Preparing for accountancy and finance exams like the ACA (Associate Chartered Accountant), ACCA (Association of Chartered Certified Accountants), or CTA (Chartered Tax Adviser) is a significant challenge that requires dedication, strategy, and a deep understanding of the subject matter.
These qualifications are highly respected in public practice, but the exams are tough, with pass rates often hovering between 30% and 50%. To help you succeed, here are our top five exam tips tailored specifically for these demanding professional exams.
Create a Comprehensive Study Plan
Success in accountancy exams begins with a well-structured study plan. According to ACCA, students who plan their studies and stick to a schedule are 30% more likely to pass exams on the first attempt. Given the extensive syllabus of ACA, ACCA, and CTA exams, it's crucial to manage your study time effectively. The ACA exams, for instance, require a minimum of 450 hours of study for the Professional Level exams, while the CTA exams suggest a similar amount of preparation.
Break it Down: Divide the syllabus into manageable chunks and assign specific topics to study sessions. This helps ensure that every area is covered without overwhelming yourself.
Set Milestones: Break your study plan into weekly or bi-weekly goals. Achieving these milestones will keep you motivated and ensure steady progress.
Use Study Apps: Tools like Trello or Notion can help you organise your study plan and track your progress.
Focus on Core Concepts and Application
Accountancy exams are not just about memorising facts; they test your ability to apply concepts to real-world scenarios. For example, the CTA exams focus on applying tax law practically, while ACCA exams include scenario-based questions that assess problem-solving in a business context.
Prioritise Key Areas: Identify the core concepts that frequently appear in exams and focus your study on these areas. For example, understanding IFRS standards is critical for ACA and ACCA exams.
Practice Past Papers: Regularly practicing past exam papers helps you understand how to apply your knowledge to exam-style questions. Aim to complete at least five full past papers under exam conditions before your test date. The ICAEW (Institute of Chartered Accountants in England and Wales) reports that students who consistently practice past papers are 25% more likely to pass the ACA exams.
Use Case Studies: Engage with case studies relevant to your exam. For CTA candidates, this might involve analysing complex tax scenarios, while ACA students might focus on audit cases.
Understand the Exam Structure and Marking Scheme
Each professional exam has its own structure and marking scheme, which can significantly impact how you approach your studies and the exam itself. The ACA, for example, includes objective test questions (OTQs), case study exams and long-form written answers, each with different time allocations and mark distributions.
Study the Examiner’s Reports: These reports provide insights into common mistakes and areas where students lose marks. For example, ACCA examiners often highlight the importance of time management during the exam.
Understand the Weighting: Knowing which sections carry the most marks can help you prioritise your time during the exam. In CTA exams, for example, certain questions on the advisory paper may carry more weight and thus require more time and focus.
Practice Time Management: In ACCA exams, over 40% of candidates fail due to poor time management rather than lack of knowledge. During your study sessions, practice completing questions within the allotted time. This will help you pace yourself during the actual exam.
Leverage Professional Resources and Support
Professional bodies like ICAEW, ACCA, and CIOT (Chartered Institute of Taxation) provide a wealth of resources designed to help candidates succeed, including study guides, webinars, technical articles and peer support networks. Students who use a combination of study resources, are statistically more likely to pass on their first attempt.
Use Official Study Materials: Always start with the official study texts provided by your professional body. These materials are tailored to the exam syllabus and often contain insights directly from examiners.
Attend Revision Courses: Many professional bodies and training providers offer revision courses closer to the exam dates. These courses often focus on exam techniques and common topics.
Join Study Groups: Engaging with peers through study groups or online forums can provide additional support and motivation. Discussing difficult topics with others can also enhance your understanding.
Maintain a Balanced Lifestyle
Maintaining a balanced lifestyle is crucial for peak performance. Physical and mental well-being enhance your ability to absorb information, think critically and perform under pressure. A recent study found that students who exercised regularly and maintained good sleep during exam periods performed 20% better on average.
Regular Exercise: Physical activity improves cognitive function and reduces stress. Even a 30-minute walk daily can make a significant difference in your ability to focus.
Prioritise Sleep: Aim for 7-8 hours of sleep per night. Sleep is essential for memory consolidation, which is critical when studying large volumes of information.
Practice Mindfulness: Techniques like meditation or deep breathing can help manage exam-related stress and anxiety. Even short, daily sessions can improve your mental clarity.
Passing accountancy and finance exams like the ACA, ACCA, or CTA requires hard work, strategic preparation, effective use of resources and balancing your well-being. A comprehensive study plan, focus, understanding the exam structure, leveraging resources and maintaining a balanced lifestyle, can significantly improve your chances of success. Remember, these exams are a marathon, not a sprint and the strategies you adopt today will help you cross the finish line with confidence. Good luck!