Accountancy and Book-keeping

Whether you're looking to build a career as an accountant or bookkeeper, or planning to start your own business and need to understand the ins and outs of managing your finances, the world of accountancy and bookkeeping offers rewarding opportunities. Keep reading to discover how your skills can translate into a successful role in this essential industry.

What’s involved in accountancy and book-keeping?

Accountancy offers significant professional growth, with qualifications providing access to lucrative income potential and international career opportunities. Chartered accountants, particularly those with CIMA (Chartered Institute of Management Accountants) qualifications, often move into broader management roles or even start their own businesses. Their expertise includes overseeing financial matters, providing advice, and working in specialized fields like auditing.

Bookkeeping, on the other hand, focuses on the accurate recording of financial transactions, including managing invoices, payments, and receipts. Bookkeepers (or accounts clerks) play a vital role in maintaining financial records and often work closely with senior finance professionals in larger organizations.

For Service leavers, many military roles involve managing assets, budgets, and financial records—skills that easily transfer into accountancy and bookkeeping. Further qualifications in these fields can smooth your transition and expand your career opportunities.

Transfer your skills

- Military Experience and Financial Duties:
In the Armed Forces, roles such as military finance administrators, supply chain managers, or budget overseers often involve managing financial records, assets, and budgets. These responsibilities are highly relevant to both accountancy and bookkeeping roles in civilian life, even without formal qualifications.

- Second Career Opportunities:
Accounting is increasingly valued in the civilian job market, particularly due to initiatives like Making Tax Digital (MTD) and greater regulatory compliance. Veterans with financial management experience can easily transition into accounting or bookkeeping careers, whether full-time or as part of a broader professional portfolio.

- Training While Working:

Pursuing accounting qualifications is flexible and can be done remotely while working in other sectors. However, full qualification typically requires practical experience alongside theoretical knowledge.

Service leavers with a background in financial management or asset oversight have a strong foundation to build upon for civilian accounting or bookkeeping careers, and with the right training, they can seamlessly transition into these rewarding fields.

How do I qualify as an accountant or book-keeper?

To become a qualified accountant, you’ll typically need to complete three years of study, exams, and relevant work experience. Training for professional exams can be pursued through private tuition, online study platforms, or employer-supported programs. Early career progression is possible, especially in roles like corporate finance and commercial accounting. For those interested in public finance roles (such as with the CIPFA), there’s a more structured promotion pathway.

Several professional bodies regulate accounting and bookkeeping qualifications in the UK, with the key organizations listed below. These bodies set the standards and qualifications necessary for a career in accountancy. For further details on specific qualifications and bodies, refer to the ‘Useful info’ section.

Institute of Chartered Accountants in England and Wales (ICAEW)

ICAEW members work across sectors like finance, commerce, and public practice, with roles in auditing, taxation, and financial management. Becoming an ACA requires a three-year training contract, passing ICAEW exams, and gaining work experience. Full details are available on the ICAEW website.

Chartered Institute of Public Finance and Accountancy

CIPFA focuses on financial management in public services. Chartered public finance accountants influence decisions and assess financial viability within evolving service environments. Learn more about CIPFA’s Professional Qualification system on their website.

Association of Chartered Certified Accountants

ACCA offers qualifications for careers in financial or management accountancy, with members working across diverse sectors such as healthcare, industry, and finance. Full details of their qualification scheme are on the ACCA website.

Chartered Institute of Management Accountants

CIMA qualifies professionals as management accountants, using financial skills to improve decision-making in organizations. This qualification is valuable for roles from project analyst to executive chairman. Details of CIMA’s management accounting qualification can be found on their website.

Association of Accounting Technicians

AAT offers technician-level qualifications, leading to roles from accounts clerk to financial controller. Their certifications provide pathways to higher qualifications with organizations like ICAEW and ACCA. Learn more on the AAT website.

Institute of Financial Accountants

IFA membership is for senior financial accountants, typically in board-level roles across industry and commerce. They also offer qualifications like the Diploma in IFRS. Visit their website for more details.

International Association of Book-keepers

IAB offers qualifications for bookkeepers, with exemptions for holders of other accounting awards. Their programs lead to higher-level qualifications with other accounting bodies. More information is available on the IAB website.

Association of International Accountants

AIA is an internationally recognized body for auditors, requiring three years of accountancy experience and successful completion of exams for their Professional Accountancy Qualification. Find more details on their website.

For military personnel considering transitioning into accounting or financial roles, these bodies offer diverse paths and qualifications, often recognizing prior experiences and enabling growth within the accounting and financial management spheres.

A Guide to ELCAS Funding for Accountancy and Bookkeeping

The Enhanced Learning Credits (ELC) scheme stands as a valuable resource for armed forces personnel transitioning into civilian life, offering financial support for pursuing further education and training.

For those eyeing a career in accountancy or bookkeeping, the ELC scheme can facilitate the acquisition of essential skills and qualifications required in these fields.

Understanding ELCAS Funding:

• ELC Scheme Overview:
  ELCAS funding empowers service leavers to undertake educational programs provided by approved institutions listed on the ELC website, as long as the courses are at level 3 or higher.

• Financial Support:
  The scheme provides financial assistance for service leavers' professional development, assisting with the costs associated with relevant courses, certifications, or qualifications.

Utilizing ELCAS Funding in Accountancy and Bookkeeping:

1. Choosing Suitable Courses:
Look for ELCAS-approved courses specifically designed for accountancy or bookkeeping, covering topics like financial accounting, management accounting, auditing, taxation, or related software training (e.g., accounting software proficiency).

2. ELCAS Eligible Providers:
Identify institutions or training centres recognized by ELCAS that offer comprehensive courses in accountancy or bookkeeping. Ensure the selected courses meet the level 3 or above criteria for eligibility.

3. Certification and Qualifications:
Aim for courses that lead to recognized certifications or qualifications in accountancy or bookkeeping. This may include qualifications from professional bodies like ACCA, CIMA, AAT, or ICAEW.

4. Transition Support:
Many educational providers offer tailored support for armed forces personnel transitioning to civilian life. Look for programs offering mentorship, career guidance, or work placements to ease the transition.

Making the Most of ELCAS Funding:

Research and Planning:
Explore the ELC website to identify approved providers and courses relevant to accountancy and bookkeeping. Consider your career goals and the skills required in the industry to make informed choices.

Maximizing ELCAS Credits:
Understand the credit allocation available under ELCAS and plan strategically to make the most of the allocated funds for the chosen courses or qualifications.

Seeking Advice and Guidance:
Leverage the resources available on the ELCAS and Quest websites, offering detailed guidance on how to optimize ELC funding for educational pursuits. Engage with career advisors or educational counsellors for advice.

Application Process:
Once a suitable course is selected, follow the application process outlined by ELCAS and the chosen educational institution to utilize the credits effectively. The ELCAS funding scheme offers armed forces personnel an excellent opportunity to transition into a promising career in accountancy or bookkeeping by facilitating access to high-quality educational programs and professional qualifications. Leveraging these resources can significantly enhance prospects in the industry and ease the transition into civilian professional life.

Finding a job

Transitioning from the Armed Forces to a career in accountancy and bookkeeping offers a wide range of opportunities, from high-level roles like finance directors to part-time positions managing accounts for local businesses. Whether in the public or private sector, jobs can be found in public practice firms or in-house departments of large companies.

For Service leavers, skills such as leadership, decision-making, and attention to detail are highly valued and make the transition smoother. Leveraging veteran-friendly employers, networking within the industry, and utilizing ELCAS funding for further qualifications can greatly enhance job prospects. Tailoring your CV to highlight these skills, seeking mentorship, and continuing education all contribute to a successful career shift into accountancy and bookkeeping.

Accounting and book-keeping for business start-ups

Maintaining accurate accounting records is crucial for business success, especially with the introduction of Making Tax Digital (MTD). Small businesses are now required to use cloud-based accounting software like Xero, QuickBooks, and Sage for tax submissions. These tools ensure compliance with MTD regulations and simplify the process of accurate tax reporting. Clive Lewis, Head of SME Issues at ICAEW, highlights the importance of good record-keeping, which not only ensures compliance but also aids in effective business management.

For Service leavers transitioning into entrepreneurship, understanding the role of accounting and bookkeeping is vital. Proper financial record-keeping helps you comply with tax laws while providing a solid foundation for growing your business, making informed decisions, and ensuring financial stability.

HMRC checks on tax returns

Accurate accounting records are essential to satisfy tax authorities. HMRC, responsible for overseeing tax returns, conducts compliance checks if there are concerns about the accuracy of self-assessment, Corporation Tax, or VAT returns. These checks may lead to assessments or amendments to recover any outstanding tax, and taxpayers have the right to request reviews or appeals against HMRC decisions, including an independent tribunal hearing.

HMRC also inspects record-keeping practices and increasingly uses its "Connect" system to digitally analyse discrepancies in tax returns. Initial inquiries may involve phone calls to assess whether businesses meet legal record-keeping obligations. If necessary, HMRC may conduct on-site visits to verify compliance. Failing these assessments can lead to additional tax payments and penalties.

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Records for Value Added Tax (VAT)

Every business registered for VAT is required to maintain financial records that comply with the guidelines provided by HMRC.

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Records for employers

Employers must maintain records for Pay As You Earn (PAYE) and tax calculations. The introduction of Real-Time Information (RTI) means employers must report this data to HMRC every time employees are paid. The introduction of Real Time Information (RTI) necessitates that employers inform HMRC about their payroll concurrently with employee payments.

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Limited company accounts

It is a requirement of the Companies Act that every company should keep proper accounting records of money received and paid, of all sales and purchases, and of assets and liabilities.

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The ICAEW’s Clive Lewis has contributed a series of features to QUEST, under the title ‘Preparing for business’, highlighting all you need to know about starting and running your own business. Enter the words ‘Clive Lewis’ into the search function on the Quest website to find out more.

For further information about starting your own business, click here to read our in-depth Business Start-up feature.

To view our full list of Accountancy and Book-keeping training courses - Click here