AAT or ACCA?

[ninjabib]

Back again!

Previously posted enquiring about becoming a mortgage advisor however after more deliberation i've given some thought to becoming an accountant.

I've been aware of AAT for a long while now and was looking into that but someone mentioned ACCA as being the better certification to follow but couldn't explain why (I assumed they passied on what they heard from a friend).

Currently in my mid 30s, got a degree (not finance related) in Sound Engineering , JUST got a mortgage . Earning 35k-ish. No kids. Live alone.

Currently working in a soul destroying job for a car manufacturer but redudancies are being made and as i am an agency worker i fear for my future. I survived the first round of cuts yesterday but more to come at Xmas.

So this leads onto my second question at which point/level on the learning path on either course could i start to apply for junior accounting roles or would i not be able to until i finished the course completely?

If my current company make me redundant i'd happily take any job to keep a roof over my head while learning but the goal is to get out there and earn and learn at same time!

Thanks in advance

 

[cheesyboy]

AAT is like an HND, whereas ACCA is like a Masters.

(And doing AAT will give you an exemption from the first few ACCA exams - it used to be the first 6 exams (from a total of about 13 - the later ones are much more challenging), but the structure has changed a bit since I did ACCA, so not certain on the setup now)

Most people do the exams whilst working in a junior accounting role. You'll need practical experience more than you'll need the qualifications, really, but starting on them might help you get a position.

 

[ninjabib]

Thanks for the info. So if you were in my position which one would you start with Cheesyboy?

 

[wingman]

Mid-twenties guy here who has completed AAT and half way through ACCA, so hopefully in some position to advise.

ACCA is the next step after AAT, CIMA is also an option. A big crossover in both but essentially CIMA is more management accounts and ACCA is financial accounts (think working in practice vs working for a company, although not strictly speaking always the case).

The structure nowadays is that if you have completed AAT Level 2, 3 and 4 (6 months on the first two levels, a year on the last), then you get the exemption from ACCA F1, F2 and F3.

My personal advice would be to forget AAT, it's a great grounding to the industry but nothing that won't be covered within the fundamental ACCA papers. Besides, completing F1, F2 and F3 (ACCA) should only take a year at most, so you'll be well ahead of the curve.

You could certainly apply for a junior role but you'd need to take a major cut in salary with no experience in the field, on the flip side you'd be hard pushed to jump into a role which requires either qualifications, experience or indeed, both.

Is your current role soul destroying or the industry itself? Accountancy is something you'll need to work at for many years to understand and progress within, not trying to put you off but you need to be realistic about your expectations, so long as you are then more power to you. Accountancy isn't something that's for everyone, and certainly has it's moments of soulless work.

If you have any questions feel free to ask!

 

[ninjabib]

You could certainly apply for a junior role but you'd need to take a major cut in salary with no experience in the field, on the flip side you'd be hard pushed to jump into a role which requires either qualifications, experience or indeed, both.

Is your current role soul destroying or the industry itself? Accountancy is something you'll need to work at for many years to understand and progress within, not trying to put you off but you need to be realistic about your expectations, so long as you are then more power to you. Accountancy isn't something that's for everyone, and certainly has it's moments of soulless work.

Many thanks for the info!

1) I understand i'd have to take a major cut and happy to do so. Is it possible to get an entry level job in Accounting armed with a desire to get on and proof of self-study? I could go down to 20k rock bottom to afford my mortgage. Happy to take a loss for now to get back up in a few years time.

2) My current role. It is menial labour work. Repeating a process every 80 seconds or so. Only been there 2 years and it takes 5 to get a contract/sick pay/pension/ability to apply for internal promotion etc. Literally a dead end job but one that pays well.

For the little it's worth i did Accountacy A level many moons ago but due to personal circumstances had to drop out after finishing year 1 of college. That year i did however i quite enjoyed Accounting. Accepted ACCA is a lot more advanced.

 

[wingman]

Do you have anything concrete in terms of that accountancy A level, as in an AS level maybe? I ask as that might genuinely buy you an exemption or two.

With your age and experience in other fields, you should be able to meet that £20k requirement, certainly working in industry. You'll find most practices paying tuppence in the starter years, only really taking off when you're fully qualified and experienced in the field (the flip side of that coin is that practice is normally a far better option for your career development, more pure accounting).

Your current job certainly doesn't sound fun, I can't imagine an accounts role being anywhere near that mundane. Sure, if you go in an accounts admin bod job you might be processing invoices all day long but I'd be stretching for something more meaty than that.

Whether or not the company supports your study is completely down to their policies rather than you yourself, however coming across as someone eager to progress is always a positive.

Perhaps even studying the very first ACCA F1 paper yourself and taking the test is a great start, it would prove to employers that you're serious about the career and it should net you a better job to begin with. I'd wager two or three months could see you having that done (even sooner if you're that keen).

For me it's been a fantastic career choice, I've not had to go to Uni in my life and thus far my various employers have paid all of my tuition fees (except for my current employer, a story for another time).

 

[ninjabib]

As mentioned i left at end of year 1 but we had to take an exam to continue which i passed anyway. It got me a GCSE 'B' in Accountancy. Any use?

Being honest i can't remember how to do anything from it really, just remember the terminology, purchase ledgers, balance sheets, depreciation etc.

To clarify i was not asking for a company to support me, i've always been self-taught with my IT qualifications, paid myself and studied in my own time.

 

[Rids]

Many thanks for the info!

1) I understand i'd have to take a major cut and happy to do so. Is it possible to get an entry level job in Accounting armed with a desire to get on and proof of self-study? I could go down to 20k rock bottom to afford my mortgage. Happy to take a loss for now to get back up in a few years time.

2) My current role. It is menial labour work. Repeating a process every 80 seconds or so. Only been there 2 years and it takes 5 to get a contract/sick pay/pension/ability to apply for internal promotion etc. Literally a dead end job but one that pays well.

For the little it's worth i did Accountacy A level many moons ago but due to personal circumstances had to drop out after finishing year 1 of college. That year i did however i quite enjoyed Accounting. Accepted ACCA is a lot more advanced.

You may face the same issue that I had with ACCA with regards to your lack of a degree. I have a similar educational background to you, although I did complete my Accounting A Level. However I was forced to sit the ACCA Foundation stuff before I was able to progress onto the full qualification. I think its the Certified Accounting Technician path if I recall the name correctly. Its not difficult, its really not difficult as long as you put the time in. The first few papers had questions such as "What is the value in cell B21" and a picture of an Excel spreadsheet.

Look into this now, contact the ACCA and see if you're eligible for the full qualification. You need to understand the full picture before you decide between AAT and ACCA. Personally if you can't get straight onto the full ACCA qualification then I'd do AAT first, its a recognised qualification where as the CAT stuff really isn't. However if you can bypass that and start straight onto the full ACCA paper, I don't think doing AAT first adds any value if progress straight onto ACCA is available.

With regards to breaking into accounting without any experience / qualification, it is completely possible. There are a lot of "accounting" roles for which absolutely zero study / prior knowledge is required and you can pick it all up on the job. The most important thing is a willingness to learn, and always seek to understanding why you do things as opposed to blindly following process notes. It does depend on the roles available where you are based though, certainly in and around London I wouldn't see it being an issue, but I don't know what the market for accountants is like in your area.

 

[ninjabib]

Cheer Rids!

Just spoken to ACCA and they say although i have no A-Levels my Degree supersedes them so i am eligible to start on F1. I don't have to do CAT.

So ACCA for me is what you would recommend?

 

[Kris_90]

I've completed AAT and after December I should be starting the Professional level of ACCA.

If I was to do it all over again, I would still do AAT first however it will add at least two years onto the time you expect to become qualified (which is at least 3 years in itself). If you start with AAT you'll only gain exemptions from F2. AAT's syllabus changed in 2013 (the year I finished it) and ACCA decided you'll still have to sit F1 & F3.

AAT gives you a very good basic knowledge of everything. F1-F3 combines 3 years of AAT into about 6 months worth of work. As you can imagine there is a fair bit not included within F1-3 that is included in AAT.

The decision you'll have to make is are you happy to potentially complete the qualification in a shorter period but with the risk of not having a solid understanding of the basics. As you progress with ACCA, the basic knowledge is built upon therefore if you don't understand the basics you'll struggle.

As for accounting roles, expect an accounts payable/receivable type role (paying/raising invoices) which doesn't really require a qualification. However you might get lucky and get a more enjoyable role.

Good luck with whatever route you choose, if you want any more information - let me know

 

[dowie]

I wonder how long these roles will last for, while I don't doubt that there will still be accountants in future better IT ought to mean that a significant number of these roles ought to be made redundant over the next 15-20 years or so.

 

[Pudney]

I wonder how long these roles will last for, while I don't doubt that there will still be accountants in future better IT ought to mean that a significant number of these roles ought to be made redundant over the next 15-20 years or so.

Anything routine can (and will be) automated, so bookkeeping, ledger clerks, large swathes of auditing etc. will go. But if you get yourself into an area that requires judgement or creativity you'll find a much more secure future. Certainly worth considering when you're thinking about entering the profession and potential career routes though!

 

[Kris_90]

Anything routine can (and will be) automated, so bookkeeping, ledger clerks, large swathes of auditing etc. will go. But if you get yourself into an area that requires judgement or creativity you'll find a much more secure future. Certainly worth considering when you're thinking about entering the profession and potential career routes though!

Indeed. The typical accounts payable type roles are starting to get automated now however as you progress in an accountancy career, you'll be required to make decisions based on your experience and technical knowledge.

I don't see that being automated within the next 10-20 years.