For a lot of people who are newly qualified, there is a great sense of relief. They can leave behind all those endless hours of study, the worry over the exams and can finally get their
“life back”, by spending more time with family and having a decent social life.
However, there is a lot to think about career wise. Newly qualified accountants, especially those from practice, are often at a crossroads in their career. While a lot of them will get an automatic pay rise, a job title that reflects their new status and the chance of promotion with their current practice, some won’t. A number of practices aren’t geared up to satisfying the needs of a newly qualified accountant or simply don't have the volume of work. Either way, being qualified opens up a lot of opportunities career wise and therefore might encourage you to move on.
If you qualified at an Accountancy Practice with ACA (or ACCA), you will have to decide if you want to further your career in practice or move to a role in industry. There is no right and wrong decision and it’s almost 50/50 in terms of statistics of who does what. Let’s have a look at some of the options
Should I stay in practice?
Many Qualified Accountants in practice, enjoy the client interaction, the diversity of work and the chance to work across a range of sectors with clients of varying sizes. If this is your “sweet spot” a move into industry may not be for you. Even if you wish to stay in practice, you still have a number of options.
Should I stay at the same practice?
A great career plan may be staring you in the face with your current employer – but it's definitely worth defining a career path for yourself with your Partners. They will often be
more receptive to this than you think as they won't want to lose you. In some cases, even the action of wanting to leave and handing in your notice can result in a counter offer including more money and a better career path. At the end of the day, your employer may want a return on their investment rather than see you leave for a competitor.
Should I move to a rival practice?
You may like working in a practice but want a change of environment where a better career path is mapped out for you. Another practice may have larger and/or more interesting clients. They may offer the chance for a secondment into industry. This would give you some exposure into industry without generally committing yourself to that path
Should I change specialism?
You may well have specialised in a specific area during your studies, and want a change. This is a great time to switch into tax, audit, corporate finance, transactional services or any anything else that interests you. You may wish to study further. For example, you could do your CTA (Chartered Tax Advisor) Qualification.
Should I move to industry?
Moving from practice to industry gives you the opportunity to utilise your skills in a different environment where you can focus on the specific needs and financial requirements of the business you work in, rather than across a number of businesses. You would then have the opportunity to be part of the decision making process within an organisation. If you move to industry you can work in various roles including:
1. Management Accountants
A Management Accountant role is financial reports produced for the business owners and managers, generally monthly or quarterly, normally a Profit & Loss report and a Balance Sheet. This role usually sits within the head office or main finance team and provides the financial information that will ultimately be used by senior members to make decisions. This role is often a stepping-stone to a Financial Controller or Finance Manager position.
2. Group Accountant
A Group Accountant role offers a top down view of how the business operates; sitting within the Group function allows a greater overview of how the business works. These roles also offer plenty of opportunity to interact with individuals at a senior level.
3. Financial Accountant
A Financial Accountant role has a more technically orientated slant. These roles are perfect for someone looking to adapt and apply their technical experience gained in practice within the commerce and industry environment. This role is a stepping-stone to a Financial Controller position.
4. Financial Planning & Analysis
Financial Planning & Analysis is for the more commercially minded individual. An FP&A Analyst usually scrutinises the company’s finances looking for data anomalies, trends and deviations. This can then be used to introduce strategy for improvement and change.
What are the rewards of qualifying?
You are now hot property!! Qualifying typically sees a decent pay rise come into play, varying from company to company, and you may have also been given a new title to reflect your newly qualified status. You may be happy with both, one, or neither, but try to be objective about it. In terms of salary, it’s important to understand what the market rate for someone with your qualification and expertise is.
What should my next move be?
There is no right and wrong decision here and the statistics show that it’s almost 50/50 in terms of who leaves practice for industry. Remember too that staying in practice doesn’t have to mean staying where you are – there may be better career progression at another firm. If your plan is to move to industry, you’ll need to look at the financial rewards and future
progression as well as making sure it's the type of company and environment you’ll be happy in.
It’s also worth mentioning that if you leave a practice, especially for another practice, your current employer who has just funded your studies and training, may have a clause in your
contract regarding a “clawback fee”. To protect themselves, companies may want some sort of a post qualification commitment from you rather than you being able to use the training and study fees they provided to aid a competitor. Hopefully any salary rises gained, as a result of your new status will be able to cover any costs. Alternatively, your new employer may pay these costs to try and secure your services. Please bear this in mind when leaving but look at the bigger picture.
Whether you stay in practice or move to industry, the key thing is, you are with the right company with the right cultural fit and that you like the people you are working with. It’s also important that you are happy in your work, you have an opportunity to grow and develop new skills. Job titles are often arbitrary at this stage as they change from firm to firm, so don’t worry about the wording itself. It’s all about your skill sets at this stage of your career.
Why should I use a recruitment agency?
The reasons for using a recruitment agency are simple. While they can’t guarantee success, agencies are incentivised to help you find a job so it is in their interests to find you the most suitable role for you. While agencies can’t tell you what to do, you can use them as a sounding board. They can offer any specialist advice regarding your next career move, market knowledge and salary expectations.
They can manage the interview process for you, by offering interview advice including information on the business, the key personnel conducting the interviews as well as any information on the structure of the interviews such as testing. You may also find out who you are up against and the longevity of the interview process. If you are unsuccessful, they would be able to provide relevant industry feedback that you can take on board for your next interview.
If you are fortunate enough to get to the offer stage, agencies will handle any salary and benefit queries for you as well as managing any start date issues and onboarding. This may result in an agency negotiating a higher salary for you during a conversation with a client that you would naturally feel awkward about having yourself.
Applying for jobs directly can be a frustrating process for a candidate looking for work. You would generally only have a job spec to rely on rather than any knowledge of circumstances behind the vacancy and whether it is the right cultural fit for you. You may also never know why you were a no and you may not be aware of changing circumstances regarding the job. It is therefore unlikely in this situation that you would be able to take anything on board from that interview to help you elsewhere.
What type of recruitment agency should I use?
It’s advisable to use a specialist agency. If it's an accounts and finance role you are looking for, use a specialist in that field. An agency with knowledge and longevity in a given sector is worth its weight in gold.
Savant Recruitment has the knowledge and longevity needed for anyone looking for a role in accounts and finance. We can also offer key market knowledge, salary advice and information on everything from writing a CV to interview techniques and offer management. We can offer you advice on the best fit for you in terms of career progression and cultural fit. As a newly qualified accountant, you are now highly sought after so don’t settle for anything less than a role and industry that is right for you!!
I am here to talk so please call me at Savant Recruitment on 07946 496 675. Alternatively please email me at brett.lewis@savantrecruitment.com
