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Accountancy jobs 'largely recession-proof'
Accountancy News |
23/12/2011
On the face of things, the continuing economic downturn and sluggish jobs market should be a concern for all professionals. This is not a time to be out of work - savings rates are low, the price of goods and services is increasing with inflation, and relatively few employers are hiring. Everyone is seemingly waiting for the next development, whether this is an Olympics-driven UK economic recovery, or the implosion of the eurozone and a descent into double-dip recession.
But that said, the outlook for jobseekers varies somewhat from sector to sector. While recruitment may be slow in most areas, demand is holding up in a select few. Accountancy, for instance, remains buoyant despite the ongoing economic uncertainty. Businesses and organisations of all sizes recognise the importance of financial experts in times of prosperity and of hardship, and this means there are always opportunities for skilled staff in the UK.
This was certainly the case during the 2008-09 recession when the accountancy jobs market remained relatively stable. Malcolm Trotter, chief executive of the International Association of Bookkeepers, pointed out that firms become even more conscious of their finances during an economic downturn. Anything they can do to improve the health of the bottom line, or simply gain strategic insight from the balance sheet, is important for struggling companies, he suggested. As such, businesses recognise the need to hire accountants to maintain up-to-date records.
Business journalist Tim Cooper believes the same will be true in 2012, even if the economy does begin contracting. Writing for the Chartered Institute of Management Accountants (CIMA), he claimed that a double dip would in many cases increase the need for talented finance professionals, as an early response mechanism.
Within the public sector, redundancies may have left some departments understaffed, meaning they need to bring in external accountants as consultants. Small and medium-sized businesses may also need to acquire accountancy skills on a shot-term basis, given that they cannot afford to keep a finance expert on the permanent payroll. There is widespread recognition of the positive role accountants play during difficult times, and this is helping to prop up demand.
The worldwide expansion of accounting firms also appears to be recession proof, with companies hiring on all continents to operate effectively in a globalised business world. It is not only the Big Four who are hiring either, other firms are continuing to increase their presence, particularly is emerging markets. So even if accountancy jobs are difficult to come by in an individual's immediate vicinity, there is always the option of moving to find work as a Plan B.
The economy aside, accountancy professionals play an important role in helping businesses to deal with complex rules and regulations. And with business executives acutely aware of the importance of regulatory compliance and good corporate governance, this is another reason to hire finance specialists.
Writing for CIO.com, Tim Reason noted that the steady stream of laws and regulations can make accountants' lives difficult, but this complexity actually works in their favour. The very reason businesses hire them is because of the specialist service they offer, one that cannot be carried out by a generalist who is already on the books. "If there was one silver lining to the years of post-Enron reforms and regulatory pressure, it was the near-guarantee of employment for anyone with accounting or finance skills," Mr Reason added.
Accountants will surely be hoping for a speedy economic recovery like the rest of us, even though they can stand to benefit from periods of economic difficulty. They would much rather be managing the finances with a view to organisational growth rather than merely survival. But either way, they can be relatively confident there will be strong demand for their services.
Posted by Jon Aspinell
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