjustments linking cells wherever possible. This is because if we need to make changes in the future, a change to the original figure will then automatically occur in all the cells it is link to and will consequently improve accuracy and efficiency. This is achieved through direct cell referencing and can be combined with linking sheets. To add the adjustment for the irrecoverable debt: Type = in D26 Click into the Year-end adjustments tab and select B1 Press your Enter button to return (Do not try to manually return to the TB tab and remember the Esc button if you need to start again!) Type = in E7 Click on D26 and press Enter The other adjustments can be made in a similar manner except the depreciation charge. However, the formula for the deprecation charge should still link to source figures, in other words, the non-current asset and accumulated depreciation accounts: As we all know the totals of the adjustment columns should balance. There are already totals in place for the TB columns that use SUM formulas we can drag along the row and apply to the other columns: Be mindful that formulas may not cover the full range of cells required if you have inserted rows at the end of the original data range, as we did in this example. Therefore the formula in B31 needed amending from = SUM(B6:B25) to = SUM(B6:B30) before it was dragged. Direct cell referencing and formulas should be used to extend the TB into the financial statement columns: Once the extension is complete, the formatting of the worksheet can be improved because currently there is a mixture of raw data and Excel’s default settings. The whole of a worksheet can be selected by clicking on the triangle in the left hand corner where the rows and columns meet: From there you can change the font type and size. Changes made in this way might effect cells that you would prefer to be different, such as the titles or headings but it can be quicker to apply mass changes and then re-format cells to be highlighted, than do each area separately. Now let’s delete all the 0.00 entries and reformat the cells containing numbers to currency but without any pence: Lastly a formula should be used to calculate the profit or loss for the year, and double entered into the SoFP using a link: In the next article, we will look at avoiding errors using the sort functions within Excel to produce the financial statements from our ETB. In the meantime download my finalised spreadsheet and compare it to yours. Read more tips on Excel here Browse the full range of AAT study support resources here
Why accountants should consider specialising Posted 02/20/2019 by Sophie Cross & filed under Members, Run your business. In business, it’s often considered risky to narrow down your offering because of the assumption that this will also reduce your opportunities to generate revenue. On the contrary, having a specialism, or targeting a specific industry, could lead to more success, not less, whether you run your own business or are an employee. With the amount of choice now available to customers, modern day business strategies and marketing messages have changed considerably. They’ve moved away from generic promises of ‘quality service’ and ‘decades of experience across a wide variety of industries’. Creating a USP Now the the focus is on creating unique selling points that appeal to a selective audience and really set you apart. And the workforce trend towards a ‘gig economy’ means that companies are more easily able to recruit people who match their exact requirements, so people who are experts in their field are sought after. Specialising can make it easier to lead generate and move up the career ladder quickly and here’s why: Otherwise, you’re trying to be everything to everybody Without having a niche, how do you know where to start looking for business or a job? Marketing your business or yourself to a segmented audience is much easier, cheaper and more effective than trying to promote yourself to everybody. Networking becomes less painful By focusing on an industry you can join the trade bodies and associations for that industry and attend their conferences and networking events. These industry events are likely to be much more promising in terms of quality prospects and with less competition from other accountants than local networking or Chamber of Commerce events. Making sure your online content reflects your specialism is a great way to get found by prospects You’ll be positioning yourself as the expert By focusing on an industry or service you’ll know exactly what topics you should be talking about, and how you can add value to that industry, as opposed to just being an accountant. You’ll come across as professional, credible and confident which will make it easier to get jobs and clients, even if it is from other industries that have synergy and where skills are transferable. You’re more likely to get word-of-mouth referrals As the expert accountant in an industry, you’re more likely to be at the forefront of people’s minds when they are talking to their peers, and you’ll be more likely to be recommended. Your practice won’t be limited by geographical area By focusing on an industry, your clients will actually come to you from further afield and you’ll not be limited to the local market. This means that if your area becomes saturated with accountants or suffers an economic downturn, you won’t be affected. It’s great for search engine optimisation A property developer in Birmingham looking for an accountant is probably going to Google “accountants for property developers Birmingham”. Similarly, if a vet is looking to sell their practice then they might search on LinkedIn for accountants with veterinary practice experience. It’s unlikely that anyone will just be searching for “an accountant” and you would have zero chance of appearing if they did anyway. Specialising and making sure your online content reflects your specialism is a great way to get found by prospects. You can pick a specialism that suits you Choose an industry or service that you already have experience in or one that you think you’ll enjoy working for the most. As an accountant, you’ll get to have involvement and exposure to the other parts of the business so choose one that you find interesting. If you’re setting up your own business, do your research on where to specialise. Choose an industry that will benefit the most from your services – one that’s growing and known for having good budgets as it will be easier to charge the rate that you deserve. You’ll know where to focus your training Without choosing a service and/or industry as your niche, it’s sometimes hard to know which direction to develop your career in and where to focus your time and money for training. With a specialism, there is a much clearer pathway set out for you. It’s more likely that you can earn more or charge a premium By having a special set of skills you’re setting yourself apart from everyone else in the market. This means that instead of having to win business by competing on rate, you can justify charging a premium for your specialist knowledge.
How to ace a competency-based interview Posted 02/18/2019 by Sophie Cross & filed under Interview tips. As with any interview, the key to mastering a competency-based interview is preparation. If you’ve done your research on the company, you’ve thought about what questions to expect and you’re ready with the answers then you can stroll into the interview with confidence, knowing that you’re going to give it your best shot. What is a competency-based interview? A competency-based interview (could also be called a situational, structural or behavioural interview) is designed to test whether you have the specific skills that match the job requirements, as opposed to finding out about your qualifications and experience. “Part of our interview process involves competency-based questions. We include competency questions as we want to understand how candidates would behave in a real-life scenario. We always look for evidence within the answers as this shows the candidate has experienced a similar situation in the past. But most importantly we want to get a sense of who you are as a person so try to relax and get your personality across as well as the competencies.” – Holly Byrne, Content Solutions Group Head, Global Radio What questions will you be asked? Competency-based questions are normally easily recognisable and will usually begin with one of the following (or similar). Describe a situation where you’ve… Have you ever had to… Tell me about a time when… Can you give me an example when… How can you prepare for a competency-based interview? Firstly, you will need to work out the competencies that you are most likely to be questioned about. To do this, scour the job description to find the key skills that they are looking for in the successful candidate. Also, think about the competencies that are relevant to the industry they’re in. As well as competencies specific to the role, company or industry, there are commonplace competencies that you are likely to be asked about. In no particular order, some of the most frequent competencies to come up are. Teamwork Communication Customer service Time-management Leadership Organisation Problem solving Delegation When you have your list of competencies, you’ll need to start preparing your answers for them. Go through your past experience (use your CV) and pick out stories which perfectly demonstrate your aptitude to the skill. As with your CV, your answers need to be tailored to the role. Using the STAR interview technique in your answers The trick in an interview is to choose the right story as your answer depending on the question and the competency. Don’t over-rehearse your stories as they will need to come across as natural on the day. To ensure that you convey your experience in a way that hits all the points that the interviewers are looking for, consider structuring your answers using the STAR technique. Situation Task Action Result Using the STAR technique will also help you to cut down on any waffle that you might be tempted to fall into. Start off your answer by setting the scene, then describe the project or responsibility that you were undertaking. Next talk about the process that you went through to create a solution or positive outcome, and conclude by telling them exactly what that was using metrics if you can. A good example of an answer to a teamwork question could be… “My teamwork skills were shown when I lead a team presentation for new business to one of our main prospective clients. Four of us were asked to present a 30-minute proposal as to how we could improve the prospects website conversion rates. As a team, we worked together to study their online analytics and conduct relevant competitor and market research. The client gave feedback to say that they were impressed with the proposal which showed them the benefits of our offering, the predicted results and costs within the allotted time frame. We ended up winning the business.” Interview basics Finally, make sure you have these five basics in place for any interview that you attend and go get them! 1. Dress to impress The night before make sure your clothes are ironed and your shoes are shiny. If you’re not certain of the company dress code, ask before you go or always err on the side of looking smart. 2. Arrive early There’s nothing like a last minute panic to get you in a fluster so give yourself loads of time to find the place. Leaving extra in case of traffic and unforeseen delays. 3. Research the business Have a thorough read of their website, social media channels and any other information you have access to. 4. Listen If the nerves tend to get to you it can be easy to rush through your answers and not hear the questions properly. Take your time and really engage with the interviewers. Make sure you adapt your pre-prepared answers to the questions. 5. Want the job One of the main things that an employer wants to see is that you are enthusiastic about the role so don’t be afraid to tell them. If it’s neck and neck between you and another candidate then this could set you apart.