Employment outlook accounting major in the next five years
Memo of Transmittal
Following thorough research, this project highlights aspects related to accounting employment outlook. The employment outlook for accounting has been projected to remain positive over the next five years driven by improving economy. This report highlighted the increasing need for accounting services in organizations and how accounting is affected by different factors
Due to constant change in market needs for accounting services, it’s recommended that accountants should constantly train and be ready to embrace new technological innovations applicable in this field.
Executive summary
The employment outlook for accounting is positive for the next five years, since employment opportunities are expected to increase. The accounting role is perceived to be an important part of decision making process of any organization since budgeting, costing and financial reporting determines the performance. The various factors affecting accounting outlook includes; clients need for connectivity, accounting softwares development, automation in data and the general change in technological innovations. With expected growth in economy especially the U.S economy, there is the likelihood of growth in the overall job market for accounting over the next five years. Accounting has various strengths that include potential for growth and demand for accountants and some weaknesses that include constant need for training and monotony in work. The role of this project is to discuss accounting employment outlook in the next five years amidst changing job markets. The need for constant knowledge on technological advancement and how it affects accounting and changing workplace needs are issue in the project. Accountant should constantly train to improve their knowhow and get certification.
Introduction
The emerging trends in economy, business, science and technology and politics are changing the professional accountants’ landscape, with some of the trends having the whole profession and others certain specialist roles and areas. The degree of this impact and the anticipated results vary in various ways. As the global economy experiences these changes, and with growing optimism on economic recovery, the accounting profession has experiencing such changes and which comes in terms opportunities and the development of this profession. A keen look into the various developments in the industry implies that it is critical to adapt to the current market, and be ready to embrace the opportunities that arise. This can be seen in the technological changes that have played a major role in changing accounting professional outlook. The various emerging drivers have had an impact on what is expected of accountancy, the value of existing and new interpersonal and technical competences in all the areas which comprises of corporate reporting, audit and assurance, financial management, tax, strategic performance and planning and the areas touching on governance, ethics and risks. This mean that accountants have to advance on their technical and interpersonal competences in order to meet the changing needs of the local and global markets and which must be addressed through accounting profession.
Work treatment of accounting
The role and how it is perceived at the workplace depends in different factors and the how it influences the overall performance of an organization. A mark that distinguishes accountancy profession is how it accepts to performance responsibilities in the interest of the public. The professional accountant is not only expected to fulfill the employer’s work needs or that of a client but work in accordance with some laid down work ethics. The core responsibility placed on accountants is to prepare financial and economic information in a way that it is useful to management for planning and controlling the operations of the organization to achieve the desired standard (Acton, 2012). Hence, accounting is treated as an integral part of the overall decision making process in the organization and actualizing these decisions. Without accounting, it would be hard for businesses to determine it is faring in terms of profitability. It’s therefore viewed as a way in which an organization keeps its own score in the market.
Factors affect accounting outlook
In recent years, new technologies have emerged and changed all aspects of businesses and in this regard the accounting profession. Various factors have affected availability if job opportunities in the market and how various how accounting is viewed by the industry. There are, therefore, various trends that have driven the changes in the industry and include; clients need for connectivity so that just like any other processes, accountants are expected to be able to connect with clients and other teams; automation in data entry is a major driving aspect in bookkeeping and accounting so that disappearance of manual data is requiring development of technical knowhow for the accountants; another factor influencing the outlook includes the growth of development of accounting softwares and moving of accounting to online platforms which is requiring a high level of knowledge (Turner, Weickgenannt, & Copeland, 2017). The need for specialization is a major factor determining the outlook of the accountancy and so that businesses are only keen on paying those bookkeeping and accounting services that they need. These factors are determining the development of accounting field and even the requirement for accountants to gain knowledge so that they are absorbed in the market.
Employment outlook in accounting for the current years
Outlook for accounts and auditors
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Median pay -2016 |
$68,150 annually |
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Entry level (education) |
Bachelor's Degree |
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Work experience |
- |
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Employment positions (2014) |
1,332,700 |
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2014-2024 job outlook |
Faster than average – 11 percent |
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2014-2024 –employment change |
142,400 |
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With expected growth in economy especially the U.S economy, there is the likelihood of growth in the overall job market. The outlook of accounting professional jobs is major determined by technology that is enhancing productivity and automation, which the major factors are affecting the need for accounting skills. It is expected that an increase in job marketing for accountants including bookkeepers and auditing clerks will be experienced. In fact, by 2020 accounting occupations are expected to a high of about 2,150,000 jobs when compared to about 1,898,000 jobs that were available in 2010 (U.S. Bureau of Labor Statistics, n.d). This means that the outlook for accounting job is to be good for those individuals aspiring to be accountants and more so, those possessing industry-wide certification may be preferred to those who are not certified accountants. Accounting job opportunities will continue opening up over the next 10 years as per the data presented by US Bureau of Labour Statistics, and this will be because of increasing nature of concerns for corporate finance. The projections holds that employment opportunities for accountants including auditors is expected to increase by around 13 % for the 2012-2022 period, a growth which as fast as average for the other jobs in the market (U.S. Bureau of Labor Statistics, n.d).
The forecasts also indicate that the employment growth for these professionals is expected to be linked to the status of the economy since as the economy is expanding, accountants will be needed for preparation and examination of financial reports. Moreover, a lot of focus is being placed on accounting roles in reaction to various corporate scandals and financial crises in recent times. It is expected that stricter regulations and laws will be put in place, especially across the financial sectors and due to this demand for services provided by accountants and auditors as firms try to conform to such new standards. Lending standards that are more stringent can be expected to increase and the importance of auditing services will be high, since this is a major way for firms to show their creditworthiness. Those accountants with professional certification especially CPAs ( Professional public Accountants) may have the best prospects of being absorbed into these jobs (Randstad Professionals 2016).
Many organizations will continue to employ those individuals who are highly qualified in accounting knowledge and have wide experience and those who are certified for the purpose of overseeing fiscal services. In addition, hiring accountants is being done increasingly on fixed term or temporary contracts, a trend that can also be observed in other occupations in the entire business sector. Businesses are taking stiff measures aimed at reducing staffing cost and employing people on the basis of fixed terms to help out in specific projects or temporary increment in workloads (NATIONAL ASSOCIATION OF COLLEGES AND EMPLOYER, 2015). The emphasis here is the need for accountants to maintain professional networks that are strong so that they to position themselves to embrace new emerging opportunities. The various sectors have show good signs for growth including the technology, finance, construction, property and banking after the economy experienced economic hardship in 2007-2008 period.
The demand for accountants in these sectors has increased considerably and this trend is expected to continue in the near future as long as the sectors maintain this growth. However, as some sectors are experiencing growth, others are expected to stagnate and this may fail to offer great prospects for accountants and auditors in such sectors. Such cases can be seen in gas and oil extraction industry, where employers have been reporting lowest growth and outlook for those college graduates of 2016. Some firms in the industry have also experienced reduced growth with nearly 60 % and therefore, a decline in the level of employment for college graduates (Randstad Professionals 2016). This is not surprising given that lower gas and oil prices affect this industry directly. This shows that prospects for employment in these sectors are not expected to be high in the foreseeable future and accountants may not look to the industry as providing good employment opportunities. The data above data serves to indicate the positive impact of a strong economy on the future of accounting profession and how it is expected to provide opportunities for the accountancy professionals. As long as the economic outlook is bright in future, the accountants will continue to encounter employment opportunities in their field. However, the projections are not guarantee of how the future of accountancy will be but a reflection or description of what is to be expected under various circumstances and assumptions. In case the assumptions in the market are not fully realized, it is expected that actual values will be different from employment projections. A major assumption is the equilibrium in the labor market, so that supply of labor will meet the needs in the same market apart from some frictional unemployment level (Randstad Professionals 2016).
Accounting’s strength and weakness
Accounting as a profession has its major strengths and various weaknesses that those who choose to pursue it as a career might encounter. To begin with, pursing accountancy as a career may be among the best ways of investing in one’s education. There is a potential for such a person to experience personal growth and development since the this field allows one to choose careers in various industries both in private and public sectors or even being self-employed. The various areas in the accountancy include auditing, bookkeeping and financial consultations in different sectors of the economy. Ones a person becomes a Certified Public Accountant, many opportunities open up for them and from there they can kick-start their career progression. There are many opportunities a job in accountancy with every firm needing the services of an accountant (Florida National University, 2015). Accountants play a vital role in ensuring that businesses are within set budget and no deviation from set cost limits.
While it is not guaranteed that a person will find employment after graduation, demand for accounting and related services ranks quite high. Accounting is all about resource management, handling organization’s finances which make demand for such services to be high. Due to such demand, the accounting career path is quite clear which makes it a good choice for those interested. This is a major strength for accounting since one should pursue a profession that provides opportunities for growth and personal development both in employment self-employment. With a foundation of accounting skills and continuous education, a person has the options of practicing as an auditor, budget analyst, Tax accountant, CPA and even a payroll clerk (Florida National University, 2015). There are also opportunities for a person to advance towards managerial positions especially as financial planner and analysts in an organization.
Moreover, the range of payment for accountants is quite high due to the nature of this profession right from the beginning. In addition, anybody can do so well in this profession including women who may feel left out in other important professionals and actually, this profession is regarded as among the major professions where women can grow and earn well. Strength is that, in this profession, one can choose not to be employed but pursue their business interests. As a professional, one may become an entrepreneur after obtaining enough experience and establishing a large network across various businesses in the market. It’s one of those professions that can be on its own, and whether one decides to provide specialized or consultation services, options are many relating to financial affairs.
However, there some weakness or cons that can be associated with accounting as a profession. Accounting can be said to be a dull and is considered among the less glamorous field that requires ongoing education, due to the nature of daily work that involves math and investigating. The nature of accounting is that one is not given much time to explore on their knowledge meaning that there is little room for innovation, which can explain why it is hard to hear of a prominent accountant. In addition, the work may be seasonal with much work being on the specific times of the year with deadlines. The responsibilities taken by an accountant have huge impact on the firm and this may come with stressful work environment (Ferguson, 2008). For any person, the monotony in accounting career would make the most weakness of this profession.
Accounting qualification
The qualifications required for an accountant includes education, training and certifications. It is required that an accountant possess the right academic knowledge on accounting, bookkeeping and auditing which helps in understanding of the basic principles. Technological knowledge especially on computer and accounting software is also important although such skills may be provided by the employer during work training (U.S. Bureau of Labor Statistics, n.d).one is required to have a Bachelor’s Degree in accounting or any other related area is for many of accounting positions. Having a bachelor’s degree in related subjects provides a quick route to obtaining the right qualification with professional accounting body. This kind of qualification makes it possible for a person acquire chartered status that will show the employers that they have skills and training to carry out related tasks. It is also necessary for graduates to gain work experience through internship programs that will prepare them for the real work place in organizations. Such qualifications will be necessary in imparting the necessary knowledge to potential accountants and thereby fulfilling the education and training requirements for the profession.
Related accounting jobs
Accounting jobs are not only related to working alone in large organizations’ offices. There is a diverse range of jobs that are well paying and which are within the accounting filed. Other than tasks related to bookkeeping, majority of accountants can carry out tasks that are more complex like payroll reporting and auditing of fraud. They are also involved in preparing financial information and reporting on the same for business shareholders and the government institutions. Simply the work of accountants is to allow individuals and businesses in understanding and evaluation of financial expenditures and even profitability. The accounting profession is therefore tasked with ledge management and compilation of the accounts of a company. It simply involves the preparation of all books of an organization while making update on accounting records through daily computations. An accountant compiles the financial data, and prepares reports on such information in a manner that can be understood by the users including regulators. The accountant also prepares tax reports and assist owners in submitting their tax dues (U.S. Bureau of Labor Statistics, n.d).
Accountant certification
As aforementioned, certification is very vital for accountants in their career growth and development. It is an essential aspect that assists a person in differentiating himself at the market place and serves as an indicator to the employer that one has necessary skills required in performance of accounting tasks. Some specific credentials have become quite desirable in the market and comprises of Certified Public Accountant, Certified Internal Auditor, Certified Management Accountant, Certified Information Systems Auditor and Chartered Accountant (Half, n.d). In coming years, firms are likely to place high value on certification as a way of differentiating high performing candidates. The overall impact will be advantageous to accountants since they will be provided with an opportunity to earn more and embrace many opportunities that may arise. This is because employers value such certifications and are in search of those individuals whose knowledge can be demonstrated in niche areas when they combine work experience, formal education and training acquired in the process of certification (Half, n.d).
Conclusion
Accounting profession has undergone various changes that have been brought about by emerging trends in economy, business, science and technology and politics, which is transforming the practicing platform. These changes have changed what is expected of the accountants in the work place especially because of the constantly evolving needs of organizations and businesses. Accounting tasks and responsibilities are treated as very essential since through them, performance of the organizations is evaluated. It is projected that accounting employment opportunities will continue to increase in future and the certified professions are the likely to benefit more.
Recommendation
The changing market needs for accountancy including the technological advancement calls for constant training for any professionals. Those starting out on this profession should take time to research on what is required , what is needed to remain relevant during employment and undertaking certification courses to be competitive in the job market.
References
Turner, L., Weickgenannt, A., & Copeland, M. K. (2017). Accounting information systems: Controls and processes. 36-41
Randstad Professionals (2016) . Finance & accounting workplace trends guide. Retrieved from: http://experts.randstadusa.com/hubfs/Staffing/Talent/WPT_2016/PDFs/FA_C_WPT_Guide_2016.pdf?t=1498787552818
Bureau of Labor Statistics, U.S. Department of Labor, (n.d).Occupational employment projections to 2020. Retrieved from: https://www.bls.gov/opub/mlr/2012/01/art5full.pdf
Florida National University, (2015).Benefits of Becoming an Accountant. Retrieved from: http://www.fnu.edu/6-benefits-accountant/
NATIONAL ASSOCIATION OF COLLEGES AND EMPLOYER, (2015).Job Outlook 2016. Retrieved from: https://www.mccormick.northwestern.edu/career-development/documents/getting-started/job-search/NACE%20Job%20Outlook%202016.pdf
Half, R., (n.d).Guide to Certifications for Accounting, Finance and Operations Management. Retrieved from: https://www.accountingweb.com/sites/default/files/guide_to_certifications_robert_half.pdf
U.S. Bureau of Labor Statistics,(n.d).How to Become a Bookkeeping, Accounting, or Auditing Clerk. Retrieved from: https://www.bls.gov/ooh/office-and-administrative-support/bookkeeping-accounting-and-auditing-clerks.htm#tab-4
Acton , (2012).The Only Three Reasons Entrepreneurs Need Accounting and Finance. Retrieved from: https://www.forbes.com/sites/acton/2012/09/15/the-only-three-reasons-entrepreneurs-need-accounting-and-finance/#691a10e232cd
Ferguson, (2008).The Top 100: The Fastest-Growing Careers for the 21st Century. Infobase Publishing.3-4
