Agents critical of HMRC Posted 09/21/2023 by AAT Comment & filed under Members. The vast majority of accountants are dissatisfied with the level of service HMRC provides, particularly its dedicated agents helpline, with reliability and speed of response criticised. Research conducted on behalf of HMRC has revealed a general dissatisfaction with the department’s efficiency and effectiveness among accountants and tax agents. According to the survey conducted by Kantar, only one in five accountants are satisfied with HMRC, leaving 81% of accountants less than happy with the performance of the tax authority. The level of satisfaction with HMRC is in decline with 38% of accountants criticising the standard of service on the agent-dedicated line (ADL). Reflecting the drop in service standards since the pandemic struck, the same research in 2019 showed that 61% of agents were satisfied with HMRC’s service. Adam Harper, AAT’s director of professional standards and policy, said: “Customer services are going in the wrong direction. This is causing genuine harm to businesses as well as wider UK productivity. AAT’s members have repeatedly expressed their frustration of facing severe delays with HMRC, even with simple tasks like VAT registration.”
How accountants are helping small businesses with growth plans Posted 09/21/2023 by Annie Makoff & filed under Members, Run your business. New research reveals nearly three-quarters of UK businesses are starting to make long-term growth plans. Here’s how accountants are helping them. Many UK businesses have been focused on staying afloat through the pandemic and cost-of-living crisis, but some are now taking a medium-to-long-term view. According to Novuna Business Finance, 71% of SMEs are working on ‘specific growth strategies’ for the future, compared with 65% in the first three months of 2021. Finance and accounting, along with construction, agriculture, manufacturing and IT/telecoms are among the sectors experiencing a rise in the number of firms making future plans. Although there appears to be less optimism around short-term growth, there is an overall increase in businesses looking ahead to the next twelve months and beyond, the research found. In general, growth plans set out clear goals, targets and KPIs for the future of a business, along with specific strategies and plans on how to reach these goals. As the name suggests, these plans focus primarily on growth opportunities such as increasing sales and/or adding new product or service lines, recruitment drives, opportunities to diversify or expanding overseas. A growth plan generally includes: Growth opportunities (overseas expansion, opening new sites, targeting new markets, mergers & acquisitions). Identification of KPIs (sales growth rate, net profit margin, market share) Staff/expertise (recruitment strategies, training and development, upskilling) Marketing strategies (allocating budget and resources, identifying potential advertisement opportunities and tapping into new markets) Financial condition (looking at company performance including cashflow review, assets and liabilities). Timeframe (agreeing on a specific timeframe for growth plans for the next one to two years). We asked accountants how they’re helping their clients with growth plans, and whether they’re noticing cautious optimism among small business owners. We support client growth from forecasting to data analysis to marketing support Zahid Mustafa, Erdingsworth Business and Tax Advisors We help clients formulate a growth strategy by producing cash flow forecasts as well as profit & loss and balance sheet forecasts. This helps identify opportunities and threats in the future. These documents can also help to back up the client’s application for finance to fund the growth. Financial information is vital for a business looking to grow and we can prepare management accounts to monitor progress. We also help with analysing financial information to identify any inefficiencies that need to be eliminated. We have a network of professional connections that may be able to offer funding for growth. Also, some of our connections can help with marketing the business to bring in more customers and retain them. The process of growth obviously would take a lot of the business owners’ time and effort. However, the business will still have deadlines to keep to (such as getting the tax returns filed). As accountants, we can step in and take this over entirely to ensure the business does not miss such deadlines leaving the owners to concentrate on the importance of growing. Verdict: We help clients formulate growth plans by producing forecasting, analysising financial information and providing access to sales and marketing specialists. Growth plans help keep stakeholders onside as clients take advantage of growth opportunities Vipul Sheth, chartered accountant and MD, AdvanceTrack Outsourcing As accountancy outsourcing specialists, we work with many accounting firms with a growth mindset. None of our clients are slowing down, which reflects the fact that their clients (typically SMEs) are growing revenues and profits. The main things holding many businesses back are the lack of skilled staff and Brexit-related challenges. Additional administration needed to access EU markets for example is making it difficult for smaller businesses, many of whom have decided it’s no longer worth serving these markets. If these were solved, the growth would be higher. Accountants play a key role in helping clients with growth plans. Clients typically encounter problems at the stage when they’re coming out of growth and have a lack of capital to support the growth. Post-Covid, many businesses have stretched finances with Bounce Back Loans, deferred taxes, etc and now need to finance additional working capital to deliver growth in their business plans. The role of the accountant in helping them navigate these challenges is incredibly important in keeping lenders and stakeholders, including staff and customers, onside as they take advantage of the opportunities presented in the marketplace. Verdict: Our clients have a growth mindset and rely on us to support them with growth plans to help increase working capital.
High demand for accountancy qualifications in 2023 Posted 09/20/2023 by Hannah Dolan & filed under Career, Students. As the cost of living crisis continues, we dip in and out of double-digit inflation and have a possible recession looming; it’s understandable that many people are feeling nervous about their jobs and salaries. But amongst all this uncertainty, career prospects are still looking strong for those with accountancy qualifications. Accountancy – a recession-proof career path Accountancy and finance roles have a reputation for being recession-proof career choices. This seems to be holding up in 2023, with the statistics showing a positive outlook for those in the finance sector, certainly according to two of the top recruiters in the accountancy and finance market – Wade Macdonald and Hays, who both predict that even if a recession does come in the next six months, the demand for finance professionals won’t wane. “There’s not much evidence pointing to widespread redundancies across the accountancy and finance sector,” says Chris Goulding, Managing Director at specialist recruiter Wade Macdonald. Lorraine Twist, a Director at Hay, says, “According to our data, more than half (53%) of finance professionals are looking to move jobs in the next 12 months,” meaning there are still lots of opportunities out there. And although automation is replacing many pure data-entry roles, there is still plenty of demand out there for human intelligence, “it’s all very well having large volumes of data – but without people to interpret and analyse its implications and provide it with a business context, it doesn’t have much of a point,” Goulding says. The most sought-after skills in finance and accounting Hays recruitment specialists have published the 2023 Salary & Recruiting Trends Guide, which shows that 90% of finance employers experienced a skills shortage (which contributes to an increase in salaries), with 63% predicting competition for talent with other employers. The skills most in demand within accountancy and finance include: Communication and interpersonal skills (63%) The ability to adopt change (52%) The ability to learn continuously (47%) Coordinating with others (40%) Hays also found that 70% of finance employers would consider hiring someone who doesn’t have the full suite of desirable skills with the aim of upskilling them. The top finance and accounting roles with salary increases Hays’s research also shows that 89% of organisations anticipate increasing salaries for finance functions, and 62% of those in charge of recruiting accountancy professionals intend on hiring staff in the year ahead (both higher figures than last year). Hays says that the top ten roles with salary increases in accountancy and finance are: Financial director Finance manager Financial planning and analysis manager Newly/recently qualified accountant (0-2 years post-qualified experience) Accountant (2-4 years post-qualified experience) Credit manager Accounts payable assistant Treasury analyst Financial controller Senior credit controller Chris Goulding agrees, saying, “Many areas of finance have experienced exponential surges in salaries. For example, in the transactional finance market, salaries have increased hugely over the past 12 months – with 50% of people in this area moving roles for more than 15% increases. As a result, the starting salary for those moving for the first time since qualifying has never been higher. At times, we are seeing people change jobs for salary increases of more than 25%.” Goulding adds, “Many companies are ahead of the curve and combating rising costs with pay rises. Those that haven’t should at least review salaries to ensure that they are up to scratch. We found that 48% of people who’ve moved jobs have received at least a 15% pay rise. Money talks.” Traditional university study continues to decline in favour of other qualifications and apprenticeships It’s little wonder, with demand remaining high for roles like accountancy and the cost of university study being so high, that traditional university study continues to decline in favour of other qualifications and apprenticeships like AAT. The Spectator says that a traditional degree certificate now costs a student around £28,000 plus costs of living away from home, but a degree apprenticeship is essentially free, with the Government paying around two-thirds and the employer covering the rest. In addition, many skills needed in the workplace are not those often given importance while studying for a conventional university degree. In its article ‘The decline of university study is no bad thing’, The Spectator says, “As for many degrees, there is little reason to think them best gained by the means traditionally used by universities. What is needed, in other words, is not so many graduates with degree certificates as people with knowledge, familiarity and hands-on expertise.” Further reading: How to prepare for the economic volatility ahead Accountants predict the main challenges they’ll face and the tools they’ll need to survive in 2023 Social media mistakes that are costing you the job
How to stay afloat in business Posted 09/20/2023 by AAT Comment & filed under Members, Run your business. With Thames Water drowning in debt, what lessons can be learned? Approximately a quarter of the UK population relies on Thames Water for their water supply. However, the company’s future is uncertain due to a series of operational challenges and an overwhelming debt burden. Don’t dig too deep into debt The debt troubles began when Thames Water was privatised in 1989, with a significant portion of the debt accumulated during its 11-year ownership by the Australian investment bank, Macquarie. By the time Macquarie sold the company in 2017, the debt had reached £10 billion. With high interest rates in the past year, the debt quickly hit £14 billion. The financial situation is particularly critical as about 10% (£1.4 billion) of the debt is set to mature at the end of this year as a bond comes due. Avoid poor performance and resultant fines These financial headaches come at a time when the entire industry is facing criticism for performance issues such as sewage dumping, water leaks, hosepipe bans and large payouts to investors and executives, with Thames Water being among the worst offenders. The company was fined £4 million in 2021 for allowing untreated sewage to escape into a river and park. In the same year, it was ordered to pay £11 million for overcharging thousands of customers. In 2017, Thames Water received a record £20.3 million fine for repeated instances of raw sewage flowing into the Thames, just one year after being fined £1 million for a single pollution incident. Earlier this year, Sarah Bentley, the former chief executive of Thames Water, stepped down after less than three years. Her departure came shortly after it was revealed that she would receive pay and perks amounting to £1.6m for the year, nearly double her annual salary. In May, she waived her bonus due to the ongoing issues with sewage outflows and leaky pipes. Maintain sensible capital expenditure Given the increasing costs of fines and debts, Thames Water’s capital expenditure has suffered, prompting the company to seek additional funds. It disclosed that it is collaborating with shareholders to secure the necessary funds, approximately £1bn, as reported. To date, the company has already received £500m from shareholders, with its largest shareholder being the Ontario Municipal Employees Retirement System, a Canadian pension fund. Other shareholders include China’s sovereign wealth fund and the Universities Superannuation Scheme, the UK’s second-largest private pension fund. The government has confirmed it has “contingency plans” in case Thames Water fails to repay its debts, which could involve temporary public ownership. A crucial lesson here is the importance of capital expenditure in maintaining and upgrading vital infrastructure and equipment for the smooth functioning of a business. Neglecting such investments is a false economy and can lead to spiralling costs. Do what an AAT member would do Ensure that plant, machinery and other vital infrastructure maintenance is adequately funded to prevent bigger costs later on. Avoid taking on too much debt, which can restrict businesses’ ability to invest.
Brilliant ways employers can collaborate with schools Posted 09/19/2023 by Christian Koch & filed under Apprenticeships, Employer newsletter. Working with schools is a rewarding way to boost your company’s talent pool and reputation. Here are some smart ideas to help. The advent of apprenticeships has helped reframe the way many employers look at school leavers and the value they can bring to their organisations. Due to these schemes’ success, many organisations have now started reaching out to local schools to recruit and engage young talent through programmes such as careers fairs, insight weeks, digital mentoring and internships. But what do schools get out of this arrangement? And how can your organisation set up a similar scheme? Here, we hear about some different schemes and the benefits they offer. Try the sixth-form AAT qualification text to follow Run a ‘virtual insight’ event and digital mentoring platform Expert: Rob Worrall, Head of People, BDO. What is it? Every year, leading accountancy firm BDO hosts its ‘Explore BDO Virtual Insight Programme’, a three-day scheme giving young people in Years 10-12 (age 14-17 years old) from less privileged backgrounds a taste of what a career at BDO could look like. Students need to apply and take a small test first, but once they pass, they’ll spend the three days attending online workshops and receiving tuition on developing work experience and skills for their CV. Meanwhile, BDO Hive is a digital networking platform published on the firm’s Connect channel whereby students of all ages can develop their communication skills and learn more about BDO by connecting with the company’s employees. The students can also access resources and learning modules on wellbeing, exam stress and employability skills. 1. It’s a potential source of new talent “Working with school-leavers allows us to access talented individuals [who have] a fresh set of skills, ideas and perspectives,” says Rob Worrall, head of people at BDO. He also points out that some students who participated in the firm’s Explore BDO Programmes have since joined the company as school-leaver trainees. 2. It can boost diversity and social mobility “Tapping into a pool of school-leavers means accessing people from a more diverse set of backgrounds who have had different experiences and [therefore] bring to BDO different perspectives, ideas and attitudes,” says Worrall. “Meanwhile, our annual Explore BDO Virtual Insight Programme supports our ambition to improve social mobility in the profession.” 3. It can attract pupils to your apprenticeship scheme “We see it as our collective responsibility to highlight opportunities beyond a university degree or graduate programme,” says Worrall. “[School programmes] raise awareness of our apprenticeship programmes… It’s important to build relationships with schools so students can take advantage of our knowledge and expertise, making an informed choice for their future.” “Early engagement is crucial,” adds Worrall, noting that it’s equally as important to inform 14 and 15-year-olds about apprenticeships as sixth-form students. Benefits of a digital mentoring programme The vocational learning pupils receive through programmes such as those offered by BDO may make them more confident. “There’s no doubt the pandemic and its social economic impact has taken a toll on some young people,” says Worrall, who notes “the additional learning and development opportunities around personal brand” can help school-leavers become more workplace-ready. Speaking with BDO employees may also help develop pupils’ personal self-belief. “These programmes are just as much about being proud of your personality and background as it is BDO positioning ourselves as an employer-of-choice to those students,” says Worrall. “[Such schemes] give them the opportunity to ask questions to real people who may have had similar experiences.” How to organise similar programmes at your organisation BDO has a partnership with social mobility charity Teach First (teachfirst.org.uk), which has access to 1,800 schools across the UK, allowing the firm to reach diverse talent in areas where there may be less awareness of jobs in professional services. “It’s important to enlist the support of your current employees who can provide real-time authentic engagement to students on school-leaver programmes,” says Worrall. “This gives students a better understanding of where their careers could take them next and gives them an opportunity to ask questions and explore their options.” Take a modern approach to internships Expert: Denise Masih, ITG Training and Development Partner, What is it? In 2022, the Inspired Thinking Group (ITG) – a marketing agency with offices in Birmingham, London and Tamworth – set up its ‘Work Experience Week’, an innovative new programme which sees Year 12 students (age: 16-17) join the company for work experience over the course of one week in different departments. This year, 23 young people joined the firm for five days, including two days (Monday-Tuesday) visiting the company for office tours and workshops, plus another two days working from home on a project, which they then presented to senior leaders on Friday. Denise Masih, ITG’s Training and Development Partner, explains more… 4 benefits of hosting a ‘work experience week’ 1. It opens the door to new talent Masih: “Last year, one student who attended Work Experience Week enjoyed it so much he applied for ITG’s ‘Circuit’ scheme, where he’ll spend a year working in different parts of the business, hopefully finding a permanent role he likes. We’ve also had other young people join us, who discovered our firm thanks to the scheme. We wouldn’t be able to do that if we didn’t offer this kind of scheme. If any of the other students want to join us afterwards, we’d be delighted if they applied.” 2. Students come out of their shell Masih: “When a Year 12 student interns at an unfamiliar business, it can be daunting. Many organisations report on the struggles they have communicating with this generation. But with a ‘Work Experience Week’, these students are experiencing the workplace with 20 or so of their friends/fellow pupils, so there’s none of that awkwardness: they hit the ground running straight away.” 3. It helps businesses understand younger employees Masih: “Businesses can get a real insight into future generations, plus how they think and use technology and social media. Whenever we’re putting together a campaign to reach younger generations, we can draw upon our learnings from Work Experience Week. 4. It can upskill existing staff Masih: “Organising something like Work Experience Week takes a lot of logistical planning, everything from giving them interactive tasks to making sure they’re fed during the week (lunches!). At ITG, we put many of our young people on this, who gained organisational and even management skills they wouldn’t have done otherwise.” What do schools get from a Work Experience Week? “Events such as Work Experience Week give schools much more than some internships, which see pupils sitting on desks with nothing to do,” explains Masih. “Work Experience Week helps educate young people about how organisations such as the ITG Group work. Over five days, students encounter different departments such as finance, HR and customer service, which may give them an idea about what sector they’d like to work in. It also helps schools connect with businesses in the local community: useful for events such as careers fairs.” How to organise a Work Experience Week at your firm ITG organised Work Experience Week through the Unifrog platform (unifrog.org), which includes all the legal requirements and digitally-signed forms, plus ensures any staff interacting with the students are checked by the Disclosure and Barring Service (DBS). “There’s not a huge amount of admin, and you certainly won’t need to pay the school, but do touch base with the school beforehand to see if there’s anything you need to be aware of as an employer,” says Masih. “They may tell you to spend more time with a particular student or whether a person has accessibility or dietary needs. Also, forward-planning is essential: we started organising Work Experience Week four months before it happened.” “You won’t need to accommodate 23 students for a week! But if you can take more than one student – perhaps three – that would be great,” says Masih. “Remember: most schools will be open to internship schemes such as this. If any business rang a school and said, ‘We’d like to offer students some work experience places’, chances are, they’d be very grateful.”
AAT AGM 2023 round-up Posted 09/19/2023 by AAT Comment & filed under AAT Governance, AAT news, Members. Find out what your votes achieved. AAT’s annual general meeting (AGM) happened in our office on Friday 15 September. The packed agenda included the presidential handover, announcing the winners of the Council nominations, the Past Presidents’ Award and an overview of our annual report. Council nominee results were announced Rita Patel and Francesca Tricarico were both re-elected for a three-year term, Sharon Burrows and Beverley Flanagan were newly elected with three-year terms and Wayne Cook was elected and will re-join Council for a one-year term. Congratulations to each of them, and thank you to everyone who ran. Please keep submitting your applications in future rounds! Annual report overview was presented AAT introduced two significant developments in 2022-2023 with the new Qualifications 22 and Progression Pathways for members. Their impact can be seen in our performance compared to the previous year 2021-22. Professional and affiliate membership grew to its highest level since 2018-2019, with strong retention and new member performance. Customer satisfaction has dipped slightly but, for the eighth consecutive year, still exceeded our organisational target of 80, and remained above the all-sector industry average of 77.7. Looking ahead, the 2030 strategy is ambitious and gives us a blueprint to keep our profession relevant, drive up professional standards and build responsible business. The strategies that underpin these goals will ensure the interests of our students and members – our core communities – are at the heart of everything we do. We said farewell to our previous President Christina Earls wrapped up an eventful year. “I look back on this last 12 years of activity, and particularly as President, full of immense pride and admiration, representing our AAT members and students, who are the soul of this organisation, and reaching out to those who would like to develop a career in accounting whatever their characteristics or background. “Thank you all for providing me with the opportunity, the honour and privilege of being your President.” And welcomed our new one A warm welcome to our new President, Kevin Bragg. “The theme for my time as President is employability. AAT is about accountants for the real world. That means upskilling our members to take on new opportunities and preparing accountants of the future for their workplace. AAT is committed to equipping our students and members with the practical skills to succeed and thrive in any workplace of today and tomorrow. “I am looking forward to connecting with as many of the AAT community as possible over the coming year. I know I will meet so many inspiring people and already I can feel that we’re going to make great strides towards our goals outlined in our 2030 strategic plan”. Past Presidents’ Award was given One of Christina’s final tasks was to recognise the winner of the Past Presidents’ Award, Gemma Heard. Gemma says, “AAT has been with me through my whole career as an accountant, and the qualification has been genuinely life-changing and given me so many opportunities. I am proud to be part of AAT and winning this award is the pinnacle of my career.” Thank you for participating Your contributions, be they nominating yourself for Council, voting for others, weighing in on important topics or turning up to the AGM, help us to understand and represent members’ needs better.
“After I lost my parents, AAT helped turn my life around” Posted 09/19/2023 by Christian Koch & filed under Inspiring stories, Members. Losing his mum to cancer as a teenager and his dad to Covid last year, Joshua Wilson MAAT AATQB has suffered many cruel blows. Yet, he never let these setbacks get in the way of his career. On a Friday afternoon in February, Joshua Wilson sat down in his Bath living room, opened his laptop and watched AAT’s first-ever Impact Awards. The 26-year-old had been nominated for the Triumph award by his partner, Jasmine, for continuing his AAT studies while his personal life unravelled around him. When the announcement came that Joshua had won, he’s not ashamed to admit things got emotional. The previous year hadn’t been easy. His beloved dad – an accountant who ran his own practice – had passed away from Covid. The months that followed saw Joshua (who’d already lost his mother to cancer as a 13-year-old) plunged into an unenviable situation: tying up his father’s affairs while also finding a new home for himself and younger brother Ben. Discover the next step on your journey AAT students can hear directly from employers showcasing their apprenticeship opportunities at our free webinar. Register now Despite these challenges, Joshua carried on studying AAT, even sitting his exam while his father was in hospital. In what must have been a bittersweet moment, Joshua was notified that he’d passed AAT Level 4 just four days after his dad passed away. “I put emotional barriers up” “Sadly, my dad wasn’t there to see me become a qualified accountant,” says Joshua. “He was so supportive of me doing AAT, possibly because he was ‘qualified by experience’ without sitting professional exams. We always joked I’d end up more qualified than him.” When Joshua’s father tested positive for Covid in November 2021, Joshua didn’t think much of it. After all, he’d seen plenty of people recover quickly from Covid, himself included. Yet within a fortnight, his dad’s symptoms worsened, forcing Joshua to call for an ambulance. “That’s when I knew it was serious,” he says. At first, Joshua would smuggle Chinese takeaways into the ward for his dad. But over Christmas, his father was moved to an ICU unit, with visitors needing to wear protective clothing that “made us look like something from Monsters, Inc.”. Things deteriorated quickly. In early January, Joshua’s dad was put into an induced coma, before sadly passing away later that month, aged 54. Throughout this bleak period, Joshua studied for and sat his Level 4 exam. He also achieved his qualifications through self-studying and distance learning. “All I had was a textbook, the AAT’s interactive learning portal and that was it,” he recalls. “To be brutally honest, I woke up every morning and just got on with it,” he adds. He credits losing his mother to breast cancer – which swiftly metastasised to her brain and lungs – when he was a teenager as giving him coping strategies which helped deal with the anguish of his dad’s death. “Losing my mum meant it was easier to put emotional ‘barriers’ in to control it [the grief],” he says. “I had to learn how to grow up for myself.” Joshua dealt with his mum’s death in a very different way. “My inner demon came out,” he recalls. “I’d lash out, get arrested and eventually I was chucked out of school. I left with just two GCSEs. I felt I’d thrown my life away.” Joshua believes the trauma of losing his mother may have triggered his borderline personality disorder (BPD), where symptoms include paranoia, anger, emotional instability and reckless behaviour (the NHS says “most people [with BPD] will have experienced some kind of trauma or neglect as children”). He also believes BPD could be responsible for him struggling with exams. Back then, Joshua never wanted to be an accountant. What he really wanted to do was join the Royal Marines. He passed aptitude tests, could run 1.5 miles in under seven minutes, but failed the medical due to a hereditary blood-clotting disorder, quashing his ambitions. After “bouncing around” in retail jobs at Tesco and Screwfix, he started studying AAT, with the aim of following in his father’s footsteps. He started work at his dad’s practice, which didn’t go to plan. “That wasn’t fun!” says Joshua. “Every time I’d pick up my mobile, my dad would say, ‘You’re always on your phone!’ We were always clashing.” Making a future Joshua left and found a job at French utility group Veolia, while studying Level 3. “I probably could have eventually worked my way up and ran my dad’s practice,” says Joshua. “But to me, there’s no sense of achievement in doing that. I’d rather make my future than piggyback from my dad.” His financial training helped when Joshua was forced to deal with the torrent of admin and bureaucracy following his dad’s death. Joshua set up a GoFundMe page, which helped raise £9,000 for funeral costs, while he also handled the tricky probate, life insurance payouts, pensions, plus settled unpaid bills. “When somebody dies, there’s a lot more work than many people think,” says Joshua. “I’m lucky I’ve got my AAT skills.” The hardships didn’t end there. Because Joshua and Ben could no longer afford to live at their father’s former house, they needed to find a new home too. One of the most remarkable parts of Joshua’s story is that he’s endured these difficulties while living with attention deficit hyperactivity disorder (ADHD) and BPD. Joshua was diagnosed with ADHD as a four-year-old and today, it’s most evident in his restless nature. “If you met me, you’d see I’m very fidgety,” he says. The BPD is more difficult to navigate. “I go through mood swings and anger issues: it has a massive impact on my relationships and friendships,” he says. “Now I know when my BPD is about to flare up, which is usually once a week, so I’ll either talk to somebody such as a counsellor, go for a walk, do some studying or hit the gym.” None of this affects his day job as assistant management accountant where he particularly enjoys Veolia’s work developing solutions to tackle the climate crisis, such as helping hospitals become more energy-efficient, or firms which transform wastewater into clean drinking water. He’s also studying ACCA and will sit his corporate and business law exam in August, which should put him on the path to realise his ambition of working as a forensic accountant. “Both of my parents would be extremely proud,” says Joshua. “They’d be so pleased to see I’ve managed to turn my life around and make something myself.” Discover the next step on your journey AAT students can hear directly from employers showcasing their apprenticeship opportunities at our free webinar. Register now
How to transition from AQ2016 and register on Q2022 Posted 09/18/2023 by Hannah Dolan & filed under Q22. Here we answer your top questions about how to transition from AQ2016 and register on Q2022. 1. What is the deadline for sitting assessments on the AQ2016 syllabus? The deadline for sitting assessments on the AQ2016 syllabus is 30 September 2023, students will not be able to sit any assessments after this date. 2. If I have already taken an assessment before the syllabus closes, when can I expect to receive my results? All results will be released as per the usual marking timetable associated with each particular assessment. This includes externally marked assessments that take up to six weeks to mark. Full details on when to expect your results can be found on our assessment results page. 3. Can I sit assessments on the AQ2016 syllabus after 30 September 2023 and will there be an opportunity for an extension? No. Students will not be able to sit any AQ2016 assessments after the 30 September 2023 deadline. 4. Will all the units I have studied under the AQ2016 syllabus transfer to the new Q2022 syllabus? If you’re studying an AQ2016 qualification and register onto the Q2022 equivalent qualification, then your units may transfer provided they meet the transitional arrangement requirements found on our guide. No AAT achievements prior to AQ2016 (AQ2010, AQ2013 NVQ) will carry over to Q2022. 5. How do I register on the Q2022 qualifications? Visit the ‘Register with us’ page and add the new qualification to your basket, pay the one-off registration fee and complete the checkout. If you’re eligible to pay the reduced registration fee rather than the standard registration fee, it’ll update automatically at the payment stage. Please note you must be logged in to your MyAAT account to complete the transaction. 6. Is there a fee for the Q2022 qualifications, and how long will I have access to membership and assessments? Yes, you will need to pay a one-off registration fee for the Q2022 qualification you would like to register for. There are no yearly membership fees on the new Q2022 syllabus, your registration will not lapse. Instead, you will have access to the registered qualification for its lifetime (typically four to five years). Unlike AQ2016 each level under Q2022 needs to be registered and paid for individually, if studying more than one qualification or moving to the next level. 7. Which AQ2016 completed units will transfer to Q2022? You can find guidance and the requirements for transfer on our transitional arrangements guide. All eligible units will automatically transfer when the Q2022 qualification registration has been successfully completed. 8. Do I need to renew my AQ2016 registration? You do not need to renew your AQ2016 registration as the syllabus is coming to an end on 30 September 2023. Any outstanding assessments after this date will need to be completed under the Q2022 syllabus. 9. Who is responsible for paying the registration fees, the training provider or the student? If your training provider has confirmed they’ll be covering your AAT registration fees, then they will need to provide you with a payment code to use during the payment process of your qualification registration. If your training provider has confirmed that they will not be covering your fees, payment must be covered by the student or someone else paying on behalf of the student. 10. When is the deadline to register on Q2022 qualifications? There is no deadline to register for Q2022 qualifications. 11. What fees will I pay for Q2022 qualifications? All fees for the Q2022 qualifications can be found on the AAT Website. There will be a reduced fee for students on AQ2016 registering onto a Q2022 qualification up until 31 January 2024. If you’re eligible to pay the reduced registration fee rather than the standard registration fee, it’ll update automatically at the payment stage. Please note you must be logged in to your MyAAT account to complete the transaction. 12. What is the reduced registration fee, am I eligible? If you have an active AQ2016 subscription, and have sat at least one assessment then you can register onto the Q2022 equivalent level at a reduced cost. If you’re eligible to pay the reduced registration fee rather than the standard registration fee, it’ll update automatically at the payment stage. Please note you must be logged in to your MyAAT account to complete the transaction. 13. Do I need to call you to transfer my AQ2016 completed units to Q2022? No. Provided you meet the requirements stated in our guide, all eligible units will automatically transfer when the Q2022 qualification registration has been successfully completed. 14. Will my exemptions transfer to Q2022? Exemptions awarded on AQ2016 will transfer over to Q2022 as per the transitional arrangements, the grade will be capped at 70%. 15. What is the Q2022 membership fee? There is no membership fee for Q2022. Instead you will need to register and pay for the individual qualifications you would like access to. See our qualifications. 16. Why are the fees so high? Can I pay my Q2022 registration by Direct Debit/instalments? Rather than paying yearly to keep access to the qualification, registering onto a Q2022 qualification gives you access to the qualification for its lifetime (typically four to five years). Prices have been adjusted to reflect the new fee structure. It is not possible to pay your Q2022 registration fees via direct debit/instalments. 17. Is there a separate fee for each level? Yes. Under Q2022, each level is considered its own qualification and has its own individual one-off registration fee. 18. How long will I have access to the Q2022 qualifications? For the qualification lifetime, which is typically four to five years. 19. Why am I not seeing my Q2022 registration? A new registration can take up to 24 hours from purchase to reflect on your MyAAT account. If this is not the case after 24 hours, please contact our AAT customer Support Team with any queries. 20. Why can my TP not book my Q2022 assessment? Please check that you have registered for the correct Q2022 qualification on your MyAAT account. Please also allow up to 24 hours for your registration to update on all AAT systems. Once successfully registered, you can contact your training provider to schedule assessment under Q2022. To avoid issues we recommend registering for your qualification as soon as possible and to not leave it a day before your first assessment.
Meet the mentor: Andy Sullivan founder of Complete HQ Posted 09/17/2023 by The content team & filed under Students. Andy Sullivan FMAAT is the founder and director of technology-focused accounting firm, Complete HQ. He chatted to AAT student and finance officer Julia Hirst, about getting back into studying and standing out from the crowd. After spending 14 years at the same accounting firm – moving up the career ladder from apprentice to manager to director and shareholder – Andy Sullivan FMAAT branched out and started his own practice, Complete HQ. His growing firm, currently a team of six, specialises in helping companies implement technology to increase business efficiencies. Julia Hirst spent time completing a biology degree, working in temporary finance roles and also as a jobbing actor before taking time off for her family. She recently completed AAT Level 2 Foundation Certificate in Accounting and landed a role as a finance officer. She is currently studying AAT Level 3, with the long-term goal of achieving AATQB status and setting herself up as a self-employed bookkeeper. Become a professional member AAT full membership (MAAT) is an internationally recognised professional status in accounting and finance. Find out more Starting out Andy: Are you studying at the moment or have you completed your studies? Julia: I am still studying. My history is a bit all over the place – I did a biology degree and then spent 10 years as a jobbing actor, with a few temping roles in junior finance positions. Then I took time out to have my family, which has been lovely. I’ve had about 7 years off. Last Christmas, I started thinking about getting back into work and I happened to see an AAT advert on TV. I thought, ‘yeah, I could do that and study at home’. So I’ve just finished my AAT Level 2 and I’ve also just got a job, which I’m quite pleased about. In the long run though, I’d rather work for myself. Andy: Are you working in industry or in practice? Julia: Industry. It’s just a really nice way to ease back in. Andy: Working in industry is a great way to get that first experience of accounting. I train AAT apprentices now and I was an AAT apprentice myself when I first started – so I would suggest to people now to go into industry before you go into practice. Practice is great, I love working with business owners. But to get that actual understanding of how a business works, I think you get that more from working in industry. Practice gives you a great underlying technical knowledge of most things (especially if you work in a small practice), but in industry you get a better understanding of how a business operates. Julia: I’ve got a little bit of practical experience, but I’ve had such a long break with having my son, that I knew I just needed to get back in somewhere. I’ve been really lucky, I’ve only been in the role a short time and the company has been really great so far. Putting your learning into perspective Andy: So you’ve completed your AAT Level 2, are you going to do Level 3 now? Julia: As I’ve just started this job, studying has gone on pause. I fully intend to get back to it though, once I’ve got a handle on what I’m doing with work. Andy: I think Level 3 really puts your Level 2 into perspective and you can see the final result of all the underlying numbers. Stuff really starts to click and the reason for doing things starts to make sense. Julia: I’ve got a long-term plan to work for myself. But there are so many accountants and bookkeepers out there, how on earth do you find a way to stand out from everyone else? Andy: What you’ll find is that there are a lot of people who say they can do it but there aren’t many people who actually can. I picked up a lot of work through helping businesses create efficiency in their business operations. What I maybe also did differently to traditional accounting businesses is from the get go, I spent a lot of time and effort on a marketing strategy. I spent a lot of time learning about Google Ads and marketing. Don’t get me wrong, word of mouth referrals are still a big part of business, but at the same time, if we want to grow, we need to have touch points with people we have never met before – and doing that digitally is the way to do that. Building a business Julia: So your company is relatively new – how are you finding everything? Andy: When I left the old business, I left with some clients and after a period of time some other businesses that I used to work with wanted to work with me. That helped to give me more financial resources to bring in other people. We’re now a team of six. We were growing fairly quickly and then Covid-19 happened – but having said that, we were in a perfect position to handle the pandemic. I set the business up in a way that we could all fully work remotely. I thought as well, as the business is growing, that gives us access to good accountants across the country. Julia: Of course, because you’re not limited by where they are. Andy: Exactly – I’m based in Cornwall, I’ve got a bookkeeper based in Scotland, an administrator based in Oxfordshire, and another staff member that splits her time between Essex and Portugal. If I was to say that I wanted people in the Plymouth commute-to-work area, I would be limited to the skills I could access. Julia: What were your reasons for starting a business on your own, did you just want to be autonomous, or was it about work/life balance? Andy: I have a young family, so it was definitely about work/life balance for me. Also, in October 2018 I was diagnosed with Crohn’s disease. I was off work for three months and when I went back to work I wasn’t the same, I didn’t have the same focus. I’m at the point where I still work a lot of hours now, but some days I’ll work 12 or 14 hours and the next day I’ll work 2 hours and then go and ride my bike for half of the day. The rest of the team have that control over their work as well. Julia: I think after the pandemic it’s the way that most companies have gone now they know that working from home is actually possible. Andy: Definitely. As long as we are still getting the results for our clients, I’m comfortable with the hours people work to suit their lifestyle. Good luck with your studies and I hope your journey to becoming a self-employed is a smooth one! Become a professional member AAT full membership (MAAT) is an internationally recognised professional status in accounting and finance. Find out more
Another day, another payment problem Posted 09/15/2023 by AAT Comment & filed under Members, Prompt payment. This time, it’s online marketplace Etsy facing controversy. Etsy, an online marketplace, is facing a boycott by sellers over withheld cash it’s holding for its new reserve system. In response, Etsy has said it is “substantially decreasing” the amount of money it would put on hold, but did not state the new rate or time frame. Some sellers had 75% of their takings frozen for 45 days, leaving them struggling to trade and pay suppliers. Etsy allows independent sellers to set up their own shop. It specialises in bespoke items, handicrafts or things not usually available in high street shops. It has six million sellers worldwide and just under a million based in the UK. It’s a US-based company which trades its shares on the NASDAQ stock exchange in New York, where it listed its stock in 2015. Etsy’s shares are currently trading at $99 – a far cry from an all-time high of $294 during the Covid pandemic in 2021. Its biggest shareholders are major financial institutions such as Vanguard Group, BlackRock and JP Morgan. Sharpen your tax skills The problem created for sellers A reserve system it introduced meant some sellers had 75% of their takings frozen for 45 days, leaving them struggling to trade and pay suppliers. Etsy also charges sales commission fees and advertising, which came out of the remaining 25%, leaving sellers with little. “A lot of people set up in the pandemic and Etsy is their only source of income,” Small Business Commissioner Liz Barclay told the BBC. “Women, ethnic minority and neurodiverse people found that Etsy’s way of working really fits them and their lifestyle – they are going to find it really very difficult to carry on.” During the strike, sellers would put their store on ‘holiday mode’, stopping people from purchasing. What can be done? AAT has long campaigned for three simple changes to the UK payment regime: for the Prompt Payment Code to be compulsory for large organisations for the maximum payment terms under the Code to be halved from 60 to 30 days for the SBC to have the power to impose financial penalties on those who persistently pay more than 95% of their invoices in more than 30 days. Sharpen your tax skills