Getting

into

Accountancy

(A brief guide into Accountancy and related careers. More detailed information can be found on various professional websites)

Within the financial sector there are many different roles. If you are interested in becoming an accountant or accounting technician, then the information could help you decide which job role is right for you and how to get in.

Chartered Accountants

Chartered accountants provide trustworthy information about financial records. This might involve them in financial reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency, or accounting systems and processes.

Accountants aim to maximise profitability on behalf of their client or employer, and work in a variety of settings, including public practice firms, industry and commerce as well as in the not-for-profit and public sectors.

You do not have to have a degree in accountancy to become an accountant, graduates from all subjects from Anthropology to Zoology can and do become successful accountants.

Typical work activities

The role of a chartered accountant can cover many aspects of finance work, including:

In public practicetypical work activities include;

Liaising with clients (individuals or businesses) and providing financial information and advice;

Reviewing the company’s systems and analysing risk;

Performing tests to check financial information and systems;

Advising clients on tax planning (within current legislation to enable them to minimise their tax liability) and tax issues associated with activities such as business acquisitions and mergers;

  • maintaining accounting records and preparing accounts and management information for small businesses (accountancy);
  • advising clients on business transactions, such as mergers and acquisitions (corporate finance);
  • advising clients on areas of business improvements, or dealing with insolvency;
  • detecting and preventing fraud (forensic accounting);
  • managing junior colleagues.

In commerce and industry, and the public and not-for-profit sectors, typical work activities include;

  • liaising with internal and external auditors and dealing with any financial irregularities as they arise;
  • producing reports and recommendations following internal audits or public-sector audits;
  • preparing financial statements, including monthly and annual accounts;
  • preparing financial management reports, including financial planning and forecasting;
  • advising on tax and treasury issues;
  • negotiating terms with suppliers.

Salary

Starting salaries vary considerably, depending on size and location of firm.

Salaries for trainees can range from £12,000 to £18,000 (for school leavers) and £18,000 to £28,000 for graduates. However, they could be higher in London or smaller in small regional firms.

  • Typical salary for a newly qualified accountant is £26,000 - £50,000+, whilst the average for a chartered accountant in a senior role is up to £100,000.
  • Salary packages may also include higher benefits such as bonuses, profit sharing schemes, medical insurance, pensions and car allowances.

Figures are only intended as a guide

Entry Requirements

The usual way into private accountancy practice is via a three year graduate training contract at a professional services/accounting firm. Most firms have an annual intake. For this you will usually need a degree (typically a 2:1 or equivalent). You do not need a degree in business administration, maths or any specific subject, as graduates in all subjects from Anthropology to Zoology can and do become successful accountants.

What is more important is a good academic record, particularly at A levels (2Bs and a C), good communication and team working skills, determination and motivation. Numeracy is important and many employers would require a good GCSE in maths and a good standard in the numeracy tests which are likely to form part of their selection.

Alternatively, you may be able to enter private practice accountancy after completing an accounting technician qualification and then start your professional accountancy training.

Whatever route you take, the training will follow a similar pattern with each of the professional bodies. This includes passing a series of exams and complete three years of supervised work experience.

What are the non-academic requirements?

Competition for training contracts is fierce and the selection process is rigorous. It is very helpful to have relevant pre-entry work experience, e.g. holiday work, work placements, shadowing or working in a finance related area.

As well as academic requirements, potential accountants will need to show evidence of the following;

  • a good understanding and awareness of business;
  • a high level of accuracy and attention to detail;
  • self-motivation and commitment, in order to combine working with studying;
  • good communication and interpersonal skills;
  • the ability to explain technical financial information clearly;
  • honesty;
  • discretion with confidential information;
  • organisational and time management skills;
  • a methodical approach;
  • IT proficiency;
  • strong analytical and problem solving skills;
  • strong mathematical and computer skills;
  • leadership qualities and effective team working skills;
  • motivation and initiative;
  • integrity and trustworthiness.

Training and continuing professional development

To be a qualified accountant, covering the full range of accountancy services including audits, you must qualify with one of the following professional bodies;

Association of Chartered Certified Accountants (ACCA)

Institute of Chartered Accountants in England and Wales (ICAEW)

Institute of Chartered Accountants of Scotland (ICAS)

Entry requirements for each professional body will vary, so you will need to see their individual websites for details.

You may be exempt from some exams in the first year if you have relevant qualifications such as accountancy or business degree, or accounting technician qualifications.

It is usually your employer who will choose the most appropriate accountancy qualification, and may include the option to study full or part-time or by day release at a local college or even long distance learning.

Most qualifications cover a similar syllabus including;

  • Financial management
/
  • Financial accounting

  • Financial reporting
/
  • Audit and assurance

  • Taxation
/
  • Business strategy

  • Management information
/
  • Accounting

  • Law
/
  • Assurance

  • Principles of taxation
/
  • Business and finance

The training involves gaining the relevant work experience and passing two stages of professional examinations, which can take between 3-5 years to complete.

Once you have qualified, you will be required via your employer and professional accountancy body to keep your skills and knowledge up to date. Each professional body runs Continuing Professional Development to enable accountants to keep up to date.

All chartered accountancy qualifications have equal status and are equally recognised, and all lead to the designation ‘chartered accountant’.

Hours

In a full-time job you would typically work standard office hours Monday to Friday, possibly longer at busy times. The demands of the job will very much be influenced by the clients you serve, so the end of a financial year can be very very busy.

Opportunities/Career Development

The majority of chartered accountants train in public practice and the first three years are devoted to achieving the CA (Chartered Accountant- Institute of Chartered Accountants) or ACA - (Associate of ICAEW) qualification. The CA or ACA qualification provides the foundation for many different career routes, and progression is structured. An accountant may become a manager after two years and a senior manager three years after that.

Progress to partnership is competitive, but achievable between 8-15 years.

You can work in companies ranging from small local practices to large international accountancy firms. The qualification opens doors to general business management careers or creates the opportunity to set up independently as a sole practitioner.

Jobs may be advertised in the local and national press, industry magazines and by financial recruitment agencies.

Accounting Technician

Accounting Technicians work in all areas of finance, usually starting as a support role within a firm of accountants or in the account department of finance organisations in industry, commerce or the public sector.

AAT (Association of Accounting Technicians) is the UK’s leading qualification and membership body for accounting staff. AAT award around 90% of all vocational qualifications in accounting and are sponsored b the professional accounting bodies CIPFA, ICAEW, CIMA and ICAS.

It is the role of the technician to keep accurate financial accounts for all types of businesses.

Typical work activities

  • processing and paying invoices;
  • assisting with the preparation of accounts;
  • recording receipts and payments;
  • managing staff payroll;
  • preparing and checking ledger balances and other monthly and yearly accounts.
  • completing and submitting tax returns, VAT returns and National Insurance Contributions
  • monitoring company expenses
  • using computerised accounting systems.
  • liaising with other professionals in the field.

With experience you might take on supervisory responsibilities and more complex tasks, such as:

  • drafting financial reports;
  • planning and budget control;
  • helping qualified accountants with audits;
  • consultancy

Different financial sectors require specialist knowledge. This may determine which areas a technician chooses to specialise in. More senior positions include finance manager, budget control and internal auditor.

Self-employed accounting technicians provide a range of accountancy services to businesses. These tend to be in specialist areas of accounting and may include:

  • advising on budgets;
  • advising on taxation issues;
  • calculating end-of-year-accounts;
  • consultancy.

Skills and Knowledge

  • good spoken and written communication skills;
  • an interest in business and finance;
  • good organisational skills;
  • the ability to solve problems and analyse figures;
  • a high level of accuracy and attention to detail;
  • confidence working with numbers
  • the ability to work to strict deadlines;
  • honesty and discretion.

Entry Requirements

It is important to feel confident with numerical work and using computers. It may also be helpful to have previous experience of office work.

Although entry requirements may vary, employers usually require at least 4 GCSEs A-C including maths or a similar level of qualification.

It is possible to qualify as an accounting technician through schemes run by either the Association of Accounting Technicians(AAT) or the Association ofChartered Certified Accountants(ACCA).

Training and Development

It is possible to train at a college or approved training centre, by distance learning or online, at home or in the workplace. Instead of exams you will take a series of computer based assessments that reflect practical workplace tasks.

AAT

Once you’ve completed the introductory level, you’ll be awarded the AAT Level 2* Certificate in Accounting. There are five mandatory units at the introductory level. These include: Basic costing; Computerised accounting; Working effectively in accounting and finance; Processing bookkeeping transactions and Control accounts, journals and the banking system.

What sort of job could I expect after completing the introductory level?

• Accounts Administrator

• Accounts Assistant

• Accounts Payable Clerk

• Bookkeeper

• Payroll Administrator

• Payroll Officer

• Purchase/Sales Ledger Clerk

• Tax Assistant/Trainee

• Trainee Accounts Technician

Once you’ve completed the intermediate level, you’ll be awarded the AAT Level 3* Diploma in Accounting. There are six mandatory units at the intermediate level. These include: Accounts preparation; Preparing final accounts for sole traders and partnerships; Costs and revenues; Professional ethics; Indirect tax and Spreadsheet software.

What sort of job could I expect after completing the intermediate level?

• Accounts Assistant

• Accounts Payable and Expenses Supervisor

• Accounts Payable Clerk

• Assistant Accountant

• Audit Trainee

• Bookkeeper

• Corporate Recovery Analyst

• Credit Controller

• Finance Assistant

• Insolvency Executive

• Payroll Administrator

• Payroll Supervisor

• Practice Bookkeeper and Payroll

• Tax Accountant

• Tax Assistant

Once you’ve completed the advanced level, you’ll be awarded the AAT Level 4* Diploma in Accounting, and be a fully qualified Accounting Technician. There are four units at the advanced level. These include Financial statements; Budgeting; Financial performance and Internal control and accounting systems. You’ll also have the opportunity to choose two specialist units to study. There are five options for these specialist areas including Business tax; Personal tax; External auditing; Cash management and Credit control.

What sort of job could I expect after completing the advanced level?

• Accounts Payable and Expenses Supervisor

• Assistant Financial Accountant

• Commercial Analyst

• Cost Accountant

• Fixed Asset Accountant

• Indirect Tax Manager

• Payments and Billing Manager

• Payroll Manager

• Senior Bookkeeper

• Senior Finance Officer

• Senior Fund Accountant

• Senior Insolvency Administrator

• Tax Supervisor

• VAT Accountant

More detailed information can be found on the AAT website: you can email or phone the student recruitment team

Tel: 0207 397 3002

CAT

The CAT (Certified Accounting Technician) scheme offered by ACCA (Association of Chartered Certified Accountants), is a route that combines study and practical experience. The scheme involves studying for nine papers split into three levels; beginners intermediate and advanced.

  • candidates will need to show evidence of the following:
  • strong written and oral communication and IT skills;
  • the ability to work in a team, often alongside accounting professionals;
  • the ability to multi-task and manage your time;
  • high-level numerical skills;
  • good attention to detail;
  • the ability to work accurately and methodically with numbers.

More detailed information can be found on the ACCA website:

Salary and Conditions

Starting salaries for trainee technicians are in the range of £15,000 - £22,000, and once qualified with experience, a technician may earn £16,000 - £32,000.

Salaries will vary with employers and there will be regional variations.

Working hours tend to be 35-39 hours per week, with weekend and overtime as especially busy periods.

Figures are only intended as a guide line.

Accountancy - Where Can I Find More Information?

Institute of Chartered Accountants in England and Wales (ICAWE)

Tel: 01908 248 250

Association of Chartered Certified Accountants (ACCA)

29 Lincoln’s Inn Fields

London

WC2A 3EE

Charted Institute of Management Accountants

The Chartered Institute of Public Finance and Accountancy

Vacancy Information

Deloitte

Ernst and Young

KPMG

PriceWaterCoopers

AccountancyAgeJobs

Accountant Careers

**************

Accounting Technician

Association of Accounting Technicians (AAT)

Association of Chartered Certified Accountants (ACCA)

Financial Skills Partnership

Apprenticeships-

School Leaver Schemes-