Pass with flying colours

Lynn Shannon explains the concept of PARROT skills and how they relate to writing a good Unit 10 report

Writing a formal report, then discussing it in an interview, may seem an unusual method of assessment when you are used to exams or time-controlled simulations under supervised conditions. Suddenly, you are on your own and expected to write 4,000 words – in formal report style – and then talk about it.

However, report writing and oral communication are skills you need in all aspects of working life. Being an accountant is not just about working with numbers, it is also about being able to communicate – with clients, managers, employers and outside agencies.

This unit actually proves that you are working to NVQ Level 4 standard, which is degree level, pulling all the individual units of your studies together. It also proves that you can write a report suitable for the business environment in a clear, concise manner, providing an analysis of a situation and making recommendations for improvement, supported by a wellreasoned argument.

To enable you to do this, you need to build a range of skills, which I have named PARROT skills. These are:

• P - planning
• A - analysing
• R - research
• R - report writing
• O - oral communication
• T - time management

Planning
Good planning and preparation are vital to the report. Without this, you could flounder around, wasting time and energy, so you need to plan what the theme of the report will be and negotiate this with your assessor. You then need to plan how you will approach this unit – which will form the basis of the methodology of the report. Remember that spending two hours to plan your writing ccould save days of wasted time and effort.

Analyse the problem
Analysis is the process of breaking a complex topic into smaller parts to gain a better understanding of it. The technique has been applied in the study of logic since the ancient Greek times. This is a skill that builds over time – it is the ability not just to describe a weakness, but to identify the reasons behind it, and evaluate the impact that the weakness has on an organisation.

For example, the issue may be that the organisation has a cash flow problem. This can be described easily and your recommendation may be to create a stricter credit control policy to ensure debtors pay more promptly. However, when you break down the problem, you might discover that invoices are not prepared until one week after the order has been delivered, and then are not sent directly to the customer but to the sales manager for checking. The invoices could be created manually, and errors add to the delay, meaning that some customers do not receive their invoices for more than three weeks. Your analysis would highlight that the problem is not weak credit control, but the invoicing system, therefore the recommendations you make would be very different – centreing on improving the sales ledger and invoicing process. Remember that describing the problem is not enough; you need to discover the reasons why the problem occured in the first place.

Research
Again, this is a skill that develops as we grow. It is not just about accepting what we know, but discovering other people’s ideas, new ways of thinking or inventions. For example, you may decide that a client, a small office-supply company, needs to computerise its bookkeeping system. You know all about Sage, as you see this regularly, so you may want to recommend that the client buys this package – but is this the best package for that particular client? Do you know what else is available? Probably not, unless you have researched this area. In fact, there is a software package specifically created for office supplies companies, that includes an integrated accounting program. You will also need to research what else is available, costs of the products, training and other associated costs, and availability of software support before making any recommendations.

Report writing skills
A good report will not only contain facts about weaknesses or problems within the organisation and recommendations for improving these, but it will be presented in a professional and businesslike way. The AAT has a suggested layout (more information on this is available at aat.org.uk), which is based on current best practice in report writing, and uses the style most commonly found in business today.

You should write in an appropriate style of business language, avoiding slang terms and paying attention to grammar and spelling. As the report must be word processed, you should ensure you employ the spelling and grammar check on the computer.

It will benefit you to find a mentor – someone trustworthy with good English skills who is willing to read through your report and highlight any weaknesses. If you do not have a work colleague who fits the bill, please approach your local AAT branch network as there are volunteers there who may support you in your report writing.

Oral communication
You also need to be able to present your recommendations verbally, by talking about your report to your assessor in your final interview; therefore you need to feel confident that you fully understand what you have written. There is no reason to be nervous or worried about the interview. It is your opportunity to cover any range of knowledge statements that have not been fully dealt with in your written report.

Remember that this is an essential part of the assessment process and you cannot achieve the unit without it, but the assessor wants you to succeed and will ask the questions in a clear and understandable way.

Time management
This is a vital skill for your career. Just as you have to be able to prioritise your workload and manage your time effectively in the workplace, you also need to do this with your studies. Too many students pass their Technician or Diploma level exams and then do not complete their Unit 10 report, meaning they do not achieve the full AAT qualification or become eligible for membership. It is important that you manage your time to ensure you complete the report as well as your exams.

In an ideal world, if you start your final-level studies in September, you should have agreed a theme for your report and an assessment plan with your assessor no later than the first week in October; then, allowing four weeks for research and four weeks for writing, the first draft should be ready to give to your assessor by the beginning of December. This leaves time for parties, shopping and all the other things that Christmas may mean to you. The next draft (or two) should then be completed over January and February so that the final interview can be planned for March – thus allowing plenty of time for revision for the June examinations.

What else?
So, you have the skills and you have found a mentor for your report. What else do you need? First, you should make a conscious decision to avoid plagiarism – copying other people’s work does not prove your competence – or cheating. We know there are reports that go up for sale on eBay and other sites, but these are often of a very poor standard and are known to assessors. Remember that the AAT is your professional body as well as an examining body. Cheating is a breach of professional ethics and can lead to disciplinary action against you, which could jeopardise your achievement.

You need an idea of what you are going to base your report on. If you are employed in an accounting role, in either a voluntary or a paid position, then the easiest way to complete the report is to base it on your workplace. You can identify problems from your own understanding of the organisation, or in discussion with your manager, by doing a SWOT analysis or by completing a questionnaire with your colleagues.

If you are not employed, or not working in an accounting environment, you will need to base your report on the AAT case study. Your assessor will order this for you from a range available at the AAT. It depicts a fictitious workplace where there are a range of problems.

In either case, do not try and identify all the weaknesses in the organisation; simply highlight one part of the accounting system – for example, payroll. Remember, if you make the scope of the report too wide, you will either write too much or just describe problems.

Just do it!
That’s it – you have the skills, the mentor and the theme for the report – you just now need to write it, remembering the AAT style. You have to write 3,500–4,000 words, but the word count is not crucial. If you have 3,300 words that show your analytical skills, highlight a problem and produce well-reasoned recommendations, this is better than 6,000 words of description, where the problem has not been evaluated and the recommendations will not resolve it.

If the thought of writing 4,000 words scares you, then just think about writing 1,000 words a month, or 250 words a week (or 50 a day – and that allows you weekend off!) and you will complete your report within four months.

Concentrate on identifying the weakness, analyse why it occurs and its impact on the organisation. Then make recommendations for improvement, showing the costs and the benefits of this. Match them together: do not identify any weakness that you are not going to make improvement for, or make any recommendations where you have not identified a weakness. Remember, be analytical and not too descriptive in your work.

Good luck with your writing.

Lynn Shannon is the Chief Assessor and Simulation Writer for Unit 10: Managing Systems and People in the Accounting Environment of the AAT Accounting Qualification