The majority of ACA NQ accountants have been on a pretty rigid career path since they entered the profession – typically three years of hard work in a specific discipline such as Audit. Once their training contracts are done, it’s often the first chance they have had to consider what comes next, and for many, the natural tendency is to want to leave all that financial reporting behind and head for the bright lights of commerce. After all, the grass is always greener, and they now have a sought-after qualification that hiring managers want. But is rushing into industry at the first opportunity the right thing to do?
Candidates often tell us that they want a more “commercial” role, often not fully understanding what that means. In the short term, they probably want to get their teeth into something more strategic than reporting, something that can “add value”, and they’re often disappointed to hear that most roles open to them still involve an element of financial reporting. It’s at this point, we always advise them to take stock and try to think longer-term about their ultimate goal because the decisions they make at this stage will almost certainly affect their career path in the future. If a candidate knows that all they want is to be an FD or a CFO in a blue-chip, then the question they need to ask themselves is what do I need to do to get there?
The reality is that most commercial leaders in any organisation will at some point in their careers have been willingly preparing financial statements and statutory accounts, knowing that this invaluable experience will provide a crucial competitive edge and become a stepping-stone to a more senior commercial role. Consciously taking a role for a couple of years that gives a thorough grounding of analysing a company’s operating performance and its financial position is more likely to lead to a better commercial role as a second move. Of course, this is a hard sell to someone who has done three years of audit, but it’s exactly this insight that a specialist recruiter can bring to an NQ’s career. Conversely, without considering the bigger picture, it may be that embracing what they have achieved so far and a move to another practice in the same discipline is actually the best career move to make.
A good recruitment consultant who works with ACAs will be able to map out every element of a next move, to align it with long-term career goals. They have relationships with line managers and can advise on company size, culture and fit. For some ACAs, the move into commerce can be a huge change, particularly when you consider they might be the only qualified accountant in the team when they get there. For others, they may find that the grass wasn’t greener and that even though they are technically in a commercial environment, their role has very little contact with business leaders and they are looking at the same accounts every month. In extreme cases, those who haven’t done their homework may even look to move back into practice.
Before you commit to anything, take time out to partner with a specialist recruitment consultancy that can work with you to confirm whether a commercial role is what you want long-term, and how you can get there. For a confidential chat about your future, contact us today.
It is fairly common practice for an employer to pay the study fees to enable a PQ candidate to complete their training on the job – earning while gaining valuable experience in an accounting or finance role. Understandably, the employer would like a return on that investment and so expects the employee to stay with them not only for the length of the training but also once newly qualified. To protect their investment, it is also the norm to tie the employee into a contract, the breaking of which would demand the repayment of some of those study fees.
The threat of this penalty payment has the desired negative effect on most candidates, successfully putting them off from moving roles. However, some don’t let it trouble them, grabbing a new opportunity with both hands if it’s the right move for their career. So, how do you make the decision to stay with the employer who facilitated your training or leave for a new opportunity?
As a recruiter, you might expect us to side with the client employer and urge a candidate to stay put, however, the employer has a responsibility to the trainee accountant too, and in most cases, it comes down to the experience that the candidate has had with the employer throughout the studying period.
For example, if an employer promised to rotate a candidate around different areas of the business to enable them to gain experience when in reality they were hired to fill a specific gap in a team, then a candidate might feel misled. Millennials in particular prefer to manage their own destiny and try multiple options before choosing their own path. If this proposition was sold to them but never happened, a candidate can feel trapped or, worse, let down by the employer.
If the experience with an employer is negative during qualification, then the same scenario will be present upon qualification – can a candidate trust the same employer to help them achieve their career ambitions? Will the options be there to gain more experience?
The employer has a duty to try its best to retain all candidates, beyond just the threat of repaying fees. If the average tenure for millennials across all industries is two years, then asking someone to study and work for up to three years just to reach accreditation requires more effort. Understanding the candidate’s ambitions, strengths and weaknesses, as well as communicating with them throughout the year, is vital. If not, then the ambitious PQ or NQ candidate has every right to look elsewhere.
Congratulations! You’re a newly qualified ACA. Although this is certainly a cause for celebration, we understand that the career options ahead can be daunting, now that you’re suddenly in such demand. And, for some – the paradox of choice can become all too much.
This is likely to be the first time there is a defining fork in the road with options in different directions, and the decisions you make at this stage could affect the rest of your career. Therefore, it’s worth spending some time to get them right, as well as talking to a specialist independent recruitment consultant to seek advice and guidance.
The most common dilemma is whether to make the move into industry from practice. We’ve blogged before about hearing, “I want a commercial role” from dozens of NQs who don’t really know what they mean beyond the grass is probably greener in commerce, and that they want a role with as little financial reporting as possible.
While it’s true that some candidates know exactly where they want to go, the majority don’t have an exact path mapped out. Additionally, some candidates can fall into the trap of choosing something that ends up not being the best option for them.
We are entering a unique market climate, which puts ACA’s in an excellent position. Currently, we’re in a candidate-short market, meaning that the demand for talent is incredibly high – leading companies to have even more open roles; remember what we said about the paradox of choice?!
This comes with a lot of positives – the most notable being an uplift in salary in a shorter time period, or starting off with a higher basic salary than you would have seen even 18 months ago. However, it’s important to not be blinded by the market conditions and be realistic with your expectations from an employer. Ironically, it shouldn’t be “all about the money” – and if you make a decision to choose an employer solely on this, you may find yourself unfulfilled later on down the line.
If you choose to search without the aid of a recruiter to consult you and scope out options that are aligned technically and commercially, we highly recommend looking beyond salaries and bonuses, and instead assessing on a three-pronged approach: Culture and benefits, salary and bonuses, and training and development. Look at each of these areas with a long-term view, as you want to be able to grow with an organisation – as well as enrich your career.
Your current firm will want to keep you, so it’s worth discussing what they can offer and how your career might advance were you to stay where you are, whether that be bigger clients, increased responsibility, or more challenging work.
You may see a more interesting career ahead with another firm, which would also offer a new challenge and a new working environment, though you will most likely need to navigate around a counteroffer from your employer, as they won’t want to lose you to a competitor.
If you feel you have focused on one area for a long time, a change of specialism, either internally or with another practice, could be the best move for you and now is the right time to switch to something that interests you.
It’s important to remember that several roles will still involve a degree or reporting and depending on the size of the company you join, you could be doing everything, including the mundane elements you were hoping to leave behind. That said, there is a wide range of roles to consider when moving into commerce and now is a good time to consider your long-term goals and choose a move that will set you on the right path.
Leaving practice can include a huge culture change that can be unnerving for some. You will have worked alongside other similarly qualified people, but depending on the size of the business you join, you could be on your own doing everything, or a small fish in a big pond doing one thing. There are pros and cons to consider for large and small organisations.
Large multinationals or blue-chip companies often have better resources, a defined career path, and come with nice benefits and salary, but while the security of an established brand is a positive, career progress can be slow, and you may not have access or involvement with many senior figures. As one member of a large Finance function your role may not have much variety and you could feel like your efforts aren’t having a tangible impact.
An SME, on the other hand, can offer an accelerated career path and a much more hands-on role where you will interact with senior managers and be at the heart of the business. The downside might be its distinct culture and personality fit, and limited mentoring and development programs. It can also be tougher to move into a large organisation later.
Culture at large and smaller businesses is driven from the top, so an important consideration is who you will be working for and with.
Researching line managers and how other people have progressed at a company isn’t always easy but is something a recruitment company is well-placed to help with, so if you have recently qualified and want to learn more about what moves are open to you in the current market, or want advice on your next move or getting your CV into shape, talk to us today.
The drastic changes in the workplace since the global pandemic have shifted the focus on how we view work, flexibility and work/life balance. Despite being initially forced to work from home, the majority of employees have proven that productivity and communication can be maintained working remotely. As such, they now want to retain the option to continue either remotely or in a hybrid working model – so much so, that many will consider changing jobs for it. Nothing to worry about there from a recruiter’s point of view, of course, until you factor in a renewed emphasis on retention for employers that will see the rise of the counteroffer in a last-minute bid to hang onto key talent.
A counteroffer is widely regarded as a weak tactic. From an employer’s point of view, an unexpected resignation can feel like a real kick in the teeth after a potentially significant investment in the training and development of an individual. The majority of the time, compensation is cited as one of the reasons to leave, but it’s rarely the genuine root cause. Top performers don’t quit to get a pay rise, so counteroffering is usually a waste of time. The very best talent wants to stretch themselves, take on more responsibility, and advance their careers – and if an employer hasn’t allowed them to do this, then it’s already too late.
At the moment of resignation, an employee must have been interviewing, often with direct competitors in the same space for weeks, if not months. That means they’ve met other people, bonded, possibly met their future teams, and been through an offer and negotiation process. And all that time, they didn’t feel that they had a strong enough relationship with their current employer to discuss contracts, compensation or any other reason to leave. Even if they do fold and accept a counteroffer, there’s no guarantee that they won’t leave anyway a few months later (almost 90% leave within a year).
From the employee angle, a counteroffer is an unpleasant situation to be put in. If compensation was mentioned as part of any resignation discussions, it can be uncomfortable to follow up with new (or real) reasons in the face of the counteroffer. Accepting the offer is a particularly bad idea. A resignation letter, even if rescinded, will have effectively signalled an intent to leave. The farce of accepting a counteroffer may play out with handshakes and smiles all around, but the reality is that the employer now knows who they’re dealing with and can start the process of finding a replacement or transitioning the role elsewhere. Word travels fast, both internally and externally, and an employee’s reputation can be damaged by interviewing elsewhere and then ultimately accepting a counteroffer.
As recruiters, we have plenty of experience in helping our candidates navigate the counteroffer and we will no doubt be reiterating these points to them in the near future:
Talk to your recruiting partner: you need someone in your corner throughout the resignation process
Professional qualifications in accounting are often required by graduates and others in the field as a way of boosting their CVs for the highly competitive labour market. Among such qualifications are those offered by the CIMA and the ACCA.
Because of their important roles in the field of accounting, a CIMA versus ACCA debate often arises, especially among those that are not very conversant with both bodies.
CIMA stands for “Chartered Institute of Management Accountants.” Founded in 1919, CIMA is now the leading and largest professional organisation for management accountants in the world, with a network of more than 696,000 members in over 190 countries.
The CIMA qualification framework consists of two main programmes:
The Certificate in Business Accounting is CIMA’s entry-level accounting qualification. It is a globally recognised qualification designed for students who have little or no knowledge of accounting. The CIMA Certificate Business Accounting syllabus consists of four subjects that students can complete within 12 months.
The Chartered Global Management Accountant (CGMA) qualification is CIMA’s top global designation for management accountants. It is recognised as the most relevant global finance qualification for those pursuing a career in accounting, business, or finance.
The CGMA is the product of a collaboration between CIMA and the AICPA – two of the world’s most prestigious accounting bodies. The designation was created to elevate and build recognition for the profession of management accounting.
The CIMA CGMA syllabus is grouped into three pillars and three levels and is made up of 12 exams: nine objective tests, and three case study exams. Those wishing to become CGMAs must possess a minimum of three years of verified relevant work-based practical experience.
Apart from the two main programmes above, CIMA also offers apprenticeships in England, Islamic finance qualifications, and programmes in Russian.
A degree is not required for a professional qualification. Participants in the above-mentioned apprenticeship programme can progress to the professional qualification by moving from Level 4 (Professional Accounting /Tax Technician) to Level 7 (Professional Accountant) or directly to Level 7 if they are eligible for exemptions, then on to the membership.
A compilation of CIMA-eligible countries can be found within the relevant tier as follows:
Applicants with additional qualifications (such as a graduate with a qualification listed in the CIMA database of accredited programmes, an MBA or a Master’s in Accounting, or being an AAT student or member, etc.) may be exempted from some exams.
What is today known as the ACCA (Association of Certified Chartered Accountants) UK dates back to 1904, when a group of eight accountants established a body called the London Association of Accountants. It has since evolved into a highly rated accounting organisation all over the world that prides itself on being the “world’s most forward-thinking professional accountancy body.” The ACCA boasts over 241,000 fully qualified members and 542,000 future members in 178 countries.
The ACCA offers three globally respected accounting programmes:
The Diploma in International Financial Reporting (DipIFR) is for finance professionals who are not yet knowledgeable about the International Financial Reporting Standards (IFRS). The syllabus includes topics such as international sources of authority; elements of financial statements; presentation of financial statements and additional disclosures; and preparation of external financial reports for combined entities, associates, and joint arrangements.
The DipIFR is assessed by a single computer-based exam that lasts for three hours, and 15 minutes and is held twice every year (June and December).
The Foundations in Accountancy Qualifications are meant for those who don’t possess the minimum entry requirements for the ACCA Qualification programme. They are broadly equivalent to degree and HND programmes or GCSE levels.
The fundamental level is made up of nine courses. Students without a relevant undergraduate degree or relevant professional qualification will have to pass all 9 courses to be eligible for the ACCA Qualification. The programme can be completed within a minimum of 12 months.
The ACCA Qualification is one of the world’s elite accountancy qualifications. It is designed for applicants with three GCSEs and two A Levels in five separate subjects, including English and maths (or equivalent qualifications). The qualification is a master’s level equivalent programme and a student becomes an ACCA member after completing it.
The syllabus is made up of a maximum of 13 exams, depending on prior experience and qualifications, and an Ethics and Professional Skills module. Students are required to provide evidence of three years of practical work experience within a relevant role.
The ACCA Qualification can be completed within three to four years, on average. Applicants with additional qualifications (such as a relevant graduate or postgraduate degree, an AAT qualification, and others) may be exempted from some exams.
The most notable difference between the two revered bodies is that the CIMA is an organisation for management accountants, while the ACCA is an organisation for chartered accountants.
Unlike the CIMA, the ACCA does not focus mainly on management training with respect to accountancy. Instead, it focuses more on accounting principles and technical areas, including taxation and auditing.
ACCA usually holds more appeal to those that are skilled in mathematics and compliance. An employer looking to hire a tax accountant will find ACCA qualifications more useful.
Being most relevant to management accounting, CIMA holders are best suited to finance accounting roles in corporate organisations. The skills you learn through CIMA give you a greater comprehension of leadership, management, and strategic approaches in accounting, making it more useful for large organisations.
However, the ACCA qualification offers greater flexibility, including a better capacity to work as a self-employed accountant. ACCA qualifications should be more appealing for smaller businesses.
From a global perspective, the CIMA and ACCA qualifications also offer different benefits to candidates. For instance, a CIMA qualification means that you’ll enjoy the globally recognised title of “Chartered Global Management Accountant” and become affiliated with a valuable global network of management accountants all over the world.
An ACCA qualification means recognition and employability in more than 100 countries, including the opportunity to team up with local accountancy organisations in those countries.
Certificate in Business Accounting
2023 objective tests per exam: GBP110
CIMA CGMA Professional Qualification
2023 Objective tests for the operational, management, and strategic levels: GBP 1298
Certificate in Business Accounting
2023 objective tests per exam: GPB100
CIMA CGMA Professional Qualification: GBP1201
Certificate in Business Accounting
2023 objective tests per exam: GBP 80
CIMA CGMA Professional Qualification
2023 objective tests for the operational, management, and strategic levels: GBP 971
Applied skills (June 2023; charged per term): GBP 143
Strategic Business Leader (June 2023): GBP 243
Strategic Business Reporting (June 2023): GBP 190
Strategic Professional (options): GBP 190
ACCA Diploma in Financial and Management Accounting (RQF Level 2), ACCA Diploma in Financial and Management Accounting (RQF Level 3), ACCA Diploma in Accounting and Business (RQF Level 4), Certified Accounting Technician (CAT) Qualification: GPB 114
(CAT exam fees are charged per term)
Dip IFR (Global, June 2023) per term: GBP 143
Within the UK, CIMA-qualified candidates earn an average salary of GBP 43,000 per annum, while the average salary of an ACCA-qualified accountant is about GBP 39,000 per annum (according to Payscale.com).
Yes, the Big 4 (Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers) hire both CIMA and ACCA holders. But ACCA holders may stand a better chance or have a higher probability of being employed by the Big 4 because they are mainly auditing firms.
Yes, qualifications from both organisations are available as online professional courses. This will allow you the needed flexibility to develop your career at your own pace and time and from any location in the world.
Apart from the CIMA and the ACCA, the other main qualifications for accountants in the UK are as follows:
The Association of Accounting Technicians is the leading global body for accounting technicians and boasts nearly 124,000 members and students. Its qualification is ideal for those wishing to take up an accountancy career without any previous experience. The body offers accounting qualifications; bookkeeping qualifications; business skills, qualifications, and courses as well as apprenticeships.
The ACA (Associate Chartered Accountant) is a chartered accountant qualification of the ICAEW (Institute of Chartered Accountants in England and Wales) that is targeted at finance professionals. It is recognised all over the world in both the business world and the public sector. The ACA qualification comprises four elements that equip students with accountancy skills, finance knowledge, and real-world business experience.
These elements include:
CIPFA is short for “Chartered Institute of Public Finance.” It is the only professional accountancy body in the world that focuses exclusively on public finance. CIPFA’s qualifications help people acquire the foundation for a public finance career.
These qualifications include CIPFA’s benchmark professional qualification for public sector accountants and a postgraduate diploma for people currently employed in leadership positions. These programmes are taught at the organisation’s in-house CIPFA Education and Training Centre, and other centres of learning all over the world. It has 14,000 members working in the public sector.
Both the CIMA and ACCA offer internationally recognised qualifications that are accepted by employers all over the world. The most notable difference between the two respected bodies is that the CIMA is for management accountants while the ACCA is for chartered accountants. Hence, any decision on which of these bodies’ qualifications to choose should be based on personal career aspirations and previous work experience.
For example, if you are a graduate with a flair for numbers and hoping to go into a career in practice, tax, or auditing, then ACCA should be more suitable. But if you intend to build a career in business, finance, and industry and have an interest in leadership, management, and strategy, then you should consider a CIMA qualification.
