Accounting Firms to Buck Hiring Trend
Recession or not…companies must file financial and tax reports. That’s good news for accountants as economic uncertainty continues to plague countries around the globe. Here in the U.S., as layoffs seem to dominate headlines, accounting firms are expected to buck the hiring trend, according to Dow Jones/AP.
Right now, as a growing number of companies attempt to cut costs and struggle through the recession, many are realizing the importance of good financial controls which requires the expertise of accountants. Moreover, the wave of accounting scandals at Enron, WorldCom and Tyco earlier this decade paved the way for new regulatory reforms such as Sarbanes-Oxley that demand accounting skills. As a result, firms today are under greater scrutiny to be clearer with financial statements, audits and tax reports, argues Dow Jones/AP. The report goes as far as to say that quality reporting may be even more important during periods of distress and uncertainty. AccountingWeb.com echoes this view, stating that “Given the heightened regulatory environment in which we operate mastery over the hard skills of being a Certified Public Accountant is more important than ever before.”
The Bureau of Labor Statistics also states the employment of accountants and auditors is expected to grow at least 18% by 2016 – that’s faster than the average rate of growth for all other occupations. The agency cites “changing financial laws, and corporate governance regulations, and increased accountability for protecting an organization’s stakeholders” as key drivers of this growth.
Amid the trend, executive search firm, A.E. Feldman says today’s accountants are emerging as financial managers and leaders within their organizations. Right now as companies look to cut costs and continue to be confronted by the increasing complexities of changing tax laws and regulations there is a heightened focus on hiring qualified accountants. A. E. Feldman reports that firms are showing strong interest in professionals who can help their companies reduce inefficiencies and enhance profitability as well as those who have a familiarity with enterprise risk management applications. The positions currently in demand include staff and senior accountants and credit and collections specialists. Existing opportunities include, tax manager jobs, audit jobs, international tax jobs, and business valuation jobs.
Tax & Consulting Practices Improving
Corporate tax and financial executives continue to be confronted by the increasing complexities of changing tax laws and regulations. The pressures of complying with new tax regulations are forcing most companies to focus on their effective tax rate and their sustainable tax rate. Tax departments must devise plans and practices to keep the effective tax rate as low as possible and boost efforts to comply with rulings such as FAS 109 and Fin 48.
As new rules place more demands on tax departments, each of the Big Four cite their tax practices as one of the fastest-growing areas in the business, according to Dow Joines/AP. In fact, the report states that Ernst & Young expects to hire 1,100 employees for its tax division - up from 350 five years ago.
The firms also report that their advisory/consulting areas are hot, according to Dow Jones/AP. The firms say the reason for this growth is an increase in work advising companies on crisis management, performance improvement, governance, risk and compliance, and financial or technological effectiveness, the report notes.
Demand Growing for International Expertise
Aside from increased regulation, globalization and new technology have also made the job of accountants increasingly demanding and complex. “Firms are putting an emphasis on the need for candidates who have an understanding of international finance and cultures, and those who speak foreign languages,” according to Dow Jones/AP.
In fact, despite concerns over the costs of international assignment programs and ongoing trepidation about the weaker global economy, international assignments remain on the upswing, according to the results of KPMG’s 2008 Global Assignment Policies and Practices Survey.
The vast majority, 83% of the 430 HR executives surveyed by the International Executive Services (IES) practice of KPMG, expect the number of international assignees from their organizations to remain the same or increase over the next five years.
“Many organizations are talking about cost reduction in today’s marketplace, but we continue to see organizations investing in international assignments and diverse assignment types because there continue to be real business and developmental reasons to pursue them,” said Achim Mossmann, Managing Director of Global Mobility Advisory Services in KPMG LLP’s IES practice. “There is an understanding that when competing in global markets, global experience and expertise are critical to the success of the organization and employee.”
Business and tax issues have become more intricate thanks to language barriers, diverse cultures, different currencies and technology as well as complex international tax laws. These growing demands have placed a significant burden on tax departments. Mitch Feldman, President of A.E. Feldman, says, “The pace of globalization is accelerating and it’s creating demand for accountants and finance professionals with an international perspective and expertise.” As a result, firms are staffing up to ensure they find opportunity and create value in a variety of complex overseas tax environments.
“Globalization in the 21st century has resulted in an even higher demand for businesses to send the right talent to the right place at the right time,” adds Mossmann. “As more and more companies compete globally, conducting business in regions all over the world requires that international assignment programs not only have more flexible assignment policies and assignee logistical support, but also the right internal stakeholders and processes in place to manage the higher corporate and individual risks associated with cross-border business activity.”
Are you working in accounting? If you want to grow your career or your company’s bottom line, contact A.E. Feldman’s President, Mitch Feldman, now. Find out more about accounting jobs today!
