Careers in Accounting

Transcription

1 Careers in Accounting TABLE OF CONTENTS IS ACCOUNTING FOR ME? 3 JOB OUTLOOK 3 WHAT S GROWING 3 GENERAL KEY SKILL SET 3 GENERAL RESPONSIBILITIES 4 CHARTERED ACCOUNTANT (CA) 4 Working Conditions Sample Career Path Sample List of Companies Other Resources CERTIFIED GENERAL ACCOUNTANT (CGA) 6 Working Conditions Sample Career Path Other Resources CERTIFIED MANAGEMENT ACCOUNTANT (CMA) 7 Working Conditions Other Resources The Big Four 8 Other Public Accounting Firms 8 In-House Accounting 8 Internal Audit Outsourcing 8 Government 8 Independent 9 PUBLIC ACCOUNTING ROLES 9 CORPORATE ACCOUNTING ROLES 10 Internal Auditor Management Accountant (also Corporate or Private Accountant) MBA STUDENTS 11 Careers in Accounting 1

2 PUBLIC SECTOR 11 Auditor Enforcement Officer PRIVATE SECTOR 12 Corporate Controller Consultant Financial Performance Measurement Consultant Strategic Cost Management Senior Associate Transaction Services Consultant Research, Analysis, Measurement and Modeling Careers in Accounting 2

3 Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. Such activities include auditing, costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management. The designations of choice in Canada are CA, CGA, and CMA. IS ACCOUNTING FOR ME? Personality Match Personality Miss Pluses Minuses Analytical Detail Oriented Creative Disorganized Potentially high salaries Partnership opportunities Stability Multiple career options Wide variety of clients Long hours (especially during the busy season!) High stress level Possible extensive travel Bureaucracy in large firms (especially Big Four firms) JOB OUTLOOK In Canada: o According to Job Futures Canada, work prospects are rated fair since the employment growth rate will tend to be average, and the number of job seekers will match the number of job openings. o There are more opportunities in finance and insurance administrative occupations. In the United States: o According to the Bureau of Labor Statistics (BLS), job growth in accounting is predicted to grow more quickly than the national average due to several reasons: an increase in the number of new businesses opening; changing business and tax laws; business finances being scrutinized more closely by regulatory agencies; increasing demand for accounting services among individuals which resulted from the increases in bankruptcies (caused by the slumping housing market); and the impact of Alternative Minimum Tax (AMT). WHAT S GROWING International accounting, including Canada s upcoming adoption of International Financial Reporting Standards (IFRS) (cross-border transactions and international trade agreements). Environmental accounting (environmental regulations). Forensic accounting (corporate financial malpractice). Expertise in system security and internet strategy is high in demand due to increasing reliance on internet for banking, sales and other financial transactions. GENERAL KEY SKILL SET Analytical skills Leadership skills Communication skills (both written and oral) Good mathematical skills Attention to detail Ability to work well independently and within a team environment Excellent work ethic High ethical standards Computer literacy Careers in Accounting 3

4 GENERAL RESPONSIBILITIES Accountants working in a corporate finance department will be responsible for the following types of activities: o Ensuring that money in-flow and out-flow are appropriate, taxes are paid on time, and public fillings are completed properly. o Balancing the books, tracking expenses and revenue, executing payroll, and paying the bills. o Completing all financial data required for the issuance of a company s financial statements adhering to government regulations. o Understanding the specifics of tax law. o Filing audits that meet the generally accepted principles of accounting (GAAP). o Understanding the broad business environment. Accountants involved in businesses either as part of CA firm or in-house accounting department are expected to help the company make key decisions for growth. They are responsible for: o Analyzing budgets o Providing investment and financial planning o Advising financial information technology options (ex: accounting and inventory tracking software) o Providing limited legal services (ex: stock filings, business registrations). CHARTERED ACCOUNTANT (CA) CAs provide a wide variety of services including: assurance and financial management expertise, nonfinancial performance measurement, corporate control, strategic counsel, information technology, consulting, and human resource management. A CA has completed one of the most rigorous and unique education programs, combining academic study, professional education and on-the-job training. CA Articling students are typically employed by CA firms. Upon receiving a CA designation, CAs either stay within public practice, as partners or employees of a firm, or are sole practitioners providing a variety of business advisory services. Services include computer consulting; business start-up and expansion; business valuations; corporate and personal financial planning, insolvency, tax, accounting, audit and environmental and forensic accounting/auditing. CAs also join management teams with various organizations and businesses in the roles of controller, chief financial officer, vice president of finance, and in some cases, investment bankers. Alternatively, some CAs become entrepreneurs running their own businesses or consulting practices. Working Conditions o 50- to 60-hour work week during winter and spring; weekend work may be required during busy season. o In late spring and summer, a 37.5 to 40-hour work week is normal. o There may be requirement to travel out of town to work at client sites. Careers in Accounting 4

5 Sample Career Path (Source: Career Cruising) Position Annual Salary Requirements Responsibilities Staff Accountant $38,000 to $50,000 Bachelor s degree. Perform detailed work for audits under supervision; prepare tax returns under supervision; complete educational requirements; study for the final exam in becoming a CA - Uniform Final Exam (UFE). Chartered Accountant (CA) $50,000 to $70,000 Completion of UFE. Overall responsibility for company audits; supervise staff accountants; organize and schedule fieldwork. Manager $60,000 to $110,000 3 to 5 years of experience as CA; further training may be required. Partner $170,000 to $325,000 5 to 8 years of experience as manager; further training may be required. Oversee audits; manage CAs and staff accountants; conduct specialty advisory work such as financial or management consulting; manage relationships with clients; find new businesses. Manage the firm; build long-term relationships with clients; find new businesses; monitor all work conducted by firm; help develop company strategy. Sample List of Companies Location Company Name Vancouver Big Four Accounting Firms: Deloitte & Touche, Ernst & Young, KPMG, and PricewaterhouseCoopers Grant Thornton Ellis Foster Smythe Ratcliffe Rolfe, Benson Chartered Accountants Toronto Big Four Accounting Firms: Deloitte & Touche, Ernst & Young, KPMG, and PricewaterhouseCoopers Grant Thornton BDO Dunwoody Zeifman & Company Careers in Accounting 5

6 Other Resources o Canadian Institute of Chartered Accountants (CICA) - o Canadian Academic Accounting Association (CAAA) - o Job Futures - CERTIFIED GENERAL ACCOUNTANT (CGA) The CGA designation offers professional accounting training with specialized studies in information technology, corporate, government and not-for-profit, and public practice. CGAs offer expertise in taxation, finance, information technology and strategic business management. CGAs start their careers as junior accountants and quickly advance to positions such as controller, financial analyst, senior internal auditor, and manager of accounting. They later secure positions as corporate controller, chief executive officer, financial administrator, vice-president of finance, accountant or internal auditor. CGAs also go on to own their own accounting firms wherein they provide tax and financial advice to individuals and to businesses, or they work in public practice and management consulting services offering their skills as professional accountants, auditor consultants, management information system consultants and financial advisors. Working Conditions o Many different computer software packages including word processing software, spreadsheet packages, and database programs are used. o Majority of time are spent dealing with numbers, fiscal reports, and other financial information. o Usually a 40-hour work week; however long hours are common during end of fiscal year and during tax season. Sample Career Path (Source: Career Cruising) Position Annual Salary Requirements Responsibilities Junior Accountant $30,000 to $45,000 Bachelor s degree; enrollment in CGA Program of Professional Studies. Perform junior-level accounting functions such as accounts payable, receivable fixed assets, or bank account tracking. Intermediate Accountant $40,000 to $65,000 CGA designation; 3 to 5 years of work experience. Senior Accountant (Controller) Chief Financial Officer (CFO) $60,000 to $100,000 Excellent management and communication skills; several years of experience. $100,000 to $200,000 At least 10 to 15 years of experience. Produce financial statements; perform some budgeting and reconciliation duties. Supervise accounting staff; approve reconciliations and financial statements. Manage staff members; assume more responsibility for internal and external communications. Careers in Accounting 6

7 Other Resources o Certified General Accountants Associations of Canada (CGA-Canada) - o Think CGA.org - o Canadian Academic Accounting Association (CAAA) - o Job Futures - CERTIFIED MANAGEMENT ACCOUNTANT (CMA) CMAs are trained to take leadership roles in operational change, performance analysis and measurement, as well as business strategy development, implementation and management. With an understanding of organizational behaviour, structure and systems, economics, finance and business operations, CMAs can analyze and manage financial information in a cross functional way. CMAs bring a blend of management skills and professional accounting expertise. The majority of CMAs work inside organization and across all functional areas of business, from finance to information technology, human resources and marketing. Due to the increased importance of management accounting, which uses both financial and non-financial information to direct strategic, tactical and operational decision-making, CMAs receive specialized training in this area. Working Conditions o Work hours vary depending on the employer and the type of industry; usually a 40-hour week. o Companies in all sectors of business and government hire CMAs. o Some travel may be required. Sample Career Path (Source: Career Cruising) Position Annual Salary Requirements Responsibilities Junior Financial Analyst / Junior Accountant $30,000 to $60,000 BCom degree; enrollment in CMA Strategic Leadership Program; strong computer skills. Financial Analyst $50,000 to $80,000 Approximately 3 to 6 years of experience; CMA designation; good analytical skills. Senior Financial Analyst or Finance Manager Director $65,000 to $110,000 Approximately 6 to 8 years of experience; excellent communication and leadership skills. $85,000 to $140,000 or more At least 10 years of experience; proven ability to help company make profits. Assist senior analysts with forecasting and budgeting; write financial reports; organize data. Analyze data; recommend solutions to process problems; write financial reports. Supervise others; write and give financial presentation; follow corporate goals; analyze data; recommend solutions to process problems; write financial reports. Optimize business outcomes; drive business to good decisions; play a proactive role; direct department staff. Careers in Accounting 7

8 Other Resources o Certified Management Accountants of Canada (CMA Canada) - o Institute of Management Accountants (IMA) - o Canadian Academic Accounting Association (CAAA) - o Job Futures - The Big Four The Big Four public accounting firms consist of Deloitte & Touche, Ernst & Young, KPMG and PricewaterhouseCoopers. Each Big Four firm has annual revenues in tens of billions of dollars, and their central focus is on external audit services: to verify the accuracy of clients books. Their non-audit lines of business consist of actuarial work (risk analysis and management), tax consulting, human resources management, and merger and acquisition advice. External auditors are required to have a better understanding of the law and GAAP than internal auditors because by law, external auditors must work for a firm outside the company being audited. For someone who is entering the accounting profession, getting a job with one of the Big Four firms can be a great career move. Since Big Four firms clients include Fortune 1000 companies, an individual can gain exposure to a range of companies and industries, responsibilities, and complex accounting issues. In addition, an individual is able to develop great technological skills since Big Four firms make an extensive use of technology. They can also provide opportunities to work around the world through their global networks of offices.. However, there are also downsides to working at a Big Four firm: conservatism and bureaucracy can exist in big accounting firms; longer work hours are expected during busy season, although this may be balanced out during the off season. Given the larger scale of many clients individuals may be working on specific areas of an audit file and not exposed to the entire file, particularly early on in their careers, Other Public Accounting Firms Besides Big Four accounting firms, there are also many smaller but also national players and regional public accounting firms that hire numerous people examples include Grant Thornton and BDO Dunwoody. Working at smaller public accounting firms offer several advantages: work hours may be slightly better than Big Four firms; the path to becoming a partner can be faster; the work is often more varied as individuals will likely be exposed to more elements of the client files. In-House Accounting Every company has internal accountants to set budgets, and track payroll, accounts payable and receivable, and other financial matters. For medium- and large-sized firms, the internal staff works with the public auditors at the end of the fiscal year, and with senior management and IT staff throughout the year. Although most accountants in the private sector remain in the same location and have the same job for an extensive period of time, the accounting skills are quite transferable should the person decide to move elsewhere. Internal Audit Outsourcing Some businesses choose to outsource their internal audit function; an example of an accounting firm who provides this service is Jefferson Wells International. Government Government accountants at the state and federal levels monitor individual and corporate tax returns, formulate and administer budgets, track costs, and analyze publicly funded programs. Careers in Accounting 8

9 Independent In the case of independent accounting practices, most of the business will derive from preparing tax returns and advising small businesses. It is essential for the independent practitioner to know how to market his/her services as well as manage his/her own business. Some independent practitioners target a niche market by specializing in a particular industry. Public Accounting Roles Two main functions of public accounting roles are as follows: to prepare a company s year-end tax statements and to perform external auditing. Most positions available in public accounting are in audit work, followed by tax practices. Roles Description Staff Audit Accountant Majority of first year will be spent on familiarizing with the work environment and working with clients. Second year focuses on acquiring more skills that are necessary to supervise engagements at senior level. Senior Audit Accountant The greatest difference between a staff and senior audit accountant is that the latter is expected to review others work as well as completing his/her own work. Generally assigned more than one client. Increased responsibility and autonomy. Staff Tax Accountant At junior level, job involves tax compliance or research, and preparation of tax returns. Tax work is highly structured: senior accountant supervisors check the work of staff and assistant accountants; managers recheck the work; and senior managers or partners sign off on the returns. At senior level, responsibility is usually tax consulting involves researching tax issues and advising corporations, trusts, and partnerships on tax implications of various actions. Primary busy season is from January to April; secondary busy seasons are in summer and fall. Senior Accountant Senior accountants are the second level in public accounting hierarchy (requires approximately 1 or 2 years of work experience). May begin supervising teams of other accounts. Numerous accountants (as many as 8 out of 10) leave their firms at this point for private corporate accounting. Manager Do not perform as much hands-on auditing, however will handle sensitive issues such as important clients creative bookkeeping. Main responsibility is to plan and assemble audit teams and allocate their time at various jobs. At the end of an audit, report to a partner for sign off on work. Potential partner material, however 5 to 7 years of experience is required and the partner track is highly competitive. Partner Requires approximately 10 or more years of work experience. Responsibilities include signing off on audits, working on client development, and training younger accountants. Careers in Accounting 9

10 Corporate Accounting Roles Internal Auditor Large, complex companies usually have internal auditors who ensure that the company s financial records are in order, and that there is no mismanagement or fraud in its operations. Internal auditors do so by analyzing the company s operational processes, information systems, financial systems, and controlling systems. Specializations include electronic data processing auditor, environmental auditor, engineering auditor, bank auditor, and health-care auditor. Management Accountant (also Corporate or Private Accountant) Management accountants are in-house accountants who track the finances of the companies they work for, as well as oversee profit-and-loss statements and balance sheets of individual departments and the company as a whole. Management accountants are required to develop a great understanding of the company s business, and the environment in which it operates. General Responsibilities o Plan and oversee budgets. o Adjust budgets periodically based on overall business strategy. o Take responsibility for various areas of company, given the budgets on which they are working on. o Forecast financial performance. o Oversee and reduce costs. o o Manage investments of company. Prepare reports for outside parties and regulatory authorities (ex: tax returns, annual reports for investors, lender-required reports on financial health of company, or filings with Securities and Exchange Commission). Sample Management Accounting Jobs Role Description Budget and Credit Analysts Budget analysts plan and manage corporate finances over a 12 month period or longer; they present findings and recommendations either themselves or through controllers. Numerous budget analysts are employed by the government for public programs and expenditures. Credit specialists focus on whether customers or institutional clients can repay a loan or credit line. Banks are biggest employers of credit analysts. Controller Controller is the title for key financial officer at a corporate firm. Responsibilities and salary are dependent on size of firm. Perform strategic role in support side of business; plan allocation of various funds throughout company. Careers in Accounting 10

11 MBA Students Will an MBA help my career in accounting? o An MBA generally does not advance a career in accounting, however is allows the accountant to leverage his/her accounting background to pursue other careers such as investment banking and corporate finance. o An MBA degree may be useful for financial analyst positions since the role demands working with cross-function teams understanding in areas such as marketing, operations and management is required. o As a result of recent accounting software that handles most of bookkeeping, degrees in finance, business and even MIS are useful for obtaining a job as management accountant or internal auditor. The author of the following passage, Kiu Ghanavizchian, is a former Sauder Accounting Faculty member as well as an MBA graduate from the Class of The following is an overview of some of the many occupations that a recent MBA-CMA (Accounting subspecialization) is well positioned to pursue. As with many professional careers, all of the following positions require strong skills in the following areas: Teamwork Leadership Analytical thinking/problem solving Communication (written and oral) Time management Thus, the descriptions and summaries given below will focus on other skills and attributes that a potential candidate should possess when applying for most of the jobs mentioned in this section. This overview will highlight the careers in both Public and Private sectors. Public Sector Job Title Auditor Potential Employer(s) Canada Revenue Agency (Federal) Ministry of Revenue (Provincial) Role/Responsibilities Conduct audits of a wide variety of businesses and professions to ensure compliance with the provisions of the Income Tax and Excise Tax Acts and similar legislation at the provincial level. Attributes required* Travel within a regional district is often necessary. Being assertive while still demonstrating immense diplomatic skills is a necessity. Other While not the sexiest of potential occupations, serving as a tax auditor is nonetheless an important role since you ensure that corporations and individuals pay their fair share of taxes so as to fund vital public services. With an MBA as well as a CMA, movement up the managerial chain of command is virtually assured since many existing regional managers are quickly approaching retirement age. The benefits package is excellent and essentially unrivalled by those in the private sector. * Over and above those mentioned at the start of this section. Careers in Accounting 11

12 Job Title Enforcement Officer Potential Employer(s) Provincial Securities Commissions (BCSC, OSC, etc.) Role/Responsibilities Ensure that individual investors, publicly traded companies and other capital market participants abide by the rules and regulations and set out by each province s securities regulator/commission. Attributes required Assertiveness and initiative are absolute necessities. The ability to possess tough skin as you will not exactly be on Howe Street s or Bay Street s Christmas card list. Other Much like a federal or provincial tax auditor, the first few years will be busy with low level investigative and compliance work. As you gain experience, however, there will be ample opportunity to move up the chain of command. With the recent wave of accounting and corporate governance reforms, the rules and regulations governing the public securities markets are only getting more complex. Much of the funding being raised by securities regulators are being spent in the areas of enforcement. Thus this will be an area of high growth in the next few years. Private Sector Job Title Corporate Controller Potential Employer(s) Virtually any small, medium or large company with a dedicated financial reporting department. Role/Responsibilities Supervise the preparation of monthly, quarterly and annual financial statements. Supervise a staff of junior accountants responsible for routine record keeping over A/R, A/P, Inventory, Capital assets, etc. Prepare or supervise the preparation of annual income tax returns and other tax reporting obligations. Preparation of an operating budget as well as monthly, quarterly and annual variance analysis. Attributes required Excellent knowledge of GAAP (including financial disclosure requirements). For public companies, a willingness to put in long hours at the end of each fiscal quarter. Other As one of the key managers in the firm, you will be responsible not only for financial accounting and reporting but also for adding valuable insights into business decisions such as potential acquisitions, implementation of a new accounting system, special finance projects, etc. A combination of an MBA and a CMA will certainly help any future horizontal or vertical shifts within the company. Careers in Accounting 12

13 Job Title Consultant - Financial Performance Measurement Potential Employer(s) Big 4 Accounting Firms Role/Responsibilities The following is from Deloitte s Career website but nearly all of the major accounting firms offer the same types of services within this area: The role of today s Chief Financial Officer (CFO) has never been more important or more broadly defined. The CFO is the operational and strategic leader of a fundamental function, whose core processes, resources and technologies impact virtually every organizational activity. Deloitte provides a comprehensive suite of services to support the CFO. Our Finance & Performance Management Professionals work with our client s Finance Executives to optimize shareholder value and transform the finance function. The Finance and Performance Management Group in our Strategy and Operations consulting practice is currently seeking a high-performing Consultant or Senior Consultant to join our growing team. The Management Group delivers leading edge solutions including: - Enterprise Value Planning, Analytics, & Tools - Planning, Budgeting & Forecasting - Performance Measurement, Reporting and Scorecards - Finance Transformation (process, benchmarking, and best practices) - Finance Systems (SAP, Oracle, Cognos and Hyperion) - Finance Merger Integration - Strategic Cost Management including Activity-Based Costing - Enterprise Cost Reduction Attributes required As with any project driven environment, the ability and willingness to work long hours (often on out of town assignments) is a must. While a strong IT background and previous experience with SAP, Oracle and other enterprise wide software programs are not necessary, it will certainly help. Other Most firms who want to fill such positions are actively looking for MBAs with a strong background in accounting. An MBA and CMA combination would be an excellent fit in this area of work. Job Title Consultant - Strategic Cost Management Potential Employer(s) Big 4 Accounting Firms Role/Responsibilities Cost analysis to support the development of business cases and resource allocation for programs and services, including scenario and options analyses. Developing standardized costing models to account for appropriate overhead allocations and to reliably measure the cost of activities and programs to support decision making. Integrating costing methods with new and existing financial processes and performance measures to track and monitor program expenditures and investment in new initiatives. Attributes required Excellent knowledge of activity based costing/management (ABC) techniques. Fluency in French would be beneficial but not required. Careers in Accounting 13

14 Other Most of the work in this area relates to federal and provincial governments as well as health authorities. However, there are some engagements that pertain to private companies as well. The managerial accounting focus of the CMA is uniquely suited towards this type of work. Job Title Senior Associate - Transaction Services Potential Employer(s) Big 4 Accounting Firms Role/Responsibilities The transaction services group of any large accounting firm generally helps clients with mergers and acquisitions, including financial and operational due diligence, accessing the capital markets and valuing, negotiating and structuring deals. It also assists with divestments and developing exit strategies. As a Senior Associate, you will participate in financial and operational analysis/valuations of businesses. Attributes required As with any project driven environment, the ability and willingness to work long hours (often on out of town assignments) is a must. Other Some firms may ask that you obtain your CFA or CBV (in addition to your MBA) if you wish to stay in this line of work for the long-term. Many of these firms do provide financial assistance should you decide to obtain one of these designations. Job Title Consultant - Research, Analysis, Measurement and Modelling Potential Employer(s) PricewaterhouseCoopers (and perhaps other accounting firms in the near future) Role/Responsibilities Play an essential role as part of a team working on a variety of research, policy analysis, performance measurement, Program Evaluation and/or modelling-related assignments. Industry and company research, methodology development, document reviews, interviews, focus groups, and/or economic, statistical and/or financial analysis and modeling. Responsible for business development, project management and quality assurance. You will have a focus in either industry and commercialization research and policy or program evaluation. Attributes required Fluency in French would be beneficial but not required. Other Most of the clients tend to be government agencies and other not-for-profit organizations. Most of the work in this area is located in and around Ottawa and Toronto. However, this is a growing area for PwC (internationally as well as domestically). Careers in Business - Occupations handout contains material written by CareerLeader and Vault.com Careers in Accounting 14