Here’s the equation for today: Recession + Financial Meltdown = ? What does this mean for CPAs and financial executives? To help you understand both the challenges and rewarding opportunities of a career in finance and accounting, the AICPA Custom Media Solutions team invited thought influencers to share their insights on these hot button topics. Joining us this month (listed alphabetically) are: David C. Hisey, EVP and Chief Financial Officer, Fannie Mae; John Hudson, CPA, President, Hudson Consulting LLC; Denise Probert, MPA, CPA, Vice President of CPA Education, Kaplan Schweser; Thomas Vucinic, CPA, President, Becker Professional Review; and Carl Wright, CEO, Stephen James Associates.
Panelists, what is the most surprising aspect of today’s job market for financial professionals, particularly CPAs?
David Hisey (Fannie Mae): One of the most under-reported aspects of today’s job market for financial professionals is the importance of gaining an understanding of the company as a whole, not just one department. They have to understand how a company operates, as well as be able to communicate accounting and financial information effectively to a diverse group of key stakeholders.
John Hudson (Hudson Consulting LLC): A job search conducted today is different from a job search just a few years ago. More, CPAs are looking to online career centers as an integral component of a job search. Online career centers are like “dating services” between job seekers and potential employers. They connect recruiters with jobseekers based on a match of skills, abilities and opportunities.
Denise Probert (Kaplan Schweser): Today’s job market lacks well-rounded CPAs. Technical knowledge and skills are essential, but the market has an insatiable appetite for people with strong communication and critical-thinking skills.
Thomas Vucinic (Becker Professional Review): During tough economic times, with unemployment on the rise, the most surprising under-reported aspect of today’s job market is the number of job opportunities that still exist for CPAs. CPAs continue to “wear many different hats,” from Forensic Accounting with the FBI to Environmental Accounting within the oil and gas industry.
Carl Wright (Stephen James Associates): I’d draw your attention to two distinct items:
1. CPAs are not passing the CPA exam as early in their careers as they did 10 years ago; particularly those in public accounting. Ten years ago, many public accountants were pushed out of the Big 4 (Big 6 then) firms if they didn’t pass the exam within the first two years. Public accountants certainly didn’t get promoted to the senior or in-charge level prior to passing the exam as we see happening now; and
2. The tenure of financial professionals, particularly CPAs, seems to have shortened considerably over the years.
What are the hot CPA specialties today and why?
Hisey: The CPAs of today and tomorrow need to play a much larger role in leading and helping to execute business strategy. This demands strong technical experience in the following areas: audit, financial auditing, financial analysis, financial planning, financial reporting.
Probert: Internal audit continues to grow post Sarbanes-Oxley implementation.
Vucinic: The U.S. Securities and Exchange Commission has mandated that all U.S. companies adopt International Financial Reporting Standards by 2014. Furthermore, the SEC may allow certain companies to file their financial statements using IFRS as early as 2010. This will create huge opportunities for anyone with knowledge of IFRS. In addition, forensic accounting and risk management remain hot areas for CPAs as well.
Wright: I would also add non-reporting, but purely in technical accounting research positions in public as well as venture or investor-backed companies.
Which specific skill-sets do CPAs need for success tomorrow (think both hard and soft skills)?
Hisey: They need to have good client-facing skills and to be solutions-oriented in their approach.
Hudson: Historically, a CPA’s rise in an organization has been a function of their detailed technical and analytical skills. These are always important but not to the exclusion of seeing the big picture. Successful CPAs in the future need to seamlessly integrate their detailed technical/analytical skills with their more strategic and conceptual skills.
Probert: As the SEC moves towards adopting IFRS, CPAs will need to develop strong skills in these standards. This will require an education that provides a mastery of the international standards as well as a strong understanding of the appropriate implementation procedures.
Vucinic: However, many individuals entering the profession underestimate the importance of soft skills. An effective CPA needs to work well with clients, team members, supervisors and must, therefore, have excellent presentation, communication, and team-building skills. Further, effective CPAs need to exhibit a healthy skepticism and the ability to diplomatically challenge the status quo.
Wright: For small- and mid-sized corporate growth, strong corporate and personal tax experience blended with audit experience is best. A balanced sense of urgency, confidence and common sense are the most important soft skills for success. In addition, as the U.S. moves in the IFRS direction, strong communication and multi-lingual skills will become more important as well.
What are some useful career resources that many CPAs may not be aware of?
Hisey: Some resources that are not always tapped into include public accounting firm alumni associations and networking Web sites such as LinkedIn. In addition, another useful career resource that should always be a focus of CPAs, is the importance of identifying strong mentoring resources.
Probert: State CPA societies and professional organizations are a valuable resource for CPAs. They provide professional development opportunities and often provide members with access to a database of job opportunities.
Vucinic: There are many networking Web sites that provide opportunities for individuals to establish contacts that may benefit them for years to come. I would also recommend that individuals take advantage of training budgets and enroll in management leadership skills workshops. These workshops are designed to help improve the soft skills needed to be a successful CPA.
Wright: A well-respected local executive recruiter.
How is globalization affecting CPA hiring trends?
Hisey: CPAs are, and will continue to be, in high demand. As we continue to move toward adopting international accounting standards as common practice, global opportunities will become increasingly available.
Hudson: Certainly, outsourcing opportunities, the interconnectedness of our capital markets and the ability for a new competitor to emerge from out of nowhere underscores the fact that the world is getting much smaller. That’s about to change even more with the adoption of the IFRS. The implications to practicing CPAs at all stages of their career, students emerging out of accounting programs over the next five years, and to the CPA exam itself are immense.
Probert: CPA recruiting continues to be a full-throttle agenda item for CPA firms. The demand for CPAs is strong and will continue to be strong in the future. Those CPA firms that have an international presence have already been affected by global-hiring practices. As John said, these practices will continue to grow as we face the demands of implementing the IFRS.
Vucinic: Globalization, specifically the transition towards IFRS will create a situation where the demand for IFRS skills will undoubtedly exceed the supply. If you have these skills you can expect higher than normal job security and compensation.
Wright: I’m in complete agreement with my fellow panelists. I believe CPAs will need IFRS skills along with strong communication and multilingual skills.
Compared to the last decade, are CPAs more likely or less likely to be job-hopping over the course of their careers? Why?
Hisey: CPAs oftentimes make job changes in their career due to their desire to build out their skill-set. CPAs will continue to take positions at new companies, especially in challenging environments in order to gain the best, most diverse, hands-on experience possible.
Hudson: I think CPAs are going to be much more mobile going forward. This is currently being reflected in traditional benefit systems as they are being retooled to reinforce shorter-term contributions. One example is the disappearance of long-term DC pension plans rewarding long-term employment and the growth of incentive stock options where the incentive is much shorter term.
Probert: Today, most CPA firms have a fairly short and fast path to partnership. That has reduced the incentive to leave firms for faster career advancement in other firms. In addition, work-life balance initiatives have been created by most international, large, national, and regional CPA firms. This has helped retain valuable human capital. However, the demand for CPAs has been so strong that it is quite easy to find a position that better suits your personal and professional needs and also offers strong financial incentive to make a job change.
Vucinic: Basic economic principles rule here. As long as the demand for CPAs exceeds the supply, you can expect similar job-hopping to that of the prior 10 years. I have heard individuals question employee loyalty in the context of job-hopping. My response is always the same, “loyalty is a two-way street; give employees a reason or reasons not to pick up the recruiter’s call.” With today’s economic environment, the question is how long will demand exceed supply? It’s difficult to say, but CPAs are well-positioned even in these difficult times.
Wright: Many hard lessons were learned by workers and employers from the dot-com boom and subsequent job-hopping for equity positions. Most CPAs are looking for stability and long-term growth. I believe we will see a move back to longevity and stability.