Careers Advice for Accountancy and Finance Sectors

The recent Enron scandal in the U.S. has raised public awareness of the accounting and finance profession. Such scandals are few and far between, but the roles of the professional accountant and finance officer continue to provide a much-needed service to managers, directors and shareholders.

With the advent of sophisticated information systems their roles are moving from mere numerical analysis to those of advisors, mediators and project managers. Careers within accounting and finance provide excellent opportunities for both professional self-development and the skills to move into either general management or entrepreneurship.

In the U.K. accounting and finance are often taken together as they both relate to the numerical analysis of money flows. However, they are different. Accounting relates to the use of accounting data to make economic decisions, whilst finance relates to the analysis of data available on financial markets, including the London stock exchange. Hence the former is organisationally bound and the latter market based. The U.K. accounting profession is represented by various professional bodies including; the Chartered Association of Certified Accountants (ACCA), the Chartered Institute of Management Accountants (CIMA), the Institute of Chartered Accountants in England and Wales (ICAEW), and the Institute of Chartered Accountants in Scotland (ICAS). All the bodies are recognised by Royal Charter but they do differ in their origins, history, and place in the accounting community. An easy classification is that CIMA members are trained to consider internal organisational issues, hence the reference to ‘management’ whilst the two professional institutes train individuals to perform audits, taxation work, and accounting for legislative requirements. ACCA is somewhat of a hybrid body, training its members to cover both aspects of the accounting role.

The finance profession is much less regulated in terms of entry, although there are some very specialist professional bodies including the Institute of Actuaries and the Association of Corporate Treasurers.

Many entrants into the field of accounting and finance do so by way of a degree in these fields of study. Alternatively, the professional bodies do provide a route for non-degree entrants including that of the Association of Accounting Technicians (AAT). There are degrees in accounting and finance offered by various universities, but few in finance as a specialism. Even the same named degree will vary from university to university. In many of the ‘old’ (pre-1992) universities the curriculum is often linked with the study of economics from which much accountancy and finance can be sourced. Some ‘new’ (post 1992) universities are more likely to base their degrees in a broader business and management agenda, with others having degrees that reflect the requirements of the professional bodies.

Finance degrees are generally heavily influenced by economics and can be highly mathematical in nature and useful for careers in financial analysis within City organisations. However, there are degrees in financial services which are broader in approach and useful for careers in the banking and insurance industries.

Regardless of university, most accounting (and finance) degrees gain exemptions from professional body examinations and hence form a sound basis for a career. Entry qualifications vary but the vast majority require good grades in GCSE Mathematics and English in addition to specified A and S level passes.

If you decide to pursue a career in the field of accounting and/or finance you need to think about some basis issues, including the following:

• Do I wish to pursue a degree course, if so, what field?
• Do I wish to study full-time or part-time?
• Do I wish to take an initial qualification (e.g. AAT) prior to degree or professional studies?
• Do I wish to study for one of the chartered professional bodies after A levels?

The various professional bodies and Universities have excellent web sites about their study programmes. They, like this journal, are natural starting places to commence your enquiries.

Article contributed by University of Hertfordshire business school