Accountants and the credit crunch

Two years on from the onset of the credit crunch, and it’s fair to say that accountants have taken a good deal of the flack. But where has the recession left the profession?

While the picture is somewhat different today than it was when we were heading towards Christmas two years ago, uncertainty still reigns. Before the credit crunch, accountants generally knew their value to a business. Now they’re not so sure and there’s more of a feeling that like any other employee or director, accountants have to sing for their supper.

Accountants have even developed a more animalistic streak in the office. They have become competitive towards their colleagues in the interests of self-preservation, increasingly playing the office politics game to avoid the chop. Those in commerce and industry have had to justify their positions more than ever before – as do those practising in the public sector. And there’s now more of a fear of carrying the can; there’s a sense of ‘live by the sword, die by the sword’ should things go wrong. I’m not saying that’s necessarily incorrect, just offering my view on how life has changed for the profession.

In some people’s minds accountants are viewed with the same disdain currently being levelled at bankers, politicians and even estate agents. Perhaps some are culpable because they failed to uncover and act upon substantial losses (particularly in the banking sector). Two years ago, the banking sector was rocked to its core, resulting in an immediate and almost terminal decline in transactional activity; this has continued until as recently as the last few months. However, from where I sit, we are now seeing a significant increase in vacancies in the banking and financial services sector. Businesses are working hard to ensure they have the right infrastructure in place to make a fast ascent on the upward curve (accountants with experience in compliance, risk and regulation, take note). And this doesn’t just apply to the UK – we’re seeing the effect in our offices around the world.

Whether out of a ‘do-good’ mentality or out of the need to put bread on the table, it also appears that the recession has appealed to the altruist in us. We are seeing accountants deserting traditional roles in commerce and industry for the public or not-for-profit sectors. There’s been an unprecedented rise in applications for these roles against 2007 figures. Why, I hear you ask? Well, some people are now looking for more job security, others have been forced out of the private sector by redundancy and some have been headhunted into the big not-for-profit jobs. However, for many it’s a lifestyle choice and they just want to ‘do some good’. Whatever the motivation, both accountant and employer will benefit. The accountant will often command a similar salary, have increased job satisfaction and perhaps be under less pressure; the organisation will get an accountant who knows the commercial ropes, has a diverse portfolio of skills and who is, in many senses, thoroughly ‘job ready’.

So, that’s the past two years – what about the next two? (Well, it is the time of year for predictions)! It will certainly be interesting to see how the role of the accountant will change. New patterns are emerging and employers’ needs and expectations are changing. Cashflow forecasting, budgeting, risk management and internal audit are today’s ‘hot’ skills, as is the ability to take a genuinely strategic view of the business. Canny business leaders are now looking for accountants made of the ‘right stuff’ – the sort of stuff that will help bring their businesses out of recession.

For those looking for their next move – whether they’re currently employed or not - the wheels should start spinning again as we move towards 2010. I believe that businesses will start to look for their ‘right stuff’ as they invest for the upturn. So, pecker up – things are moving in the right direction once again.


Dave Way, Managing Director, WH Marks Sattin