Better tools for a better student experience – Practice tests and guided learning Posted 03/20/2024 by Eintech & filed under Members. This content is brought to you by Eintech. It was fantastic to say hello to some of you on the recent webinar we streamed with AAT, and we look forward to seeing you again soon as part of the AAT conference in March (depending when you read this of course). What many people don’t know, is that Rogo started life with accountancy and finance at its core, and through working with training providers and awarding bodies over the past decade, the platform has grown to incorporate a huge range of features, but never at the expense of a good user experience. Most recently, while discussing the capabilities of Rogo’s test emulation and guided learning functionality, we heard how a major pain point for training providers is the desire for more candidate focused materials at higher levels – for example practice exams. However it’s not just the availability of these materials, but so having the resource to use them while assisting their students in reaching their full potential. We get it. Juggling multiple curriculum and managing how students access the right materials is not easy. The last thing your team needs is another new piece of software added to their stack. This is where Rogo can help. By using familiar user elements and layouts, both your students and staff can be up and running in no time. Also, because Rogo is used to deliver millions of exams by awarding bodies, we’re confident you’ll find more to love the more you dive into the platform. Our friendly customer success team are here to assist with the setup and implementation, and we’re implementing a raft of new ideas to help users of the platform meet and share their ideas, as well as producing webinars and other communications to help you stay on top of new helpful developments. So how is Rogo better for your students? A built in booking system means they can set their own practice exam schedule. Full control over feedback let’s them see where they’re doing well, and where they can improve. Use your own branding to instil confidence they’re receiving the same quality training as they do face-to-face. Simulation question types allows you to create practice materials as close as possible to the real exam. …and how is it better for your training team? A user interface that makes creating your own practice materials as easy as typing an email Ready-to-Go integration with a number of popular student administration systems and Learning Management Systems (and the right tools to set up new integrations if you need them). Cohort tracking and student statistics for those all important face to face feedback sessions. Options for automated computer marking or human marked questions mean less time analysing, more time training! Eintech don’t just offer you a dedicated Customer Success team – we’re dedicated to enhancing the testing experience for everyone with a product and marketing team that produce new materials, whether that’s updates to the platform, or sharing the latest developments in important topics like accessibility and DEI. We can’t wait to meet more of you in the future, and introduce you to other training providers that are already seeing the benefit of Rogo – all you need to do is sign up to our mailing list and we’ll let you know about all the great events, webinars and more as they’re announced through the year. This content is brought to you by Eintech.
Why apprenticeships are becoming the solution of choice for employers Posted 03/18/2024 by Christian Koch & filed under Apprenticeships, Employer newsletter, Employers. Business bosses from around the UK explain how apprenticeships are helping their companies thrive. Hiring an apprentice is one of the most cost-effective ways to grow your business and address the skills gap. With apprentices learning the precise skills your business needs, you can be sure you’ll benefit from tailor-made trainees. In this article, bosses explain how apprenticeships are helping boost business at their accountancy practices, as well as how to make apprenticeships work. Why apprenticeships work well It’s difficult to fill vacancies in accountancy right now: apprentices can help with that Gail Rajjayabun, Head of People Development, David Allen, a Cumbria-based practice with 12 AAT apprentices: “It’s very difficult to recruit qualified accountants right now or convince them to move, possibly because they’ve reached a certain level. For us, apprenticeships are a great way of growing our talent and help with succession planning. We hope they’ll become our partners, managers and directors in the future. Because they’ll have grown up with David Allen, they’ll be familiar with our culture and processes.” Our apprentices are building a pipeline of future leaders Clare Elsby, head of people and culture, Elsby & Co, a Northamptonshire-based chartered accounting firm with two AAT apprentices: “Apprentices are good for us because we get to train them right from scratch; there’s no reason our current apprentices can’t become partners in 10 years’ time.” Zoe Waring, Head of People, Fortus, nationwide business advisory/accounting firm with 16 AAT apprentices: “We’re increasing the number of trainees at Fortus, partly because having junior staff who can later become senior managers helps build our future management pipeline.” Apprentices progress faster than many people think Sean Thorogood FMAAT, Director, ST Accountancy, an Ipswich-based practice with one AAT apprentice: “I’ve seen apprentices start with us who are nervous around communicating; within six months they’re speaking confidently with clients and giving valuable advice… As for me, I started as an AAT apprentice myself around 12 years ago and have run my own business since 2019…” Waring, Fortus: “The first six months are the heaviest in terms of your investment, but after that, apprentices tend to be left to their own devices.” We’re saving business costs Thorogood, ST Accountancy: “As a small business, we don’t pay into the apprenticeship levy. This means we only pay 5% of the overall training package, which works at £300-400 for the AAT course. The government covers the rest.” Tech-savvy apprentices are making us more efficient Elsby, Elsby & Co: “Last Monday, an AAT Level 3 apprentice started work in our bookkeeping department. He was given a job migrating client information across spreadsheets; something he did it in just 10 minutes. Everyone was stunned. The whole department has since learned from him!” Thorogood, ST Accountancy: “If we’re implementing new tech, our apprentices will pick it up straight away, but also suggest ways to run it more efficiently.” The 20% off-the-job training teaches apprentices indispensable skills Rajjayabun, David Allen: “Apprentices typically spend one day a week in off-the-job training either at college or with a training provider. Some bosses may argue 20% off-the-job training represents a day away from the office when they could be working, but employers should see this as an investment: the things they learn about will benefit the firm in the long-term.” There’s a relative lack of paperwork thanks to the training provider Elsby, Elsby & Co: “The admin isn’t onerous at all; it’s a matter of simply setting up an HMRC portal and filling out a few forms. It takes 30-minutes, max. As for the rest of the admin, the training provider usually handles that.” How to make apprenticeships work Look out for these traits when recruiting Thorogood, ST Accountancy: “We don’t really look for skills and experience in new candidates, because they’re unlikely to have any. Instead, we look for work ethic and drive. If candidates are asking lots of questions, it’s a good sign: it shows their curiosity and willingness to learn.” Elsby, Elsby & Co: “If somebody has already signed up to study AAT at college, it’s a pretty good indication of their commitment.” Nobody wants apprentices sitting around making tea: plan what they need to do Waring, Fortus: “One of the biggest myths around apprenticeships is they’ll be spending their time scanning and making tea. That’s absolutely what it shouldn’t be. As an employer, you need to put the work in. Be strategic in terms of training, devote your time to them and keep them motivated. No apprentice should just sit around, not knowing what to expect.” Thorogood, ST Accountancy: “Many people assume an apprentice’s role largely involves shredding paper or making tea: that’s as far from the truth as can be. At ST Accountancy, our apprentices don’t get time to do menial tasks because they’re so overloaded with work.” Set up a buddy system using existing/previous apprentices Rajjayabun, David Allen: “Having a ‘buddy system’ [whereby an existing/previous apprentice helps new trainees settle into the role] is a great way for older apprentices to learn mentoring, coaching and communication skills, plus how to give feedback. For new apprentices, they can grasp how accounting works from somebody who’s a similar age and isn’t their boss.” Ensure your apprentice gets to sample all parts of the business Thorogood, ST Accountancy: “Rather than letting apprentices sit with bread-and-butter bookkeeping or only letting them do VAT returns, we give our apprentices a feel for everything accountancy can offer, such as working with the financial accountant for six months. Giving apprentices a diverse workload allows them to see the bigger picture.” Paying your apprentices a decent salary will incentivise them Waring, Fortus: “There is a minimum wage for apprentices [currently £5.28 per hour] but this salary is unlikely to motivate average 18-19-year-olds in their first jobs. At Fortus, we pay above the minimum wage because we want our apprentices to be valued.” Allow apprentices the freedom to make mistakes Rajjayabun, David Allen: “Apprentices are going to make mistakes. As employers, we need to let them know this is where true learning happens. Also encourage apprentices to reflect on what they could have done differently. If they’re not making mistakes, something’s not right.” Apprentices may need some training in legacy tech Rajjayabun, David Allen: “Gen Z apprentices are proficient with apps and social media such as Snapchat and Instagram, but with work-tech such as Excel, Word, PowerPoint and some accounting software, there’s still some learning to be done.” Show apprentices what they could achieve in their careers Thorogood, ST Accountancy: “Apprentices will be loyal but only if you show them potential for career development. Don’t keep apprentices on a low wage or give them menial tasks; put them on a long-term career development plan instead.” Remember: apprenticeships are a long-term investment Thorogood, ST Accountancy: “Try applying a cost-benefit analysis to apprenticeships. During the first three months, they’ll need time management and probably cost more than they save you. But over the next nine months, you’ll see benefits. Then, once you take on your second apprentice and get him/her to mentor new apprentices, you’ll really start seeing the rewards.”
Winning the hiring game: how employers are changing up recruitment Posted 03/15/2024 by David Nunn & filed under Employer newsletter, Employer Videos. AAT Account Manager Jordan Osborn shares how top employers are changing their approach to get the best people.
How to thrive as an accountant or bookkeeper in the new tax year Posted 03/13/2024 by Hannah Dolan & filed under Members. This content is brought to you by Xero. While it may only be a short period, a busy tax season can affect practices long after submitting the final return. Research from the Chartered Accountants Benevolent Association (CABA) shows that 55% of accountants admit to suffering from stress and burnout. They cite heavy workloads, long hours, and complex work with no room for errors. There’s no quick fix for mental health. But small daily practices can help you manage stress and protect your wellbeing. Let’s explore some of these strategies so you can take the new tax year in your stride. Nurture your network Don’t underestimate the importance of a healthy network. Our communities support us when things don’t go to plan, and celebrate with us when the wins roll in. So where can you find fellow accounting professionals? You could try: in-person and virtual networking events industry conferences social media groups coworking spaces Beyond providing support, your network can help you achieve your work goals. If you’re snowed under, having a few trusted accountants and bookkeepers whom you can pass work onto helps with balancing client obligations and takes the pressure off you. Now remote work is mainstream, you might feel like your connections aren’t as strong. With fewer opportunities for casual conversations, we need to be intentional about spending time together. Set aside time for socialising inside and outside of your practice. Think: away days, retreats, and conferences. These aren’t just good for team building; these events can help you check in with each other about mental health and wellbeing. Especially since it’s not always clear if someone is struggling when viewed from behind a screen. Embrace flexibility Flexible working can help you manage your life and work more harmoniously. Just saving on commuting time can give you hours back every week. Another benefit of flexible working is that you don’t have to pick between practice and personal life. If you’re supporting a loved one or recovering from a restless night, you can adjust your hours to match your energy levels. Despite being the norm, traditional office hours don’t work for everyone. Some people find their productivity spikes in the evening, while others like to get things done before noon. Instead of battling the 3pm slump, try working with your natural rhythms. You could experiment with different hours – maybe a later start in the winter (so that you don’t have to get up in the dark), or an earlier finish in the summer (so you can enjoy the sun). A change in environment can give us a fresh perspective. If you’re feeling adventurous, you might want to explore digital nomadism – where you take your laptop on your travels and work from new destinations. However you embrace flexible working, make sure you give it structure. Clear boundaries help you disconnect from work and manage expectations. Be open with clients and colleagues about your working hours, so they know when they can reach you. Grow your skills and confidence Learning new skills can give you a welcome confidence boost. And when things get tough – as the next busy season comes around – learning new skills can make you better equipped to find solutions. Learning is also important for a practice’s resilience. The accounting industry is changing fast, and new skills and services are rising in demand. If you’re able to provide new services based on your learnings, you have more ways to earn a living. There’s no single way to learn, and you’ll probably find a combination of formats helps you build skills best. A first step in your practice could be skills sharing. Perhaps you could invite colleagues with specialised skills to give a short presentation or workshop. Another way to approach skills sharing is through internal coaching programmes. It’s beneficial for junior and experienced staff alike: junior staff can learn specialised skills and teams can build personal connections. What’s more, learning doesn’t have to focus on technical skills. You could instead explore mental health and wellbeing. Training to become a mental health first aider, or scheduling a visit from a professional wellbeing expert could be just as valuable to your practice. Choose tools that save you time The new tax year is a great time to explore automation, and how it can simplify your to-do list. Automations work by using programmable technology to perform tasks typically completed by humans. They’re like a virtual colleague, who can take care of the more tedious admin for you. An example of automation is Xero’s bank reconciliation predictions, which automatically match transactions with the right contacts and account codes. You can save lots of time using this feature because you don’t need to hunt down the matches for every individual transaction yourself. Before committing to new tools, look for hidden functionality in your existing software. Perhaps you already have access to time-saving features. To assess what you could automate, work out where you spend the most time: If keeping track of billable time is laborious, look for connected time-tracking and invoicing software that shows you exactly what you can bill for. If copying figures from clients’ ledgers to your tax preparation software takes time, focus on integrated bookkeeping and tax tools that automatically copy records from one system to another. If you’re tired of facing a shoebox of receipts, look for expense management tools that turn tracking expenditures into a much easier task. Clients can simply snap a photo of their receipt and send it to their accounting software. By addressing mental health and wellbeing from multiple angles, you can build a healthier mind and practice. Take a look at our Brains Behind The Business Hub, which can help provide both you and your clients with the wellbeing support you need to thrive in the new financial year. This content is brought to you by Xero.
Sending help to sub-postmasters Posted 03/13/2024 by Christian Doherty & filed under Community, Members. When one concerned accountant issued a call for fellow professionals to come to the aid of sub-postmasters, the response was overwhelming. Accountants are quietly stepping up to help the victims of what many now view as the biggest miscarriage of justice in UK legal history. Rebecca Benneyworth, Chartered Accountant, set up a website where accountants could volunteer their services to victims of the Post Office/Horizon scandal dealing with lump sums of compensation liable for taxation. As the daughter of a sub-postmistress in rural Gloucestershire who learned balancing the books by working at her mum’s side in the post office, it’s not surprising that Benneyworth followed the Post Office IT scandal as it surfaced in the news over the course of a decade. But when the ITV drama Mr Bates vs the Post Office blew the lid off the scandal in the New Year, the wider UK public began to understand its scale. “People have said, ‘why hasn’t it been in the press?’ It actually has been in the press, but it just hasn’t had the traction. This brilliant drama means suddenly everybody knows about it, and they are absolutely fuming.” But although she had a passing knowledge of the scandal of subpostmasters being falsely accused of fraud and theft due to a massive IT failing in Post Office systems, Benneyworth, who now owns and runs her own tax practice, was unaware of what she calls ‘the scandal within a scandal’. Taxing times for payout recipients Alerted by a blog post from former tax lawyer and now tax reform advocate Dan Neidle in December, Benneyworth discovered the mess that those running the original compensation scheme had made around the taxation of the payouts. Responding to the publicity around the case in early 2023, the Post Office admitted that they had erroneously handled the taxation of payouts, and they would start making additional payments to postmasters of purely a tax-free amount to cover the anticipated tax liabilities. “As an accountant dealing with tax returns, I was horrified because these poor people were facing having to do tax returns and pay their tax without the money,” Benneyworth says. “So that’s when I set up the website thinking what we can do is at least help them complete their tax returns. I was absolutely deluged with accountants volunteering to help.” Since the turn of the year Benneyworth has worked to connect those in need of help with suitably qualified accountants, all of whom are offering their services gratis. She’s also produced a fact sheet for volunteers explaining the intricacies of the payment, how the tax works on it and how to make the tax return. In response, HMRC has announced it would not raise penalties on those affected if they hadn’t done it because they hadn’t had their tax top-up payment. Post Office’s miscalculations Niedle’s post highlighted the tax implications in relation to compensation and lump sums and exposed both the complexity – and simplicity – of the taxation error. “Compensation can be viewed in a number of ways from the tax standpoint,” Benneyworth explains. “So it does depend on what we’re talking about, but a big part of some post-masters’ settlements under [the original compensation scheme] HSS came in the form of compensation for being sacked incorrectly. “In those cases, victims receive the first £30,000 tax-free, and the remainder is subject to PAYE, even though you’re not working for the Post Office anymore to have PAYE deducted on it. So, if the compensation scheme is structured properly, the compensation payment would be calculated based on net pay, leaving no tax implications.” However, the Post Office didn’t follow that guidance, and instead based their calculations on gross pay, making it all subject to PAYE. “So, if you imagine that you’re a postmaster earning, let’s say, £20,000 a year, and you receive 20 years’ compensation for loss of office, that’s £240,000, most of that would be taxed at 45%; whereas if you turned it year by year by year you would only have borne basic rate on it,” says Benneyworth, who explains that victims also incurred a tax liability on the interest on that compensation as well as on what’s called their shortfall payment – the money that they provably put in to balance the books. “Unfortunately, when you read in a bit more detail about it, what you find is that most of it they can’t prove what they put in,” says Benneyworth. “And so you’ll see quotes from postmasters saying, I haven’t even got back half of the money I put in. But that’s because the Post Office is asking for documentary proof, much of which is lost in the mists of time.” The cavalry arrives It’s no wonder that the offer of help from qualified accountants has been so warmly welcomed by the victims of the scandal, given they have been affected by a number of large bureaucratic machines. And, despite the sense of frustration over the general performance of those responsible, Benneyworth singles out one as having stepped up to the plate. “HMRC has been absolutely brilliant. I’ve spoken with its team and shared my information sheet with them so they can see what we’re doing.” The Revenue moved quickly, opening up a phone line staffed with properly trained advisers keen to help those affected. And, while Benneyworth is pleased to see the wheels grinding towards a satisfactory conclusion (albeit slowly), it could have been so different: “If you gave me a couple of bookkeepers I could have worked out these tax compensation payments in about a week,” she laments. Ultimately she is one of many hoping that the suffering endured by those affected might end up forcing changes when similar scandals emerge, and that lessons are learned. “The most important thing is that compensation should be taken out of the hands of the perpetrators – that’s absolutely essential. That means getting the right people to scrutinize it and focus on the needs of the people who’ve already been through enough.”
Have you thought about transitioning your practice from Ltd to LLP? Posted 03/12/2024 by Annie Makoff & filed under Members, Practice management. Accountants discuss the benefits and complexities of converting accounting practice business structure. Before 2001, prospective UK-based business owners could set up as a sole trader, a limited company or a general partnership. But after 1996 legislation in Jersey allowed businesses to register as Limited Liability Partnerships (LLPs), the Big Six began campaigning for similar legislation in the UK. In April 2001 legislation was introduced allowing business owners to enter into partnerships with one or more partners on a limited liability basis. Under an LLP arrangement, each partner owns the company and has an equal say in business strategy and operations. Unlike general partnerships where partners are jointly responsible for the actions of other partners and are therefore jointly liable for business debts, risks and litigation in an unlimited capacity, the legal responsibility of a partner in an LLP arrangement is capped at their financial contribution. There are of course pros and cons associated with every business arrangement, from a tax perspective as well as legal liabilities and employment rights. You can read about the key differences between company formations here. A business may be set up under one arrangement but at some point be converted to a different trading arrangement. As such, we asked several accountants about converting practices from a limited company to an LLP arrangement: should you do it and what might the pros and cons be? It’s not a straightforward change but there are benefits Kiran Chotai, Senior Manager, Private Client and Partnerships, haysmacintyre Historically, accountancy practices have tended to establish themselves as traditional partnerships, with many converting to LLP status over the last 23 years. The majority of top 100 practices are set up as a partnership. Limited company setups tend to be those acquired by a private equity company. There is no straightforward mechanism to transfer a business from a limited company to an LLP. This usually requires closing one entity and starting another which comes with their own legal and tax implications. Accountancy practices have always prided themselves on providing excellent service to their clients. A partnership structure, where the partners own their business and deal with the clients themselves, will be encouraged to promote this principle. Limited companies still offer this but there can be instances where the shareholder is not the one dealing with clients which may lead to internal conflicts. In addition to offering limited liability, the main benefit of setting up as an LLP is flexibility. The ability to appoint or resign members, and dealing with their profit share, is easier in an LLP than the rigmarole of share allocations, dilution, and potential capital gains tax implications. Partnerships are also transparent for tax purposes: members file their own tax returns and also pay tax on their profit allocations, not the partnership itself. A common issue I encounter is aligning the NIC position of an individual transitioning from an employee/director to a member, which is simple enough to deal with, but something HMRC often struggles with. Verdict: It’s not straightforward to transfer from a limited company to an LLP but there are benefits in doing so. Small accountancy practices may benefit due to tax implications Natalia Micu AATQB, Freelance Accountant and Management Accountant, Novenary The LLP and Ltd are similar as they are both treated as separate entities from members and shareholders. Members can sign contracts, employ staff, own property or be sued in a dispute. The biggest difference is the liability of the members, shareholders and directors: in Ltd, liability is limited at their capital investment, while in LLP, liability is transferred to its partners. There are benefits of a LLP arrangement: Greater flexibility – members can change the share of profits, management structure, how decisions are made and how members are appointed. Distribution on profits is automatic at the end of the year, under a pre-arrangement split made at the formation. In Ltd however, profits are retained and paid as dividends based on shareholding percentage. No Corporation Tax is paid as it’s the members who are taxed not the entity. Instead, members are taxed separately on their share of profits and each file Self Assessments. Lower rate of tax: The LLP tax rate is between 40-47% whereas Ltd arrangements can be liable to double taxation where income source is taxed twice (Corporation Tax for business profits and shareholders tax on dividends). Ltd tax rate is between 50-60%. Businesses wishing to transfer to a LLP arrangement must hold a general meeting with shareholders to ask for approval. A 75% majority vote is needed. Although the decision to transition is up to the shareholders, I believe that many small accountancy practices are better off as LLPs due to the tax implications. Verdict: Many small accountancy practices will benefit as LLPs due to tax implications and other benefits, though this does require shareholder approval. LLP arrangements offer tax incentives but come with considerable obligations Adam Pierce, Finance Manager, The Stag Company The main advantage of LLPs is that each partner’s profit share is taxed at their own personal income tax rates. This usually works out to less than they would pay on an equivalent salary that they would receive from an Ltd. Both LLP partners and directors have limited liability. However, there are also considerable administrative obligations and disclosure requirements to consider when transitioning to a LLP. The LLP has been most commonly suited and seen within professional services such as solicitors, accountants, surveyors etc. Verdict: There are tax incentives for LLP arrangements versus Ltd, but considerable obligations and requirements are also required.
A stunning second act: Meet the accounting firm thriving thanks to career-changers Posted 03/11/2024 by Christian Koch & filed under Employers, Members. When Carter Clear Accounting wanted to expand its team, it recruited two older workers as apprentices. The firm has benefited in many ways, from building customer relationships to bringing in new clients. Carter Clear aren’t alone in hiring more mature apprentices. Today nearly half (48%) of the apprenticeships started in 2022/23 were by people aged 25 and over. These new ‘career-changer’ hires can boost their new companies in many ways. Many managers believe older workers are easier to train than new recruits, have better communication skills and bring expertise – and sometimes even clients – from the sectors that they previously worked in. Warrington-based Carter Clear Accounting has hired two career-changers in recent years, placing them on apprenticeships. They share their stories here, plus director Caroline Carter tells us why grown-ups are good for business. Develop your digital skills Demystify cybersecurity, blockchain and cryptocurrency with our Digital Decoded masterclass. Find out more Meet the apprentices Dave Bennett, 42, Trainee Accountant and AAT Level 4 Apprentice, Carter Clear “For 20 years, I was a freelance sound engineer. It was a fun job, touring with bands such as Hayseed Dixie [an AC/DC bluegrass covers band] and working for large PA companies such as Ad-Lib Audio. Then Covid hit. Suddenly the industry I’d spent my entire life working in was decimated, with live music cancelled due to the lockdowns. At the same time, I’d hit a point where I really didn’t want to be doing student club nights at 4am for the rest of my life. “Having worked as a sole trader, I’d always known about tax and business management, so decided to work in accountancy. In late-2020 I started studying AAT Level 3. After passing the exams, I started at Carter Clear as a Level 4 apprentice in summer 2022. “I’m still gigging with bands in my spare time, where I often meet acts and their management teams who tell me they struggle to find accountants who understand the music industry. As a result, they’ve asked me to do their tax returns and I’ve brought them into Carter Clear as clients. “Many of them had old-school accountants where everything was paper-based. At Carter Clear we can put these clients onto software which links to their online selling platforms. It gives them much more insight into what they’re selling in real-time, rather than waiting months to get a report from their accountant. “The AAT qualification has been great too. The extra tuition and guidance I receive from a training provider is especially beneficial. If I’d attempted to become an accountant off my own back through self-study, it’d be much more difficult. “Being an apprentice in my 40s has meant I’ve had to take a bit of a pay cut. But I’m not looking at this in the short-term; it’s a long-term plan that should build towards something in the future.” Emma McGarity, 35, Trainee Accountant and AAT Level 3 Apprentice “I was working as a cleaner before joining Carter Clear. After a couple of months working as a part-time admin assistant, I became more intrigued about the accountancy work and wanted to find out more. Caroline then asked, ‘Why don’t you do an apprenticeship?’ “When I first started, I was apprehensive. I thought everybody else studying AAT would be 16-years-old! But there’s actually a wide range of ages at the college. At 35, I’m one of the youngest! “Working at Carter Clear as an apprentice has made me realise just how many transferable skills I had from my previous job as a cleaner. Back then, I was regularly dealing with invoices without realising that was part of accountancy. I’d also train the other cleaners, plus help run the day-to-day business. Sometimes I’d also clean shops: I’ve used this knowledge at Carter Clear, as many of our clients are in the retail industry. “Being a newly single mum with three kids, I admittedly struggle to find time to study. But the business awareness part of the AAT Q2022 syllabus has been really useful. I’m starting Level 4 next year and can’t wait to get as many qualifications as I can.” What the boss says Caroline Carter FMAAT, Director, Carter Clear “Emma and Dave are the first apprentices I’ve ever hired. They might not have worked with Excel before, but they’ve got life experience and bring loads of transferable skills from their sectors. One of the most important skills is their ability to talk with clients. As a cleaner, Emma has worked in the houses of people who come from a wide range of backgrounds, from ordinary families to those who are very wealthy. As such, she can chat with anyone. Since joining Carter Clear she has built relationships with our customers. Sometimes the client doesn’t want to speak with me anymore – they want to speak with Emma! Previously, we’ve had interns who joined straight from school. They were so timid, they jumped whenever you spoke to them! I doubt they would have progressed in the same way as Emma and Dave. Our great Google Reviews are testament to their client-building skills. Career-changers also bring in-depth knowledge from their previous roles. Carter Clear has many clients in the music/entertainment industry. Sometimes I hear Dave chatting to them on calls about stuff that goes over my head. In fact, thanks to Dave bringing in clients from his music career (see above), it’s opening the industry to us, something we hope to develop in the future. Because our career-changer apprentices have managed people in their previous roles, if we hired any new apprentices, I wouldn’t hesitate to let Dave or Emma manage them. Luckily, the AAT qualifications are so well-rounded, it covers everything they need to know. There’s also room for flexibility too. Emma didn’t have any bookkeeping skills when she started, but fortunately our training provider First Intuition Manchester added the two Level 2 bookkeeping courses into her Level 3 apprenticeship. The new Q2022 syllabus is perfect for our needs: it’s more digitally-focused and covers business awareness. It gives me confidence our apprentices can do their job without any hand-holding. Through them, I’m learning new stuff too! As a boss, it’s also great to give somebody a second chance. When I started AAT, I was a single parent with two kids, caring for my mum who had multiple sclerosis. Yet, fortunately, my AAT tutor found me a job that was flexible with hours. Today, I wouldn’t hesitate to let somebody else have a similar opportunity. Thanks to Emma and Dave, I’m not as stressed or doing so much work anymore. It frees me up to develop other areas of the business, such as investing in LinkedIn training or hosting a brand strategy day. None of this would happened if I didn’t have two experienced hires on board.” Develop your digital skills Demystify cybersecurity, blockchain and cryptocurrency with our Digital Decoded masterclass. Find out more
How UK SMEs use automation to beat tough times Posted 03/11/2024 by AAT Comment & filed under Members. Partner content from Quadient. In the face of soaring costs and shrinking customer spending, UK small and medium businesses (SMEs) are facing various challenges. External help is expensive, pushing them to find smarter, internal solutions. Amid these challenges, a quiet revolution is underway. Many SMEs are turning to technology to cut costs and boost efficiency. Automation is at the forefront of this change, transforming time-consuming manual tasks into streamlined, digital processes. Curious about how they’re doing it? The answers might surprise you. Making AI count: streamlining AP for better insights Learn how you can effectively leverage AI to optimise financial operations, streamline accounts payable, and save you time and money. Delivered by Quadient the authors behind this insightful thought leadership paper. Download your copy Harnessing e-invoicing One of the secret weapons in this tech revolution is electronic invoicing (e-invoicing). Far from just sending bills via email, e-invoicing is about making the entire billing process faster, more accurate, and virtually error-free. Success stories, like the transformation seen at St. Paul’s Cathedral (pictured), offer a glimpse into the potential of automation. These aren’t isolated cases but signals of a broader trend reshaping the future of SMEs. For SMEs and those interested in the future of business, this thought leadership paper unveils the full scope of automation’s impact. Discover the innovative strategies SMEs are employing to navigate economic adversity and emerge stronger by reading the paper here. Develop your digital skills Learn to leverage automation to reduce errors and increase productivity with our Digital Decoded masterclass. Find out more
Spotlight on AAT’s Professional Standards team Posted 03/11/2024 by Christian Koch & filed under Anti-money laundering, Anti-money laundering, Members. AAT’s Professional Standards team are helping uphold standards across the organisation, from providing ethical advice to holding accountants to account through our disciplinary procedures. Professional Standards is currently an eight-strong department at AAT. Theirs is a supervisory role, ensuring AAT members behave professionally while maintaining the high ethical standards the public expects from AAT. On a typical day, this “upholding of standards” can see the Professional Standards team follow up alleged complaints that a member has behaved unethically or investigating other professional misconduct, such as members failing to keep up with their anti-money laundering (AML) responsibilities or providing services to clients without a valid practising licence, and, more rarely, fraud and other serious financial crimes. Develop your digital skills Demystify cybersecurity, blockchain and cryptocurrency with our Digital Decoded masterclass. Find out more The Professional Standards team has the power to select members for practice assurance reviews, where a representative may visit your office to see client files, fee notes, indemnity insurance policy, AML procedures and CPD records. If this hasn’t happened to your firm yet, there’s every chance this could happen soon: around 10% of supervised members will get a practice assurance review every year. AAT’s professional standards manager Helen Barrett says, “it’s in the public interest for AAT to regulate our members. The main benefit is us being able to reassure the public through our promoting and enforcing high standards of professional conduct by our members, particularly those who are providing accountancy services to clients. We also have a duty to monitor and supervise their compliance with money laundering legislation. This is why it’s important for AAT o have some kind of professional standards function to do that effectively.” How do AAT members use Professional Standards? Members can contact the team if they need advice on ethics-related topics such as confidentiality or conflict of interest matters. If they have any queries about complying with AML regulations, such as how to report suspected illegal activity, they can get in touch too. They can also lodge complaints against fellow members. The most popular reason for members to ring Professional Standards? Client troubles. “Oftentimes, it’ll be a difficult client who is moving to another accountant, so they have questions around disengagement and what they can divulge while remaining compliant with the Code of Professional Ethics,” says Adam White, professional standards officer, AAT. Useful numbers Ethical helpline: +44 (0)20 7397 3014; email [email protected]. Anti-money laundering helpline: +44 (0)20 7367 1347; email [email protected]. Making a complaint: +44 (0)20 7397 3008 or email [email protected]. How do Professional Standards investigate members? Broadly speaking, there are three types of investigation. Fit and Propers This is where Professional Standards “assesses who can become a member on a case by case basis”, says Barrett. “For example, if somebody wants to be an AAT member and they’re bankrupt or have a criminal conviction, we examine whether they’re fit to join AAT.” Practice assurance reviews These monitor members to ensure they’re being compliant with relevant legislation, regulations, policies and the Code of Professional Ethics. Disciplinary investigations These usually happen following a complaint from a member of the public or a client, or following a member’s own disclosure to AAT. Actually, a high proportion of Professional Standards’ current caseload is intelligence and findings received from its own practice assurance review activity. Professional Standards investigates the lack of AML compliance control and procedures in place more than any other case. “While AML can be time-consuming, it’s in the UK legislation,” says White. “If you’re providing accountancy services, you have to do it. And as a supervisory authority, it’s our responsibility to ensure you’re doing this.” Disciplinary investigations also deal with complaints such as financial/professional misconduct, incompetence and accountants operating without a licence. However, if somebody contacts Professional Standards accusing an AAT member of serious crimes such as fraud, the authorities take over. “There’s a misconception we’re the police,” says Barrett. “We’re not. We can’t start seizing computers.” What disciplinary action can Professional Standards take? If a member is found to have fallen short of standards we reasonably expect of them, which is likely to bring discredit to the member, the accountancy profession or AAT, then Professional Standards are obligated to investigate as misconduct under Disciplinary Regulations. The primary purpose of disciplinary proceedings is not supposed to be punitive, although it may feel like it. The purpose of sanctions is to maintain the public’s confidence in the accountancy profession and to deter future misconduct. Usually, where misconduct is found, the Disciplinary Regulations allow for cases to be closed on a ‘consent’ basis with the errant member being reprimanded with a £2,000 fine for example. “But consent only works where the member accepts their behaviour and they agree with the investigation findings and sanctions”. The maximum fine AAT can impose is £10,000, while members can also be expelled from the organisation too. All AAT’s sanctions and starting points are set out in its Indicate Sanctions Guidance. If Professional Standards determines that the case is in the public interest, or where the member does not agree with the investigation outcome, it’ll go to a Disciplinary Tribunal for them to hear the case and determine an appropriate outcome. Here this may involve costs too. “In one recent tribunal case a member had to pay £10,000 costs to the AAT, in addition to their fine,” says Barrett. The reputational damage following a tribunal can be particularly tough for members. All disciplinary outcomes (such as termination/suspension of AAT licences) are published on the AAT website, which will appear anytime a prospective client Googles your name. If AAT members could do one thing… Most issues investigated by Professional Standards are due to complacency, not criminality. Says White, “Our misconduct investigations rarely deal with people who are deliberately flouting regulations. Most of the time, it’s down to people becoming complacent because they’re used to doing things in a certain way or had the same clients for a long time. Or they haven’t done their CPD or kept up to date with new legislation. Many people see AML as a time-consuming, box-ticking exercise. It’s a criminal offence not to meet these obligations. “Make sure you’re reviewing your clients for AML and doing due diligence on a periodic, regular basis,” adds White. “Never just assume everything’s okay. Criminals will deliberately target accountants who have weak AML controls and procedures, if any at all, so we all have a duty to make sure we drive them out, so they don’t succeed.” Case study What happened? A member of the public complained to AAT’s professional standards about an AAT accountant who hadn’t filed their self-assessment tax return on time with HMRC. As a result, this person received a financial penalty and was considered ineligible for the self-employment income support scheme grant. This wasn’t the only time AAT had received a complaint about this accountant: HMRC had previously raised concerns about their incompetence when they acted as a witness for a client at a tribunal. What did AAT do? The member was found to be in breach of AAT’s Code of Professional Ethics. They were reprimanded for 24 months, had their FMAAT designation removed and received a financial fine. Their misdemeanours were also published in AT magazine and on the AAT’s website. Develop your digital skills Demystify cybersecurity, blockchain and cryptocurrency with our Digital Decoded masterclass. Find out more
4 Ways a Question Bank Can Boost Your AAT Exam Preparation Posted 03/11/2024 by Accountext & filed under Students. This content is brought to you by Accountext. Preparing for an AAT exam requires dedicated study and extensive practice to master the knowledge and skills. One invaluable tool in enhancing your exam readiness is the incorporation of a question bank – a curated collection of practice questions designed to mirror the challenges you are likely to face in a real exam setting. In this exploration, we delve into the profound benefits of integrating a question bank into your AAT study routine, illuminating how it can significantly elevate your chances of success. 1. Understanding Exam Format and Content A question bank offers an opportunity to familiarise yourself with the structure and format of AAT exams. By engaging with questions that closely simulate the real exam, you gain first-hand experience of the question types and their varying levels of difficulty. This immersive familiarity cultivates deep-seated confidence, mitigating exam anxiety and providing you with the assurance needed to approach the exam with composure. 2. Reinforcement of Learning and Application of Concept Practice is pivotal in mastering any skill, and AAT studies are no exception. The crux of mastering AAT studies lies in the application of theoretical knowledge to practical scenarios—a question bank catalyses reinforcing your learning by presenting real-world challenges. Through consistent practice, you develop the ability to analyse information critically, make informed decisions, and solve problems within the context of accounting. This not only hones your critical thinking skills but also fortifies your capacity to apply learned concepts to real-world situations – crucial competencies in the dynamic field of accounting. 3. Identification of Knowledge Gaps and Weak Areas Utilising a question bank is an effective diagnostic tool for identifying knowledge gaps and areas that demand further improvement. Incorrect answers or challenges with specific questions serve as indicators, guiding you to focus your study efforts where they are most needed. Identifying these weak areas empowers you to adapt your study plan, revisit relevant topics, explore additional resources, and consult study materials to bolster your understanding and bridge any knowledge gaps. 4. Time Management and Exam Strategy Refinement Engaging with practice questions from a question bank is a valuable way to refine time management skills and develop effective exam strategies. The timings for each question of the mock exam contained in an AAT Question Bank from Accountext replicate the pressure of the actual exam, training you to allocate time wisely. As you navigate through the questions, you learn to prioritise, manage time effectively, and strike a balance between speed and accuracy. This experience translates into enhanced efficiency during the exam, enabling you to answer questions confidently within the allocated time. Conclusion Incorporating a question bank into your AAT study routine can be a game-changer in your exam preparation journey. The benefits of using a question bank, including familiarity with the exam format, comprehensive topic coverage, reinforcement of learning, identification of knowledge gaps, and time management skill development, are invaluable in maximising your chances of success. Embrace the power of practice, harness the resources provided by a question bank, and unlock your potential to excel in your AAT studies. Accountext produces AAT study material that is used by self-study students, in college classrooms, and by private training providers. This content is brought to you by Accountext. Accountext offer: study books & question banks; e-learning with videos; e-assessment with auto-marking; powerful reporting and student progress tracking.