How employers can use work experience to assess talent before recruiting

Posted by & filed under Employer Videos, Employers, Recruitment.

Watch a video from AAT’s Employer team to learn about the trends they’re noticing in the market.

Jordan Osborn is an Employer Account Manager for Accountancy Practices at AAT.

In this video, he discusses how firms are adapting their recruitment approach in order to attract the volume and quality of employees they need.

He discusses how practices are using work experience to create a talent pipeline, and how they’re using outreach to generate interest.

Find the right apprentice for you

We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers can connect with motivated career starters and changers.

Find out more

Quiz – Should you start an apprenticeship with AAT?

Posted by & filed under National Apprenticeship Week.

Have you thought about taking on an apprenticeship but are unsure if it’s the right choice for you? Take our short quiz and find out.

Did you know apprenticeships…

  • provide you with the opportunity to learn in a practical environment
  • allow you to earn as you learn
  • are for everyone – there is no age limit
  • can lead not only to a full-time job, but great long-term prospects 
  • are great for career changers.

Should you start an apprenticeship with AAT?

Take our short quiz to find out whether an apprenticeship is right for you.

Take the quiz

Further reading:

England rugby star’s trials encouraged me to speak about mental health

Posted by & filed under Mental health.

Thomas Bird, AAT Assessment Quality Manager (Products & Services), faced a crisis while he was studying. Here he shares his experiences and tips for wellbeing and resilience.

Why did you volunteer to be a wellbeing champion?

I think that it is really important to speak about our mental health and ensure that everyone knows where and how they can reach out. It is essential that we all realise that if we struggle with our mental health it doesn’t make us a failure or less of a person.

Men are less likely to talk about our mental health and a solution to this is for more people to talk about their struggles. I was inspired recently by Joe Marler, a professional rugby player for England and Harlequins, who spoke out about his struggles with ill mental health. I can certainly recommend his documentary Big Boys Don’t Cry https://youtu.be/R3F2hy93C0E

Have you been affected by ill mental health either yourself or by someone close to you?

When I was studying for my A-levels, I found it incredibly difficult. I felt trapped and didn’t want to let my teachers or my family down by admitting that I couldn’t cope and that I was struggling to keep up with what they were teaching. I seriously considered taking my own life to escape it all. In the end, I dropped the subject I was struggling with the most. When I finished my A-levels, I decided to go straight into work rather than going to university as I didn’t feel that I would be able to cope mentally. In hindsight I should have spoken up and asked for the extra support I needed. I am now a big advocate for getting people to ask questions if they don’t understand, as there is no point in suffering in silence, although I am still working on this myself!

How does work potentially affect your wellbeing?

While I have been quite disciplined in switching off the laptop when my working day ends. I find it a lot harder to switch off my mind, so I will often spend the evenings or the night thinking about work.

I also find that I will sit at my desk longer when working at home than I would in the office. To remedy this, I have a series of reminders around my monitor, to remind me to have a break, improve my posture and to go and have a drink of water.

How do you try to maintain your own good health during the working week?

At the beginning of lockdown, I was going out every morning for a walk or a run. But since lockdown finished and my wife stopped working from home, I have found that I don’t get out in the morning like I once did. However, during lockdown I stumbled down the rabbit hole of YouTube videos, and went from watching videos about Batman, to Batman training videos, to callisthenics and bodyweight exercises. So I am now trying to incorporate these into my work day. During lockdown my wife created a series of lollipop sticks with a range of exercises like push-ups and dragon kicks. My aim is to take a stick whenever I am waiting for the kettle to boil.

What do you like to do in your free time that helps support your overall wellbeing?

As mentioned above, I have gotten into callisthenics; my goal this year is to do a muscle up. This isn’t going as well as I had hoped, but there is still half a year left! I am enjoying the challenge and learning more about my body and its limits. I find swimming allows me to let go of whatever I am ruminating on. I also try and get out into nature, and practise shinrin-yoku (forest bathing), which involves being among trees and simply observing the nature around you.

If you could offer up one piece of advice, what would it be?

If you are struggling with ill mental health, talk to someone. Sometimes just verbalising a problem or feeling can make it feel much more manageable. I am still trying to get better at this, but looking back, my life would have been a lot easier, if I had spoken up earlier rather than trying to cope all by myself.

5 reasons to do an AAT apprenticeship

Posted by & filed under Apprenticeships.

It can be tough to find the money to fund your studies, especially in a recession. Choosing an apprenticeship where you work and earn money while you learn is one way to avoid getting into debt and make ends meet more easily during your studies.

But the ability to earn while you learn is not the only reason why becoming an apprentice could prove the best way to start – or develop – your career in accountancy.

Here, we highlight five of the main benefits of choosing an AAT apprenticeship.

1. You come out with a top-class qualification

AAT qualifications are internationally recognised accounting qualifications that are trusted by employers in the UK and beyond.

And by signing up to an AAT apprenticeship rather than a university degree course, you can reach a high level of competency more quickly – as well as with a lot less debt.

If you want to take your studies further, the AAT qualifications you gain during your apprenticeship can also help you to move up the ladder faster; completing the AAT Professional Diploma in Accounting gives you generous exemptions when it comes to becoming a chartered accountant, for example.

“Qualifications count for a lot,” says CIMA-qualified management accountant and former AAT apprentice Wendy Haigh. “And doing an AAT apprenticeship is a good way of getting qualified without having to borrow money to do so.”

2. You get on-the-job experience

Lack of work experience is one of the main problems students complain about when trying to find their first jobs. By doing an apprenticeship, you gain real-world workplace experience at the same time as you study, which can help you find a more interesting – and potentially better-paid – job when it’s time to move on.

Having this hands-on approach can also make it easier to understand the topics you’re studying in the classroom.

“I started in an accounts assistant role, and I remember seeing links between what I was studying and what I was being asked to do at work, especially as I moved up the AAT levels,” says Haigh, who lives in Preston, Lancashire. If you’re lucky, you could also meet influential mentors who will help to shape your future career.

3. You are probably eligible to do an AAT apprenticeship

The eligibility criteria to do an apprenticeship alongside an AAT qualification is deliberately relaxed to enable as many people as possible to access an opportunity of this kind.

There’s no upper age limit. The only rules are that you must:

  • Be over 16
  • Not be in full-time education
  • Have lived in the UK or European Economic Area (EEA) for at least the last three years

What’s more, the good news for anyone keen to start an AAT apprenticeship at the moment is that many employers are looking to apprentices as a way to bridge skills gaps at their organisations, so there are plenty of opportunities available.

4. You don’t have to pay any tuition fees

Apprenticeships are funded from contributions made by the government and your employer, so you don’t have to take out any student loans or fork out for tuition fees.

“My employer covered the cost of my course and also allowed me a half day off every week to go to the local college, where I had classes from 1pm to 9pm,” Haigh adds. “In that situation, I can’t see any reason why you wouldn’t take the opportunity to do it.”

If you’re between the ages of 16 and 24 and are leaving care, you may also be given a £1,000 bursary payment to support you in the first year of your apprenticeship. You will, however, need to cover day-to-day expenses such as your lunch and the cost of travelling to and from your place of work.

5. You earn money from day one

Last but certainly not least in this list – especially given the current economic backdrop – is the fact that you can start earning money as soon as you start work as an AAT apprentice. How much you earn will depend on your employer but is also likely to be influenced by factors such as your age and level of experience.

According to current government guidelines, companies must pay apprentices at least £4.81 if they are aged under 19 or are in the first year of the apprenticeship. After that, the minimum rate of pay increases. So, a 23-year-old apprentice with at least one year under his or her belt should be on an hourly rate of £9.50 or more.

You should also qualify for benefits such as holiday leave and sick pay – as well as time off to complete your studies.

In summary

Completing an AAT apprenticeship will furnish you with the qualifications, skills, and experience you need to build a successful career as a finance professional.

If you want to continue your career in accounting, for example, our 2021 salary survey suggests you could expect to earn around £24,500 once you have your AAT Professional Diploma in Accounting qualification, and £52,000 by becoming a self-employed AAT Licensed Accountant.

And overall, government figures indicate that people who complete an apprenticeship at Level 4 or above could expect to boost their lifetime earning power by around £150,000 on average.

So why not find out more about how to apply for an AAT apprenticeship today?

Further reading

AML update: Updated list of high-risk third countries

Posted by & filed under Anti-money laundering, Members.

The latest Financial Action Task Force (FATF) Plenary concluded on 25 October 2024 with the following revisions being made to the list of high-risk third countries (HRTC).

Added to the list of Jurisdictions under Increased Monitoring

Algeria

Angola

Côte d’Ivoire

Lebanon

Removed from the list of Jurisdictions under Increased Monitoring

Senegal

What does this mean for my firm?

Firms (including sole practitioners) must review their existing client list to identify whether any of their clients are now considered to be established in a HRTC and undertake appropriate enhanced customer due diligence (EDD) measures. Firms must also consider whether the changes mean their clients are no longer connected to a HRTC and consider the level of customer due diligence required using a risk-based approach.

Guidance around EDD measures can be found in Section 5 of the AML Guidance for the Accountancy Sector (PDF).

Firms must also ensure their client onboarding procedures refer to the updated HRTC lists. These lists are updated three times a year, on the final day of each FATF Plenary meeting, held every February, June and October. The dates of these meetings are published several months in advance, in the events calendar on the FATF website.

AAT’s AML helpline

AAT’s AML helpline offers advice for AAT supervised firms on all aspects of complying with the Money Laundering Regulations, such as advice on how to report suspected illegal activity. To discuss any questions you might have, call us on +44 (0)20 7367 1347 or email [email protected].

UKFIU’s SARs Reporter Booklet November 2024

Posted by & filed under Anti-money laundering, Ethics, Members.

Your regular CDD, risk assessments and SARs are helping detect suspicious activity as early as possible, and preventing crime.

SARs are a critical intelligence resource for law enforcement – they provide information like phone numbers, addresses, company details, investment activity, bank accounts and details of other assets. They have been instrumental in identifying sex offenders, fraud victims, murder suspects, missing persons, people traffickers, fugitives and terrorist financing.

Accountancy and bookkeeping firms (including sole practitioners) play a critical role in alerting law enforcement to potential instances of money laundering and terrorist financing. Undertaking regular Customer Due Diligence (CDD) and risk assessments can help firms detect instances of suspicious activity as early as possible and the submission of SARs can help reduce and prevent financial crime.

SARs case studies

The latest SARs Reporter Booklet published by the UK Financial Intelligence Unit (UKFIU) uses case studies to provide a snapshot of how SARs intel initiates and supports law enforcement investigations.

Risk indicators and the Accountancy AML Supervisors Group Risk Outlook

Some of the key risk indicators leading to the submission of the SARs in the case studies used include:

  • a number of linked accounts with higher-than-expected turnover and multiple high-value transfers
  • doubt during verification checks over the true identity of a customer, triggering an investigation into the customer’s financial activity
  • activity inconsistent with the suspect’s profile, including spending on high-value assets
  • multiple red flag indicators of underground banking on a customer’s account, including the customer being an international student with a short association with the reporter, financial activity and cash deposits of high value not reflective of a student, and origins of cash credits being unknown
  • Open-source media reports relating to the customer’s history of illicit activity and the identity of several payments to retailers linked to equipment that could be used in the production of drugs.

Firms are reminded that the risk of money laundering and terrorist financing is constantly evolving. Firms should regularly review the Accountancy AML Supervisors Group Risk Outlook (PDF), and any other risks published by their supervisory authority (such as the AML Alerts that AAT publishes in Knowledge Hub) to make sure they have identified all the areas relevant to their own business. Risks may evolve because of changes to the firm’s client base, geography and services provided.

Guidance on making an SAR

Chapter 6 of the CCAB’s Anti-Money Laundering, Counter-Terrorist and Counter-Proliferation Financing Guidance for the Accountancy Sector provides guidance on what suspicious activity must be reported, when and how a report should be made to the National Crime Agency, and matters which may require a Defence Against Money Laundering (DAML).

The quality of an SAR can affect the UKFIU’s ability to prioritise and process the report. It can also affect the relevant agency’s decision or ability to investigate. Before making an SAR, firms should familiarise themselves with the UKFIU’s Guidance on Submitting Better Quality SARs.

AAT’s AML helpline

AAT’s AML helpline offers advice for AAT-supervised firms on all aspects of complying with the Money Laundering Regulations, such as advice on how to report suspected illegal activity. To discuss any questions you might have, call us on +44 (0)20 7367 1347 or email [email protected].

How employers can meet their financial training needs

Posted by & filed under Employer Videos, Employers, Members.

The second in a series of videos from AAT’s Employer team on the trends they’re seeing in the market.

Enrique Medina, Employer Development Executive at AAT, is a member of our Employer Team who assists small- and medium-size businesses with their financial training needs.

In this video, he looks at how SMEs can use our CPD and apprenticeship pathways to upskill and retain staff.

Find the right apprentice for you

We’ve launched the UK’s only dedicated accounting apprenticeship job board, where employers can connect with motivated career starters and changers.

Find out more

How to take ownership of your career

Posted by & filed under Career, Events, Members.

In an AAT Connect panel hosted by Becky Glover, AAT members discussed how they created the careers they wanted.

A session at the recent AAT Connect event in London highlighted the changing ways that accountants are managing their career progression. Three panellists joined chairperson Becky Glover to discuss the different journeys they have been on as they grow and develop.

Owning your career and your practice

For Jess Brindle FMAAT, a former AAT apprentice whose career has taken her from a start-up to her own practice via the venture capital world, the focus has changed over the years: “My career goals and my aspirations are changing all the time,” she told delegates.

“My life has changed quite drastically over the last five years, but what keeps me going is wanting to be better, wanting to do more, earn more money and have more flexibility.”

As a new business owner, she was blunt about the demands of starting a practice while still working full time: “That was hard work, working weekends to start the business” she said.

“But now I’ve got the flexibility of working when I want, for who I want. I don’t work with people I don’t want to work with. So that keeps the drive going. It means that when I am working long hours, I’m doing something that I’m passionate about, helping people that I’m passionate about, and making friends along the way and getting something really rewarding from helping business owners.”

Breaking bad habits

In the early years of starting his business, Ellis Harris-Boulter MAAT shared Jess’s sense of being trapped in a long-hours culture. Although running his own practice had long been his dream, Ellis admitted the reality of sprawling workloads and unhealthy habits was taking its toll on his health – both mental and physical. “I would fall asleep on my desk chair at 3am for the first couple of years of practice,” he told delegates.

“And after a few years of that, I thought, I can’t keep going like this. So I realised the reward I was aiming for just wasn’t worth what I was sacrificing to do it. And so while I wanted to do well, equally I found that actually I needed to calm it down a little bit.”

Breaking his unhealthy patterns wasn’t easy, and required Ellis to do some soul searching: “I looked at myself and thought, ‘Am I actually happy with what I’m trying to do here?’ And I found the answer was no.

The first step was to actually recognize where his weaknesses lay.

“So for example, I used to sleep like a teenager. And I thought, well, actually, I need to change that. So I found, weirdly, an alarm clock with a QR code to switch it off. And I have to get out of bed and go to the kitchen to switch it off.

“And similarly, I was terrible for scrolling social media, so I’ve got an app now that makes you pay £5 if you want to scroll social media during the week and it’s not a weekend. And again, that stops me pretty fast.”

Having adjusted, Ellis is closer to achieving a healthier work-life balance. “I strive for that 9 to 5, and actually find things outside of work as well to have that balance, which is sometimes difficult to achieve.”

Making your style work for you

A common theme running through the session was the need to carve out a path that suits your unique needs and strengths. For Narpreet Bhamra MAAT, that meant finding a role that allowed her to bring an intensity of focus to work, but also switch off outside working hours.

“I’m completely different end of the spectrum, in that I enjoy the 9-5,” she said. “I like having that structure in my life: I am one of those people I do like going into the office rather than working from home. As soon as I shut my laptop down, that’s it – I go home and that’s my ‘me’ time.

“I feel like if I wanted to work for myself, I’d be working all day and all night. So for me, having that 9-5, having a routine in place is what makes me enjoy my role, makes me want to progress further.”

For adopting a more ‘traditional’ approach, Narpreet has found that having that structure and routine in place is probably what’s more important and valuable. Her journey to finance business partner at Google has seen her focus more on building networks within the workplace.

“Working for large corporations, the opportunities are endless. You can get involved in different areas, non-finance-based areas, and it’s just a great experience, networking with multiple people, and just really building your personal image and personal values as well along the way.”

Networking for rewards

But – critically – she stressed the need for accountants to leave their comfort zone and build a strong network across the profession. “I feel like networking has probably made my career what it is today. In fact I’m sitting here on stage because I spoke to somebody at an AAT event many, many years ago, who I then kept in touch with, who then made an AT video about me, who then got me involved in more content and then asked me to present it.

“So from that one person, I’m now here.”

Jess agreed: “AAT has given me so many opportunities to build and grow a network. Things like this event, I’ve been in all the videos and done all the fun social stuff. Again, it gives you more skills, more understanding, rather than just looking at spreadsheet all the time.

“So I think the community that AAT especially builds – the branch network and things like that – is everything; just having conversations with people is building relationships. That’s what makes business interesting.”

2024: A year in review for members

Posted by & filed under Community, Members.

It was a year of two halves. So how did accountants and bookkeepers cope with the political whiplash?

In many ways, it’s been a year of two halves. The Sunak government’s Spring Budget in March promised to lower taxes by cutting NI insurance from 10% to 8% and NICs for the self-employed from 8% to 6%.

Fuel duty was frozen along with alcohol duty, while the VAT registration threshold increased to £90,000 from April 2024, meaning that 28,000 SMES would no longer need to pay VAT.

The Autumn Budget delivered by the new Labour government could not have been more different. Instead of tax cuts, there were tax rises, intended to fill the significant £22bn black hole in public finances that had first been uncovered in July.

Increases abounded. The National Living Wage (NLW) rose to £12.21 from £11.44 for those aged 21 and over, while Employer’s NICs, CGT, Stamp Duty Land Tax also increased. Plus, Inheritance Tax rules changed.

There were also many elections across the globe, the results of which are likely to impact British businesses indirectly.

So what has 2024 been like for accountants and bookkeepers? And how did plans change for the AAT members we spoke to at the start of the year?

I implemented my plans as intended, and started a new role elsewhere

Andy Murray MAAT AATQB Management Accountant, working for Livestock Information Ltd, Defra-owned company

The year has flown by. There have been many internal changes around the corporate reporting structure and the structure of costs. 

Whilst our integration plans were full steam ahead, more time was needed to implement the above changes ahead of the next quarterly management accounts. This created an additional burden in an already hectic period, but we managed to get it across the line. 

We had an internal audit which went really well, but it was intense and resource-heavy so it knocked our financial transformation roadmap plans slightly. We were looking at implementing shared service tools to hand over Accounts Payable & Expenses to a central team but it has been postponed.

We also had great success in implementing a finance business partnering model (already implemented at group level and across other group entities) which allowed me to get closer to the project finances and enabled me to hold project reviews with project managers ahead of the quarter end.

Regarding changes following the latest budget, we were aware of the increase in Corporation Tax and this was already considered in our annual budget.  But the change in Employers NI was an additional factor we needed to account for. 

Following the change in the government, we reviewed the revenue side of things. We operate with various government departments and we knew that this would have an impact on their budgets. Therefore, we carried out a reforecasting exercise with our top 10 clients to ensure we captured any particular changes.

I’ve now started a new exciting role. There were lots of changes internally in my previous role, but that’s fairly common when working in a large international corporation. Therefore it was time to find a new rewarding challenge elsewhere.

Verdict: I implemented the plans I intended to, and have since started an exciting new role elsewhere.

I stayed true to my goals and became a limited company in April

Sallyanne Sheppard MAAT, Director, Sunshine Accounts Ltd

I officially became a limited company in April 2024 and the transition has been incredible. Implementing my new pricing matrix has been a game-changer. My existing clients were so supportive, happily embracing the higher rates as they truly see the value I bring to their businesses.

I’ve significantly increased my social media presence on LinkedIn and Facebook through regular, intentional posting. I was featured in a local newspaper about my move to a limited company and I became a sponsor for a Salisbury Rugby XV team player, which gave me visibility through match-day program ads and boosted my social media exposure.

I’ve gained six new clients: one through Facebook, two from the local newspaper article, and three through referrals.

Staying true to my goals, I’ve carefully targeted the right clients, even having the courage to turn away leads and disengage one client where the relationship wasn’t a good fit. It’s been empowering to only work with clients who align with my business values and goals.

I absolute love running my business and the strategic CEO mindset it demands, it’s so different from being a sole trader. I’ve also completed the fantastic bookkeeping coaching program I mentioned back in January 2024 and am now an active member of this inspiring community.

I also attended the AAT Connect event. It was an amazing experience.

Verdict: I stayed focused and true to my goals and became a limited company in April 2024.

I’m building a lifestyle accountancy business that lets me spend time with my family

Tom Smith, MAAT, Director, Every Cloud Accounting

2024 has been quite the journey. Our first child was born in March, two weeks early – that wasn’t in last year’s plan!

The business needed to be sustainable and flexible, and it has been both of those things. I’ve been able to take Fridays off and support us with maternity pay shortfalls.

Working on online marketing to grow the business has worked well, producing regular content, including sharing Every Clouds monthly income. But there have been periods where it’s taken a backseat, and the priority has been to carry out client work.

Focusing on local SEO has been slow and steady but has started producing a good, consistent stream of enquiries. I spent a lot of time and effort working on LinkedIn, but that didn’t produce the same results, so I paused the efforts to take stock.

Ultimately in a one-person accountancy business, you only have a certain amount of energy and time, so SEO has been the strategy I come back to and try and double down on.

The two government budgets this year will have a small effect on Every Cloud, but they don’t change my thinking. I am clear on what I need to do: provide a great service to build a lifestyle accountancy business, which gives me the income and flexibility to spend time with my son.

Verdict: I’m continuing to focus on creating a lifestyle accountancy business that’s flexible and financially sustainable enough for me to spend time with my family.