Shrink your tech stack – save money and improve efficiency Posted 08/31/2023 by Fyorin & filed under Technology. This content is brought to you by Fyorin. This summer is the perfect time to evaluate your subscriptions and re-evaluate your technology stack. We are well past the beginning of the new tax year and clients may be more willing to accept changes after a break for the holidays. This article discusses how you can audit your tech stack so you eliminate unnecessary software that only adds to your cost, and also to highlight the benefits of switching to a comprehensive, unified solution, improve efficiency and save money. Before tech, comes process If your processes are shaky, or if you are not effectively using your tools, then no amount of technology will be able to save you. You should start with analyzing how your processes are aligned with the technology you’re currently using. How do you handle invoicing, reporting, receivables, and payments? What tools do you use for these processes, or are they still manual at all? The problem is, when you do a lot of copy and pasting at the end of the month to close the books, you may be missing out on a valuable part of the reconciliation process, as reconciliation should happen automatically when you use the right tools. It may be tempting to fix those gaps with another software. But before doing that, take stock of what tools you actually have. Ask yourself – am I using all of your tech efficiently? New features are constantly introduced, and, unknowingly, you may accumulate multiple tools that serve the same purpose or you may already have workarounds for processes that can actually be resolved by another tool in your stack. One of the downsides of a multi-tool setup, is that it comes with subscription costs. Are you aware of what you’re paying for and how much? Does anything you’re paying for on the highest tier of the tool you’re using that you could drop to a lower tier if you don’t need the features? Thinking about what you already own before making a new purchase is also another reason to consider what you currently have. Alternatively, you can take it a step further and explore the possibility of transitioning to a unified system that handles all financial operations. Unified solutions are met with certain hesitation on whether or not they are robust enough to deliver value in a way that’s worth abandoning your current set up. Firstly, you don’t need to throw all your tools out yet. Instead, it’s about scaling down, and secondly, the benefits of unified platforms for financial operations significantly outweigh the drawbacks. Let us demystify it. Benefits of scaling down & moving to a unified solution In the first place, a unified financial operations solution does not require you to give up on your favorite OCR or accounting software. A platform like Fyorin can help you streamline your day-to-day financial operations by bringing together processes such as payments, receivables, expenses, and Treasury management. It can be connected with systems like Dext or Xero to simplify the day-to-day financial operations. Instead of having to manage accounts receivable, accounts payable, expense management, invoicing, reporting, and a global wallet separately, you could use one tool for everything. With real-time visibility into cash flow and spending, you can consolidate otherwise fragmented data and close your books more efficiently. Additionally, it would reduce errors when transferring data between multiple systems and improve overall compliance. With less time spent on manual work, you can offer your clients better and more informed advice. Moving to a unified solution decreases subscription costs. Rather than having separate tools for all financial operations you could pay for just one. In the current economic climate, many vendors choose to raise their prices. They convince you that it is easier to accept increased costs than to offboard your clients. What often comes with increased prices is also a decline in the quality of customer service and slower product development. This means that the new features you need may be delayed or never delivered. Switching may seem overwhelming. However, with the assistance of a dedicated implementation team, transitioning to a new solution may save you money in the long run. Furthermore, ask yourself: Would you prefer to pay for another tool, hire an additional staff member, or simply rely on a single platform to assist you with your day-to-day tasks? Given the widespread shortage of accountancy skills, the need to perform financial operations efficiently without adding another staff member is becoming crucial. Lastly, consider your clients. Do they need to use two or three different tools for payments – for instance, one for approvals, one for bills, and then still log into the bank to execute payments? What if they expand into an entirely new geographical market or start accepting payments in different currencies? Will the current tech setup be able to support them or will they be required to navigate the process of getting onboarded into a new financial institution? Mostly likely, as a business scales internationally, additional tech stack might be required to address cross-border challenges. That may put your practice in a position where you either need to let go of such client because you can’t accommodate their requests or it becomes too costly to maintain, due to the manual work involved. Platforms like Fyorin enable a business to scale cross-borders without the need to grow the financial operations team. Fyorin’s clients, from one single platform, can operate across a global network of financial institutions, giving businesses access to cross-border payments with the ability to send and receive funds, as a local, in over 150+ currencies. Other financial operational efficiency benefits include unification of treasury across all bank accounts and expense management tools. Fyorin platform also connects with the major cloud accounting platforms like Xero, Quickbooks and Microsoft Dynamics so that payables and receivables can be automated. Without the need to manually login into the bank to manually reconcile. Final word While we understand the hesitation surrounding using one tool for all financial operations, the benefits far outweigh any potential drawbacks. Ultimately, with a consolidated solution, you can serve your clients better, faster, and more accurately. And they will appreciate only remembering one set of login details to do it all. If you are ready to explore moving to a unified solution and managing all financial operations and managing treasury in one place, visit fyorin.com or contact us at: [email protected] This content is brought to you by Fyorin.
How your training provider will carry the load of an apprenticeship Posted 08/29/2023 by AAT Comment & filed under Apprenticeships, Employer newsletter, Start an apprenticeship. In part three of “7 steps to start an apprenticeship”, we look at how to choose the right training provider. Having sought AAT’s advice, finding a training provider is your next move. A training provider is there to help you navigate the process of designing, setting up and running your apprenticeship. With the right training provider on board, things will really start to come together. “Training providers are brilliant they have so much knowledge and are always there to help you navigate through the processes. It’s a really straightforward process once you know what programme and what apprenticeship it is you want to set up,” says Helen Bloodworth, Senior Manager Professional Qualifications, RSM. In the early stages, they will provide invaluable advice for example, in defining your job. Your apprenticeship role can’t be just for to have someone make coffee, it must have scope for learning and development in order to qualify for funding. Using their experience, the training provider will help you tweak your job so it contains the right elements to fit with the apprenticeship standard. Off the job training ‘Off the job’ training is a critical part of an apprenticeship. It doesn’t automatically mean ‘off company premises’, but it does require that apprentices spend 20% of their time away from work duties focussing on acquiring the skills and knowledge for their qualifications. This can all be managed by the training provider. A good training provider will “hold the employer’s hand” throughout the apprenticeship process, from helping you place the initial advertisement through to coaching your apprentice in their end-point assessment (final exam). Training providers can also do much of the ‘heavy lifting’ (functions such as HR and handling the paperwork) that your team might not have time /del/to deal with. Aside from training, a quality training provider can tailor the apprenticeship training towards the needs of your business. If a training provider teaches apprentices bookkeeping at the start of their course, but you feel costing is more relevant to your firm, they may be able to accommodate these requests for recruitment help: writing and listing the job spec/advert; help with interviewing candidates handling administration and paperwork The questions you should ask a training provider What qualifications do you offer? Are you AAT accredited? What are your fees? What is the course duration? When are the course enrolment and end dates? How do you deliver their apprenticeship? In the college, at your workplace, remote learning or a blend? What are the class sizes? How regularly will update me on the apprentice’s progress? Are all optional papers offered at AAT Level 4 (some training providers are not able to do this)? What are your success rates? Also, find out which staff member at the provider will be working with your apprentice. 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
AAT to host induction webinar to support new students Posted 08/29/2023 by AAT Comment & filed under Apprenticeships, Employer newsletter. We are excited to announce plans for a Student Welcome Webinar to support new AAT students. This online webinar will be held on 28 September 2023 from 12.30 to 13.30 and will bring your students up to speed with all the resources available to support them on their AAT journey. The webinar aims to smooth the transition for your students as they embark on their AAT journey. Benefits of attending There are many reasons why this is a good use of your employees’ time. We’ll show attendees around the MyAAT Dashboard on AAT’s website. We’ll demonstrate the Learning Portal, the home of level-specific study resources. They’ll also learn about AAT’s study planner and materials to help prepare for those all-important assessments. We encourage you to advise your students to join us for this webinar and even suggest watching it collectively as a study group. Save the date We suggest you encourage your students to attend this invaluable webinar and start their AAT journey on the right foot. With your support, they can maximise the benefits of this webinar and set the stage for a successful and rewarding AAT experience – not to mention accelerating their contribution in your business. Welcome to AAT Join us from 12.30 -13.30 on the 28 September for our welcome webinar designed to help kickstart your AAT journey and give you the full rundown on all that your AAT registration gives you. Sign up
Modern roles: What is an Outsourcing director? Posted 08/29/2023 by The content team & filed under Career profiles. We take a look at some of the emerging roles you could undertake in the modern accounting industry, so you can find the perfect fit for your career. Here’s what you need to know about a role as an Outsourcing director. What an outsourcing director does Within an organisation, an outsourcing team specialises in overseeing sub-contracted projects, which includes everything from proposal review to creating budgets. Tom Wood, manager at Morgan McKinley, explains that an outsourcing director is responsible for shaping the strategic direction of the outsourcing function, training, coaching and managing employees, and working with key stakeholders internally to ensure that the outsourcing team is working closely with other parts of the business. Typical responsibilities of an outsourcing director “The real contribution that a more senior member of an outsourcing team can make is significant,” says Tom. “The majority of the role will incorporate managing a sizeable portfolio of clients (often across a broad range of sectors), as well as being tasked with winning new business for the firm. This new business can come from existing clients who are already signed up for audit and tax related services, but who haven’t yet explored how an outsourcing function can assist them.” Tom notes that an increased amount of new business can also stem from networking events, which allows outsourcing directors to discuss the value they can add, but also allows them to keep updated with any matters that will affect an outsourcing function. Earning potential “The size of the firm will determine the salary,” Tom says. “But on average, you can look at anywhere between £75,000-£95,000, which will continue to rise as the team expands or you move into partnership.” Skills required for the role As outsourcing directors are tasked with overseeing strategic direction, as well as training, coaching and managing employees, the role requires a strong communicator and networker. Tom says the role would suit “someone who is able to regularly take a step back from the day-to-day running of the team in order to consider how to grow the team (whether through recruitment or client acquisition) and in order to spot business opportunities”. Where you can find an outsourcing director role “The beauty of your role as an outsourcing director is that many of your clients will be start-up businesses, meaning your role in their establishment and growth is even more integral, more hands-on and therefore more rewarding,” Tom says. Is this role the right fit for you? Salary range of £75,000-£95,000 Shape the strategic direction of the outsourcing function of a business Work with start-up businesses Strong communication and networking skills required Further reading: Modern roles – is Finance Business Partner for you? Career profile: Chief Executive of a charity Career profile: Forensic accountant
How your accounting practice can leverage AI Posted 08/25/2023 by Hannah Dolan & filed under Artificial intelligence. This content is brought to you by Xero. From automating bookkeeping tasks to generating forecasts and reports, artificial intelligence (AI) can streamline daily admin, and equip accountants and bookkeepers with reliable data and insights. It’s therefore no surprise that the accounting industry has one of the highest AI adoption rates in the UK. In this article, we explore how you can combine AI with human-led services in your practice. Learn about working with AI Our masterclasses, webinars and e-learning courses can help you make the most of artificial intelligence. Browse our collection How AI in accounting can benefit your practice Artificial intelligence simulates human intelligence. Today, these technologies can hold human-sounding text conversations, recommend new shows for you on streaming services, and even drive cars. For accounting practices, there are countless benefits to adopting AI. Here are five examples: Automation: AI-powered software can speed up data entry, bank reconciliation, and invoice processing – so you have more time to focus on advisory, business strategy, and value-adding services. Accuracy: Huge data sets don’t intimidate AI. Tasks can be completed accurately and quickly with this technology. Cost savings: Repetitive tasks can be automated, saving you hours and reducing labour costs to improve overall practice efficiency. You might even find that the extra time enables you to take on more clients. Real-time insights: AI gives you and your clients a real-time view of their finances. This means you can bolster your advisory with data-driven insights, and clients can make smarter financial decisions. Enhanced security: The fraud detection process is expedited by AI tools, which identify patterns and anomalies in data quickly. These tools can spot suspicious transaction data, helping protect the financial health of a business. Will AI replace accountants? Artificial intelligence could streamline some accounting tasks, but it’s unlikely to replace accountants and bookkeepers altogether. The insights generated by AI are only useful when they’re delivered by an advisor who can translate and contextualise them. Stuart Miller, Head of Product Compliance and Industry Engagement at Xero, shares his view: “Technology and AI have clearly changed how the profession operates, allowing accountants and bookkeepers to provide valuable insights into their clients’ business affairs. When I began my career in 2003, I was using adding machines, T-Accounts, and even teaming up with colleagues to call and cast accounts. Today, these tasks are handled by AI and technology, which allow us to focus more on advisory work and really adding value to help clients thrive.” Five examples of AI in accounting practices If the thought of implementing AI tools feels overwhelming – fear not. Here, we explain five simple ways practices can adopt AI. 1. AI in accounting software Some cloud-based accounting software providers already offer AI features that help accountants and bookkeepers to automate repetitive tasks, improve accuracy, and quickly generate reports. Take Xero’s suite of AI product features as an example. Strengthen your advisory services with deep insights and reliable data, using Analytics Plus. Speed through transaction matching with bank reconciliation predictions powered by machine learning. 2. AI in accounting audits Human auditors have to filter through reams of data to pick up on patterns and anomalies. AI can expedite this process, helping auditors focus their efforts on the areas most likely to contain material misstatements. Stuart explains: “AI-driven audit accounting software offers significant opportunities for driving efficiencies by automating tasks, improving data analysis, enhancing risk assessment, and facilitating real-time reporting. However, it’s important to note that AI should complement human judgment and expertise in the auditing process, rather than replace it entirely.” 3. AI in accounts fraud detection False positives are common in traditional fraud detection. But these cost time and money to investigate. AI tools can analyse customer data, transaction data, and other relevant sources to detect fraud and limit the number of false positives. Using machine learning, many of these technologies get smarter over time. This means they can deal with new and evolving types of fraud, which is useful given the growth of economic fraud and crime. 4. AI in predictive analytics Predictive analytics uses past data to predict the future. It’s useful in cash flow forecasts and other financial projections, as well as for reconciling accounts. You can find predictive analytics in Xero’s bank reconciliation predictions, which use data, algorithms, and machine-learning techniques to match and code transactions. It also features in Analytics Plus, which uses predictive analytics to create reliable cash flow forecasts and projections. 5. AI in automating tasks and data visualisation AI fares best with tasks that are formulaic and repeatable – like data entry, bookkeeping, and basic financial analysis. Clients can make better sense of their finances by seeing data visualisations like charts, graphs, and dashboards – all of which can be created using AI. This frees up time for you to focus on tasks that require human judgement, critical thinking, and advisory experience. Join forces for greater efficiency Make AI part of the team and give your clients the best of both worlds – accuracy and data-driven decision-making, partnered with human expertise and experience. AI-powered accounting software like Xero makes it easy to enjoy the many benefits of artificial intelligence. With intuitive features like Xero Analytics and bank reconciliation predictions, you can adopt AI at your own pace.Become a Xero partner today and join over 200,000 accountants and bookkeepers using Xero in their practice. Get the tools and resources you need to succeed. This content is brought to you by Xero. Learn about working with AI Our masterclasses, webinars and e-learning courses can help you make the most of artificial intelligence. Browse our collection
How one individual’s dishonesty can undermine an entire business Posted 08/24/2023 by AAT Comment & filed under Ethics, Members. Listed tech company WANdisco has confirmed that over $115 million (£93 million) worth of false sales have been identified in its accounts as CEO and CFO step down. WANdisco is a sizeable cloud computing company, with dual headquarters in Sheffield and San Ramon, California. With a market capitalisation of around £890 million and a London Stock Exchange listing, things had been looking quite rosy for the tech firm. Founded in 2005, its software enables large-scale migration of data to the cloud. It employs more than 180 people and counts Google and Amazon among its customers. But it hasn’t always been plain sailing for WANdisco. In September 2016, co-founder David Richards was briefly forced out of the business after a steep drop in its share price. He was reinstated a month later, causing the chair and other directors to leave. Manual entries risk fraud Last year, the company announced a string of lucrative deals with unidentified clients, causing its share price to rise 215% from January 2022 until March 2022, when shares were suspended. These announcements “may have materially misstated the company’s financial position”, WANdisco said. In April this year, it was announced that WANdisco would be investigated by the Financial Conduct Authority (FCA) over millions of pounds in false sales. The company confirmed it had identified over $115 million (£93 million) worth of false sales in the accounts. An independent investigation by FRP Advisory confirmed that the company had booked future sales of $15 million for 2022 which were false and that sales bookings of $115 million recorded in 2022 also did not exist. Following those announcements, Richards stepped down from his role as Chief Executive, while Erik Miller departed as Chief Financial Officer. BDO is WANdisco’s statutory auditor and in the 2021 year-end independent auditor’s report, the firm “identified specific risks of fraud and error in respect of inappropriate revenue recognition given the nature of the group’s contracts with customers”. It warned that there was a “risk of manipulation of revenue through manual journal entries”. FRP Advisory’s findings are consistent with BDO’s auditor report, noting falsified accounts can be traced back to one senior sales employee. FRP informed WANdisco in April that falsified purchase orders associated with the senior employee in question are “illegitimate,” while all other orders are legitimate. “We are pleased to receive these findings, which confirm the limits of the impact of the identified irregularities,” said Kenneth Lever, WANdisco’s Executive Chairman, said in a statement. There are several lessons that can be taken from WANdisco’s difficulties. Among them is having sufficient processes and controls to help prevent manipulation of information. Revenue recognition is an important element, too. Recognising revenue that’s owed, but has not yet been received, can have the effect of improving a company’s balance sheet. However, there is a risk it can mask potential problems, which can grow until they are discovered later, as WANdisco’s case shows. What would an AAT member do? Ensure that processes are in place to prevent revenue data manipulation Be strict about revenue recognition in accounts, to prevent an over-representation of money owed that has not yet been received
Accountex Summit Manchester returns for its fifth show Posted 08/23/2023 by Accountex & filed under Events, Members, Networking. This article is brought to you by Accountex. Accountex Summit Manchester is set to return to Manchester Central on September 19, 2023, attracting thousands of bookkeepers, accountants and finance professionals. The event will feature over 100 software and service suppliers, such as Bright, Dext, FreeAgent, Intuit Quickbooks, IRIS, RDI Solutions, Sage, Wolters Kluwer and Xero. Visitors will have the opportunity to meet the teams behind these renowned brands, receive personalised demonstrations, explore new solutions, and gain practical insights. “Great to get up to date, in an ideal venue, with excellent seminars and helpful suppliers.” The CPD-accredited seminar programme will showcase more than 60 industry-leading speakers from across the country in 30+ sessions, including panels and presentations. Covering a range of topics, the sessions will delve into AI, recruitment, personal branding, working parents, mental health, recruitment, exit planning, cyber security and more. “It’s good to get a lot of face time with the industry” Katie, a Business Advisor from CHFB, expressed her enthusiasm for the event, stating: “It’s great to not only meet people but to get your brain flowing, because there may have been things that you haven’t thought of and things that your company needs which you didn’t even know existed. So apart from the networking, for us it’s about education and learning.” Here’s a taster of what you can look forward to The Secret Diaries for Bookkeepers: what accountants don’t know about bookkeeping Jo Wood, Business Coach & Zoe Whitman, Business Coach, The 6 Figure Bookkeeper In this panel session, Zoe and Jo will be joined by two additional bookkeepers to discuss what it’s really like running a forward-thinking bookkeeping practice. They’ll discuss: whether daily bookkeeping is really possible whether bookkeepers are really adopting new technology what it’s really like trying to hold your clients accountable for providing information in real-time whether any bookkeepers really take January off This session will give insight into what works, giving actionable advice for the audience. Managing Stress & Preventing Burnout in the Workplace Liam Reynolds, Workplace Mental Health Officer, Mental Health UK This presentation explores the impact stress and burnout can have on individuals within the workplace, and the role organisations can play to provide psychological stability to employees during turbulent times. It’s useful for individuals looking to ensure they stay well at work, support their colleagues, and avoid burnout. Tax Untangled – Top Tax Issues for 2023/24 Sharon Cook, Technical Director, 20:20 Innovation In this session, Sharon will will review two of the most topical and challenging changes in taxation that practitioners are grappling with right now: For unincorporated businesses – the change in basis periods, the 2023/24 transition and prior planning opportunities. For companies – the new corporation tax rates and the need to identify associated companies via family and other relationships. She will also consider tax ethics, in a world where AI is everywhere. Audit Your Mindset: overcoming challenges with the power of ‘iCan’ Richard McCann, Managing Director, The iCan Academy With a challenging childhood in poverty, Richard defied the odds, transformed his life, and now stands as a leading voice in mental health and empowerment. Drawing from his personal journey of healing and growth, Richard empowers audiences with invaluable insights and practical strategies to conquer challenges and achieve greater success. Personal Branding 101 Rachel Harris, Director, Accountant_she Personal Branding 101 is an essential guide to developing a strong personal brand in the digital age. Rachel Harris shares cutting-edge strategies for standing out in a competitive marketplace. The talk emphasises authenticity as the foundation of personal branding, helping participants uncover their unique voice, values and strengths. You’ll leave this talk able to create a captivating brand narrative aligned with your goals. The session also covers social media tactics, leveraging digital trends to enhance online presence and engagement. Beyond ChatGPT: the future of AI in tax Rebecca Benneyworth MBE, Tax Lecturer & Consultant, Rebecca Benneyworth Chartered Accountants Tax authorities around the world are using Artificial Intelligence and data analytics to spot tax risks in ways that practitioners need to be aware of. AI and data analytics also hold the power to help practitioners reduce the risk of missing potential tax breaks and increase the chance of spotting them. This session will look at what is happening, what is on the horizon and how to plan for it. “Accountex is a one stop shop” Accountex Summit Manchester is taking place at Manchester Central on 19 September 2023. In addition to the educational programme and exhibition, there will be an After-Show Party, where visitors and exhibitors can network and unwind after a productive day. For further information and to book your free ticket, please visit https://accountexmanchester.com/. Use priority code ASM241 when booking your ticket.
How to attract young talent to your business Posted 08/23/2023 by Christian Koch & filed under Apprenticeships, Employer newsletter. Experts advise on the best methods to attract and retain a junior team. The recruiting problems faced by many accountancy firms over the past decade show no signs of abating. According to one recent survey by Intuit QuickBooks, 92% of accountants have experienced hiring challenges in the past year. Recruiting talent at all levels has been difficult (such as the talent shortage created by senior professionals retiring), but finding junior candidates is a particularly sore point for many practices and finance teams. This is partly down to the pandemic upending the education and formative work years for many young people (big four firms such as KPMG and Deloitte now offer extra classes on soft skills for new trainees) but also down to the changing expectations from younger generations, who are demanding a greater sense of work/life balance. Indeed, according to the 2023 Accountancy Salary Guide, 38% of employers find it difficult to recruit first-year trainee accountants, up from 17% in 2022 last year. As such, businesses are also having to coax young talent by offering perks such as barista-style coffee and flexible working (in March 2023 alone, more than 1,400 UK job postings mentioned “an early-finish Friday” as a benefit for potential recruits, according to data gathered by job search engine Adzuna). Big changes in recruitment Even the way young people find out about jobs is changing, with 50% of graduates finding their current role through TikTok, according to the 2023 Accountancy Student Recruitment Report published by training providers First Intuition. The recruitment woes don’t end when a trainee accepts a job offer: many firms have reported candidates reneging on the role; some even sent out goodie bags to successful recruits as a reminder. 50% of graduates are finding their current role through TikTok 2023 Accountancy Student Recruitment Report “The labour market is horribly tight right now: everybody wants to recruit more,” says Gareth John, chief executive at training providers First Intuition. “Employers are now forced to ‘take a punt’ on candidates they wouldn’t have previously offered a job. Some are even over-recruiting because they know candidates will drop out [for other jobs]… but it’s worth pointing out many young adults face financial challenges, and a few extra thousand pounds can make all the difference when facing inflation, high-interest rates and the difficulties of getting a mortgage.” Below a range of bosses and experts share their tips to find accountancy professionals among the younger generation, In part two, we’ll look at how to attract career changers and more mature students. Where to find talent Local schools and colleges Amy Carter, Development Manager, Kirk Newsholme: “We don’t use recruitment agencies, but have good networks with local schools/colleges instead. We attend careers events and open days in the local area; events aimed at years 12/13 work the best.” Duncan Crooks, Talent Acquisition Manager, Price Bailey: “We take on around 35-40 apprentices a year, a mixture of school-leavers and graduates. For school-leavers, we give presentations to local schools, plus attend careers fairs, employability sessions and careers carousels.” Advertising on job boards Carter, Kirk Newsholme: “The AAT jobs board is fantastic. Also, Ucas is no longer focused on graduates: they also have a free jobs board for apprentices.” Apprenticeship fairs Carter, Kirk Newsholme: “Many councils also run regular apprenticeship fairs. At events such as the Leeds Apprenticeship Recruitment Fair, our stand is sometimes five-deep [in interested candidates]. We take some of our trainees to these events: students always want to speak with them, as it shows what they could be achieving in a year’s time. We also use QR codes to get candidates’ names and details: students simply get out their smartphones and scan it. We can then add them to our mailing list, so if a vacancy comes up, we can email them.” Social media and LinkedIn Crooks, Price Bailey: “At school, many students are told they need a LinkedIn presence, and that’s reflected in the number of applications we receive from the platform. Today, most of our applications come from LinkedIn, meaning we no longer rely on job boards. Price Bailey is on TikTok, too! But we’re hoping to make it more targeted by tagging videos, so if somebody’s looking for accountancy apprenticeships, they’ll find Price Bailey’s content.” Internal referrals Crooks, Price Bailey: “Referrals are big for us. We’ve got a generous scheme, paying £1,000 for every trainee referral hired.” Carter, Kirk Newsholme: “If somebody in our professional network knows of a friend or family member considering accountancy, we engage with them to see whether they’d benefit from joining us for a day of job shadowing.” Make your firm attractive Promoting the perks Carter, Kirk Newsholme: “We have Pizza Wednesdays, where we have free pizza in the boardroom. You can see candidates’ faces light up when we tell them about this! We also promote social gatherings on social media, whether it’s Pizza Wednesday, an axe-throwing event or a night out at Roxy Ball Room. Sustainability and CSR initiatives Carter, Kirk Newsholme: “If you speak to young people at careers fairs, you’ll find sustainability issues are important to this generation. Be clear about your sustainability credentials on your website, such as whether you’re paperless, you recycle or car-share. If you have any volunteering projects, include this – and any photos – on your website/social media.” Staging internal events Carter, Kirk Newsholme: “Consider hosting your own event. Kirk Newsholme holds an annual Accountancy Insight Evening at our offices, where candidates can listen to everybody from senior managers to the newest trainees. We also have training providers talking about qualifications, plus breakout rooms where candidates can chat with trainees.” Video applications Carter, Kirk Newsholme: “Because young people love using videos, we’re considering using video applications. Candidates could upload a video alongside their CV; it could be a good chance to see how their values align with ours.” Crooks, Price Bailey: “We currently have a shortage of audit and tax trainees. Whenever a candidate ticks a box that they want to do tax, I get quite excited! However, we’re now thinking we need to create videos with tax trainees.” Creating the job advert Language Crooks, Price Bailey: “Even though our workforce is a 50-50 split, we’re trying to get more female trainees. We use Textio [software which helps employers write bias-free job descriptions] which replaces any words deemed too masculine, such as ‘determined’ and ‘challenging’ with less male-biased alternatives.” Carter, Kirk Newsholme: “Keep job adverts short, snappy and think about how young people communicate. There’s a lot of jargon in our industry: you can easily lose engagement with potential candidates if you use it.” Should you include salary details in the advert? Carter, Kirk Newsholme: “We don’t include salary details at trainee level because we find school-leavers are less interested in salary and more interested in progression and the environment they’ll be working in. If they have a question, we’ll be honest with them… If you really want to disclose salary details, make sure you’ve researched local salary surveys across your sector first.” Who to recruit Do recruits need to have a finance background? Crooks, Price Bailey: “Price Bailey is subject-agnostic. Yes, it’s great if applicants have accountancy, maths or economics A-levels, but it’s not the be-all and end-all. Candidates don’t need to start talking about balance sheets and cash flow in the interview; they just need to show they’ve got a strong academic level that they can build upon with soft skills. We do ask for a minimum of 112 Ucas points for school leavers, though.” Finding a good cultural fit Carter, Kirk Newsholme: “Identifying candidates who have the same values as our firm is essential in gaining a new long-term member of the team. For us, it’s about personality and whether they will slot well into a team and get along with people. Our interviews are predominantly about gauging the ‘fit’ of the person for us and our clients.” The interview process Consider your approach Carter, Kirk Newsholme: “We have an initial informal video/remote interview with candidates first. It’s a relaxed introduction: you can see how you get along with them, gauge their character and if they’re easy to talk to. After that, there’s a second, face-to-face interview with a manager, where we can see whether they’ve researched the company and tell us about a time they’ve faced a challenging situation.” Crooks, Price Bailey: “We ask trainees to take a numerical test. Pass that, and then they’ll have a verbal reasoning test. If they meet that benchmark, we do a video interview. We then review all of that alongside their CV. If they meet that benchmark, we invite them to an assessment centre for more tests, including a group exercise involving a scenario based on a fictional business (which they’ll have to present).” Gareth John, Chief Executive, First Intuition: “Don’t assume job candidates know how to approach a job interview. Let them know beforehand that they should research the company and prepare some questions. Some employers even email candidates the questions they’ll be asking in the interview! Yes, this might feel like cheating, but it gives candidates a fair chance to prepare.” Post-offer phase Making sure they start John, First Intuition: “A couple of years ago, a young adult would accept a job offer straight away, and the employers wouldn’t need to worry until they turned up in the office on day one. Now, when day one arrives, employers often find their recruit hasn’t turned up because they’ve reneged on the job or got a better offer! That’s why employers are finding it more important than ever to maintain engagement with the candidate in the ‘pre-start phase,’ i.e. the period between making the offer and their first day in the workplace.” Carter, Kirk Newsholme: “It’s important to have a good onboarding programme. Kirk Newsholme recruits in May/June, with candidates not starting until September. We also bring recruits into the office to meet our team and take them out for coffee. I also keep in touch via email and phone calls and check how their A-level results have gone. We also send out goodie bags too! These usually have branded water bottles, notepads, pens, sweets, plus a leaflet about our company culture.”
Why employers have to spell out workplace standards to Generation Z Posted 08/23/2023 by Christian Koch & filed under Apprenticeships. The young generation of professionals is entering the workplace demanding increased flexibility and wellness perks, but sadly lacking soft skills. Here’s what managers can do about it… In June, KPMG announced some recent hires would be offered training courses on how to behave professionally in the office, aimed at younger workers who spent their college years (or first few years at work) stuck at home on Teams calls. According to media reports, these courses include sessions on what to wear in the office, how to make small talk in the lifts, sending emails, maintaining eye contact and avoiding jargon. Fellow big four behemoths Deloitte and PwC have also announced similar training for junior staff. With Gen Z entering the workforce, many other companies have also spoken of the challenges in getting them up to speed on workplace etiquette. Some employers have bemoaned the casual workwear: ripped jeans, trainers and hoodies; others have spoken about their younger staff signing off emails to clients with “hehe bye” and “hasta la pasta”, rather than the more conventional “kind regards”. Reports also surfaced earlier this year about the ‘tech shame’ young people experience because they don’t know how to use ‘legacy’ technology such as folders, printers and scanners. Some also needed training on how to speak on the telephone. Accountancy practices may have observed changing attitudes around work-life balance too: according to one McKinsey study from last year, 18-34-year-old workers were 59% more willing to quit their jobs than older colleagues if flexible working was taken away. Another poll from Axios/Generation Lab found 82% of Gen Z workers said doing the bare minimum at work was “pretty or extremely appealing”. Yet, some of the changes could be positive: 82% among Gen Z want regular “mental health days” according to 2022 research by workplace training company TalentLMs. “I spend a lot of time speaking with employers and consistently hear the same thing: employability skills and readiness for work isn’t what it used to be among young adults,” says Gareth John, chief executive at training provider First Intuition. “But it’s not their fault: the last three-and-a-half years have been dreadfully difficult for them… employers may need to rethink their expectations and recognise the extra support they need to offer.” From coaching soft skills to the importance of defining workplace standards, experts give their advice on managing younger recruits… Understanding post-Covid recruits Karen Blaylock, Accounting Training Manager, Armstrong Watson: “I’ve noticed the Gen Z/post-Covid cohort is much quieter, which can come across as shyness. Confidence can often be an issue too… Covid has meant school-leavers have had a disruptive couple of years, missing the part where they’d usually go out and socialise. Also, the pandemic has meant many haven’t been able to have part-time jobs and missed out on valuable work experience opportunities.” Gareth John, Chief Executive, First Intuition: “It’s easy to blame everything on Covid, but there’s a cultural shift happening among young adults. For example, they don’t socialise in even the same way they did a few years ago. I’ve heard of some workplaces where young recruits will sit in their cars to eat lunch, as they don’t feel comfortable eating in front of colleagues.” Chloë Mattick, Marketing, PR & Communications Executive, First Intuition: “The lack of part-time jobs has also had a huge impact. Many young people develop communication, teamworking and time management skills in jobs such as working in restaurants, shops or pubs at weekends. But the hospitality and retail industries have taken a hit in recent years. It’s a shame, because these are the skills that are increasingly being valued within accountancy.” Attitudes to work-life balance John, First Intuition: “Today, many employers are working 10-12-hour days just to keep up with the pressures of workload and [having] limited resources. Many young adults entering the workplace are seeing their bosses work these crazy hours and thinking this life isn’t for them. It creates a vicious cycle that makes it harder to retain and promote talent, while managers work even harder.” Struggling with ‘legacy’ tech John, First Intuition: “Don’t assume young adults will know how a printer works: some will have never seen a photocopier in their lives! Some also struggle to make phone calls on office landlines, often because they fear failure and criticism. Managers should help and give training where they can.” Amy Carter, development manager, Kirk Newsholme: “We sometimes see a gap in technical skills such as Excel. Sometimes employers have an assumption young trainees will know how to use Excel spreadsheets, but it isn’t built into school/college curriculums. We work with our training providers who ensure Excel is built into trainees’ onboarding package before they join the firm.” Mattick, First Intuition: “Today’s young adults do everything on their phones. But they’re not all watching TikTok videos. At First Intuition, some tutors allow phones in some classrooms as mobiles can be a great way to get the whole classroom engaged, by using quizzes and word clouds. It particularly gives students who are less confident a chance to speak out and participate. If used effectively, mobile technology can increase engagement for learners.” Setting workplace standards Mattick, First Intuition: “We hear of some candidates turning up to interviews in sports/leisurewear. But if you look at many workplaces today, tracksuits and hoodies are often the norm, even for the managing partners. How are young adults supposed to know any better? It’s a good idea for employers to give young adults clear expectations on behavioural standards: what constitutes appropriate workwear, hours of working, when their lunch hour is, even when they’re allowed to use their phones and what for.” Blaylock, Armstrong Watson: “Our culture at Armstrong Watson is based around standards. We communicate our values as early as the interview stage, when we give new colleagues our ‘Culture Book’.” Carter, Kirk Newsholme: “Many school-leavers from the Covid generation haven’t had the guidance about what the corporate world is like. We need to make sure they know what’s expected of them from day one. That’s why when it comes to interviews, it’s helpful to brief them on what they should wear and the style of the interview… The recruitment process is also where we gauge whether our candidate’s values align with our own… identifying candidates who have the same values as our firm is essential in gaining new long-term members of the team.” Improving soft skills Blaylock, Armstrong Watson: “As well as holding technical training sessions, Armstrong Watson also provides softer skill training days throughout the year covering communication, time management/planning, critical thinking and problem-solving along with leadership skills. To develop our trainees’ people/communication skills, we encourage face-to-face sessions so that students are used to being around groups of people and their own cohort.” Blaylock, Armstrong Watson: “Some trainees aren’t used to communicating in a more formal style and may need to be shown how to adopt a professional approach when dealing with clients. We encourage this is by providing opportunities for them to shadow senior members of the team.” Skills and behaviours John, First Intuition: “In the accountancy sector, the quality of apprenticeship programmes has grown phenomenally in recent years. In particular, employers are finding the Skills and Behaviours element of apprenticeships helpful, as it teaches all the non-technical skills many new recruits lack, such as teamwork, communication skills and critical thinking.” Check-in regularly Blaylock, Armstrong Watson: “Due to their quieter nature, students can be less likely to speak up. That’s why it’s important to check in on them regularly. It allows you to deal with any issues quickly, plus help gain a better understanding or where they – or we – might be going wrong, plus any help they may need.” Blaylock, Armstrong Watson: “While confidence and communication skills are areas companies may need to spend time on with their younger recruits, their determination and willingness to learn can be found in abundance. They’re always keen to take on a challenge. I’ll often send students out to other offices. Even though it’s out of their comfort zone, they don’t hesitate to do it… Post-Covid cohorts have had setbacks, but with proper guidance they’re more than willing to push themselves, build their confidence and gain the skills necessary for a successful career in accountancy.”
How accountants are managing complex customs requirements for clients Posted 08/23/2023 by Annie Makoff & filed under Brexit, Members. Confusing customs procedures are causing a headache for the accountants supporting and guiding small business clients. Here’s the action they’re taking. There’s no doubt that Brexit has created a myriad challenges for businesses involved in the export and import of goods with EU countries: navigating different VAT rates for each EU country, registering for EORI numbers, understanding rules of origin and getting to grips with new customs processes. But now research by the Federation of Small Businesses (FSB) has warned that customs paperwork is hampering a significant number of small businesses that are trading overseas. Four in ten firms said they struggle to navigate customs procedures due to the complexity involved and lack of expertise and are having to work with expensive intermediaries instead. Tina McKenzie, FSB Policy Chair warned that as small firms are ‘less likely’ to have the resources needed to deal with customs procedures, many are dependant on intermediaries. Small firms are often ‘unable to commit’ to large volumes and ‘less able’ to secure fixed price agreements or negotiate with couriers – leaving them at a significant disadvantage financially. Key issues small firms are having to nagivate include: Switching to Customs Declaration Service (CDS) for import declarations (which became mandatory from October 2022). Preparing to switch to CDS for export declarations (mandatory from December 2023). Investing in new systems which comply with new EU-UK customs rules. Understanding terms of sale. Obtaining the correct commodity code for goods. Appointing an EU representative. Registering for an EORI number. Making sense of customs declarations. All this is having a considerable impact on businesses involved with overseas trading – from both a financial and resources perspective. We spoke to accountants who work closely with businesses involved in overseas trading to find out what exactly the issues are with customs paperwork and how they are supporting these businesses. We have internal teams navigating customs requirements Steven Harcourt, Director, Prime Accountants Group As an accountancy firm, we’re helping clients by: Advising on the necessary customs requirements and how they impact clients’ businesses. Discussing possibility of using intermediary and how to pass on additional costs by using a cost analysis model. Providing support with internal changes enabling internal teams to navigate customs paperwork and requirements. Advising clients on the capabilities of their existing software and if new software is needed. Our clients are mainly owner-managed SMEs with limited in-house admin or finance resource. Therefore, any additional customs paperwork becomes a burden. Such clients have had to utilise freight forwarding companies – and therefore their fees – to complete the paperwork required when exporting goods from the UK. A client who exported lighting systems and electrical products pre-Brexit has decided to stop trading overseas due to complexitites and associated costs. Another told me their sales of goods to EU businesses has plummeted since Brexit. There is also fear from European buyers due to the added risks of goods getting stuck in customs if paperwork is not correctly completed or submitted. Buyers also have to make an additional duty payment in order to receive goods from a UK business. Therefore, many buyers are choosing not to trade with UK businesses. Another client is looking at the option of ‘drop shipping’ goods between EU countries and raising the paperwork in the UK: this limits the risk of inefficient import and exports. However, the paperwork requirement is not straightforward. Clients who have opted to use intermediaries have had to pass these costs on to their end customers. Any reduction to the product margin is a great challenge to the business owners and hampers business growth or reinvestment. Verdict: European buyers are put off trading with UK businesses, while costs are rising and being passed onto customers. We’ve introduced a slate of changes to address the issues. I’m offering a service where I take care of paperwork Ashley Ritchie, FCA, Founder, Campbell Ritchie Chartered Accountants A few of my clients have stopped trading outside the country due issues around customs. The extra paperwork filled them with fear and dread. In my opinion, they could have grown their business if they’d stuck with it but they felt it wasn’t worth the extra admin. Even something as simple as obtaining an EORI number seems to panic some business owners. I myself offer a service to clients where I’ll take care of the paperwork for them: I can apply for an EORI number on their behalf or act as their intermediary for IOSS. I am also set up as an agent with both HMRC and the Irish Revenue which makes a massive difference for clients.. Going forward, I’m hoping the new Windsor Framework will also help clients. This will allow the export of more items with less paperwork involved. Small businesses (especially in Northern Ireland) are the backbone of our economy and need to be supported more. Verdict: Many clients have stopped overseas trading due to customs complexities, restricting growth. Offering a service where I do their paperwork for them has helped. We’re guiding small clients through outsourcing to customs agents Paul Samrah, Partner, Moore Kingston-Smith While clients continue to struggle with navigating new regulations, Brexit has been in place for nearly four years now, so businesses are far more accustomed to the paperwork, time delays and additional costs involved. Common pitfalls with customs declarations are: Misclassification of information. Misunderstanding the rules of origin. Using incorrect Incoterms (the international trade rules defining buyer and seller responsibilities, and obligations when it comes to delivery, transportation and insurance). Making mistakes leads to delays, and time is money. While using a customs agent means extra cost, it does mean that complex paperwork is completed correctly, saving time in the long run. Whether you pass on part or all of the costs incurred to customers is entirely a commercial decision, but you don’t want to upset them, and their business is vital. Our role as accountants is to act as a sounding board for clients and guide them through challenges. For the smaller businesses that must outsource, it’s about handling various aspects of customs declarations. We also signpost credible customs agents, freight forwarders and tariff experts where necessary. Verdict: We’re helping businesses by guiding clients through using a customs agent.