Industry Profiles
Accountancy
Overview
Estimated graduate starting salary:
£12,000 - £23,000
Typical salary after training: £26,000 - £50,000+
Graduate Accountancy Jobs
Every business, whether they are a huge multinational or a small enterprise, needs an accountant. Generally accountants offer financial advice to clients by managing cash flow and monitoring profit and loss, but this is increasingly joined by the supply of financial information that could influence the strategic development of organisations. The industry they work in is modern and fast-moving, uses the latest technology and attracts some of the most motivated and intelligent graduates from a wide variety of degree backgrounds.
Around 8% of all graduate jobs are in accountancy with the most prominent graduate recruiters being the 'Big 4' accountancy firms. These firms now style themselves as providers of professional services. They present themselves to clients as professional service advisers, offering solutions to all their business problems. They aim to help businesses and organisations improve their effectiveness and achieve their objectives. To do this effectively, they need to have an excellent understanding of their client's business.
There are many firms, usually run as partnerships, that provide accounting services to many companies and individuals. The rest of the market is made up of small and medium sized firms across the UK that usually specialise in a particular type of work or local area. Opportunities exist nationwide in commerce and industry as most organisations employ accountants to carry out day-to-day financial management. Public sector organisations need accountants to manage the public's money and invest it in public services. In the UK a cluster of jobs are available in central London (Westminster) with others available nationwide.
With the opportunity to become expert business advisers, to work abroad and also to study for professional qualifications that are recognised worldwide, the accountancy sector is attracting more and more graduates every year.
Typical salary after training: £26,000 - £50,000+
Graduate Accountancy Jobs
Every business, whether they are a huge multinational or a small enterprise, needs an accountant. Generally accountants offer financial advice to clients by managing cash flow and monitoring profit and loss, but this is increasingly joined by the supply of financial information that could influence the strategic development of organisations. The industry they work in is modern and fast-moving, uses the latest technology and attracts some of the most motivated and intelligent graduates from a wide variety of degree backgrounds.
Around 8% of all graduate jobs are in accountancy with the most prominent graduate recruiters being the 'Big 4' accountancy firms. These firms now style themselves as providers of professional services. They present themselves to clients as professional service advisers, offering solutions to all their business problems. They aim to help businesses and organisations improve their effectiveness and achieve their objectives. To do this effectively, they need to have an excellent understanding of their client's business.
There are many firms, usually run as partnerships, that provide accounting services to many companies and individuals. The rest of the market is made up of small and medium sized firms across the UK that usually specialise in a particular type of work or local area. Opportunities exist nationwide in commerce and industry as most organisations employ accountants to carry out day-to-day financial management. Public sector organisations need accountants to manage the public's money and invest it in public services. In the UK a cluster of jobs are available in central London (Westminster) with others available nationwide.
With the opportunity to become expert business advisers, to work abroad and also to study for professional qualifications that are recognised worldwide, the accountancy sector is attracting more and more graduates every year.
Career path
'Accountant' is the name given to any professional with a relevant, nationally recognised finance qualification. The term 'financial management' describes the work carried out by accountants working within an organisation such as a company or the public sector.
Areas of accountancy include:
There are several qualifications depending on the routes that are taken. ACA or ACCA are usually attributed to accountants while graduates will take CIMA for management accountancy exams. In the larger firms, there are a number of areas such as forensic accounting, audit, tax, corporate finance, etc, that graduates can choose to specialise in after passing their exams. In smaller organisations accountants are expected to cover a number of technical areas and cope with all aspects of a client's business affairs.
Graduates can choose to train as an accountant in a wide variety of environments. If you work in public practice as an auditor (and want to obtain a practicing certificate allowing you to sign accounts) you will normally choose between the Institute Chartered Accountants of England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). Recently some firms have sent their graduates on the Institute of Chartered Accountants in Scotland (ICAS) qualification to meet their specific requirements.
If you wish to work in industry and commerce you will be choosing between ACCA and the Chartered Institute of Management Accountants (CIMA). Both bodies have published new syllabi which have some notable differences. The ACCA offers the choice of two from four final level paper options whilst CIMA offers an integrated case study. An increasing number of consultancy firms include accountancy training as part of their development programme.
Accountants in the public sector are often advised to sit the Chartered Institute of Public Finance Accountants (CIPFA) exams. Some employers also give the option of sitting the CIMA or ACCA exams if these seem more relevant to the organisation.
Increasingly, as firms strive to offer the full range of professional financial services, or as companies feel the need for specialists within their staff, others with more specialised qualifications are working in the sector.
A quick look at the 'Big Four' firms will reveal that they offer training in a number of other areas. These specialists may also be found in industry, commerce and the public sector too. Whether you work for one of the 'Big 4' accountancy firms, a medium sized firm, or in the finance department of a blue-chip company, the various training programmes on offer can provide you with some of the best training you will ever get as a graduate entering the business world.
Career progression in most accountancy firms is strong with a path that can lead to partner level. However, accountancy is not the only route as the skills learned in this profession are transferable to other areas of business, i.e. consultancy or management. It is worth noting that many managing directors of most publicly limited companies have some form of accountancy qualification. Salaries for accountants once qualified have also been historically high, with salaries doubling typically after three years, which makes accountancy the first career choice for many graduates.
Areas of accountancy include:
- Audit
Auditors provide assurance to the board regarding the financial and operating controls a company has in place. They promote the awareness of risks, making sure that managers understand and can deal with them. - Financial accounting
Financial accounting involves keeping a track of all financial transactions and preparing the accounts. The work may also involve auditing. - Corporate finance
Corporate financiers advise companies and provide help with multimillion pound transactions including mergers, acquisitions, disposals and fund raising. Graduate analysts in this area are required to consider a number of factors including the financial position of a company, its cash generation, financial needs, competitive position and actual value. - Forensic accounting
Forensic accounting can be summarised as quantifying losses arising from an incident, such as floods, fires, motor accidents, thefts and earthquakes. Forensic accounting therefore ranges from helping investigate fraud allegations to assessing the financial impact of a disaster. The two main areas of work are litigation support and insurance. - Management accounting
Management accountants usually work within a company, rather than a professional services firm. They're mainly responsible for managing company-wide financial systems, controls and processes; internal and external reporting of management information; providing financial support to all business divisions and other business functions with the company. - Corporate recovery
Corporate recovery can be summed up as making ailing businesses better. Businesses that are under-performing or are in financial distress can often be rescued by the intervention of a corporate recovery team. - Tax
There are two main aspects to working in taxation. Tax consultants advise clients on the most tax-efficient way of conducting their affairs and calculate tax liability. They tend to be involved at the heart of every project or transaction, be it a merger or acquisition or the establishment of new operations overseas. - Assurance
Assurance services provide an independent examination of an organisation's financial statements to ensure that they accurately represent the client's operations and position. The idea is to assess business risk and the processes and controls underlying the financial reporting process. Information about risks is gathered in a number of ways, such as analysing industry trends and the company's performance using financial and non-financial measures.
There are several qualifications depending on the routes that are taken. ACA or ACCA are usually attributed to accountants while graduates will take CIMA for management accountancy exams. In the larger firms, there are a number of areas such as forensic accounting, audit, tax, corporate finance, etc, that graduates can choose to specialise in after passing their exams. In smaller organisations accountants are expected to cover a number of technical areas and cope with all aspects of a client's business affairs.
Graduates can choose to train as an accountant in a wide variety of environments. If you work in public practice as an auditor (and want to obtain a practicing certificate allowing you to sign accounts) you will normally choose between the Institute Chartered Accountants of England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). Recently some firms have sent their graduates on the Institute of Chartered Accountants in Scotland (ICAS) qualification to meet their specific requirements.
If you wish to work in industry and commerce you will be choosing between ACCA and the Chartered Institute of Management Accountants (CIMA). Both bodies have published new syllabi which have some notable differences. The ACCA offers the choice of two from four final level paper options whilst CIMA offers an integrated case study. An increasing number of consultancy firms include accountancy training as part of their development programme.
Accountants in the public sector are often advised to sit the Chartered Institute of Public Finance Accountants (CIPFA) exams. Some employers also give the option of sitting the CIMA or ACCA exams if these seem more relevant to the organisation.
Increasingly, as firms strive to offer the full range of professional financial services, or as companies feel the need for specialists within their staff, others with more specialised qualifications are working in the sector.
A quick look at the 'Big Four' firms will reveal that they offer training in a number of other areas. These specialists may also be found in industry, commerce and the public sector too. Whether you work for one of the 'Big 4' accountancy firms, a medium sized firm, or in the finance department of a blue-chip company, the various training programmes on offer can provide you with some of the best training you will ever get as a graduate entering the business world.
Career progression in most accountancy firms is strong with a path that can lead to partner level. However, accountancy is not the only route as the skills learned in this profession are transferable to other areas of business, i.e. consultancy or management. It is worth noting that many managing directors of most publicly limited companies have some form of accountancy qualification. Salaries for accountants once qualified have also been historically high, with salaries doubling typically after three years, which makes accountancy the first career choice for many graduates.
Qualifications and skills needed
Accountancy is no longer about number crunching and the industry is also shedding its "boring" image, and is heavily involved in the e-business world. In fact, even the word accountant is becoming rare. Accountants see themselves as multi-skilled business managers and consultants. Today's accountant is much more a business advisor, and this is reflected in the exams and syllabuses of the five major UK accountancy bodies.
Accountancy practices take on graduates from all disciplines so an accountancy degree is not a prerequisite, however strong academic qualifications usually are especially helpful if you are applying for the 'Big 4' firms. This generally means a 2:1 in a good academic subject from a leading university and high UCAS points usually at least 240 not including general studies. You will also need good English and Maths GCSE grades and skills in another European language are always attractive. Employers in this sector will also seek strong numerate candidates who are ambitious, analytical, logical, patient, persistent and are prepared to spend long hours studying and working.
It is important to realise that the majority of accountancy work is not biased towards maths or numbers. Tax work, for example, is for the most part, advisory, and involves interpreting law and figures, rather than sitting down with the calculator all day. The modern day accountant must have a wide range of skills and show a proficiency in all business areas. Good oral and communication skills are essential as interaction with the client happens on a day-to-day basis. But, above all, to succeed as an accountant you need to have the drive and motivation, and the ability to grit your teeth through the exams.
The decision on which professional qualification you will study for is likely to be determined by your employer. If you find yourself with a number of job offers, try and find out what particular qualifications are offered. Also find out about the level of financial support and study leave provided.
With some firms investing up to £100,000 per trainee, pass rates are vital. Accountancy firms take the requisite exams very seriously allowing candidates a limited number of chances to pass before terminating their employment contract. Therefore it should not be forgotten that while your degree is behind you, the exams process is not. For many, accountancy exams can be their toughest. Many graduates can fail an exam for the first time and this can be a harsh introduction to the accountancy profession. On average it will also take three to five years to pass the exams and gain the necessary accountancy qualifications to make it as an accountant.
Accountancy practices take on graduates from all disciplines so an accountancy degree is not a prerequisite, however strong academic qualifications usually are especially helpful if you are applying for the 'Big 4' firms. This generally means a 2:1 in a good academic subject from a leading university and high UCAS points usually at least 240 not including general studies. You will also need good English and Maths GCSE grades and skills in another European language are always attractive. Employers in this sector will also seek strong numerate candidates who are ambitious, analytical, logical, patient, persistent and are prepared to spend long hours studying and working.
It is important to realise that the majority of accountancy work is not biased towards maths or numbers. Tax work, for example, is for the most part, advisory, and involves interpreting law and figures, rather than sitting down with the calculator all day. The modern day accountant must have a wide range of skills and show a proficiency in all business areas. Good oral and communication skills are essential as interaction with the client happens on a day-to-day basis. But, above all, to succeed as an accountant you need to have the drive and motivation, and the ability to grit your teeth through the exams.
The decision on which professional qualification you will study for is likely to be determined by your employer. If you find yourself with a number of job offers, try and find out what particular qualifications are offered. Also find out about the level of financial support and study leave provided.
With some firms investing up to £100,000 per trainee, pass rates are vital. Accountancy firms take the requisite exams very seriously allowing candidates a limited number of chances to pass before terminating their employment contract. Therefore it should not be forgotten that while your degree is behind you, the exams process is not. For many, accountancy exams can be their toughest. Many graduates can fail an exam for the first time and this can be a harsh introduction to the accountancy profession. On average it will also take three to five years to pass the exams and gain the necessary accountancy qualifications to make it as an accountant.
Sources for further information
Chartered Institute of Management Accountants www.cimaglobal.com
Association of Chartered Certified Accountants www.acca.co.uk
Institute of Chartered Accountants in England and Wales www.icaew.co.uk
Institute of Public Finance www.ipf.co.uk
Chartered Institute of Public Finance and Accountancy www.cipfa.org.uk
Institute of Financial Accountants www.ifa.org.uk
Institute of Business Advisers www.iba.org.uk
Association of Chartered Certified Accountants www.acca.co.uk
Institute of Chartered Accountants in England and Wales www.icaew.co.uk
Institute of Public Finance www.ipf.co.uk
Chartered Institute of Public Finance and Accountancy www.cipfa.org.uk
Institute of Financial Accountants www.ifa.org.uk
Institute of Business Advisers www.iba.org.uk
