Our present-day economy expects businesses and commercial entities to sustain and grow within the framework of rules and regulations that ensure fair, accurate, and transparent recording of all financial dealings. Assets, liabilities, expenses, incomes, and earnings need to be accurately and thoroughly recorded and reported. Consequently, a qualified system of accounting and finance professionals constantly monitors every financial dealing between a business and its environment and takes on the responsibility of producing financial reports that are relied upon by a variety of stakeholders ranging across investors, suppliers, customers, governmental and regulatory authorities, the public at large, and the managers and employees of the firm themselves. Indeed, the two interconnected and significant missions in accounting and finance for the contemporary world can be best captured as being able to provide inputs for transparency and for managing the associated risk. The world of business values the trusted advisory capabilities that a professional who has acquired the credentials in accounting and finance degrees has to offer. There are several career opportunities within the accounting and finance fields, all of which focus on ensuring that companies are transparent about their financial transactions, thereby offering interested parties detailed and accurate reports about how they are performing. If you are someone interested in beginning a career in this arena, pursuing accounting and finance degrees should be the starting point for you to set out. Regulatory bodies, which set rules and procedures for someday becoming a professional accountant in a diversely globalized world, accord these. There are major trends of increasing demands for graduates in accounting and finance due to ever-evolving accounting regulation and the call for more and more qualified accountants and financial professionals.
Key Reasons to Pursue a Career in Accounting and Finance
There are several reasons for choosing a career in accounting and finance. Jobs in the sector are very much in demand thanks to the widespread need for companies to monitor and manage their financial affairs. Almost all organizations, from high street banks and multinational conglomerates to public sector bodies and charities, require financial management and guidance. Trainees from an accountancy background tend to receive early responsibility, and with the right aptitude and ability, they can progress quickly from entering the profession to achieving senior management positions faster than equivalent trainees in some other professions. Accounting and financial management professionals work towards profitable outcomes, which make an organization both successful and sustainable. At a more practical level, many people are motivated to enter the profession by the financial rewards. In addition to a very recession-proof job market, popular careers in accounting, like the firms specializing in tax and assurance work, offer relatively high job security since specialized skills are needed year-round. Due to the high level and profile of their core services, expertise in accounting, financial planning, investment, and asset ownership is highly in demand. This has led to accounting and finance becoming revered fields of study pursued by ambitious professionals. As you move up the ladder from junior to senior ranks of accounting, those already above you can help you make valuable connections — but no one has a claimed spot above you. You can always rise to the top as an accountant. The skills in accounting and finance you build are largely scalable and translatable across many different jobs and industries.
Diverse Career Paths in Accounting and Finance
Public Accounting
Public accounting is focused on providing audit and tax services to other businesses and individuals. Audit services are centered on providing assurance and reports of an entity’s financial statements, while tax services are concerned with planning and compliance with tax laws. Public accounting serves to provide transparency and guidelines for stakeholder accountability. Starting as a professional in a public accounting firm as an undergraduate may provide a foundational skill set and experience needed to enter a variety of other accounting and finance positions.
— Auditing and Attest Services
— Tax
Corporate Finance and Investments
Corporate financial management is a vital process for leading the company in investment, finances, and marketing. This function is a primary driver of value for company stakeholders, including owners or shareholders. Professionals in this area may support strategic finance, transactional finance, risk management, and financial analysis. Starting with a foundation in corporate finance and investments can provide a good base for mission functionality in accounting and auditing with a broad view of industry-employing businesses.
— Treasury
— Financial Analysis and Management
Nonprofit and Governmental Accounting
Professionals entering the government and nonprofit field should have a strong sense of accountability and public stewardship. These areas require an understanding of respective fund accounting. Meeting the needs of these sectors calls for professionals who are connected to funding and incentives associated with the mission of the organization or the government.
— Federal Government
— State or Local Government
— Not-For-Profit Accounting
Forensic Accounting
Forensic accounting is an area that attracts people interested in legal issues and who often have a high degree of ethics and manipulation of fraudulent activity. As the stockholders of companies come to a clearer understanding of the necessity of transparency, the accounting profession is being put under the magnifying glass, causing companies and individuals to take special precautions to safeguard their assets by utilizing the skills and talents of forensic accountants.
Financial Planning and Analysis
The skills taught in this strand also provide a nice platform for financial operators and financial industry professionals where these professionals have corporate knowledge. FPA is a strategic management function that aligns financial and operational goals for a company. It includes cost accounting and margin analysis. It seeks to help companies execute the defined strategy, goals, and objectives. It involves evaluating the financial implications of different business activities.
Public Accounting
Public accounting is a specialized field of accounting that has been outsourced by publicly held companies to assure outside investors of transparency and that the company is in compliance with U.S. GAAP. This section deals with jobs at public accounting firms. Generally, public accounting is divided into three career paths: audit, tax, and consulting. In promoting the accounting program to new and redeclared business students, the school uses the public accounting focus for concentrators. Once students are well established in the accounting curriculum, faculty also encourage participation in the internal, governmental, and specialty accounting programs as well.
Public accounting firms prepare accurate financial statements and tax returns for a fee and perform confidence-building work to provide reasonable assurance that statements and disclosures do not contain misleading errors of omission. Clients expect this confidence-building work to fairly present the financial position of the company. The goal of public accounting is to organize financial information about a company in a prescribed manner and then report on the accuracy of that presentation. A primary purpose of publicly traded companies is to provide a return to the company’s owner(s). The U.S. government created the Securities and Exchange Commission to protect outside investors from inaccurate company reports. Accountants assure the public that audited companies have disclosed resources, obligations, and financial performance according to regulations that will be of importance and would affect stock price. Public accountants are most often part of an audit team and test their clients’ compliance with complicated laws. These employees also generate various kinds of client reports and corporate tax returns. They may prepare investment proposals for their clients, independent companies with a wide range of activities. The service is not repetitive, and about every 6 to 8 weeks a new client is assigned to them. Their proudest achievements have been attracting a substantial client account and building a friendly working relationship in the office where they interned. Participating in this part of public accounting requires professionalism and high ethical standards. It includes preparation on a continual basis, and students should be open to learning every day. The work often generates new connections. Management decides when change occurs. Work is supervised by clients, experienced staff, and management. The senior associate is willing to advise, inform, and correct their work. The associate will be given immediate coaching feedback.
Corporate Finance
Corporate finance is a central area within the business environment, concerned with the allocation of limited resources among various opportunities with an eye towards the strategic needs of companies. Finance professionals are therefore likely to be involved in solutions or assistance with functions such as budgeting, strategic planning, capital and debt structure, forecasting, margins, absorption and variable costing, the management of net working capital, cash, accounts receivable, debt and credit policies, capital investment decisions and analysis, required rates of return and the creation of value. Organizations are absorbed with the topics of financial analysis, futures, options, swaps, yield curve spreads, mergers, and hedging. Any mistake in any of these areas costs the company a lot of money.
Career Opportunities in Corporate Finance
Opportunities abound in this general area of finance for professional growth and career enhancement. The career path might normally lead to a position such as a financial analyst or assistant treasurer. Some become cash managers, credit managers, or work in capital planning functions. This is also the world of the corporate treasurer and the treasury manager. The people involved are responsible for those financial activities needed to create the basic value of a corporate organization. With a manager’s use of analytical input in this area as opposed to other decisions, the potential for value creation assumes that funds are appropriately placed within a business. If value is created, then this area is in a good position to revenue share. So beware, there lies profit and loss performance in the financial decision.
Challenges
While there are major attractions to this area of finance, given the increased use of options because of the power of the algorithm and the corresponding quantitative revolution, there are also considerations and cautions associated with this area today. Macroeconomic shifts in economies the world over also have a negative ripple effect on these activities. As well, with the resurgence of economies that are busy rebuilding and looking to grow at early stages of their growth cycle, late entrants to this area may face some very disappointing decisions. Finally, the attraction to quantitative analysis is growing in this area, thus necessitating a much more solid footing in mathematics with a high comfort level in statistics and analytical decision-making.
Government and Nonprofit Accounting
One key area of accounting is that related to the public sector. The government and nonprofit accounting area promotes real economic and social welfare and supports public policy by enhancing the transparency and accountability needed for good governance. A unique feature of today’s global economic environment is the existence of both the for-profit and non-profit sectors, each having its separate legal, ethical, and regulatory frameworks. Government accounting is practiced under the accounting framework for public sector accounting and finance and operates under the concept of accountable public management guided by statute or constitution. Nonprofit accounting among organizations is designed to provide information to managers, creditors, donors, and oversight bodies for comparing actual results to mission and sustainability objectives. Stakeholders of NPOs seek information that helps them make decisions to increase accountability. They seek this vertical accountability not only in the activities of one NPO but also comparative accountability in relation to the other organizations seeking to accomplish similar changes.
Accountants in the public sector, particularly in government and nonprofit organizations, fulfill many complex functions that differ from those in industry or in small businesses. In government, the use of public resources is an area of keen interest to the public, and it is a challenge for government accountants to ensure that it is being undertaken effectively and efficiently. Professionals often work with collaborative partnerships and diverse stakeholders to bring about positive social change. For professionals with their sights set on working in government or for a nonprofit agency, this factor can be a driving motivator. Careers in these sectors can include financial and compliance auditing of governmental entities or gaining an in-depth understanding of the unique processes of financial management of a nonprofit entity, including the management of grants and/or donated funds that incur compliance and regulatory obligations. Because stakeholders demand that charitable organizations operate with integrity, professionals in this area can work in roles with a high degree of emphasis on ethics and compliance.
Technological change has affected the recording of accounting transactions in the government and nonprofit sectors. For example, since the late 1990s, many countries have introduced or reformed national financial accounting to measure and manage the sustainability of public finances, updating accounting systems in the process. This area of the module reviews the development of accounting control frameworks for public sector organizations. The formation of the accounting framework for public sector organizations goes hand in hand with an understanding of the complex political, social, and environmental context within which public sector organizations operate. This part of the module identifies a number of important themes for public sector study. It reviews the management of the public-private divide and contracts and reconsider the significance of marketization and the influence of New Public Management on public sector accounting. We continue this exploration in the next module, where we consider the role of financial management in the management of public sector and government organizations.
Forensic Accounting
Forensic accounting, which has become more popular in recent years, is considered a niche in which accountants investigate financial discrepancies and provide support for a legal case. A forensic accountant is often asked to assist in legal disputes by analyzing value and preparing relevant reports. In addition, they find employment with law enforcement and dispute resolution services, and work privately with public accounting firms. One of the main roles of forensic accountants is to detect fraud quickly and efficiently. Measurements can be created when conduct associated with economic statements violates or leads to violations of the law. There is a lot of fraud that is the result of compromised economic statements. This damage can result in losses for the organization’s major shareholders as well as the entire individual economy.
People attracted to the profession of forensic accounting enjoy paying attention to detail and conducting in-depth research and content analysis. The ability to analyze and solve problems is key. The committees can work independently or in groups. There are also a number of specializations offered in this study. For professionals who are committed to forensic accounting, potential career paths are numerous and very diverse. With the introduction of corporate accountability reform, corporate governance is now of greater concern. In turn, more direct corporate accountability leads companies to become more conscious of harmful financial behavior. Corporate fraud and crime are two rapidly growing career segments. A good job forecast is predicted for forensic accountants. Companies and investors are worried about increasing cases of fraud, damaging the reputation of businesses. There are many large companies with hidden costs as well. There are many reasons for this career opportunity.
Financial Planning and Analysis
What is financial planning and analysis (FP&A)? It is a function of a company, often belonging to the finance team, and is responsible for guiding a company’s financial strategies. Financial planning and analysis provide insight into where the company is, trends, forecasts, and guidance for where we think we will end this year and the years to come if we continue on the same path. It is not only a look at the past and future; it is also where the future course of action is determined. FP&A influences the allocation of resources for a company to set new financial targets, forecast investments, and potentially set up merger and acquisition guidelines as well. FP&A is done for the entire company and also done within departments, and these reports are contrasted to ensure they match. Some of the exciting FP&A roles you can aspire to are FP&A Analyst and Budgeting Manager. As this is a critical function, regulations are ever-changing and the stock market is always fluctuating, so it is important to stay on top of business news and take any finance, tax, and budgeting classes that you can.
With enhanced skills, including lateral thinking, one can apply strategic direction for business decisions and investments. However, insight and data are the most important functions. It then takes not only generalism but also a level of specialized understanding of issues with the capability to brainstorm options. Individuals with strengths in finding solutions to problems, performing analytics, utilizing data sources, forecasting results, managing financials with cost/benefit trade-offs, advising on potential risks or impacts, and playing an integral part in the overall decision-making process might want to pursue a career in financial planning and analysis. It’s difficult to manage the day-to-day sales, operating, general, and administrative budget, while at the same time forecasting sales, ensuring new products are breaking even, and guiding the division’s operational financial strategies from an overall, short- and long-term financial standpoint. You need to provide sales financial analysis support through a cost-effective expenditure of goods maintenance. And, believe it or not, it is rewarding when you, as a result, help the client create their sales forecast for the year, draft the state of the sales support, and make a roadmap for the client’s overall financial success. It is the reward of providing the data and support necessary to analyze market trends and make strategic decisions to drive product launches, cut costs, and reinvest in growing areas that is interesting in the accounting sector.
Skills and Qualifications Needed for Success
A career in accounting and finance is multifaceted and includes a number of environments in which professionals can find success. These jobs all require strong skills in a variety of areas: education, technical skills, working with data, analysis, interpersonal communication, and personal skills.
Education
Professionals entering this field must have a minimum four-year bachelor’s degree in finance, accounting, business administration, or another related area in order to be considered for entry-level positions in the field.
Technical or Professional Training
In addition to a strong educational background, there are certain areas in which hiring managers are looking for a depth of skill in new employees. Some of those areas include:
– Software: Many companies are looking for new employees to have proficiency with accounting and financial software systems so they can hit the ground running. – Financial Analysis and Financial Modeling: Specific technical skills in putting together models, reports, and analyses will be incredibly valuable. – Math, Data, and Computer Skills: Individuals need to be comfortable and even enjoy working with complex data sets and computer programs. – Interpretation and Communication: Professionals need to be adept at taking that data and synthesizing it into reports, analyses, and presentations. These analyses are important for helping companies make strategic investment and financial moves. Understanding the complex data isn’t enough; individuals must be able to communicate their findings, strategies, and rationale to other departments.
Technical Skills
Section 4.1. Technical Skills
Having strong technical skills is important for applying methods to solve problems in organized, step-by-step procedures. Technical skills are essentially non-business specific, and there is a wide range of industries that require technical skills. Every firm needs to maintain its day-to-day business operations, resulting in a steady demand for these types of jobs. Below are some of the technical skills that are valuable in the accounting and finance field.
Accounting Software – Knowing how to use these types of software is not just about the computational side but also the setup and the integration of the software in order to maximize efficiency in daily operations of the company. Frequent products are various accounting software. Data Analysis/Financial Modeling – Statistical knowledge is useful to use predictive data analysis tools. Also useful is software for modeling cash flows, investments, operations, and big strategic moves. Microsoft Excel is an industry-standard tool that every student and job candidate should know how to use. Regulatory and Taxation – There are many certifications. Some examples are various tax-related certifications. Certified Financial Examiner is a great certification for someone in forensic accounting. Technology and Data Analytics – The ability to work with large sets of data is important because data analytics can provide accounting information for strategic decisions. Continuous Learning – We live in an age of technological advancements. Companies want to hire employees who keep current with the latest business trends. Make sure you are staying up on your technical skills; it can be done through taking online courses, certifications, and/or attending workshops or conferences.
Analytical Skills
It would not be too much of an oversimplification to say that accounting, in general, is about using a set of business events to produce a series of financial reports that provide insight into what has been happening within the business from a financial perspective. With this in mind, any job in accounting or finance has the analysis of this financial information at its heart. But what does that mean? Essentially, financial information gives us a closer look at what is going on. It is similar to the dials you would find on a car dashboard or the health check results the doctor can give us. These are all tools used to help us gain more insight into a specific area than we could do without them.
The techniques we have mentioned before will allow us to measure things like the performance of a business against a set target, look for trends within sales data over the last few years, and project future trends, or something as simple as working out a cost per customer so that we can offer some relevant services based on our findings. Importantly, a job in finance or accounting will require you to use your analytical skills. This can be the ability to find the sources of a problem, or it might be about using your analytical skills to offer a workable solution to a complex problem. With ratios, you can easily make comparisons between companies or between years for the same company to look for positive or negative trends. For example, ratios are an easy way to compare companies of different sizes as they are measured as a percentage of sales or costs.
So we use ratios to evaluate how much certain aspects of a business both equate to and contribute to other aspects of the business. All of this is underpinned by a healthy dose of questioning. Proficiency in asking questions of any given financial data or strategy means that you will be connecting things together that a less analytical mind might miss. Make no mistake, the heart of a job in accounting and finance is this questioning. We need those who are not afraid to ask ‘why’ and then help drive the business forward by answering their own questions and coming up with solutions. Assurance also provides people with an academically sound and challenging career and is the perfect vehicle for growing your own skills and attributes. The following are some benefits that you stand to gain through a career in accounting.
Communication Skills
Communication
The ability to communicate accounting and financial information effectively, both in writing and verbally, is a core skill for anyone studying or starting a career in this area. In accounting, not all stakeholders will have a financial background, and not all those studying or working in the area will be solely dealing with numbers. Your work will need to be communicated with other stakeholders – employers, purchasers of your company’s goods or services, investors or lenders, regulatory bodies or financial reporting standards setters or accountants in other jurisdictions. You will also need to communicate information to members of your own team – your math or numerically stronger friends or colleagues, or those working or studying in the same area as you. You will need to be able to express your opinions or reasoned conclusions clearly – in spoken and written work.
You will need to have good communication skills. Once you have a numerical or mathematical solution to the accounting or finance problem, the next step is to communicate your findings, explain your rationale, and possibly make some recommendations. In the workplace, the ability to get along with others is as important as technical or numerical skills, as most of your work will be done in teams. You need to be able to contribute to this process and not be a distraction. If you don’t have these skills, you’ll be less employable. You’ll need to be able to work out estimates, forecasts, or budgets. If you don’t ask your client (or if you’re an internal accountant, your colleagues) the right questions up front, you won’t get the right (or most useful) information to help them. Their plan then won’t fit their problem or circumstances. Again, this can create trust issues. Also, if this isn’t taken into account, it can lead to poor financial reports or decisions, violating the accountant’s professional duty to be thorough and impartial. You must be able to review or examine figures or records and tell if something doesn’t look right or seems odd. If you don’t investigate anomalies, this could give rise to ethical and legal issues (your failure to act may cause a loss to someone else and can reduce public trust in the profession). Written communication skills are needed, for instance, to report back on problems, differences, investigations, or issues. Unless these findings are communicated effectively, others can’t act appropriately. You can’t simply throw reams of computer output to someone and expect them to draw the same conclusions you have – you have to be able to pick out the key points or summaries of what you’ve seen. Little time is spent reading long-winded prose if you want a decision made. Concise reports are also important.
It is possible for you to develop improved listening skills. Sometimes, the following exercise may help: When you return from lectures or visiting a client or another organization, summarize in your head, in your own words (the plainer the better), what you have just heard. Your ability to communicate effectively is closely tied to many aspects of the accountant’s or finance professional’s job, including ethical standards. Not all accountants or finance professionals are trustworthy or meet your level of ethical standards. Many have gone into the profession believing that an “imperfect world” allows them to play “fast and loose” for personal advantage. As accountants and finance professionals, you must be open, honest, and transparent in communication to all involved about practice and trust – for example, you have the professional duty to maintain confidentiality about a deal or clients’ affairs. Communication and trust are vital in dealing with confidential information.
Certifications and Education
Many accounting and finance professionals opt for advanced certification or formal certification and degrees after completing their formal education. These are two of the easiest ways to advance your career. Anyone wishing to pursue a career in accounting or finance should consider obtaining one of the following special certificates: Certified Public Accountant, Certified Management Accountant, or Chartered Financial Analyst, to name a few.
Once you have a four-year degree or higher, specifically in accounting, finance, business, or a similar major, you have a strong foundation in business principles and accounting theory. Formal education is a long-term approach to career development, simply because the more someone advances, the more difficult it is to obtain further formal education. A formal education in accounting or finance is primarily focused on the cause-and-effect relationship between business events and accounting entries. This foundational knowledge cannot be duplicated by on-the-job training or experience alone.
The CMA could be instrumental in achieving good job prospects, and this is particularly useful for those who want further career opportunities. The additional information through ongoing education makes a CMA more valuable for employers. Like the CMA and CPA, CFMs must demonstrate ongoing education, and realistically it’s an extension of your clerical skill set. Education could be the final key to achieving a lucrative career. More education generally means additional responsibilities. Your education provides a unique chance to enhance your professional opportunities, productivity, and earnings. Graduate students might pursue more education with their MBA or Master in Management programs. Your college or university might assist in providing more information on career opportunities that are specific to finance and accounting. In the business, finance, and accounting job market, specialized training is important for valuable tasks and to demonstrate proficiency.
Job Market Trends and Salary Potential
Current job market trends indicate that demand for accounting and finance professionals is fueled by greater regulatory scrutiny and a growing complexity in financial markets for individuals, corporations, and non-profit organizations. Growth is projected at 10% through 2026. Several different segments or subfields are available. Salaries will vary among these segments and among individuals within the same subfield. The highest-paid positions are typically for people with leadership skills and substantial experience in their field.
Previously, higher income has been found in public accounting relative to government, corporations, and non-profits, and among corporate finance professionals compared to public CFOs. Five-year combined bachelor’s and master’s graduates’ mean annual salary starting offers range from $52K to $65K. Entry-level finance job starting salaries are typically lower than accounting, but they may be similar to corporate accounting salaries. Job opportunities continue to be strong. Some experts may earn more due to seniority. Finance professionals who specialize in financial analysis, especially applied security valuation, are typically the highest-paid. Forensic accountants and auditors make slightly more than corporate accountants. In addition, geographic location has an impact on earnings. Wages of accountants and finance professionals are typically higher in urban areas relative to rural communities or suburban areas.
Some development opportunities this group anticipates or experiences include automation and learning analytics to support experiential learning. Challenges include the competitiveness of the current market for internships and entry-level positions for college graduates, along with the impact of the macroeconomic environment on available jobs. Numerous finance jobs are predicted to change in the coming years, especially those that can be automated. The accounting position may be less vulnerable to automation compared to other finance jobs, as automation is both replacing jobs and creating new job opportunities. After working for an organization for a substantial period, salaries should be negotiated up, with individuals who have worked for an organization for an extended period sought after, as they are believed to make the organization better via experience. Specialist finance certifications result in higher performance expectations and higher salary offers.
As our discussion has demonstrated, a career in accounting and finance offers a number of insights and opportunities for the right kind of individual. Whether one aspires to run a department or start and run a business of his or her own, there are many different pathways to consider, as well as many different kinds of positions to support in pursuit of interests and ambitions. With the demand for accountants always growing, anyone with the right energy, interest, and skills should be able to find a well-paying job working full-time almost anywhere in the world. But it’s the softer side of working in accounting and finance that makes a career here really worthwhile.
By measuring and monitoring the health of businesses in real-time, a career in accounting and finance keeps professionals on their toes, always evolving and adapting to new ideas, new techniques, and new technologies. From day to day, accounting and finance adds value to a company by showing management and teams where they are, focusing on areas that need attention, and working with teams to bring about change. At the same time, accounting and finance professionals also make sure that a company has a strong, ethical foundation to run from by ensuring managers and directors have the information they need to do their jobs. No company can function without top-notch accounting and finance behind it, and as such, those with real financial qualifications are always in high demand, constantly pushed upward and on by the natural edge of their career paths. The more successful a person is in accounting and finance, the possibilities and the return on investment in personal and professional fulfillment grow, as well.
