What's it like as a trainee chartered

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
I'm up to second interview and really getting my hopes up I may have got a position as a trainee chartered (shouldn't really be getting my hopes up I know).

I was just wondering, for those people that have been through the same process, what I can expect?

What sort of work did you do in the first six months, the first year, the first two years etc? Did you start with accounts preparation, then moving onto audit? What about after that?

What is really challenging, especially studying for the qualfication as well?

What was the hardest thing to get used to?

Thanks, sorry if this is one of those 'it's been asked a million times' things.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Hi Lincs,

    Long time no hear! Glad things are looking up for you.

    As a trainee chartered you can expect to have exposure to all kinds of things. I did my training in a smaller practice so can only give you advice from that, but over the years have heard from fellow professionals that did theirs in one of the "Big" firms.

    You could expect to get involved in accounts preparation for sole traders/partnerships/limited companies from both complete and incomplete records. You will get some good jobs and some not so good jobs! You may do things like VAT returns and other tax work e.g. corporate tax, P11Ds, self-assessment and payroll.

    Audit in smaller firms tends not to be as common these days due to the thresholds. I have a couple of audit assignments and have taken trainees with me. Unfortunately, you will get the "boring" parts of it e.g. lots of substantive sampling, attendance at stocktakes (hopefully you won't have any 31 December year-ends) and fixed asset work.

    In the larger firms, I believe you tend to work in various different departments e.g. audit and assurance, taxation, transaction services etc. Therefore in a larger firm, you tend not to get involved in the "whole picture" as they departmentalise a lot of the work.

    Challenging is one word I would use for a training contract but "hard work" are definitely two others that would feature. The best advice I could give you would be to get the right balance - this is hard at first and there are no rules to follow as everyone is different.

    Good luck.

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    I would echo a lot of what Steve has said.

    In terms of the work you will be doing this largely depends on the firm you are going to. From smaller firms right up to top twenty firms you will probably experience a wide range of accounting functions. From about top twenty upwards, tax and employer services work will almost certainly be departmentalised and if you are training with the big four then you are very likely to be spending every day as part of an audit team.

    Each option has its merits but your main concern at this stage will be passing the exams. Do not settle for anything less than full study support and for ICAEW that means full-time training courses of about 12 weeks per annum including exam week.

    From my own experience, AAT set me in very good stead and I found intermediate stage (TC1) as it was back then to be only a small step up from Technician AAT. Whereas people who had done accountancy degrees, and had no practical experience, really found it a struggle.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Thanks alot guys. I've been to the second interview and I think I did ok, but not entirely sure. I think you would class it as a medium sized practice.

    I'm going to have to take a massive pay cut to go for this but i'm sure it'll be worth it in the long term.

    If I get it i'll be back on here loads no doubt.

    My main concern is, because i'm late getting into this field I won't have the luxury of years at the lower end of the scale. But I guess it joins means i'll have to work harder and remember everything I can in the early stages.

    All these years of working in accountancy-related fields, doing the AAT and the degree, makes me feel like i've been watching accountancy while sat on the bus (if you get what I mean) so it will be nice to get stuck into the heart of it once and for all.

    I'm jumping the gun asking this, and this definitely has been asked loads of times, but if anyone wants to offer their opinion yet again on whether ICAEW or ACCA is the better option feel free! I'm leaning towards ACCA at the mo, but thats primarily because at this point it seems like I would get more exemptions.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Unless things have changed, I think you actually get more exemptions for ICAEW than ACCA, providing you have sat the right papers at AAT. I seem to remember going back and sitting one extra AAT paper in order to avoid about four non-core modules of ICAEW.

    That aside, to me the main difference in terms of getting qualified is the fact that ICAEW exams are more time-constrained. There is also a time restriction for completing all the exams and if you do not do it within the timescale then you are barred from completing. ACCA exams have no such time barrier and you can spend 20 years passing all the exams if you wish.

    From a technical content perspective ICAEW exams are geared more to those working in practice/audit and ACCA has a lot more content in their management/industry modules.

    As far as job prospects go when you are qualified, I think ACCA has a greater appeal across more sectors. i.e. it is thought to be a little more relevant in industry.

    But there is of course the 'snob' factor that many people still believe chartered accountants to be better than certifieds.

    I would always choose ICAEW given the choice over the two but you have to look at your own circumstances and what exam structure would suit you best.

    I also believe employers with chartered trainees are obliged to provide a minimum amount of study leave which is very generous whereas ACCA trainee employers do not have the same obligations. Remember to check what is on offer - particularly if you are taking a hefty pay cut.

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Dean is correct with the "snobbery" aspect. There's a lot of that unfortunately - it's just a case of ignoring it.

    I don't know anything about ICAEW papers at all apart from, as Dean says, there are strict time constraints. I think ACCA give you 10 years to sit the lot (they certainly did under the old syllabus) and then you become time-barred. ACCA does tend to focus more on practice and industry and if you look at some of my older posts you will see the reason I chose the ACCA was because primarily my role is client-facing - even though I work in practice I still need industry-based knowledge to advise clients. Only the other day I undertook an exercise for a client who buys a lot of foreign currency and pays out a lot of foreign currency and they wanted advice on hedging. I never thought I'd use this again post ACCA studies, but I did and it's also not the first time the old (and a much hated subject of my student days) costing had to be revisited!

    You will find in practice, moreso these days with demand for training contracts so high, that pay is an issue with all trainees. The problem is that the exams and courses cost so much nowadays because there is a much wider market than, say, 10 years ago, that practices have to adopt the attitude that they're paying for you to become a qualified accountant which is very expensive, so you have to meet them half way with your pay packet. I think you will find that in most practices.

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    With the introduction of the new ICAEW syllabus you might find that the time restriction have been lifted to match that of the ACCA, which as said is 10years. The old syllabus used to be just 4 years I think - working out to be pretty well first time passes in all papers need to qualify!

    Have you thought about going down a Tax route?

    If it was the end goal of earning potential you want then tax is the way to go. I receive both the AAT & ATT magazines and the jobs on offer in the ATT one its at least 20-30k different at the top end of the scale, i.e. someone with ACA or CTA.

    I know if I save a client say 2k in tax they'll pay my £900 bill , if I produce their accounts... they don't think of it as "oh, here's my accounts - why are my profit margins down?!", just dispute the bill. You get the gist of what I mean.

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Thanks guys, I got the job and it looks like i'll be doing ACCA. I'll be starting right at the bottom and the paycut i'll be taking is obscene, but hopefully it will be worth it in the long run.

    Get your tin hats on i'll be coming on alot more again.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Congratulations! The paycut can be a bit of a sting in the tail but if you took the job without a training package and paid for ACCA yourself, you wouldn't be any better off.

    It's only for a couple of years anyway.

    Good luck.

    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered
    peugeot wrote:
    Congratulations! The paycut can be a bit of a sting in the tail but if you took the job without a training package and paid for ACCA yourself, you wouldn't be any better off.

    It's only for a couple of years anyway.

    Good luck.

    Steve

    Thanks Steve, but the paycut is even more obscene than that - seriously.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Congratulations! :)

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    I'm in the same situation Lincs - I've taken a seriously obsene pay cut to start a job as a trainee Accountant - I'm 29 with a 4.5yr old and a 10 month old, so need to pay more child care too!

    But at the end of the day this is my career and they said that in 4 years my salary will have got back to the level i'm on now!

    Going to be a HUGE struggle for 4 years - thats all I can say.

    Congratulations to you on your new job.

    ALison :)
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:What's it like as a trainee chartered

    Hi Alison,

    Unfortunately practice is renowned for having a low pay packet whilst training. It was the same when I was a trainee.

    Try not to focus too much on the pay element think of it more as an investment in your future because in a couple of years time you will be posting on here saying how much it has paid off - and it does. You will be in a profession which will offer a vast array of opportunities.

    Well done and good luck.

    Steve

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