Tax courses advice required ?

So guys this is more of a question than a blog post tonight . 

Because I'm an absolute saddo I really love tax! 

Now I know that makes me sound mad but I love tax calcs and read as much as I can about it to try and understand all the adjustments etc .

As I did AAT I have passed the indirect tax exam as part of my level 3 and personal tax exam as part of my level 4 but I never got the chance to do business tax as our college set our optional papers.

I've seen several courses advertised, ATT and AAT tax (this would be the courses I've sat already but including business tax).

I don't need to do tax for my job , I work in management accounts in a service industry company so the knowledge I have is enough , I just really love learning .... I know it makes me sound mad! :-D

So what I'm wandering if anyone can contact me who has experience of either of these courses and advise me which would be the best for me to do.

Any advice in given I will consolidate into a table and post it on my blog for other students 

Thanks in advance

Nicola xx

AAT Q &A

I've had quite a few emails from students , some just for a chat and others to ask for my help or advice and I just wanted to thank everyone.

A special thanks goes to Krishna for pointing out an error In my accruals and prepayments lesson 3. I had reversed the accrual I had put the same journal instead of the opposite journal. Which I have now amended . 

So thank you Krishna , and thanks to everyone else who has messaged me, it has been lovely speaking to you all and best of luck in your up coming exams !

Nic x

Cima &AAT book swap shop

I've been thinking what we can do to help each other out . Books and resources are so expensive.

I had a bit of a eureka moment last night and thought of a fab idea . 

A Cima and AAT book swap shop .

No money changing hands , literally once you have passed and exam /module , advertise your old books on my facebook Page (So you wanna be an accountant ? )  and the facebook group Cima book Swap Shop or send me an email via my website www.wannabeanaccountant.co.uk

And I'll advertise for you the book you have finished with for the book you require.

This will save us all a lot of money , as well as knowing your unused books are going to someone who needs them!

I for one have a stack of books in my loft which are out of date and for the old syllabus.

Please contact me if you would like to swap 

Thanks again people

Nicola xx

Exciting news !

Today I have had some exciting news , not only has one of the colleges I've approached regarding part time tutoring contacted me.

I am also about to embark on a journey of mentoring AAT students !

Today I spoke to a lady on LinkedIn who works as an AAT tutor. I was asking her general advice about what I'd need to do to consider teaching AAT in the future .

She advised me that she is currently looking for mentors for the colleges level 2 & 3 students and wandered if I would be interested . 

I didn't even think about it , I jumped at the chance , you see this is exactly what I want . I want the chance to help students who may be struggling , I want to do this as I know how alone you can feel when you are a student . 

When I studied my AAT I had my tutor , and about 40 other students to contend with , my college was brilliant , I attended Knowsley community college Kirkby campus and met some amazing people. We studied the levels 2-4 for 3 years of an evening.

I'm not naturally academic , so concepts that to some can seem simple , I'd sit there for half an hour just trying to decipher what it meant ! You see I'm more a doer than a thinker .

Back when I was learning my level 2 I had not long been hired in my first full financial position and used sage for everything ! I thought I new it all , but far from it ! I could Post invoices , pay suppliers etc but I didn't know my debits from my credits hence the baffled look on my confused face when we had to draw up the T accounts ! 

I wasn't as confident back then , I was more the suffer in silence type , well at least in my first year anyway!

So I struggled through my first year but as I gained confidence and applied for positions with more responsibility I realised that if I worked harder by studying smarter I not only could rewrite the concepts into easier to understand language , I could also understand why I was doing each adjustment and what it meant ! 

This is why I want to mentor , I've been in the students position , I understand how hard it is to struggle the work /life/ study/ family balance . 

I also like to keep busy , it's very important to me to push not only myself but others into fulfilling there potential . 

So tonight I'm really excited , not only am I working in a role that I love as Assistant Management Accountant, I will also be mentoring students of an evening along side my studying for my cima managerial exams! 

My goals for 2015 are that I can mentor students to help them pass their exams , progress to the position of management accountant and pass Managerial Level

What are your goals ? 

Good luck with all your career aspirations in 2015 and remember:

Tommorow is to late ,Yesterday is over and Todat is exactly the right time to start !!! 

Nicola Donnelly Cima Dip MA

Last class of F2 finished :)

I've just finished my last class before my F2 exam and I've got to say I'm nervous , although my tutor Jim was fab.

Cima has a new syllabus as of January 2015 so it's unknown territory for all of us students sitting exams in these first few months .

So tonight I'll just thank everyone for reading , the website is now also up and running and all the word docs are uploaded there for people to print off 

1250 views in 3 days ....:). Wow

The web address is :

www.wannabeanaccountant.co.uk

Also a little bit of news , I've just applied for my PTTLS course to hopefully get a teaching and assessing qualification too .

I cant believe that when I began this journey with my little sage line 50 course I would of came so far !

This is just testament to show that if you want something , sit down make a plan of how you are don't to get out there and get it !!

Good luck everyone , 

I'll catch up with you all next week 

Nicola 

lesson 3 Depreciation

Lesson 3 Depreciation

 

Depreciation is really easy when you are comfortable with it, but when it’s new to you like a lot of these adjustments are at first, it can seem over whelming.

Try not to think of it as an accounting transaction and think of it as how much your asset is worth. We know when we buy a car that every year it is worth much less than it was when we purchased it. Well this is what the depreciation is.

It’s an accounting term for reducing the balance of an asset.

The most common ways of calculating depreciation are reducing balance and straight line.

 

Straight Line

With straight line depreciation the invoice is reduced by a set amount every year.

For example £1000 invoice at 20% Depreciation over 5 years with a ZERO residual value.

(e.g)

01/01/15 Car   £1000   20% Dep £200   /12 = £16.67 per Month.

Value of car 01/01/15    £1000

Jan-Dec 15                  (£200)

Jan-Dec 16                    (£200)

Jan –Dec 17                   (£200)

Year ended balance       £400

If a question asked what the balance of the asset was at year ending Dec 17 it would be £400 because there has been 3 years depreciation at £200 per year =£600.

 

Reducing  balance

Using the same example as above I will show you the depreciation using reducing balance.

A reducing balance depreciation is similar except every year the number changes as the depreciation is deducted before the next years depreciation is calculated.

(e.g)

01/01/15 Car   £1000   20% Dep reducing balance method.

Value of car 01/01/15    £1000                   (1000-200=800)

Jan-Dec 15                  (£200) 

Value of car 01/01/16   £800                      (800-160=640)

Jan-Dec 16                    (£160)

Value of car 01/01/17   £640                      (640-128=512)

Jan –Dec 17                   (£128)

Year ended balance       £512

 

If a question asked what the balance of the asset was at year ending Dec 17 it would be £512 because there has been 3 years depreciation at reducing the balance each year (200-160-128)  = £512

 

I hope this helps with any depreciation issues, Please let me know if there are any other in a nutshell lessons required

Nicola

Lesson 2 accruals and prepayments

So you’re learning accruals and prepayments, and the tables in the book mean absolutely nothing to you!

I’ve been there, and I know when we were taught AAT Level 3 most of the students in my class just couldn’t get there head around the reason for an accrual and why they had to do it to pass AP2!

So this is my in a nut shell blog on how to think of them and how to work them out.

Accruals

 An accrual is an expense transaction for a service we have not received an invoice for.

For example Electricity, Gas, Insurance, telephone bills are mostly invoiced quarterly. Therefore we may be using a service and be billed for it at a future date. To save us being hit for a lump sum cost, and as accounts are usually updated on an accruals basis we will work out the expected costs per month and recognise that by posting an accrual

The transaction is an expense, and as in my previous blog all expenses are debits. Therefore we would debit the expenses code in the P and L, and credit the accruals code in the balance sheet. That completes our double entry.

In this example I will use an electric bill for 3 months £300.00, £100 Per Month.

DR                                 Expenses £100

CR                                 Accruals   £100

In the example above I have accrued for 1 month, but if next month we have still not received an invoice I would release this accrual and accrue for two months, and so on, until I receive an invoice. Once the invoice is received you need to release your accrual by posting the opposite journal

DR.                                  Accruals £10
CR.                                 Expenses £100

Prepayments

Prepayments however are expenses we have already received an invoice for, but the invoice has a future period on it. Using the same example above if today’s date was 31.03.15 and I had received an electric bill dated 01.03.15 to the 30.06.15 I would divide the bill by 3 months (this can also be split by days depending on your company policy) and post 1 months’ worth to the expense code and 2 months’ worth to prepayments

DR Expenses          £100

DR Prepayments     £200

CR Trade Creditors £300

It really is as simple as that. If you can remember that all expenses are debits then to accrue is to DEBIT and to Prepay is to push that debit to a future period so CREDIT.

Hope this helps with any accrual and prepayments issues

If there are any other examples you need let me know

Nicola Cima Dip MA
Facebook: So you wanna be an accountant?
https://twitter.com/AccountantLive
www,wannabeanaccountant.co.uk
Email: donnellynicola7@gmail.com

So you wanna learn double entry ?

Lesson 1 Double Entry Bookkeeping:

When I first began to study AAT I found the trickiest thing for most of the students was remembering the Double entry. It doesn't matter which position you have in finance, if you don't know your debits and credits you will struggle! 

Most accountancy packages post Invoices for you so this can be done without basic knowledge, but as soon as you begin to post journals or reconcile balance sheets you need to understand the basics.

The following acronyms really helped me whilst studying for my first few exams:

PALED & CLIPS

Debit	Credit
P-Purchases	C-Capital
A-Assets	L-Liability’s
L-Losses	I-Income
E-Expenses	P-Profit
D-Drawings	S-Sales

If you imagine your trial balance as the table above Debits to the left, credits to the right. For every debit there must be a credit, a balancing figure.

Remember that Purchases for example are a Debit, the VAT relating to the purchase is also a debit therefore the credit, and the balancing figure is the Purchase ledger Control.  A good way to remember this is:

The Whole amount goes to the control account!

Another thing that helped me to remember was the mantra:

“If in doubt T account”

Debit:                                        Purchase Ledger Control                             Credit:

Purchases £100

Debit:                                                  Purchase                                             Credit:

Purchases  £80

Debit:                                                       VAT                                               Credit:

Purchases  £20

Even whilst I have been studying CIMA I use this mantra, last year when I studied F1 and currently when studying F2. I would not be able to work out the balances for my cash flow statements without a T Account

I hope this blog helps with any Double Entry issues, If you have any questions please do not hesitate to contant myself

Thanks again for reading

Nicola Cima Dip MA
Facebook: So you wanna be an accountant?
https://twitter.com/AccountantLive
www,wannabeanaccountant.co.uk

Email: donnellynicola7@gmail.com

273 views on day 1 of my first blog !

273 views on day 1 of my first ever blog , I'd say that was pretty successful :)

However although I'm glad it's reaching a lot of people , it's missing something . 

Currently it's just  my story people are reading , and it's missing yours ! 

I know it's hard to share such personal journeys and although I've wanted to do this for a long time , I didn't want people to know about things that had happend in my past ! 

I'm not saying I was ashamed , i have just hidden that time in my life well so it's like it happened to someone else .

Anyway I feel it's time to share , to help someone else , maybe you are a young mum struggling with what to do with your life , or you too have had to leave your home because of domestic violence , whatever your story share it . If it helps just 1 person then we'd of achieved what we have set out to do 

Once again thanks for reading 

I'll update again soon 

Nic x
Facebook: So you wanna be an accountant?
https://twitter.com/AccountantLive
www,wannabeanaccountant.co.uk
Email: donnellynicola7@gmail.com

Do you wanna be an accountant?

Let me start by introducing myself, My Name is Nicola and I'm a 33 year old single mum of 2 teenagers from Liverpool. I am currently employed as an Assistant Management Accountant of a Pharmaceutical company. 

I have worked in Finance for around 10 years slowly working my way up by studying and gaining experience.

But i haven't always been in this rewarding career. 

10 years ago I had nothing! 

I was in a women s refuge after leaving my ex-partner with two children in tow, and had no qualifications.

I began applying for positions, but without qualifications the positions where offering minimum wage at £3.90 per hour.

I had 2 young children and rent and childcare to pay.

I knew I couldn't survive on that salary and wanted better for my children, 

So I started temping, Reception work, Admin work, anything which required no qualifications! 

I then began looking into college courses, anything I could fit around my kids to somehow drag myself out of the hole I felt I was in.

There was a course running in my Local Unemployed Centre for Sage Line 50, it ran 1 day a week for 6 months I began the course in the September and I loved it!

I gained an NVQ Level 2 in Sage Line 50 and decided there and then that this was what I wanted to do. 

After completing my Level 2 in Sage Line 50, I found a 2 year contract working as an Accounts Clerk of a Window Manufacturer near where i lived. I would never have gained this employment without Sage Line 50 course.

This allowed me actual hands on experience in all areas of accounts.

I then started my next course 2 evenings a week at Knowsley Community College Associate of Accounting Technicians (AAT). 

AAT is a route to becoming a Qualified Accountant without attending university and taking out a student loan. 

Don't get me wrong the course is hard! You have to do a lot of home study and sit several exams per year. When you are working full time, and studying most evenings it is hard! Especially when you are a single mother you have the added guilt that you should be spending all that time on your children.

I qualified October 2012 and graduated in January 2013 with newly gained letters after my name! (MAAT)

After AAT I decided I wanted to take on my professional exams, this would allow me to become a Fully Qualified Chartered Management Accountant!

As I am fully qualified AAT ,I was exempt from all the certificate Level CIMA exams (5 exams in total) so I began Operational Level October 2013 and in May 2014 i passed my final Operational Level exam and gained more letters after my name (CimaDipMA)

Now I work for a Pharma company, and I am still studying towards Managerial Level CIMA exams! 

I have 6 exams in total to undertake and 2 case studies before I will be a Fully Qualified Chartered Accountant. It'll take me a long time, and I’ll probably fail a few exams along the way! The exams are hard, and with the recent change in syllabus it is unknown territory.

But I’ll do it, and believe me if I can do it anyone can.

So good Luck! Thanks for reading my blog, please could you comment on why you began studying accountancy and which hurdles you have encountered along the way to get you to where you are today?

I hope this inspires young people and young mums out there who are struggling and with the recent changes in Tax credits and benefits it is near on impossible to live without a decent job.

I am currently working on my website www.wannabeanaccountant.co.uk whereby i am to discuss routes into accountancy and other Financial qualifications to Unemployed people who need advice and help with funding.

Feel free to use the contact form below if you wish to speak to me in private.

Thanks again

Nicola xx
Facebook: So you wanna be an accountant?
https://twitter.com/AccountantLive
www,wannabeanaccountant.co.uk
Email: donnellynicola7@gmail.com