Friday, 14th February, 2025
The transition from working in industry or corporate accounting to running or working in practice is a significant shift. While accountants in industry are skilled in financial reporting, budgeting, and management accounting, practice accounting demands an entirely different skill set, including client management, compliance work, and advisory services. To make this transition smoother and more successful, practical training is essential.
Understanding the Differences Between Industry and Practice
In. an industry role, accountants typically focus on internal financial management, working for a single company and managing its accounts, reporting, and financial planning. In contrast, accountants in practice handle multiple clients, deal with tax compliance, and provide business advisory services. Practical training helps bridge the gap by offering hands-on experience with real clients, tax submissions, and regulatory compliance.
Mastering Compliance and Regulatory Requirements
In industry, accountants follow internal processes and company-specific reporting guidelines. However, in practice, accountants must stay updated with HMRC regulations, tax laws, Companies House requirements, and compliance obligations. Practical training provides exposure to these areas, ensuring a smoother transition and reducing the risk of costly mistakes.
Gaining Hands-On Experience with Accounting Software
Most corporate accountants are familiar with ERP systems like SAP or Oracle, but in practice, firms use cloud-based accounting software such as Xero, Quickbooks, Sage, and FreeAgent. Practical training allows accountants to gain real-world experience using these platforms, ensuring they can confidently manage bookkeeping, tax filings, and client accounts from day one.
Developing Client Management Skills
Unlike industry roles, where accountants work with internal stakeholders, practice accountants interact directly with clients. This requires strong communication, relationship-building, and advisory skills. Practical training provides exposure to real client interactions, helping accountants develop the confidence and expertise needed to deliver excellent services.
Learning Taxation and Advisory Services
One of the biggest challenges accountants face when moving into practice is understanding taxation and advisory work. Many industry accountants have little experience with VAT returns, self-assessments, corporate tax filings, and tax planning. Practical training provides hands-on experience in these areas, allowing accountants to develop the skills necessary to provide valuable tax advice.
Adapting to a Fast-Paced, Multi-Client Environment
Accounting in practice is often more dynamic and varied than in industry. Instead of focusing on one company's accounts, accountants in practice must manage multiple clients, each with unique financial situations and challenges. Practical training helps accountants develop time management, problem-solving, and adaptability skills, ensuring they can handle the demands of practice accounting.
Increasing Confidence to Start or Grow a Practice
For accountants looking to start their own firm or buy into a franchise, practical training is invaluable. It provides hands-on experience, exposure to different business models, and a support network of experienced professionals. This ensures accountants are fully prepared to run a successful practice, attract clients, and grow their business.
Final Thoughts
Transitioning from industry to practice can be challenging but highly rewarding. By investing in practical training, accountants can build the skills, knowledge, and confidence needed to succeed in a practice environment. Whether you're looking to start your own firm or join an existing one, hands-on experience is the key to making a smooth and successful transition.
Are you an accountant looking to make the move into practice? Get in touch with us today to learn how our practical training programs can help you hit the ground running!
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