Introduction
This is assignment has been created to inform readers about the range of career opportunities available within the field of accountancy and the skills required in order to be successful in obtaining a job in the financial sector. The information provided will be useful to anybody who wishes to start or further a career in finance or accountancy as it will discuss a range of accountancy careers and different progression routes.
The last part of the assignment will consist of a job description and covering letter alongside a CV as this will provide guidance to individuals who are wishing to apply for an accountancy post but aren’t too sure how to make their CV relate to it.
Overview
The UK’s finance sector accounts for more than 7% of the total employment. Financial and insurance services contributed £126.9 billion in gross value added to the UK’s economy in 2014 which was 8% of the UK’s overall GVA. Gross value added is a measurement of the contribution of a sector to the economy therefore it focus on the value of a sector’s goods or services to the economy. Northern Ireland accounted for 1.2% of the total financial and insurance sectors GVA in the UK and London accounted for the most, providing 50.5% GVA to the UK’s total. In 2014 there were over 1.1 million jobs in this sector. Looking at the Northern Ireland Census 2011 Key Statistics Summary Report, it can be seen that 3.27% of residents aged 16-73 work in the Financial and Insurance Sector in Northern Ireland, with 2.69% of the male population working in this sector alongside 3.89% of the female population working in the finance sector in Northern Ireland.
There are four main accountancy and professional services firms in the UK; Deloitte, EY, KPMG and PwC, they are also known as the ‘big four’. Each of these firms have offices located in Northern Ireland. Before applying for, or accepting a job within the finance sector it is useful to know that work hours are long and demanding as most accounting firms operate as a face-paced environment.
Range of Jobs and Responsibilities
Many people assume there is only one type of accountant and there are a limited amount of jobs they can do, however, they are very wrong. There are various jobs available for anyone interested in accountancy, and all job roles vary. Accountancy isn’t limited to one specific area. For example, a Financial Adviser’s role is very different to that of a Chartered Management Accountant’s, however they still both incorporate the subject of accountancy.
A Financial Adviser’s main role consists of them providing their clients with specialist advice on how they should manage their money. They must also research the marketplace and recommend the most suited product and services available so their clients are aware of all options available. This role is very client based therefore good communication skills are necessary. A Chartered Management Accountant’s role involves preparing, developing and analysing key financial information to ensure the organisation’s management team are making correct financial decisions to ensure a successful future for the business. As this role involves decision making it is important that a Chartered Management Account shows initiative. Their responsibilities involve preparing financial statements, ensuring spending complies with the budget and negotiating on projects, grants and loans.
Another accountancy related job is an Internal Auditor who’s main role involves working within a business to monitor and evaluate how well managed their risks are, how their business is being run and internal processes are working. They also provide advice to management on financial and accounting risks. Their responsibilities involve attending meetings with fellow auditors to develop further knowledge of business processes and preparing reports to highlight problems and sending them to the relevant staff.
Overall there are two main types of accountants, financial and management, then within these there are more specific roles such as the ones mentioned above. A financial accountant is involved in the preparation of accounts to provide to people outside the business, such as the shareholders, or people within the business who aren’t involved in the day-to-day operation of the business, therefore this role would be suited to anyone who enjoys working with lots of figures and doing calculations. A management accountant analyses the reports provided by the financial accountant in order to make decisions on specific financial areas and growth strategies.
Qualifications and Professional Bodies
In order to gain a job as an accountant, a degree isn’t always needed, however it is useful therefore recommended to do if you have a chance. There are many professional accounting qualifications/bodies recognised by most accounting firms such as AAT, ACCA, ACA and also known as ICAEW.
AAT is the Association of Accounting Technicians which comprises of three qualifications across three levels that combine sector knowledge and practical work skills. It is internationally recognised therefore not limited to accounting firms within the UK so you’re able to work in an accounting firm anywhere in the world.
ACCA is the Association of Chartered Certified Accountants that have two levels of qualifications; Fundamentals and Professionals, and their modules cover a range of topics such as Performance Management and Taxation in the Fundamental level, and Corporate Reporting and Business Analysis in the Professional level. Just like AAT, ACCA qualifications are globally recognised as they are based on international accounting standards and studying is flexible as you can choose to study either full-time, part-time or self-study.
ICAEW is the Institute of Chartered Accountants in England and Wales, and the ACA qualification provides an in-depth understanding of accountancy, finance and business, alongside that it helps build the professional skills, technical knowledge and experience needed to become a Chartered Accountant. In order to complete the ACA qualification you must undergo professional development, learn about ethics and professional scepticism alongside completing 3-5 years practical work experience and 15 accountancy, finance and business modules.
Joining a professional body and obtaining their qualifications will boost your status within your area of expertise and will look extremely good on your CV when applying for an accountancy role. As previously stated, most of these professional bodies and their qualifications are recognised worldwide so you are able to put the skills and knowledge obtained in to use in an accounting firm globally. Going through a professional accounting qualification keeps your options open after it has been completed, you won’t be limited to a specific area of work therefore you can switch accountancy roles in a few years.
Salaries
Just like all jobs, salaries usually depend on experience, status within the business and the type of job you are doing. The salaries that will be explored here will be the ones of the jobs we looked at earlier. As a Financial Adviser at trainee level, you would be expecting to earn anything between £22,000 and £30,000, then once you’re qualified that would increase to between £30,000 and £45,000. Senior Financial Advisers with a lot of experience would earn up to £60,000. Working as a Financial Adviser you may also earn bonuses and commission alongside other benefits on top of the salary however it depends on the individual business as some may differ from others.
A Chartered Management Accountant’s starting salaries will depend upon the firm and location, however it is estimated to me around £28,000. Once the relevant exams have been passed that salary will increase to over £32,000. CIMA (Chartered Institute of Management Accountants)-qualified finance professionals earn on average around £61,000 regardless of their experience and the salaries at a senior level range from £46,000 to over £129,000. Like a Financial Adviser, Chartered Management Accountants get bonuses, their student’s average bonus is around £1,500, their qualified members are around £6,100 and senior staff bonuses are up to £21,000.
An Internal Auditor with limited experience can earn salaries between £22,000 and £35,000 and these tend to increase overtime as experience increases to anything between £32,000 and £53,000. Experienced auditors at director level can earn over £70,000.
Overall, an accountancy job is well paid as long hours are worked in a busy environment. No matter what accountancy job you decide on, the salary will increase dramatically over time once professional accountancy qualifications are obtained and experienced is increased.
Work Experience, Apprenticeships and Internships Available
Experience within the finance sector before gaining a job role is very important as the people who have relevant experience within the sector are usually the ones who get the job over ones who have limited to no experience, therefore it is useful to research how you can gain valuable work experience before applying for a job.
Many finance firms such as PwC and Deloitte offer a range of internships, work placements and apprenticeships. PwC offer a summer internship to students who are in their penultimate year of an undergraduate degree, during the internship students will be assigned to projects to develop their knowledge of how PwC work, they will gain first-hand experience working within the business which will be valuable for their future career. There are 7 areas to choose from for an internship; Actuarial, Assurance, Consulting, Deals, Legal, Tax and Technology.
Deloitte offer a BrightStart business apprenticeship scheme for people who have just completed A Levels or for university students who aren’t happy with their course. This apprenticeship gives students the opportunity to earn as they learn and gain value business knowledge. The four business areas you can choose from are Audit and Risk Advisory, Consulting, Financial Advisory and Tax Consulting.
Overall, there are many opportunities for people out there to gain finance knowledge before entering a full time jobs, this also gives them the opportunity to see if they really want a job within the finance sector.