Home / Latest News And Updates / Understanding Your Accountancy CPD Obligations
04 Oct 2024
Any accountant, bookkeeper or tax advisor will know the importance of constantly evolving and upskilling to keep pace with widespread industry changes.
With so much change in the world of accountancy, staying ahead of the curve is crucial. Whether you're an accountant in practice or working within industry, continuous professional development (CPD) is essential not only to maintain professional competence but also to uphold the standards of the profession.
Accountants like you, especially if you are affiliated with professional bodies like ACCA or ICAEW, have a legal and ethical duty to engage in CPD activities to keep your skills relevant and meet professional development needs. This blog explores the requirements, obligations, and practical aspects of accountancy CPD, helping you navigate your CPD obligations effectively.
Of course, if you're looking for a best-in-class CPD training provider to help you meet your accountancy CPD obligations, 20:20 Innovation can help. We have numerous membership options and you can book a no-obligation demo.
Continuing professional development (CPD) refers to the learning and development activities that ensure accountants keep your knowledge and skills up to date. CPD requirements are set by professional bodies like ICAEW, ACCA, and others, to ensure accountants remain competent and capable of fulfilling their professional roles.
In most instances, you will be required to produce a CPD record which outlines your annual CPD activity.
For ICAEW and ACCA members, CPD is not an optional extra but a compulsory element of maintaining your professional membership. The ICAEW introduced new requirements in November 2023 so that a chartered accountant must first identify which 'CPD category' they fall into and then, depending on the category, complete a minimum number of hours of CPD annually. ACCA have 4 different CPD routes to follow depending on your employment situation. Failure to meet these CPD obligations can result in disciplinary action, including the potential loss of membership.
This varies depending on which professional body you belong to and what type of work you are involved in. So, you need to be sure that you know how much CPD is required to maintain your professional status. For example, ICAEW members are required to meet the CPD obligations set out in the Continuing Professional Development (CPD) Regulations 2023. The minimum number of hours will vary according to the category you fall into, but you are required to undertake a mixture of verifiable and non-verifiable CPD activities. ACCA members following the unit routes also need to complete a mixture of verifiable and non-verifiable CPD activities to complete the required amount.
Verifiable CPD is where you can provide evidence of learning, such as certificates from attending webinars or completing courses. Non-verifiable CPD includes informal learning, such as general reading on accounting standards or ethical and behavioural issues. While both types of learning are valuable, most professional bodies require a specific number of verifiable CPD hours to be completed annually.
Each professional body has specific CPD schemes, but the core CPD requirements generally include:
Verifiable CPD activities can include courses, webinars, and seminars. These activities should have a clear learning outcome and provide evidence, such as a certificate or a signed declaration from the trainer. If you are an ACCA member working for an ACCA Approved Employer and following their employee development programme, you will likely be able to use this to demonstrate you have completed your CPD.
Non-verifiable CPD activities are often self-directed. These can include reading technical articles, studying changes in accounting standards, or keeping up with economic crime trends. Although these activities don't generate evidence, they contribute to an accountant’s overall professional competence.
CPD activities can be categorised into verifiable, or formal, and non-verifiable, or informal. Each type of activity can serve a unique purpose in your professional development journey. So, understanding these categories can help you plan a balanced CPD year.
Accountants must ensure they are meeting their CPD obligations annually. For instance, if you are an ACCA member the CPD year runs alongside the calendar year. If you are an ICAEW member, the year runs from each 1st November to 31st October.
To show that you have met the requirements, it is often necessary to maintain up-to-date CPD records. These might need to include details of both verifiable and non-verifiable CPD activities undertaken throughout the year. As well as providing evidence of completion where necessary you should ensure that the activities align with your professional development needs.
At the end of each CPD year, you will typically be required to make a CPD declaration, confirming that you have met the minimum number of CPD hours and engaged in relevant CPD activities. This declaration is usually part of the annual membership renewal process.
Your CPD activities should reflect your current role and future career progression plans. For example, auditors might focus on training in audit services and new projects, while accountants in industry may focus on technical training related to specific sectors or economic crime. If you identify your professional development needs early in the CPD year then this will help you to plan the activities that will best help you to meet those needs. This will make CPD not just about ticking a box, but you will become a more skilled and effective accountant.
Many accounting firms provide structured CPD training programmes for their employees. This helps accountants meet their CPD obligations and ensures they stay up to date with new regulations, accounting standards, and ethical guidelines.
There is a wealth of CPD resources designed to support your professional development. Here are some key resources to consider:
As you can see, there are numerous CPD training opportunities available, ranging from formal courses to webinars and technical updates. As we've mentioned, to get the best out of them though, it’s essential to select activities that not only meet your CPD requirements but also align with your personal learning needs and professional development goals.
Verifiable CPD hours play a significant role in demonstrating your competence to both your employer and clients. Achieving a balanced CPD scheme that includes both technical and behavioural training is key to ensuring career progression within the profession.
CPD activities should include training on ethical and behavioural issues. This is an important part of making sure that you meet the high ethical standards expected by the ICAEW and ACCA.
Professional bodies like ICAEW and ACCA have strict CPD obligations. Members must undertake a minimum number of CPD hours, attend relevant training, and ensure that they remain compliant with ongoing CPD requirements. Failing to meet these obligations can affect your professional standing.
Auditors and accountants in practice have specific CPD requirements focused on technical skills, accounting standards, and services like audit and tax. It’s crucial to engage in CPD activities that directly relate to your professional roles.
Learning and development are at the heart of continuous professional development CPD in the accounting profession. Regular CPD ensures that accountants stay ahead of changes in accounting standards, economic crime, and ethical guidelines.
CPD activities must address the latest developments in accounting standards. Accountants are expected to remain knowledgeable about updates to ensure they provide accurate and compliant services to their clients.
Meeting your CPD obligations can significantly enhance your career progression. By staying up to date with developments in the accounting profession and continuously improving your skills, you will remain competitive in the job market.
Managing your CPD year can be challenging. A practical approach is to schedule your CPD activities in advance, setting aside time for verifiable CPD hours and ensuring you undertake a broad range of activities covering technical training, ethics, and professional development.
A reliable system for tracking your CPD hours is essential. Ensure you record each activity as it happens, along with any certificates or other verifiable evidence. This will simplify the process of making your annual declaration.
20:20 Innovation have a superb dashboard area that allows you to log CPD from any source. So you can get expert-curated CPD training from the 20:20 Innovation technical team as well as logging your external CPD all in one place.
It is important to be aware of the review and compliance processes involved in making sure that CPD has been completed. Here are some key points to consider:
Staying current with CPD regulations and requirements is essential for all qualified accountants. Here are some tips to help you stay informed:
By following these tips and utilising the available resources, you can stay on top of your CPD requirements and continue to grow professionally.
CPD is a critical part of maintaining your professional competence and meeting the obligations set by your professional body. By engaging in a balanced mix of verifiable and non-verifiable CPD activities, keeping accurate CPD records, and focusing on your professional development needs, you can ensure you meet your CPD requirements and continue to progress in your accounting career.
Whether you’re an auditor, accountant in practice, or working in industry, CPD is a lifelong commitment that safeguards your professional reputation and guarantees the high standards of the accounting profession.
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