Too much tech could homogenise your firm

Posted by & filed under Members, Technology.

Businesses up and down the land now have access to great, ultra-efficient software that can neatly streamline processes. Just be careful not to sacrifice your firm’s individuality.

Accountants are perenially in demand and able to work in an array of sectors and industries. They also have access to a proliferation of high-quality, advanced software that offers deep insights into performance, with the ability to manipulate data and forecast to an incredibly granular level.

Standing out in such a crowded environment is not straightforward.

With such powerful analytical tools available, and with certain software emerging as the most popular, there is an awful lot of potential for homogenisation, argues Richard Brewin, founder of Progress Barnwell Brewin. 

“Accountants have always had a challenge in differentiating themselves from the competition,” he tells AT. “We tend to offer the same services and say the same things, and it’s often only once you take on a client that differences start to come through. 

“Now we’re in an increasingly digitised world, essentially we’re all going to be pressing the same buttons, using the same software and the same apps. That makes it even harder and even more important to find what it is about your business that sets you aside from the competition.”

Personality

However, with a set of software and apps operating as a well-oiled machine, Brewin argues that accountants have an opportunity to put their own spin on their work. 

“There’s an opportunity for the profession to stamp their own personality on their firms in a way they wouldn’t have been able to in the past,” he says. “You don’t have to be this standard digital firm if you don’t want to be. You can provide the services you want to provide in the way you want to provide them. Your clients and the marketplace are either going to agree with you or they won’t, but the starting point has to be your firm reflecting what you want.” 

It’s a sentiment echoed by Factotum co-founder Bobby Lane, who takes the view that a well-assembled set of digital tools provides a springboard to enable firms to stand out.

“Now we’re in an increasingly digitised world, essentially we’re all going to be pressing the same buttons, using the same software and the same apps.

“The advent of this technology was a really good thing. Before that, when you charged a client £400, around 75% of that fee was for processing and 25% was adding value,” he explains.  

With that software in place, Lane explains, businesses are in a strong position from which to innovate and differentiate themselves. 

“Now that processing is automated, the client is still happy to pay that £400, but the ratio is turned on its head and £300 of that £400 is available for you as professionals to translate data to your client and start talking strategically about the business.”

What’re you aiming for?

With that in mind, Brewin says it’s important for firms to find a focus. 

“It’s your firm, and you can do what you like with it,” he says. “You don’t have to do the standard digital things. The danger with digitalisation is you can end up with systems and processes which are very effective, but no-one gets any satisfaction from it because it’s not achieving the things you want to achieve.”

At that point, he says, it’s important for businesses to step back and take stock of their overall goals. 

“You have to go back to the root of your vision,” he says. “Revisit that and compare that to where you are and what you’ve got. It might be that specialising is a great way forward, though it comes with risks if you go too niche. But if that’s a particular interest, then why not? It could be a trade sector, or type of client. 

“We’re in a profession that is naturally demanding through deadlines, expectations and the professional standards that we work to. You may as well do something you’re interested in as well, and not be too hemmed in by the technology and what you see others doing.”

Gender equality is an urgent issue for the Government

Posted by & filed under Members, Policy, Women in finance.

We need your input to address barriers women face in finance.

You may have seen that the Treasury Select Committee (TSC) recently announced an inquiry to examine the barriers faced by women in financial services, and the progress made in removing gender pay gaps. In order to develop the conversation and gather views, the TSC has launched a call for evidence, with a deadline for submissions set for 1 September.

Although it has risen up the corporate agenda in recent years, gender discrimination remains a stubbornly difficult issue to address. The reasons for that are many and will vary among different organisations, but whatever stage the journey to equality has reached, there can be no excuse for ignoring it.

This is an issue that we at AAT have tackled head-on, so it’s worth examining what a joined-up and concerted effort can achieve. For the past few years, AAT has made tackling gender inequality one of our key corporate aims. It began back in 2016 when we became the first accounting body to sign up to HM Treasury’s Women in Finance Charter, which committed us to “Supporting the progression of women into senior roles by focusing on the executive pipeline and the mid-tier level, as well as carrying a number of other pledges to promote gender diversity.” We achieved our Women in Finance target of having 40% women in senior management roles at AAT during 2022 and have committed to a new five-year target to have at least 45% by March 2027.

Making progress

We were also an early advocate for publishing gender pay gap data, and have done so since 2017. The most recent figures revealed that AAT’s mean gender pay gap decreased from 3.5% in 2021 to -0.2% in 2022, indicating a mean gender pay gap slightly in favour of women. As a result of these and other efforts, in 2019 we were nominated in the Employer of the Year category at the 2019 Women in Finance Awards.

Taking such an active approach to this is important for two main reasons: first, of course, it helps to make us a fair employer that promotes, develops and rewards the best people regardless of their gender.

But second, it’s especially important because as a profession, accountancy has been in the vanguard of addressing gender inequality in recent years, and we want that to continue. At AAT we have designed both our working practices and training requirements to reflect the realities – and challenges – facing women in the workplace. We want to support the rest of the profession through transparency, innovation and effective strategies.

Amongst the six UN Sustainable Development Goals AAT is committed to is Goal 5: Achieve gender equality and empower all women and girls. This commitment is underpinned by the gender split across our member population which currently sees 62% of our members as female.

Leading the way

This is an issue that should concern all in the profession. Certainly, balancing out gender inequities by creating a beacon for women in accountancy was a driving force behind Rachel Harris’s decision to set up her accountancy practice Strivex.

“I trained at a Top 75 practice where there were no female leaders, so this is a topic that I’ve spoken about a lot,” she says. “And I would definitely say that as a sector, finance is ahead of the game a bit, thanks to the 50-50 split of those qualifying.”

“However, that ratio doesn’t continue through to management. And so, in terms of accountants studying and qualifying it’s very even, but further up the chain, women seeing their careers slowing down because they’ve had children, or not being welcomed back after maternity leave is a bigger issue. So that 50-50 split becomes irrelevant when that isn’t reflected in decision making, or in opportunities for women to come back to work after children.”

Given that, Rachel is encouraged by the decision to begin the consultation. “I would want to know particularly about peoples’ experiences where conversations have occurred where family planning has been explicitly referenced. For example, I remember pitching for a promotion from finance manager to Director of Finance, and I being asked in the interview, ‘Are you planning to have children in the next five years?’

“So, I think getting a deep dive into what’s happening in those conversations will be really helpful, and that’s where anonymity will be important.”

Work to do

We should be encouraged that lots of progress has been made, at AAT and beyond. But clearly there is more to do. The finance sector in general still faces significant hurdles to creating a truly inclusive and equitable career path. And accountancy isn’t immune: recent research by Instant Offices identified a significant drop in the number of women who set up their own accountancy businesses in 2022 compared to 2021.

 And that’s why we are asking you, our members, to make your voice heard and help us push the equity agenda forward. We understand this is a sensitive area, and there will be disagreement over what constitutes discrimination, but unless we open up the conversation and gather real-life experiences then it’ll be harder to affect real change.

Providing evidence

Primary source data from those on the front line is enormously important to this effort, and we are keen to provide anonymised testimonies from those in the profession, from a point of view of both positive and negative experiences. Please contact Jack Withrington to share your stories of gender discrimination, as well as positive testimonies of opportunities and support you have received in the industry – we will not include any identifiable details in any information we pass on.

On-the-go learning: mastering the art of working with Generation Z

Posted by & filed under Apprenticeships, Employer newsletter.

Gen Z workers learn and absorb information differently – and employers need to recognise it.

Work in an office – or remotely – with Gen Z and you’ll probably know the way they view the workplace is different to previous generations, whether it’s their prioritisation of work-life balance or their preference for Slack over emails.

Being the first generation born into a world where the internet, social media and mobile phones have always existed, Gen Z’s relationship with technology means they learn and absorb information differently, too. Employers are adapting to these needs in bold and exciting ways, such as making lectures available to download as videos or transcripts, using gamification and emojis during lectures, or delivering training in digestible 15-minute chunks.

Although students will always scribble notes word-for-word from a tutor speaking standing at the front of a hall – a mode of learning that has existed since early-medieval universities – today, digital natives are likely to be recording these sessions on their smartphones, converting it into a podcast they can listen to on the treadmill, or messaging thumbs up or down to the educator half-way through to let them know how they think the lecture is going. 

Does the world of on-the-go studying represent the Netflixisation of learning or is it something that truly benefits a new generation of trainees? Here two companies tell us how they’re adapting their learning methods to meet the needs of Gen Z…

Blended learning

Blended learning is a mix of face-to-face tuition and online learning that has been embraced by many organisations since the pandemic, as it combines flexibility (digital teaching) with interactivity (the classroom element).

Accountancy firm Grant Thornton has adopted a blended learning approach, with trainees given the option to receive training weighted 60/40 in favour of face-to-face or digital learning.

“Gen Z have a self-awareness not seen in previous generations – they understand what their individual learning styles are,” says Joanne Ritchie, Head of Technical Learning and Early Careers at Grant Thornton. “They know the way they study the best, whether it’s face-to-face or digital. [Offering a blended approach] allows us to give people what they need to thrive in the workplace, rather than being based on academic aptitude.”

Blended learning is particularly beneficial for neurodiverse students. “Today, many young people understand aspects of their neurodiversity and how it impacts their learning needs,” says Ritchie. “If a person has dyslexia or ADHD, this [blended learning] allows them to access alternative delivery mechanisms to suit their learning requirements.”

Recording lectures

When learning went online during the pandemic, many organisations started recording lectures, seminars and even tutorials for the first time. These have then been made available to students as downloadable videos – a medium particularly favoured by Gen Z (60% of 14-23-year-olds prefer YouTube as a learning tool rather than books, according to research by digital learning firm Pearson). Although these videos are obviously useful for students who have missed a lecture due to a dental appointment, they have other uses too.

“Pre-recorded sessions allow students to access online learning in their own time,” says Syeda Shams, Deputy Finance Training Schemes Manager at HMRC. “Rather than trying to recall what the teacher said or using their own notes, they can rewind and replay the session [many students listen to pre-recorded lectures at a slower 1.5x speed to ensure they haven’t missed anything]. The feedback we get from our students is overwhelmingly positive.”

Recorded lectures can benefit students who may find it difficult to attend a physical session, such as those with accessibility needs, or parenting/caring duties. The videos can also help neurodiverse students who may need extra time to process information or feel anxious in social situations such as being in a classroom.

Transcripts

Recorded learning isn’t solely an auditory and visual thing; many businesses also make transcripts of the lecture/webinar available for download too.

“Transcripts are a relatively new phenomenon as we previously only offered them to those with medical needs,” says Ritchie. “Some people have a preference to learn by reading rather than listening, while the transcripts can also be used for reference purposes.”

Smartphones at the ready

With British Gen Z-ers spending an average of 5.9 hours a day on their phones, according to one recent Adobe survey, educators are realising the key to embedding knowledge in these age groups is delivering learning content directly to their mobiles. This isn’t just about making recorded videos and transcripts of training sessions available for download, but also allowing trainees to use their mobiles within the classroom for researching, receiving (and giving) feedback or recording sessions.

At Grant Thornton, 67% of associates access external training through mobile devices. “Pre-recorded material doesn’t work for some aspects of learning such as practical workshops, but everything else needs to be mobile-ready” says Ritchie.

To ensure trainees aren’t scrolling TikTok videos mobiles during online training sessions, Grant Thornton requires them to have cameras switched on. “It’s so we can see their expressions and faces, and make sure they’re engaged.”

Equipping students with the technology needed for learning is also a big help, with Shams noting all HMRC trainees receive their own laptop and mobile phone.

Gamification

Put simply, gamification is about using the principles of play to lessen the cognitive load of learning. Gamification makes learning fun and “sticky” (i.e. easier to remember) via methods such as quizzes (multiple-choice and true-false quizzes are popular), using avatars instead of students’ faces, or rewarding trainees for their achievements. Gamification can increase employee engagement by 50%, according to a 2019 eLearning study.

“Because this generation are so fast-paced in the way they learn, you’ve got to be constantly engaging them in webinars/seminars, as well allowing them to ask questions and interact,” says Ritchie. “In some classes, we might say, ‘Get your phones out and we’ll do a live quiz [with students voting and selecting options via their mobiles].’”

“Quizzes are a great icebreaker to start sessions or to end them, plus it gets discussions going,” says HMRC’s Shams.

Grant Thornton also uses gamification to allow students to give instant feedback on how their training session might be progressing.

“We know that every 10 minutes or so of training, we need to be saying, ‘How is everybody feeling? Thumbs up? Or thumbs down?’ Students then respond with their devices. We also get them to submit words that might be on their mind during a training session. We did one last week, where responses included ‘overwhelmed’ and ‘too fast’.”

This feedback can help organisations shape future learning content, but it also gives students the opportunity to speak up, too. “Some students never put their hands up in a classroom to say how they’re feeling,” says Ritchie. “But because live polls are anonymous, they allow students to interact in ways they’ve never done before.”

Interactivity

“When we have a bulky topic or a subject that’s difficult to understand, we try to make them more interactive,” says Shams. “At HMRC, we have breakout groups where trainees are split into small groups to have discussions or do an activity before returning to the main meeting space to talk about what they’ve learned.”


Interactivity also works with online webinars/sessions too, with trainees at many organisations encouraged to use chat rooms in Teams and Zoom.

Personalisation

Many organisations such as Grant Thornton are personalising the learning experience for students by tailoring training towards their needs.

“If you’re doing an Excel course, you might log on and complete a basic questionnaire,” explains Ritchie. “It could ask you whether you’ve previously used Excel or studied maths/economics. Depending on the outcome of this questionnaire, you might go to a different phase [level of learning]. They [Gen Z] like this as it means they’re not held back by their own talent, while also allowing them to receive extra learning if they need it.”

Personalised learning helps with staff retention too, adds Ritchie. “The mentality where individuals stay 5-10 years at an organisation is gone. This generation knows what they want, and if you don’t give them things like personalised learning, they’re happy to leave [the company].”

Snackable learning

Forget day-long workshops and lectures so intense students are left scratching their heads the next day trying to recall what they learned.

Bite-size learning (or ‘snackable learning’) offers pupils the chance to learn more efficiently over a much shorter time-frame. By delivering training in easily-digestible chunks (condensing sessions into 20-minute segments, for example), the brevity of these sessions helps embed knowledge further (as the Ebbinghaus Forgetting Curve suggests, students are more likely to disremember information if they attempt to learn everything in one big session).  

At HMRC, trainees receive tuition via ‘learning bursts’, described by Shams as “15-20-minute sessions on specific topics”. These are often live sessions/webinars that students can attend during their lunch break.

Sustainable training methods

“We’re finding many of our trainees want training to be electronic rather than physical because of the sustainability impact,” says Grant Thornton’s Ritchie. “They’d rather read material from their devices, rather than carrying books around or having materials delivered to their home.”

Soft skills

Earlier this summer, KPMG announced it was offering classes on ‘soft skills’ for Gen Z recruits who entered the workplace during or after the pandemic. The extra tuition – which will teach younger employees how to give presentations and collaborate within teams – started after the big four firm noticed junior staff were lacking confidence with basic communication skills in the workplace.

“One of the biggest challenges for Gen Z recruits is impactful professional communication,” says Ritchie. “This is no criticism of them. After all, many haven’t been given the support to excel in that space during the pandemic. As an employer, it’s our duty-of-care to make sure they get that collaboration, conversation and confidence in speaking out.”

“Sometimes you end up with an email or Teams message [written by younger trainee] written entirely in slang,” she adds. “We need to coach them more mindfully than we ever done before with previous generations.”

Career profile: Audit Associate

Posted by & filed under Career profiles.

Being an audit associate requires good financial skills, the ability to communicate effectively, and a willingness to ask searching questions.

In our interview, Caitlin M Davis, Audit Associate at Grant Thornton UK LLP, talks about choosing a firm with the right culture, talking to CEOs on a daily basis, and the excitement of understanding how businesses work on a deep level.

How did you get your role as an audit associate?

I had interviews with around six firms while I was in sixth form and did a lot of research around the types of roles I would be interested in. I had a lot of support from the careers team who put me in contact with people in different firms whom I could talk to. I reached out to them and found out a lot about their roles. I also spent hours researching the companies on the Internet to find more about their culture and values.

Where can an AAT qualification take you? The choice is yours

An AAT qualification can open so many doors for you in your career, giving you the change to explore roles in any industry you can think of – from fashion and sport to banking or forensic accounting. After all, every business needs someone to look after its finances.

Find out more

What attracted you to audit?

I first got interested in audit because the role was described as needing analytical thinking, professional scepticism and an inquiring mind. It appealed because I like the idea that not everything you hear in the first moment is going to be the truth and you have to delve deeper into the figures.

What have you been studying?

The Grant Thornton role is an apprenticeship. I am working and studying at the same time. It took a while to settle in and find the right balance. In sixth form I was quite busy, I had a part time job and hobbies, and it was just about finding that balance. I know some people like to study before work and get up early, but found it better to spend a couple of hours in the evenings working. I’m learning online at the moment.

Joining Grant Thornton as an apprentice means that you have a structured training plan over five years. Long term I’m hoping to get promoted up through the ranks and manage bigger roles. I am now 20 and I’ve passed AAT advanced level (level three) and AAT professional level (level four) and I’ll be starting ACA in two months’ time.

Why did you decide to pursue this career route?

I did my A levels in Business, Maths and Drama at Rainham Mark Grammar School in Rainham in Kent. I got an A star and two As. While I was in sixth form, I did work experience at Lloyds Bank, and a construction company where I worked in the finance department.

I applied to Grant Thornton at the end of my first year in sixth form. It was one of a number of firms that applied to during Sixth Form. I was interested in applying for firms that provided AAT as the first qualification, because I knew it was so well regarded and such a good grounding. In my second year I had a lot of interviews, and I chose Grant Thornton because of the culture and the people who were very welcoming.

What does a typical workday look like for you?

I was in the office until March 2020 and I am currently working remotely. I am an audit associate in the financial services division and I am involved in audit for banks, insurance companies, and investment companies. A typical day means managing small jobs in my team. I do a lot of checking up on the more junior members and I carry out client calls. I’m doing a lot of the field work for the reports and feeding back information to my managers.

How has AAT helped you?

I chose a AAT qualifications, because I’d heard from a lot of people who had gone straight into ACCA, that they’d struggled with it, or had dropped out. I knew AAT was a good strong base and was very well regarded. Even if I had decided to complete my AAT Level Three and Level Four and then move into a different profession, I would still have had a good grounding and great qualifications. That would have enabled me to work in a number of different career paths and provided a lot of options for the future.

I was learning on the job, and started at AAT Level three and although there was some presumed knowledge you can quickly pick it up. It is a good level to start on basic understanding of accounts, the way they’re structured, and concepts such as double entry. By combining work and study things start to click more at work. I’m glad that I had a solid understanding, and everyone I know who’s done AAT is really pleased with how prestigious it is.

What skills do you need?

You need to be adaptable and open-minded. I often have to change my plans when something comes up. I used to be the sort of person that likes to stick to a timetable, but then a deadline might come up, and I need to scrap what I had planned and respond to that deadline. So adaptability is really important.

Communication is really important too. I am speaking with CEOs on a daily basis and I have to ask the right questions. I also have to communicate well with my team because audit is a job which involves a lot of teamwork.

It is more challenging to make sure everyone is doing okay when we’re working remotely. I have changed a lot since I was 18 – client calls used to terrify me. Now I’m the one leading the calls and it shows just how much I developed as a person.

Any tips on how to break into the profession?

I knew quite early on that I wanted to work in a financial job. I liked the idea of working in finance in a business environment. My school had good connections with businesses across London, and a lot of people used to come in and do talks.

What is your favourite part of the job?

I definitely enjoy speaking with clients and CEOS. I never thought I’d be having such conversations. It’s really exciting to be speaking to people at board level.

Audit is a role that enables you to learn so much about business in general. You get to see the way businesses work, how they manage debt plus all the aspects of business and how they join together. There are a lot of management decisions and controls. It’s all very interesting, and gives you a real insight into what makes a successful business.

Any tips for breaking into the profession?

Research what you want to do – there are different firms with different cultures, and although they provide similar apprenticeships, you need to find the one that’s right for you. I also found it important to do the AAT qualification. If you go to a firm, and it’s not working you can change firms, and still continue with your AAT studies. When you go to the interview, make sure you understand the firm and its values. Do lots of research in advance.

Where can an AAT qualification take you? The choice is yours

An AAT qualification can open so many doors for you in your career, giving you the change to explore roles in any industry you can think of – from fashion and sport to banking or forensic accounting. After all, every business needs someone to look after its finances.

Find out more

More career profiles:

Unlocking the potential of Apprenticeships: Step 2 – free help from AAT

Posted by & filed under Apprenticeships, Employer newsletter, Start an apprenticeship.

 AAT can supercharge the start of your apprenticeship programme with free advice and guidance.

Once you have decided on the role for your finance apprenticeship, it’s time to act. Your first call should be to AAT so you can gain free help and advice.

This is the best way to get your apprenticeship programme off to a flying start.

AAT can talk with you about suitable qualifications for what you have in mind and how they can be successfully integrated into an apprenticeship programme.

We can also help you understand how to make the workplace skills and behaviours apprentices acquire valuable in the context of your business.

In addition to this we can advertise your vacancy free of charge on the AAT website to support with talent attraction.

Find the right training provider

As you develop a clearer vision of your apprenticeship program, you’ll want to find a training provider who can deliver the apprenticeship for you.

This step is crucial, as the relationship with your chosen provider plays a significant role in the success of your apprenticeship program. Look for a provider who aligns with your timescale and specifications, ensuring a seamless and tailored apprenticeship experience for your business.

Instead of relying on online directories or random searches, AAT can provide you with a curated list of reputable and reliable training providers based on the specific needs of your organisation

Scotland-Specific Guidance

For small businesses based in Scotland, AAT offers additional guidance to help you make informed decisions. You can choose between two types of apprentices: Foundation Apprentices and Modern Apprentices. Foundation Apprentices are typically between 16-18 years old and take their apprenticeship alongside their other school subjects. On the other hand, Modern Apprentices study qualifications while on the job. Understanding the distinctions and advantages of these options will enable you to design a program that perfectly aligns with your specific requirements.

Summary

With AAT’s help, any business – large or small – can unlock the potential of apprenticeships and cultivate a more skilled and productive workforce.

You can reach out to AAT’s team to get advice right now. Or if you want more of an overview of starting your first apprenticeship, you can download our free eBook.

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

Bookkeeping brilliance: how a short course is accelerating DEFRA’s success

Posted by & filed under Apprenticeships, Employer newsletter.

Follow this government department’s journey as they harness the power of bookkeeping to fuel financial excellence and power career advancement.

The Department for Environment, Food and Rural Affairs (DEFRA) plays a vital part in looking after the nation’s heritage by safeguarding the UK’s environment and promoting sustainable food and farming.

It’s a wide-ranging brief covering everything from net zero, climate change and waste to flood defences and plant health. But when the team is not saving the planet, they have another role to play – being good stewards of their budget– especially now that public sector finances are tight.

Recently DEFRA recognised the benefits it could gain from a training program that could level up the financial competencies of its staff members – in particular, its apprenticeship and graduate intake. With a diverse workforce and varying levels of expertise, a comprehensive and accessible course was required to bridge knowledge gaps and promote consistency across the department.

David Atkins, Head of Management Reporting at DEFRA, explains the rationale behind choosing AAT’s Essentials Bookkeeping Course: “We wanted a training solution that would not only provide our staff with the skills required to effectively manage financial operations but also offer flexibility to accommodate their different roles and responsibilities.”

“We’ve got a lot of people on apprenticeships who don’t have a finance background. So the bookkeeping course really gives them that building block.


Essentials bridges the gap

The AAT Essentials Bookkeeping Course is a two-day programme covering key topics in bookkeeping and financial management. Courses are delivered by expert trainers and provide a structured learning path with additional study materials, interactive exercises, and assessments to ensure understanding and retention of the content.

David Atkins says DEFRA found the course proved its worth, “The AAT Essentials Bookkeeping Course is an excellent resource for our staff. It covers all the fundamental principles of bookkeeping and financial management, enabling our employees to develop a strong foundation of knowledge.”

Bookkeeping boost for year-end

DEFRA has arranged the bookkeeping training followed by year-end training just before the year-end itself. This has meant the training has been highly relevant to real world challenges, and employees and employer have quickly seen results.

“It’s benefited our organisation by making sure that we’re well prepared for year-end. Because they understand the accounting principles, they are prepared to collect the right evidence, ask the right questions and collect the right evidence to justify decisions. And we’ve become quite reliant on that.”

Confident staff achieve faster success

Since implementing the AAT Essentials Bookkeeping Course, DEFRA has seen a significant improvement in staff performance and efficiency. Employees are empowered with the necessary skills to accurately handle financial tasks and make informed decisions.

David Atkins says: “Our staff members who have completed the AAT Essentials Bookkeeping Course have demonstrated a heightened level of confidence in their roles. They are now equipped with the knowledge and skills to effectively manage financial records, analyse data, and contribute to informed decision-making.

“Since completing the course, a number have managed to attain promotion, we’ve got a number that have moved on to CCAB (Consultative Committee of Accountancy Bodies) qualifications. The course has really given them a really strong basis for understanding finance, and the ability to solve problems. That really strong start gives them the foundation to move forward quickly.”

AAT Essentials: Bookkeeping

Our AAT Essentials: Bookkeeping course can give your staff a solid foundation in bookkeeping and accounting principles in just two days, improving their financial expertise and operational skills.

Book now

Learn more

As DEFRA continues to prioritise staff development and performance improvement, the AAT Essentials Bookkeeping Course has emerged as a valuable tool for enhancing financial competencies within the organisation.

It’s now a regular part of induction for apprentices, and it’s also used to support graduates recruited directly from university.

The course can benefit any size of business. To find out your organisation could benefit, visit this page.

Career profile: Finance Manager

Posted by & filed under Career profiles.

Being a finance manager requires a deep understanding of how the business works, great communication skills, and a love of figures. Jess Brindle is 23 and finance manager of Social Chain, a digital marketing company in Manchester.

In our interview, she talks about how she was headhunted to become finance manager of a start-up social media marketing company and how her work experience as a teenager helped gain her a dream job.

How did you get into the role of finance manager?

I took 12 GCSEs at school and did really well, as my lowest grade was B. My school didn’t have a sixth form so I went to Sixth Form College with my friends to do my A levels. The plan was for me to study Maths. Further Maths, History and Music, but after two weeks, I dropped out. It just wasn’t for me.

My parents were a bit worried and said I needed to find a job, so I started working in football coaching, because I had been involved in junior football. I was working via my local club going into to schools and teaching kids, and although I enjoyed it I realised after a while that there was not a lot of money in football coaching.

I wanted to move out of my parents’ house and have my own place, but I needed to earn more. So, at 18, I got a job in office admin, and I was working as the receptionist there.

Where can an AAT qualification take you? The choice is yours

An AAT qualification can open so many doors for you in your career, giving you the change to explore roles in any industry you can think of – from fashion and sport to banking or forensic accounting. After all, every business needs someone to look after its finances.

Find out more

Why did you choose AAT?

While I was working there my line manager whom I sat next to was the management accountant and she had done AAT and she suggested that I should study it. I’m good at maths, I love a spreadsheet, which I think is a prerequisite of being an accountant, and so it sounded really interesting.

So I started AAT at 21. I was working full time in the finance department for a company doing basic administration, and then I was doing online classes and studying in the evenings. It was hard work, but if you work full time and you are learning about what you’re actually doing as a job, and then taking that and putting it into practice, it is a really good way of embedding your knowledge. I found AAT extremely useful because it gave me skills to help me with my job.

How did you break into your current career?

I completed AAT Foundation level (Level Two) and Advanced level (Level Three) at that company, and then I was headhunted for a start-up in Manchester called Social Chain. It is a social media marketing company in Manchester and I’ve been there for five and a half years. I moved there when I was 23 and I was recruited because they wanted somebody who was young enough to fit in with the start-up team, but who had work experience. I had been working since I was 16 and not many people had the work experience that I had.

While I have been working at Social Chain I studied for my Professional qualification (Level 4). I did that in the classroom because working at a start-up is hard work with long hours. I needed to be able to concentrate on my study so I did one day a week in the classroom. I finished all the modules and I have now achieved Level 4. I started ACCA last March and I have three exams left to do.

What is your role as a finance apprentice at Social Chain?

I’m now the finance manager, I manage three members of staff. I manage the trend transactional team sales invoices transaction, payroll, and purchase ledger, and I put the management accounts together and submit them to the Financial Controller at the company.

What is a typical day for you?

We are still working from home with a few days in the office, so in the morning I log on and see which clients have paid, and then I let the sales ledger team know who was paid, so that they can start chasing up the invoices. I check in with my finance team and make sure everyone is ok, as we are all still working remotely. Being at home all day can be a bit lonely and so we have a 2pm daily video call. It’s the opportunity for the team to meet up and ask for any help that they need.

What is the most interesting part of your job?

Month end is the most interesting time for me as I have a lot of month end tasks including analysing the figures checking that they all balance.

Why did you decide to follow this career route?

It was the recommendation from my first manager. I wish school had told me that that was an option. I didn’t know that you could do an apprenticeship for law or accounting. School had implied that apprenticeships were for people who were doing manual work. A lot of people come to AAT as more mature students and that can work well for them too.

Any tips for breaking into the profession?

AAT is a great foundation. They are extremely helpful when it comes to tips for working and studying at the same time. Although it sounds like hard work it does mean that you’re embedding the learning. Whereas an accountancy and finance degree doesn’t give you the real life experience of putting things into practice in the real world. When I was working I was asking people how we do some of the procedures that I was learning about.

What is the most surprising part of the job?

I am on the Culture Committee at Social Chain. This is a group of employees and the HR and senior leadership team. We give feedback on how the company is run, and how it could be run better. It’s really important to get involved in things other than just your area.

The most interesting part of my role is understanding how other teams work. Communication between departments helps people understand the Finance department’s points of view as well. We are sometimes seen as the “Fun Police” and seen as the department that says no, that asks where your receipt is, and so it helps if those departments understand what we do and why we do it.

There is another aspect of my role which is around education and helping people take control of their own personal financial future. Recently I did a talk on auto-enrolment and pensions. We are a young company and it is good to encourage younger people to pay into a pension. Sometimes they feel that they’d rather have the money now, but I can educate them on why it’s important. The sooner you start to save for a pension, the better. That is not taught at school either, so doing a role like that and helps people and is rewarding.

Where can an AAT qualification take you? The choice is yours

An AAT qualification can open so many doors for you in your career, giving you the change to explore roles in any industry you can think of – from fashion and sport to banking or forensic accounting. After all, every business needs someone to look after its finances.

Find out more

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How firms are managing increasing workloads with fewer staff

Posted by & filed under Members, Recruitment, Run your business.

As the industry struggles to recruit, how are firms avoiding overworking current employees?

Some accountancy firms are facing a double whammy when it comes to staffing and workload. With many firms struggling to recruit, they’re also juggling increased workloads with fewer staff on their books.

Research last year by accountancy wellbeing charity CABA showed that over half (55%) of UK accountants are suffering from work-related stress and burnout, in comparison to 41% of staff in other industries.

Workloads have increased considerably in recent years, partly due to increasingly complex tax and financial legislation as well as pressures placed on accountants around compliance, reporting and stricter due diligence and economic sanction laws. Widespread investment in technology and automation also reduced appetites to train apprentices and entry-level starters as a way to cut costs after the 2008 financial crisis. But this, along with an ageing population and large numbers of people entering retirement and leaving the workforce, has created significant skills gaps and both ends.

Brexit-related legislation along with the fall-out from Covid-19 and current economic instability have added their own pressures.

All this is on top of an industry-wide recruitment crisis.

We recently asked accountants if they could compete with larger firms on salary, thereby ensuring equal access to talent pools which would ease some of these issues. It was a mixed bag, with some firms saying they could offer competitive salaries due to micro teams, small overheads and competitive clients fees, while others needed to look at the wider remuneration proposition to attract talent.

This time, we’ve asked accountants about the practicalities of managing an accountancy firm with fewer staff while maintaining workload.

Outsourcing frees up permanent staff to respond to client demand and better manage workflow

Jonathan Bregman, Director, Primera Accountants Ltd

I’ve been in practice for over 26 years and have never experienced recruitment issues as in this current market. We’re facing a perfect storm of a lack of talent and lack of supply across all levels, as people assess their lifestyles and look for increasing opportunities to re-skill or change direction in their lives. 

As a firm, we coped exceptionally well during COVID because we could harness cloud-based software. And whilst we do have a hybrid working approach, collaboration and communication in the office is invaluable.

We are incredibly fortunate the practice continues to grow organically, but we are sensitive to not overstretching ourselves at the risk of diminishing attention to detail and our client-led focus.

We have a dedicated and loyal team with a low turnover of staff. This continuity and familiarity helps with the planning, allocation and implementation of workloads. We also utilise the right technology, such as IRIS Practice Management. 

We also work with outsourcing companies and we’ve spent significant time training and developing these teams. This has allowed the UK team to spend more time managing the job flows and dealing with client queries.

Previously, we could not cope with the level of work and the outsourced team became an integral part of our operations. We did not, and still do not, look at this as a way of increasing profitability. Our sole focus has been and always will be ensuring we can service our workloads and not sacrifice quality. 

Verdict: Outsourcing frees up permanent staff to respond to client demand and better manage workflow.

Being nimble and process-driven improves workload management

Steve Aston, FCCA, Director, AGS Accountants and Business Advisors Ltd

For many years, we’ve been successfully bringing through junior employees via the training academy model and training and supporting them as they move up the career ladder, so it’s actually unusual for us to need to recruit at a senior level.

As a firm, we’re ‘process driven’ which makes workload management a lot easier. We are nimble in being able to re-work processes when we need to. For example, we recently restructured the onboarding processes to ensure greater efficiency by resourcing up the admin function rather than using fee earning capacity to onboard a new client. We constantly review processes and adopt the “lean efficiency” model to our working practices.  Where appropriate, we can segment workflow into relevant departments and teams which smooths out the workload really effectively.

Verdict: Being nimble and process-driven improves workload management.

Software choice is key to minimising workloads

Fozia Muddassir BSc., FCCA, FCA, Partner, Reddy Siddiqui LLP

The accountancy sector has had a lot to deal with in recent years and this has increased existing workloads. We are a training firm so we are regularly approached by accountancy students and have therefore not struggled to recruit. Holding a sponsor license has also meant we have been able to recruit students from further afield, plus we’ve also recruited via the apprenticeship scheme.

Automation and efficiency are key to managing and minimising workloads, so we’re constantly reviewing processes and software for both internal and external use. With increasing AI and RPA integrations, it is possible to reduce time on manual tasks, making things work more seamlessly. Our software choice has to manage all the different facets of running a practice, whether it’s dealing with compliance work, managing workflows, practice management, document management, getting practice KPIs and reporting or an integrated client portal.

Verdict: Software choice is key to minimising workloads.

Don’t get caught out as AML moves up the agenda

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

Scrutiny of Anti-Money Laundering measures is intensifying, and accountants are in the firing line for compliance failures.

The money laundering threat landscape for accountants is evolving with tougher sanctions and new economic crime legislation introduced in response to Russia’s invasion of Ukraine, and UK regulators imposing a record number of fines for money laundering failures.  

Among the new obligations for accountants to consider are new rules introduced in The Economic Crime (Transparency and Enforcement) Act 2022 that require overseas entities owning property in the UK to identify their beneficial owners. 

And the identity of company directors and people with significant control will soon need to be verified by Companies House, assuming the follow-up Economic Crime and Corporate Transparency Bill receives Royal Assent later this year.

Russian sanctions

At the same time, accountants are having to grapple with restrictions on services that firms can perform to persons connected to Russia. 

In July 2022, the government prohibited the provision of certain services, including ‘accountancy services’ and ‘management consultancy services’, to Russian companies through an amendment to the Russia (Sanctions) (EU Exit) Regulations.  

“An important matter for us currently is clients and individuals/entities connected to Russia,” Tamara Howe, director of financial crime prevention at HW Fisher, said.

“We have had to consider the services we are providing when people are connected to Russia and work out where the risks are in our client portfolios and disengage with clients where we may have been providing services to people we can no longer act for under the new restrictions placed on accountancy firms,” she said.

Significantly, the Economic Crime Act introduced a new strict liability test for financial penalties, which means there is no longer a requirement for firms to have knowledge or even a reasonable suspicion that sanctions are being breached.

The change will make it easier for the Office for Financial Sanctions Implementation to impose significant fines.

London laundromat cleaning up its act

The UK was perceived as a hub for money laundering before the war in Ukraine. London was described as a “laundromat” by Parliament’s Intelligence and Security Committee. And the National Crime Agency estimates that money laundering is in the hundreds of billions annually.  

However, it is moving up the agenda. A survey by AML software provider First AML found that 70% of accountants and lawyers are more concerned about money laundering since the war in Ukraine and sanctions began. 

The core reason is the increased focus on customer transparency and ethical client onboarding, followed by external risks such as the fallout from Ukraine, and the increased risk of fines, according to the survey.

Increased scrutiny of institutions

Indeed, financial watchdogs in the UK are cracking down on AML failings. According to data from software company Fenergo, the total number of fines issued more than tripled last year, with 14 fines issued in the UK in 2022, up from four in 2021.  

The largest fine issued by the Financial Conduct Authority (FCA) was to Santander, which was hit with a £107.8 million penalty in December after the regulator identified “serious and persistent gaps” in the anti-money laundering controls at its business banking operations. 

The FCA said Santander’s UK arm had inadequately overseen its AML systems, which hindered its ability to verify information provided by 560,000 customers about their businesses between December 2012 and October 2017.

As part of its role to protect consumers and the market, the FCA has repeatedly stepped in and penalised firms for poor management of their AML systems. For example, it has fined Standard Chartered Bank £102.2 million and HSBC Bank plc £63.9 million.

And NatWest was fined £264.8 million in 2021 following convictions for three offences of failing to comply with money laundering regulations. It was the first time the FCA has pursued criminal charges for money laundering failings.

…and accountants

Although the fines relate to financial institutions, accountants are no less in the firing line for AML compliance failures. HM Revenue & Customs said in June that it had fined 83 accountancy service providers a total of £600,000 for breaching anti-money laundering regulations between 1 July and 31 December 2022.

Overall, 240 UK businesses were named by HRMC and fined a total of £3.2 million for being in breach of the Money Laundering Regulations designed to prevent criminals from exploiting illicit cash. In addition to the named businesses, another 179 companies received smaller fines totalling more than £200,000 for rule breaches.

Xpress Money Services Ltd, a money service business based in London, was hit with a large fine of £1.4 million for failing to carry out risk assessments, not having appropriate anti-money laundering controls, and failing to conduct proper due diligence checks.

HMRC has a range of enforcement powers that it can use for businesses that do not comply with the Money Laundering Regulations, including civil penalties, criminal proceedings and removal from the register.

Martin Cheek, managing director at AML software provider SmartSearch, warned that “with the UK Government recently renewing its focus on preventing fraud and given the eye-watering fines and reputational damage which come with money-laundering breaches”, firms need to be on the lookout for criminals intent on disguising the proceeds of illegal activities as legitimate funds.

“They will often use a variety of tactics to launder money, like structuring transactions to avoid detection, using shell companies and trusts and creating false identities,” Cheek said.

The announcement comes as professional supervisory bodies are stepping up their scrutiny of accountants’ AML policies and procedures. The Office for Professional Body Anti-Money Laundering Supervision, which oversees 25 accountancy and legal professional bodies, said in April it had identified “significant weaknesses” in their oversight.

However, practitioners should still be wary of being hit with fines by their professional bodies, including AAT. The Institute of Chartered Accountants in England and Wales said in its April 2023 disciplinary update that it had reprimanded and fined a sole practitioner £14,700 for failing to provide evidence of his compliance with AML procedures.

Risk assessments  

All firms that are within the scope of The Money Laundering, Terrorist Finances and Transfer for Funds Regulations 2017 must conduct a firm-wide risk assessment, which includes taking appropriate steps to identify, assess and mitigate money laundering or terrorist financing.  

Key steps include undertaking customer due diligence, implementing internal controls, providing staff training, creating an AML manual, and monitoring and reporting suspicious activity both internally to a nominated officer and externally to the NCA.  

“Firms should conduct periodic risk assessments by taking a look at various high-risk factors like a client’s geographical location, industry, the products or services offered and so on,” Cheek said.  

Cheek also says there are three key tell-tale signs accountants should look out for when trying to prevent money laundering: 

Firms must report issues as soon as is practical in instances where a client “behaves oddly or makes uncharacteristic requests, asks you to make financial arrangements which don’t make sense commercially, or if they ask you to provide services which are outside your area of expertise” on multiple occasions.

High-risk clients 

Risk assessments must also take into account publicly available information, including the National Risk Assessment of Money Laundering and Terrorist Financing 2020 and the Accountancy AML Supervisors’ Group risk outlook published in April 2022. 

Among the clients which the AASG regarded as higher risk were those seeking anonymity or undue secrecy; new clients outside of a firm’s normal client base; politically exposed persons; cash-based businesses; high net worth individuals; and property transactions with unclear sources of funds. 

Cash-intensive businesses such as money service providers – such as currency exchanges and money-transfer services – are of particular risk as it’s much harder to track the source of cash and its movements. This makes it much easier to integrate the cash proceeds of crime into legitimate income or payments. 

Services identified as higher risk in the AASG risk outlook included trust and company formation services, or TSCPs, that can be used to enable the laundering of millions of pounds, conceal the ownership of criminal assets, and facilitate the movement of money to secrecy jurisdictions. 

What to watch out for 

“Firms need to be making sure that those services aren’t being exploited to conceal any beneficial ownership and they are not forming shell companies to facilitate money laundering,” said Donna Drew, AAT’s Professional Standards Policy Development Manager. 

Drew warns firms to guard against what she describes as the “familiarity threat”.

“You shouldn’t make assumptions about your client. Just because they have their business in the UK, or because you’ve known them for a long time, doesn’t mean they can’t still pose a risk,” Drew said. “You should always carry out a regular risk assessment of each client to determine the level of risk they pose to your firm”. 

Tamas Kadar, CEO of online fraud prevention platform SEON, said accountants need to be wary of the potential for involvement in the layering phase of money laundering – which involves the complex movement of funds through various transactions and accounts to obscure their illicit origins.  

“Fraudsters, through numerous ways, have the capability to get under an accountant’s skin and are asked to create or manipulate financial statements, falsify invoices, or engage in other deceptive practices to facilitate this process,” Kadar said.  

Additionally, accountants may face risks related to the placement phase of money laundering. This phase involves the physical placement of illicit funds into the legitimate financial system.  

“Accountants who handle client funds, such as trust accounts or escrow services, need to implement robust controls to prevent the commingling of illegal proceeds with legitimate funds,” Kadar said.

Empowering student wellbeing: AAT’s new wellness learning pathway

Posted by & filed under Employer newsletter.

AAT understands it is vital to support the wellbeing of our learners and members. We believe it’s essential to provide the tools and resources for all aspects of learning. That’s why we’ve developed a dedicated module on our Lifelong Learning Portal to support their mental wellness journey.

The module we’ve created offers a range of practical strategies and activities to help your students take care of their mental wellbeing. From exploring the benefits of yoga to understanding the power of present-moment thinking, our module provides them with a starting point for cultivating a positive mental state.

We also know that it’s crucial for them to understand the importance of looking after their wellbeing. That’s why we’ve included an insightful interview with Wellbeing Coach Megan Koprash. In this interview, Megan shares her expertise and sheds light on why maintaining wellbeing is so vital in today’s fast-paced world.

Our module is just the beginning, and we are continuously working to expand and enhance its content. We strive to provide ongoing support and relevant resources that address the evolving needs of your students.

What’s included

Here’s a glimpse of what’s included in our module:

  • Interview: An Introduction to Wellbeing
  • Video: Mental Wellbeing – The Science Behind It
  • Video: Body Scan
  • Video: An Introduction to Present Moment Thinking
  • Video: 5-Minute Chair Yoga Session
  • Video: 10-Minute Floor Yoga Session

By making these resources available to your students, we aim to empower them with the knowledge and skills needed to prioritize their own mental health. With their wellbeing at the forefront, your students will be better equipped to excel academically and personally.

Students can access the pathway by following this link (requires active registration on the Learning Portal).

New wellbeing learning pathway

AAT have created a module on our Lifelong Learning Portal dedicated to supporting your wellbeing journey.

Watch now