The GAAPweb blog

A future in the Public Sector?

It is safe to say, without raising too many eyebrows, that 2009 was not the most prosperous of years in terms of recruitment. However, in spite of the recession, working in the Public Sector seems to have taken on a new lease of life – and the early indications are that 2010 will be a far better, if not a ‘bumper’, year.

The Office for National Statistics (ONS) claims that public sector workers earn 7% more than their peers working in the private sector. Maybe it’s reasonable to assume that there might be other significant benefits working in the public sector. Despite the economy in disarray with numbers of vacancies distinctly lower, the shrewd candidate can turn that to his or her advantage.

Increasingly, people with a commercial background are looking for a new direction and, similarly, public sector line managers are favouring candidates with extensive commercial experience. As recruitment consultants, we are certainly seeing more and more candidates who are looking to join an industry that is selfless, yet rewarding. Despite the worrying plight that we find the economy to be in, candidates who posses strong, ‘in demand’ skills are experiencing first-hand the benefits that the public sector has to offer.

The ONS expects average annual earnings within the public sector to have hit £22,405 in 2009, compared to the average commercial worker reaching £20,988 – although we should be aware that this statistic is not specific to the finance sector.

However, the public sector has long been seen to offer other benefits, such as improved working conditions – an average working week of 35 hours is not uncommon – and the ability to take up a pension at the tender age of 58. For those with an altruistic streak, the most significant factor when working in the public sector is the ability to ‘give something back’; doing good for both oneself and others.

So what of the future of the public sector?

The public sector is arguably 12-18 months behind the curve compared to organisations within the industry. It is widely accepted that 2010 will be a tough year, particularly with a general election looming and a change of government a distinct possibility. In fact, it is almost certain that public deficit will be reduced with the help from cuts in public sector services, and this will have an inevitable impact on jobs. However, to reiterate an earlier point, those with strong experience and marketable skills will still be of interest to the public sector – perhaps more so now than ever.

Regardless of the political hue of any new government, we will see significant changes in the public sector. My prediction is that the next five to ten years will be more rewarding than ever for finance professionals in the public sector – particularly those who will take change by the scruff of the neck.


Nick Ross currently recruits finance and accountancy professionals across the Public Sector at WH Marks Sattin. For more information about joining an industry that is ultimately selfless yet rewarding, then contact anyone on the Public Sector team at WH Marks Sattin.

So, you want to work for a ‘Superbrand’

Companies that carry the titles Big 4, blue chip, FTSE or more recently ‘Superbrand’; aren’t these just different words for the same thing?

And how are such labels acquired? Scale? Delivery? World domination? Or is it just simply a measurement of annual turnover and profit?

The exact criteria remain a bit of an enigma. The Business Superbrands survey defines a ‘Superbrand’ as follows:

“A Business Superbrand has established the finest reputation in its field. It offers customers significant emotional and/or tangible advantages over its competitors, which customers want and recognise.”

With the ranking of PricewaterhouseCoopers (PwC) as one of 2010’s top ten Business Superbrands last month (in addition to its Big 4 status), what does it actually mean to work for such a company?

The most obvious (but still valid) answer is the weight it adds to your CV. Prestigious companies attract fierce competition, so if you manage to get offered a job, you’re likely to be the top of the candidate pack.

However, don’t miss out on smaller businesses just because they don’t pack the same ‘celebrity’ punch. There are plenty of opportunities at smaller accountancy firms and SMEs. You’re likely to encounter a greater variety of work and the opportunity to get to know people rather than masses of faceless names and email addresses.

Equally, you can dip a toe into other facets of business by working as an accountant for a company rather than a practice. Read about more career options on the GAAPweb blog.

Whether or not you decide to actively pursue a career with a prestigious company, you should always keep your options open. After all, a ‘Superbrand’ organisation is only as good as its employees.

The real value behind CPD (Continuing Professional Development)

Newly-qualified accountants are often eager to identify the quickest way to the top – whether they plan to work in public practice or for an accounting department within a large company. With no single clearly defined route, it can be a difficult path to identify. One thing is for sure: there are no shortcuts. You have to be prepared to work for it. However, there are ways to progress more quickly up the career ladder. 

As a starting point, draw up your CV the way you would like it to look in thirty years’ time. By analysing the skills, competencies and qualifications you will need to make these changes in levels of responsibility, you will be able to recognise the gaps to be filled along the way.

Career progression is not just about qualifications; it’s also about expanding your skill set and gaining experience. Many newly-qualified accountants choose to leave public practice firms (that specifically offer accounting services to other companies and individuals) much too early, instead opting to join a large industrial or commercial company with an accounting department. This is perhaps because they do not recognise that many of the skills acquired there during the first few post-qualifying years are valued just as equally in non-accounting businesses, such as manufacturing firms.

Whilst newly-qualified accountants obviously need the technical knowledge to do their job, they also need softer skills to help them integrate into each workplace and role. Professional bodies like the AAT have recognised the value of developing both technical and softer skills. For this reason, we place a strong emphasis on Continuing Professional Development (CPD), through which we encourage a combination of approaches, ideas and techniques to help our members manage their own learning and growth. Members are expected to keep themselves up-to-date with changes in regulations and reporting standards in their particular field, as well as reflecting on what other skills gaps they might need to fill. Without this combination of knowledge and skills, they would be less able to do their job efficiently, effectively and, most importantly, legally.

It is important to bear in mind that one member’s area of work will differ from another’s; that’s why we invite members to consider their own personal learning and development needs relevant to them, rather than advising members on what we think they ought to do. For instance, someone who works in a big government department will almost certainly have very different needs from someone who runs their own private accountancy practice.

For many accountants, the first real major shift in their career occurs the first time they move out of a pure finance function and into a multi-functional management team. An understanding of the techniques and objectives of the production, marketing and HR departments are all necessary to function at a senior manager level.

As one moves through the profession towards Finance Director types of roles, the focus is much more on looking at the bigger strategic picture and communicating that to others, rather than specific technical skills. For some, this transition will come naturally. For others, it is much more of a process of committed learning and development. One thing is apparent: developing skills and keeping yourself updated on changes within your sector will put you on the right path to professional success.   



Adam Harper has been Director of Professional Development at the AAT since February 2005. He oversees the development of services and support for members; maintains the quality and status of AAT membership; and represents views of the membership working in and on behalf of UK business.

Adam acts as one of the AAT's main contacts with Government and the profession's regulatory bodies, managing the AAT's engagement with HM Revenue & Customs, HM Treasury, Department for Business Innovation and Skills and the Financial Reporting Council.

What happens when you take the stabilisers off a bike?

For many, the letters V and W are synonymous with cars; for me, they denote the shape of this nation’s economic recovery. Some optimistic economic commentators and politicians would have us believe that we are out of the woods and that the worst is over. I am firmly in the W camp; I believe that that the UK will post a loss in the first quarter of 2010 and we will see a ‘double dip’ recovery.

Why so pessimistic? (I hear you ask). Surely all the banks have flushed out their bad debt? Aren’t house prices increasing every time you pick up a newspaper? Well, the UK is like a bike with stabilisers at the moment, and when the stabilisers come off not even Chris Hoy could ride this bike without faltering.

UK Plc grew by only 0.1% in Q4 2009, as reported by the BBC. I must admit that when I read this headline, I wondered how may times the figures had been counted as ministers searched for even the slimiest margin of growth.

Here are some of the contributing factors to a potential double dip:


Quantitative easing
QE (or the art of printing money to you and me) has propped up the UK for a number of months. Last week, the monetary policy committee cut off the supply of QE to the UK economy, and this, coupled with the European Central Bank’s upcoming withdrawal of its liquidity boost in March, highlights the deteriorating levels of liquidity around the world

Greek debt
We saw the Dubai debt crisis unfold at the tail end of last year. Many British (and some state-owned) banks had interests in the debt of Dubai World, and if it hadn’t been for Abu Dhabi offering a helping hand to its Emirati neighbour, then potentially billions of pounds of debt would have been defaulted on. This would have resulted in more write downs by UK banks. Greece is facing a similar issue, which is resulting in uncertainty in the entire EU. As I write, the Euro has slipped to a nine-month low. British holidaymakers might see this as a good thing, but the destabilisation of the European single currency will have an adverse effect on the whole region; a region which is Britain’s biggest export market.

Bad weather in January
Despite Alasdair Darling’s best efforts, Mother Nature always holds the trump card. The snow kept a lot of people away from the sales and out of restaurants and bars. It’s likely that the prolonged period of cold will have an adverse effect on some Q1 retail figures, reports Management Today on the effects on the high street. With more snow forecast, this could only exasperate the problem.

Stamp duty holiday ended
There was a flurry of activity in the lower end of the property market towards the end of 2009, as buyers tried to complete on home purchases before the stamp duty holiday ended. According to the BBC, twenty-three per cent more mortgage applications were made in December than in November. It’s likely that deals that should have been completed post-Christmas will have been brought forward to save the buyer paying the 1% tax. This – combined with the snow – has seen the lower end of the housing market get off to a slower start this year. Citywire reports that buyer enquires fell for the first time in 14 months in January.

Inflation v. wage freezes
Inflation rose at its fastest month-on-month rate in December 2009 since records began. Map that to wage freezes, and suddenly affordability is dropping across the UK. Unless the government can combat inflation, there will be a negative impact on the economy. One way to combat inflation is to increase interest rates – a move that could force thousands more homeowners into repossession. For this reason, interest rates will probably remain on hold in 2010 and low in 2011. This means that inflation will play a bigger part in unsettling our fragile recovery as affordability declines.

House prices
Everyone has an opinion on house prices: homeowners are hoping for a recovery; first-time buyers like myself are hoping that they stay low for the time being. As a recent first-time buyer, I was shocked to see that prices in London had started to go up by 0.5% to 1% per month. On further inspection of the market, the price rises are being entirely driven by a lack of supply of new properties, coupled with a decrease in output by home builders. It’s likely that when supply returns to the market, we will see a decrease in house prices.


So, even with all the stabilisers on the UK’s bike, we managed a carefully calculated 0.1% growth. I do not think that the UK will fall back into recession as defined by three consecutive months of decline, but I do believe that the UK will not see growth in Q1 of 2010, and it could be 2011 before we see two consecutive months of growth.



Dave Thomson is Product Manger at Trinity Mirror Digital Recruitment, overseeing sites such as GAAPweb and totallyfinancial. Previously, Dave has worked on technology projects for some of the world’s largest investment banks.

The Return of the ACA

You may remember Debbie McGee being asked in that famous interview: “So, what first attracted you to millionaire Paul Daniels?” For many ACAs, corporate finance is the ‘Paul Daniels’ of the career ladder, often seen as the road to riches. But, in reality, just how easy is it to get on to that ladder? 

We’re no strangers to this market, having placed hundreds of ACA candidates with dozens of corporate finance clients – right up until 18 months ago when the requests for these candidates dried up.

However, late last summer, we saw a dramatic return of corporate finance roles for ACAs – and since then, there has been a consistent increase in activity in this sector. But the story isn’t that straightforward: the roles do require more than just an ACA as clients are able to take their pick of the better-qualified candidates. In reality, that means that top-notch academics combined with experience in corporate finance, transaction services or restructuring teams are needed to even get an interview.

That said, this is a great indicator of improving market conditions, and we’re now seeing a significant increase in both the volume and the variety of these roles.

So, what career options does a transaction services ACA-qualified Big 4 candidate have in today’s job market? Is a move to private equity/fund management a realistic aim?
 
In previous years, there were a number of possibilities for newly-qualified ACAs within corporate finance and private equity. In fact, many years ago our Front Office team here at WH Marks Sattin started to proactively move the best ACAs into M&A, equity research and private equity roles. Unfortunately, during the past 18 months, similar opportunities for ACAs almost ground to a halt due to there being fewer roles and more available candidates with experience in these areas of the market.
 
However, whilst we’re now seeing requests for ACA-qualified candidates from some of the corporate finance boutiques, only the very best ACAs tend to be in with a shot. Clients know it's still a buyer's market, so are only asking to see the strongest ACA candidates with the sort of credentials I alluded to earlier.
 
Having qualified in TS in the Big 4, you certainly stand a chance of securing interviews for these roles, but we would need to consider your full background – taking a holistic view of you as a candidate – before giving more detailed feedback as competition is extremely tough. We've found that roles in private equity or fund management are extremely difficult for newly-qualified ACAs to break into, but a move into a good corporate finance boutique or one of the banks would give you a better chance of moving to the buy side once hiring in these areas picks up.


Simon Norris currently heads the Corporate Finance and Private Equity team at WH Marks Sattin. The team's portfolio of clients is ever-expanding and covers the largest banks and PE houses through to the smallest niche boutiques in the city.

Leaping from law to accountancy

Picture the scene: at various points in your life you’re given the task of identifying the ultimate job you want and why you want it. Easy – ice cream tester, because no one can tell you off for eating ice cream when it’s your job. Unfortunately, you are no longer seven and this answer is no longer viable. Your choices you could have made when you were eighteen seem a lot more viable: a banker, an engineer, an advertiser, a lawyer. However, with the current market these once viable options are just, well, no longer viable.

Professions are swamped, and with more people graduating every year competition is fierce. The option to just give up and settle for anything less you’re your ‘dream job’ seems like a rather grim path to follow.

I wonder who, at seven, eighteen or even ever thought that their dream job was to become an accountant. But just because it’s not been a consideration in the past, don’t let that put you off now.

I’m going to tell you now that my dream job was never to be an accountant. In fact, if I’m honest, it’s still not my ‘dream’ job, but that doesn’t mean I don’t love going into work every day, whilst making a reasonable living.

When I was fourteen I decided more then anything I wanted to pursue a career in law and started following up all possible routes. I took GCSE A-Level Law, packed in different work experience and got an LLB. I then became exam-qualified to practise as a solicitor, throwing in more experience on top of that, with clerking and paralegal work. Still no training in the area I wanted.
 
I was offered some admin work in an accountant’s office. Why not? After a couple of weeks’ work, the accountants suggested that I take the ACA and offered me a training contract. Not only would this mean even more exams (and I’d already done enough of those), but I hadn’t done any maths since GCSE level, and perhaps worse, was giving up on something that I’d been working towards for over eight years.

It took me a month to decide what to do, but I took the leap. Yes, it took a while to adjust, and studying after work is not always what I wish to be doing; it can be difficult and no, it’s not my dream job. But there are many advantages to a career revamp, particularly when the switch is into accountancy.

A career in accountancy doesn’t mean sitting behind a desk all day every day adding up figures. There are a wide variety of different roles: auditing; accounting; taxation; bookkeeping; and budgeting to name a few.

Then there are the different places you can work. Do you choose a large, glossy firm where you will specialise in one area, working for well-known names travelling over the country? Do you choose a medium-sized firm, where you can move through departments with varying-sized clients on different jobs? Or do you choose a smaller firm, where the work is more varied and less specialised and you become more intimate with smaller clients? There is even the possibility of not working for an accountants’ or auditors’ firm at all; businesses need internal accountants and this opens up even more career options.

Then there are the different qualifications: for most auditing and accounting firms in England the chartered route is popular, either through ICAEW or ICAS. For international firms, particularly European ones, the certified route is often preferred, and in the industry CIMA is the most-followed path. For a career in tax, there is the ATT or – if you dare – the CTA, thought to be one of the more difficult sets of professional exams. If you have a degree, then these are the commonly-followed routes. However, if you don’t then there is the AAT, which trains you in the basics and also gives you exemptions from other accounting qualifications once you pass.

There are also options of how you sit exams. Some people prefer to find work first, and then their employer will tell them which qualification they’d like them to gain, when the exams will be sat, and in what order. They will also pay for the courses and exams, which can be pricey. However, many firms will stipulate in a contract that you must pass the exams to continue employment, putting pressure on first-time passes. Other people prefer to have more control over their qualifications and when and how they sit exams. In this case, they either temp at different accountancy practices when they wish to work, or sit all their exams and look for a training position once the exams are complete. This option is sometimes favoured, as it means you do not have to work leading up to exam periods, meaning less stress and more time to study.

There is no right or wrong path to take, and no one but you can decide which path is best for you. What I’m saying is, there’s more to a career in accounting then often appears on the face of the job title, and if you look in the right places, then there are plenty of accounting jobs around.



Kim Grossman attended the University of Birmingham and graduated with a 2:1 LLB with Honours. She then completed the LPC at the College of Law, before working as a paralegal for nine months.

She currently works for Landau Morley LLP Chartered Accountants and Tax Advisers. She is part-qualified with the ICAEW and will take her three finals this summer.

FREE online workshop - Mature jobseekers: how to use your experience to your advantage

Do you feel your years of experience are holding you back in your job search?

If so, don’t miss our next online career workshop where we’ll give practical advice on how to succeed in your job search including:

• Structuring your CV;
• The types of roles to consider;
• Keeping up-to-date with technology;
• Key interview tips.

We will also be welcoming Martin Lloyd-Penny from Mature Accountants to answer your questions throughout the workshop.

This is a FREE workshop available to members and non-members of Workthing+ and is taking place tomorrow (Thursday 28th January) at 1pm GMT.

Click here to register for tomorrow’s FREE online career workshop. Spaces are limited, so reserve your seat now.

See you there!

Charities: a rosier 2010?

As we come to the end of a difficult 2009, the question on most jobseekers’ minds is the impending state of the employment market next year. I think we’re all in agreement that at the moment it is very much an employer’s market – but is this trend set to continue? Well, there just could be a glimmer of hope.
 
In the highly competitive job market we’re experiencing at the moment, skills such as change and crisis management, and cost-saving implementation will be paramount in working towards a more stable 2010.

Currently, the focus on recruiting for charities is on those roles that rely on income generation – that is, those that have an income target attached to their role. These are primarily fundraising roles; relationship-building with major donors and community fundraising are currently prevailing. So, what about finance professionals? This would seem to leave little room for the recruitment need for core financial professionals – the demand for qualified accountants seems to have taken a hit. Looking forward, what are the best ways of securing the right role in the not-for-profit sector in such a seemingly bleak market?

Whilst finance-specialist roles might not be sitting at the top of recruitment priority lists, those candidates with some decent exposure to fundraising aspects of charity finance will be valued, particularly those who can demonstrate some interplay with major corporate givers (or, for that matter, individual philanthropists). Exposure to the links between core finance functions and their intricate collaboration with fundraising teams will be prized. And it’s probably worth bearing in mind that such exposure could come from the donor – as well as the charity – side of the equation.

Furthermore, whilst ‘downsizing’ and ‘redundancies’ are terms frequenting many recruitment scenarios, the streamlining of processes, procedures and organisational structures are still prevalent, which is where the need for cost-cutting and money-saving comes in. Larger, international charities will be hit hard in the coming months due to the substandard exchange rate; their finances are going only a fraction as far as they have done previously in a more buoyant market. Consequently, there will be a focus on crisis management within finance functions and the need for financial expertise in this area will be in paramount. This will then allow these larger charities to focus more on development and capital expenditure looking to the future.

So, what of the New Year? I do think that glimmer will start to get brighter, so now is the time to start working on your own ‘personal brand’ or ‘sales proposition’. Work out precisely what will make you attractive to an employer and use that to develop a credible and compelling ‘package’.


Becky Postlethwaite currently recruits finance and accountancy professionals across the Public Sector at WH Marks Sattin. Her portfolio of clients is ever-expanding and covers the Charity, Housing, NHS, Local and Central Government and Education industry sectors.

Predicting our financial future

There’s no denying it: 2009 has been a difficult year for finance and accounting professionals.

This year, we’ve watched the banking crisis unfold on a global scale. Nowhere has remained immune; even Dubai has had to curb the spending of its monopoly money. But as countries including Germany, France, China and even the US start to show strong signs of recovery, it’s only natural for us to wonder: is it the UK’s turn next?

Another common theme this year has been the UK’s changeable financial forecast. We’ve heard varying stories about the state of business, employment and housing markets and whether or not we’re bouncing back to economic health or plummeting further into debt.

On a local level, CFOs everywhere are making predictions for what 2010 holds for their company. If anything, I think this year has taught us to expect the unexpected. I’d hazard a guess that the term ‘cautious optimism’ is flying around boardrooms everywhere.

Most of us are putting our faith in the latest industry news, with positive predictions for both accountancy graduates and Financial Directors.

As a very wise man once said (and I’ll take the liberty to paraphrase), it’s probably not the beginning of the end of the UK’s financial rollercoaster ride, merely the end of the beginning. At least we’re all better prepared for what next year will bring.

January is a great opportunity to start afresh and bring your ideas to a new role. From all of us here at GAAPweb, we’d like to wish everyone a Merry Christmas and a prosperous New Year.

What happens when you drop a piano on an accountant?

Seems obvious doesn’t it?

The comedic potential is hilarious. I can’t resist referring to Laurel and Hardy’s ‘The Music Box’ (still available). As onlookers, we can share in the anticipation of what’s going to go wrong, appreciate the ineptitude of the clueless clowns and enjoy the catalogue of catastrophic outcomes – thanks to the director, scriptwriters and excellent actors.

So what does happen when you drop a piano on an accountant?

Freeze frame the image and now let me put you, an aspiring thespian accountant, in place of the character. What would you like to see happen? What outcomes could there be, and which would you select?

In the original script, the poor unfortunate is walking along the pavement. He or she is unaware of their surroundings, assuming all is well and possibly doing their best impression of Flat Stanley. Great comic drama! Congratulations, you’ve made the celebrity listings.

This time, imagine a different script. The accountant is walking down the same street and under the same piano. They see the mishap about to occur and take spectacular avoiding action. They survive, heaving a sigh of relief. Great dramatic impact, maybe some humour and a heroic outcome. Hearty congratulations for a magnificent performance. You are now an all action hero who has hit the celebrity ‘A’ list.

From the inexhaustible ranks of accountants comes yet another! They saunter down the same street, see and assess the situation from a distance and walk up to the workmen trying to raise the piano to their client’s apartment. Quickly establishing a friendly rapport, the accountant ascertains why they have chosen the particular method of raising the piano. This is followed by a series of practical suggestions designed to make life easier and safer for all concerned. Not very good screen material, this. No drama, no celebrity status and a feeling of having been short-changed with the script.

So what does a piano dropping on an accountant have to do with anything?

While onscreen comedic catastrophe is highly amusing, its roots are often found in tragic reality. Again, in reality, it is the individual who achieves the most effective solutions who is the more impressive of the two. It is this individual who gains the accountant ‘A’ list status. Which of those accountants would you climb Everest with? The first is to be commiserated with. The second is to be congratulated for having sufficient anticipation to take avoiding action. The real hero is the one who not only avoided harm but who went out of their way to make the situation safer and easier to achieve for everyone else.

In the world of recruitment, it is easy to understand which accountant an employer would select. In the light of this, candidates should consider which of these three accountants they might be perceived as. It follows on from this that you should give some thought as to what actions you can take to add value to your role and organisation. These can also be used to demonstrate your potential to a future employer.

Chris Cutting, of Chris Cutting Recruitment (CCR), has several years experience in accountancy recruitment at all levels. His career spans working for both national and regional recruitment consultancies in the Midlands and establishing two regional consultancies servicing the M5 and M4 corridors. The one constant throughout his career has been to provide a tailored and personalised service to clients and candidates.