Accountancy: Industry and Commerce

Posted on Sun, 09 May 2004 18:21:56 (1476 Reads)

GetSmaart guide to a career as an Accountant in the Industry and Commerce sectors

What you'll have to do

Industry and commerce accountants cater for all sizes of companies and their work falls into two areas:

Financial accountants do the figures and other stuff like:

• keeping and updating detailed records of a company's financial state

• making sure the finance systems are working right, including bookkeeping and VAT records

• producing financial statements every year as well as smaller statements every month or quarter

• providing the boss with correct figures for decision making

• checking you're making as much money as you planned you would

• checking the finances for any dodgy dealings!

Management accountants do most of the things above but are also involved in:

• management and strategic planning

• making sure the managers know what they can and cannot do with the company's money

• forecasting the costs, effects and benefits of buying new businesses or equipment or increasing staffing numbers

• reviewing existing systems

• suggesting ways to make more more money and cut costs.

How long you'll work and where?

Accountants in industry and commerce normally work the standard 35 hour week but be warned that when the end of year figures are needed you'll probably need to whack in some overtime, lots of it! Part-time work is usually available.

Yeah you guessed it - you work in an office. Overseas travel may be needed in some areas with multi-national organistaions.

What you need to be good at

To be an accountant in industry and commerce you should:

• have excellent numeracy skills

• have good lateral thinking and problem solvings skills

• be able to communicate with people

• be discreet and tactful

• good writing skills and be prepared to present to people

Qualifications to get started

Accountants with a recognised accountancy qualification can work in industry and commerce. A common entry route into the profession is with a degree in accountancy or related subject. Some degree subjects give exceptions from professional accountancy examinations. Information on exemptions can be obtained from professional bodies, universities and colleges. Accountants undertaking audit work must hold a recognised audit qualification from one of five recognised qualifying bodies:

• Institute of Chartered Accountants in England and Wales (ICAEW)

• Institute of Chartered Accountants of Scotland (ICAS)

• Institute of Chartered Accountants in Ireland (ICAI)

• Association of Chartered Certified Accountants (ACCA)

• Association of International Accountants (AIA).

Over half of all qualified accountants have chartered status: minimum entry requirements are typically three GCSEs (A-C)/S grades (1-3) including English and maths, plus two A levels/H grades or equivalent qualifications. There is no upper age limit for entry to accountancy careers. AIA has a mature students’ scheme for those over 21 years old with a minimum of three years' accountancy experience. ACCA has a similar route for those over 21 without formal academic qualifications, with relevant work experience.

For details of qualification equivalents see:

• Qualifications and Curriculum Authority (England, Wales and Northern Ireland)

• Scottish Qualifications Authority

An Access to Higher Education qualification may also be accepted for entry to certain courses. If experienced in a related field, you may be able to gain recognition of skills through Accredited Prior Learning (APL). Please check with colleges or universities for exact entry requirements.

Note:Some employers / job advertisements make reference to CCAB qualifications as entry requirements. The CCAB is the Consultative Committee of Accountancy Bodies, which is an advisory organisation made up of six professional accountancy bodies including some of those listed above. There is no CCAB qualification as such, however, reference to CCAB qualifications actually refers to qualifications awarded by the six professional bodies themselves. For more information on CCAB see contacts below.

Training availabe to you

The Chartered Institute of Management Accountants (CIMA) provides training at three levels: Foundation, Intermediate and Final level. Foundation level training requires three GCSEs (A-C)/S grades (1-3) including English and maths, plus two A levels/H grades or equivalent. Exemptions from some levels are available to holders of certain qualifications such as a recognised degree in business studies, business administration or accountancy. A list of entry qualifications and exemptions is available from CIMA. For full CIMA membership, students must complete all three levels and have at least three years' relevant practical experience. Courses are available part-time or via distance learning.

The Institute of Financial Accountants (IFA) training is also at three levels:
IFA training is also at three levels: Pre-Professional Level, Associate Membership and Fellow Membership. It is possible to begin studying at Pre-Professional Level before finding employment in the accountancy sector, but eligibility for associate level examinations requires five years' experience at senior accountancy level. Courses are available part-time or via distance learning.

Foundation and Advanced Modern Apprenticeships (MAPPs) may be available for people aged 16-24. For details see: MAPPs (England); Skillseekers MAPPs (Scotland); National Traineeships MAPPs (Wales); and MAPPs (Northern Ireland).

Opportunities in the area

Openings for accountants in industry and commerce vary according to the size of the city, and tend to be with large organisations. The demand for accountants in all sectors is growing and work is available in all parts of the UK. There are self-employment opportunities for qualified accountants.

Once qualified, it is possible to move between private practice, industry and commerce and the private sector to gain experience and to help career prospects. Those working for a large organisation may be offered transfers within the company to advance their careers. There are many openings for accountants in senior management positions.

Show me the money

Figures are intended as a guideline only.

• A graduate commencing training would earn in the region of £17,000 to £24,000 a year.

• A newly qualified accountant would earn between £24,000 and £30,000.

• A qualified accountant in a senior position could earn in excess of £100,000.