The results of the AAT Salary Survey 2021 are in, and they're excellent news for many people.
For AAT members, the Covid-19 epidemic was a year unlike any other. According to the 2021 Salary Survey, many employees were furloughed, while others worked harder than ever to assist customers with grant guidance and payroll assistance.
Clients were lost by some members, while others obtained new clients. For example, 41% of licensed accountants have taken on more customers since March 2020, while 17% have taken on fewer. It's been a wild voyage.
Income changes of AAT members
Salary increases
Basic pay for non-licensed members has increased at every level since the 2019 survey. They vary from £21,000 for FMAAT members to £40,000 for Foundation Certificate in Accounting (Level 2) and Advanced Diploma in Accounting (Level 3) students. Wages for students are up 10%, MAAT and FMAAT are up 9%, and affiliate members are up 4%. Last year, 32% of members received a bonus (consistent with the 2019 statistics); however, the percentage of licensed accountants who earned a prize fell by 3% to 23%.
When it comes to fees, certified accountants who have to practise and work full-time saw a 4% decline in average fee revenue following consistent rises since 2013. According to the poll, more than half (53 per cent) of hired and self-employed licenced accountants have seen their fee revenue decline or stay the same in the previous year.
Only 49% of those who are exclusively self-employed reported a decrease. Much of this can be attributed to the extra work members did in response to the pandemic's impact on their clients.
With an average full-time compensation of £26,000, the not-for-profit sector pays the highest salaries among AAT members. Members of micro-companies (those with fewer than ten workers) had the greatest rise in average pay, while those working in London were the highest-paid. The northeast has some of the smallest accountants, but they also have the most satisfied employees.
Not everyone was able to benefit from a rise in their wages. Just 47% of respondents anticipated an increase in 2019, compared to 63% in 2019. Full-time workers are more likely to have more money in their pockets. Salary growth was observed at all membership levels, with the biggest increase of 33% occurring when transferring from MAAT to FMAAT.
Accountants who have the most clients earn a greater average fee revenue for individual clients. Since 2019, those with larger practices of 100 or more clients have seen the most significant increases.
Pay disparity between genders
The industry still has a lot of work to do in this area. The salary difference between men and women in full-time professional positions has increased to 8%. In 2019, there was a 5% difference. However, for students and associate members, the pattern is inverted, with women earning more than males. Men received a wage raise 54 per cent of the time, while women received a pay raise 48 per cent of the time.
Job fulfillment
Despite the pandemic's havoc, work happiness and job security have remained relatively unaltered. Work-life balance is frequently connected to joy.
Approximately 78 percent of members intend to remain in their current positions or pursue advancement. More than three-quarters of workers (76%) are very or somewhat happy with their jobs, and 85 per cent feel secure, including almost three-quarters of furloughed workers.
The percentage of non-licensed accountants who are highly happy has climbed from 21% to 24%. The highest job satisfaction was recorded by licensed self-employed accountants who work full-time, and this group feels more secure in their self-employed profession.
The average fee income for licensed members working full-time is about double that of females. Almost two-thirds of males (64%) and one-third of women (36%), respectively, have more than 100 clients.
Bonus payments
The percentage of accountants on a bonus programme has decreased from 24% to 21%.
Non-licensed accountants who receive a bonus are on par with those who received a prize in 2019, at 32 per cent (33 per cent). These gratuities typically constitute between 2 per cent and 3 percent of salary up to the age of 34, then 3 per cent to 4% for those over 35. Bonuses appear to be less common in the UK than in other markets like the US or the EU. Private-sector employees are the most likely to adopt a bonus system (25 percent), with incentives being greater for accountants working in private practice rather than public accounting. Only 12% of individuals employed in the public sector and 7% of those engaged in non-profits get compensated in this way.
Those in the private sector accounting firms did not employ fared exceptionally well, with 28 per cent participating in a bonus system. For those working in accounting businesses, the figure is only about 17%.
How much money can you make as an AAT qualification?
An AAT qualification can help you enhance your earning potential whether you're exploring a career in finance or are a seasoned financial professional.
These highly-regarded credentials may impress employers, demonstrate your financial talents, and assist you in achieving your professional objectives.
AAT publishes the results of their wage survey every year to demonstrate the worth of their qualifications. We've put together this handy infographic to show how much you may earn with an AAT qualification.
Salary Averages by Job Level
It might be difficult to break into the banking industry, yet AAT members excel even in entry-level positions. The average income for an accounts assistant or administrator with an AAT certificate is £21,000. The average income climbs to £27,000 when you advance to the position of accounts officer.
You'll earn an average of £28,000 a year as an AAT-qualified team leader, rising to £31,000 as a junior manager with an AAT certification.
Suppose you continue as middle management with an AAT certification. In that case, you can expect to earn an average of £36,000 per year, and if you advance to director level, you can expect to earn an average of £46,000.
Salary Averages based on AAT Membership Status
The average pay for students pursuing an AAT qualification is £22,000. Full members with MAAT rank who have completed the AAT Professional Diploma can earn up to £30,000.
Fellow Members of the AAT earn an average of £40,000 per year after becoming a full member for at least five years. AAT Licensed Accountants who are self-employed or have their own accountancy business can earn up to £52,000 per year.
Workplace Satisfaction and Safety
A huge 80 per cent of AAT students say they've increased their earning potential, and 85 per cent say they're happy in their jobs. Seventy-six per cent of employed members are pleased with their jobs, whereas 81 per cent of self-employed AAT Licensed Accountants are.
This happiness and security might be attributed to the information gained via AAT courses. It's no surprise that these students feel comfortable in their jobs and are pleased with work since they have good qualifications and up-to-date information on their side.
What occupations can I do with AAT?
For many people acquiring AAT qualifications, an accountant is one of the most common job routes to select. It is also one of the safest.
According to the 2019 AAT pay study, employment stability for persons with certification has risen from 74 per cent to 85 per cent since 2011.
But what other jobs can you get with AAT courses, and what level do you need to get started? Here are a couple of the jobs you'll be eligible for:
Assistant in Accounting
What exactly do they do?
Assist Accountants with a variety of day-to-day financial processes by providing administrative support. It might include everything from data collection to payment processing to invoice reconciliation and expenditure tracking. They are responsible for duties such as:
- Transaction processing and recording
- Reports and budgets to be prepared
- Serve as a liaison between clients and suppliers
- Checking the facts
- Filing
- Admin
Bookkeeper
What exactly do they do?
Maintain accurate financial records to keep track of and monitor corporate expenditures. A Bookkeeper's responsibility is to guarantee that an organization's outgoings and incomings are tracked correctly, whether they're filing tax returns, controlling profit and loss, or monitoring debt levels.
They also take on other duties, such as:
- Invoices/purchase orders
- Credit control and sales accounting
- Financial administration
- processing of data
- Accounting for payroll
- Creating financial statements is a time-consuming process
Manager of Payroll
What exactly do they do?
Ascertain that all payroll account transactions are paid on time and in full. It is accomplished by developing effective payroll systems, the maintenance of correct data, and collaboration with other members of the company. They're also in charge of supervising and coaching a payroll team.
Other advantages of AAT
AAT might be an excellent choice if you want to work for yourself. If you master the principles of accountancy with an industry-recognised certificate, you'll have all the skills you need to start your bookkeeping firm.
According to a 2019 AAT salary survey, 92 per cent of AAT Licensed Accountants who are solely self-employed are very or 'quite' satisfied.
Studying also has the following advantages:
- You'll learn transferable abilities that you may use in any industry.
- You could be able to work in another country with your globally recognised credentials.
- With more study, you could be able to become a Chartered Accountant.
- Whether it's tax, audit, or credit management, you may become an expert in your chosen industry.
How long does it take to master AAT courses?
The amount of time it takes to learn AAT is determined by the study technique you select.
In general, you'll be able to earn your certification in around a year - however, some techniques allow you to finish in as little as six months.
With part-time and full-time study choices, as well as the possibility of remote learning, you'll be able to fit AAT around you and your schedule.
Conclusion:
Obtaining AAT certification is an excellent opportunity to start a career in accounting, advance in your existing position, broaden your career alternatives, and raise your income expectations. You have five possibilities with the AAT Professional Diploma. It enables you to focus on a certain area, such as taxation, audits, or credit management.
When combined with the information you've previously acquired, these specializations will greatly improve your job chances.
FAQs
Q.1. How much does someone with an AAT certification make?
The average pay for students pursuing an AAT qualification is £22,000. Full members with MAAT rank who have completed the AAT Professional Diploma can earn up to £30,000.
Q.2. Is it worthwhile to study AAT?
AAT courses are a great place to start before going to university to pursue a finance-related degree. AAT training is a wise investment.
Q.3. Are AAT exams difficult?
The AAT Accounting Qualification Level 4 is the most difficult. The nice thing about AAT is that it is entirely centered on practical learning, which means that even if you have no previous experience, you may still excel if you put in the time and effort.
Q.4. How long does AAT Level 1 take to complete?
An AAT accountancy qualification typically takes 6 to 8 months to achieve for most students. Most students who are studying bookkeeping require 3 to 5 months to earn an AAT bookkeeping certificate.