Accountant Key » Your Key To A Bright Financial Career

   If you are reading this article, you most probably would have made up your mind on choosing this profession as your career. It is imperative that you discover your passion while in the learning stage so that you can develop a set of objectives to give your career a definite of purpose. After dedicating so much time and effort to obtaining your prestigious qualification, surely you do not intend to remain as an accounts clerk for the rest of your life. There is a plethora of opportunities for you to fulfill your self-actualization needs once you have discovered your passion in this career. Hence, this article will give you a brief introduction to what you can do as an accountant, with hope that you will discover your interest.

(a)  The Big Four-The right place to start?
           Green accountants usually start by becoming a junior auditor in either of the Big Four firms i.e. PriceWaterhouse Coopers, Ernst and Young, KPMG and Deloitte Touche Tohmatsu. Being part of the best allows young graduates to gain valuable experience as well as apply what they have learned in a guided environment. The first three years spent is an important transition period from books to reality and should not be taken for granted. It not only allows you to adjust your bearings but also to discover your passion and determine your direction.

i.    Specialization-To what extent is it beneficial?
            As the Big Four firms dominate all the industries i.e. banking, manufacturing, logistics, oil and gas etc, it is best for you not to specialize in a particular industry but to be flexible and gain as much knowledge and experience in every sector. However, if your career objective is to climb the management hierarchy in the firm, then you should consider specialization so that you can be promoted accordingly till you reach partnership. Nevertheless, it is never a mistake to get a share of experience in every industry as accountants who have a background in the Big Four are highly regarded and sought after by multinational companies and banks due to their invaluable knowledge and corporate values.

ii.    Other Areas-What is audit is not my cup of tea?
            Besides auditing, you might also be interested in other professional services offered by the Big Four such as tax and advisory. You might be interested in giving business and financial advice to clients such as financial and debt restructuring, due diligence, corporate governance advisory, asset and project management etc.

(b)    The Corporate Sector-An alternative route to start?
            Alternatively, if being part of the Big Four does not entice you, then you could also become a general accountant in an organization. Your role and responsibilities will vary depending on the nature of the industry your organization is in. For example, in the manufacturing industry, the general accountant usually functions as the cost accountant who will determine the cost of business products and services so that management can utilize the information to make decisions

i.    Management Accountant
             Apart from that, you might also be required to become your organization’s management accountant. Your role is to analyze actual and budgeted results to identify variances in performance. The key decision-makers in the management team depend on your analysis to plan, control and make decisions for the future

ii.   Budget and Forecast Accountants
             Besides that, general accountants are also budget and forecast accountants. Their role is to prepare the organization’s formal plan for the future, expressed in financial terms. For example, they prepare cash flow budgets, market forecasts etc.

iii.  General Accountant vs. Big Four Auditor-What is the difference?
             In a nutshell, as a general accountant, your responsibility is to present management with the appropriate financial information to assist them in making sound decisions. Unlike an auditor, who examines historical financial information and expresses a professional opinion on them, a general accountant deals with information both in the present and future. The general accountant has a role to play in setting organizational objectives and making decisions but the function of the auditor does not involve this.

(c)    Internal Auditor-The need for an internal audit
            Besides that, you could also consider being part of your organization’s internal audit committee. You should be aware of the fact that most post-entrepreneur organizations are so complex and diverse such that it is simply impossible for the senior management/Board of Directors (BOD) to execute control over the activities and employees. No doubt that the BOD has implemented many internal controls to ensure that the corporate objectives are met, but what assurance do they have that those controls are working effectively? Are employees complying with standard procedures? Most importantly, are there any elements of fraud and error that the BOD should be aware of?

i.    The Roles of an Internal Auditor
            The internal auditor will carry out tests on the internal control system to evaluate its effectiveness so that the necessary improvements can be recommended to the senior management. A regular internal audit will assure the BOD that employees are complying with procedures and that organizational assets are protected from the risks of fraud. It should be clarified for once that the responsibility of detecting and preventing fraud lies solely with the senior management of an organization and not the external auditors it appoints. Thus, as an internal auditor, you must carry out your duty independently and not get involved in the operation of the organization. You should be reporting to no one else but the BOD or preferably an internal audit committee.

ii.   Internal Auditor vs. External Auditor-Are they the same?
            At this stage, you might be wondering of the difference between an external auditor and an internal auditor. As the name itself implies, an internal auditor is an employee of the organization that it audits but an external auditor is part of a professional auditing firm (Big Four) and is independent from the organization. The internal auditor is responsible for reviewing the effectiveness of an organization’s internal control system whereas the external auditor will gather evidence to express a professional opinion of an entity’s financial statements.

iii.  Internal Audit-A promising future?
            You should take note that if you are looking for a bright and lucrative career, internal audit is not the best option simply because there aren’t many prospects for promotion and development, especially in small organizations that are not diversified. Sooner or later, you will realize that the internal audit function becomes a routine once you are familiar with all the procedures and activities of your organization. Nevertheless, internal audit is still an option if you are in a diversified organization which allows you to audit different subsidiaries.

(d)    CSI+Accounting-Possible?
              Surely there are plenty of you who are fans of the highly-acclaimed CSI drama. You must have been amazed by the investigative techniques used by the forensic department to gather evidence and analyze them so that they can nab the culprits. If you think you have the necessary skills and intuition for investigating and “sniffing” trouble, just like a CSI investigator, then you have the chance to assume the role of your favourite CSI character in your accounting profession.

i.    Role of the Forensic Accountant
              Forensic accounting is becoming more and more popular following the increasing number of high profile scandals. Most large accounting firms have a special team dedicated for this purpose. In general, as a forensic accountant, your role is to gather financial evidence of any wrongdoings in an organization based on your understanding of financial systems. Subsequently, you will present your evidence in a professional and concise manner so that it can serve as evidence in court.  Hence, forensic accountants also must have a sound understanding of legal procedures and concepts as the nature of their job requires them to liaise with lawyers.

ii.    The Need for Forensic Accountants-When?
              Typically, once there are elements of fraud in an organization, forensic accountants are appointed to gather evidence of wrongdoings such as securities fraud, insurance fraud, kickbacks etc. Thus, they utilize their understanding of business information, financial reporting systems as well as accounting and auditing procedures to perform their work. Apart from that, the specialized expertise of forensic accountants are also solicited in situations such as shareholders’ and partnership disputes, motor vehicle accidents, matrimonial disputes, professional negligence etc.

(e)    Tax-A lucrative career?
                 Many young accountants are also interested in specializing in tax. The Big Four firms have a dedicated department consisting of individuals who are professional in tax. The reality is that many organizations, especially those making large profits, search for every possible means to minimize the amount of tax payable to the government. Hence, they sought the expertise of the tax accountants who will give advice on corporate tax planning.

i.    The Role of the Tax Accountant
                 Based on their understanding of tax laws, they will reduce the amount of tax and increase the net profit of an organization. Tax accountants also help their clients develop tax compliance strategies as well as update them regarding new regulations so that the organization can manage its tax returns more efficiently.

                In conclusion, there is no place in this world that an accountant cannot survive. As long as there is civilization, the role of the accountant will always be there. The function of every accountant, just like any other profession, is the same. Hence, the key to success as an accountant is to be different from the rest. To do so, you should constantly improve yourself and promote your specialties. Treat your identity as a brand and market yourself to the corporate world. Surely, success is in your hands.