Accountancy and Finance

A Career Guide for Accountancy and Finance students

This guide has been produced to assist students considering a career in the accounting and finance sector to effectively plan their route into their chosen role.

Contents:

What skills have I gained through my Degree?

What skills will I need to succeed?

Postgraduate Studies

Career Profiles Accountancy Banking / Finance Insurance Insurance Underwriter

Other Finance Related Careers

Alternative Careers for your Finance Degree

Sector Related Websites

Careers Support at UEL

What skills have I gained through my studies?

‘Graduates entering the profession are expected to be not only ‘good with numbers’ but also be team workers, communicators and have management potential. There are different accountancy qualifications (ACA, ACCA, CIMA, CIPFA, ICAA, ICAS), and employers tend to fund their graduate recruits while they work and study towards these. Not all qualifications are internationally recognised’. Source Warwick University Website

NUMERACY - the ability to understand, manipulate and make use of numerical and

statistical data COMMUNICATION SKILLS, both written and oral, developed through essays and seminar

work An insight into BUSINESS procedures, the nature and functioning of organisations, and the

commercial world in general ANALYTICAL ability: the habit of critically examining information before accepting it A METHODICAL approach to your work, involving logical thinking and attention to detail

To these can be added your own personal skills and interests developed through out-of-class activities: social and interpersonal skills, responsibility, leadership, teamwork, time management The technical path ‘The role and career of the accountant is constantly changing and accountants now have two distinct career paths to follow - technical or commercial. For those who choose the technical path, employers require finance professionals who are up-to-date with changes in accounting procedures and legislative developments. Undertaking specialist courses on subjects such as financial reporting, regulation, IT, tax and IFRS will help. Chris McCarthy, director at Hays Senior Finance, says: 'Professionals wanting to specialise in technical accountancy may also want to focus on risk and compliance as there is a real need for individuals who are able to predict and manage risk within a business'. Source: ACCA Careers.com What skills will I need to succeed? Industry awareness ‘There will continue to be a requirement for professionals who can anticipate future business developments and financial trends across the globe. Careers in accounting are changing and as a result an increase in business transformation outsourcing and shared services has been seen, areas which are set to become even more prominent in this economic cycle. Another trend likely to increase is in mergers and acquisitions once the markets recover fully.’ Source: ACCA Careers.com More importantly, the need to be savvy when it comes to how the sector is changing and the skills required to meet that change requires, not just local and national industry awareness but also what is happening on the global stage. The all-round package ‘Within financial services, accountants with an eye-for-detail and excellent communications skills are sought after, while more banking and investment management businesses are now looking for strong financial products knowledge. Most financial services organisations are focusing on growth, which is driving new levels of activity and pushing up revenues. As internal teams demand better service from accounting departments, employers will ensure they stay one-step-ahead of their competition by hiring accountancy staff with a genuine knowledge and passion for the building blocks of the organisation. 'No longer can people 'make-do' with just being good with the numbers - accountants now need to have the all-round package', says Richie Holliday, COO, and Morgan McKinley.’ Source: ACCA Careers.com

Companies are keen to employ interns who have exemplary problem solving abilities and who can interpret financial conundrums and offer up ideas and solutions. Interns must some level of creativity in a sector if they want to exceed in this sector. Audit and compliance skills ‘Accountants specialising in audit and compliance will see increased opportunities as companies take steps to ensure they remain in line with enhanced regulatory requirements. Phil Sheridan, managing director for Robert Half UK, confirms:’ In a recent global survey, we found 25% of UK finance leaders reported difficulty in filling audit positions, while 14% were having trouble securing compliance skills'. Source: ACCA Careers.com The top skills required within this profession are exemplary organisational skills as an auditor deals with several departments on several projects, all usually with tight deadlines. Good Problem solving and attention to detail skills are required, as reports need to be accurate and decipherable. Like in most sectors, communication skills are of utmost importance as reports and projects are often relayed to the most senior employees via a presentation. Product and valuation control ‘The investment banking market remains short of qualified accountants, specifically in product and valuation control - functions that many global investment banks are increasingly locating in countries such as Singapore. 'Those with leadership, people management, and directional experience are especially sought after in both business-as-usual and change/project management functions,' confirms Andrew Shaw, Senior Consultant at Morgan McKinley Singapore’. Source: ACCA Careers.com International work experience ‘Across commercial organisations, employers often look out for professionals with international work experience. 'As recovery from the global financial crisis continues - many commercial businesses are concentrating more and more on the next phase of their organisational growth - and this is (inevitably, although not exclusively) linked to overseas trade', explains Richie Holliday.’ Source: ACCA Careers.com Therefore, keeping up with world events is mandatory, as this has a profound effect on the global financial market. The need to adapt and apply innovative solutions to an ever evolving world will require up to date and relevant knowledge this can be sought from financial magazines and journals See http://www.onlinenewspapers.com/magazines/magazines-business-finance.htm In the UK the Financial Times http://www.ft.com/home/uk and the Economist http://www.economist.com/ are still seen as the bastion of financial news reporting, whilst in the USA the Wall Street Journal http://www.wsj.com/uk Is the go to publication for business and economic news Commerciality ‘Commerciality within the finance team takes several forms, all of which orbit around a central concept about understanding the wider business and using that understanding to play a more active role in the commercial and strategic decision-making process. 'The credit crunch and ensuing global recession were the initial drivers for finance to take on a more central role in the organisation, but demonstrating greater commerciality will enable these 'gains' to be consolidated in the longer term', believes Phil Sheridan’. Source: ACCA Careers.com

Knowing the basic commercial principles of how a company is run financially is also important. What’s the difference between and private and public limited company? Why do some companies thrive, especially in tough financial times and why do some companies flounder. Knowing what economic factors affect a company’s fortunes and offering up innovative ideas and solutions will is what will make a Finance Graduate succeed in this sector Finance business partners ‘Many observers are reporting an increase in demand for finance business partners in the current economic climate. Companies need partners who have the skills to execute new strategies and make the changes required. 'These professionals need to have a strong track record of utilising both their management and technical skills. Primarily, they will have strong communication skills as the role requires them to work closely with business leaders across the organisation', adds Chris McCarthy. There is an ever-growing emphasis on providing meaningful management information to support corporate decision-making’. Source: ACCA Careers.com 9 Communication skills ‘Companies of all sizes and sectors are looking for finance and accounting staff with strong communication skills. 'As accountants are increasingly working on project teams with various departments, the ability to communicate financial information to non-financial audiences has become a highly valued skill set', reports Phil Sheridan’. Source: ACCA Careers.com

The ability to assess a company’s financial standing and to create accurate and details reports are skills which most successful financiers possess, along with the ability to relay these findings in a clear and concise manner. The ability to demonstrate sound presentation and after more experience, and to be able to pitch ideas will be required. 10 Are you stable? Changing finance and accounting jobs every year can be a disadvantage as employers are looking for good CV stability and a career that has progressed well. Tricia Liverpool, associate director at Morgan McKinley Singapore, confirms: 'As the finance jobs market continues to recover from the global financial crisis, businesses are looking to grow both strategically as well as operationally. Ensuring they source the very best talent is crucial and they are unwilling to sacrifice quality.' Source: ACCA Careers.com A passion for detail. An accountants accuracy and attention to detail is of utmost importance, failure to display this can ruin reputations and prevent one from flourishing within this sector. Reporting inaccurate or misleading figures will lead to mistrust in the accountant responsible and reflect badly on the company they represent. A love of solitude. The ability to work successfully with a team is important and ensures the success of a company. However working independently is often the way successful accountants work, quietly and with no distractions, in order to produce ‘that accurate report’. Therefore you must be able to work in solitude and enjoy your own company! A thirst for knowledge. ‘Accountants must constantly learn new information. This is particularly true of tax accountants, since tax laws change constantly. Are you the kind of person who is always seeking out new and better ways to do things? If so, keep reading’. Source: ACCA Careers.com

Financial conundrums, require accountants to seek out new and innovative ways of improving a company’s financial fortune, ensure you wear your ‘creative hat ‘as well as applying your financial knowledge to any given task Advanced Computer skills. ‘Today, virtually all accountancy work involves working with a number of general and specialised computer programs. If you’re good with computers (starting with a calculator), and can quickly learn new programs, you should be able to excel in this sector.’ Source: ACCA Careers.com

The ability to produce accurate and details reports on spreadsheets and knowledge of software such as Lotus 1-2-3 is essential. Also ensure you are ‘au fait’ with Excel and implementing formulas which can build in numerical ‘what if ‘scenarios. Another ‘must have ‘is knowledge of programmes such as Sage, QuickBooks and Accountability Higher Mathematics. Basic accountancy, such as simple bookkeeping, involves the kind of maths you learn in school: addition, subtraction, multiplication and division. But to advance in this field, you’ll also need to master higher mathematical concepts such as fractions, algebra, statistics, mathematical modelling and, to some extent, calculus. ’ Source: ACCA Careers.com

However, strong analytical skills are required, the ability to interpret data in an accurate manner is as important as strong mathematical abilities. You will need to have a working knowledge of accounting theory and practice. Laws, rules and regulations. Much of business and tax accounting involves working with various rules imposed by the city, local and national government. It’s crucial to not only know these regulations, but to stay current on any changes. Source: ACCA Careers.com Postgraduate Study ‘The percentage of Accounting and Finance graduates continuing into full-time postgraduate study is under 10% - about half of the figure for graduates overall. Most will study for a professional accountancy qualification through part-time study while working rather than a Master’s degree. Higher degrees in Accounting and Finance tend to be academic rather than vocational, although there are exceptions such as the MSc in International Securities, Investment and Banking at the University of Reading. Graduates who not wish to follow a finance-related career may consider a general postgraduate business degree, such as the MBA; however, as noted above, many graduate employers are happy to recruit Accounting & Finance graduates into general business functions straight from their first degree.’ Source: University of Kent website UEL offers a Post Graduate Course in Financial Management, International Accounting and Finance, to name just a few further study options. Most companies will employ graduates with a good first degree, however, a Master’s Degree will often offer up more opportunities and allow one to fastback on certain graduate programmes Accountants are expected to complete an ACCA, ACA, or CIMA, which are professional accountancy exams which indicate you have become a fully qualified (chartered) accountant. Qualifying as a fully qualified accountant raises ones employability status amongst financial institutions and proves to them that you have an in-depth and specialist knowledge of the sector.

Careers Profiles Accounting and Finance Accountancy

What do do I need to be an Accountant? GCSEs required You will need at least 5 GCSEs with good grades, including a good grade in maths. A-levels required Again this will depend on the course degree you want to do, but generally you will need at least two good A-levels one of which must be maths. Degree or further educational requirement You will need a degree in a business related subject Professional Body You will need to undertake accountancy exams with one of the following three bodies: • The Institute of Chartered Accountants England and Wales www.icaew.com • The Chartered Institute of Management Accountants www.cimaglobal.com • The Association of Chartered Certified Accountants uk.accaglobal.com • The Institute of Chartered Accountants of Scotland ICAS www.icas.org.uk • Chartered Institute of Public Finance Accountants CIPFA www.cipfa.org.uk How long will it take to get qualified? It will normally take another 3 or 4 years to get through your accountancy exams - after taking a degree. You can take time out between the various exams, so it may take even longer than this. There are an estimated 250,000 accountants in the UK Typical salary £35,000 to £45,000 Useful websites Accountancy Age www.accountancyage.com Certified Public Accountants Association www.acpa.org.uk Accountancy careers information available for aspiring trainee accountants. www.insidecareers.co.uk/professions/chartered-accountancy/ ‘You will either need to qualify with one of three main bodies outlined below, or you will need to do a lower level course such as the Accounting Technicians (AAT) course, the work your way up via training. • The Institute of Chartered Accountants England and Wales (ICAEW) www.icaew.com ACA stands for Associate Chartered Accountant. This leading business and finance qualification is highly regarded worldwide due to its quality and professionalism. On completion, you can become a chartered accountant in industry or practice, giving professional advice and making high-level strategic decisions. On completion it could lead to a career in any of the following: • Forensic accounting • Audit/assurance

• Business recovery/insolvency • Corporate finance • Financial accounting • Tax advice It qualifies you to sign off audited accounts for other businesses, and it also good if you want to be an accountant or finance directory for a company, • The Chartered Institute of Management Accountants (CIMA) www.cimaglobal.com allows you to run the accounts of a business or be a finance director, but you are not certified to sign off audited accounts of another businesses, • The Association of Chartered Certified Accountants (ACCA) uk.accaglobal.com allows you sign off audited accounts of another business, but you are not necessarily trained to be a company accountant or finance director, although often this does happen. People in the UK who want to train as a Chartered Accountant can do so not only with the ICAEW, but also with ICAS - the Institute of CAs in Scotland or CIPFA - the Chartered Institute of Public Finance and Accountancy. • ICAS is not limited to Scottish firms and many England based students get this qualification through the major firms. The website is www.icas.org.uk • CIPFA is the qualification for people specialising in the public sector. On qualification people become a Chartered Public Finance Accountant the website for CIPFA is www.cipfa.org.uk ‘A career in accountancy is all about helping organisations, from small charities to global businesses, and individuals to manage their finances so as to comply with relevant legal regulations and plan appropriately for the future. It’s possible to train and work as an accountant in three main settings: within an accountancy firm that provides services to external clients, within the finance department of a public sector organisation and within the finance department of a commercial organisation. A career in financial management involves reporting an organisation’s financial results over the course of a year and analysing them to see in more detail how different parts of a business are performing.’ Source: Target Jobs

‘Doing an internship could help you to focus your ideas about possible career directions. If you don’t manage to get an internship though, think about how you can sell any work or voluntary experience you’ve had – you might be surprised by the skills you have already developed’ Source: Target Jobs

Banking / Finance What skills and attributes do you need to get into banking?

‘Retail banking (the provision of financial services to individuals and small businesses) covers not only the traditional high-street banks and building societies but also supermarkets, insurance companies (e.g. Prudential’s Egg) and other companies such as Virgin. Corporate and investment banking involves advising major organisations on mergers & acquisitions, flotation’s and financial strategy. Graduates are recruited into areas such as analysis, customer liaison and dealing. Entry at graduate level is relatively small and highly competitive – opportunities may be greater for qualified accountants’. Source: Kent University Website

Many High Street banks offer graduate programmes, but don’t limit yourself to these institutions, look at investment banking as well for a career option. There are other graduate/ trainee positions within the banking sector such as: Stock Broker Banking Analyst Graduate Market Analyst Hedge Fund Analyst Trader Risk Analyst Key skills and attributes you need if you want to excel in banking. You thrive when competitively challenged ‘Working in the Banking and Finance industry tends to be fast-paced, competitive and challenging. Obviously the level of pressure can vary depending on which area of the industry you are based in. However, whether you're a front office trader or ensconced in the back office domain making sure everything works how it should, most people entering this sector love a challenge. Day to day, you'll be surrounded by people who relish working in a global sector that drives so much of our economy. The industry is littered with confident, dynamic minds who thrive in tackling the daily challenges the sector throws at them’. Source: Bright Network

You enjoy problem solving & have a head for numbers ‘Whilst you do not need to be a mathematical genius, working in this sector does mean you'll spend a lot of time handling, crunching and thinking about numbers. Even if you're in a marketing or client relations role, numbers are at the heart of Banking and Finance. You'll need to be comfortable with dealing with them on a day to day basis - be that handling the nuances of a particular deal, mastering a set of financial accounts or communicating their impact to a potential client or existing customer. .’Source: Bright Network

You are analytical and logical If you're analytical and logical you have the kind of mind that graduate recruiters look for when recruiting top talent into banking and finance. While of course such skills can be honed and finessed over your career years, it is highly likely that you will be tested on this at the application stage - usually in the guise of psychometric tests. You'll also be someone who is not unnerved by seemingly impossible-to-answer interview questions such as: 'How many people fly in and out of Heathrow every day.' Like everything else however, you can train your brain to be more analytical and logical - regardless of what you have studied. List of UK Professional Association / Banking Bodies - http://en.wikipedia.org/wiki/List_of_professional_associations_in_the_United_Kingdom UK Banking Bodies http://www.uknetguide.co.uk/Finance/Banks_and_Banking/Banking_Organisations.html . Source: Bright Network

Insurance

The insurance industry helps businesses to protect themselves from risk, and provides a wide range of services to consumers, including car and house insurance, pensions, life cover and savings. Modern insurance began when clients at Lloyd’s café in London (est. 1688) would make bets on the chances of ships returning safely from voyages, and the owners of ships started to make bets against their safe return in order to hedge their risk. Jobs include pitching to and taking care of clients, calculating risk premiums or processing claims. There are also niche roles such as loss adjusting and reinsurance. The UK insurance industry is the largest in Europe and the third largest in the world, accounting for 7% of total worldwide premium income (source: Association of British Insurers). As a broker, you’d be dealing with clients on the phone and face-to-face, often spending a considerable amount of time in client meetings and at events, so you will need to be a great communicator and have a gregarious personality.

Insurance Broker / Account Executive As an Account Executive you are likely to spend much of your time consulting with clients about their insurance needs. Once you have a good understanding of the requirements of your client, you will need to consult a number of insurance providers to ascertain whether or not they would be interested in providing a policy. Your discussions with insurance providers are likely to involve negotiations regarding the price of the policy as well as its terms and conditions. Whilst a lot of conversations can be conducted over the phone, you may also be required to meet with clients or insurance providers personally. Many of your meetings are likely to be with insurance underwriters (whose role involves the assessment of the risks associated with offering insurance cover) as the terms and conditions of policies are generally based on their assessments. It is also likely that your employer will expect you to attend networking events in order to build relationships which may help to secure future business. In order to get the most out of these events, it is important that you are comfortable in social situations and able to make a good first impression. Salary ‘An entry level Account Executive can expect to earn up to around £22,000 a year. Those who enter through a graduate training scheme are likely to earn more – usually around £30,000. Your salary is likely to increase as you move on to more senior positions, and experienced insurance brokers may earn as much as £100,000’. Source – Myjobserach.com To determine whether the entry level salary of 22k is enough to live on use a salary calculator (http://www.thesalarycalculator.co.uk/ ) , but also think of long term career and what financial rewards that will bring

Insurance Account Executives can expect a typical working week: most will be asked to work Monday to Friday from 9-5.30. Much of your time will be spent in the office, but it is likely you will also leave the office to attend meetings with clients or insurance underwriters.

Experience ‘If you are seeking an entry level position in insurance or a place on a graduate training scheme, you will not necessarily require insurance related experience. Many employers offer on the job training and provide opportunities to study for qualifications. If you have not worked in insurance before, it is a good idea to think of examples of times during which you have demonstrated the necessary skills for the job. Employers will expect to see evidence that you will be able to communicate well with clients and will have the confidence to negotiate a good deal on their behalf with insurance providers.’ Source – Myjobserach.com

The skills required to work in insurance are varied but do include:

Good Customer service skills, ensuring that the needs of the client (s) and met and that enquiries and complaints are dealt with in a timely and professional manner

An in-depth product knowledge of the goods and services on offer in terms of insurance

Good technical Knowledge of insurance goods and services and the legal compliances that are incorporated in them

Good listening skills – knowing what the customer wants and what your company can offer

Employers

Large Companies – the websites of individual companies are the best places to find information about vacancies and graduate training schemes.

Small, independent brokers – vacancies will usually be advertised in the local press. You may also be able to find work through recruitment agencies.

Career Progression ‘As Account Executives gain experience, and possibly CII qualifications, they may become eligible for more senior positions and management roles. You may also choose to specialise in a particular type of insurance. There is also the possibility of moving into other areas of insurance work, including underwriting. Insurance underwriters often specialise in a particular area of insurance and focus on analysing the risks associated with providing particular insurance policies. They are often involved in determining the cost of policies, as well as the terms and conditions. Another possibility is Account Management, which is more oriented towards sales. In this line of work, you would spend much of your time lobbying insurance brokers to opt for your company's policy on behalf of their client.’ Source – Myjobserach.com

Insurance underwriter

Average Pay Scales

‘Large composite insurance companies are growing ever larger through mergers and takeovers, often on an international scale. Graduates are recruited into areas such as actuarial work, customer services, accounting, broking, investment management, underwriting and claims work. Other graduates enter via clerical or call centre positions which may get them onto the first rung of the ladder to move up within the organisation.’ Source University of Kent website

Other finance-related careers These may include stockbroking, corporate treasury management, tax work, IT in the financial sector, company secretary, solicitor, financial information services and pensions management.

Alternative careers using your finance degree ‘There are many other occupations which Accounting and Finance graduates can enter: over 40% of graduate vacancies are open to graduates in any degree discipline. A further 10% may specify a numerate or business-related degree, increasing your opportunities still further. Some careers open to graduates in any subject, where Accounting and Finance graduates may be able to successfully apply the skills mentioned earlier, include:

Advertising Civil Service Computing Law Library and Information work

Management Services Market Research Personnel Retail Management Purchasing.

In the longer term, qualified accountants can and do move into many areas of business, management, finance, sport, media and the public sector. For further information on careers for Accounting and Finance graduates, see Prospects.ac.uk http://www.prospects.ac.uk/options_acco untancy_finance.htm Source – Prospects

What are the different areas of work? There’s a wide range of disciplines to choose from and within each there are different kinds of roles on offer. Commercial finance Corporate finance Corporate recovery Corporate treasury Financial accounting Forensic accounting Internal audit Management accounting Professional services IT Public sector accounting Risk assessment Assurance Tax Sector Related Websites

http://www.insidecareers.co.uk/professions/chartered-accountancy/ Support at UEL

Take a look at our rich array of career resources to help activate your career journey - http://www.uel.ac.uk/eet/students/plan/. From the first step towards making a career choice that is right for you, to the next stride which enables you to develop and evidence many of the core competencies and aptitudes that graduate employers expect via our volunteering, mentoring and internship opportunities to the final

interview preparation stage, we can help you move ahead at the pace that is right for you. If, you engage with us. Want to talk through your options and how to prepare to get to where you want to be? Book an appointment with the Careers Consultant for the School of Business and Law: Andrea Popeau Thomas: a.popeau@uel.ac.uk