Everyone tells me not to be an Auditor...what’s so bad about it?

There is nothing bad about being an auditor per se! In general auditors are very nice people, and the profession can be interesting and exciting.

Unfortunately, in industry and commerce, auditors are generally seen as outsiders, a necessary evil that companies have to entertain in order to be compliant with regulations.

Quite often audit firms do nothing to help this impression, as they only appear once a year, at an extremely busy time for the company, and ask many questions over and over again!

On the other hand, if the audit firm works in the manner that I believe it should do – by trying to add some value/give some pointers to management – then this can actually become a valuable service.

In fact, I believe that starting one’s career in audit can be very useful. It helps to encourage a way of thinking which is logical and exposure to different industries and companies helps with overall finance function/process understanding.

GAAPweb Meetup Summary - Some Questions and Answers

Last week saw the second very successful GAAPweb Meetup. I was lucky enough to be able to attend, and speak to people about the accountancy profession in general, career moves, qualifications, the current market, etc.

I saw a wide variety of people, some of whom are facing real career challenges and who were in need of advice. Some topics we discussed/covered were the following, and if any other blog readers have advice/tips in these areas, please contribute!

Qualification level:

Q: It seems that there is a ceiling beyond which it is hard to be promoted without having a CIMA/ACCA qualification.

A: In my experience, this is the case. Financial Managers and even some Analyst positions don’t require CIMA/ACCA, however, for Financial Controller positions and above, it is often required (especially by bigger companies) that you have one of these qualifications or an equivalent.

Work Permit/Visa issues:

Q: I have been through many interviews which have seemed to be successful, in some cases I have even been called back for a second round, however, the moment the issue of sponsorship of my work permit comes up, companies seem not to be interested!

A: This seems to be the case, lots of companies do have issues with work permits. A general rule of thumb would the bigger the company, the more likely they are to be prepared to sponsor.

Changing sectors:

Q: Does changing sectors impact my ability to be promoted rapidly?

A: In my experience no. In fact, sometimes a change in sector allows you to experience new work practices/new methodologies that you can then apply in your new role. In an Analyst position, however, it can help to understand the industry you work in well in order to provide value added feedback.

Overseas qualifications:

Q: My overseas qualification does not seem to be recognised here. I am told always that I have to qualify again in the UK.

A: This is not my personal experience, I have a CA(SA) from University of Cape Town, and this has always been accepted here in the UK. It definitely pays to have a copy of your transcript available to show what courses you have covered in your degree.

Other than a head for numbers, what skills do I need?

It is actually very important for Accountants to have good interpersonal skills. They need to be able to communicate with people from all levels of the organisation.

These skills need to be both verbal and written. The ability to put together a clear, concise narrative and commentary is very important. In many cases, an Accountant will have a team reporting in to them, or be working alongside other analysts/managers. In these instances, being able to get on with people and gain their trust, while at the same time gleaning their respect, is important.

It is also common for Accountants to have to write commentary along with financial numbers. This may take the form of a key performance indicator analysis or a board report commentary on the monthly results. It is therefore essential to be able to express yourself, and a course in good presentation skills is very useful in this regard.

What can I do after accountancy? Where could my career lead?

A career in accountancy can lead you in many directions. By gaining experience of the industry you are working in, a General Management position is always a possibility.

It is very important to take time to understand the wider organisation wherever you work. It is all too easy for a finance person to focus on the numbers and detail, and not really understand the bigger picture of what the firm does.

But it is this knowledge that will actually help you to branch out of finance. Management of staff is an important skill, and is virtually essential to any position you move into outside of finance. Try to learn as much as you can from mentors and/or positions you hold before looking to move within the organisation.

A finance career can also lead to more commercial positions. Not all finance roles are about balance sheets/profit and loss accounts and reporting. It is possible to get into a commercial role, looking at products, pricing, distribution strategy, etc.

All in all, there is such a broad range of finance positions out there, from Analysts to Financial Controllers/Directors, to technical Group Reporting roles. All of these require different skills and experience and offer the candidate completely different challenges.

Crisis? What crisis?

I find it interesting that there is so much panic in the UK over the "credit crunch" and current financial difficulties. Virtually every free sheet carries some doom and gloom front page headline, when effectively things arent that bad!

To be honest, I view the current conditions as more of a correction of overheating in the past, than a long term downward spiral.

Certainly, house prices are falling, but then again they have been hugely over-inflated. Certainly, there is pressure in the banking and finance sector, but then again there has been a lot of over-hiring, and over-payment in that industry for years. Certainly, your average person will start to feel the pinch, but again, this is to be expected.

Generally, most people have a higher standard of living and far more security than a generation ago. We have started to take for granted the fact that overseas holidays, luxury goods, a private car are a part of life, whereas actually these are what they say on the tin - "luxury goods" - and have to be earned, without being essential to our survival.

In my mind the more important factor to take into account, and act on, is the rising oil price. This should be a warning to people of worse to come. I believe that the world's oil resources have peaked, and that in future the oil price is only going to go up.

Instead of panicking though, people should start to change their lifestyles. Drive less, drive more economically, make use of pooling arrangements, fly less, take more local holidays, etc. We should also start to change buying habits, for instance by buying local produce that is not shipped so far.

What people need to realise is that the oil price not only affects transport costs, but also food prices and many other goods/services that rely on oil. I also feel that this is indicative of increased energy prices that will soon be coming our way.

Again, instead of getting all upset about this, people should start to invest in greener technologies, take necessary measures around the home to use less energy, and put pressure on businesses that use excess packaging/ignore their impact on the environment.

As you may have noticed, I run the risk of getting into a whole "green" debate here. But effectively I feel that the only way people in general will start to take notice of the need to conserve the environment is when it starts to hurt their own pockets.

I certainly feel that we all need to be proactive in tacking climate change, and thus in some way I welcome these increased prices, even though of course I am the first to moan when I have to fill up my petrol tank!

I am certain there are lessons for us all in what is happening around us at the moment. Perhaps we need to reassess our values, and what is important to us. Instead of focusing on "a letter to the chancellor", let's focus on how to ride out this temporary "recession" and make some lifestyle changes that will benefit us all in the long run.

I've graduated - what should I do next?

Hi. I have recently finished university studying Accounting and Finance, and am unsure on what next route I should take to find a job. Any suggestions from anyone? One thing I am sure I want to do is carry on doing ACCA exams, but I also want to be working too.

It is generally a very good idea to continue after university and get your ACCA. This is especially the case if your exam results are good, and if you feel that you understand Accounting and Finance.

In order to get a job, you simply need to start applying! By that I mean, look for positions that meet your relevant qualification level. This may mean that you have to start off in a job that does not seem ideal to you, but hopefully, if you prove yourself, you will be able to move on quickly.

Try to pick an organisation with a big accounts function that allows you room to move. Alternatively, try to make a good impression in your job, so that you can later move up to a more challenging/higher paying position.

I recommend that you carry on your studies part-time. It often helps to be getting the practical experience whilst you study. Again, ask in your interviews if the firm you are joining supports studying.

What can I expect to earn? Are the higher paid jobs worth it?

Working in finance can be very lucrative. As with many professions, you have to work your way up, and should not expect to earn well in your first year or so in the workplace.

Your professional qualification will help. If you get your studying over with before seeking work, this will allow you to command a far higher salary sooner than others who are studying and working. By far the best paying industry is generally banking, however, with some of these jobs come long hours and lots of stress.

It is then up to you as an individual to decide what you want from your career. Personally, I would not want a job that interfered with my evening and weekend time. I am happy to work hard during the day, but want to be able to switch off, especially over weekends. Each individual needs to decide on the impact they want their work to have on their lives.

Some people believe that it is worth taking a high paying job for a while, before settling down into something more balanced. Other people believe that pushing your career allows for early retirement, but just remember, pushing too hard (and ending up with a heart attack!) may mean you aren’t there to enjoy your retirement at all…

Generally it is worth trying to progress your career, and not to stay in a job for more than two years or so ( I don’t mean necessarily change company, but push for an internal move or a new challenge). It is also generally the case that in order to make step changes in your salary, you have to change companies as opposed to expect pay increases.

I would recommend benchmarking yourself by using the GAAPweb salary survey, and see if you are being properly rewarded for your skills.

How much support can you expect when a job advertises study support?

Most companies will offer study support in one or both of two ways. Firstly, support in terms of time off for studies and secondly, financial support in the form of paying for exams.

As far as I am aware, the norm for a company is if they offer to give you time off for exam days as well as pay for the examinations. Generally, my company for instance, will also be flexible with timing of holidays, and not require overtime to be worked, in order to try and accommodate examinations.

The only other thing to look for is what “on the job experience” you will be gaining that will help you in preparing for the exams. I am a firm believer in understanding principles and concepts rather than simply rote learning things from a text book. If aspects of the work that you are carrying out day to day are also examinable, this will vastly help. It also helps with long term retention of the concepts instead of forgetting them straight after the exam.

If you can find a company where you are working in a team with other studiers/people who have recently passed the exams, you may be able to share experiences amongst yourselves.

How do I get a life/work balance before my exams?

It is certainly easier said than done to say that stressing before exams is actually counter productive. In fact, a little bit of stress is a good thing, it serves to focus the mind and create a sense of urgency around what you are doing.

In studying for financial exams, more than anything else, it is generally important to understand the work, rather than simply learn it by heart.

I am a firm believer that understanding principles and concepts rather than simply wrote learning them from a text book will actually help you more in the future anyway, as you will be able to recall these concepts far more easily.

Finding time to study in the evenings after work can be hard, but I recommend either going to the gym straight from work for an hour, or taking a jog or something to clear your head, and then setting aside an hour or so to concentrate on work.

If you are a morning person, getting up an hour earlier and using that time to study before starting the day can be very productive.

Take time out at work to think through the concepts that you are studying, and make sure you really logically understand them. If not, try to speak to someone at work, they can often explain things simply.

How do you know what the right company to work for is?

My last blog got me thinking about how hard it can be to decide which direction to take your career in so I thought I'd expand a little more on how company size might affect your decision when thinking about your next role.

In the world of finance, a lot of people believe that it is important to pick the right industry to work in. On the whole, I agree with this statement, it is definitely easier to work in a sector that you enjoy and can in some way associate with.

On the other hand, finance jobs are in the main similar across different sectors, and I believe it is in fact more important to find the right company/management team to work with. I believe there to be a big difference between working for a large corporate compared with a small start up business.

These larger businesses seem to be far more restrictive in their decision making, slower in their ability to implement new projects and far more hierarchical. On the other hand, training opportunities are often better, and a lot can be learnt from the more experienced executives you work with.

Smaller businesses generally offer a far more informal atmosphere, with more opportunities to be hands on. Staffing issues often become more important in these businesses, as they are reliant on core staff. It is generally easier to build relationships, and act on decisions. On the other hand, for a management team in such a business to be effective, they need to act together as a cohesive unit. When attending interviews it is important to meet as many people in the organisation as possible, to have a look at the office/work environment and form an opinion on the atmosphere around the company. For instance, if people seem unhappy or the office looks extremely disorganised, these are signs that the management team are not strong!