The GAAPweb blog

The era of the Facebook faux pas is over

Six years after the launch of the social networking giant, has the job-seeking public finally caught on to the fact that employers check the social networking pages of their potential hires?

Over the past year, only 0.01% of candidates whose CVs impressed potential employers failed to secure job opportunities due to questionable social networking profiles. This compares to 0.1% in 2006.

Six years ago, we saw the first social-networking slip-ups from candidates. They rose to a crescendo in 2006 when the use of sites like Facebook exploded in popularity – but people still hadn’t figured out quite how sensitive some of their information could be. Fortunately, the job market at the time meant a lot of candidates who made these mistakes got away with it. Although employers deal with Facebook faux pas more harshly now, most people have wised up. The era of the recruitment Facebook faux pas is effectively over.

This year, only 3 out of 24,000 candidates whose CVs impressed future employers made a Facebook faux pas. This compares to 23 out of 24,000 in 2006, when the Facebook faux pas hit its peak. 

Most finance and accountancy professionals on the job market are now aware of the dangers posed by social networking websites. They know photographs that cast them in an unprofessional light should be made private – or deleted altogether. They know that derogatory comments about their existing boss won’t go down well with their next employer. But less obvious things – such as poor writing, spelling and grammar – can also raise red flags over a candidate’s name. Once an employer has clocked something dodgy on a profile, they have to decide if they are willing to take a chance or not. In a candidate-rich market such as this, the answer is usually ‘not’.

Effectively, the Facebook check has become the equivalent of a first interview. Once a potential employer has seen your CV, the next stage is to check the net.

Yet Facebook doesn’t always have to be detrimental in recruitment situations. Used correctly, Facebook can highlight qualities or interests that might not come up in a job interview.  As people seem to be learning, it’s about building a personal brand, not destroying it.

Facebook is a very effective way of keeping in touch with family and friends. Used correctly, it can also give a future employer a more ‘rounded view’ of who you are.  But used incorrectly – i.e. not having the right privacy settings – well, you can insert your own inappropriate nightmare scenario here.

In late 2009, an American investment bank in London turned down an excellent candidate after checking his Facebook profile. His potential employer saw he’d joined a number of ‘inappropriate’ groups.  As a result, he didn’t make it through for a second interview.

Although the era of the Facebook faux pas appears to be over, it may only be temporary. Facebook’s privacy settings are ever changing; finance and accountancy candidates need to keep a close watch on what material is made public.


Dave Way is the Managing Director for Marks Sattin and has worked with accounting and finance recruiter for over ten years. He has recruited for many of the company’s largest clients, including Air Products, MTV Europe and Discovery Channel.

The real cost of a degree

At the risk of showing my age, I very much remember the days when students who went to university would get a grant (I wish I was one of them). Yes, that’s right: all students got some money, although the amount depended on your family’s financial circumstances. Then came the days of student fees and student loans (just my luck). Today, most students leave university with a large debt to their name.

The Higher Education Act 2004 outlined that a university could charge fees of up to £3,000 per annum, variable from course to course, and varied with inflation by the government. Currently, this stands at £3,290 for 2010/11 academic year. This means that students now take out two loans: one for fees and another for maintenance (accommodation, food etc). This amount can range from about £3,500 to £6,000 per year. Researchers asked 2,000 students from 139 university campuses in England how much debt they had amassed (including credit card, bank debts and tuition fees) and the average was £5,293.

The amount owed is repayable based on income; a graduate pays 9% of their gross income over a £15,000 threshold. The interest is linked to the retail price index (RPI), and any loans outstanding after 25 years can be written off.
  
Having gone though this system, I remember how many friends really struggled to pay for food and other basics after paying for accommodation and fees. Many started part-time work, and this was fine when jobs were available. However, over the past two years, the number of students getting into financial difficulty has increased, with many wishing to work but with no jobs available. The amount of summer jobs available has reduced and consequently, part-time work for students has become much more competitive

Now we have a new coalition government with new ideas. Unfortunately, it is also a cash-strapped government looking for new ways to fund the debts it finds itself in. Vince Cable, the Business Secretary, is considering replacing the Income-Contingent Repayment (ICR) as described above with a new Graduate Tax Scheme.

In principle, the idea behind the Graduate Tax Scheme is that those who earn more pay more for university. In a speech to universities, Vince Cable said: “It surely can’t be right that a teacher or care worker or research scientist is expected to pay the same graduate contribution as a top commercial lawyer or surgeon or City analyst whose graduate premium is so much bigger”.

When I think about it, that is exactly what we do in the real world. The more we earn, the more tax we pay. I believe that slowly we will start to see more students go abroad for higher education; the danger that follows is that they will not return. We will slowly see a shortage of skilled labour that will only push the cost up for these professions: a simple case of supply and demand.

However invaluable education is, the fact remains: if it’s not affordable at the outset then we will lose those with so much potential but who are worried about how they can cope with debt. For those who do take the journey, isn't the government just putting more pressure on those who have so much pressure on them already?

So, what would a Graduate Tax Scheme mean for the next generation of accountants?

I believe that many more students will look to go straight into accountancy immediately after leaving school. The three main accountancy bodies (ACA, ACCA and CIMA) provide options for school leavers. The advantage is clear, you can earn at the same time as studying and if you get lucky, you could even be sponsored by a company.

The reason that more students don’t do that now is because university is a life experience. Additionally, if you have an accountancy-relevant degree, you get many exceptions from the above accountancy bodies therefore reducing time to pass exams.

However, if the cost of going to university goes up two-fold, would you bother? In my opinion, the majority will still go through university but over time the percentage of those who give university a miss will increase.

It would be a shame if student miss out on university life due to costs. Let’s hope the findings of a review by Lord Browne of Madingley, BP’s former chairman, result in an outcome that allows students to experience university life without accruing crippling debts.


Mehul Patel graduated in Actuarial Science from University of Kent before qualifying as a Management Accountant. As the Financial Controller of Trinity Mirror Digital Recruitment Ltd, part of Trinity Mirror plc, Mehul has the responsibly of budgets, forecasting and helping the business and the board find ways to continue expanding.

How to adopt a risk-based approach

Few money laundering cases have been as high profile as the prosecution of Manuel Noriega. The former dictator of Panama was found guilty, and subsequently jailed last month, for laundering £1.9m during his time in power.

All competent accountants would proceed with caution if Mr Noriega were to knock on their door. As a politically exposed person (PEP) with a series of negative news articles available for the world to see on Google, it’s obvious that no firms’ risk appetite would (or indeed should) be that high. However, when your client is not a former dictator with a criminal record, spotting where the risks lie can be difficult. Therefore it’s vital that accountants ensure that they use a risk-based approach to establish whether they should be doing business with their clients.

Accountants working in practice have experienced an increase over the years in rules for scrupulous anti-money laundering (AML) systems and reporting requirements. Those working in the sector must be aware of legislation such as the Proceeds of Crime Act 2002 (POCA) and the Money Laundering Regulations 2007. These acts introduced important changes to accountants’ responsibilities, including potential criminal liability for failures in systems that allow money laundering to occur. These regulations force accountants to report any suspicious activities to the Serious Organised Crime Agency (SOCA), or face stiff penalties and even the prospect of going to prison.

The Association of Accounting Technicians (AAT) has an anti-money laundering regime that supervises its self-employed members for compliance in that area. As a supervisor, the AAT monitors compliance and offers practical advice, as well as providing guidance and training. The aim of this is to support members in achieving compliance under regulations. Because money laundering is rarely as obvious as the Noriega case, accountants must demonstrate rigorous practice in managing this area of work in order to avoid falling foul of the POCA.  

AAT’s guidance recommends that members:

• Have a written AML policy in place and available for all to see;
• Undertake a risk assessment of all activity within the firm to identify high risk practice areas that are vulnerable to the threat of money laundering;
• Ensure they know their clients by being meticulous at the start of the business relationship and continue monitoring on a regular basis to identify any relevant changes to risk profile;
• Report to SOCA as soon as practicable if they have a suspicion that a client may be laundering money.

Accountants are likely to face scenarios such as the introduction of unusual (high value) transactions outside the client’s normal risk profile. They could also find difficulties in identifying and verifying the beneficial ownership of corporate entities.

The case of Noriega demonstrates the important role accountants play in the wider anti-money laundering agenda to prevent this type of criminal activity. Their role cannot be underestimated and it is AAT’s responsibility to guide them in the right direction.


Tania Hayes has been Conduct & Compliance Manager at the AAT for 18 months. She oversees conduct and compliance issues, the disciplinary process, professional ethics guidance and is the Money Laundering Reporting Officer for the association.

Business tax changes following the Emergency Budget

There is no doubt that following the Emergency Budget on 22nd June, most people are feeling financially worse off. But for the small business sector there are some silver linings, albeit temporary in some cases. Here are a few of the main business tax changes:

National Insurance Contributions

An unexpected measure announced in the Budget – taking effect from Budget Day – is the new relief from Employers’ National Insurance Contributions. This is for new business start-ups, based outside of the ‘Greater South East’ region. Relief will be available for the first ten new employees, for their first year’s employment in the new business. The relief will be capped at £5,000 per employee, giving maximum relief of £50,000. This scheme is intended to run for three years until 2013-14. Full details of the scheme will not be available until September 2010.

Capital Gains

One expected change is the increase in the rate for Capital Gains Tax (CGT). It was anticipated that the rate would be closer to the top rates of Income Tax, but it was actually increased to 28% where an individual’s combined taxable income and capital gains exceeds the £37,400 Basic Rate Limit for income tax. The 28% rate will only be applied to the excess gains, so taxable gains falling within the BR Limit will still be subject to the 18% rate.

Another change to the CGT rules is the increase to the lifetime limit for Entrepreneurs’ Relief.

For gains arising after 22 June the lifetime limit is raised to cover gains on business-related assets up to £5m. Gains made prior to the Budget will be covered by the previous limit of £2m. Any gains covered by ER are charged to CGT at 10%.

Corporate Tax

The rate of Corporation Tax for small companies (where profits do not exceed £300,000) will be reduced from 21% to 20% from 1 April 2011. Further annual rate cuts will reduce the main rate to 24% from 1 April 2014. These rate cuts are introduced as part of a general review of the CT scheme that will be undertaken over the next few years.

One likely outcome of this review is that some existing reliefs will be removed – partly to fund these reductions in the headline rates.

Capital Allowances

An example of the sorts of changes that might be made to tax reliefs is the proposed amendments to the Plant and Machinery Capital Allowances rules. These alterations will be effective from April 2012. The two rates of Writing Down Allowances will be reduced from 20% per year to 18% and from 10% per year to 8%.

VAT

The standard rate of VAT will rise to 20% from 17.5% with effect from 4 January 2011 – allowing the Christmas and New Year sales to go ahead at the lower rate. The rise will have a knock-on effect to the special rates for those using the VAT Flat Rate Scheme. Financial accountants are on-hand to offer firms expert advice and guidance on how the Budget specifically affects them and other financial issues. By working closely with accounts, small firms can ensure that their costs are kept to a minimum.



David Woodgate is chief executive of the IFA and a barrister by training. Before joining the IFA he was chief executive of the Institute of Administrative Management and held senior management positions in the City with organisations including Royal Bank of Scotland and NatWest.

Institute of Directors launches senior executive job and recruitment site in association with TotallyExec

The Institute of Directors, Europe's largest membership organisation for business leaders, has launched a job site in association with TotallyExec.

The site will provide IoD members with instant access to the latest director-level jobs and advice, as well as the opportunity to advertise senior executive vacancies to the senior professionals.

Paul Halliwell, Managing Director of Trinity Mirror Digital Recruitment, the company behind TotallyExec comments: “The partnership provides IoD members with the largest pool of UK executive jobs in key business functions.  It also allows our executive recruiters to reach even more senior professionals; both the active job seekers using TotallyExec and the passive candidates the IoD reaches through its member marketing.”

The job site offers executive candidates free access to over 2,600 director-level roles with a minimum salary of £60,000, from blue-chip employers, executive search firms and recruiters. 

Andrew Main Wilson, COO at the IoD said:  “In the current economic climate, every organisation needs to recruit high calibre management efficiently and cost effectively, so we are delighted to team up with TotallyExec, the leading job site for senior executive jobs in the UK. Members will now have access to a significant number of senior executive vacancies and the facility to advertise for senior executives at specially negotiated rates, which start from as little as £175.

Onwards and upwards

One question I find myself often asked as a recruitment consultant for the accountancy industry is: “Where will the industry be in 6 months?”. It’s impossible to judge; however, the Alexander Lloyd job index for Q2 – an industry benchmark of job flow – is pointing towards a more positive future for both candidates and clients in the accountancy industry, in both permanent and interim fields.

Taking a hit

In January 2009, senior finance professionals were taking a hit, with companies having to resort to redundancies and stripping down their teams to the bare bones. The months between January and June 2009 showed a severe drop in job flow, with March 2009 performing at 37% under the average. There was no marked improvement and pick up of vacancies until the later summer months. July’s improvement of 8% job flow suggested a confidence in the emerging market, and jobs continued to roll in with only a small decrease over the Christmas period, which was to be expected. Too much turkey equated to a lot less work.

Onwards and upwards

The New Year brought a fresh start, and with it some positive signs of recovery to vacancy flow, with the Q1 Job Index report noting a 113% increase in vacancies registered with the accountancy team’s consultants. The market had picked up and showed real signs of recovery, especially in the mid-level interim and permanent recruitment markets. Fortuitously, this increase has continued.

Within the accountancy market, the amount of permanent vacancies registered in 2010 has increased without exception on the 2009 figures. On the interim side, the June 2010 figures are the highest in the 18-month period from January 2009. There was a slight increase during the end of the financial year towards March/April, once again suggesting that businesses are more eager to spend during this period.
 
The May and June 2010 level of jobs registered have been the highest in 18 months for both interim and permanent accountancy roles.

With 2010 showing an unequivocal improvement on the previous year, it might be time to finally breathe a sigh of relief. The statistics of the report show a respectable increase in the number of vacancies registered, and point to a positive progression in the recruitment market following the negative impact of the economic downturn of the past two years.

Other financial recruitment companies are also experiencing a welcome rise in jobs needing to be filled, indicating that the industry is evidently experiencing growth again after a hard two years. With many businesses having had to close their doors and make redundancies, this news will come as a great relief to the many great candidates in the market. We are looking forward to Q3 and Q4 proving us right.



John Richardson joined Alexander Lloyd in 2003, and currently leads the Accountancy & Finance and Pensions & Benefits divisions. He is a Senior Manager within the organisation and specialises in the recruitment of qualified level Financial Directors and Controllers for both blue chip and SME clients, and also recruits niche roles such as tax/treasury, corporate finance and audit.

Changing role of accountants within the banking and financial services sector

Today’s finance teams are far more integrated into the businesses they serve. In fact in many cases, the finance function has moved from a back-office reporting role to proactively leading the business through change; finding ways to eliminate costs and to improve business effectiveness. We have seen a trend towards dividing responsibility bolstered by the growth of business partnering roles, resulting in a shift where finance works directly with other functions. These roles require greater commercial and communication skills. We are now seeing a growing demand for accountants and other finance professionals who offer more than traditional technical skills.

Over the past few years, employers have changed their requirements when recruiting accounting and finance staff – they now ask for professionals with broader commercial competencies. It is clear that over the past five years, the role of an accountant has changed beyond recognition. Gone are the days of accountants sat in offices crunching numbers; instead, they have greater involvement in commercially-focused activities. As a result, today’s accountant is out and about, influencing his or her colleagues to achieve better business performance through greater understanding of finance. The general feeling is that the changing role of an accountant is no more evident than in the banking and financial services sector. There is now greater pressure on finance teams to add value and provide commercial guidance in plain English.

We have noticed that even though accountants are recognising their changing role and scope, they are more focussed, perhaps wrongly, on developing their technical and IT skills in order to take the next step in their career. Having said that, there are pockets where employees’ thinking is more in-line with their employers’, and they understand that commercial awareness is the most important area for development.

At a time when cost control is at the heart of any organisation’s agenda, it’s no surprise that employers are looking for accounting staff to play a bigger role and to align themselves more closely with the business. This has led to the emergence of an increasing number of business partnering roles within banking and financial services companies. They are not alone. Over the past ten years, HR has moved to a business partnering model, looking to add greater value to strategy and decision making. Is there an opportunity for the two professions to learn from each other?

As organisations apply pressure on their accounting and finance departments to add value, it’s no wonder that employers need their accountants to develop commercial awareness, strong communication abilities and leadership skills to take the next steps in their career. It might be controversial to some and even unpalatable for the accountancy bodies, but many employers and employees believe that the training through qualification for the role of a ‘modern accountant’ does not provide all of the skills required. Professional bodies recognise they must keep pace with the changing demands and expectations of the profession, while employers need to focus on helping accounting and finance staff embrace the new aspects of their roles. As the demand for more ‘fully-rounded’ accountants grows, the issue is to what extent professional bodies should seek to fill the gap, and to what extent is this is the responsibility of the employers and employees? Equally, does accounting as a profession have a reputation that is out of sync with reality, and therefore resulting in attracting individuals with the wrong mix of personal skills? Either way, we will continue to monitor and observe the changing role accountants are playing in the banking and financial services sector.



Jamie Carter has had over seven years’ recruitment experience within the London-based Banking and Financial Services sector, covering different disciplines including accounting and finance, operational risk, middle office and operations, mergers and acquisitions, and corporate finance. However, he is also a specialist accountancy and finance recruiter within the investment banking sector. Jamie joined WH Marks Sattin as a Senior Consultant in January 2010 and is currently part of the permanent recruitment team focusing on the banking and financial services sector.

Britain’s accountants have got talent

The role of an accountant has, in the past, been predominately seen as a number cruncher. Despite their reputation as professional, trustworthy and ethical members of society, they were often considered to be backward thinkers. However, this role has evidently undergone an evolution over the last few decades. Providers of financial insight, technology and strategy, accountants now take a hands-on approach in guiding companies and preparing business strategies. As a result, the skills required by senior finance staff differ dramatically.

Finance managers, finance directors, chief financial officers (CFOs) – these are just some of the positions that many accountants have gone on to cherry pick. Although CFOs date back to the days of modern accountancy, their prominence has increased as governance and financial expertise have become a key demand of stakeholders. The launch of the big four accountancy firms – Deloitte Touche, Ernst & Young, KPMG and PricewaterhouseCoopers – boosted the status of CFOs in the late 1980s, as did the establishment of regulatory bodies like the International Accounting Standards Board and Financial Services Authority. Today, any board without a Director of Finance would lack a crucial dimension to its decision-making process.

Finance tends to be part of almost every business decision and therefore accountants are more integrated within the organisation. Being able to look ahead strategically is an essential part of an accountant’s toolkit, especially in today’s climate. An absence of skill could lead to bad business decisions, such as ‘cutting the muscle and not the fat’, or failing to invest in the future when times seem very lean. Therefore, training in managerial skills and business awareness are more important then ever before. Those already at the top of the ladder must continuously reinvest in their own development through lifelong learning, and when gaps appear in their knowledge base, they must seek training and support.

Research undertaken by AAT, the leading professional body for accounting staff, showed that accountants already working in senior positions strive to improve their skills in order to deal with strategic issues as best they can. Managers and directors require different skills, knowledge and information, to those working at a non-manager level. Eager to respond to this need, AAT launched an online resource called FMAAT Plus, specifically tailored towards plugging this gap. The membership body’s fellow members can now benefit from podcasts, webinars and events designed to help them increase their skills and overcome workplace challenges.

Delving a little deeper, senior finance staff must possess a broad vision and be able to see things from a strategic viewpoint, rather than a narrow financial and historic perspective. Communication is vital or their message will never be understood and passion, commitment and honesty are a must. Core skills include a high level of intellect, an astute mind and good powers of interrogation. The ability to listen and discuss, as well as direct, is significant to the role – as is leadership. Last but by no means least, they must be able to empathise with the impact their decisions will have on other human beings and stakeholders.

As talented accountants continue to climb the career ladder and steer the reins of business operations, they must constantly be aware of the skills required of them. Striving to improve their own knowledge and expertise will ensure that finance professionals remain at the heart of every business.

For more information on FMAAT Plus visit www.aat.org.uk/fmaatplus


Tom Kelman has been Director of Finance and Corporate Resources at AAT since July 2005.

He is responsible for ensuring the AAT has robust financial controls, strategic reporting systems and assisting his executive management colleagues and the AAT's governing Council in ensuring resources are deployed appropriately to meet the AAT’s strategic business plan objectives.

Tom has worked in finance for over twenty eight years covering both accountancy practice and industry and commerce. He qualified as a CA with ICAS in 1986 and became an MAAT before joining the AAT. Tom is also a member of the Association of Corporate Treasurers and a professional Pension Scheme Trustee.

Thames Valley opportunities knock

For many years, the bright lights and vibrant atmosphere of London have drawn people from all over globe to seek gainful employment within its hallowed institutions and leading commercial enterprises. However, I wish to challenge the assumption that London is the premier destination in the UK for those seeking work. Instead, I point to an area rich in opportunity for the talented individual, and the land I speak of is the Thames Valley.

One of the most common misconceptions is that taking a finance or accountancy role in the Thames Valley will mean a long commute. However, with most destinations reachable from Paddington, Waterloo and Marylebone in under 40 minutes, the average journey time is often similar to that of a standard London commute – and a lot more enjoyable, I would add. Imagine a train on which you get a seat and can read your morning paper in relative comfort, enjoy a similar commute time and in much more relaxing and comfortable surroundings: now you’re interested! Furthermore, travelling by car once again becomes a real prospect for those commuting, since many offices in the Thames Valley have free parking for all staff. Liberation from trains and their exorbitant fees; now I know I have you very interested.

Which firms operate from the Thames Valley? Well, there is Vodafone Country (also know as Newbury), along with such powerhouses as Dell, Reckitt Benckiser and O2. In addition to these instantly recognisable organisations, the Thames Valley also has a number of less well-known organisations. The combination of blue chip and SME firms means that there is an opportunity for everyone – no matter what style or type of organisation you prefer.

Without a doubt, the greatest advantage of working in the Thames Valley is the opportunity to achieve a much better work-life balance. Often offering shorter commutes, many people (especially those with families) find the chance to spend more time with loved ones a great incentive. This, combined with a cheaper and a more relaxed environment away from work, is a key factor in making the Thames Valley – in my opinion – an excellent place to work.

With its easy access, excellent company portfolio and a real balance between work and home life, the Thames Valley offers some incredible opportunities that you would be unwise to dismiss without real consideration.



Liam Griffin currently recruits finance and accountancy professionals for WH Marks Sattin across the Thames Valley region. He currently works within a broad range of clients from industries such as IT, Telecoms, FMCG, Oil & Gas and Retail.

Applying for a job on GAAPweb? It just got easier…

I’m not going to lie, most days it feel pretty good to be a part of a well-respected brand like GAAPweb. We have been operating for twelve years, and in that time we’ve gone from strength to strength: steadily expanding on our loyal candidate base; consistently generating visits from an experienced, qualified audience (of whom over sixty per-cent hold a professional qualification); and recently settling into our new home in Canary Wharf.

This kind of success can occasionally lead to complacency, so it’s a good thing that we’re not sitting back on our laurels.

Last month we released market-leading integration technology that facilitates a whole new kind of application process.

If you’re an accounting or finance professional looking to apply for a job you found on GAAPweb, you will now be given the opportunity to apply using your LinkedIn profile.

For those of you who might not be au fait with social networking, LinkedIn is the world’s largest business networking site, with 65 million members and a new person joining every second. You can create a ‘profile’: a kind of professional online CV that allows you to list your qualifications and experience, link to your professional website and blog, display recommendations from colleagues, and show how well-connected you are within your industry.

So, the next time you apply for a job on GAAPweb, you will be prompted to use our new ‘dynamic job application’ feature. You will simply need to enter your LinkedIn login details and GAAPweb will securely access your profile. This information will automatically be compiled into a CV and attached to your application.

This saves you time from uploading one or multiple Word document attachments of your CV, and also means that you don’t have to mess around with formatting.

It most certainly feels good to be leading the pack; no other jobsite offers this kind of functionality. But don’t worry, we’re not becoming complacent – the team are always looking at new ways to enhance your experience. If you’ve already had a go at using our LinkedIn feature, let us know what you think by leaving your comments below.