Gloomy Economy Spurs Bright Future for A&F

What do economic uncertainty, fiscal transparency, and IFRS have in common? They are all driving unprecedented job growth within the accounting and finance sectors. Learn why they gloomy economy has helped shape a very bright outlook for accountants and finance professionals.

Accounting and finance professionals are accustomed to reviewing and analyzing data to arrive at an accurate outcome. So, when it comes to contemplating the outcome the recession will have on the future for accounting and finance workers, consider these facts:

• Employment in financial sectors is projected to grow by 18 percent, resulting in 1.2 million new jobs.
• Increasing financial regulations and the need for greater accountability will drive demand for accountants and auditors, resulting in 279,400 new jobs in this occupation.

Without question, the accounting and finance profession stands to gain big, in the form of new job creation, stemming from complex regulations, greater fiscal accountability and a stimulated economy.

Potential Reform of Accounting Standards: IFRS
In November 2008, the Securities Exchange Commission (SEC) created and outlined a plan to convert the methods of accounting in the U.S. to the globally standard IFRS or International Financial Reporting standards, with most companies making the change around 2014. The switch to IFRS would in effect achieve a single set of globally-accepted accounting standards. While the official start of implementation has been put on hold, many organizations believe that moving to the IFRS is important in the United States to make companies’ financial statements comparable and give investors the ability to make better, more informed, decisions.

Regardless of when the SEC declares a set date, the new standards would require the use of a judgment-based system to determine the fair-market value of assets and liabilities, which will increase demand for accountants and auditors with specialized expertise.

Move towards Fiscal Transparency
Another significant driver of job growth for finance professionals is the increasing demand for accountability for protecting an organization’s stakeholders. The economic recession left the trust and integrity of companies badly bruised after exposing case after case of fiscal fraud and misconduct. This has led to greater emphasis on accountability, transparency and controls in financial reporting.

As a result of the increased scrutiny into corporations’ finances, accountants and auditors will be in high demand, particularly:

• CPAs to audit financial records more aggressively
• Internal auditors and management accountants to detect and remove fraud before audits and to uphold the necessary documentation procedures
• Forensic accountants will be relied on to spot illegal financial activity among a range of constituents – individuals, businesses, and organized crime rings.

Economic Factors: Globalization and Stimulated Economy
The fact is, the recession helped the accounting and finance economy in two ways – it ensured job stability during the recession because CPAs and other skilled professionals were vital to financial structuring in order to survive the economic downturn. And, it will continue to help stimulate job growth in the profession as the economy begins to rebound. How?

As more businesses are established, they will look to accountants and auditors to set up their finances, prepare their taxes and provide management guidance. Even struggling companies will lean on accounting firms or professionals to achieve effective cash management and risk management.

Lastly, the continued globalization of business will spur job growth for accounting services, particularly related to international trade and accounting rules and international mergers and acquisitions.

Conclusion
The sum of the parts is crystal clear. Economic uncertainty, fiscal accountability, and regulation reform all add up to a very bright future for those entering or currently working in the accounting and finance profession.