Compliance Emphasis Continues to Fuel Opportunities for Accounting Professionals
By Robert Half International
For accounting students planning on entering the workforce within the next few years, the future looks ripe with opportunity. This can be credited largely to the Sarbanes-Oxley Act of 2002, which has resulted in significantly increased workloads for public accounting firms and corporate accounting and finance departments. Globalization and general business expansion certainly are fueling the need for skilled accountants, but the more intense regulatory environment has markedly boosted demand for these professionals.
While accounting and finance students are no doubt familiar with the flurry of news reports regarding the Sarbanes-Oxley Act emanating in recent years, a quick review can be helpful in understanding how it is affecting staffing trends in the field. The legislation requires companies to adopt sound corporate governance practices and document and certify their internal controls for financial reporting. In short, Sarbanes-Oxley calls for publicly traded companies to have a system of checks and balances in place that helps reduce the risk of illegal activity. It also greatly increases the level of accountability for top management, who must attest to the accuracy of financial statements.
In the years immediately following the passage of the Act, public companies focused almost exclusively on getting their compliance processes up and running. In 2007, the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) issued new guidelines intended to help companies move forward in refining their processes. These include non-accelerated filers (generally small to medium-sized companies) that did not have to comply with the legislation before and now must comply for the first time. Significantly, the additional guidance will free up many accounting staff in firms of all sizes, allowing them to focus more attention on other tasks vital to the organization, such as helping management assess risk, determining the financial feasibility of growth initiatives and charting long-term business strategy.
Big and small firms need more help
The extra scrutiny placed on financial reporting has prompted many companies to add extra layers of accounting staff or hire outside firms to help accomplish both compliance-related and basic accounting work. One change in accounting practices brought about by the legislation is the separation of auditing and consulting services, which has created new opportunities for smaller, independent accounting and auditing firms. Larger firms like the Big Four, which typically work with large public companies, have had their hands full helping clients with Sarbanes-Oxley compliance activities and can no longer provide certain consulting services to these companies due to the legislation's restrictions. Therefore, these big players, which have dominated the accounting industry for years, are forging new relationships with, and referring business to, smaller firms in the United States and internationally, depending on the needs of their clients.
Accounting and finance salaries on the rise
Those preparing to embark on an accounting career are likely to find their skills will be put to use immediately. Plus, compared to accountants of the past, they can expect to enjoy greater exposure within and even outside of their organizations. That's because today's practitioners must often interact and collaborate with various departments, business units and clients worldwide, and handle a wide array of challenging tasks. Also, many will find their employers, in an effort to recruit and retain skilled accountants, are willing to invest in additional training and education for staff and offer generous compensation packages and other perks, such as hiring bonuses and flexible work schedules.
According to the Salary Guide from Robert Half, compensation is rising for most positions in the field, including entry-level jobs such as general accountant and bookkeeper. Some of the highest increases have been in public accounting. Professionals who have earned in-demand credentials, such as a certified public accountant (CPA) designation, could receive starting salary offers up to 10 percent above the market average.
Employers value technology expertise
Sarbanes-Oxley has heightened demand for accounting and finance professionals with software and information technology expertise. The legislation has pushed many companies to convert or upgrade their technology infrastructure to support new financial reporting and internal control requirements. Thus, companies seek accounting personnel who understand the financial and technical aspects of regulatory compliance.
Practitioners also need to develop new skill sets to keep pace with professional changes spurred by business expansion and globalization. Examples include the potential migration to principles-based accounting standards and fair-value measurements, the increasing shift toward enhanced business reporting, and the growing acceptance of eXtensible Business Reporting Language (XBRL).
Specialized talent in demand
As companies several years into compliance activities work to refine their processes, they are seeking professionals with highly specific skill sets. For example, more organizations today need forensic accountants, who are trained to help prevent and detect corporate financial fraud such as tax scams and money laundering. Also, more companies want compliance specialists with in-depth knowledge of SEC requirements who can help the organization stay on course with Sarbanes-Oxley compliance while also meeting other regulatory demands.
In addition, today's employers look for individuals who exhibit strong interpersonal or "soft" skills, such as verbal and written abilities, diplomacy and negotiation. Developing analytical and critical-thinking skills is particularly important in applying next-generation practices, such as principles-based accounting standards.
In a variety of ways, the 21st century regulatory environment has helped raise the visibility of the accounting profession. Today's practitioners are taking on greater responsibility and interacting with many levels of the organization, instead of being confined to the accounting department only. Many employers are eager to hire professionals who can bring something extra to the table, from strong interpersonal skills to the ability to think critically.
Source: Robert Half International