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Financial Accountancy

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Keeping account of all financial transactions and preparing documents and accounts, to be viewed by both internal and external parties, is key for those working in financial accountancy. This career choice is often regarded as a strategic, administrative and support role, which involves extracting information from financial records and interpreting what these records mean in reality – including working with budgets and forecasts. Then helping the business operations to see whether they are meeting targets. In essence, financial accounting is about giving a true picture of the current business performance and financial status, which is always essential to forward planning. You might be reporting your conclusions and presenting them to shareholders and business stakeholders, potential investors, bankers, employees, trade creditors and government departments. Quite often, a Financial Accountant is the Finance Director of a company or public sector organisation. At this senior level, you would likely have overall control of the financial management systems, which includes the working capital and ensuring relationships with debtors, creditors and suppliers are maintained. Adapting to changes in the regulatory landscape, in the UK, EU and possibly further afield, is another element. You might also prepare and sign off the annual reports ready for publishing.

Salary

Trainee positions start at approximately £16,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £100,000 per annum.  This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.

  • Preparing regular financial statements and accounts, such as profit and loss accounts or income statements
  • Constantly monitoring your company’s financial performance, including business spending, costs and budgets, by extracting and analysing coded information
  • Using financial information to advise board members and directors on developments and strategic direction, and managers on daily financial decisions
  • Advising the business managers and stakeholders about future trends and economic challenges
  • Reporting on variances between actual performance and budget performance, recommending corrective action
  • Preparing and reviewing organisational budgets
  • Advising managers on all aspects of financial policy and control
  • Managing a team of accounting technicians and finance clerks
  • Ensuring the company is complying with all financial legal requirements, industry regulations, organisational policies and professional codes
  • Enjoy working with numbers
  • Logical and enquiring mind
  • Strategic awareness
  • Business and wider economic awareness
  • Accuracy and attention to detail
  • Excellent negotiating and influencing skills
  • Confident presenting information to senior board members and stakeholders
  • Articulate, able to explain complex financial information clearly to non-financial people
  • Clear communicator, both written and verbally
  • Self motivated and good at managing workloads
  • Assertive, with good management skills
  • Commitment to gaining professional qualifications and ongoing self-development.

Employers will usually expect candidates to acquire knowledge in the following areas, through training and relevant professional qualifications:

  • How to maintain financial records, accounts and associated documentation within your business environment
  • Recording and accounting for income and expenditure, including specific accounting techniques adopted by your company
  • How to identify and control risk
  • Operating a cash management and effective credit control system
  • Preparing trial balances and final accounts
  • The process for drafting financial statements that comply with relevant accounting standards and legislation
  • Planning and conducting good practice internal audits

If you want to become a financial accountant there are typically three main routes in.  Entry points depend on previous experience and/or qualifications:

  • Joining a graduate training programme, usually with a 2:1 degree or higher, and then undertaking a professional accountancy qualification
  • Trainee accountants, usually with A Levels, Scottish Highers or equivalent qualifications such as  Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7), working towards a professional accountancy qualification
  • Working up from an accounting technician / assistant post, possibly undertaking qualifications with the Association of Accounting Technicians (AAT), the Association of Chartered Certified Accountants (ACCA), the ICAEW (Institute of Chartered Accountants in England and Wales) or the Institute of Financial Accountants (IFA).  Some people may also undertake a Level 2 Certificate or Level 3 Diploma in Accounting offered by Edexcel and City & Guilds.

Apprenticeships can be a useful way to gain entry and to progress on in the profession:

  • Level 2 Apprenticeship in Accounting (England, Wales, Scotland and Northern Ireland)
  • Level 3 Apprenticeship in Accounting (England, Wales, Scotland and Northern Ireland)
  • Level 4 Apprenticeship in Accounting (England, Scotland and Wales)

Many people working in financial accountancy have a professional accountancy qualification from one of the UK’s accountancy bodies:

  • Association of Chartered Certified Accountants (ACCA)
  • Chartered Accountants Ireland (CAI)
  • Chartered Institute of Management Accountants (CIMA)
  • Chartered Institute of Public Finance & Accountancy (CIPFA)
  • ICAEW (Institute of Chartered Accountants in England and Wales)
  • Institute of Chartered Accountants of Scotland (ICAS)
  • Association of International Accountants (AIA)

The Institute of Financial Accountants (IFA) is a non-Chartered organisation, but offers training and qualifications specifically aimed at financial managers. This includes a Financial Accountant Diploma, aimed at people that support finance managers, and a Professional Financial Accountant qualification, for aspiring finance leaders and those working in managerial posts. These qualifications may have more relevance for people working in SMEs. CIPFA is often the preferred choice for financial accountants working in the public sector. See Public Sector Accountant profile for details.

Financial accountants may be employed by any commercial business or in the public sector arena. In smaller organisations, the financial accountancy function may merge with other aspects of business management. Financial accountancy jobs are dispersed throughout the UK. Many of the professional accountancy qualifications are recognised throughout the world and this may provide opportunities to work internationally.