What does the role involve?

There are two main types of accountancy: financial accountancy and management accountancy.

Broadly speaking, financial accountancy involves keeping and analysing financial records, profit and loss accounts and tax returns. Management accountancy is centred around advising on financial planning and development; for example, the cost of expanding the business.

In both these branches of accountancy, you’ll keep detailed accounts and internal audits and produce regular statements on whether the company’s systems are efficient and cost-effective.

There are 3 sectors in which an Accountant can work:

Industrial and Commercial

You’ll provide a range of services to all types of businesses, from small local firms up to huge multinationals. You’ll help plan the company’s development, predicting costs, benefits and risks.

Private Practice

This involves working for a specialist Accounting firm that offers services to clients. You may work in a small firm, providing services to small local businesses, or for a much larger company – there are huge Accountancy firms which are used by multinational corporations.

Public Sector

Working for a public body such as the NHS, a university or a local authority, you’ll provide guidance on tax, raising funds, financial problems, management consultancy and financial ICT systems. You’ll be tasked with providing an efficient service working within budgets set by the government.

What are the requirements?

To work as an Accountant in any of these sectors, you’ll need a qualification from a recognised Accountancy body, which generally takes 3 years’ study on top of your degree.

For Industrial, Commercial and Private Practice, ACCA, ICAEW, ICAS, ICAI, AIA are the most popular qualifications.

CIMA and IFA provide qualifications for both Management and Financial Accountants working in Industry and Commerce, and also the Public Sector, but more often, Public Sector Accountants will hold the CIPFA qualification.

UK Accounting qualifications are recognised all over the world, so once you are qualified there is opportunity to work overseas.

How much can I earn?

Salaries depend on the type of organisation, qualification studied and job location. ACCA qualified Accountants usually earn more than CAT qualified, and if you work in London you can typically expect to earn up to 20% more than other areas.

In Private Practice, a graduate starting training can expect £18,000 - £25,000 a year, rising to £29,000 - £35,000 when qualified. Once you have acquired significant experience and perhaps an area of specialism, this can rise to £65,000 plus.

In the Public Sector, a trainee usually starts on £16,000 - £17,500 a year. Once qualified, they can expect £18,000 - £26,000. Senior Partner Accountants of large public bodies can earn as much as £60,000 - £140,000.

What does the role involve?

All companies and government departments must be audited by law. Auditing involves checking a company’s accounts are accurate and giving a true picture of their financial position.

Internal Auditors work for the company they are auditing, be that a business or a government department, preparing accounts for External Auditors to come and inspect.

External Auditors are based temporarily in the firms they are auditing, so the role may require travel and staying away from home. As an External Auditor you may work for an Accountancy firm, the National Audit Office (Accounts Commission in Scotland), auditing central government departments, or the Audit Commission, working with Public Sector organisations such as local authorities or the NHS.

What are the requirements?

You must achieve qualified Accountant status to enter the profession, ie CIPFA, ACCA, ICAEW, ICAS, ICAI or CIMA. A minimum of 2 A levels are required to train for qualification, although the majority of candidates embarking on training will be graduates.

The national audit bodies offer graduate training schemes, allowing graduates in any subject to train as Auditors and gain a Chartered Accountancy qualification. The National Audit Office has a 3 year training programme leading to qualification with the Institute of Chartered Accountants. Minimum requirements are a 2:1 degree and 300 UCAS points at A level or equivalent. The Audit Commission offers a 4 year training programme including qualification with CIPFA. Minimum requirements are a 2:2 degree and 240 UCAS points at A level or equivalent.

How much can I earn?

A graduate starting training can expect £18,000 - £24,000 a year, which can rise to £30,000 - £43,000 when qualified. A Senior Manager can earn £60,000 - £120,000.

What does the role involve?

Credit Controllers handle all liaison and administrative duties connected with hire-purchase transactions, and make sure the interests of both buyer and seller are protected.

They are responsible for opening accounts for prospective customers in accordance with the company's credit policy by investigating how credit-worthy prospective buyers are, drawing up hire-purchase contracts, and collecting deposits and payments.

Credit Controllers have the financial authority to accept or reject credit applications. In extending credit to businesses, they will review financial reports submitted by the applicant, interview representatives of the businesses, and review credit reports to determine the records of the firms in repaying their debts.

They must be able to interpret the legal terms and requirements of contracts to clients, and ensure all contracts are correctly signed by both parties. In some large organisations, Credit Controllers may even be responsible for establishing the company’s credit policy.

Credit Controllers have to check all accounts on a monthly basis. They must frequently contact customers who are unable or refuse to pay their debts, through writing, telephoning or sometimes personal contact. If these attempts fail, Credit Controllers may refer the account to a collection agency or enlist the services of a lawyer to take legal action.

What are the requirements?

There are no specific educational requirements, but the demanding task of chasing up outstanding payments requires an assertive yet diplomatic personality, combined with good communication and customer service skills.

How much can I earn?

This varies depending on location, but you can expect around £15,000 - £25,000.

What does the role involve?

The job of a Financial Analyst (also known as a Securities Analyst, Equity Analyst or Investment Analyst) is to write reports on companies, trying to describe the businesses and their opinion of the company's investment potential. They then summarise their report with a rating.

Broadly, a Financial Analyst assesses a company’s financial needs and strategies. Various forms of financial budgeting are a key part of the job. One of a Financial Analyst’s main purposes is to find ways to increase company profitability.

When working at public companies, Financial Analysts may also spend time justifying - or pushing for an increase in - the organisation's stock price.

Some Financial Analysts review potential acquisitions and sales.

What are the requirements?

Although there are no formal qualification criteria, Analysts usually have graduate level training in finance such as MSF or MBA degrees, or are qualified Accountants.

How much can I earn?

Around £25,000 - £40,000 starting salary for a Junior Analyst, plus potential for joining bonuses on entry and bonuses from 20% to 100%. You can expect £50,000 - £120,000 plus bonuses once you are an experienced Analyst.

What does the role involve?

A Finance Manager’s job is to provide sound financial advice to clients or colleagues in order to help them make good business decisions.

Budgetary planning carried out by the Finance Manager is vital in ensuring that a company knows how to plan for the future, in both the short term and the long term.

The work can take place in the Private or Public Sector, from small companies through to giant multinationals, and the precise duties of the role can vary depending on the size and type of the company.

In larger companies, the emphasis tends to be on strategic analysis, but in smaller companies the role is more centred around the collection and preparation of accounts.

The role involves responsibility for providing and interpreting financial information, researching and producing reports on factors influencing business performance.

You’ll conduct risk assessment, monitoring performance and efficiency, participating in strategic planning and formulating business plans.

Control of budgets and cash flow monitoring also fall under the Finance Manager’s remit, as does business modelling and forecasting, and pricing and competitor analysis. You may also be required to supervise other members of staff.

What are the requirements?

The role is open to graduates of all subjects, although a degree in a finance/business based subject (Accountancy, Economics, Maths, for example) may increase your chances of success.

Although graduate schemes nearly always require further study for professional qualifications, a degree in a relevant subject can lead to exemption from professional Accountancy exams.

How much can I earn?

Salaries vary enormously with experience, location, size and type of organisation worked for, but you can expect a starting salary of £17,000 - £25,500, rising to £28,500 - £45,000 upwards when qualified, and £55,000 - £80,000 upwards for an experienced Finance Manager.