Employment Outlook in Accounting in the Next Five Years

Introduction

I am writing in response to the requested research on the employment outlook in the field of accounting in the next five years to recommend career advice to potential clients.

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The employment outlook in the field of accounting is positive. This is because accounting is directly tied to the economy. The country has witnessed steady economic growth which has resulted in an increased demand for financial professionals. Opinion polls indicate that accounting is ranked as the third best job in the world. Also, it has more job opportunities as compared to other occupations. According to a study that was documented by Intuit 2020 the world has embraced entrepreneurship and as such the growth of small and big businesses has led to higher demand for accounting professionals (Intuit, 2011). The growth of the workforce is an indicator that more people are becoming taxpayers hence there is more paperwork which demands more accountants. The health sector continues to grow daily, and therefore more accountants are needed.

Big companies have shown important interest in hiring accounting majors. In 2013, Deloitte LLP and Ernst & Young hired more than 10, 000 financial service employees. Surveys conducted by the United States Bureau of Statistics reveal that there is expected to be a high number of job openings in accounting, both regarding employment and job turnover. There were 1,216,000 job openings in 2013. Since the economy has been steady and is now rising, it is expected that there shall be 1, 407,000 openings for financial employees in the year 2020(Corkern, Parks & Morgan, 2013). Provided the economy continues to rise, it is expected that the number of job openings shall continue to increase.

There is a wide range of employment options for those qualified accountants. The minimum requirement for employment is a Bachelor's Degree in the field. After gaining experience in the field, an individual may decide to take up a CPA course to make advancements in their career. Accountants have a wide range of areas that they can specialize in. The various fields of specialization in accounting include forensic accounting, fund accounting, tax accounting, cost accounting, management accounting and also financial accounting (Unegbu, 2014). Accountants find employment in business and ensuring services, processing, and manufacturing, scientific and technical services. Professionals work an average of 40.3 hours in one week, which is categorized as full-time employment. The standard working rate for other employees is 40.2 hours.

8.1% of accountants work full time. Most, if not all of the accounting graduates are absorbed into employment since the number of employment opportunities is high. The steady growth of the profession assures jobs and a steady salary. The average accountant may have a salary of $ 53,000 for a start whereas the accounting manager may have $67,000.

While venturing into the field of accounting, there are several ups and downs that are to be expected. The area of accounting has had its fair share of scandals that has contributed bad publicity towards the profession. At the beginning of the century, the collapse of companies such as Enron, WorldCom in the USA, HIH in Australia and Equitable Life Assurance Society in the UK led to the development of rules and regulations to regulate the field of accounting. This was because the companies were accused of unsound accounting practices. The field is therefore committed to the restoration of public trust since there are the policies that mandate strict adherence to ethics and regulations in the area.

Auditing is slowly being done away within the field of accounting. The change can be attributed to the technological wave that has swept the globe. There is less status associated with auditing and companies are beginning to focus on the costs that are incurred in every venture. Statutory audit for small companies has been done away with, and the same may be done for larger companies too. The few who are left in the field of auditing are grappling with the high competition since people are trying to secure opportunities to work with big companies. There is a higher preference for accounting positions because of the high job outlook associated with it. With the decline of auditing, there is bound to be increased competition for employment in the field of accounting since it is seen as the better alternative.

A positive outlook spells higher expectations for those who are venturing into accounting. Graduates should familiarize themselves with the shifting trends in the market and also equip themselves with good interpersonal skills to be able to withstand competition in the market. For the students who are taking Business and Management courses and are yet to settle on what to major in, accounting would be a recommendable choice. The field is wide and has good employment prospects. Specialization in a particular area would also be advantageous since current trends in the market show preference for people who are specialized in specific interests.

References

Unegbu, A.O. (2014). Theories of Accounting: Evolution and Developments, Income Determination and Diversities in Use. Research Journal of Finance and Accounting, 5 (19). Retrieved from: https://arxiv.org/ftp/arxiv/papers/1411/1411.4633.pdf

Intuit. (2020). Intuit 2020 Report. Future of the Accounting Profession. Retrieved from: http://http-download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit_corp_vision2020_0111v5.pdf

Corkern, M.S., Parks, S.B. & Morgan, M.I. (2013). Embracing the Future: What Can Accounting Graduates Expect? American Journal of Business Education, 6 (5), 531-538. Retrieved from: http://files.eric.ed.gov/fulltext/EJ1055009.pdf