Tax phishing warning from HMRC Posted 10/17/2023 by AAT Comment & filed under Anti-money laundering, HMRC updates, Members. Be on your guard against criminals posing as HMRC. Many students are starting paid work, sometimes for the first time, and may not have dealt with HMRC before. If you are unfamiliar with paying tax or dealing with the tax authority you are vulnerable to fake ‘tax rebate’ offers and similar scams. Criminals posing as HMRC may contact you offering a tax refund or to tell you your National Insurance number has been used in fraud. Make sure you’re on your guard – find out about tax scams and how to report them.
Why your organisation may be failing to recruit women Posted 10/13/2023 by Christian Koch & filed under Employer newsletter, Employers. Women hold fewer than one in five senior roles in finance. What techniques can create a better gender balance in your workforce? Today, women make up nearly half (44.6%) of chartered and certified accountants working in the UK, according to ONS figures from March. Anybody thinking this represents progress should probably think again: in 2014 ONS stats showed the number of female accountants to be 44%. The number of women working in the industry has only limped along at a paltry 0.6% over the last nine years. A lack of senior-level role models The problem becomes more acute when looking at company organograms, with the top tiers skewing heavily male. Women only make up 17% of partners at accountancy firms according to the latest research from the Financial Reporting Council CHK (FRC). At smaller practices, it’s just 11%. The lack of women at higher levels could explain why women in financial services are paid 23% less than men in the same roles (according to a Censuswide survey) and why they are 13% less likely to believe a career in accountancy is attainable than their male counterparts (Grant Thornton study, August 2023). Fewer female start-ups Recruitment is another issue. Although gender balance is strong in early careers (55.8% of AAT students are female), some areas attract fewer women than others, such as audit and tax. Meanwhile, fewer women are starting their own accountancy firms, possibly due to a lack of investment. According to research from Instant Offices, just 12% of accounting/auditing businesses were established by women last year, down from 22% in 2021. Although there is some good news – the FRC found 46% of managerial positions within accountancy are women, a figure that rises to 56% at smaller firms – it’s clear more work is needed. Boost your finance skills Elevate the financial expertise of your teams with AAT’s renowned one-day finance training and concise online courses, Learn more PwC and Grant Thornton are two accountancy firms that have made great advances in improving gender parity in recent years, with both companies recently named as The Times’ Top 50 Employers for Gender Equality. Here, both firms discuss some of the barriers stymying progress for women in accountancy and what can be done about it… Recruitment and promotion The problem: Some areas of accountancy attract fewer women, such as audit, tax and analysis (just 37.5% of finance analysts and advisers are women, according to the ONS). Meanwhile, 69.5% of bookkeepers, payroll managers and wages clerks are women The solution: Training to eliminate unconscious bias in the recruitment process; banning all-male shortlists; non-biased language in job adverts (businesses may invest in software such as Textio which helps employers write bias-free job adverts/descriptions); enhanced visibility of women at recruitment events. Anne Hurst, inclusion lead, PwC: “The problem of benevolent bias exists within many companies. For example, sometimes an employer will say, ‘We shouldn’t give a female candidate a position because she’s got a young family and this role will require some travel’. The intention might be good, but employers shouldn’t make assumptions on the candidate’s behalf. At PwC, anybody who conducts a job interview has to undergo training so they know how to challenge this unconscious bias if it emerges. In 2018, we also banned all-male shortlists for jobs. When we receive applications through external recruiters, sometimes there’s too many male candidates. If that’s the case, we ask the recruiters to source the talent more widely. Getting people [from all backgrounds] chatting at recruitment fairs or at schools/universities, will help prospective candidates understand what it [inclusion] is like at your firm on a day-to-day basis. Some areas in financial services tend to be more male-dominated than others, such as audit. PwC recently launched a Women in Audit campaign to inspire more women into an audit career and bust myths such as you can’t work in audit unless you have a mathematics/economics degree. This campaign educates people about what a career in audit is like, while we also use profiles [of women working in audit] on our careers site to show that people working in audit can come from all backgrounds and career journeys.” Flexibility for working parents/carers The problem: Advances for flexible/hybrid working since the pandemic have granted greater flexibility for many parents/carers. However, half of the UK’s working mothers have had their request for flexible working turned down or partly accepted by their employer, according to a 2021 survey by the Trades Union Congress (TUC) and Mother Pukka.The solution: A more robust flexible working policy; greater communication within teams; using internal networks and external parenting/caring support groups. Fiona Beighton, international business centre director and gender convenor, Grant Thornton: “Many organisations see women drop away after maternity leave because they can’t manage their jobs without some degree of flexibility. At Grant Thornton, we have a ‘How We Work’ policy which allows people to decide where, when and how they want to work (subject to business needs). We also try to encourage people that if they are doing the school run to put it in the diary, so it’s visible to their colleagues.” Hurst, PwC: Internal networks can be a great help for employees with parenting/caring duties. Our SPACE (Supporting Parents, Carers and Everyone Else) network is a great support community with sub-groups for adoptive parents, single parents and working dads. We also signpost to external organisations such as Tommy’s [pregnancy/baby loss charity] and My Family Care [benefits company which offers backup childcare/eldercare services]. The need for identifiable female role models The problem: A lack of conspicuous role models within workplace cultures, meaning many women feel progress isn’t attainable. According to 2022 UK data from LinkedIn, 57% of women believe having a relatable role model is crucial to achieving career success. The solution: Strong storytelling; enhanced mentoring. Beighton, Grant Thornton: “At Grant Thornton, we don’t just use our intranet for reporting work wins and changes in policy, but also telling stories. At least twice a week we run stories about individuals and their lived experiences, such as dealing with paternity leave (do we intend to say paternity leave here or should it be maternity leave?) or coping with caring duties. It’s fascinating: even if employees know that person, they still find out something they didn’t know about them, such as challenges in their careers.” Hurst: PwC: “We work with the 30% Club, a cross-company mentoring scheme which aims to boost female representation at board and C-suite level. It can really support female retention and progression.” A lack of women in senior positions The problem: Only 17% of women rise to the level of partner in accountancy firms, according to the FRC. The solution: Sponsorship, mentoring and workshops. Hurst, PwC: “We allocate a ‘sponsor’ (usually a senior business leader) to female talent who have potential to be future leaders. These sponsors can help with their portfolio and development.” Beighton, Grant Thornton: “We prepare women for senior positions through our female-only programmes: Elevate (which helps managers become directors) and Breakthrough (which helps directors become partners). Both programmes have been designed to show female employees what being a partner/director is like, mainly through workshops such as ‘How to Build Your Brand’ and ‘How to Be More Confident’. It’s been hugely successful: 42% of the women who attended Breakthrough have been promoted.” How to help returning mothers The problem: Women who take an extended period away from work – whether it’s a year’s maternity leave or a five-year gap to raise children – face significant barriers, whether it’s confidence issues or returning to the workplace at a less senior level. The solution: Better support and training/coaching; pairing returning mothers with ‘buddies’ within the workplace. Beighton, Grant Thornton: “Taking time out can affect people’s confidence. For those people returning from family leave, we offer return-to-work mentoring, pairing them with a buddy who’s been through the same thing. We also offer return-to-work coaching for people who have lost confidence or are unsure what to do next, to help ease them back into work.” Hurst, PwC: “To enable a smooth transition for those returning from family leave, we have toolkits and career coaches. We also provide access to coaching through Talking Talent, which provides sessions for mums and dads on leave.” Support for women experiencing the menopause The problem: The UK loses an estimated 14m workdays every year due to the menopause, while 900,000 women are said to have quit their jobs because of menopausal symptoms. The solution: Provide access to medical support; train managerial staff about the menopause. Beighton, Grant Thornton: “We train our people managers and issue them with guidance. Grant Thornton signs up for Doctor Care Anywhere, a GP support platform which specialises in the menopause and predominantly run by women. Many women experiencing the menopause just want a a quick answer about their symptoms; Doctor Care Anywhere is much easier for many people than visiting their GP.” Hurst, PwC: “We have a Menopause Matters group: a community which shares information and support. We also offer access to an app called Peppy which covers menopause information, as well as health/fertility information. It’s also got a chat function which enables people to immediately connect with a medical expert.” Apathy among male colleagues The problem: Although many men support greater gender equality, many female workers feel this isn’t always reflected in their actions. One 2019 report by Promundo found that while 77% of men reported doing ‘everything they can’ to achieve gender fairness, only 41% of women agreed that they were. Meanwhile, 60% of women surveyed said it’s rare to see men speaking out against gender discrimination. The solution: Male allyship programmes (see below). Beighton, Grant Thornton: “At Grant Thornton, we’ve been running a ‘male allyship’ programme to help educate men on the importance and benefits of gender equality, which is mainly run via workshops.” Final words Hurst, PwC: “There’s not one single thing that’s going to fix this [problem of gender imbalance]. One thing that helps is having a data-led approach. You need to know what your organisation looks like and what the main issues are and to measure whether you’re really making progress. This data can identify the main issues, whether it’s promotion or lack of flexibility, so you can take the appropriate actions to resolve them. Make sure that gender equality isn’t just about some good words in your annual report. You need to show what you’re doing as an organisation to be an inclusive employer on your social media and elsewhere, so that people can see what you’re doing [on inclusivity as a firm] day-in, day-out throughout the year. If you need to start somewhere, try focusing on a few key actions, sustain them and make sure staff are accountable for them.”
From accounting software to ChatGPT: Is tech aiding or hindering accountants? Posted 10/12/2023 by Annie Makoff & filed under Members, Technology. The market is flooded with software and rapidly iterating technology. We asked accountants how helpful it really is. Sage. Xero. Quickbooks. Intuit. Bright. NetSuite. FreshBooks, Oracle Fusion. AccountsIQ. Clear Books. Tide. Cruch. FreeAgent. Zoho. The market is saturated with accountancy software packages, apps and platforms, each offering slightly different functionality and tools. It can be overwhelming to know which ones to go for, and even once subscribed to a particular package, it can be a minefield to navigate the different functions and how – and if – they integrate with existing systems. Common technological problems accountants often come up against include: software not being as intuitive as expected inability to customise or personalise software for clients’ benefit software doesn’t integrate with legacy systems or existing software steep learning curve because systems are too complex to navigate systems or software requiring time-consuming, ongoing staff training overwhelm: working with too many different systems at once. But for all its faults, technology has revolutionised how accountants work. Processes that would traditionally take several hours or even weeks have been condensed to mere minutes. Entry-level graduates and apprentices can use their knowledge and skillsets much earlier on in their roles because automation is performing the time-consuming manual tasks they’d previously have done themselves. And for chartered accountants, the use of automated, integrated and streamlined software allows analysis and interpretation of a wealth of data in real-time, improving accuracy. Provided it is used with caution, AI is one such tool that can aid accountants in analysing huge amounts of financial data to identify patterns, anomalies and trends. We spoke to accountants from accountancy practices of all sizes to find out how they’re navigating the complexities of technology and whether it’s helping or hindering their workload. Technology frees up accountants to provide value-add services Stuart Tait, Partner, Chief Technology Officer, Tax & Legal, KPMG Technology is constantly evolving, so there will always be an element of the landscape that’s not as joined up as it should be. Most tax solutions, for example, don’t integrate directly with finance systems, so as a firm, we’ve built internal systems to bridge tax and finance software. But from my perspective, technology and AI is an invaluable asset. It massively reduces the time it takes to perform essential tasks. 18 months ago, we invested in AI software to reduce the time tax professionals spent researching and pulling together several sources of information (legislation, guidance from HRMC, outcomes of cases etc). The software aggregates and identifies relevant information to help predict tax scenario outcomes and tax professionals can then apply their professional judgement. This process used to take several hours but with AI, it’s now a couple of seconds. During my first corporate role, I was gathering data manually to prepare tax returns. It would take 5-6 hours before I could even start to apply my knowledge. That role doesn’t exist anymore – it’s entirely automated, freeing professionals up to focus on advisory and value-added services. As the tax landscape has become more complicated with more regulatory changes, firms also have to keep pace with client demand and scale up on their availability to deliver advice. Tech and AI is essential in achieving this. Verdict: Technology is essential in freeing up accountants and tax professionals from administrative tasks to provide more advisory, consultancy services. Tech makes it easier to share information, collaborate and automate manual tasks Craig Dyer MAAT AATQB, MD, CA Dyer Accounts and Bookkeeping Technology definitely makes life easier for accountants. Apps and platforms like Zoom, DropBox, Google Drive and Google Workspace make it easy to share information and documents, and work collaboratively in real-time. We’re a cloud-based practice so when we’re working on-site, we have accountancy packages such as QuickBooks set up remotely. I can take my office with me wherever I go. That’s really important for us as a team. Technology makes team meetings easier, too. If some staff are working remotely and others are in the office, the meeting can still happen, we use video links so everyone is involved. Video meetings with clients help enormously with relationship building – we don’t have to restrict ourselves to local clients. Software packages also perform labour-intensive tasks, so as a practice we can focus on more detailed client work. However, some packages aren’t as intuitive as they first seem, and require team members to frequently upskill. This is especially pertinent when software is updated, changing the interface or bringing in new features. If we don’t stay on top of these changes, it’s harder to provide a quality service to our clients. But overall, technology has revolutionised how we work. Processes that would previously take hours are now much quicker, so you’re working more efficiently and filling your time with value-added work. Verdict: Tech makes it easier to share information, collaborate and automate manual tasks. It does require regular upskilling, though. Automating software helps grow my practice, but some tools don’t integrate well Emma Rees MAAT AATQB, Director, Mercury Accounting It’s great to see so many technological advancements making their way into the work of accountants, particularly in automation and AI. It would be difficult to grow my practice without the aid of automating software to streamline operations. When I started my career, we didn’t have these advancements. But on occasion, it’s been challenging to learn the complexity of these systems. It can also be difficult to know which software is best – the market is pretty saturated currently. I trust personal recommendations, rather than cold sales pitches. Also, some tools don’t integrate seamlessly together and I’ve also found a lack of customisation in some software. For example, you can’t upload client logos to make it more personalised. However, the software I’ve been using for my clients to file submissions has never been easier. With everything in one system, the submission process has been simplified – just in time for Making Tax Digital. Automation too can reduce repetitive tasks and massively reduce errors, but it doesn’t eliminate errors completely! The data is only as good as the person inputting it. Recent software has also started encouraging users to receive certification, which I love. It’s something all my team strive towards and it definitely gives some additional peace of mind for our clients. Verdict: It would be difficult to grow my practice without automating software, but technology comes with challenges including integration troubles. AI systems will allow accountants to engage in more consultancy Steven Englander, Accounts Direct I’ve always been an advocate of AI, systemisation, and automation. These technologies offer the benefits of lower costs, increased efficiency, and reduced reliance on human resources. They can also be easily implemented worldwide without the need for physical infrastructure. However, we must contend with constant updates, software mergers, and bugs, along with the need to use multiple software programs to perform similar tasks. A lot of the time, the user interface of these programs is often complex and difficult to navigate, especially for those who aren’t tech-savvy. Often, when a process doesn’t work (eg, rules in assigning transactions to ledgers) it’s usually the user not fully understanding or incorrectly performing the process. Fortunately, I’ve noticed the interface, training and automation improving. It won’t be too long before AI systems will be advanced enough to operate without requiring human input, allowing me to engage much more in consultancy advice. Verdict: AI systems will soon be able to operate without human input, allowing accountants to engage more in consultancy work.
How to overcome exam anxiety and succeed Posted 10/09/2023 by The content team & filed under Students. Charlie Atkins AAT Affiliate overcame his struggles with exams and assessments to begin a successful accounting career. Norwich-based Charlie Atkins, assistant management accountant at Right For Success Trust and finalist for last year’s 2018 PQ Magazine Awards, runs revision sessions for accountancy apprentices in his spare time. He’s gained 95% in his Level 3 synoptic and achieved 82% in his Level 4 qualification. In the last academic year, he saved the Trust (his employer) a total of £120,000 by putting his learning with AAT into practice. But despite these successes, 21-year-old Atkins hasn’t had an easy journey. He initially struggled with exams and assessments throughout his school career, mainly because of confidence. Overthinking the questions “I tended to overthink the questions, so I’d start off with the right answer but I’d panic and change my mind,” he recalls. “My colleagues at AAT were all passing assessments their first time and I failed my first two. People started questioning my ability and asked if I’d made the wrong career choice. I started wondering if I was even smart enough to continue.” Most people would have given up at this point, but for Atkins, the negativity had the opposite effect. “It actually gave me the drive to prove people wrong,” he explains. Atkins made sure he was always the first person in college every day and the last to leave. He made use of AAT forums, study groups and the AAT online chat, as well as going through all AAT material – completing every green light test, tutorial, step-by-step guide, and mock assessment available. “I just didn’t give up,” he says. “I worked so hard to get where I am now. I invested an endless amount of hours into my studies and worked long hours.” Making things click Things didn’t start to really click for Atkins until he started working at the Right for Success Trust three years ago, where he was given a lot more responsibility. His employer at the Trust, which runs 10 schools and academies across Norfolk, took the time to give him specific projects that were linked with what Atkins was studying with AAT. Now, he is responsible for producing and presenting financial reports for several academies, budget setting, settling finances between organisations and taking a lead role in the general ledger system – where he has currently trained the central office (including the executive team) and is projected to train over 700 employees on how to use the new system. He also volunteers outside of work hours to train and support apprentices with their AAT journey and runs mini revision sessions. The confidence to succeed Atkins says AAT gave him the confidence to succeed. He says the course material and support is relevant and “to the point”. In fact, it was having completed the AAT costing paper that he was then able to use his knowledge to negotiate prices with his employer’s main suppliers, saving them £120,000 over a three-year period. “Anyone can study with AAT and complete their accountancy qualification,” Atkins says. “Focus on just completing the qualification rather than how quickly you can do it. If you don’t get through an assessment first time around, download your statement of achievement report and focus on the areas you’ve struggled with. Take your time and make sure you are ready to smash it, most importantly, never give up!” Key takeaways Everyone learns at a different pace. Take your time and focus on finishing rather than how quickly you can complete your qualification. When preparing for assessments, make use of AAT’s forums, study groups and the AAT online chat, as well as going through all AAT material – green light tests, tutorials, step-by-step guides, and mock assessments. If you don’t pass an assessment the first time, download your statement of achievement report and focus on the areas you struggled with. Further reading: Coping with stress when studying for your AAT qualifications How I overcame anxiety whilst studying AAT What not to do to pass your exams Browse the full range of AAT study support resources here
Where to find the best apprentices for your business Posted 10/06/2023 by David Nunn & filed under Apprenticeships, Employer newsletter, Start an apprenticeship. What are your best recruitment options? Creating a compelling job advert is the key to attracting promising talent. But once you have done this, you need to think about which recruitment options will give you the best response. Free guide – 7 steps to start an apprenticeship AAT’s free guide to launching an apprenticeship in seven easy steps will walk you through the process, from job description to funding. Download How to finding a great apprentice: Promote your vacancy on the government’s Find an Apprenticeship portal. This is where many job-seekers head to search for apprentice opportunities. Adverts posted here are shared widely with schools/colleges and on social media, plus the site also has a high Google search ranking. Use social media channels to reach a wider audience. Remember that few students are on Facebook or LinkedIn, so tailor your advertisement towards any parents who might be reading. If you have a corporate TikTok account, you can also use it to shout about your apprenticeship opportunities through a video. Contact local schools and colleges if appropriate to see if they can share your advert. You can also attend careers fairs and events to meet potential candidates. List your vacancy on the AAT website. The AAT team can support you in promoting your apprenticeship opportunities. Be careful about using job advertisement websites. You may get people applying for apprenticeships because it’s a job, but their applications may not mention anything about accounting. Allow 12 weeks to employ an apprentice. This includes time for listing the job spec, advertising the vacancy, interviewing candidates, notifying candidates whether they’ve been successful, and giving the successful candidate time to work out their notice. How quickly can I recruit? It can take as little as four weeks to employ an apprentice. However, 12 weeks may be a more realistic time frame to work towards. This includes the following: Week 1: Listing the job spec. Weeks 2–5: Job advert is online; candidates’ CVs arrive. Weeks 6–8: Interviewing candidates. Week 9: Notifying candidates whether they’ve been successful. Weeks 10–12: Time for the successful candidate to work out their notice. Week 13: The candidate starts. Further information Finding talent is a competitive business, so the more you can innovate and stand out, the better. For cutting-edge tips on how top companies give themselves the edge, read our in-depth article How to attract young talent to your business.
How getting qualified benefited one accountant’s business Posted 10/05/2023 by Christian Doherty & filed under Accountable, Members. The government is mulling over whether or not to make regulation of accountants compulsory. With that in mind, what are the benefits of coming into the fold for unregulated individuals? A mid-career decision to gain an accounting qualification gave confidence and authority to now-AAT Council member Heather Darnell MAAT. Having started her career as a financial analyst in America, Darnell moved to the UK in the late 90s. Then in 2003, she set up a consultancy offering part-time and virtual CFO services for small businesses. The fact that AAT embraces people that came at it from a different point or a roundabout route is great. It’s for all those people who are already entrepreneurs, or business owners or finance directors. For those people, there is a route and the AAT recognises it. Heather Darnell MAAT, Founder of Ask the Boss “When I started out, I was just doing financial planning and recommendations based on whatever numbers the clients had,” she says. “But over the years, there was very much a very clear need to be able to provide bookkeeping services for people so they had up-to-date numbers to work from and talk to the bank about.” As the business grew and generated demand, Darnell added bookkeeping, payroll before eventually adding accounts, tax returns. “It became essentially a full-service accounting firm,” she recalls. Difficulties of being unqualified So far so good. However, over the years, supervising a growing roster of trainee accountants focused Darnell’s mind on her lack of formal accountancy qualification. “It really came to a head after a couple of years of not being fully in control of the business because I didn’t have the practicing certificate. And there was a feeling that I was held to ransom a bit by staff members because they had it. There are legitimate reasons that clients can be wary of unqualified accountants. According to HMRC’s research, only 4% of unaffiliated agents follow the Professional Conduct in Relation to Taxation (PCRT), just 18% follow HMRC’s standards of tax advice and 45% are unaware what the standard actually is. But such wariness can of course feel unfair to those unregulated accountants who have nonetheless been working hard and well in the industry. “So in the end I said, ‘You know what, you’re just going to have to do this yourself.” Fortunately, a pathway to membership is available. Let’s help [unqualified accountants] come in, because people need these careers, they need work and if they’re willing to show the same level of competence as everybody else in the profession, then should we not say, ‘We are a growing, open community – come in’? Sarah Beale, CEO of AAT Finding a suitable membership body Heather was initially put off other qualification options by a range of factors – prime among them the need to sell her firm while she studied. But her search for the right accounting body soon took her to the AAT. “I called them up and asked if I could I take the exams while still owning a firm. And they said, yes, of course you can.” At this point it’s worth explaining that most accounting qualifications follow a traditional route: study for Level One, pass; study Level Two, pass and so on. However, AAT allows experienced candidates like Heather to circumvent the typical route and jump straight to Level Four. She says the fact that AAT exams rely heavily on the use of real-life examples – looking at everything from budgeting and forecasting to contracts and tax – makes the process straightforward for someone well-established in their career. “If you really are qualified by experience, a lot of it was very much common sense.” Unexpected benefits of study Despite the fact that much of the assessment journey covered familiar territory, Heather believes she ended up learning a great deal more than expected. “It was interesting because there were quite a few things in the course of qualifying I had never come across before. One thing I found incredibly useful, which was something super weirdly technical, was the consolidation of multiple company accounts in one. That was really useful and interesting and I’ve never come across it before.” “So it was super, super useful. And I think there’s also something else that I realised in retrospect only: It wasn’t about learning something very technical that helped me; but even as a confident person, going through the process gave me a whole other layer of confidence that I didn’t know I needed, but definitely have now that I’ve done it.” Bonuses of membership Now, as a qualified accountant, Heather says it does help when talking to some clients’ funders when working on the accounts, as the client can say ‘we have qualified accountants doing their accounts so you can trust them’. “That’s because investors are more clued up about the difference between qualified and not qualified than most business owners are,” she says. “It also means we can get bigger clients and have the ability to speak with investors with confidence”. There are other benefits to joining a supervisory body, too. As a supervisor, AAT helps our accountants manage risk by checking on their anti-money laundering (AML) activities to ensure they remain compliant. Your AAT qualification can differentiate you from others. You have a toolkit others don’t have, plus your AAT membership gives you a source of information through CPD and lifelong learning that keeps your toolkit up to date. Kevin Bragg, President of AAT Continued learning journey Of course, no accountant worth their salt should ever feel like they’ve learnt all they can. Continuing professional development (CPD) is a huge part of the ongoing process, and Heather says her initial skepticism – ‘Why do I need CPD when I’m already experienced?’ – soon wore off post-qualification in large part due to the way the AAT has designed its ongoing programme. “I’ve seen that some institutes have an incredibly prescriptive CPD scheme that cost a lot of money in general, and you’ve got to get certain points – it has almost become a little cottage industry. “Whereas the AAT’s approach is very much: it’s up to you to work out what you need to keep up with and what you need to learn and what’s relevant to your world and your clients.” A flexible approach Instead of prescribing a set number of points necessary to progress, AAT-certified members keep a record of all the things they have investigated, worked on, participated in or trained on over the course of the year. Unlike some CPD schemes that can resemble a tick box exercise the AAT approach looks more like a development plan wherein members are expected to follow their own training and development needs and then explain the benefits of each. “And I think it’s really useful. For instance, for someone like me – and I think a lot of business owners are the same – you’re in constant CPD mode, always needing to find out what’s out there and what’s new to keep up to date with things.” Further progression available And that’s reflected in the fact that Heather enjoyed the experience so much, she even ended up on the AAT Council. “I had originally joined what was called the Members Assembly, which was a group of people who talked to some of the AAT executives every couple of months to get input on what it’s like to be an AAT member,” she explains. “But I got invited onto council around two years ago. A huge reason for doing that was to represent people like me. Because it is quite rare.” Looking back, Heather’s sure that the AAT route that allows a more flexible approach for those at different stages of their career is a real USP. “The fact that AAT embraces people that came at it from a different point or a roundabout route is great. It’s for all those people who are already entrepreneurs, or business owners or finance directors. For those people, there is a route and the AAT recognises it.” Key benefits to qualifying Learn about new and unexpected areas Gain confidence in your own skills Gain authority and respect Manage your risk with the help of your supervisory body Continue to develop in a useful and meaningful way Accountable AAT supports bringing unregulated accountants into membership bodies. Read about why we think it’s so important, as well as the benefits that come with qualification. Find out more
How you can leverage your professional membership Posted 10/05/2023 by Annie Makoff & filed under Members. Membership of a professional body can add an edge – here’s how to use it. Membership of a professional body doesn’t just demonstrate a level of expertise, it also provides prestige and credibility. Potential clients can see that you’re a qualified accountant operating to the highest professional standards. More than that, though, membership is about being part of a professional, knowledgeable community in which you can network, share best practice and problem-solve. Connecting with other members can offer you emotional support, especially for those who run their own businesses or operate remotely most of the time. Sharpen your tax skills Take our online masterclass to stay ahead. Find out more Plus, if you make use of the continued professional development (CPD) opportunities offered by your body, you can show clients and recruiters that you’re continually updating your industry knowledge. Those wishing to develop new skill sets can also leverage CPD to help them move into new areas. In an industry where roughly a third of accountants are unregulated, all this really matters. Despite the legal, financial and ethical implications of bad, unregulated advice, accountancy is one of the few professions in the UK which doesn’t require professional membership. This is one of the main reasons why AAT are campaigning for better sector regulation, to ensure anyone offering paid-for tax and accountancy services is properly qualified through a professional body. AAT-licensed accountants and bookkeepers are bound by rigid ethical and professional standards which gives prospective clients and customers peace of mind. We asked several members why they like being part of a professional body and how membership benefits them personally and professionally. Letters after my name demonstrate I’m operating to the highest professional and ethical standards Samantha Mitcham FMAAT, Proprietor, SJCM Accountancy The clear benefit of AAT membership is having the letters after my name which sends out the right message to any prospective clients that I’m a qualified accountant. My practice is also regulated by AAT so having the AAT logo on my email footer, website and social media reminds clients that we’re practising to the highest standards and there is ongoing monitoring. They also know I’ll have the right insurance in place and CPD is up-to-date. There is currently a large debate going on in the industry around the fact that anyone can call themselves an accountant. There are some brilliant accountants who do not hold qualifications, but from experience, clients prefer accountants they work with to be fully qualified. In terms of skills, my practicing certificates are shown in my office which shows the skills and specialisms I’ve been licensed to provide. This gives clients the confidence that I have the qualifications and expertise to guide them through their taxes and accounts. Finally, AAT members also benefit from free events and a supportive community. We get access to a lot of resources too whether it’s letter of engagement templates to AML supervision and guidance. Verdict: Having letters after my name and being an AAT-licensed practice demonstrates I’m operating to the highest professional and ethical standards. Membership highlights skills and specialisms for prospective clients Vanessa Aradia Myatt FMAAT, MD, Accounting Solutions, Director of Finance, The Honey Comb and accountancy skills coach I’ve been a member of AAT since 1994. I started my accountancy practice in 2004. When you’re self-employed, it’s important to demonstrate credibility and adherence to professional standards, and AAT membership endorses these. AAT is also globally recognised which is really helpful. Membership also provides networking opportunities – it’s important to share good practice with other like-minded industry professionals. There are lots of CPD opportunities too which help keep skills and knowledge up-to-date. The industry changes so quickly and AAT is very proactive in reporting on changes and talking about the issues that matter, such as sustainability reporting and ESG, so you’re the first to know about upcoming changes, giving accountants a chance to prepare, adapt and support their clients. AAT membership also gives you a voice in the industry and the opportunity to influence accounting standards. What’s been really helpful is the practicing certificate which lists the skills you’re licensed for. I have mine on display so clients know my areas of expertise. My certificate lists accountancy skills, bookkeeping, independent examination, forensic accounting and so on as well as tax which is broken down into further specialisms. Verdict: Membership demonstrates adherence to professional standards and CPD, gives accountants a voice in the industry and highlights areas of expertise for prospective clients. Membership fosters a real sense of community Rachel Spence MAAT, Accounts Assistant, Sweeney Miller Law I took the AAT apprenticeship route initially and progressed quickly. I’ve just completed AAT Level 4 in August. Before being granted designatory MAAT status, I completed the newly-formed AAT CPD pathway which encourages members to achieve basic CPD whilst ensuring we’re proactive on key issues affecting our day-to-day roles from sustainability and adding value in an ever-increasing digital world. AAT membership allows me to engage in continuous learning. I have access to an array of resources through the Lifelong Learning portal such as articles, videos, webinars and so on, and the AAT Knowledge Hub keeps me up-to-date on industry changes from international accounting standards to the anti-money laundering bill. But for me, the biggest benefit of AAT membership is the sense of community. Through AAT’s branch network and AAT forums, members can come together to share thoughts and ideas and stay ahead of industry news and updates, thus keeping practical and technical knowledge as relevant as possible. Verdict: AAT fosters a real sense of community through its branch networks and industry forums where members can share knowledge and expertise. Membership validates and promotes skills Bev Flanagan, MAAT, Director, Bev Flanagan Financial and AAT Elected Council Member, Trustee and Director AAT membership adds credibility to my profile, making me an appealing choice for clients who seek qualified and trustworthy accounting professionals. Membership also provides ongoing support and resources to my professional development. In essence, AAT membership is a powerful way to distinguish yourself in the competitive accounting landscape. I also see it as a valuable asset for showcasing my skills and expertise: highlighting my membership on my platforms signifies my commitment to the accounting profession. I actively engage in networking events and contribute to my professional community to demonstrate my knowledge. Verdict: Professional membership provides a platform to validate and promote skills, aiding career advancement and professional reputation. Sharpen your tax skills Take our online masterclass to stay ahead. Find out more
Network Rail’s innovative approach to creating accountancy managers of the future Posted 10/04/2023 by Marianne Curphey & filed under Apprenticeships, Employers. Jenna Hayward, Senior Accounting Services Manager at Network Rail explains why recruiting apprentices from diverse backgrounds is so valuable. “It is a good thing to be able to recruit people from different backgrounds and with different skills because it really does make a difference,” says Jenna Hayward, Senior Accounting Services Manager at Network Rail. “In our most recent intake we have taken on someone who studied dance and who has never done finance or business in school or college. She’s settling in really well; she is engaged, great at communication and really outgoing. That is a real asset in our team.” Why does Network Rail hire apprentices? Network Rail owns and manages most of the railway network in Great Britain, including some of the biggest railway stations in the country. It is one of Britain’s biggest employers and has 42,000 staff across England, Scotland and Wales. The finance department is 500 strong and is a central function within Network Rail and does a lot of transactional activity on behalf of the rest of the business. “Getting people with the right behaviours and values far exceeds the academic ability because we can teach them how to do the job,” says Kathryn Hurst, Financial Controller at Network Rail. “When an apprentice comes in with the right attitude, knows how to speak to customers and is willing to learn and they take pride in their work, that is 80% of the job. Having people like that on the team really helps to drive great outcomes.” How AAT apprentices solved the talent pipeline shortage Six years ago, Network Rail identified that the flow of new accountants coming into the finance department via accounts payable and accounts receivable was starting to dry up. This was because the service centre had changed the approach to recruitment and was taking on more data input clerks rather than trainee accounts. “We used to have a pipeline of people which is where Jenna and I came from,” Kathryn explains. “When that stopped, we identified that we needed to do something different about our recruitment strategy. We decided to launch and apprenticeship programme. This is the fifth intake and it has been so successful that we have increased our programme from three to four apprentices annually. Those people whom we first recruited are now in management accounting roles, managing their own teams. There is a lot of scope for career progression.” She says the strategy has been successful because of the new digital skills that the apprentices bring, their enthusiasm to work and learn, and the great grounding that the AAT Level 3 and 4 qualifications provide. This forward-thinking approach to nurturing talent means that when the new accountants have qualified they can be moved on to more senior roles within the organisation. How are the AAT Apprenticeships implemented? Network Rail uses The Apprentice Academy, an external company, to advertise the apprenticeships, source candidates and manage the training. The successful apprentices will have a half a day a week in college, and are supported in professional and personal development, coaching and workplace skills. While most come from schools and colleges after A levels, the scheme is also open to career changers and mature students. Ensuring accountants are real world ready “The AAT foundation training gives them a great grounding in the knowledge and skills they need in their day to day work,” Jenna says. “If they want to continue their studies, then we do offer them CIMA or ACCA. As we are a transactional team, we naturally have a high turnover of staff as people at the more junior level start to progress and find new opportunities. When vacancies do come along we already have people who have both the technical knowledge and the soft skills as well. That means they can go straight into a role that involves engaging with customers, building relationships and taking ownership of the work.” Apprentices are given more responsibility and are encouraged to look at processes and identify improvements which could have a direct impact on the productivity and efficiency of the organisation. What is the experience for apprentices? The structured training programme has proved extremely popular and feedback from current and former apprentices is extremely positive: “Overall, the apprenticeship has been the best decision I could have made. It was very important for me to get real life experience so I could progress in my career, this was definitely achieved and Network Rail and The Apprentice Academy are super supportive! The development opportunities are amazing and every apprentice is a valued employee, everyone from previous years’ intakes progressed into roles higher up. It’s definitely a great path to choose if you don’t feel like uni is right for what you want to achieve”. “It was helpful seeing how apprentices in the years above me progressed so I could see a path to how I could in the future too. I felt like I learnt a lot during it which helped set me up to study CIMA now and move into different roles throughout Network Rail. It has been a great way to continue gaining qualifications whilst getting real world experience in a role to develop soft skills which allowed me to progress up through Network Rail”. Progression and staff retention The apprenticeship programme has been successful at creating young enthusiastic staff who understand the culture of the organisation and who want to stay to pursue opportunities within Network Rail. “At the end of the training programme we have well-rounded assistant accountants who are ready to take on more senior roles,” says Kathryn. “They stay with us because there is a lot to learn and they have the opportunity to work within different teams and specialisms. In return, we have the continuity and talent pipeline which is so vital to the success of the organisation.”
Read our Anti-money laundering annual report 2022-23 Posted 10/02/2023 by AAT Comment & filed under Anti-money laundering, Anti-money laundering, Members. Our latest Anti-money laundering annual report is out now. Please read our latest Anti-money laundering annual report for an overview of our anti-money laundering supervisory activities for the year. It includes a summary of our practice assurance review activity, the outcomes of those reviews and enforcement action taken. This report also summarises our supervisory approach, our most common anti-money laundering (AML) findings, emerging AML threats and how we effectively share intelligence. We hope you find it useful in considering your own firm’s AML compliance. We encourage you to share it with your colleagues and staff.
Why now is the perfect time to train as an accountant Posted 10/02/2023 by Jessica Bown & filed under Career. All companies need accountants and finance professionals, so there are always lots of opportunities available to people with AAT qualifications. But choosing the right opportunities is not always easy, particularly at the start of your career in finance. Here, new AAT President Kevin Bragg shares the wisdom he has built up over years in the industry, working as everything from a commercial apprentice to an executive director. “We know our people are in demand,” Bragg says. “The world is getting more complex, and that’s not going to change. “HMRC keeps making changes to try to circumvent accountants working in practice for small businesses, but the tradespeople in the self-assessment system don’t see it that way. “And at a company level, accountants are needed for everything from compliance to costing. “That’s one reason for the well-publicised shortage of accountants already causing problems in the USA, where employers are struggling to find both accountants and auditors.” The key skills students need to succeed in accounting today Anyone who has completed an AAT qualification will have a level of technical ability to bring to the workplace. But while technical skills, and the reassurance these qualifications offer employers, are crucial when you are job seeking, companies today are also looking for “real-world ready” candidates with complementary non-technical skills that will allow them to make a more valuable contribution. “It’s vital to know how to present yourself and how to present information to colleagues and clients,” Kevin says. “For those re-training with AAT, it’s also important to understand the value of the transferrable skills you gained during your previous career and how you can put them to good use.” How AAT membership adds to your value as an accountant AAT training is widely recognised as a stepping stone to success in the working world. But your studies are just the beginning of your AAT journey. “AAT training allows you to command a higher salary and gives you the tool kit you need to succeed as a finance professional,” Kevin says. “But when it comes to employability, it’s important to be able to differentiate yourself from others. “And I would strongly argue that being able to demonstrate you are a member of a professional association will differentiate you from the other candidates up for a job. “Continuing your AAT membership also opens doors throughout your career, as well as providing a window to a world of information and opportunities to stay on top of your CPD.” The importance of CPD and “lifelong learning” Employability is key at all stages of your career; you never know when you will be offered a new opportunity or feel the need to move on to a new challenge. “From a career perspective, I think people should move around during their working lives,” Kevin says. “It will depend on the organisation you are working for, but if you get bored, you will lose motivation. “So never be afraid to go back out into the marketplace and see what’s available.” The AAT’s focus on CPD means that membership makes it easier to maintain a professional edge, and therefore remain highly employable throughout your working life. “The opportunity to find a mentor through the local branch network can also be really beneficial when it comes to managing your career progression,” Kevin adds. How to remain relevant in the age of AI The increasing use of AI in business looks set to change the role of accountants over the next five to 10 years. But there’s no need to see this as a negative thing. “AI will be part of a new productivity drive,” Kevin says. “Those who can adapt to these changes will find lots of new opportunities. “As businesses start using AI for more in-depth analysis of whether a campaign worked or not, for example, they will need more finance professionals, especially those with database management skills.” Advice for students looking to secure their first role as an accountant When recruiting accountants, employers will always be looking for someone with the right qualifications and experience to benefit the company. So even if you’re entering the finance job market for the first time, be sure to emphasise your real-life work experience in different sectors, as well as any transferrable skills you have as a result. “Within industry, the actual accounting methods used can vary a lot between different sectors, which could come as a bit of a culture shock to someone who has spent all their time training in an academic environment,” Kevin says. It’s also important to know your own worth and not feel you must go for the first job you are offered. “When applying for a job, you should always research the employer you are considering working for,” Kevin adds. “Knowing who they are and what they do will be very helpful in your interview. “And you might even find out this way that they are not the sort of company where you want to work. “It’s important to be clear about what you are going to get out of it too.” Further reading AAT’s Lifelong learning portal: the interactive resource to help you get ahead High demand for accountancy qualifications in 2023 Kick-start your accountancy career by studying AAT online