The economic environment is constantly changing, creating a need for financial management and accounting professionals who can adapt with the times. It is vital to be aware of these changes and potential issues to keep your company profitable. The global economy is undergoing many changes, affecting all industries, but especially in the finance and accounting sectors. Financial institutions must adapt with this changing landscape or face extreme risks of going out of business. To address the issues facing the modern accounting profession, the Financial Services Authority has been busy implementing new rules and regulations to protect consumers and the financial industry.
Financial Management Accounting Professionals
In reaction to decreasing government spending and the tightening of belts, financial management accounting professionals are gravitating to the corporate finance and accounting field. There are many benefits to working at a large corporation versus working at a small company. Large corporations provide employees who understand the importance of maintaining accurate financial reporting and corporate finance strategies.
Different Types of Accountancy
There are several different types of accountancy. In general, there are two main kinds of accountancy; management accounting and financial management. Management accounts give accountants the ability to process data and draw reports from financial transactions. Financial management accounting provides strategic direction for a company. While both require knowledge of financial records, there are important differences between the two.
Smaller Accountancy Firms
Smaller accountancy firms are growing in popularity, because they provide the same type of benefits and security as large firms, but at a smaller scale. These firms are becoming more important in the financial management market because they cater to the corporate market instead of serving the individuals only. These firms have the ability to help corporations obtain financing for an acquisition or help a small business grow into a large corporation. Smaller firms also need help with cash flow issues so that they can keep their clients’ funds moving and avoid bankruptcy.
Attention on Business Recovery
Most accounting service providers are currently focusing their attention on business recovery. Business recovery is a term that refers to the process of getting a company back on its feet after being closed down due to failure of financial management. Most businesses fail because they do not properly take care of finances. The process of business recovery involves getting clients back to their business and then keeping them from going out of business.
Financial reporting involves preparing reports that are used by corporate finance and accounting departments. Financial reporting is the method by which a company’s financial information is communicated to decision makers (such as shareholders or lenders) and is usually done through accounting software. Financial reporting requires that managers and other professionals who are involved in decision making to understand the inner workings of the company, as well as what is happening to it. This means thorough knowledge of the accounting systems and principles and great communication skills.
Remain at Top of the Financial Management Market
To be competitive and remain at the top of the financial management market you must have a balanced financial management skill set. Most people that begin working in the industry do not have an accounting background and most accountants are not well rounded in their skill set. There are several courses that are available at community colleges and technical colleges that teach accountants skills that are necessary in this career. Some of these courses include public accounting, bookkeeping and finance. However, if you do not have a bachelor degree in accounting or any other accounting related field then it will be very difficult for you to get into the best firms that are willing to train you for the position.
Another skill set that is needed by those in the accounting field is forensic accounting. This skill set requires the individual to be able to gather financial information that can be used against a company or against an individual. Financial information is used in every aspect of business including corporate finance, mergers and acquisitions, and stock sales. The data that can be used in a forensic accounting investigation can lead to criminal proceedings or it can result in the saving of a company from bankruptcy.
Those in the accounting field who wish to continue their education can go on to get Master’s degrees, Ph.D’s or even be able to go into corporate finance. There are also accounting firms that are willing to train future accountants on a part time basis. It is important that all employees understand what their job is and that they know that the accountant’s job is to make sure the books are accurate. A solid understanding of auditing, reviewing accounting records, reconciliation and business recovery is essential to being successful in the accounting world.