Accounting Job Career Plan Research

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AccountingJob Career Plan Research

Listof tables

Table1: Effect of demographic changes in the NAICS industry……………………………7

Listof figures

Figure1: Election results ……………………………………………………………………4

Figure2: Trend in U.S. GDP growth ………………………………………………………..5

Figure3: Improvement in international trade and exports ………………………………….6

Figure4: Job openings versus job seekers ………………………………………………….7

Figure5: An example of accounting information system …………………………………..9

AccountingJob Career Plan Research

Industrydescription

Iwould like work in the accounting, tax preparation, bookkeeping andpayroll service (NAICS 54121) industry. The NAICS 54121 industry iscomposed of establishments that engage themselves in differentactivities, including auditing of accounting records, developingaccounting systems, preparation of financial statements, budgetsdevelopment, payroll processing, preparation of tax returns, andbilling among others (Government of Canada, 2015). Although there aremany potential employers in Canada, the number of indeterminateestablishments exceeds the number of employers. Studies shows thatthe total number of employers national-wide is 16,673 (34.4 %) whilethat of indeterminate is 31,778 (65.6 %) (Government of Canada,2015). Most of professionals working in the NAICS 54121 industry areemployed in the micro-industry. According to Government of Canada(2015) about 12,439 (74.6 %) of professionals are employed bymicro-establishments, 4,085 (24.5 %) in small establishments, 128(0.8 %) in medium establishments, and 21 (0.1 %) in largeestablishments. The entire industry, which is comprised ofapproximately 34,161 establishments, is estimated to make totalrevenue of about $ 185,700 (Government of Canada, 2015).

Trendsthat impact the NAICS 54121 industry

Politicaltrends

Politicaltrends in any given country affect the performance of business andthe availability of the employment opportunities directly as well asindirectly. Over the years, accountants and auditors have been usingthe Canadian Generally Accepted Accounting Standards, but now thegovernment requires establishments to use the International FinancialReporting Standards (Accounting Standards Board, 2014). Making theuse of international accounting and auditing procedures mandatoryimplies that companies will need more accountants and auditors whowill help them comply with the new procedures.

Canadahas a very stable political system, where politicians compete forpower on the basis of ideologies. For example, the most recentelections that were held on October 19 2015 saw the liberalgovernment come into power after promising Canadians to rejuvenateeconomic growth According to Isfeld (2015) more than 44,000 new jobswere created in the month of October compared to 12,000 jobs createdin the previous month. In addition, the rate of the Canadian dollarrose by 0.2 % soon after elections, which signifies a lot of hopeamong investors. The stable political system coupled with agovernment that gives hope to investors (potential employers), allcategories (including accounting) will increase for unforeseeablefuture.

Figure1: Election results

Source:Oz (2015)

Figure1 shows that the liberal government got the majority legislativeseats (184 seats), which implies that the new government will be ableto implement its manifesto that mainly focus on economic growth aftera long period of extremely slow growth rate. The successfulimplementation of Liberal’s manifesto, will help Canada expand itsenergy sector, which will in turn facilitate trade and increase jobavailability in the country.

Economictrends

Economicconditions in different countries have been improving gradually afterthe 2007-2008 financial crises. It is expected that Canada’s GDPgrowth rate will increase from its current rate of 1.4 % to 1.66 % inthe year 2016 and 2.41 in 2017 (Statista, 2015). An increase in thenation’s GDP suggests an improvement in the rate of employment inall professions, including accounting and auditing. However, the 2016general elections in the U.S. will reduce the rate of GDP growth in2016 as shown in Figure 2.

Figure2: Trend in U.S. GDP growth

Source:Trading Economist (2015)

Figure2 shows that the U.S. GDP and the economy in whole reached its climaxin 2015 and will start declining towards the end of 2015 onwards.This suggests that securing employment in the U.S. will continuebecoming a challenge since the declining rate of economic growth willnot be able to cater for the growing demand for employment in theU.S.

Inaddition, conditions in the international trade will improvesignificantly, especially in the year 215 and 2016. This can beindicated by two major factors, including the decline in oil pricesand an increase in exports. Oil prices have been reducingcontinuously in the last one and a half years and they are expectedto continue dropping (Statista, 2015). Moreover, it is projected thatnon-commodity exports and non-energy commodity exports will increaseby close to 10 % annually starting from late 2015 as shown in Figure3.

Figure3: Improvement in international trade and exports

Source:Statista (2015)

Animprovement in the conditions affecting the international tradeimplies that more jobs will be available in the local as well as inforeign labor markets. Additionally, an increase in the participationof companies in the international trade suggests that moreaccountants, auditors, and other employees required to helporganizations comply with the international laws will be required.

Socialtrends

Achange in the national demographics affected nearly all professions.For example, the population aging in the developed countries(including Canada and the U.S) is expected to create vacancies in thefield of accounting and auditing. A survey conducted by Government ofCanada (2013) revealed that more than 59 % of the people working inthe field of accounting and auditing in Canada will retire within thenext one decade. The details of the effect of the demographic changesare as shown in Table 1.

Table1: Effect of demographic changes in the NAICS industry

Category

Percentage

Retirement

59 %

Expansion demand

29 %

Replacement demand

8 %

Emigration

4%

Source:Government of Canada (2013)

FromTable 1, the retirement of older adults will create the highestnumber of job openings, which is even higher than the number of jobsthat will result from economic expansion.

Figure4: Job openings versus job seekers

Source:Government of Canada (2013)

Figure4 shows that number of job seekers in the fields of accounting andauditing will be less than the job openings, which can be attributedto a high number of aged workers who are retiring each year.

Professionsthat are related to the NAICS industry are associated with unethicalpractices than in any other professions in the world. This is becauseprofessionals working in the NAICS industry are responsible for themanagement, control, and supervision of the most liquid and valuableasset, which is money or finances (Government of Canada, 2013). Casesof intelligent accounting and other types of fraud have beenincreasing with time, in spite of the strict legislations that areenacted or amended each year. This has resulted in a negative mediaimage of this industry. Therefore, pursuing a career in the NAICSindustry will require a profession to overcome some the criticalchallenges, including the negative public perception and image.

Technologytrends

Technologyhas impacted both the personal and professional lives of members ofthe modern society. All professions within the NAICS industry areinfluenced by technology in one way or another. Technologyadvancement in NAICS industry started with the development of simplesoftware (such as SAGE) that could make the processes of bookkeeping,but they have been advanced to include nearly all transactionscarried out by professionals working within NAIC (Government ofCanada, 2015). To some extent, the increase in the use of technologyin NAICS present some challenges, such as the need for additionaltraining besides the college degree and decrease in the jobopportunities since technology enhance efficiency and enable a fewpeople to do tasks that would have required more people. Therefore,technology will cut the number of jobs made available by the retiringpopulation and economic expansions.

Figure5: An example of accounting information system

Source:Pol (2013)

Figurefive shows that the information systems have been advanced to a levelat which accountants or auditors can use them starting from the datacollection stage until information that can be used by external usersis generated.

Informationtechnology has also resulted in the development of more effective andreal-time accounting as auditing tools that are continuouslyreplacing paperwork. This is confirmed by an increase in thepopularity of concepts, such as auditing with, through, or around thecomputer (GTI Media Ltd, 2015). Therefore computer and the internethave become critical tools for employees working in NAICS industry.

Careerpath research

Iexpect to occupy four major positions in my career within the NAICSindustry in the next seven years. I expect to start with a job of anoffice accountant. The main duties of an office accountant includepreparation, organizing, reviewing, and verifying tax and financialdocuments (Study, 2015). The basic requirement for the job of anoffice account is a bachelor’s degree, but some employers mayrequire a working experience. Some of the basic skills that an officeaccountant requires include math skills, analytical skills, attentionto details, and communication skills. On average, office accountantsearn about $ 47,563 annually (PayScale, 2015).

Thesecond position I expect to occupy is that of an auditor. The maintask of an auditor is to review financial statements that have beenprepared by accountants and determine whether they represent the fairview of the company’s financial position (GTI Media Ltd, 2015).Some of the skills that one requires to become an auditor includeattention to details, problem solving skills, time management,communication, and interpersonal skills. The minimum requirement forthe job of an auditor is a bachelor’s degree. Professionalqualifications (such as the Association of Chartered Accountantsqualification) are also required (GTI Media Ltd, 2015). Auditors earnan average of $ 52,450 annually (PayScale, 2015).

Third,I expect to work as an accounting manager. An accounting manager isresponsible for accounting roles carried out in an organization.Apart from the normal accounting roles an accounting manager shouldfacilitate the process of financial forecasting, budgeting, andscheduling of expenditures (Monster Worldwide, 2015). In addition, anaccounting manager maintains internal controls, make recommendations,and contribute information that guides the organization’s processof strategic planning. The minimum qualification is a bachelor’sdegree and professional qualifications, such as certified publicaccountants, CPA. Some of the skills that an accounting manager mayrequire include multi-tasking, communication, interpersonal, andattention to details. On average, accounting managers earn about $63,244 each year (PayScale, 2015).

Lastly,I would like to occupy the office of the chief financial officer,CFO. The main functions of a CFO include administration of companyfinances, management of finance-related risks, and development offinancial strategies (Accounting Tools, 2015). Most employers requirea CFO to have a minimum of a master’s degree in businessadministration, accounting, or other business fields. Other employersrequire CFOs to have CPA or CMA qualifications. Apart from academicqualification, a CFO should have some skills, including forwardthinking, communication, strategic planning, and attention todetails. On average CFOs earn about $ 121,000 annually (PayScale,2015).

Conclusion

TheNAICS industry offers a wide variety of job categories and anopportunity to advance one’s career. However, the industry, similarto other sectors, is affected by many trends that in clued economic,political, social, and technology trends. These trends affect theindustry both positively and negatively. Personally, the NAICSindustry will provide an opportunity to advance from the job of anoffice accountant to an auditor, then to an accounting manager, andlastly to a chief financial officer.

References

AccountingStandards Board (2014). Adoptionof International Financial Reporting Standards.Norwalk: ASB.

AccountingTools (2015). Chief financial officer Job description. AccountingTools.Retrieved December 27, 2015, fromhttp://www.accountingtools.com/job-description-cfo

GTIMedia Ltd (2015). Auditor:Job description.Wallingford: GTI Media.

Governmentof Canada (2013, December 26). Financial auditors and accountants.Governmentof Canada.Retrieved December 27, 2015, fromhttp://www.jobbank.gc.ca/report-eng.do?area=9219&amplang=eng&ampnoc=1111&ampaction=final&ampln=n&amps=2

Governmentof Canada (2015). Industry Canada: Canadian industry statistics(CIS). Governmentof Canada.Retrieved December 27, 2015, fromhttps://www.ic.gc.ca/app/scr/sbms/sbb/cis/definition.html?code=54121&amplang=eng

Isfeld,G. (2015, November 6). Canada’s jobs growth smashes expectationsand it wasn’t all the election. MarketMoves.Retrieved December 27, 2015, fromhttp://business.financialpost.com/news/economy/canadas-jobs-growth-smashes-expectations-and-it-wasnt-all-the-election?__lsa=d89f-60d7

MonsterWorldwide (2015). Accounting manager job description sample. Monster.Retrieved December 27, 2015, fromhttp://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/accounting-manager-job-description-sample.aspx

Oz,L. (2015). Canada’s 2015 federal election result. TheEconomist.Retrieved December 27, 2015, fromhttp://www.economist.com/blogs/graphicdetail/2015/10/daily-chart-9

PayScale(2015). Auditor salary. PayScale.Retrieved December 27, 2015, fromhttp://www.payscale.com/research/US/Job=Auditor/Salary

Pol,C. (2013). Impact of information technology on accounting systems.Asia-pacificJournal of Multimedia Services,3 (2), 93-106.

Statista(2015). Canada: Real gross domestic product growth rate from2010-2020. Statista.Retrieved December 27, 2015, fromhttp://www.statista.com/statistics/263603/gross-domestic-product-gdp-growth-rate-in-canada/

Study(2015). Office accountants: Employment info and requirements.Study.com.Retrieved December 27, 2015, fromhttp://study.com/articles/Office_Accountants_Employment_Info_and_Requirements_for_Becoming_an_Office_Accountant.html

TradingEconomist (2015). United States GDP annual growth rate. TradingEconomist.Retrieved December 27, 2015, fromhttp://www.tradingeconomics.com/united-states/gdp-growth-annual/forecast

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