New skill sets will make accountants more sought after and the demand for specialties is rising
The accountant’s role has changed significantly in recent years, moving away from processing and calculating data and focusing instead on analyzing information and helping to chart the course of a company’s future.
As job responsibilities have shifted, so have the requirements to be successful in accounting. It’s no longer enough just to have solid financial expertise. Accountants must also have a diverse skill set that enables them to serve as business advisors to an organization.
According to research recently conducted by staffing firm Robert Half, accounting professionals with the following skills will be the most in demand:
• International experience — accounting professionals who understand international transactions and accounting standards, and are fluent in other languages;
• Strategic analysis — accountants with the ability to see the “big picture” and provide strategic advice or accountants who have kept up-to-date on the latest industry and business trends and who understand a company’s position within its industry;
• Technical abilities — professionals who are not only proficient in accounting software and systems, but who also have the ability to provide advice on implementing new systems;
• Communication skills — accountants who can convey in-depth business information to non-financial colleagues. This is particularly important as firms increase their use of cross-functional work teams, which typically involve employees from multiple departments working collaboratively on special projects.
Booming specialties
In addition to the skills and experience currently in demand, the following specialties are expected to see strong growth in the coming years.
General accounting: Businesses need staff accountants to handle accounting work ranging from processing journal entries to performing account analysis and reconciliation and preparing tax filings. Firms are also hiring senior accountants to manage more complex projects, such as budgeting, preparing financial statements and conducting risk assessments. Accounting professionals with knowledge of Canadian Standards Association (CSA) and the United States’ Securities and Exchange Commission (SEC) reporting requirements are in especially strong demand. General accountants at small, medium and large companies in Canada will see a 3.5-per-cent increase in average starting salaries compared to 2005 levels.
Financial analysis: Businesses have an ongoing need for professionals who can evaluate financial data, identify trends and anomalies, and participate in forecasting and budgeting. These accountants may also be called upon to help their companies find ways to improve profitability or provide support for strategic decisions. Analysts at small, medium and large companies in Canada will see a base compensation increase of 2.5 per cent from 2005 levels.
Internal auditing: Internal auditors, especially those who have obtained the certified internal auditor (CIA) credential from The Institute of Internal Auditors, will remain in demand. In an effort to improve all-around accountability, both public and private companies are expected to continue hiring aggressively in the internal audit area. There is also intense demand for internal auditors from consulting firms that offer outsourced and co-sourced internal audit services. Internal auditors at small, medium and large companies in the United States will see a seven-per-cent increase in average starting salaries compared to 2005 levels.
Audit and assurance: With more rigorous audits as a centerpiece of corporate reforms, professionals with an auditing and assurance background should feel confident about their career prospects. Public accounting firms of all sizes continue to hire as many qualified accountants as they can find. Audit and assurance professionals at small, medium and large companies in the United States will see a base compensation increase of 5.3 per cent from 2005 levels.
International accounting: Foreign companies listed on Canadian exchanges and U.S. and overseas subsidiaries of Canadian and U.S. companies must also comply with Bill 198 and Sarbanes-Oxley, respectively, fuelling the need for accountants with knowledge of domestic corporate governance regulations who can work successfully in an international environment. Those who can speak a second language are particularly sought after.
Forensic accounting: As corporate fraud has become more complex to identify and unravel, the need for accountants with specialized forensic skills continues to increase. Forensic accountants are trained to help prevent and detect corporate financial frauds such as embezzlement, securities fraud, tax scams and money laundering. Government agencies, public accounting firms and specialty consulting firms all seek accountants with forensic skills. The most marketable professionals are those who have earned the certified fraud examiner (CFE) designation.
Salary increases
According to Robert Half’s and Accountemps’ yearly research on salary trends, starting salaries in accounting and finance are projected to rise an average of 2.5 per cent in 2006.
Public accounting firms are raising salaries across the board as they compete with companies in private industry for top accounting staff. Average starting salaries for entry-level accounting professionals at large firms are projected to climb 2.8 per cent, to between $36,250 and $45,500. Managers at medium or small firms can anticipate a 4.3-per-cent increase in average starting salaries, to $69,250 to $94,000 annually. Senior accountants at medium or small firms will see base compensation rise to $48,500 to $60,250 — an increase of 4.6 per cent from 2005.
More salary increases
• Full charge bookkeepers can anticipate a 5.7-per-cent rise in base compensation in the year ahead with average starting salaries of $38,750 to $50,000.
• Accounts receivable or accounts payable supervisors will see starting salaries climb 5.2 per cent, to the range of $43,250 to $58,500.
• Analysts with large companies and one to three years’ experience will see starting salaries rise 4.0 per cent, to $42,750 to $54,000 annually.
The importance of certifications
A large majority of CFOs believe that having a certification enhances one’s career prospects, according to research by Robert Half International. Accounting and finance professionals can keep pace with change by joining associations and pursuing industry-recognized certifications. The programs and resources offered by professional associations are invaluable in helping individuals increase their knowledge of accounting and finance issues and expand their networks. Earning certifications is a way of demonstrating a commitment to career growth and can help professionals differentiate themselves in the workplace.
Jeff Holloway is a vice-president with Robert Half Finance & Accounting, a global recruitment firm specializing in the placement of accounting and finance professionals. He may be contacted at www.roberthalf.com or at 1-800-474-4253.
As job responsibilities have shifted, so have the requirements to be successful in accounting. It’s no longer enough just to have solid financial expertise. Accountants must also have a diverse skill set that enables them to serve as business advisors to an organization.
According to research recently conducted by staffing firm Robert Half, accounting professionals with the following skills will be the most in demand:
• International experience — accounting professionals who understand international transactions and accounting standards, and are fluent in other languages;
• Strategic analysis — accountants with the ability to see the “big picture” and provide strategic advice or accountants who have kept up-to-date on the latest industry and business trends and who understand a company’s position within its industry;
• Technical abilities — professionals who are not only proficient in accounting software and systems, but who also have the ability to provide advice on implementing new systems;
• Communication skills — accountants who can convey in-depth business information to non-financial colleagues. This is particularly important as firms increase their use of cross-functional work teams, which typically involve employees from multiple departments working collaboratively on special projects.
Booming specialties
In addition to the skills and experience currently in demand, the following specialties are expected to see strong growth in the coming years.
General accounting: Businesses need staff accountants to handle accounting work ranging from processing journal entries to performing account analysis and reconciliation and preparing tax filings. Firms are also hiring senior accountants to manage more complex projects, such as budgeting, preparing financial statements and conducting risk assessments. Accounting professionals with knowledge of Canadian Standards Association (CSA) and the United States’ Securities and Exchange Commission (SEC) reporting requirements are in especially strong demand. General accountants at small, medium and large companies in Canada will see a 3.5-per-cent increase in average starting salaries compared to 2005 levels.
Financial analysis: Businesses have an ongoing need for professionals who can evaluate financial data, identify trends and anomalies, and participate in forecasting and budgeting. These accountants may also be called upon to help their companies find ways to improve profitability or provide support for strategic decisions. Analysts at small, medium and large companies in Canada will see a base compensation increase of 2.5 per cent from 2005 levels.
Internal auditing: Internal auditors, especially those who have obtained the certified internal auditor (CIA) credential from The Institute of Internal Auditors, will remain in demand. In an effort to improve all-around accountability, both public and private companies are expected to continue hiring aggressively in the internal audit area. There is also intense demand for internal auditors from consulting firms that offer outsourced and co-sourced internal audit services. Internal auditors at small, medium and large companies in the United States will see a seven-per-cent increase in average starting salaries compared to 2005 levels.
Audit and assurance: With more rigorous audits as a centerpiece of corporate reforms, professionals with an auditing and assurance background should feel confident about their career prospects. Public accounting firms of all sizes continue to hire as many qualified accountants as they can find. Audit and assurance professionals at small, medium and large companies in the United States will see a base compensation increase of 5.3 per cent from 2005 levels.
International accounting: Foreign companies listed on Canadian exchanges and U.S. and overseas subsidiaries of Canadian and U.S. companies must also comply with Bill 198 and Sarbanes-Oxley, respectively, fuelling the need for accountants with knowledge of domestic corporate governance regulations who can work successfully in an international environment. Those who can speak a second language are particularly sought after.
Forensic accounting: As corporate fraud has become more complex to identify and unravel, the need for accountants with specialized forensic skills continues to increase. Forensic accountants are trained to help prevent and detect corporate financial frauds such as embezzlement, securities fraud, tax scams and money laundering. Government agencies, public accounting firms and specialty consulting firms all seek accountants with forensic skills. The most marketable professionals are those who have earned the certified fraud examiner (CFE) designation.
Salary increases
According to Robert Half’s and Accountemps’ yearly research on salary trends, starting salaries in accounting and finance are projected to rise an average of 2.5 per cent in 2006.
Public accounting firms are raising salaries across the board as they compete with companies in private industry for top accounting staff. Average starting salaries for entry-level accounting professionals at large firms are projected to climb 2.8 per cent, to between $36,250 and $45,500. Managers at medium or small firms can anticipate a 4.3-per-cent increase in average starting salaries, to $69,250 to $94,000 annually. Senior accountants at medium or small firms will see base compensation rise to $48,500 to $60,250 — an increase of 4.6 per cent from 2005.
More salary increases
• Full charge bookkeepers can anticipate a 5.7-per-cent rise in base compensation in the year ahead with average starting salaries of $38,750 to $50,000.
• Accounts receivable or accounts payable supervisors will see starting salaries climb 5.2 per cent, to the range of $43,250 to $58,500.
• Analysts with large companies and one to three years’ experience will see starting salaries rise 4.0 per cent, to $42,750 to $54,000 annually.
The importance of certifications
A large majority of CFOs believe that having a certification enhances one’s career prospects, according to research by Robert Half International. Accounting and finance professionals can keep pace with change by joining associations and pursuing industry-recognized certifications. The programs and resources offered by professional associations are invaluable in helping individuals increase their knowledge of accounting and finance issues and expand their networks. Earning certifications is a way of demonstrating a commitment to career growth and can help professionals differentiate themselves in the workplace.
Jeff Holloway is a vice-president with Robert Half Finance & Accounting, a global recruitment firm specializing in the placement of accounting and finance professionals. He may be contacted at www.roberthalf.com or at 1-800-474-4253.
