Work areas in accounting

With an accounting degree in hand, your choices for work abound. Here's an overview of some of the work areas that are available to you.

From large multinationals to small medium enterprises, almost every business needs an accountant. Thus, the area of work of an accountant varies considerably. The traditional responsibilities of an accountant include managing cash flow, monitoring profit and loss as well as managing risks and helping to develop the business. Today, accountants provide essential financial advice to management to help in decision-making.

a) Audit

The bread and butter of accounting, audit is the area where most fresh accounting graduates will commence their career. Key areas of responsibility in auditing involve checking accounting ledgers and financial statements within corporations and government. Apart from general auditing, there is also a related specialisation - internal audit. Here, the role of auditors is to ensure that the systems and procedures of the company they work for are being implemented and adhered to at all times. The work of an auditor often takes him or her around the country or even the world, depending on where their clients are located. The opportunity to travel allows them to gain an insight into how money is being made, not only in local organisations, but also in international ones.

b) Budget analysis

Budget analysts are responsible for developing and managing the financial plan of an organisation. They analyse and interpret financial data, make recommendations for the future and assist in the implementation of new ideas and financial strategies. Job opportunities are plentiful and they can usually find work in the government and private firms. Apart from quantitative skills, they also require good interpersonal skills as there is a lot of negotiation involved in their job scope.

c) Corporate accounting

There are three main areas of specialisations in corporate accounting:

Area of work	Responsibility
Corporate finance	Advising companies on mergers and acquisitions and financing for big projects through loans and selling of assets. Key employers for this specialisation are investment banks and the bigger public listed companies.
Corporate recovery	Rescuing ailing businesses, or in extreme cases, putting them into liquidation. This area is similar to management accounting, but requires more technical knowledge. Graduates aspiring to go into this area of work must have a background in insolvency
Corporate treasury	Managing cash flows, investing surpluses and controlling financial risks. Work in this area is usually found in large organisations where the responsibility of the treasurer is to monitor foreign exchange deals and try to minimise the risk posed by fluctuations in the market.

d) Cost accounting

Generally found in the manufacturing sector, cost accountants look into all aspects of the costing of products or assembly line to ensure that the pricing of the product is not only market friendly but also includes all costs associated with production. They need to ensure that all costing must eventually lead to the company making a profit.

e) Forensic accounting

Forensic accounting provides an accounting analysis that is suitable to the court which will form the basis for discussion, debate and ultimately dispute resolution. Two main areas of work are litigation support and investigative accounting. Forensic accountants utilise accounting, auditing and investigative skills when conducting an investigation. Equally critical is their ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting. Forensic accountants are trained to look beyond the numbers and deal with the business reality of the situation. They must also be able familiar with legal concepts and procedures. Work can be found in public sectors, insurance companies, banks, police forces, government agencies and other organisations.

f) Insurance

The scope of this area of work requires an accountant to look ahead of current situations in order to minimise risks and losses to businesses and individual investors, in areas like loss of future profits or earning, and hedging of foreign currencies. Graduates aspiring to work in the insurance sector should be a visionary and show foresight in their work. They are also expected to show independence and creativity in their approach to work.

g) Management accounting

Major responsibilities of management accountants include cost analysis, analysis of new contracts and participation in efforts to control expenses efficiently. They typically provide accounting information to managers within organisations, allowing them to make informed business decisions thus enabling them to be better equipped in their management and control functions. Apart from that, their responsibility also includes the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities.

h) Tax

Tax accountants are specialists in advising companies on ways to ensure that they manage their affairs and corporate structures to maximise tax relief or benefits. They prepare corporate and personal income tax statements and formulate tax strategies involving issues such as financial choice, how to best treat a merger or acquisition, and deferral of taxes, among others. Graduates wishing to specialise in this area have to posses a thorough understanding of economics and the tax code.

© GTI Specialist Publishers. Reproduced with permission.