Practice assessments: the key to an excellent grade Posted 02/03/2025 by Sam Perkin & filed under Study tips. You’re studying to achieve your qualification, so you need to pass assessments. It may be some time since you last sat an assessment. As in life, preparation is key. Failure to plan is planning to fail… Enter your assessment date in your study planner. Then start to write your sticky notes and enter them in your diary. Review all your notes and practice, practice and practice. Reading the book is a passive form of learning and has limited success, so make your revision active. Can you recreate a definition on a postcard by only looking at the front? Can you explain a principle to someone (real or imaginary)? Once you’ve mastered that, do some e-learning on AAT, the Green Light tests are next on your task list. The Examiner reports are the next thing to read, review, scribble on and highlight. All AAT units have one and it reviews the student’s past performances, showing what worked and where they were weak, learn from other’s mistakes – an easy win. Use the qualification specification for your qualification. , Go through the learning objectives and work out what you can and can’t do. Now you can plan – focus your studies to fill those weaknesses. It’s very tempting to do questions you know, but in revision you need to concentrate on those you can’t answer. Do as many practice questions as you can, the adage practice makes perfect is true in accountancy. Practice assessments When it comes to a practice paper, first read the question carefully, then read what you need to do, then read the question again. So many marks are lost due to not answering the actual question asked, but answering what you think they have asked, or what you know. Consider your answers With practice papers, attempt to highlight the active verb and key points. So for example: “Describe what’s required in a business document to make it professional.” Your answer would be “A business document should be clear, easily understood, polite, accurate and free from errors.” Finally practice assessments, do them under assessment conditions, no books, no music or disruption. Don’t read the answers and say “Yes, that’s what I would have written.” It’s better learning to try, finish the paper and then review, if it’s wrong, you will learn from that. Practice assessments are designed to get you familiar with the layout, what is likely to be asked and in what format. The more you practice them the better final grade you will get. They are great active learning and focus on what knowledge is needed to pass the assessment. Top tip Each time you sit an assessment and self-mark, make sure you review where you could get more marks. Use them as a tool to further identify areas where you need to do more revision. Finally, assessments are not as scary as you imagine. If you’re likely to get stressed, practice deep measured breathing and remember the assessor just wants to be sure you understand the topic, they’re not trying to catch you out.
How students kickstarted a remarkable year with accelerAATe Posted 02/03/2025 by AAT Comment & filed under Community, Events, Members. We were pleased to produce another successful student conference, and to see so much of the community turn out. Our award-winning student conference returned this January to motivate and inspire students, and connect them with their peers. The three-day online conference consisted of six AAT-led sessions and three sponsored digital showcases. Students listened to and learned from tutors, industry professionals and past AAT students on all kinds of areas. They were able to ask questions across topics and think about their future. Find the right apprenticeship for you We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers post listings for all sorts of qualifications and career goals. Search now Benefits of attending So why do students keep coming back, year after year? At accelerAATe, they can: learn about the support we offer students hear from qualified AAT accountants about where their designations took them learn study tips from past students and members build confidence and help themselves stand out connect with community to network and get advice learn the technical skills needed to build a successful career. Building a community As a self studier with no teachers or peers, sessions like these inspire connection and motivation with others and also myself in my own studies, not to mention how valuable this is to my current role. AAT Student Natasha Hale One of the most significant intentions when we put together accelerAATe was to address isolation amongst our students, giving them a sense of community. One attendee (and 2024 panellist), Emma-Louise Waple, found “Studying at home has been rewarding but often lonely. While my husband and daughter have been incredibly supportive, it’s not quite the same as connecting with others who share the same journey. “After attending the AAT Student Conference in 2024, I was inspired to create a Facebook group. The conference was fantastic, offering plenty of opportunities to connect through the chat box, but once it ended, so did the communication. I launched the group to keep those connections alive. What started as a small initiative has grown to over 1,200 members in just a year, including students, tutors, authors, and honorary AAT members. “As someone starting fresh in a new career after having a child, community is crucial. The Facebook group offers a space for learners to connect, share advice, and support each other. I also attend webinars on accounting topics—even those unrelated to my current studies—because I believe in learning broadly and building connections. I use LinkedIn to stay in touch with people I meet through these events, as I value the power of networking. “I never imagined myself in accounting. I used to think accountants were men in suits who were maths whizzes – an image I couldn’t relate to. But that stereotype isn’t true. Technology and software make the work accessible and rewarding. I enjoy the challenge of learning something new, and AAT makes accounting approachable for everyone, whether you’re a mum like me, someone with learning difficulties, or anyone looking for a fresh start.” Find the right apprenticeship for you We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers post listings for all sorts of qualifications and career goals. Search now
AAT’s wellbeing hub Posted 02/02/2025 by AAT Comment & filed under Employers, Mental health, Students. Students, apprentices and employers can use our new wellbeing centre to access tangible resources. AAT takes the wellbeing of students very seriously and we know that mental health and wellbeing challenges have increased, particularly in the post-COVID era. We have seen an increase in calls to our customer service team regarding stress, anxiety, and depression, and we want to build our student community to provide support and advice. For this reason, we have set up an AAT wellbeing hub to: raise awareness of the existing well-being resources and benefits to students embed wellbeing support throughout the student experience use the student feedback we gain from our advisory groups to offer more of what students need develop a hub pulling together inspirational stories and tangible well-being resources. AAT also has in-person branch events and the student community, both of which provide an opportunity to meet other people and enjoy peer-to-peer support. There’s also a student advisory group, comprised of 30 students across three levels, who meet quarterly and feed into how to shape the future. Why has AAT has launched the wellbeing centre? “We want to help students,” says Montanna Stafford, AAT’s Product Manager for Students. “We know that combining work and study is tough, and if you have extra responsibilities such as caring for family members at the same time, the pressure is even greater. We know how hard our students work towards their qualifications and that at times it can seem overwhelming. AAT qualifications are a gateway to an exciting new career and great opportunities, and we want to support you every step of the way.” She points out that there has been an increase in home study and distant learning, and while that can be great to fit around other life and job commitments, it can also lead to burnout and loneliness. “We’re aware that there have been assessment problems and glitches and so we paused assessments for a number of months,” she says. “While we have sorted this out now, we know that people are still concerned about the cost of living, the cost of exams, and the financial strain of studying.” Mental health support matters External reports further reinforce the message that students are struggling with a number of different pressures. In ACCA’s Global Talent Trends survey, one of the key themes identified was addressing burnout as a priority as stress levels are on a high. The report also found that mental health remains a major challenge. Over half (57%) said their mental health suffers because of work pressures, and almost half still feel their employer doesn’t consider mental health to be a priority. What’s more, 90% of students surveyed by the National Union of Students (NUS) for its September 2022 Cost of Living report said the rising cost of living had negatively impacted their mental health. “Wellbeing means different things for different people,” says Montanna Stafford. “Over time, we hope to create a one-stop-shop and provide what’s helpful for our students, including inspirational stories, wellbeing links, information about charities and resources and peer support and communities.” AAT members can access benefits such as counselling and articles and advice on managing stress and help with stress and anxiety. “What we also discovered when we did our research was that 19% of students are neurodivergent, and that requests for access arrangements for exams has increased. This is the personal side of how students are overcoming their barriers. We want to raise awareness that we can help and that the need for special accommodations shouldn’t be a barrier. How can it help me? “We will continue to put on events to support student wellbeing,” says Montanna. “At our annual student conference, we had a session called Breaking down Barriers, where students and members described their personal struggles. That was very well received. “We also have inspirational stories from members like Melanie Walker, who thought that she’d be unable to work, and how AAT opened the door for her. The wellbeing hub pulls together tangible resources and inspirational stories and tips for success.” The Hub will provide mental health support, information and advice to members through articles on the AAT Comment site, including what to do if you need help with your mental health, managing digital burnout, balancing work and studying and managing stress and anxiety. Wellbeing is essential to help us thrive when it comes to productivity, maintaining relationships, building resilience, and ultimately feeling greater satisfaction in life. Whether it’s to do with your studies, your work, or facing life’s challenges we’re here to support you the best we can, so you can feel more equipped to tackle your day-to-day when managing stress and pursuing your goals. The wellbeing hub is curated by AAT and accessible to current AAT students, members, or AAT tutors. Further reading for students and members Mental Health Awareness Week: AAT reinforces commitment to mental wellbeing for staff and members How I overcame my mental health issues and went on to succeed with AAT Melanie Walker explains How to make distance learning work and you can watch her talking about her AAT experience here. Joshua Barlow explains how he has overcome the challenges of autism and Jayd’n Sarrington describes how AAT has helped change his life and his career prospects. More information for employers Wellbeing on a budget Working with neurodiversity Empowering student wellbeing: AAT’s new wellness learning pathway
Working with Borderline Personality Disorder Posted 02/01/2025 by Annie Makoff & filed under Members, Mental health. Being supported at work can make all the difference. Journalist Annie Makoff-Clark was diagnosed with borderline personality disorder (BPD) in 2009. At the time, it was such a stigmatised diagnosis she was advised never to disclose it to employers. Today, BPD is no longer such a taboo. Now she speaks to Joshua Wilson MAAT AATQB, winner of AAT’s Triumph Award 2023 about how he’s thriving at work while living with BPD. If someone offered me a high salary to work elsewhere, I wouldn’t take it – I’m really happy here. Joshua Wilson MAAT AATQB “BPD can be exhausting – you can experience big emotional changes several times a day,” says Joshua Wilson MAAT AATQB, Assistant Management Accountant at Veolia UK. “You might feel normal one minute, then experience anger or extreme sadness the next. It can be the tiniest thing that can trigger intense emotions.” Symptoms of BPD BPD is characterised by emotional instability, impulsive behaviours and distorted thinking. Some people with BPD experience suicide ideation (suicidal thoughts, ideas or behaviours). Other symptoms may include: Self-harm. Cognitive distortions/all-or-nothing thinking (seeing things in absolute terms An unsuccessful job interview may be interpreted as “I will never get a job” or “I am a failure” or being snapped at by a colleague may be interpreted as “they hate me and want to me to leave my job.”) Fear of abandonment and rejection. Destructive behaviours (self-harm, gambling, taking unnecessary risks). A pattern of unstable relationships. Anxiety. Paranoia. Understanding this condition has improved considerably thanks to societal shifts in mental health awareness, and it’s no longer as stigmatised as it once was. There’s more recognition for instance, that individuals with BPD have difficulty in regulating emotions such as sadness, guilt or anger and there may be an intense fear of abandonment or rejection. In many cases, BPD develops as a result of childhood trauma or where a child’s emotional experience has been constantly invalidated. Facing difficulties Josh’s mother passed away when he was 13. Josh began self-harming and tried to take his own life. “It was an absolutely awful time,” he recalls. “I went off the rails. At school, I went from doing really well to really badly. I threw my life away – or thought I had.” I started at Veolia doing admin and invoicing. Now I’m looking after my own contracts and I have a lot more responsibility. I’m loving every minute of it. He managed to secure a few retail jobs once he left school, but was still struggling emotionally. Then one day, completely out of the blue, Josh realised things had to change. “I used to get straight As and I was top set in everything. I’d have done A-levels if I hadn’t gone off the rails, so I knew if I carried on as I was, it was wasted potential.” Since his father was an accountant and it was a career he could imagine himself enjoying,Josh decided to study accountancy with AAT. Josh threw himself into his studies and discovered new-found determination. Self-studying turned out to be the making of him. Turning it around “When I started studying with AAT, that’s when I really started thriving,” he recalls. “Having both BPD and ADHD, it can be really hard to stay with one emotion, not act on impulses and stay focused. But I began developing skills and coping strategies to ensure I succeeded.” One way of ensuring Josh remained focused was to remove any potential distractions while he was studying. He removed his smartphone and TV from his room and constantly reminded himself of the rewards he would enjoy once he passed his exams. “Focusing on the end game really motivated me. I kept telling myself, ‘If I study now, if I pass my exams, I’ll get my qualifications and I can get a good job. But if I let my BPD win, I wouldn’t make my parents proud and I wouldn’t make myself proud.’” Ten years later, Josh looks back at how far he’s come with immense pride. He has AAT Level 4 under his belt along with an AAT bookkeeping qualification, and is currently studying for ACCA. He’s also worked for three accountancy firms including Veolia, where he’s been for the past three years. “I started at Veolia doing admin and invoicing. Now I’m looking after my own contracts and I have a lot more responsibility. I’m loving every minute of it.” Josh’s success is all the more incredible given the second trauma he experienced just last year when his father died from Covid-19. This time, Josh was determined to deal with his grief differently. Coping strategies “I built up a barrier when I lost mum but when my dad died, I knew I had responsibilities, like making funeral arrangements and looking after my younger brother. And I was determined to see my studies through and continue with my career even though I was grieving. My employer has been so supportive and let me take all the time off I needed.” Josh explains that losing both parents made him ‘immune’ to many things, but ultimately, going through that and coming out the other side demonstrated his inner strength. He’s since found the inner resilience to manage his BPD and ADHD symptoms and develop coping strategies. “It’s about knowing yourself better and identifying what triggers you,” Josh explains. Sometimes you can’t always avoid triggers so it’s about learning how to deal with your reactions to things. Sometimes I go for a walk or the gym, or simply sit with the feeling until it subsides.” In March, Josh was awarded the AAT Triumph Award, part of the first 2023 AAT Impact Awards in recognition of the challenges Josh has overcome. “I’d never won anything in my life so to receive the award was incredible,” says Josh. “It showed me how much my story had changed and that I’d done it myself through hard work and perseverance.” Success and confidence at work Josh is lucky to have a particularly supportive employer, too. “Veolia have been amazing from day one – they’ve been flexible and understanding when I’ve needed to take time off, allowed me to work flexible hours and have given me time and space if I’m having a bad day. If someone offered me a high salary to work elsewhere, I wouldn’t take it – I’m really happy here.” Josh says BPD affects his personal life more than work – navigating relationships can be particularly difficult and he sometimes overspends. For others with BPD however, it can sometimes be a challenge to regulate intense emotions during the working day. But as with everything, having the right support in place is key. Practical support So what can accountancy firms do to ensure employees with BPD feel supported? “There needs to be more understanding if someone with BPD is having a bad day or a bad moment. Offering a mental health day or an hour away from the office if they’re struggling can really help.” Josh suggests having quiet spaces available to help with emotional regulation or allowing employee to put themselves on Do Not Disturb mode for 15 minutes if they need space. BPD can bring great challenges, but can also be treated well. A therapy known as Dialectic Behavioural Therapy (DBT) has been developed for people with the diagnosis, and has a high success rate. Allowing employees to attend the twice-weekly DBT appointments will set them on the path to recovery. “Yes, mental health is a big thing but people shouldn’t let it define them,” Josh explains. “Everyone has their own battles to fight but they can always become a better version of themselves. Whether that takes five or 10 years, never give up fighting for that better version of yourself because everyone deserves happiness.” Resources Reasonable Adjustments What employers need to know BPD charities Borderline Arts Borderline Support UK CIC Specialist therapy Dialectic Behavioural Therapy (DBT) DBT is a one-to-two-year programme available on the NHS which equips individuals to navigate challenging life events and difficult situations with practical skills, mindfulness practice and individual therapy. Mentalization-based therapy (MBT) MBT is a form of psychotherapy which helps individuals to understand and make sense of thoughts, feelings and emotions (of themselves and of others) and linking these to actions and behaviours. It can help individuals gain more control over their emotions and reactions to difficult situations. Training workshops CPD UK Borderline Personality Disorder Awareness Course Self-help Things you can do
The defining events of 2025 for accountants and bookkeepers Posted 01/30/2025 by Annie Makoff & filed under Members. AAT and accountants give their opinions on the significant events coming up this year that you should be aware of. It’s likely to be an interesting year for UK businesses. With the new Labour government entering its first full calender year after six months in power, and Donald Trump’s second presidential term, new policies and legislation – both nationally and internationally – are likely to affect businesses. In April, employers’ National Insurance Contributions (NICs) will increase from 13.8% to 15%, while the threshold for eligibility to pay NICs will decrease from £9,100 to £5,000. Meanwhile, KPMG predicts that UK inflation could ‘average’ around 2.4% throughout 2025 with businesses passing price increases onto customers and clients. And national media have reported on a Bank of England interest rate ‘dilemma’ due to expected ‘inflationary pressures’. The risk of higher trade tariffs in the United States could affect UK businesses that have a client or customer base there. But it’s not all bad news for businesses. Larger numbers of SMEs will benefit from an expanded Employment Allowance scheme from April. This was initially introduced in 2014 to encourage smaller businesses to increase their workforce by reducing their NIC liabilities. Under the latest changes, the £100,000 Class 1 National Insurance liability threshold has been scrapped, enabling more businesses to meet eligibility criteria, and the maximum allowance has been increased from £5,000 to £10,500. Defining events of 2025 which are likely to impact businesses therefore may include: 6 February 2025 Bank of England interest rate changes – it’s been rumoured the Bank of England will cut interest rates four times during 2025 rising inflation 26 March Rachel Reeve’s Spring Forecast April implementation of Employment Allowance changes 2025 Autumn Budget. So what do accountants think? We asked accountants and bookkeepers for their views on what could be the significant events of 2025. Policy and public affairs events that AAT is keeping an eye on January Department for Business and Trade expected to publish consultation on late payments (previously expected before Christmas) Interim report of Government’s Curriculum Review expected to be published (Reference to this being published in the ‘New Year’ here) February Consultation expected on options to enhance HMRC’s powers and sanctions to take action against tax advisers who facilitate non-compliance (Budget document committed to publishing this in ‘early 2025’) Consultation expected on measures to tackle promoters of marketed tax avoidance (Budget document committed to publishing this in ‘early 2025’) Consultation expected on measures to modernise how HMRC acquires and uses third-party data to make it easier for taxpayers to get tax right the first time (Budget document committed to publishing this in ‘early 2025’) SME Digital Adoption Taskforce to publish interim report (Budget document committed to publishing this in ‘early 2025’) March Chancellor’s statement on Spring economic forecast (Confirmed for 26th March) April Many tax measures announced in October 2024 Budget come into effect, including Employer NICS, Inheritance Tax, non-dom and capital gains changes (6th April) Tax Administration and Maintenance Day (Date TBC, last year it was on 18th April 2024) May Likely announcement of Government Spending Review (Government has committed to publishing ‘in the Spring’) Expected outcome of consultation on effectiveness of AML regulations (Officials indicated to AAT that this would be published in ‘Spring 2025’) July Skills England expected to become fully operational (Likely mid-July – Government previously committed to 12 month timetable beginning July 2024) Publication of HMRC’s Annual Report (Typically published annually in mid-late July) September Liberal Democrat conference (beginning 20th September) Labour Party conference (beginning 28th September) Technical consultation on HMRC agent registration legislation expected to be published (Ministers confirmed this will be published ‘ahead of Budget 2025’ here) October New measures on prompt payments come into effect, requiring companies bidding for large government contracts to pay suppliers within 45 days (1st October) Conservative Party conference (beginning 5th October) Autumn Budget (No date confirmed but the Chancellor has committed to one fiscal event per year and previous Budget was on October 2024). Tax changes will define 2025, but their impact can be lessened Graeme Hills, Head of Tax at Duncan & Toplis Upcoming tax changes in April are certainly set to define 2025 from a business perspective, and the change with the biggest impact will likely be the employer National Insurance hikes. With employer NICs increasing to 15% and the secondary threshold almost halving to £5,000, finance departments across the country face an administrative and financial challenge. Some businesses will need to think hard about how many employees they can afford. Payroll is one of the biggest costs for many businesses, so paying out more in National Insurance, which adds costs without resource, could seriously affect cash flow and profits. To try and reduce this impact, businesses should look for ways to reduce overheads in different areas. For example, are suppliers still offering competitive pricing? Could upgrades such as energy-efficient machinery or technology reduce expenses? And is inventory management optimised to minimise waste? Conducting strategic cost reviews can uncover opportunities to improve margins and build resilience, helping to lessen the impact of tax increases and ensure profitability in 2025. Verdict: Tax changes will be substantial, but businesses can take steps to reduce the effects. Trump’s tariffs could affect UK businesses Andrew Moss, partner, DSG Chartered Accountants Two major events are set to have a significant impact on UK businesses in 2025. The October budget introduced policy changes that will affect many UK companies, while the first year of President Trump’s second term brings uncertainty, given his unconventional style and propensity for issuing executive orders. In the context of the budget, many businesses and business lobby groups have voiced concerns about both the increase in employers’ NICs and the rise in the National Minimum Wage (NMW). While smaller employers will be shielded from the NI increase by the employer allowance rising to £10,500, larger employers will face higher costs due to a lower threshold – adding roughly £600 per employee – on top of the rate increasing to 15%. This combination of measures will likely affect hiring decisions, wage increases, and could even prompt some businesses to reduce staffing. President Trump on the other hand has raised the spectre of tariffs on imported goods in a bid to protect the American economy and manufacturers. We don’t yet know whether this will impact UK manufacturers, those supplying goods directly to the US or supplying other countries who, in turn, supply to the US and therefore may be hit by increased tariffs. Uncertainty causes unease and UK business needs a degree of certainty in order to make long investment decisions which boost growth. Verdict: The impact of last year’s budget and Trump’s imported goods policy are likely to impact UK businesses this year. Rising inflation will remain a concern for businesses Ben Steele, certified chartered accountant, Streets Chartered Accountants and founder, ViFi As we head deeper into 2025, inflation remains a pressing issue for UK SMEs. With the Office for Budget Responsibility (OBR) forecasting an average inflation rate of 2.6% this year, the knock-on effect for business costs is unavoidable. Everything from raw materials to utility bills is going up, and it’s no surprise that 42% of business owners say rising running costs are their biggest concern for the year ahead. What’s particularly worrying is the projected financial hit SMEs could face. With inflation pressures combined with tax increases, businesses are looking at an estimated average loss of £138,000 each. For many, that’s a serious blow to their bottom line and potentially their long-term survival. But it’s not all doom and gloom. SMEs can take steps to ease the pressure such as reviewing costs, renegotiating with suppliers and making adjustments to pricing.It’s also vital to keep an eye on government policy updates and tap into professional financial advice to stay ahead of the curve. The resilience of SMEs has been tested time and again in recent years, and while 2025 won’t be easy, businesses that act proactively stand a much better chance of weathering the storm. Verdict: Rising inflation will remain an overarching concern for many this year. US leaving the minimum taxation global agreement could be controversial Kevin Hindley, Partner and Head of Corporate Tax at Andersen LLP On 20 January, President Trump issued a memorandum that effectively pulls the US out of the global agreement on minimum taxation as put forward by the OECD. The current proposal is to tax multinational companies that have subsidiaries with an effective rate of tax lower than 15% to bring in a minimum level of taxation – but more importantly from a US perspective, the proposal can lead to the income of US companies earned in the US being subject to tax in other countries. President Trump’s broadside puts in doubt the ability of other countries to implement such a plan and receive favourable treatment from the US. This will be highly interesting for the UK, where the legislation has been partly implemented already. The most controversial part of this, the Undertaxed Profits Rule, is also currently undergoing Parliamentary scrutiny as part of the current Finance Bill. We will see whether UK lawmakers blink first. Watch this space – Trump’s memorandum instructs the Treasury to provide recommendations regarding potential countermeasures within 60 days. Verdict: Trump’s decision to remove US from minimum taxation global agreement could be controversial.
Understanding and managing digital burnout Posted 01/29/2025 by AAT Comment & filed under Members, Mental health, Technology. “It’s harder now to manage than it was 15 years ago.” We’ve all been in front of our computer for hours, working, in the groove and getting things done. Gradually, we slow down and become more tired. Perhaps, anxious about our productivity, we work longer in an attempt to compensate. Eventually, if we’re not careful, we can become worn out and performance can suffer. Major signs of burnout include: Temperamental moodsTirednessForgetfulnessStruggling to maintain relationshipsLower productivity or underperformance App overload The proliferation of apps and software has been a boon for the accounting profession as a whole, but it has had some downsides. Stuart Hurst, director at Accounts & Legal, is one who harnesses the power of the top-of-the-range apps but occasionally finds himself missing simpler times. “I do wish integration would get better,” he says. “Sometimes you find a piece of software sitting outside the other integrations you have and you end up dual working or having to go into your practice management software or somewhere else to enter some information. In the world of open APIs, you do wish there could be one source of truth rather than seven different systems. “I love cloud accounting and what it brings, but it has fractured functionality quite a lot. For internally managing your accounting practice, it’s actually made it harder because you can have seven or eight best-of-breed apps and they don’t always speak to each other. That means it’s harder now to manage than it was 15 years ago.” Always on and often interrupted “Accountants are going to be spending a lot of their time on screens,” explains Stephanie Henson, managing director of TechTimeOut, which advocates for digital wellbeing. “Often, in order for teams to complete their work, they need to use technology. If people can work from anywhere, including from home, it can create this ‘always-on’ culture, so you can end up overworked, fatigued and not switching off properly.” According to TechTimeOut’s research, it takes around 23 minutes to refocus on a task once we are interrupted. Given the number of emails, instant messages and phone calls we field in a day, it is easy to see how burnout is a risk. “It means deep work is quite difficult to accomplish,” Henson adds. Shared experience Majors Accounts managing director Eriona Bajrakurtaj has experienced digital burnout and has found ways to manage its effects. She led the firm’s digital overhaul over a two-year period, but found herself blurring the lines between work and home. “With Covid came extra work and extra hours, working alone with a million different apps to get used to,” she says. “Not only that, but everything being on the phone or virtual, it became really tiring. It got lonely, and one thing I noticed was that I’d work much longer hours at home than if I was at the office. I think the commute served as a transition for me, but at home, if I was hungry, I’d get something from the kitchen, put it next to me on my desk and keep working.” It wasn’t just Bajrakurtaj who was feeling the effects of too much screen time at Majors. Many of her colleagues felt it too. “If I see someone working late online, I’ll ask them what they’re doing, because our job isn’t critical to someone’s life. I don’t want them working these extra hours, the whole point of the digital journey is to make things easier. We should be more flexible and work fewer hours.” Setting boundaries Key to preventing these issues is taking steps to set boundaries in order to manage screen time and its effect on mental health. “What people experience when they struggle with digital burnout is a lack of boundaries and a lack of clear prioritisation,” says Henson. “When people are starting to spot the signs of burnout, there are things they can change in their own behaviours that can help.” These include asking yourself how happy you are with your relationship with technology on a scale of 1 to 10, and if there are any realistic changes you are able to make, Henson says. “There might be some things to do with the way things are done in your organisation, but perhaps you will be able to influence that,” she adds. “It’s important to be very clear with boundaries and one of the things we often talk about is creating a non-negotiable time for the rest that you need. Then it’s important to have some set structure around recognising the way in which you’re using tech – is it positive or negative?” While staying flexible However, Henson is clear that flexibility is important, as being too strict can create further stress. “Some people try to have Zoom-free Fridays, for example, but that’s not realistic and can make Thursdays and Mondays really stressful,” she explains. “It’s about setting sensible rules and guidelines. Instead, say, ‘ideally we’ll have fewer meetings on a Friday; however, there has to be flexibility.'” “Set boundaries and clear expectations, and give yourself a little bit of space. Think about the impact you’re having on other people’s digital wellbeing too. Are you sending emails at 11pm, expecting a response by 8am the next morning? Because very little is that urgent. The answer has to start with the individual, then the workplace. You can only do so much as an individual, but you have to start there, with addressing people’s habits.”
Beneficial Ownership: 8 Red Flags to Detect Money Laundering Posted 01/28/2025 by SmartSearch & filed under Anti-money laundering, Members. This content is brought to you by SmartSearch Criminals do their best to hide their beneficial ownership to protect their illegal activities. Here are the signs to watch out for. In the world of anti-money laundering (AML) compliance, understanding who truly controls a company or financial entity – known as the beneficial owner – is crucial. Beneficial ownership refers to the individual or group that ultimately owns or controls an asset, even if it is registered under someone else’s name. Criminals often conceal beneficial ownership to mask illicit activities like money laundering, terrorist financing, or tax evasion. Identifying the true beneficial owner isn’t always straightforward, especially in today’s globalised economy where complex corporate structures and offshore entities are common. This is why FATF Recommendations, particularly Recommendation 24, emphasise the need for financial institutions and other regulated entities to identify and verify beneficial ownership. In this post, we’ll explore eight red flags that may indicate hidden or suspicious beneficial ownership. 1. Unclear or Complex Corporate Structures One of the most common methods for hiding beneficial ownership is through overly complex or opaque corporate structures. These can involve multiple layers of ownership, often spread across different countries with lax transparency requirements. While some complexity is legitimate, overly convoluted structures are a red flag. Red Flag Complex ownership chains make it difficult to determine who actually controls a company or asset. This complexity is often used to obscure illicit activities or evade tax laws. What to Do Enhanced due diligence (EDD) for entities with multiple ownership layers, especially if they cross jurisdictions with weak AML regulations. 2. Use of Nominees or Third-Party Agents Nominee shareholders or directors are often appointed to act as the legal owners of assets, but they do not have real control. This separation between legal and beneficial ownership can be used to shield the true owners from scrutiny. Red Flag When the entity’s shareholders or directors appear to have no legitimate connection to the business activities or lack expertise in the industry, it could be a sign that they are simply “fronts” for the actual owners. What to Do Scrutinise the relationship between the nominee and the entity. Conduct Know Your Customer (KYC) on both the nominee and any entities they represent. 3. Use of Offshore Accounts or Shell Companies Shell companies and offshore accounts located in jurisdictions with limited transparency requirements are common vehicles for hiding beneficial ownership. Criminals often use these entities to obscure the flow of funds, making it difficult to trace illicit activities. Red Flag If a company is based in or owns subsidiaries in offshore tax havens, particularly where the legal system does not require disclosure of beneficial owners, this should raise concerns. What to Do Verify the legitimacy of the offshore entity and the necessity of its involvement in the corporate structure. Use automated screening systems to monitor transactions linked to high-risk jurisdictions. 4. Frequent Changes in Ownership or Management Frequent or unexplained changes in the company’s ownership or management structure can indicate an attempt to disguise the true beneficial owner or avoid regulatory scrutiny. Red Flag If changes in shareholders, directors or other key management positions occur often and without a clear business rationale, it could be a sign that someone is trying to stay under the radar. What to Do Investigate the reasons behind these frequent changes. Conduct a thorough review of past and current owners to ensure that the company isn’t engaging in illicit activity or deliberately obscuring ownership. 5. Unexplained Source of Wealth or Funds Beneficial owners with large amounts of wealth but no clear explanation for its origin can signal potential money laundering. Financial institutions must be vigilant in verifying the source of funds and the source of wealth for high-risk customers. Red Flag When individuals or entities control significant assets without a documented, legitimate source of income, this could indicate that the assets were acquired through illegal means. What to Do Implement enhanced due diligence, requiring detailed documentation and proof of the source of funds, particularly for high-net-worth individuals and high-risk clients. 6. Unusual or Inconsistent Business Activity Companies whose business activities don’t align with their stated purpose or whose transactions are inconsistent with typical behaviour for their industry or size can signal suspicious beneficial ownership. For example, a small company engaging in multimillion-dollar international transactions raises red flags. Red Flag If the entity’s transactional patterns don’t make sense for its industry or if its activities are not consistent with normal business operations, this warrants further investigation. What to Do Implement robust transaction monitoring systems to detect unusual behaviour. Train staff to spot discrepancies in business activity. 7. Reluctance to Provide Beneficial Ownership Information When a customer or entity is reluctant to provide beneficial ownership information or delays the process without justification, this is a major red flag. Legitimate entities should have no problem disclosing this information. Red Flag If you encounter resistance or vague responses when requesting beneficial ownership information, it could indicate an attempt to conceal the true owner. What to Do Escalate the case to your compliance team and apply enhanced due diligence to verify the ownership information independently. If necessary, consider filing a Suspicious Transaction Report (STR). 8. Politically Exposed Persons (PEPs) Politically Exposed Persons (PEPs) pose higher risks due to their positions of influence, which could be exploited for money laundering or corruption. FATF’s Recommendation 12 emphasises the need for enhanced due diligence when dealing with PEPs or their associates. Red Flag If a PEP is found to be the beneficial owner of a company or asset, particularly in high-risk jurisdictions or industries, this should trigger enhanced due diligence and closer monitoring. What to Do Screen for PEPs and their close associates using automated screening tools and implement ongoing monitoring for any changes in PEP status. Conclusion Understanding beneficial ownership is a critical component of AML compliance. These red flags serve as important signals that further investigation may be required. By implementing robust due diligence processes, staying vigilant to signs of suspicious ownership, and complying with FATF Recommendations you can better protect your organisation from the risks of money laundering, corruption and other financial crimes. Ensure your AML program is equipped to handle complex ownership structures, offshore accounts and beneficial owners that may not be immediately apparent. With enhanced due diligence and a comprehensive compliance framework, your organisation will be better prepared to identify and mitigate the risks posed by hidden beneficial ownership. To discover how SmartSearch can future-proof your organisations AML and compliance process, speak to an AML expert today. This is a sponsored post from SmartSearch. We are pleased to bring these products to your attention, which we believe may assist with your AML compliance, but please note that this does not constitute a recommendation from AAT. Liability for AML compliance ultimately remains with you when it comes to your firm demonstrating that any customer due diligence conducted by a third party meets anti-money laundering legislation.
How one AAT apprentice is building a rewarding career Posted 01/28/2025 by Christian Doherty & filed under Apprentices, Community, Members. Celebrating Stephanie Goodsell’s outstanding progression, and the work that made it possible. Stephanie Goodsell’s career is off to a great start. She completed her AAT Level 3 as an Accounts apprentice, was nominated for the FAB awards Apprentice of the Year in 2024 and won AAT Apprentice of the Year 2024. Stephanie has maximised her development by leaving her comfort zone and embracing new opportunities. “When I joined my employer, I had limited understanding of what the journey was going to be,” she says. “The position I am in now with the range of responsibilities I have is more than what I envisaged, and the variety in accounts work that I see was not expected.” That breadth of work includes joining a second office alongside her initial one as an opportunity to adapt to new approaches and to gain more experience. Find the right apprenticeship for you We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers post listings for all sorts of qualifications and career goals. Search now Apprenticeship elements Stephanie says she initially found it hard to manage the two core apprenticeship elements: class and work. However, that changed within the first 8 weeks. “I began to look at schedules that build year-end accounts – I started to see the full picture on how the bookkeeping classes linked,” she explains. “I was pleased with how my first exposure to accounts work was quite soon.” Stephanie eventually found that blended learning suits her best. “I am gaining much more knowledge than if I was just classroom-based, and I am pleased I did not consider studying finance as a degree course. The experience from an apprenticeship is hugely beneficial as I also have quality, proven work experience.” Since finishing Level 3 and starting Level 4, she has been supporting the company’s new apprentices. Acting as a mentor, answering questions and delivering training has grown her confidence hugely. She’s gone from being very quiet to discussing, leading and directing where her mentees’ work needs to change. My communication with clients has surpassed what I imagined I was capable of. I am much more confident to deal with a client directly; I now know how to handle each client on an individual basis and will adapt my approach to each. Wider perspective Much of Stephanie’s work as a Level 3 apprentice involved dealing with a broad range of accounting tasks for clients. For instance, she mastered the art of producing VAT Returns for different currencies, including working with a large client who deals in USD, a process that required carefully handling invoices and payments. “I really like the variety of accounts. And while all jobs are different, it is the same process in a way, but each client has different needs and will need different reports that relate to industry-specific clients,” she says. Stephanie has good knowledge of accounting software. She’s helped one of the offices she works in move from a more paper-based approach to a more digital one, introducing software such as Xero, Hubdoc, Sage and Taxcalc to support clients. And it’s not just clients who have benefitted from Stephanie’s tech skills: her experience of software-based accounting procedures has led to her supporting many senior team members, even training some on these procedures. Taking opportunities In doing so, Stephanie has shown that get ahead in accountancy, it helps to build a strong network both within the business and beyond. “The chance to physically work across the two practices after the acquisition increased my knowledge significantly,” she says, reflecting on the challenge of adopting and addressing the different practices’ approach. “One was much more traditional, so I know the level of exposure I have been given is not very common and not a chance all apprentices get. I had to work hard to get used to two environments – one very manual, where the team helped me deal with the challenge of clients by showing me how I can work hard to get their trust.” That was especially important with longstanding clients, some of which had dealt with a single contact for over 10 years. Extra effort – and supportive management Stephanie deftly managed building new relationships, embracing different approaches and settling into new environments. She navigated these challenges in spite of her autism spectrum disorder (ASD), which makes handling changes to routine especially taxing. For instance, dealing with ad hoc tasks in the apprenticeship can disrupt the routines Stephanie is most comfortable with. Since beginning her apprenticeship, however, she has worked hard to set up a process of personal and professional development that accounts for possible disruptions. This helps her adjust without being overwhelmed. She also recognises the help her employer gave her when settling in. “I definitely feel the general support started on day one and continues – at the beginning I was very nervous and they recognised this, slowly drip-feeding me clients to work on,” she says. Personal recognition Sam, Stephanie’s manager, says “Steph has shown remarkable development, both professionally and personally. In her professional capacity, she has grown into her role with confidence and competence, consistently excelling in all areas. Her strong accounting knowledge is clearly reflected in the high standard of her work.” It’s not just Stephanie’s colleagues and clients who have been impressed with her impact. Claire Bennison, AAT Executive Director of Customer, Partnerships and Innovation, says Stephanie “is an exemplary role model and it’s amazing to see her commitment to supporting others by showcasing leadership in her workplace.” And while Stephanie remains modest about her achievements, she does allow herself a hint of pride. “It has been good to have external recognition – it shows what determination and a strong work ethic, commitment to the apprenticeship/studies can give anyone,” she says. She also points out the value of the recognition as someone that did not set out to work in finance. “I had a journey to get to my first role, and I had been advised by a recruiter to look at business admin apprenticeships.” Shared success Staff at Peak Accountancy Training, Stephanie’s Training Provider, work hard to meet student needs. Tutors there adapt their style of delivery to all students and individualise taught sessions, and Stephanie’s work-based advisor Suzanne Hardy quickly established a working relationship that suited Stephanie’s style. Suzanne says it feels “incredible” to see one of her students achieve so highly. “I believe in apprenticeships and the opportunities they provide – I am lucky to work with not just Steph, but an amazing bunch of young and mature learners. “Apprenticeships are not as valued as I think they should be. Personal development is important, and to see the journey Steph has been on has been incredible.” Finally, Stephanie credits the vital role of her support network: “That includes the family around me that have helped with studies and adapting to a full time role, my employer for giving me the opportunity to work on many varied projects, and giving me the time to develop my knowledge, and the tutor support team at Peak Training, who showed me what can be achieved, and how to get success.” Find the right apprenticeship for you We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers post listings for all sorts of qualifications and career goals. Search now
“My daughter would not be the confident business-owner she is today if she’d attended university” Posted 01/28/2025 by Christian Koch & filed under Apprenticeships, Members. Apprenticeships are a win-win for young people, providing a full-time job and degree-level education without the debt. So why do many parents worry about their value? Here, one mother and daughter tell AAT about their apprenticeship journey. “Mum, I’m going to apply for an accounting apprenticeship.” When Grace Hardy came downstairs one evening with this announcement, her mother, Caroline, was taken aback: she’d never heard her daughter talk about accountancy before. Parental concerns For other parents, such news might trigger feelings of confusion: why an apprenticeship over a degree? Although more school-leavers increasingly view apprenticeships as a viable career option – nearly half (46%) of GCSE students considered apprenticeships according to UCAS – the biggest barrier to young people starting an apprenticeship is their folks. One recent Talking Futures survey of 2,000 parents with children aged 11-18 found 17% believe apprenticeships were poorly paid, with 9% concerned they could limit future career flexibility. It follows previous government research which found more than 60% of parents with children aged 13-18 feared their child could be stuck “making the tea” if they opted for an apprenticeship. These worries don’t tally with the reality. Today’s degree apprenticeships (or graduate apprenticeships in Scotland) are the equivalent of a university degree, without the student debt. Apprenticeships have excellent job prospects too: 92% of apprentices stay in employment after completing their apprenticeship; only 61% of university graduates are in full-time work 15 months later. As for accounting apprenticeships, the average AAT apprentice will earn around 78% more than somebody on a minimum wage. Watching your child make decisions about their education and career that could impact the rest of their lives is never easy. But in Grace’s case, it turned out to be the right decision: two years after starting her AAT apprenticeship at top 10 accounting firm Mazars, she qualified as an accountant. In 2023, aged just 21, she started her own business Hardy Accounting. Here, mother and daughter explain how an apprenticeship was the key to helping Grace flourish. Weighing up apprenticeships vs. university Caroline: “I’d grown up with the idea apprenticeships were trades-focused, for electricians or plumbers. However, in my job as a nursing university lecturer, I started working with apprentices and immediately thought apprenticeships were a brilliant idea. Over the years, I’ve seen so many people who thought they’d never go to university do an apprenticeship then thrive as healthcare assistants.” Grace: “At school, the GCSEs/A-levels/university/job route was drilled into us. Yet, I was diagnosed with dyslexia at primary school and frequently felt stupid and dumb thanks to teachers and others putting limiting beliefs on me. Sometimes I’d be in tears thinking, ‘I can’t do this’. I still got good A-levels (ABB) and a place studying politics and social policy at the London School of Economics and Political Science (LSE). However, I declined the offer. I knew university wasn’t for me: it’d just be an extension of school. I told my mum, who suggested apprenticeships…” Caroline: “It’s a real challenge for any 18-year-old when deciding what they want to do. I’ve got two daughters and told them both, ‘I just need you to get a further education qualification – it doesn’t need to be a university degree.’ Grace: “I then visited the school careers adviser. I asked what apprenticeship level I should study and they said, ‘I didn’t even realise there were levels!’ At that point, I knew school wasn’t equipped to help me navigate this journey.” Caroline: “Grace and I attended an apprenticeship careers fair. She’d never talked about accountancy, so when she came downstairs one evening and talked about an accounting apprenticeship, it wasn’t on my radar at all. However, I knew some apprenticeship qualifications are equivalent to degrees. I also knew apprenticeships are hard work, so we talked about the challenges of working and studying at the same time. Grace seemed as keen as ever that this was what she wanted to do.” Confidence and communication skills Caroline: “Once Grace started her apprenticeship at Mazars, I was impressed how she hit the ground running. Within the first few months, she was out auditing other businesses and shadowing experienced employees.” Grace: “Apprentices are thrown in at the deep end. During my first fortnight, I had a one-to-one with a client. I had no idea what I was doing, but you eventually learn and adapt by asking questions and being an adult… One of the biggest myths about apprenticeships is people think they’re easier than university… Many of my friends at university only attend two days a week!” Caroline: “The confidence Grace picked up during the three years of her apprenticeship was fantastic. She’s 22 now and looking at the confidence she has with clients or networking… I don’t think she would be the same person had she gone to university.” Grace: “I picked up so many soft skills during my apprenticeship that I might not necessarily acquired at university. I can work to deadlines, communicate with clients, work under pressure and problem-solve – all have been instrumental in my business.” Money matters Caroline: “Grace also became more financially savvy during her apprenticeship. Earning her own money gave her a real boost and pushed her to work even harder. Although she initially lived at home with me (which was nice!) she moved into a flat with other apprentices. When looking for a place to rent, Grace knew exactly how much she could afford. I was impressed! Earning her own money gave Grace freedom – it wasn’t bad money either!” Grace: “I started on £20,000 as an 18-year-old. When I finished my apprenticeship, I was on £40,000. During this time, I bought a Mini Cooper, and have now got an Audi A1 – my dream car since I was 14. I’ve saved too and ploughed money into my business.” Caroline: “As a single mother, it was helpful [not supporting Grace at university]. Living with her friends also meant she didn’t miss out on the kind of social life that university students enjoy.” Grace: “All my friends went to university. Many of them have now left and can’t find grad jobs because the market is so oversaturated. Sometimes they say to me, ‘You’ve got three years’ work experience, an income and aren’t in debt, whereas I’ve just paid loads of money!’” Caroline: “When Grace came home one night and announced she wanted to start her own business, I thought it was a great idea. I said, ‘If it doesn’t work out, you’ve still got a formal qualification and you can come back and live at home’. I’m pleased to say she hasn’t.” Advice for parents Caroline: “Do your homework. Fortunately, there’s so much information available online about apprenticeships. Attend careers fairs too. When I attended with Grace, it was a great opportunity to ask questions – not just to employers, but existing apprentices too. Above all, I think it’s important to look at your kids as individuals and work out what would suit them. My other daughter took the university route, but apprenticeships couldn’t have been more perfect for Grace. Apprenticeships are one of the best ways to get a qualification, partly because they’re so difficult! I’m incredibly proud of Grace. And I couldn’t have a more positive view of apprenticeships.” Find the right apprenticeship for you We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers post listings for all sorts of qualifications and career goals. Search now
How to prevent legacy systems frustrating new ways of working – and employees Posted 01/27/2025 by AAT Comment & filed under Digitisation, Members, Mental health. With burnout a looming risk to business, technological issues should be high on employer agendas. In the finance industry, many issues stem not from the workload itself being too high but from technical issues with legacy software disrupting productivity. This is according to a report from business software and services provider Advanced. But almost a third of decision-makers in the industry aren’t making moves to adopt Cloud software. Burning up goodwill A survey of more than 5,000 senior businesspeople across the UK found that 85% are currently working more hours each week than they should be. Around 40% said that they couldn’t complete the amount of work they are given any other way. Barriers to working from home The report finds the boundaries between work and home life blurred by remote and hybrid working, which is not helping overtime. While workers typically say they’re more or equally effective when working at home compared to working in-office, responses from financiers buck that trend. In fact, 60% of finance workers say they have difficulties accessing their work software from home, and 77% say they get more done in an office environment as a result. Survey responses showed a sustained employee demand for flexible and remote working, despite frustrations around outdated software in some sectors. “Employees are crying out for flexibility, about how and where they work. They want choice. They want to be empowered to be productive and to work in a way that best suits their personal preferences – however, those preferences may change – whilst supporting the goals of the organisation”, says Victoria Robinson, Hybrid Workforce Strategy & Culture Leader at PwC UK. Technological glitches Inefficiencies caused by legacy technology are at the crux of the issue. Employers moving to hybrid and remote working during the pandemic have not always succeeded in ensuring that the systems and processes their teams are using are still fit for purpose now that the change has become permanent. Indeed, just 20% of businesses in the finance sector have adopted Cloud-based solutions to support their new ways of working. Worryingly, 29% of decision-makers in finance said that they are not planning or considering plans to adopt Cloud software. Alongside issues accessing systems, roughly one in five finance workers also said that their working days are disrupted by ‘small tasks that take a long time to complete’. A lack of real-time reporting and file-sharing is also cited as a recurring issue. A tech skills shortage is also to blame, with 41% of survey respondents across all industries saying that they currently have to outsource some or all of their IT requirements due to a lack of in-house expertise. Financial pressures Advanced’s annual business trends report highlights that business leaders are primarily concerned with profitability and cash flow in the year ahead. ‘Employees, managers, leaders and business owners are all feeling the pressure to make ends meet’, the report states. ‘Companies are doubling down on their key strategies to achieve growth and profit, and employees are at the heart of this.’ That probably explains why employers are reluctant to spend on Cloud computing software. But saving money on functional systems could be a false economy in the long-run. System support According to Robinson, “the winners in all of this will be those organisations able to take a human approach to understanding these challenges and opportunities. They can then apply the framework, technology and support needed for a more customised approach that works for different employees, while optimising their productivity and the productivity of their teams.” Advanced notes that technology can support increased productivity, enabling people to get more done in their contracted working day so they don’t feel the pressure to work extra hours and risk burnout. Their report says ‘businesses will need to invest in tools that support employees wherever they are based’.