The shortage of newly qualified accountants is creating a real talent gap and imbalance in the workforce, according to the latest Reed accountancy and finance salary guide.
Reed’s Alan Myers said this shortage is partly due to disruptions in professional training during the pandemic years, as training contracts were delayed and professionals chose alternative career paths.
It all means there is a surplus of senior professionals, but insufficient entry-level talent to sustain longterm growth. Myers felt that addressing this gap “will require renewed focus on training and development to ensure a robust pipeline of talent for the future”. Firms that prioritise upskilling are more likely to retain their workforce and maintain a competitive edge in the marketplace.
Dr Ian Gregory, CTO at Advancetrack, said that 74% of accounting firms are struggling daily with staff shortages, and 42% of partners are working an additional day every week just to keep their heads above the water. He said the AdvanceTrack
Accounting Talent Index found while three-quarters of firms reported significant staff shortages, some 20% still had no concrete plan to address it.
The real issue, however, is the undergraduate and postgraduate accounting enrolment pipelines.
The Talent Index found that between 2010 and 2023 domestic student enrolments into tertiary accounting programmes declined by an average of 56% across the UK, US (61%), Canada (54%) and Australia (51%).
The Accountancy Talent Index
said: “To call the talent crisis an existential threat is far from a shrill overstatement. Accountants and the accounting profession underpin the trust which sits at the foundation of global capitalism. Without them it is more than possible that the entire system could collapse.”
This is a global concern. Joanna Perry (pictured) from Australia recently posted on LinkedIn: “We are facing a massive talent crisis in accounting and nobody is talking about it.”
She feels the reality is we’re
ACCA MARCH EXAM FEEDBACK
The ACCA March exams have finished, so where were the problem papers this time around?
Well, it appears no one liked sitting the tax papers. One in four of those sitting the TX and ATX exams this time around said they had a ‘disaster’, according to the Open Tuition Instant Poll.
One TX sitter described their
exam as ‘just crazy’, another said it was ‘brutal’.
For ATX sitters the exam was ‘quite hard’ and ‘shocking’, all at the same time. What really concerned one sitter was the unusual nature of the exam.
that while the ACCA does not release papers anymore it is almost impossible to work out just how hard papers really are. “I really do think it is time the ACCA released the full papers again,” he ventured.
heading towards a 3.5 million global shortage of accountants in 2025.
This, she stressed, isn’t a staffing problem, it is a business crisis waiting to happen. And, Perry said, it is time to reimagine the entire profession.
She said we need to show young professionals the true scope of modern accounting careers (‘Make Accounting Great Again’).
Perry feels the shortages mean unprecedented opportunities for students. “You won’t just find a job – you will have your pick of roles, industries and work styles.”
As she explained: “The talent crisis in accounting isn't coming – it’s here.” That LinkedIn post already had over 8,000 likes, 879 comments and 748 reports when we saw it.
In the US, former CFO Howard Katzenberg said companies there are raising accountants’ salaries by over 10%. With many struggling to find them he claimed major firms like EY are throwing money at the problem: “EY pledged $1bn to boost salaries,” he said. For him the bottom line is simple: rare skills will equal higher salaries.
AFM and SBR.
At the other end of the scale there were mixed emotions from those sitting the SBL exam, but with an ‘OK’ rating of 63% in the Open Tuition Instant Poll, most sitters thought the exam was ‘alright’. One sitter even said: “I thought it was quite a good paper.”
AA was deemed another ‘easier’ paper this time around.
A leading tutor told PQ magazine
The other papers that student admitted they struggled with were
Check out page 17 for all the feedback.
TAKE YOUR PLACE AT THE FOREFRONT OF ACCOUNTANCY AND FINANCE
IN THIS ISSUE
A note from the Editor
It has been another busy month at PQ Towers. I have been out and about talking all things AI at Northeastern University London’s apprenticeship event, and was billed as a ‘special guest’ at Queen Mary University’s sustainability talk!
Then it was off to our joint roundtable with Rogo to talk all about the growing importance of those ‘soft skills’. You can now watch the roundtable discussion at https://getrogo.com/pqwebinars/.
Then there was a little matter of the PQ magazine awards. We have found a fab venue – Salsa Temple (read more about that on page 4), and we had to deal with over 3,000 entries. In fact they broke our email system, and we have to apologise for that. We received all the entries, but the email system didn’t like being so overworked.
Hopefully, we will see all those shortlisted on awards night, which is 28 April this year. You will need to keep watching our website for a first look at who made that shortlist.
In the news this month we take a look at the ACCA March exams, PwC Israel being fined over exam cheating, and worrying stats about university student’s anxiety and depression.
We have some great features, too. You can read all about the CASSL ball, what will be occurring at Accountex this year and FRC’s Going Concern changes.
Graham Hambly, Editor and Publisher, PQ magazine
4 Bupa anxiety survey
One in 10 university students say they feel ‘constantly anxious’, poll finds
6 PwC exam cheats
PwC Israel sanctioned by US regulator over cheating in internal exams
8 International standards
IASB issues major update to IFRS for SMEs
9 Audit in crisis
Two-thirds of audit professionals want to leave their position in the next year
10 NAO report
Local government finances are becoming unsustainable, says National Audit Office
12 Tech news
Why there’s no functioning finance system at Birmingham City Council
Features, etc
14 Have your say
Where are the stats on diversity when it comes of pass rates?; ACCA needs to sort out exam hall tech issues; and in praise of Mark Foley. Plus our social media round-up
17 ACCA exam feedback
What did those actually sitting the March exams think of them?
18 CIMA spotlight
Why creating the right environment for your CGMA exams is vital
20 New FRC guidance
FRC has provided an ‘explainer’ on its update to going concern reporting
21 ACCA spotlight
Celebrating International Women’s Day
22 A question for Tom Tom Clendon explains how an organisation should account for finance raised via crowdfunding
23 AAT exams
Everything you need to know about tax points, relevant to the level 3 Tax Processes for Business unit
24 You shall go to the ball! CASSL travels back to the ‘Roaring Twenties’ for a night of fun and frolics
25 Study tips
Rob Sowerby believes by keeping it simple you can pass even the hardest accountancy exams
26 An ethical dilemma
When it comes to disclosing personal information, what can (and can’t) you do?
27 Risk management
We explain what is meant by risk and risk management in a business scenario
28 Accountex 2025 PQ magazine to partner accountancy’s leading expo, which takes place in London in May
30 CIPFA spotlight
How the institute’s reforms can fix the SEND system, which is reaching crisis point
32 Your career
Four practical tips for overcoming anxiety and succeeding in your job search
33 QuickBooks expo
Software giant uses London Get Connected event to announce major product updates
34 IFA spotlight
The key challenges and opportunities that lie ahead
35 Careers
Guidance and education is lacking when it comes to GenAI, survey finds; more great advice from our Agony Aunt; and PQ’s Book Club review
36 Fun
The lighter side of life – and accountancy
The columnists
Lisa Nelson Why ethics must be a central tenet throughout your career4
Robert Bruce Trump’s ESG stance is leaving US isolated 6
Prem Sikka Who benefits when an individual buys shares? 8
Anna Kate Phelan Exam assessment must reflect evolving tech 10
Hannah MacDonald Advocating for highly ethical workplace cultures 12
LISA NELSON
Why ethics must be central to your career
Ethics isn’t just a theoretical topic in your accountancy qualification: it’s the living, breathing heart of our profession. It is one of few topics in your qualification that will be highly relevant no matter what level of seniority you are, the job role you are in or the stage of your career. It’s tempting to think you will only need to address ethical issues once you’re more senior, but the truth is that ethical decisions are made at every level, every day.
In the Carillion case, the respondents to the case included an assistant audit manager who, at the time of the events, was a part qualified accountant. Ethical responsibility isn’t just for those at the top. Even as a more junior accountant or auditor you have a duty to uphold professional standards. It’s about developing your ability to think independently, to question assumptions and to speak up when something doesn’t feel right. So remember, when studying ethics it isn’t just about memorising rules to pass an exam; it’s about building a strong moral compass. Sometimes doing the right thing means challenging the status quo, even if it’s uncomfortable. Your career in accountancy isn’t just about numbers; it’s about building trust.
Kaplan
CIMA study support
CIMA has reminded its students they are not alone with their CCMA study. Remember, the CGMA Study Support Diagnostic tool offers personalised support services and answers the 10 issues candidates battle with most.
Maybe you are struggling to recall the knowledge, or don’t feel supported and don’t know who to ask for help? Well, CIMA will point you in the right direction.
And if you need more then you can opt to get some one-to-one
Students battling anxiety
One in 10 university students say they feel ‘constantly anxious’ because of exam stress, money concerns and the difficulty of juggling social life and study.
A Bupa poll of 1,000 current and past students found nearly half (43%) were consistently experiencing anxiety during their academic journey. A dread of failing, social integration issues and the daunting pressures surrounding life after graduation all add to that anxiety.
A staggering 55% confessed to having moments where they doubted their educational future and contemplated quitting their
Time to Salsa!
We can finally do the big reveal, and tell you where we are holding the 2025 PQ magazine awards night. This year’s celebration of everything good in accountancy education will be taking place at Salsa Temple, which is located on London’s Embankment, right next to the River Thames.
Our independent judges now have all your entries and will whittle these down to our final
courses. The survey found first and final years were particularly stressful for students, with the second term deemed most
shortlist. If you make the shortlist then you will be invited to our 22nd awards night.
We can reveal that we had a record number of entries this year – they came in in their thousands. Although, sadly, some entrants didn’t read the application process – we needed more than a ‘they are the best’ to get on the shortlist.
difficulty, because that is when the reality of student life hit.
Bupa’s Medical Director, Dr Naveen Puri, said: “Many think students have it easy – and say it is the best time of your life – but it can be a very stressful and worrying time for those who may be feeling anxious about how to deal with their course, manage finances or simply be away from home.”
Coinciding with Bupa’s launch of its new health subscription service, the research emphasises the critical need for students to have accessible mental health and medical care.
We will unveil the full shortlist in next month’s issue, but watch our website because it will appear there first – www.pqmagazine. com
The rise of ‘soft skills’
Having technical skills are vital, but if you don’t have the professional skills you are not going to make it as a professional accountant, explained ICAEW’s Helen Powling at our recent roundtable event.
The ‘Accountants… time to power up your employability skill’ roundtable looked at the rise and rise of the demand for accountants with ‘soft skills’, and ACCA’s Jamie Lyon said developing your networking skills and personal
support, too. Go to https://bit.ly/3QqS0aM
Need the right course?
If you are looking to move quickly from PQ to NQ then you need to choose a top training provider. But which one? Well, you need to check out our Course Finder page at https://tinyurl.com/2ebtwxau
Select who you want to study with and you will see our trusted providers.
We have nine trainers on the AAT
relationship are also key to a successful career.
The roundtable went out live,
list, including HTFT Partnership, Ideal Schools, e-Careers, Training Link and Premier Training. We know if you choose any one of these you will get a first-class service and be one step nearer your goal of becoming a qualified accountant.
Back to Basics – our free videos
We have fours videos in our Back to Basics series 2, with more coming soon!
Three-time PQ magazine award winner Tom Clendon has provided
and there was a whole T Level class from Stanmore College watching. You can watch the whole event too, at https://getrogo.com/ pqwebinares/
So big thanks to our panellists: Daniel Cornes, senior business manager at Reed Finance; Hazel Powling, ICAEW Head of Qualifications Development; Jamie Lyon, Head of Skills, Sectors & Technology at ACCA; and Jonathan Barber, Executive Director –UK at the Institute of Financial Accountants.
Read more in next month’s issue.
an eight-minute video looking at IAS 37 and provisions. IAS 37 is a strict about when you can recognise a provision. So, do you know, for instance, the three conditions which must be met? You will after watching Tom – go to https://tinyurl.com/2xx5p4u4
We also have PQ magazine award-winner Will Boardman looking at the VAT control account. With his help you will understand what goes on the credit side and what goes on the debit side, and all in under eight minutes.
Lisa Nelson is Director of Learning at
ROBERT BRUCE
Trump’s ESG stance is leaving US isolated
It is puzzling. The great divide over environmental, social and governance disclosures (ESG) is seen, particularly in the US, as a geographical divide. In the US, where Donald Trump is bullying companies into dropping any mention of ESG measures, it is portrayed as something that effete European countries implement, whereas the good old Trumpian US economy, harking back to the 1950s, should not.
But the truth of the matter, as the isolated and furious US fails to see, is that the divide is not simply US versus Europe. It is the US versus the world. Companies in Asia, where the real economic powerhouses lie, think that ESG issues are common sense. Increasingly, European companies are following suit. The big boys in US asset management, BlackRock amongst them, have decided that despite having supported ESG measures and advocated for them are dropping them, hoping to keep in the good books of an increasingly irrational president.
In Europe this makes no sense. As a result, for example, in February one of the largest UK pension funds pulled £28bn of funds out of giant US asset manager State Street. And it makes even less sense across the largest Asian economies where the importance of ESG measures, particularly in combatting climate change, is seen as common sense. The US is once again being left behind, squabbling amongst itself in its own back yard.
Robert Bruce is an award-winning writer on accountancy for The Times
FRC investigating Woking council
The Financial Reporting Council (FRC) has started an investigation into the conduct of two accountants “in relation to their compliance with governance, reporting regulations and professional standards in respect of Woking Borough Council’s operations and investment activities”.
The FRC’s Executive Counsel will be looking at the financial years ended 31 March 2017 to 31 March
PwC Israel fined over exam cheating
PwC Israel has been sanctioned and fined by the US regulator over widespread cheating in internal audit exams.
The Public Company Accounting Oversight Board (PCAOB) has fined the firm $2.75m after it was found hundreds of individuals were engaged in training exam misconduct. The PCAOB said from 2017 to 2022 the firm failed to detect or prevent extensive, improper sharing of tests for mandatory internal training courses.
PCAOB chair Erica Y. Williams
said: “The PCAOB will not tolerate cheating or other unethical behaviour at PCAOB-registered audit firms, regardless of whether the firm is located in the United States or abroad.
“We will hold firms accountable
A top five online careers magazine is… PQ!
Where do you get your career advice from? Well, it should be one of the top five best career magazines – PQ magazine!
PQ magazine has been placed at number four in FeedSpot’s top 10 career magazines in 2025.
The list is complied from thousands of magazine on the
web and is ranked by relevancy, authority, social media followers and freshness.
Last month we discovered we were number 11 on the FeedSpot list of top
when they put investors at risk by failing to comply with the PCAOB’s quality control standards.”
Since 2021, the PCAOB has sanctioned 10 registered firms for quality control deficiencies related to the inappropriate sharing of answers on internal training exams.
Without admitting or denying the findings in the order concerning the improper answer sharing, PwC Israel agreed to pay a $2.75 million penalty. The firm was censured by the PCAOB, and it is required to review and improve its quality control policies and procedures.
accountancy magazines to read.
PQ magazine editor Graham Hambly said: “Our career advice section on www.pqmagazine.com/ career-advice/ reveals the real working world of accountants. Recent posts have talked about AI, finance staff shortages and cheating employees, among other things.”
Check out the full list at Top 10 Career Magazines in 2025
The OBU BSc deadline looms
ACCA students only have a limited amount of time to complete the BSc (Hons) in Applied Accounting from Oxford Brookes University before the programme closure deadline.
All students and members must submit all
2023. Both individuals are no longer employed by Woking council. This is an Accountancy Scheme investigation, so it covers members of ICAEW, CIMA, CIPFA, ICAI, ACCA, and ICAS.
Book your tickets to Accountex
PQ magazine is again partnering with Accountex, which takes place over two days in May. Accountex is the premier accounting expo and you can register online for your free ticket now.
requirements for the programme by May 2026.
And May 2026 is the final opportunity to register and submit the Research and Analysis Project (RAP). It is
Accountex London have just announced that Charterpath will be an official charity partner. To book your ticket for 14-15 May go to https://tinyurl. com/533s6pb7
AI and professional judgement
Accounting professionals have a vital role to play in supporting their organisations to achieve AI adoption and implementation, according to new research from ACCA.
also the final opportunity for RAP resubmissions for RAPS submitted prior to May 2026. Any individuals who fail the RAP at the May 2026 submission will have one opportunity for resubmission in November 2026. December 2026 sees the closure of the BSc programme. ACCA said: “Anyone registered on the programme who has yet to meet the assessment criteria will no longer be able to achieve the BSc.”
However, according to the report AI Monitor: Risk and responsibility there are a couple of immediate threats for many organisations relate to the significant amounts of investment being committed and either unrealistic expectations or poor judgement concerning the potential impact of integration. ACCA believes success will come through combining traditional financial acumen with new forms of technological oversight to maintain the profession’s fundamental role as arbiters of trust and integrity.
The UK government wants more people to own shares. Do people have the capacity to buy shares? Around 66% of adults have less than £10,000 in savings. Would people gamble that on shares?
Despite incentives, such as taxing capital gains and dividends at lower rates than wages, only 10.8% of UK quote company shares are held by individuals.
Neoliberals claim that wider share ownership will lead to more investment in the economy. That isn’t necessarily so. Shares traded on stock markets are secondary. Individual A buys shares and bonds from B, money is exchanged between A to B, and not a penny goes to the company for investment in productive assets.
Shareholders manage uncertainly by chasing short-term returns. In 1970, major UK firms paid out about £10 of £100 of profits in dividends. By 2015 this hit £70, and the ratio could be higher now. Cash extraction is accompanied by a squeeze on labour and investment.
Stock market pressures are destroying the nation’s seed corn. In 2024, UK listed companies raised £3.4bn from new shares. They paid £86.5bn in dividends. The UK is ranked 28th out of 31 OECD countries for investment in productive assets. Share ownership does not shelter anyone from the ravages of capitalism. They will still face real wage cuts and rocketing bills. To encourage share ownership, governments need to rethink the relationship between capital and society.
Prem Sikka is Emeritus Professor of Accounting at the University of Essex
Tax briefs
Croner-i and KPMG join forces on tax
KPMG and Croner-i have created an alliance on tax content driven by AI.
Under the agreement Croner-i’s tax information will be integrated into KPMG’s information services. This will mean all KPMG’s UK employees will have instant access to the latest tax legislation, case reports, expert analysis and insight enhanced by AI search tools.
Ben Chaplin, MD at Croner-i, said: “Not only is the alliance
IASB issues major update to IFRS for SMEs
The International Standards Board (IASB) has issued a major update to the IFRS for SMEs accounting standard.
The aim of the standard is to balance the needs of lenders and other users of SMEs’ financial statements with the resources available to SMEs.
The standard defines SMEs as entities without public accountability that prepare general purpose financial statements.
Highlights of the update include:
• A revised model for revenue recognition.
• Bringing together the requirements for fair value measurement in a single location.
said: “The update to the IFRS for SMEs Accounting Standard will improve the information provided to users of SMEs’ financial statements while maintaining the simplicity of the Standard.”
• Updating the requirements for business combinations, consolidations, and financial instruments.
IASB chair Andreas Barckow
The changes are effective for annual periods beginning on or after 1 January 2027, with early application permitted.
The IFRS for SMEs Accounting Standard was issued in 2009 to address the global demand for a simplified Accounting Standard for SMEs. This updated version is the third edition of the Standard.
ACCA worried about FRC move on sustainability
ACCA has warned the Financial Reporting Council (FRC) that now is not the time to “row back on UK investor governance commitments on sustainability”.
It appears worried that the FRC’s proposed revised definition of ‘stewardship’ could be interpreted as a scaling back of intent on sustainability.
FRC wants to remove ‘environment’ from the proposed definition, and ACCA’s Mike Suffield (pictured), said: “Climate-related
disclosures continue to mature globally, shifting from tick-box statements to demonstrable action. This is reflected in recent
regulatory developments, such as the International Sustainability Standards Board (ISSB) IFRS S1 and S2.
“In the light of these trends, we are concerned about the message that this proposed change would send to the market.”
Despite this criticism, ACCA stressed it was supportive of the overall proposed updating of the Stewardship Code, and supports FRC’s efforts to bring about a more streamlined approach to reporting.
Hanni Owens wins community award
AAT Hanni Dogan Owens recently picked up a South Gloucestershire Community Award. The 2022 PQ magazine Distance Learning Student of the Year has not rested on her laurels!
She has worked in unpaid volunteer roles for many groups, including Anthony Nolan Leukaemia Research, Southmead Hospital, UWE Beeline Project – and many more. Owens was described as “cheerful no matter
fantastic for the growth of both Croner-i and KPMG, it is also the start of a wider, exciting journey for the ways content will be used in the future. We believe there is currently no other alliance like this in the UK tax market, and the potential for further growth across the industry is compelling.”
HMRC costs are up
An increasingly complex tax system, more people paying tax and investment in staff and IT contributed to HMRC’s costs of
the weather or the work, and happy to give her all to everything she supports”. Her genuine empathy shines through, too.
She told PQ magazine that there are so many great ways to volunteer, not just to maintain your finance skills, but to improve your wellbeing and experience.
She wants to encourage all our readers to check out Reach Volunteering: https://reachvolunterring.org.uk
collecting tax rising by 15% (to £563 million) in real terms between 2019-20 and 2023-24, according to a new National Audit Office (NAO) report.
During this same period, government’s tax yield rose by 16% (to £113 billion) in real terms.
The increase in administrative costs can be attributed to several factors. First, the tax system is becoming increasingly complex, and HMRC has estimated that the combined effect of changes announced between 2022 and 2024
will increase its costs cumulatively by around £875 million over the next few years. None of these changes are expected to reduce costs, although it is anticipated that some of them will increase revenue in the longer term.
Second, the number of people liable to pay income tax has increased from 31.7 million in 2020-21 to 36.2 million in 202324, due to income tax thresholds remaining at the same level since April 2022, and population and employment growth.
Councillor Franklin-Owusu-Antwi presented Hanni Owens with her community award
Students celebrate ADIT exam success
Almost 400 international tax professionals recently celebrated passing exams towards the Chartered Institute of Taxation’s ADIT (Advanced Diploma in International Taxation) qualification.
Online exams took place in December, with 396 students successfully passing at least one exam and 86 achieving ADIT in
full by passing a third ADIT module.
An additional 10 students have attained the ADIT qualification in the past six months, by researching and writing a successful extended essay on an international tax subject of academic interest.
CIOT President Charlotte Barbour (pictured) said:
“May I encourage all our new
Auditors getting itchy feet!
Employers take note – around two-thirds (69%) of audit and governance professionals want to leave their position in the next year.
Research carried out by CareersinAudit.com has discovered the main reason for people looking to move was the lack of promotion and pay rises in their current role.
And the data showed it was experienced professionals who appear to be driving this trend,
with 60% of professionals aged 41 and over planning to move in the next six months, compared with 43% of 26-40-year-olds.
CareersinAudit.com
director Simon Wright said:
“The fact that the majority of professionals in audit and governance industries will be looking for new roles in the near future should be a huge concern for employers across the sectors.
“As with any industry, keeping
graduates to join our popular International Tax Affiliate programme, and to continue your relationship with the CIOT. This offers a valuable way to enhance your professional profile and distinguish yourself in a competitive market. As an ADIT Affiliate, you can connect with a global community of like-minded international tax professionals, as well as gaining access to resources and opportunities for further learning and development.”
employees motivated and happy in their roles is crucial to retaining top talent, and also attracting new people to join.
“Regular one-to-ones and performance reviews, providing clear career progression paths and incentivising employees with additional benefits including work-life-balance and homeworking options, as well as regular pay increases, are just some of the areas that should be implemented to prevent professionals from seeking pastures new.”
New chair for Access Accountancy Access
Accountancy has appointed Mark Pavlides (pictured) as its new chair.
In his new role Pavlides will work with accountancy firms to ensure that everyone has an equal chance of accessing and progressing within accountancy based on merit, not background.
Pavlides is currently ICAEW interim MD, Operations, and he replaces Sharron Gunn who left Access Accountancy in November 2024. He said: “Access Accountancy plays a vital role in ensuring that talented young people, regardless of their background, have a fair chance to build a career in accountancy. There’s still a lot of work to do in improving social mobility in the profession, and I’m looking forward to working with the trustees, signatories and wider stakeholders to drive meaningful progress.”
ANNA KATE PHELAN
Keeping pace with real-world changes
In an industry driven by precision, compliance and evolving regulations, the way we assess accountancy students must keep pace. The shift from paper-based exams to e-assessment is not merely a technological upgrade; it is a fundamental change that enhances learning, efficiency and real-world applicability.
E-assessment for learning includes online quizzes, automated tests and interactive case studies, which can provide immediate feedback. For learners, this means errors can be identified and corrected in real time. In a field where accuracy is paramount, this immediacy significantly improves retention and application of knowledge.
Another key benefit is flexibility. Online assessments allow students and professionals to test their skills anytime, anywhere. This adaptability is particularly relevant in today’s hybrid learning environments, where self-paced study and remote learning are becoming the norm.
From a regulatory standpoint, e-assessments ensure integrity and consistency in marking. Automated grading reduces bias, while built-in security measures, such as remote invigilation and plagiarism detection, uphold examination standards. For professional bodies, this means greater confidence in the certification of accountants.
As accountancy continues its digital transformation, learning and assessment must follow suit. E-assessment not only enhances knowledge retention and accessibility but also ensures that future accountants are equipped with the digital proficiency the profession now demands.
Local authority finances in crisis
Local government finances are becoming unsustainable, due to increasing demand on essential frontline services, the impact of delayed finance reform and the erosion of investment in preventative programmes, says a report from the National Audit Office (NAO).
While funding to local authorities, available through Local Government Finance, increased by 4% between 2015-16 and 2023-24 to £55.7 billion, it was not reflected in funding per person during the same period, which fell by 1%.
Nor has the funding kept pace
with the demand for services to people most in need of support, mainly adult and children’s social care, temporary accommodation and the special educational needs and disabilities (SEND) system, which has increased over and
Class of ’25 anyone?
There is still time (just) for SCS CIMA students to register for the Class of ’25 (season one).
Registration closes on 21 March and CIMA says no late entrants will be able to participate in the programme. Registration closed for MCS on 14 March and 7 March for OCS.
All those signed up receive a structured programme of study and exam support containing
more than 15 hours of support material, including online study guide, recorded webcasts and articles, and dedicated one-to-one support. There is also a dedicated Facebook group, providing PQs with the opportunity to network and learn from their peers. It really is worth signing up. Some 94% of candidates from the Class of ’24 said the programme contributed positively towards
ICAS partners with MoD
Military personnel have the opportunity to enhance their skills and career prospects through a new partnership with the Institute of Chartered Accountants of Scotland (ICAS).
Learning Credits Scheme – an initiative that promotes lifelong learning for armed forces members and veterans.
above population growth. Over half (58%) of the £72.8 billion spent by local government in 2023-24 was on adult and children’s social care. Evidence suggests that when people access services their needs are not being well met.
CIPFA said: “The report recognises the current financial crisis impacting local government, that CIPFA has been calling out for years. We welcome and support the report’s findings that current reforms must be considered holistically, not piecemeal to succeed in the light of current capacity and budget constraints.”
Case Study Success. And, remember, the CIMA’s Class of ’21 won a PQ magazine award.
Check out more and the full terms and conditions at https://tinyurl.com/jd62f4d3
their current function or previous experience.
ICAS CEO, Bruce Cartwright (pictured), said: “It’s vital that military personnel have access to learning opportunities that empower and enable them to pursue new career paths.
The Ministry of Defence (MoD) has officially approved the ICAS Certificate in Accounting and Business (CAB) on its Enhanced
EY facing FRC scrutiny over Post Office audits
The UK’s accounting watchdog has confirmed that it is scrutinising audits that fell outside the scope of the public inquiry into the Post Office Horizon scandal, says news agency Bloomberg.
The Financial Reporting Council said in an emailed statement it was looking at the work of EY, who audited the Post Office from 1986 to 2018. Bloomberg said the FRC did not say if it was looking at PwC as well.
Although at the time EY said it was co-operating with the public inquiry, in the end the audits related to the scandal were not
The CAB qualification has been designed to develop knowledge and practical experience in key areas of accountancy, business and finance. It has been designed to upskill any individual or team, no matter what
looked at. It has been suggested that scrutiny of the audits was dropped because it would take too long.
Azets buys part of KPMG Sweden
Azets has agreed to acquire part of KPMG’s Sweden business. It is buying the arm which focuses on audit, tax and advisory services for SMEs, along with the audit and audit-related services for municipalities and regions.
A total of 270 new staff members, including 14 equity partners, will join Azets on completion of the deal, doubling the size of its Swedish business to SEK 1 billion (£77 million). The transaction is expected to be completed in summer 2025.
“With no prior business or accountancy knowledge required, our CAB programme caters to all. It not only upskills individuals, but also boosts their confidence, helps them gain credibility in a variety of sectors, and enables them to stand out in a competitive job market.”
This is Azets’ first agreement in the Nordic counties, and underpins its strategy to become a £1 billion turnover business by 2027.
Deloitte UK keeping DEI targets
Deloitte UK has said it will continue with its commitment to diversity target, irrespective of what its US business does.
Deloitte US looks set to scrap diversity, equity, and inclusion (DEI) goals, as the current climate in the United States changes.
Deloitte ‘s Richard Houston told the UK staff the Big 4 firm was “committed to our diversity goals” and “will continue to report annually on our progress on inclusion”.
Anna Kate Phelan is Head of Product at Eintech
HANNAH MACDONALD
Ethics is about all of us
Ethics is embedded in all accountancy qualifications. It’s fundamental that we as accountants uphold public trust in the profession, are dependable business advisors and support the economy to function effectively.
However, there is a known conflict between revenue maximisation and ethical conduct. I’ve seen this conflict manifest in various ways: onboarding clients who don’t align with the values of the organisation, under-resourcing projects to the point where long hours are normalised and quality issues arise, unprofessional behaviour and even discrimination.
At Accountancy Hub, we advocate for highly ethical workplace cultures. We strive for progress across the industry, calling on regulators to take tough action on individuals and organisations who aren’t demonstrating robust ethical principles.
More generally, newspaper articles highlighting poor workplace culture can often allude to ‘bad apples’ who have brought an organisation into disrepute. However, as Alison Taylor points out in her book Higher Ground: How Business Can Do the Right Thing in a Turbulent World, the point of the ‘bad apple’ metaphor is that bad apples spoil the barrel. Toxic behaviour is systemic, endemic, and the responsibility of every leader to root out.
I’m a believer that ethics needs to be more holistically embedded into accountancy training, not as a tickbox, but as a way of living, working and being. Let’s not shy away from the conversation to ensure accountants are at the pinnacle of ethical behaviour.
Hub
QuickBooks’ major product updates
Intuit Quickbooks has revealed a series of updates at its London Get Connected show, designed to help accounting professionals manage and grow their practices. These include advancements in QuickBooks Online, spotlighting readiness for MTD for Income Tax to help customers stay ahead of compliance, and new innovations in QuickBooks Online Advanced specifically designed for small and mid-market businesses. The latest
IT fiasco exposed in new report
Birmingham City Council has been left without a functioning finance system until at least 2026, according to a 66-page report from external auditors Grant Thornton.
The report into the failed Oracle Fusion enterprise resource planning (ERP) implementation at the council said the overall cost to put things right will be £90m in excess of the original budget.
It all means that the council has not had a proper financial management and cash receipts system for more than two years. It has also been unable to produce reliable financial reports and account for income and spending.
The failures in turn contributed to the council’s de facto bankruptcy in 2023.
Grant Thornton said when the decision to go live was taken in April
Fintech investment hits four-year low
Total UK fintech investment dropped to $9.9 billion in 2024, down 27% from $13.6 billion in 2023, according to KPMG’s Pulse of Fintech, a bi-annual report on fintech investment trends.
Geopolitical uncertainty, high levels of inflation and the higher interest rate environment all
contributed to more subdued levels of UK fintech investment, compared with the record highs in 2021. UK fintech investment in 2024 was at its lowest level since 2020 ($7.6 billion).
KPMG’s Hannah Dobson said: “2024 was another tough year for fintech investment, which inevitably has led to
2022 “the level of risk inherent in the Oracle solution was not properly understood. This resulted in the implementation failing at a significant cost to the council, contributing to a breakdown of financial control such that it has been unable to adequately control its finances throughout 2022/23, 2023/24 and into 2024/25.”
It added: “The governance and programme management for the Oracle programme had fundamental weaknesses that were never effectively reminded and were further exposed by high turnover of staff in both senior and operational roles.”
some business failure and some consolidation. It has also sharpened the focus on a path to profit and cost control which positively leads to more sustainable saleable businesses in the longer term.”
UK can be a world leader in AI
The UK can be one of the top three world leaders on artificial intelligence and the government’s AI strategy is a step in the right direction, says Sam Robinson (pictured), AI policy lead and senior researcher at the Social Market Foundation.
Although the UK can’t compete at the same level as the US or China, he believes it
updates to Intuit Assist were also showcased, bringing more of the power of Intuit’s AI platform to UK customers.
For more see page 33
Dext partners with Scope Solutions
Dext has announced a new strategic partnership with Scope Solutions, to bring its automation and financial management capabilities across the UAE, Cyprus and Malta. This follows the successful integration of Dext with
has the talent, universities and the start-ups to succeed. Robinson said perhaps the
Zoho Books, and reflects the increasing demand for advanced bookkeeping solutions across all three markets.
Sabby Gill, CEO of Dext, said: “Partnering with Scope Solutions allows us to better meet the growing demand for digital bookkeeping and compliance solutions across the Middle East and Europe. Following the integration with Zoho Books, this partnership enables us to deliver even greater value by pairing automation-driven tools with local
biggest opportunity for the UK is to establish itself as an AI leader in the public sector. He explained: “The UK is uniquely well placed to demonstrate how AI can improve the productivity and quality of public services, and Technology Secretary Peter Kyle is building a reputation for the UK as the country that is most ready and willing to seize the opportunity.”
expertise to empower firms to save time, drive growth and deliver superior client service.”
FreeAgent and Mimo team up
FreeAgent and global payment solutions company Mimo have unveiled a new partnership that will enable SMEs to manage their payments, cash flows and financing more effectively. Under the partnership FreeAgent will integrate with Mimo’s platform, saving customers time and money.
Hannah Macdonald is the founder of Accountancy
Making diversity work for all
I was shocked to read about the Solicitors Qualifying Examination (SQE) and the diversity pass rates (PQ magazine, March ’25, page 8). White students had a pass rate of 58%, Asian students achieved a 42% pass rate and black trainees only managed a 28% pass rate.
It all seems quite scandalous, but whatever you think of the different pass rates and reason for them, at least they are all out there in the open.
It is interesting that no accountancy body seems to collect similar stats. And the obvious question is why not, if they really believe in equality?
Tech issues persist
I have just sat the March APM exams, and there are still problems with the tech! My computer froze twice and I had to be relocated twice. I wasn’t alone either, as I saw a lot of hands go up in my exam centre.
I do wish the ACCA would come clean about all this, and explain how it all works when things don’t work properly. I understand that things do go wrong and just think if we all know how it works it would take a bit of the stress away. Name and email address supplied The Editor says: I would love to hear from anyone else who had problems in the exam centre this March. We can then take it to ACCA…
Conquering exam fears
Can I say how much I liked Mark Foley’s piece on ‘how to conquer your exam fear’ (PQ magazine, March '25, page 19).
It was nice to read an honest piece that says it is sometimes OK to put off your exams altogether. Many of us are balancing work, family commitments, physical and mental health, all on top of our studies. It really does sometimes get a bit too much. And you should
the Financial Reporting Council collects? Maybe it is something PQ magazine could campaign for to start with.
My worry is that this is too radical a step for the profession. I don’t think I have ever seen a breakdown of the ethnicity of students coming into the profession. Is this something
I always feel the accountancy bodies don’t really provide enough of a breakdown of pass rates, even without taking this next step. I see (again only in PQ magazine) that the ICAEW and AAT have suddenly started to publish European verses Rest of the World pass rates. Why haven’t the other bodies, like mine (the ACCA), followed suit? Is it because they would show massive disparities in pass rates? Name and email address supplied The Editor says: Thanks for the email. Leave it with us and I will ask the question.
Our star letter writer wins a fantastic ‘I love PQ’ mug!
be able to take a step back from it all without feeling guilty.
He stresses the importance of self-care – I also use his personal option of Cadbury’s chocolate bars to keep me going. And will be forever in their debt!
Robert Bruce, Prem Sikka,
I also liked the fact that Foley talks about the concept of ‘peaking’ at exam time. As he says, you have to remember, you don’t need to perform to the best of your ability, just enough to get a pass.
Name and email address supplied
Paul Goodman, a specialist in commercial finance solutions, recently highlighted on LinkedIn what happens when you have the wrong tax policies: “The UK is currently providing a real-world case study of the Laffer Curve – the economic principle that beyond a certain point, higher tax rates can lead to lower overall revenue by discouraging economic activity.
Three recent tax policies seem to demonstrate this:
• North Sea oil and gas taxation: A 78% tax on profits, combined with the removal of key tax allowances, has led to a forecasted collapse in investment. Capital spending in the sector is projected to plummet from £14 billion to £2.3 billion between 2025 and 2029, potentially reducing the UK’s economic value by £13 billion. The unintended consequence? A tax designed to increase government revenue may ultimately reduce it by discouraging investment and economic output.
• National Insurance hike: Labour’s planned increase in employer National Insurance from 13.8% to 15% has reportedly triggered hiring freezes, redundancies and reduced business investment, particularly in retail and hospitality. Businesses now face higher costs per employee, leading many to reconsider expansion. This aligns with the Laffer Curve’s prediction that higher employment taxes may not raise more revenue if they shrink the tax base by making hiring less attractive.
• High income tax rates: Scotland’s 48% top rate and the UK’s 45% additional rate are among the highest in developed economies. While these rates target higher earners to boost revenue, research suggests the UK’s optimal tax rate for maximizing revenue is around 36%.
These cases illustrate a crucial economic reality: raising tax rates doesn’t always raise revenue.”
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ACCA March exam feedback
What did those actually sitting the March exams think of them?
Here are some of the comments straight from the horse's mouth
How did the March sitting go? Here's the day-by-day feedback as it happened…
AA
One sitter wondered why there was so much on substantive procedures. “Feel like I was typing the same thing over and over again,” they said.
Another sitter said the exam wasn’t difficult, but due to time management spent too long on risk assessments and too much on questions in section A.
In the Open Tuition Instant Poll, 62% of sitters said the exam was ‘OK’, 22% found it ‘hard’ and just 7% said it was a ‘disaster’.
AAA
For many it felt like the exam wasn’t difficult, one sitter even thought it was “reasonable”. Another said they had “a fair set of questions”. That said, time management was key – let’s hope you didn’t spend too long on the risk question. The lack of sustainability reporting for some (remember, there is more than one paper) was a disappointment, too.
In the Open Tuition Instant Poll some 37% of sitters said the exam was ‘hard’, and 13% had a ‘disaster’.
TX
For one PQ this exam was “just crazy”! How,
they asked, can it all be done in three hours?
Another sitter said the exam was “brutal”. They added: “I was prepared but boy was I wrong, especially those last three questions.”
In the Open Tuition Instant Poll, 26% said the exam was a ‘disaster’ for them, and another 31% said it was ‘hard’. That left 40% saying it was ‘OK’.
SBL
One sitter suggested the paper was “quite good”, and another said it was “alright”.
Mixed emotions from others, but there were few complaints this time around.
Lots of votes in the Open Tuition Instant Poll – over 400! Some 63% of sitters voted the exam ‘OK’, 21% said it was ‘hard’ and 7% had a ‘disaster’.
PM
For many this exam was between OK and hard, with a lot of calculations and some quite tough questions. The target costing question being one of the tricky ones.
One student said they had been studying PM for a year and if they fail this time they were going to quit. A fellow ‘sufferer’ tried to persuade them not to quit and explained it was their ninth attempt.
‘Hard’ came out top in the Open Tuition Instant Poll with 46% of the votes. Another 14%
of sitters had a ‘disaster’ and 38% said the exam was ‘OK’.
APM
“Awful” is all one sitter said about APM this time around. The ABC question threw a few sitters – “I didn’t understand what I was meant to calculate,” said one PQ.
One student explained their computer froze twice during the exam and they had to be relocated both times. There were also a few system issues for other students as well.
In the Open Tuition Instant Poll the exam was deemed ‘OK’ by 47% of sitters. Some 29% found the exam ‘hard’ and another 16% had a ‘disaster’.
ATX
“Quite hard” and “shocked” were two comments post-exam. Many found the exam difficult and left halls disappointed. There was a general feeling that the questions were a little unusual.
One sitter thought there was minimal stuff on IHT, reliefs and share schemes/tax planning.
Another admitted they had mismanaged time badly, which never helps.
Just 29% of sitters in the Open Tuition Instant Poll said this one was ‘OK’, with 44% calling it ‘hard’, and 25% a ‘disaster’.
FR
Sitters thought section A and B were harder than the mocks and past papers. However, section C was the exact opposite and easier than both.
Only 31% of sitters told the Open Tuition Instant Poll that the March exam was ‘OK’. For 45% it was ‘hard’ and for another 17% it was a ‘disaster’.
SBR
People who got the segmental reporting question found it hard.
For one in five sitters (22%) this exam was a ‘disaster’, according to the Open Tuition Instant Poll. For just over a third (36%) it was ‘hard’ and for 39% it was ‘OK’.
FM
We loved the comment from the student who said: “I have no idea what that was.” What that was was lots of theory questions, said another sitter.
The management of receivables and exchange risk hedging in section B also threw some. One PQ said: “I felt prepared but was disappointed the wordy section B question beat me.”
In the Open Tuition Instant Poll some 35% of sitters said the exam was ‘OK’. Another 44% admitted they had found it ‘hard’, and 18% had a ‘disaster’.
AFM
Sitters found the acquisition question hard –one wondered where all the missing pieces of information were. The SWAP question with two counter parties was also deemed tricky.
Voting in the Open Tuition Instant Poll was evenly divided. Some 32% said the exam was ‘OK’, 37% found it ‘hard’ and 25% had a ‘disaster’.
Levelling the exam playing field
Creating the right environment for your CGMA exams is vital, says Nasheen Wuisman – and here’s how you can do it
Embarking on the journey to become a CGMA designation holder with CIMA is both an exciting and rewarding experience. Yet ‘exam day’ are two words that can easily fill you with dread.
Over the past few months I’ve been approached by some of our CGMA candidates asking me to tell them more about the exam day itself. They placed specific emphasis on adjustments that might be possible for them to be able to focus on the exam better.
Succeeding on your CGMA journey does take individual determination and personal resilience. Whilst you put in the necessary question and skill practice from your side for the day to go as smoothly as possible, we also work to provide you with the right support to make your exam day as comfortable as possible and make sure that we’re creating the right exam environment for you.
In this month’s column I’d like to build awareness by talking about how we’re committed to providing the necessary support to help you succeed in your CGMA exams. Our goal is to create a level playing field, allowing each and every one of our candidates to demonstrate their skills and capabilities fully.
How we
can support you
We can offer adjustments as per our special accommodation policy to candidates, allowing those with special educational needs, disabilities or temporary illnesses and injuries equal access to our exams. These include:
• Testing environment: We make adjustments to the testing room at the test centre, such as setting up a specific workstation or providing the candidate with a separate room to sit their exam.
• Extended time and supervised rest breaks: We grant a candidate extra time to complete their exam and ensure that they’ve scheduled rest breaks during the exam.
• Assistive technology: We offer tools such as screen readers, speech-to-text software, or specialised keyboards to aid candidates with reading and writing tasks.
• Alternative formats: We offer exam materials in different formats such as large print, or
adjusted contrast or font to accommodate a range of needs.
How to apply
If you think that you’d benefit from some reasonable adjustments to be made, please fill in our dedicated online application form. After completing the form, you’ll need to send any supporting medical documentation to special. accommodations@aicpa-cima.com
When to apply
You can apply for reasonable adjustments at any time, but we strongly recommend:
• Doing so, as soon as possible after diagnosis by a healthcare professional. Applying early will allow you to be able to focus on your learning, confident that your requirements are in place when exam day arrives.
• Being sure to apply before scheduling an exam. We process applications within seven working days of receiving your documentation. Remember to allow sufficient time between booking your exam and exam day to allow the test centre to set up reasonable adjustments on your behalf.
We’ll keep the adjustment in place until you complete your studies with us, meaning that you
only need to apply once. If your needs change or a new adjustment needs to be put in place, you will just need to send us updated medical documentation. If you have a temporary illness or injury, the reasonable adjustment will be in place for a pre-defined period.
Where to sit your exam
When making the decision as to where to sit your exam, it’s worth bearing in mind that due to the remote nature of online exams, it isn’t possible to provide the full range of adjustments away from a test centre. Make sure to check our guidance to help you make the best possible decision to suit your needs.
Planning for your exam day
It’s important that you build in planning for the big day as early as possible and not leave it to the last minute. Here are my top tips:
• Find out as much as possible about how the exam day works in a test centre and online, knowing what it involves will help you to visualise the day early and reduce stress.
• Decide what works best for you and whether you might benefit from some adjustments. Complete your application for special accommodations early so that you have one less thing to do as the exam gets closer.
• Plan your travel to a test centre, make sure to give yourself plenty of time and have a back-up plan in case of strikes, disruptions, bad weather – or if things just don’t go to plan that day.
• Try to plan the day before your exam if possible and make sure that you’re not working late in the night. If you have a young family, try to get support so that you can get a decent night’s sleep. Poor sleep can have a huge impact on your exam performance on the day.
• Clear your head – complete focus is key, but it can be hard as we must juggle so many responsibilities in our professional and personal lives. I’d still advise you to give it a go to see how your performance improves when you do.
Finally, do your best on the day, no one can ask any more of you. Always remember that we’re here to support you. Contact us early to make sure we know how we can help you.
• Nasheen Wuisman, Senior Manager – Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants
Going concern explained
FRC has provided an ‘explainer’ on its update to going concern reporting. Here it is…
On 25 February 2025, the FRC issued an updated ‘Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks’, to help directors of UK companies demonstrate the assessments underlying their going concern conclusions and increase confidence from all stakeholders.
The guidance is intended for all UK companies except small companies and micro entities. It brings together the requirements or provisions of company law, accounting standards, auditing standards, listing rules, the UK Corporate Governance Code and other regulation relating to reporting on the going concern basis of accounting and solvency and liquidity risks.
statements.
• Disclose principal risks and uncertainties, which may include risks that might impact solvency and liquidity, within their strategic report.
So what has actually changed:
• Its scope includes companies that apply the UK Corporate Governance Code.
• It reflects changes in accounting and auditing standards.
• It provides additional guidance on overarching disclosure requirements that may apply.
Enhanced understanding of requirements
The guidance encourages directors to take a broader view, over a longer term, of the risks and uncertainties:
uncertainties to which the company is exposed –and to its financial and liquidity position.
Areas of focus
The guidance outlines several key considerations for the effective reporting for the going concern assessment, including that directors should:
• Assess the appropriateness of adopting the going concern basis when preparing financial statements.
• Consider any material uncertainties to be disclosed in the financial statements (this assessment should consider all available information about the company’s future).
• Consider whether additional disclosures may be necessary, including disclosures about any significant judgements made and to provide a true and fair view. All disclosures should be clear and company-specific.
Disclosures related to solvency/liquidity risks
Companies must identify and disclose principal risks and uncertainties in their strategic reports, which may include solvency and liquidity risks.
The non-mandatory guidance serves as a proportionate and practical guide to assist directors with the application of the applicable legal and regulatory requirements to:
• Encourage assessment and disclosures related to the going concern basis of accounting and any material uncertainties in their financial
• It acknowledges that companies have risk management processes in place that underpin the assessment, and that the level of analysis applied depends on the size, complexity, and particular circumstances of the company.
• It acknowledges that the amount of information disclosed should be proportionate to the
The guidance encourages directors to consider both financial and non-financial factors that could impact the company's operations and financial health. When assessing these risks, directors should evaluate their likelihood and potential impact, ensuring that disclosures are tailored to the specific circumstances of the company.
You can read the full guidance at https://tinyurl.com/2s7tx8dc
Gender equality
To celebrate International Woman’s Day 2025, Daniella Di Marco spoke to Melanie Proffitt about how ACCA is connecting its newly elected all-female Council leadership team with future members
Daniella: Melanie, what motivated you to pursue a career accountancy?
Melanie: Well, with a surname like Proffitt there was a little amount of nominative determination there! Maths was my strongest subject in school – I had an amazing maths teacher that inspired me to do the best I can. I’ve always loved solving problems and puzzles and who doesn’t like a good jigsaw? I feel like that’s what we do – we pull all the pieces together and create a picture for the organisation.
Daniella: What would you say the key milestones in your career have been and how did you navigate them?
Melanie: The first one was becoming an ACCA member. When you reflect on your career, some of the really nice milestones are when you see people like yourself grow and develop, so I feel like I’m leaving a little trail of Daniellas behind me! I’m trying to inspire people to go on my journey, become ACCA members, silence that inner critic and take on the bigger challenges. Because we’ve got just as much capability as the men in the world – and you can see that rising when you look at the statistics in terms of getting representation.
Daniella: Have you noticed many changes throughout the years? If so what are they?
Melanie: There’s been a lot going on in UK legislation – we’ve got gender pay reporting. That doesn’t mean to say we’ve solved the problem! But at least we’re starting to report on it and look at it. I do think the pandemic had a part to play in accelerating flexible working – the ability to work different hours and work from home. And we’ve seen things like parental leave being shared between couples, so I think we’ve seen a lot of changes but there’s still a lot to do. But talking about it on International Women’s Day is the start – shining a light on metrics of what organisations are doing.
Daniella: What specific actions do you think are needed to accelerate gender equality within the workplace?
Melanie: I think it’s a bit of mindset really. Businesses need to really look at their own internal policies and the way that they work. There are so many different things around training people, but equally in recruitment – like bias, unconscious bias, blind recruiting where you don’t see the name of the individual. There are lots of things that businesses can do to try to encourage that. We definitely have equal pay – that is a legal requirement in the UK in terms of job roles. We shouldn’t be looking necessarily to legislation and government requirements. I think it should come from businesses.
It's good to call out the consumer in this, too. Businesses will be sustainable and will thrive if they adopt these sorts of more ethical, inclusive policies and procedures and values and live by them. Lots of positive changes but lots to do – we’re going in the right direction!
Melanie: So Daniella, what does the future hold for you? What does your career path look like and how are you going to get there?
Daniella: First, passing my ACCA exams! Now that I’ve started with ACCA I’ve moved job roles, moved from practice to industry and I’m excited. I feel that nothing’s holding me back, nothing is stopping me – and I’ve got a great role model! ACCA is a wellknown qualification, and I could go anywhere. Melanie: What I always say to students starting out is remain curious. Keep asking why. Keep wanting to understand more and learn more.
• #IWD was celebrated on Saturday 8 March 2025
Watch the international conversation as Ayla Majid, Datuk Zaiton Mohd Hassan and Melanie engage in meaningful discussions with Saman, Sharifah and Daniella, future members from Pakistan, Malaysia and the UK respectively. You can watch the full film here
Daniella Di Marco, ACCA student and assistant accountant at Farncombe Estate in Broadway, Worcestershire
Melanie Proffitt, deputy president of ACCA and Farncombe Estate CFO
A question for Tom
Tom Clendon explains how an organisation should account for monies raised via crowdfunding
Question
What is crowdfunding and how do you account for the cash received?
Tom’s answer
Traditionally, when companies wanted funding they would either go to a bank to borrow or issue equity via the stock market. The internet has facilitated the disintermediation of raising finance. This simply means that companies can raise finance (get funding) direct from investors (the crowd). So crowdfunding is the funding of a new start-up or project by collecting cash from a variety of individuals or entities (the crowd.)
So how do you account for monies received from crowdfunding?
There is no specific accounting standard that deals with the accounting of cash received from a crowdfunding operation. And it is this that potentially makes it a current issue to be examined at SBR. Clearly when cash is received the asset of bank will be debited. But where to credit? Before reaching any conclusion, it will be necessary to properly understand the true nature of the terms of the crowdfunding. What does the crowd get in return? Do they have a right to their
money back? Are they now a part owner of the business? Has the business sold them something in return? These are the key issues to resolve.
Crowdfunding could be debt
If the monies that have been received have to be repaid, then there is a present obligation and a liability is recognised. This financial liability and would be initially recognised at the fair value less issue costs; that is at the net proceeds of issue. IFRS 9 Financial Instruments applies. The default accounting treatment for such financial
instruments is amortised cost. The profit and loss account will be charged with an effective rate of interest on the debt.
Crowdfunding could be equity
If the monies that have been received represent a payment in return for an ownership interest; then an equity instrument has been issued. Again, the relevant standard to apply is IFRS 9 Financial Instruments. Such an issue of equity shares is also initially recognised at fair value less issue costs – that is the net proceeds of issue.
Crowd funding could be revenue
It is possible that the monies have been received because the company is making a sale. In return the crowd are getting a product or service. If that is the substance of the crowdfunding arrangement, then IFRS15 Revenue from Contracts with Customers applies. Revenue will be recognised when the performance obligations are fulfilled and control passes, and before that arises the monies received will be accounted for as a deferred income – a liability.
Conclusion
It will always be necessary to understand the terms that underpin any monies received through crowdfunding so that the accounting treatment is a faithful representation.
• Tom Clendon is an online lecturer for SBR. Contact him on WhatsApp on 07725 350793 or via www.tomclendon.co.uk
On point
Nick Craggs explains everything you need to know about tax points, relevant to the level 3 Tax Processes for Business unit
Alittle-known fact about me is that I used to be a farmer. In fact, I have a degree in it. But a career tilling the soil and feeding calves didn’t work out, and the next thing you know you are wearing a suit, on an ACA training contract, and find yourself on a stock count on New Year’s Eve.
I also love a bit of tax. The problem with tax though is that it keeps changing, and so do the exams. AAT have just started to assess the 2024 Finance act, so I thought I would write this month about an aspect of tax that doesn’t change, which is tax points in the Tax Processes for Business unit.
Anyway, my first job was as a bookkeeper for famers. I knew a bit about farming, and not too much about bookkeeping. One of the earlier tests of my career was from a farmer in Northumberland. He had bought some fertiliser, and as all readers of PQ magazine know, fertiliser isn’t cheap. So there was a lot of VAT on it, and the farmer wanted to claim it back, as you can imagine. However, the problem was the invoice was dated 3 March 2025, but I was preparing the February 2025 VAT return. As an accountant, I stood up for my fundamental principle of integrity, and told him he would need to wait
for the next VAT return before he could claim it back.
Sounds simple – just stick by the date on the invoice, right?
Well, as with most things to do with VAT, it isn’t so simple. The date on the invoice isn’t always the tax point. The tax point is the date which dictates when we can claim back, or have to pay over, the VAT.
If the fertiliser was delivered to the farm on 3 February 2025, this would be the tax point, as the delivery is before the invoice date. This is known as the basic tax point. As ever, it isn’t as straight forward as that. If the invoice is dated within 14 days of the basic tax point, this would override the basic tax point, and the invoice date would be used. So, if the fertiliser was delivered on 25 February 2025, the farmer still couldn’t have his VAT, as the tax point would still be 3 March 2025 as it is within 14 days of delivery.
The farmer could have got around the invoice being dated after his VAT quarter by actually paying for the fertiliser up front. If cash is paid before delivery or the invoice date, the date of the payment will always be the tax point. However, many of the tight farmers I know wouldn’t do this, as they would rather claim the
VAT back, and then pay the invoice later – much later!
We have a tax point which could be the delivery date, could be the invoice date, or it could be the date that the goods were paid for. But wait, it gets more complicated!
What happens if the farmer pays a deposit on his nice shiny tractor up front? In this case there would be two tax points. There will be the date of the payment of the deposit, then the next tax point will be dependent on delivery date, invoice date or the payment of the balance.
Let us look at an example.
Giles is going to buy a brand new tractor for £72,000. He has agreed to pay a deposit of £12,000 on 4 June. This is a tax point as he paid cash over, so the VAT on this will be £12,000 /120% x 20% (or you can just use the VAT fraction of 1/6th), which is £2,000.
He then takes delivery of his new tractor on 25 June. He then receives the invoice for the balance, which is £60,000, on 3 July. He then begrudgingly pays the invoice in November, because that is what farmers do.
His VAT return quarter ends in June, and obviously he wants to claim back £12,000 of VAT from HMRC as soon as possible. Within his VAT return quarter he has made a payment of £12,000 and taken delivery of his new tractor, which is the basic tax point.
However, Giles’s problem is that his machinery dealer has issued an invoice within 14 days of the basic tax point, so the basic tax point is overridden and the actual tax point is 3 July, outside of his VAT return, so he can only claim £2,000 of VAT this quarter. The rest of the VAT will have to wait until the next VAT return before he can claim it back.
• Nick Craggs, AAT distance learning director, First Intuition
Having a ball
CASSL’s 1920s themed ball was a roaring success. Oliver Sighe reports on the night’s events
Guests were transported back to the glitz and glamour of the 1920s at our muchanticipated themed ball. Held at the Chartered Account Hall in Moorgate, the event was a dazzling spectacle of vintage elegance and live music, and also included keynote speeches from Bank of England CFO Afua Kyei and ICAEW President Malcom Bacchus.
Attendees embraced the spirit of the era, donning flapper dresses, feathered headbands, sharp tuxedos and dapper bow ties. The venue itself was transformed into a Gatsby-esque paradise, complete with art deco table décor, soft candlelight and an ambiance reminiscent
of a speakeasy straight from the Prohibition era.
The evening kicked off with a champagne reception, setting the tone for the sophisticated yet lively night ahead. Current CASSL Chair, Aydin Bolton, opened the night with his speech. Guests were then treated to an exquisite threecourse meal. Malcolm Bacchus spoke about his career, and how becoming a chartered accountant has led him to work across many different industries. Afua then took to the stage in a very motivating light, talking about her career and how she’s always pushed for more.
The evening raised over £1,000 for our charity
sponsor, Urban Synergy. Leila Thomas from the charity also took to the stage for a speech about its activities. Urban Synergy is a charity giving young people opportunities in finance through mentoring and empowerment. Further to this, they help companies to be more diverse and give back to younger people.
No 1920s ball would be complete without a dance floor filled with Charleston moves and lively swing dancing. Professional dancers took to the floor to give a dazzling performance before leading an energetic dance lesson, encouraging guests to try the iconic steps of the era.
The night concluded with a grand prize draw, rewarding the best-dressed guest, and raffle.
A huge thank you to everyone who attended and made the night such a roaring success. Your enthusiasm and effort truly brought the magic of the 1920s to life. We can’t wait to do it all again next year – until then, keep dancing, keep celebrating, and keep the spirit of the Jazz Age alive!
• Oliver Sighe is vice chair of CASSL
Keep it simple
Rob Sowerby believes by keeping it simple you can succeed in passing even the hardest accountancy exams
Keep study simple is the name of my company for good reason. I have been teaching for a long time and the longer I stand in front of students the more I am convinced that what we learn in the professional exams is simple.
As I am wont of saying to my poor students, it is not rocket science. The key as a tutor is making it appear simple to the student. That can sometimes be difficult to achieve and it is very easy for a poor tutor to hide behind the veil of the subject.
In my view, the role of the tutor is to simplify everything, to make clear that which is potentially confusing. A definition has to be short, lacking in jargon and easy to apply, explain and replicate by the student. For example, cutting out the detail, debt factoring is the outsourcing of credit control – a simple way of looking at the issue, but one which can be detailed into debt collection, financing and credit insurance issues.
I teach a very wide range of subjects, from introductory level to the highest level and
across many disciplines, as long as it is not tax or audit! I believe that it gives me a far better perspective on the individual subject when I teach it. My natural home is teaching management accounting and financial management. For anyone who knows, these subjects are based on logic and simple theoretical ideas. In order to apply the theory may require complex computations, but the fundamentals to success are understanding why you are doing those computations and what you are trying to achieve.
An example is ABC, or activity based costing. Simply put, this is a refined form of absorption costing and no more. As with absorption costing we have to link costs to the cost unit, the only difference is that now we make a better attempt to do so accurately. The rest – activities, drivers, cost behaviour, etc. – is just detail to achieve this aim.
A further example is understanding what we are trying to do in financial management. At a basic level I reduce it to two aspects. At the introductory level any question can be reduced to either focusing on maximising shareholder wealth or balancing risk against return. There is no other game on the table. For example, capital structure theory combines both where we trade an increase in shareholder wealth for an increase in financial risk or total shareholder return is a measure of the increase or decrease in shareholder wealth.
It is critical for you when studying to start with the big picture; if you understand that you will then be able to build a coherent understanding of the whole. The detail may become complicated, but if you have a clear overview of the subject it will make considerably more sense. So when I said to you that study is simple what I really meant is that you have to make it so.
A small effort at the front end of a subject, topic or theory will reap dividends in a far better understanding of your studies. That understanding makes you a more effective learner, so instead of looking at topics in isolation you can fit them into a wider understanding, improving your chances of exam success. Remember please, keep study simple.
• Rob Sowerby is the founder of Keep Study Simple and is ACCA FM subject specialist at fmelearnonline.com
Disclosing personal information: do’s and don’ts
CCAB has created a whole series of scenarios to test your ethical skills. But, how would you deal with this ethical dilemma?
You are the finance director of a district/ county council, and the chair of the finance committee approaches you asking to see all the information the housing benefits section holds about the financial and personal affairs of a councillor.
The chair of the finance committee insists on seeing this information (saying that he will not disclose how he acquired it), even though he cannot identify any legitimate reason. The chair is not willing for you to contact the councillor about this.
Questions
As a professional accountant in the public sector:
(a) Which fundamental principles feature more prominently for safeguarding?
(b) What would be your key considerations in your approach to resolving the dilemma presented?
(c) What course of action would you take to resolve the dilemma?
Key fundamental principles
Integrity: Can you be straightforward and honest in your dealings with the people concerned?
Confidentiality: Are there proper grounds for disclosing the information?
Professional behaviour: What should you do to safeguard your reputation?
Threats to compliance: There is an intimidation threat to your compliance with the fundamental principles, since you are being deterred from maintaining confidentiality because of pressure. Furthermore, if you were to follow through with the request it is highly likely that you would breach data protection regulations (GDPR). Not complying with laws and regulations is covered in the NOCLAR requirements of the code of ethics.
Considerations
Identify relevant facts: Consider the organisation’s policies, procedures and guidelines, applicable laws; for example, GDPR and regulations, and the code of ethics of your professional body. You should attempt to
establish other relevant facts, including any allegations of fraud or impropriety on the part of the councillor, whether in the public domain or not.
Local authorities are required to adopt a code of conduct, which sets out rules governing the behaviour of their councillors and satisfies the requirements of the Localism Act 2011 (UK) or Standards in Public Life (Republic of Ireland). Identify affected parties: Key affected parties are you, the chair, the councillor, the council officer responsible for monitoring compliance with the code of conduct – for example, a monitoring officer, and possibly the leader of the council. Other possible affected parties are the audit committee, members of council staff responsible for housing benefit, and the officer responsible for data protection.
Parties who should be involved in the resolution: This appears to be a sensitive matter, and so you should consider not just whom you should involve, but also when to involve them and the reasons for their involvement. You will have to involve the council’s monitoring officer, and the chair of the audit committee. Others may include the data protection officer, legal officers and internal auditors.
Possible course of action
You must engage effectively, but diplomatically, with the chair of the finance committee. You should explain to him the ethical dilemma you are facing, and make your concerns clear. If possible, obtain from the chair a formal, reasoned request in writing.
If this is not forthcoming, ensure you make detailed notes of the request and any reasons given or implied. Impress upon the chair your duty of confidentiality, and any legal implications of complying with his request, as well as the ethical ones. You should obtain specialist legal advice, if necessary, as meeting the request might infringe data protection legislation in some jurisdictions.
You may refer the chair to any information in the public domain, but you must deny him access to other information. If the request is formally made in writing by the chair, you should forward to the council’s monitoring officer.
It will be for the council’s monitoring officer to determine whether, in the light of any such reasons, an internal or external investigation may be appropriate (and by whom it should be conducted). You should document, in detail, any discussions that you have with the chair, council’s monitoring officer and any advisors, and the steps that you take in resolving your dilemma, in case your ethical judgement is challenged in the future.
• The following case study was developed by the Consultative Committee of Accounting Bodies (CCAB). They aim to illustrate how the codes of ethics of the CCAB bodies can be applied by professional accountants working in the public sector. While these scenarios are not intended to cover every possible circumstance, they outline the key principles and processes that could be considered when attempting to identify, evaluate, and address ethical threats in line with the professional body’s code of ethics. You can check out the CCAB website at https:// www.ccab.org.uk
Risk and risk management explained
Karen Groves explains what is meant by risk and risk management in a business scenario, which is assessed in the AAT Level 3 Business Awareness unit
What is the difference between risk and uncertainty?
Risk in a business is things not going to plan, for example sales not being as high as expected or costs higher than expected. A risk to a business could also include losses from theft or fraud. Risk is inherent if an outcome is not guaranteed, for example a business launching a new product that might fail.
Uncertainty is where there are several possible outcomes to a situation, and the outcomes are very difficult to predict. For example, a new product launch has uncertainty regarding the volume of unit sales. If a situation is uncertain, then a business can’t predict what
the likely outcome will be as there is insufficient information, or past experience to draw on. Uncertainty can be reduced by the business obtaining as much information as possible before any decisions are made.
With risk, there can be a number of possible outcomes; however, the probability of each of the outcomes is known, whereas with uncertainty, there are a number of possible outcomes and so the probability of each outcome is unknown.
Types of risk:
• business risk – relates to the industry the business operates in. This risk is there due to
the nature of goods or services the business sells. Some industries are inherently riskier than others.
• financial risk – relates to a financial situation, for example a change in interest rates, which impact on the business financial circumstances, or the risk of non-payment by customers.
• strategic risk – relates to the risk that the business strategies will fail, for example, expanding in a new market involves risks.
• operation risk – relates to the risk of business operations failing, and losses occurring due to this.
• cyber risk – relates to the risk of disruption, damage, or financial loss due to the information technology systems in use. As digital systems are increasing, so are the cyber risks which can include malware, trojans, viruses and spyware.
• reputational risk – relates to the risk of damage to the business’s reputation, which can be caused by environmental damage or pollution by the business, company behaviour/ attitude overall, mis-selling of products or incompetence. If a business has a good reputation, this can easily be damaged by adverse posts on social media.
Risk management
Risk management involves identifying the risk and then evaluating the risk further. A business will assess the likelihood of the risk and what the impact of the risk will be. For example, how likely is it that a new product will fail and what is the impact to the business of this.
Risks can be managed as follows:
• transfer – the risk can be transferred to a third party, for example, an insurer to cover possible business losses.
• accept – the business will accept the risk and deal with any consequences of such. This approach should only be taken on risks that have a low impact if they did occur.
• reduce – the business will aim to reduce the risk, for example by regular servicing of the delivery vehicles to avoid breakdowns and delays of goods being sent to customers.
• avoid – the business may opt to avoid the risk altogether as they deem the risk as highly likely and would have a high impact on the business if it were to occur.
Question 1
Which of the following statements is true?
• risk can never be reduced
• uncertainty can never be reduced
• risk can be reduced in some situations
Question 2
A loss of a major customer is what type of risk?
• business risk
• financial risk
• strategic risk
• operational risk
Question 1 answer
• risk can be reduced in some situations
Question 2 answer
• business risk
• Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers
It’s showtime!
You can now register for free for the world’s largest accountancy expo – Accountex London 2025
The world’s largest accounting and finance expo, Accountex London, is returning to Excel on the 14-15 May 2025.
Over 11,500 people from around the world are expected to attend, after the 2024 show was hailed the biggest show in Accountex history.
A treasure trove of knowledge
“Every year Accountex proves itself as THE one-stop-shop for the accounting and finance community. And this edition is no exception,” said Accountex Portfolio Director Caroline Hobden. “There are lots of new features to help attendees leave with ideas that they can immediately put into practice and boost their careers.”
Attendees will have the chance to reconnect with existing suppliers, learn about the latest product launches, and explore new solutions to streamline their business processes, reduce time and costs.
The exhibitor list boasts 300 fintech companies including leaders like FreeAgent, Intuit QuickBooks, IRIS, Sage, TaxCalc, Wolters Kluwer and Xero. Emerging brands and firsttime exhibitors will include AY Business Law, Briefcase, Business Fitness, Accounting Flow, AuditBot and Adsum.
Mark Freed, Accountant of Freed Accountancy, who attended the event in 2024, said: “Without Accountex, I would never have come across a lot of the companies I am now working with, growth would have been slower
and my systems would not have been as good.”
All of the key associations will also be at the show, including AAT, ICAEW and ACCA. Attendees can get their questions answered and find out more about the benefits of being a member.
Seminar programme
The CPD-accredited seminar programme will consist of 250-plus seminars across 13 theatres. Themes incorporate everything that affects accounting, finance and bookkeeping professionals in and out of the office. Topics include everything from career advice and developments in AI to ESG, AML and Making Tax Digital updates from HMRC.
As thousands of the accounting and finance community reunite over the two days there are countless networking opportunities to make new connections. This includes the Bookkeepers’ Basecamp, Sustainability Zone, Content Creation Clinic and after-show parties.
“Accountex was a brilliant and insightful day out. As a small practice owner, I had so many ideas and lightbulb moments while listening to industry professionals,” said visitor Travus Wynne, Director, Happy Days MK Ltd.
And Sarah Wheatley, Accounts Manager, ACE Scaffolding Contractors, added: “My first time at Accountex and it was such a buzz – who knew that Accounting and Finance could be so much fun!”
Accountex London 2025 will take place at Excel on 14-15 May. Book your free ticket at https://tinyurl.com/533s6pb7
Fixing the SEND crisis
CIPFA’s William Burns explains how the institute’s reforms can fix the SEND system, which is reaching crisis point
England’s Special Education Needs and Disabilities (SEND) system has reached a breaking point, according to the latest CIPFA report.
So what led to the SEND system's financial crisis, and why is urgent action needed now?
Numerous societal and economic factors have caused strain on SEND services to grow exponentially over the past decade, all while high-needs funding failed to keep pace with rising demand.
The number of children who need SEND support has sharply increased in recent years. Notably, the proportion of pupils with an Education, Health and Care Plan increased by 140% between 2015 and 2024.
Other underlying factors have also impacted children. For example, it’s estimated that the pandemic lockdowns negatively impacted the language development of 1.5 million children in the UK. In turn, we now see greater levels of need among children and young people leading to an increasingly complex and overwhelming financial struggle for schools and local authorities.
One of the most critical sources of tension among councils is the end of the statutory override next year. This previously allowed councils to delay the impact of deficits in the high-needs block of the Dedicated Schools Grant. However, this has led to increased pressures over time. The override is due to end in March 2026.
If the statutory override is removed without intervention to address the deficits, almost half of all councils in England will have to
consider issuing section 114 notices. This means that they are unable to balance their budgets.
To alleviate this immediate crisis, CIPFA’s report calls to extend the statutory override only until deficits are paid. This approach would provide short-term stabilisation until March 2026, followed by a transition to a reformed
system, leading to long-term sustainability.
System failures
The current SEND system fails to improve outcomes for children and young people. The experience of families has worsened, and councils are under extreme financial distress. Current funding solutions are inadequate for meeting need. The system is not responsive to local and cohort demand and complexity. Contributions to care packages from partners vary across the country, and more can be done in terms of early intervention.
On top of this, there is a lack of co-ordination between education, health and care partners. Financial resources are not being used as efficiently as possible. Furthermore, there is difficulty in reducing cost, tackling profiteering and addressing inequality in the independent sector. This is compounded by the lack of financial accountability that follows decision making.
These challenges create a melting pot of immense strain on SEND.
Reforms to bring stability
Our reforms seek to build a SEND system that can effectively meet the needs of children while achieving financial sustainability. This can be accomplished by introducing frameworks for greater levels of accountability and transparency. This would enhance overall SEND infrastructure, ensuring the system is increasingly future-proofed and able to meet rising demand.
In particular, CIPFA’s reforms outline strategies to ensure current demand is sufficiently funded while reworking funding systems to improve SEND’s commitment to early intervention in the short, medium and long term. Likewise, by reworking the management of funding, the co-ordination between education, health, care and other services would be improved as a clearer and more consistent system to support families is established.
To view more of CIPFA’s findings and the key reforms for SEND you can access the full ‘Reforming SEND finance: Meeting need in a sustainable system’ report on CIPFA’s website.
• William Burns, Social Care Policy Advisor, CIPFA
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The job hunting game
Here
are four
practical tips from Meditopia for overcoming anxiety and succeeding in your job search
While searching for a new job can be exciting, for many it can also trigger significant anxiety. How do you cope? Here are four straightforward strategies to help you stay calm and focused.
This is a process
Finding a new job won’t happen in just one day. If you’re not called for an interview for your first application, don’t worry about it. See if you can view this as just another opportunity to review your application again, seeing what works and what doesn’t. It’s normal to feel nervous in the face of the uncertainty of the job hunt, so be understanding toward yourself. A little self-compassion can go a long way.
Be properly prepared
When applying for a job it’s very important to have a CV prepared in the right format. If you’re called for an interview after preparing your CV and applying for a job, try to embrace your emotions like anxiety and excitement – it’s very normal to feel that way. These emotions can help clarify your purpose, but if you let them consume you then you’re more likely to stress yourself out even more.
You have a higher chance of success if you go into the interview with a calm state of mind. Before the interview make sure to gather information about the company and the position you’ve applied for, as well as a list of what you’re bringing to the table. Know your worth!
Each interview is an experience
It’s very important to remember that each job interview is an experience you can learn something from. So consider both your own conclusion and the feedback given to you by the interviewers as you prepare for future interviews. That way, you can review and tweak things to be better prepared next time. Growth is important and being able to take in constructive feedback and apply it to your advantage is a skill that takes time. Don’t let it damage your self-confidence, because when you know your worth the other people around you feel that and you’ll be able to communicate more easily and clearly.
Embrace fear of rejection
Considering a job interview as a learning experience, whether the outcome is positive or negative, will only serve you in the future. When it comes to work, the rule of ‘right time, right place’ applies. Of course, there’s a suitable job for everyone.
Maybe you need more time… You may be rejected several times until the right time comes around. But how can you be sure that it’s not going to open a door to a better job in the future? Not giving up despite the rejections you get can be challenging sometimes, but this process can open up space for improvement and guide you toward positive growth.
• Meditopia is a comprehensive mental health platform. Find out more at https://meditopia.com/en
Get connected
Intuit QuickBooks used its recent London Get Connected event to announce a raft of major product updates. So, what were they?
St Katherine’s Dock was buzzing with 400 members of Intuit’s accountant and bookkeeping community attending the annual London Get Connected show.
To mark the event Intuit QuickBooks unveiled a series of product updates designed to help professionals manage and grow their practices. These included advancements in QuickBooks Online spotlighting the readiness for Making Tax Digital (MTD) for Income Tax, new innovations in QuickBooks Online Advanced specifically designed to support growing small and midmarket businesses, and the latest updates on Intuit Assist, to bring more of the power of Intuit’s AI platform to UK customers.
Staying ahead of compliance
Making Tax Digital for Income Tax is coming, and Intuit provided details of key product deliverables to support readiness on its business platform:
• QuickBooks Ledger – a cost-effective plan for the basic needs of clients, looking to prepare and submit MTD for Income Tax and get estimates via their accountant or bookkeeper. It features automated bank feeds, bank reconciliation, financial statements and the ability for accountants to push data into QuickBooks Workpapers and tax preparation tools. This plan has now been enabled for the MTD for Income Tax testing phase.
• QuickBooks Practice Manager – with the introduction of MTD for Income Tax, practice management software helps accountants communicate with clients and colleagues to complete jobs to be done; streamlining recurring tasks, onboarding, storing client records, tracking communications and collecting signatures.
QuickBooks Practice Manager is now free as part of QuickBooks Online Accountant for partners with five or more QuickBooks Online licenses.
• QuickBooks Sole Trader onboarding support – with a double-entry bookkeeping back end, QuickBooks SoleTrader is designed for the 3.1 million sole traders, single property landlords and
subcontractors who need to record Construction Industry Scheme deductions, to manage receipts, mileage, expenses, bank transactions and invoices in one place. Intuit is exploring set up options to help accountants onboard clients onto QuickBooks Sole Trader ready for the MTD for Income Tax mandate.
• Introducing FRS102a – with its credentials in tax and accounts production, Intuit will bring Beta availability to QuickBooks Online Accountant users. Given new legislation to increase the monetary size thresholds of limited companies by around 50%, this new feature will enable QuickBooks Online and its accountant and bookkeeper community to support a growing cohort of customers with their Companies House disclosure requirements, whilst containing all their transaction data on Intuit’s business platform.
Innovations in QuickBooks Online Advanced Enhanced QuickBooks Advanced features include:
• QuickBooks Online Advanced already provides role-based access controls, which are critical as businesses grow in size and have multiple employees accessing the software. This system is being expanded further with the ability to assign more specific roles and permissions based on what a team member needs to perform their job. Limiting access to sensitive information provides more effective segregation of duties and tasks, while maintaining safeguards of financial and payroll data.
• Approval workflows are also being enhanced with the ability to set more granular conditions and multiple approvers, to further streamline processes.
• QuickBooks Online Advanced provides a number of financial planning tools. These have been built out further to include the ability to create and customise P&L forecasts that can then be easily amended and converted into budgets. This supports the financial planning needs of businesses as they grow.
Intuit’s AI platform
Through Intuit’s AI-driven expert platform strategy, the company is delivering ‘done-foryou’ experiences for businesses and partners –bringing to life its vision to grow the revenue and profitability of its customers. Part of this includes continued focus on bringing Intuit Assist to the UK.
• Late last year, Intuit invited QuickBooks Online UK customers to sign up for the Intuit Assist Beta, which will be available in the coming months. Generally available to US customers since November 2024, Intuit Assist is delivering connected ‘done-for-you’ experiences, enabled by AI with access to AI-powered human experts. It allows customers to delegate daily administrative tasks like creating invoices and estimates, categorising transactions, and auto-matching expenses. From the QuickBooks home page, users access a new Business Feed offering a dynamic view of their business, highlighting the work that Intuit Assist has done for them to review.
• Intuit Assist also helps accomplish one of the most important goals for growing businesses – getting paid faster – with AI-generated invoice reminders for overdue invoices helping businesses get paid 45% faster, an average of five days sooner. It also provides personalised recommendations, surfacing cash flow insights and other tailored guidance directly in customers’ Business Feed – a central hub that delivers key business insights and actionable tips.
Nick Williams, Product Director at Intuit QuickBooks, said: “Growing businesses often tell us they struggle with juggling multiple disconnected software tools. This can lead to reduced productivity, a lack of clear insights, and make it incredibly hard to scale their operations. For many sole traders, currently unaware of the benefits to be had, Making Tax Digital will feel like a journey into the unknown when it comes to using digital tools. We are fixing both these problems by providing a business platform that delivers end-to-end financial management and marketing automation, capable of growing alongside the customer. It caters for side hustlers right through to expanding mid-market firms, and turns a decade of AI innovation and data capabilities into a true asset for accountants and their clients.”.
The key challenges and opportunities that lie ahead
We spoke to the IFA’s Tim Pinkney about some of the major influences set to shape the sector this year
Profitability and cash flow will naturally be the top two priorities for businesses in the wake of the Government’s Budget last autumn, according to Tim Pinkney, Director of Professional Standards at the Institute of Financial Accountants.
He said: “The increase in minimum wage and employer National Insurance contributions from 13.8% to 15% will lead to higher employment costs for companies, impacting profitability and short-term viability.”
However, Pinkney stressed that “businesses have learned lessons from Covid in terms of resilience, which will no doubt help them navigate the months ahead”. He added: “2025 will call for a more proactive approach from directors and business owners, one which will see them using practical strategies, such as improving operational efficiency, to bolster their financial performance.
“A focus on effective cash flow management and tackling bad debt head on, as well as getting the right support from their accountant, will help them prepare for the challenges of 2025 and to secure long-term sustainable growth.”
Technology and digital transformation will continue to be a subject at the forefront of business as we move through the year, Pinkney said. As more firms explore AI and its increasingly vital role in accounting and business, what’s also important is for firms and practitioners to find a balance in the shift to digital transformation, he said.
He added: “Technology isn’t a one-sizefits-all solution. Different firms have varying priorities and strategies based on their size and resources, so it’s crucial for businesses to ensure that the technology they choose or invest in genuinely adds value. They need to ask themselves: does it improve customer experience? Does it enhance operational efficiency? And does it encourage employees to be more productive in the areas of highest return? If the answer is no to any of these questions, it could be that accountants are not leveraging the right technology that works best
for their business.
“It’s fair to say that technology is a vast, complex area, so it’s important that it’s the right solution for their requirements as well as their clients. This is why in 2025, accountants will need to find a balance between utilising technologies such as AI and cloud-based computing, while also maintaining the trust, personal connections, and ethical standards that are fundamental to the profession.”
Meanwhile, Web3 (also known as Web3.0, which refers to the next generation of digital that encourages user experience and transparency) is poised to lead the way, creating major opportunities for accountants, he said.
“Decentralised finance, smart contracts, and blockchain-based cross-border payments are expected to revolutionise how small and medium-sized enterprises operate, cutting transaction costs, enhancing efficiency, and promoting seamless international trade,” he said. And, despite regulatory challenges that need to be addressed, Pinkney sees the significant benefits brought by decentralisation, such as interoperability and enhanced data security, presenting a great opportunity. “It’s the ideal time for accountants to consider their role in a decentralised virtual marketplace. New technologies will inevitably open up exciting avenues for innovation in financial reporting and leveraging blockchain to enhance client services. This calls for them to broaden their understanding of important topics like smart contracts, the fundamentals of blockchain, and decentralised applications (dApps) – all vital aspects of Web3.”
One other area that must be addressed as a priority is MTD for ITSA, as the new regulations come into force in April 2026. “MTD for ITSA isn’t being implemented in 2025, but there is a danger that accountants and businesses will be woefully underprepared if they delay their preparations any longer”, warned Pinkney. “Due to several delays in the past, it’s tempting to expect yet another postponement. However, this is unlikely, so sweeping it to one side until it comes into effect next year will make an already challenging transition even more difficult. As a first step, it’s essential for accountants to fully understand the MTD ITSA requirements and what they mean for both them and their clients.”
He continued: “One effective way to prepare is by considering joining HMRC’s MTD ITSA testing programme. HMRC is actively communicating and engaging with professional firms and practitioners, regularly highlighting MTD in its Agent Update and other newsletters. To ensure a smooth transition for the rollout in April 2026, businesses need to utilise compatible accounting software that can easily transmit updates to HMRC.
“HMRC has released a list of software that meets MTD ITSA compatibility requirements. The priority for 2025 is to be ready.”
Dear Karen
Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen
THE DILEMMA
I’d like to improve my knowledge of the broader finance and accountancy sector but am not sure where to start.
KAREN’S RESPONSE
Being in the know when it comes to industry trends and changes is important for boosting your confidence, credibility, employability and overall career growth. Here are three ways to stay up-to-date:
1. Relevant journals and publications: There are some really valuable resources out there that can provide you with insights into the latest news, trends and any updates to regulations. Research accounting journals, research papers, newsletters and magazines.
2. Online platforms and communities: Find accountancy websites and blogs and keep an eye on the regular content they publish – online forums are also a good way to get a glimpse into expert opinions across the sector and to eventually engage in discussions and debates around current trends. You can also follow professional bodies and accountancy firms and connect with industry leaders on LinkedIn.
3. Formal courses and certifications: A tried-and-tested way to stay informed is through official training and development opportunities such as courses and workshops, whether they’re online or in-person. You’ll have access to updated curriculum and resources that will enable you to build a strong awareness of the sector and to understand where your role fits into the bigger picture.
Ultimately, feeling out the loop can significantly hold back your career progress, hence the importance of prioritising continuous learning.
• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person
Where is the guidance?
KPMG says business leaders recognise the risks with Gen AI, but guidance is lacking
Despite the promise of Gen AI, business leaders have significant concerns about its implications for business performance, according to research from KPMG UK.
Respondents cited the inaccuracy of results, including hallucinations*, as the biggest concern when adopting Gen AI (60%). Boards are also worried about errors in the underlying data and information skewing the model’s outputs (53%), as well as problems related to cybersecurity (50%).
However, just 30% of directors said that responsible Gen AI usage guidelines have been published
Record number of UK firms ‘created’
At the end of 2024 there were a record 5,637,210 companies in the UK, up from the 5,476,772 at the end of 2023. And during 2024, 848,192 companies were formed, and there were 690,501 dissolutions.
London saw the highest number of new business start-ups (280,423), followed by the West Midlands (41,700) and Greater Manchester (40,892).
John Korchak, Managing Director at Inform Direct, said: “It is excellent news that the UK can celebrate a record year for business during 2024.
“The year undoubtedly presented a range of challenges for business, with the uncertainty of the general election, the introduction of new regulations
and communicated throughout their organisation to mitigate these potential issues. This is even more concerning given that 42% of UK adults said they had entered workrelated information into GenAI tools, in a separate KPMG poll. This highlights the need for faster
and concerns over Labour’s first Budget in October, which included the increase in employer National Insurance. World events also played a part in economic volatility, with the US election and instability in the Middle East high up on the list.
“Despite all these factors, business people in the UK demonstrated great resilience and inspired leadership, evidenced in this successful result.”
In total, there were 719,157 company formations in England, 38,273 in Scotland, 39,821 in Wales, and 17,408 in Northern Ireland.
The statistics are taken from the Inform Direct Review of Company Formations, using data from Companies House and the Office for National Statistics.
roll out of usage guidelines in the workplace.
Algorithmic bias (43%) was identified as another major worry by board members. Yet a mere 8% indicated that their organisation has processes in place to measure it.
KPMG’s head of AI, Leanne Allen, said: “Given boards’ concerns, it’s important that companies thoughtfully define a clear AI strategy rather than merely chase the next technological innovation. This strategy should balance the value, cost and risk associated with AI use cases. This strategic equilibrium is crucial for both progress and stakeholder trust.”
*‘Hallucination’ is defined as when a large language model (LLM) generates false or misleading information.
Scottish workers most optimistic Scottish workers are more optimistic about their career than the rest of the UK, according to the latest data from recruitment experts Robert Half. Its study found 61% of workers in Scotland are confident about their job prospects in the next six months. This is above the UK average of 55% and indicative of the continued impact of skills shortages across Scotland.
Reggie McMahon, Branch Director, Scotland, at Robert Half said: “Scotland holds a wealth of opportunity for workers and businesses across professional services. However, employers are clearly feeling the continued pinch on access to highly skilled professionals.”
The PQ Book Club: books you should read
See Your Elephant: Discover What’s Holding You Back from Your True Potential by Dr Jo Brown (Wiley, £16.95)
We all know about the idea of there being an ‘elephant in the room’. Dr Jo Brown has now taken this concept a step forward and she wants you to find your elephant.
She explains you need to think about your elephant as your blind spot – it is the thing you cannot or immediately see. And it is this blind spot that can stand between you and your true potential.
Brown believes your elephant will distort your perspectives,
beliefs and even the actions you take. But the problem is that you will never see your elephant until you make a choice to find it.
She provides you with a selfawareness questionnaire to help you go in search of your elephant. You also need to try her four pillars of performance, to help find your performance gaps. By identifying your purpose and perceptions you can find the best performing you.
She touches on things that are often avoided in other selfhelp books. Boredom is rarely mentioned, but she takes this
one head on. For her boredom typically emerges when there is a mismatch of values, attention, goals, and interventions. She also looks at coercion, distraction and turmoil, too. There are lots of great exercises to do; in one she asks you to practise humility and asks the question, “do you live with grace?”
PQ RATING 4/5: A book to make you think. Now we are off to find our elephant!
In brief
Get your ‘accountant starter kit’
What is in an accountant’s starter kit? Well, Jon Stewart on his Daily Show seems to have a fair idea.
On a recent episode he was talking about the new US department of government efficiency (DOGE), run by Elon Musk –so he got one together.
Stewart felt that finding money shouldn’t be that hard and perhaps he could save the taxpayers some money. So, he decided to become an accountant and produced an adding machine, down light, visor, pad of paper and ‘world’s best dad’ mug. He said he got it off Amazon for $5,000 – and that his accountant told him not to get it! But he did…
One of his suggestions to save money was to take back the $3bn in subsidies to oil and gas companies, which already make billions in profits.
AccountantsWhoCook
PQ magazine recently joined BlueSky, and were pleased to come across @accountantswhocook.com. They are, we are told, “a mix of tax and accounting folk sharing recipes and supporting some charities”.
And, as it says in its posts, they welcome bookkeepers that bake and CPAs who sauté. Among the dishes on show are Brian Streig’s spaghetti and meatballs, a perfect dish for a cold winter night.
Unfortunately, it would seem accountants don’t cook, as the last post on the website was 2023 However, Brian is keeping the pictures coming on BlueSky… it is time to give him a hand!
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A $81tn ‘near miss’
Citigroup recently admitted it credited one of its client’s account with $81 trillion last April, instead of sending the $280 due! The transfer was apparently missed by both the payments employee and then a second member of staff whose job it is to check transactions before final approval. Luckily a third employee saw the problem when the transaction hit the bank’s own bank statement and caught the payment 90 minutes after it was posted. The payment was then reversed several hours after that. No funds actually left Citigroup.
It has been suggested this latest revelation might hinder the bank’s attempts to persuade regulators that it has fixed long-standing operational issues.
The Financial Times said that Citi had a total of 10 near misses of wrong payments greater than $1bn last year. This was in fact down on the previous year when there were 13 wrong payments made above the $1bn mark.
Introducing Majorana 1
In a new scientific breakthrough Microsoft says it has invented a new state of matter separate to solids, liquids and gases, which will help it create the world’s most powerful computer.
The ‘quantum computer chip’ generates new types of particles that exist in a topological state. Such topological states had only existed in theory and require a delicate combination of magnetic fields, new materials and temperatures of absolute zero so that they can be created.
Microsoft’s Majorana 1 is the world’s first Quatum Processing Unit (QPU) powered by a Topological Core, designed to scale to a million qubits on a single chip.
Aberdeen is back!
Whether you’re in LDN, NY or Abrdn, we all know where we are with these acroyms. However, when investment group Aberdeen rebranded as Abrdn, let us say it was not a universal hit.
Now, four years down the line, the finance giant is reintroducing the vowels back into its name. CEO Jason Windsor (or is that Wndsr?) admitted the change has been made to prevent ‘distractions’ from the company.
Aberdeen’s chief investment officer, Peter Bramner, said last year the backlash to the name change amounted to ‘corporate bullying’. He also felt the media had behaved childishly over the change.
Next move for Aberdeen is to change its trademark and registration at Companies House.
W E V E G O T T H E L O T
AAT practice workbook
We have joined forces this month with regular PQ contributor Teresa Clarke to give away three of her ‘Understanding debits & credits’ practice workbooks. This workbook has been written to give you more examples to work through. It contains 25 practice questions with fully explained answers, and is suitable for students studying Levels 2 and 3 bookkeeping and accounting. It includes tasks for basic debits and credits, the suspense account, payables and receivables, irrecoverable debts, discounts allowed, VAT control accounts and more. This book is part of Clarke’s accountancy revision workbooks series – of which there are now 31!
To go into the hat to win one of these books just send an email headed ‘Debit & credit workbook’ to giveaways@pqmagazine.com, along with your name and address.
Is QuickBooks’ swag the best?
PQ magazine recently headed to London Get Connected to check out the raft of new product updates from Intuit QuickBooks. We have written a feature about it in this issue as there were so many! So, QuickBooks has the tech covered, but on our way out we couldn’t believe the fantastic swag that was up for grabs. We walked away with a Regatta gilet, some great coffee from Chipp Coffee Co. and a coffee mug warmer. But don’t worry if you couldn’t make it, we have lots of swag to send out to you!
To be in with a chance to win some great Quickbook swag simply email us at giveaways@pqmagazine.com with your name and address. Head up your email ‘Quickbooks swag’.
Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway entries must be received by Friday 11 April 2025. The main draw will take place on Monday 14 April 2025.
