People say, time is a dressmaker specialising in alteration. This indeed holds true for the accounting industry. Accounting is leaping from perch to perch, rapidly evolving in line with modernisation and development of the corporate world. Accountancy 10 or 20 years ago paints a substantially different picture compared to now, and undeniably, various aspects of the profession has improved. This has come to incorporate culture changes, new areas, revamped regulations, etc.
Lets see how far we have come since 1989...
-Birth of forensic accounting
Forensic accounting was a major virtually unheard of until about 10 years ago. A fairly new field, it has become a fast growing discipline in accounting. The reason for the gaining popularity of this field is in light of the recent corporate scandals, leading to a requirement of proper grasping of situations before mergers and acquisitions or further development of companies. The U.S News & World Report has accredited forensic accounting as one of the eight most secure career tracks in America (February 8,2002) and SmartMoney Magazine counted it as one of its ten hottest jobs? For the next decade with a salary potential of over $100,000 (AccountingWeb US, May 16, 2002). A highly paid professional job, forensic accountants are well sought after for their invaluable skills to sniff out the rat in financial matters, be it the mishandling of assets, or investigating a suspected fraud. The pressing need for a proper understanding of what lies beyond the numbers makes forensic accounting a new niche among all accounting professions.
-Technology rebrands accountancy
Back then, accounting spans a workload of papers, manual clicking of calculators, typewriters, not forgetting the old version of the photocopier machines and dot matrix printers. Now, computer softwares replace the need for papers and calculators, and emails convey messages in a blink. Accountants are no longer drab and stereotypic with the emergence of technology. In contrary, the new image for accountants will lead you to imagine a street smart person, techno-savvy, with skill and expertise valued by society.
-Sarbanes oxley and corporate governance
World shocking corporate scandals such as Enron, Worldcom and Tyco International have spawned the Sarbanes Oxley act and also put coporate governance into the spotlight. Therefore, accounting now is more than just figure reporting compared to a decade ago. Numbers reported in the financial statements also speak volumes about compliance to the regulations on corporate governance. These enhanced standards only made its way to the public in 2002, giving an all new shift in the accounting industry worldwide, and also leading to a climate of regulatory red tape and bureaucracy.
-More women as accountants now?
The accounting industry now welcomes more women, as opposed to a decade back, where it seemed to be a men-dominated industry. A follow-up to a study on women in the UK accounting profession conducted 10 years ago was made at the end of 1989. The study entailed a survey of women and male members of the Institute of Chartered Accountants in England and Wales (ICAEW). Women now account for 10% of ICAEW membership, as opposed to 2.8% 10 years ago, and also account for one-third of trainees. In the future, women will be an important resource for the accounting profession as labor shortages come to the fore. The survey reveals that women in accounting are younger, more likely to specialize in taxation, and are more likely to work for a professional practice. Women accountants have similar careers to those of men until they have a child, after which their career is typified by a break in employment and part-time work. Work options women cite as being helpful for their careers include career-break schemes, parental leave, and childcare. (Silverstone, Rosalie, Institute of Chartered Accountants in England & Wales)
-Lifestyle changes
Accounting in its new form brings higher stress levels, where there are new challenges and deadlines to be met. Arrival to office is met by an inbox full of emails, added workload for the day, and a packed schedule of internal and external meetings. This is a far cry from the bygone days, where there are fewer regulations and even fewer regulatory bodies, resulting in lesser detailed technicalities and explanations to clients.
Lets see how far we have come since 1989...
-Birth of forensic accounting
Forensic accounting was a major virtually unheard of until about 10 years ago. A fairly new field, it has become a fast growing discipline in accounting. The reason for the gaining popularity of this field is in light of the recent corporate scandals, leading to a requirement of proper grasping of situations before mergers and acquisitions or further development of companies. The U.S News & World Report has accredited forensic accounting as one of the eight most secure career tracks in America (February 8,2002) and SmartMoney Magazine counted it as one of its ten hottest jobs? For the next decade with a salary potential of over $100,000 (AccountingWeb US, May 16, 2002). A highly paid professional job, forensic accountants are well sought after for their invaluable skills to sniff out the rat in financial matters, be it the mishandling of assets, or investigating a suspected fraud. The pressing need for a proper understanding of what lies beyond the numbers makes forensic accounting a new niche among all accounting professions.
-Technology rebrands accountancy
Back then, accounting spans a workload of papers, manual clicking of calculators, typewriters, not forgetting the old version of the photocopier machines and dot matrix printers. Now, computer softwares replace the need for papers and calculators, and emails convey messages in a blink. Accountants are no longer drab and stereotypic with the emergence of technology. In contrary, the new image for accountants will lead you to imagine a street smart person, techno-savvy, with skill and expertise valued by society.
-Sarbanes oxley and corporate governance
World shocking corporate scandals such as Enron, Worldcom and Tyco International have spawned the Sarbanes Oxley act and also put coporate governance into the spotlight. Therefore, accounting now is more than just figure reporting compared to a decade ago. Numbers reported in the financial statements also speak volumes about compliance to the regulations on corporate governance. These enhanced standards only made its way to the public in 2002, giving an all new shift in the accounting industry worldwide, and also leading to a climate of regulatory red tape and bureaucracy.
-More women as accountants now?
The accounting industry now welcomes more women, as opposed to a decade back, where it seemed to be a men-dominated industry. A follow-up to a study on women in the UK accounting profession conducted 10 years ago was made at the end of 1989. The study entailed a survey of women and male members of the Institute of Chartered Accountants in England and Wales (ICAEW). Women now account for 10% of ICAEW membership, as opposed to 2.8% 10 years ago, and also account for one-third of trainees. In the future, women will be an important resource for the accounting profession as labor shortages come to the fore. The survey reveals that women in accounting are younger, more likely to specialize in taxation, and are more likely to work for a professional practice. Women accountants have similar careers to those of men until they have a child, after which their career is typified by a break in employment and part-time work. Work options women cite as being helpful for their careers include career-break schemes, parental leave, and childcare. (Silverstone, Rosalie, Institute of Chartered Accountants in England & Wales)
-Lifestyle changes
Accounting in its new form brings higher stress levels, where there are new challenges and deadlines to be met. Arrival to office is met by an inbox full of emails, added workload for the day, and a packed schedule of internal and external meetings. This is a far cry from the bygone days, where there are fewer regulations and even fewer regulatory bodies, resulting in lesser detailed technicalities and explanations to clients.