Accounting and Finance
Accounting and Finance
--- Employing In Accounting & Finance: An Introduction ---
The accounting and finance field is large and extremely diverse, touching upon many other disciplines. There are, however, three broad areas within accounting and finance that serve as the basis for our discussion of careers in this field: accounting, auditing, and finance. We begin with a definition of each area, provided below. Each of these areas is integrally linked to the others; crossing over from one to another during the course of a career is very common.
Definitions
Sample Job Titles
Education and Skills Profile
Advertising Links
Definitions
Accounting
Accounting is concerned with maintaining the financial accounts of a firm. Accountants conduct day-to-day bookkeeping operations, balance the books, track expenses and revenue, execute payroll, and pay the bills. They compile all the financial data needed to issue a company's financial statements in accordance with government regulations.
Auditing
Auditors maintain and examine the financial records of government agencies and review the accounts of private businesses and individuals whose activities are subject to government regulations or taxation.
Finance
Finance involves the study of financial resources: how they are generated, utilized, and managed. Finance professionals analyze revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure business transactions to help companies grow and develop.
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Sample Job Titles
Auditor, Treasurer, Financial Analyst, Financial Controller, Chief Accountant, Internal Auditor, Budget Analyst, Accounting Manager, Tax Clerk, Tax Accountant, Senior Auditor, Management Accountant, Bookkeeper, Senior Accountant, Credit Analyst, Audit Manager, Financial Manager, Director of Finance, Chief Financial Officer (CFO).
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Education and Skills Profile
Education Required
Most jobs in accounting and finance require a strong educational background in accounting, such as a Bachelors degree in Accounting, or a Bachelors degree in Economics or Business Administration, with a significant number of courses in Accounting.
Education Enhancement and Certificates
CPA (Certified Public Accountant)
The CPA is an internationally recognized certificate given by the American Institute of Certified Public Accountants (AICPA). The CPA examination tests a candidate's knowledge of generally-accepted accounting principles in the following categories: Business Law and Professional Responsibilities, Auditing, Accounting and Reporting, and Financial Accounting and Reporting. To find out more about the certificate and its requirements, click on the following link: Becoming a CPA
CIA (Certified Internal Auditor)
Certified Internal Auditor (CIA) is the Institute of Internal Auditors' premier certification, reflecting competence in the principles and practices of internal auditing. It has served as the only internationally accepted designation for internal auditors. Find out more about the CIA and its requirements: Becoming a CIA
CMA (Certified Management Accountant)
The Institute of Management Accountants offers the Certified Management Accountant (CMA) program, designed to recognize the unique qualifications and expertise of professionals engaged in management accounting.
CFA (Certified Financial Analyst)
Given by the Association for Investment Management and Research, the Chartered Financial Analyst Program is a globally recognized standard for measuring the competence and integrity of financial analysts. Three levels of examination measure a candidate's knowledge of fundamental investment principles.
MBA (Masters in Business Administration)
Most Accounting and Finance professionals supplement their BA with an MBA (emphasis in Accounting) rather than an MA in Accounting, in order to be prepared for managerial positions.
Computer Skills
MS Office applications (especially Excel and Access) Financial applications (these are as varied as the companies who use them, they differ according to the field and type of company).
Experience Required
For recruiting in finance, look for candidates that preferably have job experience in both accounting and auditing. When recruiting in auditing, accounting experience is required.
Additional Skills
Look for: Good communication and organization skills, high attention to detail; at higher levels, presentation skills and good verbal and written language skills are required.
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Advertising Links
Accountants World - Community for Accountants
Accounting, taxation, and software information, as well as links to accounting firm networks and publications. Includes discussion groups and a career center.
The Electronic Accountant
Software reviews, product exhibits, news, web links, career center, accountant's resource guide, discussion groups, and reviews of nearly 500 online resources.
Institute of Internal Auditors The IIA is the world leader in certification, education, research, and technological guidance for the auditing profession, and serves as a resource for significant auditing issues around the globe.
American Institute of Certified Public Accountants
Professional organization for all Certified Public Accountants in the United States which conducts CPA testing and certification. Find out about software, industry news, CPA exam, and career opportunities.
Association for Investment Management and Research
Global, nonprofit organization of more than 43,000 investment professionals from over 90 countries worldwide.
Disclaimer
These articles and guides have been compiled from internet research and interviews conducted with specialists in the field of advertising. It is meant to be an introduction into the field, for HR personnel and others interested in recruiting or developing careers in it, and not a definitive and exhaustive source on the subject.
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--- Accounting & Finance Careers ---
Every firm, regardless of industry, must have a financial department to oversee company accounts and maintain the financial stability of the company. Accountants and finance specialists are essential to a firm's growth and development. If you are interested in a career in this field, you are fortunate to be able to make use of the many career opportunities which abound worldwide in this growing area. With technological advances assuming many of the routine tasks of bookkeeping, professionals in accounting and finance are increasingly taking on more managerial and consultative functions.
The field of accounting and finance is large and extremely diverse, touching upon many other disciplines. There are, however, three broad areas within accounting and finance that serve as a basis for our discussion of careers in this field: accounting, auditing, and finance. Although each of these areas is integrally linked to the other, each comprises its own distinctive set of responsibilities and requirements.
Advertising
Information is at the heart of the accounting profession. Accountants collect and assimilate the financial information of a company and process it into financial statements. Their responsibilities are the day-to-day financial operations of a company: tracking expenses and revenues, reviewing employee salaries, and issuing financial statements in compliance with governmental regulations. The information gathered from accounting is used for various essential functions performed by finance specialists such as budgeting, forecasting, and funding. Their job touches on many aspects of business management, including investment planning, corporate development, and financial consulting. In the words of one accounting professional we spoke to, “Accounting is the basis for everything. Its outcome is essential to making planning decisions.” Far from the static stereotype that is often attributed to accounting, it is in reality a dynamic and fast-growing industry, with new opportunities and technology stimulating its growth around the world.
Requirements
As with most challenging careers these days, having a strong educational background is very important for a career in accounting. You must thoroughly understand the principles of accounting in order to be able to implement them effectively. Although a lot of the actual accounting processes are computerized and require minimal effort, you nevertheless must understand the underlying principles very well in order to be able to deal with unforeseen developments and be flexible to new approaches as a company grows and develops. Having a solid understanding of accounting principles also gives you an edge in being able to optimize the use of your time, making any process pertaining to your department easier for both you and your team. One accountant we spoke to warned against depending too much on software: “Some accounting functions still depend on working by the books, which means you still must be able to ‘work with your hands,’ and not just with a computer.” He also added that having auditing experience is an advantage if you want to be an accountant, since accountants prepare much of the documents required by auditors, and therefore it helps to be aware of the proper procedures and documentation required. Beyond the technical expertise required, and the educational prerequisites, accounting professionals must also have a high degree of personal integrity, as they are responsible for sensitive and confidential financial information.
Finance
Much like accounting, finance involves dealing with financial data relevant to a company’s operation. However, finance specialists look at the big picture, analyzing these figures from a broader perspective and using them to make high-level strategic planning decisions. A career in finance not only entails overseeing a company’s cash, liquid assets, and project costs, it also includes offering recommendations to management concerning investment management, and making critical decisions concerning capital investments, all of which determine the future of a company. One financial consultant interviewed for this article had this to say about his field of specialization, "Finance is a planning field. It is integral to the continuation, success, and even the very survival, of a company."
Requirements
Finance requires exceptionally keen analytical skills. Finance specialists analyze the figures that are at the core of any business: the cost of its stock, dividends, costs, revenue, and profit margin, and submit this analysis to management. Any deviation, whether favorable or not, between the forecasted budget and actual figures is analyzed, and an appropriate corrective action taken. Preventive action is also taken in order for such deviations not to occur again. Requirements for a managerial position in finance include management skills (enhanced by a Masters degree), a strong technical background in both accounting and auditing, and excellent communication and presentation skills.
Auditing
Auditing concerns itself with the examination, evaluation, and certification of company financial statements, in accordance with set government regulations and procedures. The end goal of auditing is to give reasonable assurance as to whether financial statements produced by the accounting department of a company are fairly stated, according to the accepted accounting standards of the country.
Requirements
Auditors should always have a degree of professional skepticism and be very analytical. Since auditing is based on professional judgment, decision-making ability is crucial. Auditors investigate, compile audit reports, and make decisions and recommendations according to the data they collect. As you rise through the ranks as an auditor, you may become responsible for a team, in which case managerial skills will be required. To be a good auditor, you must also have significant knowledge of the industry, including information on competitors in the field.
Conclusion
Accounting, auditing, and finance compliment each other and are integrally linked to one another. These three areas all require high attention to detail, excellent organizational skills, and excellent communication skills. Being a team player is also essential. Knowing financial applications is a definite advantage, although there are no standard applications. Software packages vary according to the type of company, industry, and country in which the company is operating. While some accountants believe it is preferable to have an auditing background in order to be a successful accountant, there is general agreement that strong accounting skills are necessary to becoming a good auditor or financial analyst. As with other fields, to be successful in an accounting and finance career it is necessary to be consistently up-to-date on information related to the field, and the internet is increasingly considered a vital resource for such research. Whatever your specialization, if you choose to pursue a career in accounting and finance, you will be ensured many challenges and rewards, especially at this time of fast-paced growth and technological change. This is a very exciting time to enter this diverse and stimulating field.
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--- Recruiting ---
Employing in this field differs according to experience. For example, at one stage education is more important than work experience, while at another stage the opposite is true. To conform to this, we have divided this section into three parts based on experience.
Please choose the one most appropriate for the position you want to recruit
Entry Level Positions:
These are new graduates as well as those with up to 2 years of work experience. Recruiting for an entry level position? Click here.
Middle Management Positions:
These are candidates with 3 to 5 years of working experience. In some cases, this may extend up to 7 years. Recruiting for a middle management position? Click here.
Senior Management Positions:
Candidates with over 5 (may extend to 7 years) of experience usually fall into this category. Recruiting for a senior management position? Click here.
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