I remember a conversation during my early accounting days about how the internet would “revolutionize” our field. I had chuckled, not realizing how right they were! Fast forward to today, and I’m looking at another game-changer: blockchain. Just as the internet did, blockchain is poised to turn accounting on its head. And if you’re thinking “Blockchain in Accounting Technology” sounds like a tech buzzword, think again. This is the reality of modern accounting.
I remember a conversation during my early accounting days about how the internet would “revolutionize” our field. I had chuckled, not realizing how right they were! Fast forward to today, and I’m looking at another game-changer: blockchain. Just as the internet did, blockchain is poised to turn accounting on its head. And if you’re thinking “Blockchain in Accounting Technology” sounds like a tech buzzword, think again. This is the reality of modern accounting.
The Basics of Blockchain Technology
Alright, let’s strip away the techie jargon. At its heart, blockchain is like a digital ledger – only more secure. Imagine a book where once you’ve written something, it can never be erased or altered without everyone knowing. That’s blockchain. It’s a chain of blocks (data sets) that are virtually tamper-proof. In the accounting world, this is groundbreaking.
Real-world Application of Blockchain in Accounting Technology
1. Transaction Verification: Back in the day, verifying financial transactions felt like a treasure hunt, filled with endless paperwork and a looming possibility of human errors. Now, with blockchain, transactions are verified in real-time. It’s as if the moment you find a coin in your couch, a notification is sent out announcing, “Coin found in couch!” No delay. No discrepancy.
2. Fraud Detection: Ah, fraud. The ghost that haunted my early accounting years. With traditional systems, there’s always been a risk, no matter how small. But blockchain’s nature, where every transaction is transparent and immutable, makes fraud almost impossible. Every transaction is visible to all, making any tampering evident. It’s like trying to steal a cookie from a jar in a room full of people.
3. Smart Contracts: If you’ve ever experienced the joy of sifting through legal contracts, you know the pitfalls. Ambiguities, missing details, or just sheer human forgetfulness. Enter smart contracts. They’re self-executing contracts where the terms between buyer and seller are directly written into code. It ensures compliance and leaves no room for “Oops, I forgot.”
Blockchain and the Future of Auditing
Picture this: an audit where the information is so transparent that traditional audit processes become redundant. Sounds like a dream? That’s where we’re headed. Because blockchain offers such transparent, unchangeable records, it paves the way for more streamlined auditing. But here’s the twist: Instead of phasing out accountants, this opens doors for us to become strategic advisors. We can provide insights and forecasts, elevating our roles from mere number-crunchers.
The Essential Skills: Merging Accounting with Blockchain
Back in 2015, I attended a seminar where the speaker mentioned blockchain’s potential role in accounting. Most of us brushed it off as “too techie.” Oh, how wrong we were! Today, the most sought-after accountants are those who blend traditional accounting knowledge with blockchain expertise. I’ve seen companies prioritize hires with even a basic grasp of blockchain over seasoned accountants because they recognize its future potential.
The Career Implications: Don’t Get Left Behind
I once mentored a brilliant young accountant. Sharp as a tack, but resistant to emerging technologies. When blockchain started gaining traction, he was reluctant to adapt. Last I heard, he’s playing catch-up. The reality? There’s a burgeoning demand for blockchain-savvy accountants. This expertise not only offers a competitive edge but, in many cases, has become a necessity. Remember, the keyword here isn’t just “blockchain”; it’s “Blockchain in Accounting Technology”.
Gearing Up for a Blockchain-Dominant World
I once mentored a brilliant young accountant. Sharp as a tack, but resistant to emerging technologies. When blockchain started gaining traction, he was reluctant to adapt. Last I heard, he’s playing catch-up. The reality? There’s a burgeoning demand for blockchain-savvy accountants. This expertise not only offers a competitive edge but, in many cases, has become a necessity. Remember, the keyword here isn’t just “blockchain”; it’s “Blockchain in Accounting Technology”.
Blockchain isn’t just another fleeting tech trend; it’s the future of accounting. As someone who’s seen the industry evolve, trust me when I say this – adapt or get left behind. Just as the internet redefined our jobs, blockchain is reshaping our future. Dive in, learn, and adapt. The accounting world is waiting, and it’s more exciting than ever!
There you go! A peek into the exhilarating world of blockchain in accounting. I hope this gives clarity and stokes curiosity. Because the only thing constant in our field is change. And right now, that change is spelled B-L-O-C-K-C-H-A-I-N.
Let me paint a picture for you: It’s a crisp morning in 2010, and there I am, elbow-deep in piles of financial statements, desperately trying to reconcile a minor discrepancy using my trusty (but clunky) accounting software. Fast forward to 2023, and it’s like I’ve teleported to a sci-fi movie set! Accounting has transformed in ways I couldn’t have imagined back in the day.
If you’re just starting your journey in the world of accounting or considering taking the plunge, there’s no better time than now. The Accounting Tech Trends of 2023 are not just revolutionizing the profession, but also setting the stage for how future accountants (like yourself!) will operate.
The Rising Importance of AI in Accounting
Remember Jarvis from Iron Man? Well, accounting tech hasn’t reached that level of sass yet, but we’re getting close! AI, or Artificial Intelligence, is making massive waves.
Predictive analytics: Gone are the days when I’d pull all-nighters trying to forecast a company’s financial trajectory. Now, AI uses historical data to make these predictions for me, allowing more time for strategic planning. It’s like having a crystal ball!
Chatbots and Virtual Assistants: The other day, I was stumped by a new tax provision. Instead of diving into thick manuals, I asked my accounting software’s virtual assistant. Within seconds, I had my answer. Real-time assistance? Check!
Automation: Remember the time when manual data entry was a rite of passage for every rookie accountant? Thanks to AI-driven automation, errors due to mundane repetitive tasks are a thing of the past.
Embracing the Power of Blockchain
Confession: The first time I heard about Blockchain, I thought it was a new workout routine! But this tech is changing the accounting game. Blockchain ensures that every financial transaction is recorded, transparent, and virtually tamper-proof.
Triple-entry accounting, a rising trend, utilizes blockchain to add an additional layer of verification, ensuring all parties are on the same page. No more ‘he said, she said’ in financial disputes!
Cloud Accounting Takes Center Stage
Picture this: You’re vacationing in Bali, sipping a cool drink by the beach, and suddenly you remember a crucial report that’s due. Panic mode? Not in 2023! With cloud accounting, I’ve accessed and sent files from the most remote places, even during my trekking expedition in the Himalayas!
Cloud platforms offer real-time updates, data security, and the fantastic ability to collaborate with teams from anywhere. Plus, integrating with other tech tools is a breeze.
Advanced Data Analytics and Visualization
In my early accounting days, I used to present data-filled reports, often greeted with glazed eyes. Enter advanced data analytics and visualization: transforming mind-numbing numbers into engaging, understandable visuals. It’s like turning raw ingredients into a gourmet meal.
These tools play a massive role in strategic decision-making, helping businesses foresee challenges and opportunities. It’s storytelling but with numbers.
Integrated Financial Systems and Platforms
One of my first jobs involved juggling between different financial systems – trust me, it felt like I was translating between languages! Now, with integrated platforms, data flows seamlessly between systems, making life so much simpler.
For budding accountants, mastering these platforms is vital. It gives a comprehensive view of a business’s financial health, letting you see the bigger picture and guiding decision-making.
Preparing for the Future
Okay, tech trends are awesome, but what does this mean for you?
The field of accounting has never been more exciting. With the Accounting Tech Trends of 2023 leading the charge, there’s an ocean of opportunities to learn and grow. I’ve attended webinars, taken up online courses, and even received a certification in AI-driven accounting (didn’t see that one coming!).
My two cents for you? Embrace these changes. Equip yourself with the latest tools and tech. It’s not just about being trendy; it’s about carving out a space for yourself in this ever-evolving landscape.
Looking back, I’m a tad jealous of you. Starting your accounting journey amidst these tech revolutions offers immense opportunities and challenges. So, dive deep into the Accounting Tech Trends of 2023. Adapt, learn, and grow. And while you’re at it, enjoy the ride. After all, the accounting of today is not just about numbers; it’s about shaping the future.
Ready to gear up for this exciting journey? Dive into these trends, stay curious, and remember: the world of numbers awaits its next tech-savvy hero. You up for it?
You know, every career has its eureka moment — that instant when you just know you’re on the right track. For me, it was when I managed to save a small business tons of money with some clever accounting, all while jamming to my favorite 80s rock band. If you’re teetering on the edge of a life in numbers, and wondering, “Is accounting the right career for me?”, this one’s for you.
Natural Affinity for Numbers
It’s More than Just Math
Do you get a little buzz from seeing a balanced spreadsheet? Remember when you split the bill at dinners and felt oddly satisfied making sure everyone paid their fair share? If you’ve ever asked yourself, “Is accounting the right career for me?”, these feelings might just be pointing you towards a ‘yes’. This could be your starting line!
Attention to Detail
The Devil’s in the Details
My mentor once told me about a time she caught a minuscule error that would’ve cost her client a fortune. The lesson? Details matter, big time. If you’re the kind who spots the one mismatched tile in a floor design or the slight color variance in a painting, this could be your superpower in the accounting world.
Analytical Mindset
Connecting Dots Like a Pro
Accounting isn’t just about entering numbers. It’s deciphering stories they tell. I once spotted a recurring, seemingly insignificant expense in a company’s books. Upon investigation, it revealed a bigger inefficiency. If you enjoy digging deeper and understanding the why behind things, you’re on the right track.
Passion for Problem Solving
The Thrill of the Chase
Remember those puzzle games or escape rooms? That rush when you found a clue? Now, imagine doing that with numbers. There was a time when a startup approached me with cash flow problems. Tracking down the issue and devising a solution felt like finding a hidden treasure. That’s the accounting world for you!
Ethical at Heart
Your Moral Compass Points North
My grandma used to say, “Integrity is doing the right thing even when no one is watching.” In accounting, the stakes are high, and your moral compass will be your guiding light. From ensuring transparency to resisting shortcuts – your character is everything.
Eager to Learn and Adapt
Forever a Student
The first time I encountered a digital accounting tool, I felt like a fish out of water. But, embracing change and being open to learning? That’s the game-changer. The accounting world is ever-evolving, and your willingness to ride the tide will set you apart.
Strong Communication Skills
Translating Numbers to Stories
Picture this: you’ve discovered a financial insight that could change the trajectory of a business. But, how do you convey this to someone without an accounting background? If you’ve ever simplified complex concepts for friends or love breaking things down for others, you’ve got the knack.
A Drive for Continual Improvement
Better Than Yesterday
During my early years, I once got feedback that while my analysis was spot on, my presentation skills needed work. Instead of being disheartened, I took up a course. If you’ve got that hunger to constantly level up, trust me, accounting won’t let you down.
Fascination with Business Operations
Beyond the Ledger
To some, businesses are just about profit and loss. But if you see them as intricate machines with numerous cogs and wheels, all playing a part in a bigger picture, you’re in for a treat. Helping a business align its operations with its financial goals? Nothing short of magic.
Seeking Long-term Stability and Growth
In it for the Long Haul
You know, every career has its eureka moment — that instant when you just know you’re on the right track. For me, it was when I managed to save a small business tons of money with some clever accounting, all while jamming to my favorite 80s rock band. If you’re teetering on the edge of a life in numbers, and wondering, “Is accounting the right career for me?”, this one’s for you.
Conclusion
Take a moment and reflect. Do any of these signs resonate? Remember, every accountant has their own unique journey. But if you find yourself often questioning, “Is accounting the right career for me?”, spotting a few of these signs in yourself might just mean it is. So, if you see a glimmer of yourself in these signs, welcome aboard. Your exciting journey in the world of numbers awaits!
Keen on diving deeper? Whether it’s seeking a mentor or joining an accounting course, make your next move. And hey, always trust your gut. After all, numbers don’t lie, but they sure do tell a compelling story. Happy accounting!
Unlocking the Benefits of an Accounting Career
The Rewarding Path Ahead
If you’ve journeyed with us through these signs and find yourself nodding along, you’re likely on the brink of an empowering decision. Still pondering “Is accounting the right career for me?” Let’s delve into the tangible benefits of choosing this path:
Financial Stability: Accountants often enjoy competitive salaries and a plethora of job opportunities in varied industries. Whether in finance, entertainment, or tech, every sector needs its number guru!
Constant Evolution: The dynamic landscape of accounting ensures you’re always on your toes. With tech advancements and changing regulations, there’s never a dull day.
Making an Impact: As an accountant, you have the power to drive businesses forward, optimize operations, and even save them from potential pitfalls. Your insights can be transformative.
Endless Opportunities: From forensic accounting to environmental accounting, the career paths are diverse. Whether you’re passionate about global finance or local businesses, there’s a niche for you.
Lifelong Learning: The accounting world values continuous education. Whether it’s certifications, workshops, or seminars, there’s always an avenue to expand your knowledge and horizons.
By understanding the myriad benefits and aligning them with your personal aspirations, you can confidently answer the question, “Is accounting the right career for me?” And remember, beyond the numbers and ledgers, it’s about carving a fulfilling journey that resonates with who you truly are.
Operational efficiency is a cornerstone of success for small to medium-sized enterprises (SMEs). As businesses strive to do more with less, adopting the right technologies can provide a critical edge. Among these, automation stands out as a transformative force. With the power to streamline operations, minimize errors, and free up precious human capital, automation is changing the face of business. In this comprehensive guide on “Automation for SMEs,” we delve into what automation is, why it matters, and how your business can leverage it effectively.
Understanding Automation
At its core, automation refers to the use of technology to execute recurring tasks or processes in a business where manual effort can be replaced. It’s about working smarter, freeing up humans to focus on higher-level tasks that require critical thinking and creativity. Automation can manifest in various forms, whether it’s software that helps with scheduling tasks, robotic process automation (RPA) for data entry, or complex AI algorithms capable of learning from data inputs. From customer service to HR and marketing, almost every function in a business can benefit from automation in some way.
The Benefits of Automation for SMEs
For SMEs that are constantly looking to improve efficiency and productivity, automation presents a host of advantages:
Cost savings: By taking over repetitive, time-consuming tasks, automation can lead to significant savings in terms of labor costs. What’s more, automation can also help reduce overheads related to human errors and inefficiencies.
Time efficiency: Tasks that might take a human several hours to complete can often be done by an automated system in a fraction of the time, freeing up your team to focus on more important tasks.
Increased accuracy: Automation eliminates the risk of human error, ensuring consistent and accurate results every time.
Scalability: As your business grows, your automated systems can grow with it. You can scale your operations without having to worry about hiring and training more staff.
Enhanced customer service: Automation can help improve your customer service by offering faster response times and 24/7 support. For example, chatbots can handle simple queries and complaints round the clock, leaving more complex issues to your human staff.
Real-World Examples of Automation in SMEs
Automation is not a distant reality; it’s already making a difference in businesses across sectors. Let’s take the example of a small retail business. By automating its inventory management, it can ensure real-time tracking of stock levels, generating orders when supplies dip below a certain threshold, thereby reducing the chances of stockouts or overstocking.
Similarly, a marketing firm can leverage automation to optimize its email marketing campaigns. With the help of automation, it can send personalized emails based on customer behavior and track the performance of each email, helping to improve the effectiveness of its campaigns over time.
These are just glimpses into how automation can revolutionize business operations, leading to enhanced productivity, cost savings, and improved service delivery.
How to Implement Automation in Your SME
While the benefits of automation are clear, implementing it requires careful planning and execution. Here’s a step-by-step guide:
Identify tasks to automate: Start by identifying repetitive, time-consuming tasks that can be automated. These could range from data entry and invoice generation to customer service responses.
Choose the right automation tools: Once you’ve identified the tasks to automate, the next step is to choose the right automation tools. It’s important to research various options and choose one that fits your business needs and budget.
Train your staff: Your staff will need to understand how to use the new tools effectively. This involves providing training and ongoing support as they familiarize themselves with the automated systems.
Monitor and tweak: Once implemented, it’s essential to regularly monitor your automation system and make adjustments as necessary. You’ll want to track key performance indicators (KPIs) to ensure that automation is delivering the intended benefits.
Potential Challenges and How to Overcome Them
Automation, like any transformative change, presents challenges. Here are some common ones and how to tackle them:
Resistance to change: People often resist change, especially when it may impact their roles. To mitigate this, communicate the benefits of automation and provide reassurances about job security.
Technical difficulties: As with any technology, there may be initial glitches. Having a dedicated IT support team can help resolve these issues swiftly.
Need for training: As mentioned earlier, your employees will need training to handle the new automated systems. Allocate time and resources for this crucial stage.
High upfront costs: While automation can save costs in the long run, the initial investment may be substantial. Plan your budget carefully, and consider starting with less expensive, easy-to-implement solutions.
Conclusion
In today’s dynamic business environment, automation is no longer a luxury—it’s a necessity. For SMEs striving to boost operational efficiency, reduce costs, and drive growth, automation provides a potent solution. While there are hurdles to overcome, with careful planning and implementation, the benefits are far-reaching. SMEs that successfully leverage automation will be well-positioned to outpace competition and thrive in the digital age.
If you’re ready to start your automation journey, we’re here to help. Contact us for expert advice on selecting the right automation solutions, managing implementation, and maximizing your return on investment. Let’s work together to transform your business operations and pave the way for sustained growth.
As an accountant in the UK, having the right skills and knowledge is essential to succeed in your profession. Accounting is a challenging and demanding field that requires a unique set of competencies to excel. In this blog post, we’ll discuss the top five skills that every accountant in the UK needs to possess to be successful in their career.
Attention to detail: Accuracy and precision are crucial in accounting. As an accountant, you’ll be working with large amounts of data and complex financial information. Even the smallest mistake can have significant consequences for your clients. Therefore, having an eye for detail is essential to ensure that all the information you work with is accurate and error-free.
Communication skills: As an accountant, you’ll be working with clients and colleagues from a range of backgrounds and levels of expertise. Being able to communicate complex financial information in a clear and concise manner is essential to ensure that everyone understands the information being presented. Effective communication skills are also crucial for building and maintaining client relationships.
Analytical skills: Accounting involves analyzing complex financial data, identifying trends, and making informed decisions based on this information. Having strong analytical skills will enable you to quickly identify and resolve financial issues, interpret financial data, and provide meaningful insights to clients.
Problem-solving skills: Accounting can be a challenging and fast-paced field, requiring accountants to think on their feet and solve problems quickly. Being able to identify problems, find solutions, and implement them effectively is essential for success in accounting.
Continuous learning: The accounting field is constantly evolving, with new technologies, regulations, and best practices emerging regularly. To stay ahead of the curve, accountants must be committed to continuous learning, keeping up with industry developments, and investing in their professional development.
In conclusion, possessing these five essential skills – attention to detail, communication skills, analytical skills, problem-solving skills, and a commitment to continuous learning – is essential for every accountant in the UK who wants to succeed in their profession. By developing these competencies, you’ll be well-positioned to provide the highest level of service to your clients and grow your career in accounting.
There’s no doubt about it. Beginning your career in Accounting & Audit can build a fantastic foundation to your future, and your career potential. However, at the same time, if you don’t play your cards right, it can be the poison chalice you forever regret taking on in your career.
When you’re looking for jobs, you’re going to have a whole host of options once you fully qualify as an accountant, especially if you have Big 4 experience! Your time achieving your qualification can show grit and determination, and a level of knowledge far superior to many other people in the finance industry.
Over your first three years (assuming you pass all your exams first time), you will build some great on-the-job experience, and really learn about yourself and what makes your brain tick during your exams. I put my exams down as the key element of growth for me in my life to date. I really learnt what I enjoyed, how my brain worked, and how to know when “enough was enough” when it came to a work-life-balance.
Despite all this, it is essential that you take your experience and skills, and run as soon as possible…
Because you have worked in Audit, you will have a very broad look at the world of finance. You will likely have worked on various clients in different areas. The problem arises when you stick around for too long. You will compartmentalise yourself as “The Auditor” and not “The Accountant”. The longer you stay in Audit, the harder it is to get into the interesting jobs in finance with high potential.
Let’s be frank….I doubt there are many Audit Directors who have managed to move their career into a CFO role, or a head of finance role.
The Benefits of an Accounting Career
Experience – working in Accounting/Audit for a few years will give you that solid foundation to expand your horizons in the financial industry. You will work on a large variety of clients, meet new challenges and see different ways of doing things which other’s in the financial world will not see. Employers know this when you hand your CV in and they see three years of experience at a Big 4 or top Accounting firm.
Knowledge – The knowledge you obtain during your Accounting Exams is priceless. Once you obtain that certificate, it is effectively the key to being paid a salary far beyond the local average for the rest of your life, and even has the potential to give you the stepping stone to achieve really high positions within a firm (and really high pay-cheques…)
Prestige – The firm you train at does matter to some extent. Being able to put “Big 4 Accountant” on your CV or your LinkedIn will really benefit you in the process of landing your next job. If you’re up against another person who has impressed in the interview process just as much, but they’re not Big 4….you’re likely to get the job over them. It won’t make up for poor interview skills, or a lack of knowledge. However, the prestige that training at a Big 4 firm brings is worth its weight in gold.
Versatility – I always urge young accountants to get a broad level of experience during their time in audit. The more you can work on, the better of an idea you will get of what you enjoy. Sure, once you realise you LOVE a certain area, then try and focus onto that. For example, I really enjoyed investment funds, so my focus was on Hedge Funds while I worked at my Big 4 firm. Now I work at a Hedge Fund! Your versatility will really lend itself as a skill later on in your finance career as well, as it allows you to chop and change roles, and be easily ‘mouldable’ as difference requirements arise.
How To Leave Your Accounting Career Behind!
Right, we’ve spoken about why an accounting career is great, but how do you get out of it? You first need to question yourself on exactly what you want to do. I have trained alongside people who become qualified accountants, and then finance is the last thing they want to do. For example, someone I worked with ended up becoming a Personal Trainer a year after they qualified because during their studying they had grown a love for fitness.
What I would recommend is sitting down and writing a list. What do you enjoy doing? Were there areas during your role in accounting that you LOVED, and were there areas you HATED? Are there any other studying requirements for the roles you may really be interested in? For example, I questioned the possibility of a move into Investment Management at one point. However, that meant I had to complete the CISI exams to become a qualified Investment Advisor. After three years of intense Accounting Exams….that was the last thing I wanted on my plate.
Once you have your list, you need to start researching and finding out more about the different positions you might like to take on. I would always recommend trying to network with people in your local area who may be in those roles already. They may be the gatekeeper to your future job! Or they may be able to advise and point you in the right direction for your perfect job.
I also recommend talking to various job recruiters. I say various because recruiters are a little like car salesman, in that they have a tendency to not be 100% honest, and are only there to get a commission on a ‘sale’. There are good car salesman out there, and bad car salesman. This is the same for job recruiters. I spoke to maybe 8-10 different recruiters when I was beginning my plan to leave the Big 4. 90% of them wouldn’t listen to what I wanted and kept trying to convince me that a career in Fund Accounting is what I wanted to do. The reason being is that there is an abundance of Fund Accounting roles in my area. Therefore, it is the ‘easy’ pay-day for them if they can convince me to go for it. As opposed to finding the very specific niche of job I would have liked, and risking me losing out to fierce competition (which means work for them, without pay.
You will eventually find a recruiter who you get a good ‘vibe’ from. Once you find a recruiter who’s good, they’re a big like a hairdresser…you’ll keep going back and trust them.
You’ve Found the Perfect Job? Great!
Now, you need to get that job, and this all comes down to your skill in an interview process. Everyone is different here. For example, I am very naturally good at thinking of good answers on the spot in an interview, while others need to prepare for every eventuality of question.
I like to create a little booklet of facts and information about the company and role I’m applying for. Being able to casually (and naturally!) litter little bits of information in your responses to questions about the firm will really impress interviewers. For example, let’s say the company pulled off a huge takeover bid last year, you could be talking about your interest in mergers and acquisitions, and then drop a comment about how interesting you found their takeover (and could even ask them questions about it).
Interviews can unfortunately take practice. Therefore, it might be worth still going to interviews that your recruiter recommends, but you may not necessarily like the sound of the job. I had 3 interviews (and 2 offers!) before I interviewed at the place I now work. I just knew they weren’t right for me, even though they gave me a convincing offer. Now, I’m very glad I stuck to my gut, and those three interviews really helped me get into the groove of the interviewing process (it had been 3.5 years since my last interview!)
Watch the video below for some tips, and also start trying to research potential common interview questions. Quite often the questions you will get are variations of the same common questions:
I hope you’ve found this breakdown helpful, and I will strive to answer any questions you may have in the comment section below (I answer them all!). I’ll keep my fingers crossed for you in your interview process, and hope you find your dream job!
There is some fear in the world of Accounting that as employees we may become obsolete in the future as automation and artificial intelligence becomes more of a significant tool in the workplace. I wrote a post which you can view here, which discusses the reasons that accountants will never truly be replaced in their entirety by robots. However, to summarise the post for you, I do believe there will be less of a need for such vast numbers of auditors and bookkeepers throughout the world. An audit office which previously had 1,000 employees will likely only need 100 in the future. As after all, these robots need some element of human interaction, and a human generally needs to make the final decisions on things. I cannot foresee a situation where the regulators allow for a robot to sign off the audit in replacement of a human partner.
It very much depends what area of accounting you work in as to the likelihood that your job could potentially be replaced. Tax preparers were rated as the largest chance of having their jobs replaced by automation. Bookkeepers and Auditors were not far behind!
Now, I did use the word “replaced” which I do think is unfair. Those of us who stay stagnant and do not move with the trend will likely be replaced over time. In order to remain in your tax preparation job and remain successful, you will need to become somewhat adept at managing automation within your role. Just like accountants who prepare accounts with a pen-and-paper no longer exist (or if they do, they’re a dying breed), eventually accountants who simply use excel and manually input data into excel sheets will become obsolete too.
The question then seem to have an obvious answer. As an Accountant, should you learn about Automation and how to automate your daily tasks? Well…of course!
Benefits of Automating Accounting Work
In my day-to-day job, I have really been pushing myself to automate tasks as much as possible. There are two key reasons for this; it saves my time; and it future-proofs my role.
Where I work, there is very little automation at the current moment in time, but it is something that is slowly beginning to emerge. Getting yourself ahead of the pack in this regard props you up to a position which means you’re not lagging behind, but it also saves a significant amount of your own time.
You will notice that your workflows significantly improve. I can now get more work completed in a day, which benefits the firm overall. And at the end of the day, what benefits the firm, will benefit me in the long run via promotions and bonuses. Admittedly, we don’t all work at companies who recognise efforts like these. However, even learning automation and being able to add it to your CV will enable you to climb the career ladder elsewhere.
For me, one of the key benefits of automation is the level of improved accuracy to work. When you’re dealing with many different spreadsheets and data-sources, you’re prone to making small mistakes over time. However, automation, assuming you keep on top of the setup being correct can lead to a perfect outcome. A robot cannot mistype a word, or input a number incorrectly with their fat fingers. The elimination of human error in my work, or at least significant reduction of it has been a godsend for me.
Tasks that Accountants can Automate
Invoicing
There are various tasks which can be made simpler in the invoicing process using programming such as Python. One of my favourite ones is being able to extract information from a PDF automatically.
Let’s say you have 100 invoices in PDF format sitting in a folder, and you know that you need to go through them and extract the key data: Invoice number, contact details, amount, payment details etc. Well, did you know that Python could automatically open up all of those PDFs and recognise those key pieces of information, and store them neatly within an excel file for you?
Tasks which could normally take hours, can take minutes when you know how to utilise automation and programming as an accountant.
Expenses
The same benefits in the invoicing process can be applied to expenses. To use Python as an example again, you could automate the analysis and sorting of all expenses. A code could be created to automatically collate and analyse all expense data for your company on a monthly basis, and then automatically email that report to the relevant individuals within the firm.
Payroll
The key benefit of automating payroll within your accounting/bookkeeping business is the simple reduction in human error.
This can be beneficial in the simple fact that nobody wants to be paid the incorrect amount. However, it also includes other benefits such as increased security. If everything is correctly automated, then nobody will receive someone else’s payslip due to human error of emailing to the wrong address.
There can be a significant amount of time saved during the payroll process if automated programming is utilised. This obviously has financial benefits for your firm in the long term, as well as making other areas of the business more simplistic, such as tax filings and reporting.
In conclusion – Should you learn about Automation as an Accountant?
I honestly think you would be silly to not at least learn some basic automation to help your role at work. I think in the next 15 years, automation will really become an essential part of the workplace in many offices, and when it comes to climbing the career ladder, being somewhat adept at creating automated processes will make you stand out from the crowd.
You’re currently still in school and think a career as an Accountant is in your future? However, you’ve got to decide which subjects you are going to take in your final years of high school in order to lead to your future career.
In this post I am going to answer several questions which will likely benefit you in your high school years if you wish to become an accountant:
Do you need to pick certain subjects at school to become an Accountant?
Should you aim to go to University if I want to become an Accountant?
What subjects will benefit me most in learning about Accountancy?
Do you need to be good at maths to be an Accountant?
PICKING SCHOOL SUBJECTS LEADING TO A CAREER IN ACCOUNTING
I remember when I was in High School, and I really struggled when it came to choosing which subjects I would continue with. There were some subjects I really enjoyed, but had zero relation to my target career path. However, there were others which I hated, but were almost essential.
For example, I am a guitar player and love music. So, despite my better judgement, I decided to take music as a class. However, this didn’t actually detract from my ability to become an Accountant, in fact, it benefitted it! Often in an interview scenario, you will be asked about your hobbies – showing you’re not boring and that you have a personality is key to landing your dream job (see my post on nailing a Big 4 Accounting interview).
I find that often people focus too much on the academic side of things. While in reality you need to be a pretty balanced and well rounded candidate to really succeed in the accounting world. There’s a stereotype that we’re all boring and don’t have a personality. This isn’t the case at all, and the best Accountants I know are a lot of fun. It is the boring ones who end up in the same job for 30 years and don’t make much progress.
DO YOU NEED TO PICK CERTAIN SUBJECTS IN SCHOOL TO BECOME AN ACCOUNTANT?
Short answer: No, not really.
There are certain subjects which will benefit your learning more when it comes to going to University, or starting yuor career. However, I think it doesn’t matter too much.
The only subjects I would say are essential, are Maths and English. These are two skills that you need to be at least “good” at in order to be a successful accountant. I don’t think you need to be in the top class for Maths, or amazing at it. You just need to be able to solve mathematical equations and not feel out of your depth when doing some relatively basic maths.
Other than English and Maths, I think just choose the subjects you enjoy. You will succeed far more doing subjects that you really enjoy and are passionate about. Getting an A in Music is far more important than getting a C in an Accounting class. Generally Universities will look at grades, not subjects. As I’ve said, the only subjects I generally see as a ‘requirement’ are English and Maths
However, a tip I would give is to go and look at the entry requirements for University Degrees in the subject you want to study, and also the entry requirements for local jobs looking for trainee accountants. Do they expect you to have a degree? Are there certain high school grades/subjects they expect? This will give you certainty over what subjects to pick at school to continue your career path as an accountant.
SHOULD I GO TO UNIVERSITY TO BECOME AN ACCOUNTANT?
There isn’t a simple answer to this. I do not believe that having a degree will drastically improve your ability to be an accountant. However, I do believe it teaches you significant lessons about hard work and social skills. It is those lessons which create a divide between the good trainee, and the average trainee.
If you can’t afford to go to University, or it really isn’t something you want to do, then going straight into a trainee position is possible.
If you go straight into the work place from school, you could be a fully qualified Accountant by the age of 22 – I went to University and didn’t fully qualify until I was 25. That’s an extra 3 or 4 years of salary you will be receiving, and that can be a huge different on your personal life. Those 3 or 4 years mean you could get on the property ladder far sooner.
Let’s also remember the debt of going to University.
Personally, I don’t regret going to University. However, I do believe I would be financially better off if I hadn’t gone. However, I wouldn’t have landed the successful jobs that I have had without going to University. It led me down a path where I was able to get an incredibly prestigious Accounting qualification (ICAS requires a degree), and I moved to a location far from home after graduating. These events wouldn’t have happened if I didn’t go to University.
My advice would be to sit down and think about exactly what you want from your career, and the answer will likely become obvious.
WHAT SUBJECTS WILL BENEFIT ME MOST IN BECOMING AN ACCOUNTANT?
I’ll keep this bit pretty simple, and just state the subjects I think will benefit your learning. Some schools may not have these subjects, which makes it difficult. For example, I know people who studied Accounting in High School, however, my school didn’t have this as a subject.
ACCOUNTING
This one is obvious. If your school offers this as a subject, and you want to be an Accountant, I think you’d be a little silly to turn it down as an option. This will likely give you a great foundation going forwards. You will understand things your peers don’t when taking on your qualifying exams, and this will stand you in good stead for success.
ECONOMICS
Economics will teach you the power of money, and how it works around the world. This is a key understanding for Accountants, and something that really benefitted my understanding of finance as a whole while at University.
BUSINESS MANAGEMENT
The closest thing I had to an accounting class at school was business management. It was my favourite class. Your future accounting qualification will have a business management style module, so this is very relatable to your future qualification. If your school offers it, I would 100% take it.
MATHS
Maths is often on the entry requirements for an accounting course at University. I know many people hate it as a subject, and I know a lot of the subject is highly irrelevant to real life. However, it is usually an essential, and you will struggle to get into a University course, or even an entry level trainee role without it.
ENGLISH
English just helps your basic understanding of the English language. It will allow you to communicate better, and write better and more concise emails. There’s nothing worse than a colleague who can barely string a sentence together, or regularly makes spelling errors.
DO I NEED TO BE GOOD AT MATHS TO BE AN ACCOUNTANT?
No, but you do need to take it as a subject.
You don’t need to be getting top level A’s in Maths, but you need to at least show you are competent with numbers. I would recommend taking Maths and trying to do as well as possible in it – despite how much you likely dislike the subject.
OVERALL, I WOULD RECOMMEND TAKING A LOOK AT SOME OF THE BELOW LINKS:
We can discuss the differences between an MLM and Pyramid Scheme until the cows come home. However, the principle difference is a Pyramid Scheme is a straight scam where there’s generally no product. While an MLM company will at least be distributing a product, but the general structure is relatively the same.
Nu Skin isn’t a new competitor in the marketplace. In fact, they have been around for quite a while. They were founded in 1984 in the US. So, they definitely know what they’re doing at this point when it comes to structuring an MLM company and how to run it effectively.
Their general motto is that they will help you “achieve financial freedom, and live your best life” or some generic American Dream-esque tagline. Irrespective of their legal practices or ethics, their whole framework hangs on the premise of attracting people who are desperate for easy money and the dream life….
….If you’ve got a solid job which pays well, you’re not going to be leaving it for this “dream” being sold. Once again, you could debate the ethics on preying on individuals in this financial situation all day.
The problem stems from how the lifestyle is marketed. These days it isn’t uncommon to see people peddling products online showing their glamorous lifestyle and selling some course or product which promises you can do the same.
The simple way the model works is that you make money from the products you sell, as well as the number of people under you. So, the more people you attract to join the team, the more money you make. This leads to many glamorizing their lives in order to attract suckers….sorry….”distributors” to their teams.
ETHICAL ISSUES OF NU SKIN
Here’s an interesting quote from the Federal Trade Commission in the US:
“Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money”.
See the similarities?
The fact is, you DO make money from products you sell. However, there is nobody within the Nu Skin structure making significant amounts of money solely on the product. They are making money because they have many people signed up in the layers below them.
The way Nu Skin gets around this is by making their structure so complex that it is difficult to get any specific concrete evidence to argue that they are 100% a pyramid scheme. I personally land on the side that believes most MLM companies are just Pyramid Schemes who manage to dance around the law.
According to an actual Ex-Nu Skin Representative, the way Nu Skin gets around the Pyramid claims is by stating that their structure is only 6 levels deep, and therefore they cannot be considered as a Pyramid Scheme (evidence).
STATS AND FACTS
Nu Skin currently operate in 52 marketplaces worldwide and they have over 800,000 distributors worldwide.
All sounds very promising so far, right?
Sandie Tillotson is one of the co-founders of Nu Skin who started her business career by starting the Cambridge Diet, another “multi-level marketing company” who eventually went bankrupt. You can see a 1983 article about the demise of the Cambridge Diet here. But, I’ll give Sandie the benefit of the doubt, she might have changed her marketing strategies and ethics.
During the year ending December 31, 2012, approximately 89% of Nu Skin’s revenue came from its marketplaces outside the US, according to the New York Times.
In fact, Nu Skin has a shrinking market in their native United States. Active distributors AND active customers are diminishing.
On a month-on-month basis, only 14.19% of active US distributors actually earned a commission check, and the average commission paid out amounts to $2,112.05 PER YEAR. Yes, that isn’t a typo, the average commissions being handed out by Nu Skin is barely enough to pay your rent for a few months. So, let’s put that figure beside all the luxurious lifestyles being portrayed on Social Media…
LEGAL HISTORY OF NU SKIN
Nedra Roney is also a co-founder of Nu Skin, however, you won’t find her name listed on the website. Supposedly this is due to Roney being involved in prescription drug fraud in the 90s which Nu Skin would rather avoid being associated with. Further to this, if you search for Nedra on Google, you will find that in 2013, her husband was charged with sexual assault of an 18 year old (article).
DECEPTIVE INSTAGRAM ADVERTISING
I decided to write this whole blog post based upon my experiences of seeing their Instagram Advertising on a daily basis. As someone who used to work in the marketing industry, I find Instagram Marketing interesting. However, there was a girl I went to school with promoting this Nu Skin brand regularly, and some of the claims just didn’t make sense.
I’m not going to claim that all marketing tactics are 100% ethical and truthful. However, some of the claims she was making were just hugely skewed and wrong. This is what led me to do some research on Nu Skin, as I hadn’t really known much about them until I started to notice her chatting about them on her Instagram story.
I worked in marketing for around 7 years, and I currently work in the finance industry. The reason this specific ‘advert’/claim peaked my interest was because it was regarding Nu Skin’s performance on the stock market:
Let’s break down all the different aspects of this screenshot, as there is actually quite a lot going on.
NU SKIN – “LEADING WALL STREET”
The context behind the article she is referencing in the photo is that Nu Skin was the largest ‘gainer’ on a specific day (May 1st 2019). Their share price had gone up by 25%. So, they aren’t “leading wall street”, they just increased by a significant amount that day.
The reason they increased significantly that day is because that day was earnings reporting day. So, all companies on the stock exchange move erratically depending on whether or not their earnings met/exceeded/under-performed compared to expectations. In Nu Skin’s case, they over-delivered.
However, if we look at a graph showing the past year of Nu Skin’s performance, that impressive 25% gain doesn’t seem quite so impressive:
The area highlighted in yellow to the far right is the 1st of May 2019, where this 25% spike occurred. It closed that day at $64.32 per share. What the distributors won’t mention is that $85.46 was their peak share price in 2018, which means that at the top of this 25% spike, their share price is still down by over 32%.
Now, it is the 15th of May today, let’s take a look at the movement in their share price the past month:
So, their share price closed out at $52.42 per share yesterday. This shows that every day since that spike of 25%, the share price has gone downhill.
This is often the case for drastic changes on earnings reporting day. Many company share prices will erratically change, and then return to normal later in the month. So, this marketing method of discussing of how great their company is based on this 25% jump is complete bulls*** to be honest.
This is where my issue with Nu Skin lies. Your average individual who isn’t financially educated would look at that screenshot and think “wow, that’s impressive!”. They’re simply preying upon and manipulating individuals who lack the education to know any better.
UP THERE WITH APPLE!
The final part of the Instagram Story post is that Nu Skin is up there alongside Apple, because they happen to both be on this article’s list. I should also add that this screenshot is from an article written by Seeking Alpha, which isn’t an overly reputable source. However, I’ll ignore that.
Let’s compare Apple and Nu Skin and see how similar they are:
Apple Market Capitalisation: $912.84bn (and this WAS above $1trn at the end of 2018)
Nu Skin Market Capitalisation: $2.91bn
Apple September Quarterly Earnings 2018: $62.9bn
Nu Skin September Quarterly Earnings 2018: $0.675bn
As it is pretty clear to see, comparing these two companies is simply moronic. It is like comparing not even Apples and Oranges, that phrase would be too positive about Nu Skin’s comparisons. However, the marketing ploy here is that EVERYONE knows Apple is huge and successful. Marketing through association. Association through a questionable article source.
LET’S STICK TO STOCK MARKET ANALYSIS
Seeing as we are on the topic of the Stock Market, let’s have a look at some more comparable companies. It is silly to compare Nu Skin to Apple, as they’re in completely different markets, with totally different margins etc. So, I’ll give them the benefit of the doubt and compare Nu Skin to two skincare companies who are generally received as legitimate skincare companies: Estee Lauder & L’Oreal
Company
Nu Skin (NUS)
L’Oreal (OR.PA)
Estee Lauder (EL)
Share Price
$52.42
$236.30
$167
Market Cap
$2.91bn
$132.68bn
$60.43bn
Revenue
$2.69bn
$26.94bn
$14.57bn
EBITDA
$0.412bn
$5.88bn
$3.11bn
EPS
2.29
6.92
4.88
I didn’t want to do any deep financial comparison to Apple, as they’re not comparable companies. However, looking at other companies within the same industry, we can see Nu Skin still doesn’t shine. I won’t go into too much detail on the financial comparison. I may do a more in-depth analysis in a later post.
ARE THE PRODUCTS ANY GOOD?
It is perfectly reasonable for Nu Skin to actually have good products. I’m not questioning their actual products, just their marketing structure and ethics. However, I did do some research into this as well, as I’d seen a smattering of posts on Instagram claiming they’d won numerous awards.
ConsumerAffairs.com had an average rating for Nu Skin of 3.5 out of 5 stars. This isn’t horrific, but you’ve always got to take these websites with a pinch of salt, as it is very possible that a portion of the reviews aren’t genuine. Here are some of the more negative reviews:
My galvanic spa just quit working. It’s not worth… I got it for more than $400. I called customer service. They said I need to buy a new one. Wow… The life span is so short. I asked for possible repair but none.
This company is deceptive and immoral. I ordered one thing with a certain price and was charged another and was enrolled in an auto pay/shipment plan without my permission. Sad that a company has to lie to get business. Two different phone reps were rude and hung up on me. Additionally the product that was supposed to last 30 days lasted for two days. Shame on this company.
For Three billing periods, now Nu Skin has double charged our checking account causing several NSF charges. I contacted them when it first started and they assured me it would never happen again. Well, it did and it caused more NSF charges.
The issue generally doesn’t seem to be with their products. They do appear to have won some awards (albeit, not as many as they seem to claim). However, once again it is their ethics and bad business practices coming to the forefront.
HOW THE NU SKIN COMPENSATION SCHEME WORKS
There are certain requirements which must be fulfilled prior to being able to receive a commission check. One of these is managing to complete at least $100 in sales per month.
It should be noted that Nu Skin does not disclose the amount of retail sales made by distributors to actual regular customers. This seems like a questionable piece of information to omit for a direct selling company. This means that their sales figures are highly skewed by stock being sold to distributors.
It would be illegal for Nu Skin to disclose the structure of their distributors, as this would show a shape of a pyramid, and therefore imply that it is likely indeed a pyramid scheme. In fact, it is a part of Nu Skin guidelines to not show any illustrative structures and any illustrations should not extend beyond 2 levels deep.
It seems as though the main way for Nu Skin distributors to make money is simply by signing up more distributors below them, and then selling them products. Despite the figures not being disclosed, I’d bet money that very large portion of Nu Skin products end up being passed down the trail to distributors, as opposed to being sold to customers. In fact, I’d imagine most higher level distributors don’t even promote to customers at all, and simply sell stock to the distributors within their “team” below them.
CONCLUSION ON NU SKIN
In my opinion, Nu Skin is likely indeed a pyramid scheme. They have managed to jump through loopholes in order to avoid this label.
Everyone within the structure is making money by paying someone above them, in order to be eligible to sell stock to someone below them.
As a whole, they have historically used diseptive marketing tactics in order to convince those who may be desperate or unaware to join them. Their income claims are questionable at best, and those are the claims that are actually made public.
Over 85% of ACTIVE distributors do not earn a commission. This alone should be a reason to avoid this company.
Are there any other companies you would like me to do an analysis of? Leave a comment below, and I will start researching! Please Note: The viewpoint displayed within this article is simply my opinion, backed up by facts. I always recommend you do your own research prior to coming to any conclusions.
Update: 22/05/2020
So, I’m back to add some more to this post, after quite a long time since initially writing it. My viewpoint hasn’t really changed much, but I have been able to gain some more viewpoints from other people.
There is a Reddit community called “AntiMLM” which discusses NuSkin in quite a bit of detail, so I wanted to touch on some of my findings from there.
One of the posts I found quite funny was by a guy who works in the factory which bottles a lot of NuSkin product (and other similar companies), and the sad reality is that him being paid $16/hour is significantly better than the vast majority of NuSkin affiliates. The fact is if you’re a NuSkin affiliate, you’re not an employee of the company. You don’t get official work hours, or time off, or benefits like a pension etc. Because of his position within the factory, he was able to give some insight into some of the products.
One product (which im not aware of the name of) is claimed to be made from dead sea salt. However, in a 5,000 gallon batch of the product, about 1 gram of sea salt ends up in the mix. I mean, I’ve heard of dramatic marketing, but this seems ridiculous!
NuSkin are mostly famous for their “LumiSpa”. I must admit, I’ve actually tried this, as I was intrigued to see if their products were actually good. It is possible the products aren’t terrible, just the practice behind selling them, right?
Well, I have to admit, it isn’t terrible. But have you seen the price!? It costs a small fortune. So, I did some research, and found the following products on Amazon which I found to be equal, or even superior to the LumiSpa!
I found this video with John Oliver quite funny/interesting, in which NuSkin gets a special mention. It is definitely worth a watch!
It seems to me as though the word Pyramid Scheme has been replaced by Multi-Level Marketing, and I’m still unsure as to how they get away with it. In the same way that I’m unsure how the Church of Scientology gets away with what they do. The only logical reasoning for it is legal power, and they must pay a fortune in legal bills.
I mean, in 2016, NuSkin had to settle for $47 MILLION in a lawsuit which claimed that they had a pyramid scheme acting in China. What makes you think their set-up in China is any different to anywhere else in the world? The simple fact is they’ve managed to become so ingrained within the community in the USA and beyond, that they’re a bit like a cockroach you can’t remove.
During the video with John Oliver, you can see a clip of a man from another MLM style company basically admitting the company is a ‘Pyramid’…but it just isn’t illegal. Which roughly translates into the fact that they’re just jumping through loopholes to get around the law.
In other words…these aren’t Pyramid SCHEMES….they’re just Pyramid Shaped….makes sense…right?
Something I get asked quite often about is the validity of a degree in Accounting. You don’t technically need one to be an accountant, so why bother? Is it worth the time and effort?
I would always wholeheartedly recommend a career in which you become a qualified accountant. However, whether or not you precede that with going to University and getting a degree in the subject, is very much dependent on the individual.
Cost of University when Studying Accounting
For me, this is the core factor in deciding whether or not to go to University to study accounting. This will be highly impacted by where in the world you are. To some extent, I think America is more demanding for people to have a University Degree than other countries.
I am located in the UK, and it is quite common to pursue an Accounting Qualification, without having been to University.
But saying that, not all Universities are the same in the UK, and not all are the same cost. The University you decide on is going to determine how much Student Debt you will have to deal with later in your life. Coming from experience, this can be a real pain when you’re trying to progress with your life. For example, I didn’t realise until a couple of years ago how much student debt impacts your mortgage-ability. Despite the fact my student debt payments were not huge (£250-ish per month), it took about £50k off the amount the banks would lend me to buy a property. Luckily for me, I left University with about £15k worth of debt, which is nothing compared to some people. So, in my instance, I just paid off the £7k remaining on my balance, and got the mortgage. However, not all people will be that lucky.
Because I grew up in Scotland, University Education is mostly free. I got a ‘Student Loan’ to help with paying for accommodation etc. This is not the case for those going to University in England, for example.
While I wouldn’t say don’t go to University if it is expensive for you, I do think it is a factor to think about. You could be working for the Big 4 straight out of school for £20-25k a year, instead of getting £25k a year of debt.
Hire-ability
Having a degree in Accounting does improve your ability to be hired, and that’s a fact. Many people I’ve worked with who didn’t go the University route have tried to convince me otherwise, but the harsh reality is that if two contenders for a job are relatively equal in most areas, but one has a degree…the employer will pick the individual with the degree most of the time.
Some employers will demand that people applying for jobs have a degree, while some do not care. I do think by the time you have acquired your Chartered Accountant or CPA status, it does become less important to some extent (as these qualifications are infinitely more difficult than University). But, it is still a factor.
Long Term Career Goals
Do you even want to be an Accountant in the long term? For example, I am a qualified Accountant, but my day-to-day job does not directly involve Accounting work. I work with a lot of numbers, and I review some accounting implementation. However, this is mainly more from a ‘review’ point of view, than actually performing Accounting work.
My point being is that I think if you have no wishes to become a fully-fledged Accountant in your career, and just want to benefit from the foundation that becoming a Qualified Accountant gives you in your future career, then having an Accounting Degree is even less important.
Furthermore, you should really consider whether the life of an accountant is really something you want to aspire to. Especially when working for “Big 4” firms, you can expect long hours with little reward in the short term. I wrote a post about the realities of Big 4 busy season.
Accounting Salary Benefits
There can be some slight salary benefits to having a degree, rather than going into the world of Accounting straight from school.
For example, when I landed my first Big-4 job after University, I was paid £25,000 per year. Comparatively, my non-Uni colleagues at the same level were paid £20,000 per year.
Once you become fully qualified (a ‘senior’ in my firm) then you are all on a level playing field. But for the three years leading up to this, you are always paid at least a little bit more than your non-University Degree counterparts.
On top of this, I was also offered a sizeable 0% finance loan (£7,000 I think) by my company when I first joined to go towards my student debt (not that I used it on that, of course…) While those which joined the firm straight from school were not given this.
Career Flexibility
While you may have a degree in Accounting, it doesn’t mean you need to go into a career in Accounting. But it does give you access to a whole swathe of potential finance careers, which those who didn’t go to university might have to work a little harder to get access to.
Because you can prove you have at least a good understanding of finance due to the fancy piece of paper you got when you graduated from University, employers will be more likely to interview you for finance roles with some element of confidence. As opposed to a School Leaver who says on their CV they’re interested in finance. While technically the school leaver could know just as much as you, the unfortunate reality is that employers take a degree certificate with my certainty than a claim of knowledge on a CV.
