Finance and Accountancy Industry Sectors
If you haven’t given it much thought yet – now’s the time to decide what area of finance and accountancy you might like to specialise in. The earlier you get started the better so read on to decide where you might like your career to head…
Jump to...
Accountancy Practice
Starting with the basics, an Accountant is the name given to any professional with a relevant, nationally recognised Finance qualification.
Of those of you who go into practice to train around 8% of you will end up in one of the Big 4 – and good for you! These, of course, are Deloitte Touche Tohmatsu, Ernst & Young, PricewaterhouseCoopers and KPMG. For those of you who don't fancy this path there are also many firms, usually run in partnerships, providing accounting services to various companies and individuals. The rest of the market is made up of small and medium sized firms (SMEs) across the UK, these guys tend to specialise in a particular type of work or local area.
At some point in your practice career you'll most probably develop a speciality. The earlier on in your career you decide which area you'd like to go into the better. The major areas of Accountancy include:
- Assurance
- Audit
- Corporate Finance
- Corporate Recovery
- Financial Accounting
- Forensic Accounting
- Management Accounting
- Tax
So there are a wide variety of environments where you can train as an Accountant. But there’s also a range of qualifications available and you need to choose the right one for your selected career path.
- To work in Public Practice as an Auditor you'll choose between the Institute Chartered Accountants of England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA).
- For industry and Commerce you'll be going for either ACCA or the Chartered Institute of Management Accountants (CIMA).
- Anyone who has an interest in the Public Sector will most probably be advised to sit the Chartered Institute of Public Finance Accountants (CIPFA) exams. You may also be given the opportunity to sit the CIMA or ACCA exams if they seem more relevant to the organisation.
Accountancy Practices take on graduates from all disciplines so a degree in Accountancy is not necessary. Strong academics are an advantage, however, and the Big 4 in particular tend to require a 2.1 in a good academic subject from a leading university. You'll also need good English and Maths GCSE grades. Employers in this sector will also seek strongly numerate candidates who are ambitious, analytical, logical, patient and persistent.
Back to top
Financial Services
Looking for a flashy car, massive house and designer clothes? Well you’ll be wanting to work in Financial Services. The Financial Services Sector is extremely competitive but can offer graduates a fantastic and diverse range of opportunities.
When finance and accountancy professionals tell you they work in ‘the City’ they’re most probably referring to the Financial Services sector, the hub of which is still seen as London. If you fancy working elsewhere in the UK Birmingham, Edinburgh, Leeds, Manchester and the Channel Islands also have booming financial centres.
Areas of employment within the Financial Services sector include:
- Retail Banks/Building Societies - mortgages, pensions, loans, insurance, shares, money transfers etc
- Investment Banking - corporate finance including mergers, acquisitions, bonds, equities, fund management, derivatives etc
- Insurance/Re-Insurance - financial protection against risk
- Financial Advisors - providing plans for people's financial future
- Brokers - buying and selling stocks and shares
- Compliance - ensuring an organisation meets industry standards parameters eg IFRS and Sarbanes-Oxley
- Unit Trusts - companies using portfolio management & other techniques to earn money for their investors
The banking and finance sectors offer some of the highest basic salaries and coupled with potentially very high bonuses. This makes them career options of choice for many graduates looking for jobs with big rewards. However, this is also matched with long working hours and stressful working conditions. High vulnerability to market conditions makes job security in this area low.
Many graduates choose to join a graduate training scheme that provides experience in different areas of banking and allows them to make a choice at the end of the scheme as to the area to which they are best suited. For graduates who do not attain a place on these programmes, many other attractive options exist within Financial Services.
Competition for jobs in the City is very fierce and most employers now ask for a minimum 2:1 degree along with a good UCAS points score. Completion of an internship is also highly valued by employers. In addition, it is advantageous to have a mathematical based degree - Accountancy, Economics, Engineering etc - although this is not an essential requirement.
Most crucial is your genuine interest in business and the financial world. You will watch the business reports on TV, read the FT and know how the FTSE index is doing.
Back to top
Insurance and Actuarial
The Insurance industry employs are 300,000 people in the UK. It comprises five sectors of business: pensions; insurance; life insurance; investment; actuarial work.
Insurance services cover a broad range of roles from selling policies, administering claims, analysing and calculating risks, setting premiums, fund management and processing claims.
Graduate entry positions in insurance are generally segregated from each other. This means that you generally can't move within a company from one role to another ie from a sales position to an actuarial role. Each type of graduate entry position will lead to different career paths within a given organisation.
Key graduate job roles in the Insurance sector can be divided into the following functions
- Underwriting - analysis of risks and setting premiums
- Accounting - ensuring all numbers add up and liabilities are met
- Broking - negotiating the best deal with Insurance companies
- Claims - administration of claims and resolution of queries
- Actuarial - managing risk by utilising mathematical and statistical probability rules to calculate financial rates
Insurance is a profession calling for graduates of all types with various talents, skills and knowledge. The type of degree needed to go into Insurance is not important however graduates need to show excellent commercial awareness. Certain subjects such as Economics, Law, Mathematics, Statistics, Business Studies and languages can be particularly advantageous. Commercial experience - for example experience gained in a gap year or post graduation - can prove to be a real asset when job hunting and is now routinely used as part of the recruitment process.
Back to top
Treasury
A Treasurer ensures that all financial resources are used as effectively and efficiently as possible and that all risks are closely monitored and managed.
Treasury departments tend to be found within large, major FTSE 100/250 companies and some medium size companies. While a leading international corporation could boast anything from 4 to 40 treasury staff in a department, a medium size organisation would have a Treasury department numbering between 1 and 5 members of staff. In other industry sectors and smaller size organisations, the position of Treasurer would be a "stand-alone" sole role.
Treasury vacancies attract innovative graduates. Most candidates will possess a good degree in a numerate subject and be willing to take responsibility for difficult decisions. Any degree discipline is acceptable although Accountancy, Finance, Economics or Mathematics would be useful. Working as a Treasurer can be a financially rewarding career and is an excellent stepping-stone to more senior positions in a company such as Finance Director or Chief Executive.
Recognised qualifications in Treasury are provided by the Association of Corporate Treasurers (ACT). These qualifications provide a full education in Treasury matters and an excellent general grounding in financial management. An employer may often support a graduate through the study process by paying the fees.
Having completed the Associate (AMCT) qualification, gaining a position in treasury will be a lot easier - especially through all the contacts you will make during the two years of study. There is then the opportunity to increase your skills by progressing onto the Full Membership (MCT) study programme.
Back to top
FMCG
FMCG stands for Fast Moving Consumer Goods. Basically it’s a category for companies who make their money selling low value goods at a very high volume. Think household items like food, drink, cleaning products etc and you’re pretty much there.
The FMCG sector is one of the fastest growing in the national economy and includes organisations involved in distribution, manufacturing and retailing of goods.
You’ll no doubt be familiar with some of the major UK players in the industry including:
- Cadbury Schweppes
- Gillette
- Kelloggs
- Unilever
- Tesco
- Gillette
- InBev
- Scottish & Newcastle
FMCGs cover a large percentage of the business world in which graduates are able to gain excellent rewards and benefits. Some FMCGs offer fast-track career progression via training schemes. In most cases you can specify whether you want to specialise in a commercial (marketing, sales etc) role or an operational (finance, IT) area. In other cases, graduates join a general scheme designed to test their ability in different fields. By the end of the training period, you'll learn which role is most suitable for your skills.
Back to top
Manufacturing
Manufacturing is critically important to the UK's economic vitality and sustainability. According to the Department of Trade and Industry (DTI), manufacturing accounts for about 20 per cent of gross domestic product (GDP) and employs just under 4 million people. Established Manufacturing organisations include:
- GlaxoSmithKline
- Michelin
- Pilkington
- Toyota
- Xerox
Manufacturing companies welcome applications from graduates of all disciplines. They all have commercial, marketing, purchasing, logistics, finance, HR and IT departments that always require skilled employees.
Finance-related roles in the Manufacturing sector span all levels of experience and salary. As a graduate, you could enter a training scheme or work in an entry level role such as Purchase Ledger Clerk or Accounts Assistant. Once you have gained experience and/or attained a professional qualification, you could find yourself working as a Management Accountant, Plant Controller, Internal Auditor, Factory Accountant , Finance Director or Operations Controller.
Back to top
Public Sector
Excellent opportunities exist for recent graduates in Public Sector organisations such as: the Civil Service; Local Government; NHS; Police Service. The Public Sector has often suffered adverse comparisons with private business. Now with the Government's extensive investment programme and changing attitudes, the Public Sector offers many varied career opportunities in different working environments and represents a very popular and competitive choice among graduate applicants.
When applying for a Public Sector graduate vacancy, the following requirements are accepted as standard. A good 2:2 Honours degree should be sufficient along with strong communication skills. Additional language skills are an advantage. For posts in science, engineering, mathematical or finance related areas, a relevant degree will be needed together with the required A levels or UCAS points desired.
Finance-related roles in the Public Sector span all levels of experience and salary. As a graduate, you could enter a training scheme or work in a junior level role such as Payroll Officer, Accounts Assistant or Ledger Clerk. Once you have gained experience and/or attained a professional qualification, you could find yourself working as an Internal/External Auditor, Management Accountant or Risk Manager. At present, there seems to be a trend towards lots of audit related vacancies in the Public Sector.
Back to top
Telecomms
The world's major telecoms companies are all resident in the UK owing to the UK's strength in technology innovation and design (R&D). Many of these companies actually have their worldwide R&D headquarters in the UK.
Although there are in excess of 250 companies offering telecoms services in the UK, the leading four companies are acknowledged as Vodafone, Orange, O2, T-Mobile.
The telecommunications market is evolving very quickly and the job market is moving with it. The recent well documented depression of this sector has ultimately led to a reduction in the number of graduates being recruited.
Finance-related roles in the Telecomms sector span all levels of experience and salary. As a graduate, you could enter a training scheme or work in a junior level role such as Credit Controller or Assistant Accountant. Once you have gained experience and/or attained a professional qualification, you could find yourself working as a Business Analyst, Internal Auditor, Advisory Manager, Financial Controller or Finance/Risk Analyst. As many Telecomms operate globally, you could find yourself travelling the world in an Audit, IFRS or Sarbanes-Oxley role.
Back to top