Introduction
This discipline investigation is a process of examining the trends, responsibilities, and possible career paths in the accounting field. By conducting the discipline investigation, my expectations are clarified. I am encouraged to add courses that will increase my employability.
I chose to pursue a Bachelors degree in accounting because of the social recognition that financial managers have in public. Financial managers have the likelihood to become general managers or CEOs in a company if they have an accumulation of work experience from different firms.
Most career paths allow employees to attain managerial positions depending on their contribution and experience. My perception was that accountants start at a rank that is very close to the top most position. It could be two or three steps to the top depending on the size of the company or department. It increases possibilities of being the general manager or CEO, and a higher salary package.
Those who study commerce or marketing have to go through many stages. I thought for accountants to succeed, the skills needed are numerical accuracy, and paying attention to detail. An accountant does not have a sales target like some business-related careers. The first job may also start with an attractive paycheck. My expectations before the discipline investigation were that financial analysts have less work but receive a higher pay than most careers. I believe I am observant enough to recognize small changes in trends.
The US has conformed to IFRS (International Financial Reporting Standards) standards from GAAP (U.S generally accepted accounting principles). International accounting standards were found necessary as part of adapting to the global market structure (Paul & Burks 3).
Globalization has resulted in organizations setting business in several countries. Organizations operating in several countries need standardized financial statements and reports. The chances of getting a job in any country increase because accounting policies have been standardized globally. There is a global market requiring the services of accountants. I believe I will always be employed.
My subject is known as Christine Tamura. Currently, she is an electronic banking analyst at the Bank of Hawaii in Honolulu. She has over 20 years experience in the financial sector. Tamura chose to study accounting because she had recognized her mathematical skills in high school.
She points out that written communication skills provide an advantage. I have gained the inspiration that written communication skills are very important in the financial field. Ability to handle accurately large quantities of numerical data is necessary for a satisfactory work performance. Critical thinking and problem solving skills may be necessary for an exceptional performance.
Background and career path
Tamura’s first job was to work as a staff accountant in the Prudential’s Western Home Office – Department of Treasury from March 1994 to April 1997. The first job position was an opportunity which matched her qualifications. She obtained a B.S., Business Administration (Accounting major) from the California State University. She has computers skills in programs such as Excel, Access, and Lotus among others.
The first job provided her with 3 years of work experience in the accounting field. Sweeney, Bame-Aldred & Thornburg elaborate that an accountant who exchanges firms “before attaining two years of experience may be viewed with suspicion” (9). Tamura had the 3 years work experience with the first organization. She was exposed to the Billing Department, and reconciling accounts which gave her an advantage to fill the quality auditor position with an insurance company.
In the first job, she knew she could adapt quickly to fit in areas that needed additional training. She said, “There is no training, you just dive in.” Adaptability was a very important skill as much as it is today. The first job provided a financial analysis career path which she had followed consistently to the current job position. Sweeney, Bame-Aldred & Thornburg discuss that “employment with a big firm is an indicator of quality” (9).
She has more than 20 years experience with a big proportion of the time spent in financial analysis. Her education qualifications and her experience in financial analysis make her fit her current position. I learn that I will need to find general accounting staff positions before seeking specialist positions.
Tamura made me recognize that the most important requirement to enter the field is an accounting degree. An accounting degree is the minimum requirement to be considered to fill a position in the financial field with a medium-sized or large firm.
Other qualities and skills such as analytical skills and communication skills are essential for better performance after meeting the minimum requirement for education level. In a job interview, having some analysis experience promotes a candidate’s employability. According to Tamura, the banking industry is much concerned about analysis skills. Tamura explains that she had to lift a 25 lbs weight in an interview. It shows that physical fitness is also valued in the workplace.
Knowledge on using computer software, such as Excel, Word, Outlook, and Access, is necessary for job consideration. A ‘ten key by touch’ indicates high speed typing skills. Koumbiadis, Conway & Angel explain that “accountants face the challenge of standards overload, and the need to keep pace with the explosion in technological advances” (2).
Analysts use assistive software which requires them to update their training on a regular basis. The standards overload was a retaliatory action from the accounting standards board and organizations to avoid unethical behavior committed by accountants in the past. I recognize the need for continuous training in upcoming technological devices, and software.
Financial analysis is generated at the end of a particular period such as quarterly or annually. The complexity increases with changing accounting policies that approve one approach after another. Jesswein (3) discusses that financial analysis involves complex and large volumes of data. The management team uses the financial analysis reports to find reasons for good or bad performance. They give direction on how to enhance good performance or correct the bad performance.
Problem-solving capabilities may increase a financial analyst’s work ratings among the management team. There is a need to capture the audience’s confidence through financial reporting. The job expectation in the field is that I need to have good communication skills to give good presentations. I need to do a thorough analysis, and make proper preparations to gain confidence in front of the top management team who will be my superiors.
One of the surprises in the financial analysis field that Tamura met is the lack of additional training by the company. The company expects a financial analyst to use his/her accounting knowledge to adapt to any new job descriptions that may occur. Tamura encouraged me to take many courses that are related to accounting to minimize the effect of surprises. Another surprise is found in salary distribution.
There is no significant difference in the salary amount earned between those with undergraduate degrees and postgraduate degrees (Sweeney, Bame-Aldred & Thornburg 10). The remuneration ranges from $40,000 to $80,000. It means one can have a high salary but low salaries are also possible. I expect a wide range of salaries.
Roles and responsibilities
Tamura’s currently works as an electronic banking analyst. Her job description includes analyzing ATM performance, providing interpretation of results, and giving strategic direction. She provides insight on the automated billing system to increase efficiency.
She researches and resolves financial discrepancies that occur with other financial institutions, and processing networks. She prepares and processes checks and internal GL tickets to clear/offset settlement, billings, and write-off on various electronic-banking products. Bales & Fox state that “to combat fraud, prevent it by understanding the early signs of fraud” (2).
They elaborate that it is necessary to detect fraud early to be able to deal with it properly. This calls for a continuous monitoring and analysis process. An e-banking analyst has to pay a high attention to detail to detect discrepancies. It also requires use of assistive software to detect irregularities.
Tamura holds the second highest job position in the financial section of her branch. The Bank of Hawaii is organized in six sections. These are retail, sales, operations and technology, administration and legal, accountancy, and risk management. The accountancy section has only one department known as control & accounting (Bank of Hawaii, chart).
Accountants may fall under four groups. These are management accountants, government accountants/auditors, public accountants, and internal auditors (A look at accounting careers, par. 5-8). Tamura position falls under management accountants. She provides the management team with an analysis for decision-making process.
For a financial analyst, the minimum requirements are the 4-year-course accounting degree, and 2 years of experience in a banking sector. Tamura has more than 13 years in the banking sector. She has spent most of these years playing roles that relate to financial analysis.
The basic computer training application packages required is Excel, Access, and Word. Microsoft Outlook may also be needed for the Local Area Network (LAN) system. Cory & Huttenhoff (5) explain that the most preferred degree for private firms was the 120-hour bachelor’s degree in accounting rather than the 150-hour bachelor’s degree. An accounting degree is more preferred than a degree in finance, business administration or information systems.
CPA is considered the most relevant certification for accountants though it may require 150 hours in some states. It is obtained after a degree in accounting in some states. Employers think that increasing the number of learning hours after the 120-hour training does not have an impact on an accountant’s quality.
Newly signed accountants may generate positive ethical perceptions from their audience. Newly staffed accountants have a good rating because studies indicate that there is “no relationship between ethical perceptions of newly staffed accountants and unethical behavior of corporate leaders” (Koumbiadis, Conway & Angel, 10).
It gives confidence to newly staffed accountants during presentations. Cory & Huttenhoff (6) claim that ethics is the second most important topic to cover in college after intermediate accounting. Without ethics, the entire profession is at risk. Integrity is essential. Otherwise, accounting reports would lose their credibility. From this part, I learnt that an accountant’s ethical behavior is the second most important quality after accounting knowledge.
The respondent faces the biggest challenge when they are going through a system conversion. They are required to develop new reports within a short period. Changing the system means changing the vendor system or procedures in electronic banking. It involves analyzing and transferring reports from the old system into the new system.
Despite the challenges of shifting into a new system, they are meant to provide better solutions. Burks, Lewis, Paul & Daniel (4) discuss that monitoring software may solve the problem of documentation required by the legal system. By updating electronic banking tools, the procedures are able to enhance security, and avoid losing the documentation.
The amount of work during system upgrade is large but it is aimed at increasing work performance. It also reduces the effort needed to meet exceptional work performance. Her team has to ensure that the new system functions as planned. When an automated system is faulty then it keeps on generating faulty results.
It requires multiple test runs. An effective system is good for workers. Customers’ satisfaction level also improves with a new operating system. In the ATM and e-banking section, the banking sector faces high competition. A bank may lose its competitive edge if it does not upgrade to match emerging trends. I learn that a system change may involve a lot of work but it is necessary for better services.
Financial analysts may face the challenge of delivering bad news. Bad news is a finding that portrays that business opportunities may decline or profitability may reduce. The problem of delivering unfavorable findings is likely to happen with non-professional investors. Li & McDowell (9) explain that investors may judge an analyst’s attribute, such as investment-banking relationships, rather than the findings of his/her report.
The investors who are already in business respond more commonly with the attribute effect than prospective investors. They may ignore important factors such as causes of the outcomes. It may require a good report that emphasizes the study of a trend, outcomes, and causes among other factors that create a situation rather than the conclusion of the report.
Reports are presented to the management team/board. The management team has an average sophistication level that is higher than the average consumer sophistication level. A higher sophistication level means higher demands for better explanations. They also require more facts and references to win their approval. Tamura works for a highly competitive market segment.
Tamura presents her findings to a group of professional investors. This may not always be the case, sometimes a financial analyst may work for non-professional investors. I need to be prepared to distinguish my audience, and highlight the most important parts of an analysis report.
Communication skills
Most financial analysis is based on periods which may reduce everyday’s work. Daily work may include making updates about changes in financial statements. Financial analysis is generated at the end of a particular period. The target for writing communication includes other financial institutions, and the management team. She needs to develop researches, and resolve discrepancies that may emerge between the bank and other financial institutions.
It may require documentation which can be printed or present as a soft copy. She may be required to prepare PowerPoint presentations to summarize matters to the top management team. They may be used as an aid to her presentations.
Cory & Huttenhoff claim that critical thinking is “given the highest priority followed by written communication” (6). One of her roles is to investigate, analyze and report on changing trends to management to minimize losses on ATM related issues. She is mainly involved in developing reports. The reports may be generated according to regular intervals set by the company. Her performance improves by providing possible strategic direction for her organization. It requires critical thinking and problem solving skills.
From her description and nature of her work, speaking and listening are the most important oral communication skills. They are used during presentations about reports, and findings. Her advice was to attend speech classes to be able to give good presentations after making analyses, and developing reports. Listening skills are important for one to be able to cope with criticism. Listening is also necessary to identify parts that require adjustment in a report.
Cory & Huttenhoff (6) discuss that oral communications was ranked fourth in the priority list. That is, after critical thinking, written communication, and interpersonal skills. Tamura describes that one should expect criticism from co-workers and the management. Interpersonal skills help an individual to respond positively to criticism. They assist employees to achieve good work performance within the teamwork.
Reading skills are also important in the financial analyst position. A financial analyst should be aware of market trends, and changes in consumer preference to get some ideas about solving business problems. It is necessary to go through recent market descriptions from specialists in journals, magazines, newspapers, and websites. From reading reports from other analysts, the financial analyst is able to understand investor behavior, and consumer preference (Li & McDowell 9).
For example, the analyst may understand the investors’ reaction to unfavorable reports, and analysts’ responses to nonprofessional investors’ subjective judgment. Investment requires continuous learning. A good part should involve learning from other people’s experiences. Investment mistakes can be very costly, and may act as a barrier in an analyst’s career path. There are benefits of pioneering in a trend before the idea diffuses to the entire market. Learning trends early may be beneficial when making decisions.
Conclusion
The discipline investigation has provided more insight on the roles and responsibilities of a financial analyst. Tamura had fewer responsibilities in her first job compared with her current job. As one gets higher in the rank, roles and responsibilities increase. I have learnt that critical thinking and written communication are given the highest priority in the recruitment process.
Tamura has been successful because of numerical skills, skills in computer systems, and work experience. I have also learnt that computer knowledge in Excel and Word are essential for a beginner in the workplace. With the remaining time in college, I will try my best to add related courses that may enhance my level of adaptability.
Organizations expect accountants to change to new systems, sometimes without providing training for the change. Tamura’s career path has been progressive. She started in the general accounting staff before becoming a financial analyst. Her experience at the Treasury made her work easier at the insurance company. Afterwards, she has always done some financial analysis for firms that she joined. From these, I learn that financial analysis may start among other roles before one becomes known fully as a financial analyst.
Works Cited
A look at accounting careers. 2011. Web.
Bales, Kimberly & Terry Fox. “Evaluating a trend analysis of fraud factors.” Journal of Finance and Accountancy. 5.6 (2011): 1-12. Web.
Bank of Hawaii. Web.
Burks, Eddy, Stanley Lewis, Amanda Paul & Lee Daniel. “Using technology to satisfy the material participation requirement of IRC Sec.469.” Journal of Finance and Accountancy. 9.7 (2012): 1-7. Web.
Cory, Suzanne & Thomas Huttenhoff. “Perspectives of non-public accountants about accounting education and certifications: An exploratory investigation.” Journal of Finance and Accountancy. 6.6 (2011): 1-14. Web.
Jesswein, Kurt. “Analyzing financial statements with the potentially misreported cost of goods sold figures.” Journal of Finance and Accountancy. 6.1 (2011): 1-10. Web.
Koumbiadis, Nicholas, Grace Conway & Jack Angel. “Ethical perceptions of newly staffed accountants: an exploratory study.” Journal of Finance and Accountancy, 6.8 (2011): 1- 12. Web.
Li, Wei & Evelyn McDowell. “Investor affect, investor status and the influence of analyst reports.” Journal of Finance and Accountancy. 8.7 (2011): 1-14. Web.
Paul, Amanda & Eddy Burks. “Preparing for international financial reporting standards.” Journal of Finance and Accountancy. 4.9 (2010): 1-8. Web.
Sweeney, John, Charles Bame-Aldred & Steven Thornburg. “Pricing in the accountant labor market.” Journal of Finance and Accountancy. 4.7 (2010): 1-24. Web.