ACCOUNTING INFORMATION AND EMPLOYMENT

Does university education equip accounting / business graduates with the skills

perspective employers want?

Introduction

In the business world, accounting is one discipline of study that all people, regardless of

job position, should have some knowledge of. Its concepts can be applied to all job

specialties, its importance has been promoted in recent years, and it is useful in people’s

everyday lives. First, an accounting education is important because it can be applied in

all job specialties. Secretaries must use accounting skills to manage the company check

book and orders, auditors have to study financial statements to evaluate the accuracy and

integrity of the business, and executives need to judge the success of their business using

accounting statements from the past and present. These are just a few of the many

possible positions where an understanding of accounting is necessary. Another reason all

business students should have some background in accounting is because in recent years,

people in the business world have been held more accountable for their financial

practices. Since the Enron and WorldCom crisis when independent auditor Arthur

Anderson failed to report illegal accounting practices, the SEC has been monitoring

public corporations more closely. Thus, companies require some basic knowledge of

accounting to avoid any future misstatements unintentionally occurring. (Accounting

Education Change Commission (AECC), (1990)

A major problem facing the accounting profession today is the shrinking pool of

accounting graduates from which to recruit. An obstacle accounting educators must

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overcome in recruiting students is a misguided perception that (1) accounting as a

profession offers narrow career opportunities and (2) accounting positions do not offer

variety in the type of work performed.

The task for employers of accounting graduates, as well as for accounting educators, is to

attract quality students into the accounting curriculum. Thompson, et al., 2008, found that

91% of the accounting department chairpersons they surveyed felt that it was more

difficult to attract top students into accounting today compared to five years ago. Perhaps

an obstacle accounting educators must overcome in recruiting quality students is a

misguided perception that (1) accounting as a profession offers narrow career

opportunities, and (2) accounting positions themselves (such as auditing) do not offer

variety in the type of work performed.

Additionally, it is vital that everyone, not just business students, acquire an understanding

of accounting for personal benefit. People use accounting in their daily lives when they

study financial statements to make investment decisions, assess interest rates to pay off

their house mortgages, and calculate rates for car payments. In the business world,

accounting is utilized in much greater depth, but each individual encounters some

activities in his/her everyday life that requires knowledge of accounting principles.

Accounting is the most basic framework of business. Without an accounting education,

students would be unprepared for the real world. (Reckers, P. M. J. (1995)

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The role of accounting and the profession is changing. Over the last decade there has

been increasing pressure from industry, government and accrediting bodies for changes in

accounting education to ensure development of appropriate skills and knowledge. For

some time now, commissioned reports into higher education (e.g., AC Nielsen Research

Services 2000) has highlighted that discipline-specific knowledge is not sufficient for

graduate employability. One way in which universities have sought to articulate their role

and purpose is through a description of the qualities of their graduates. However,

academics constantly grapple to understand the concept of graduate attributes in the

context of different discipline backgrounds. As Thompson et al. (2008) note graduate

attributes are variously referred to across education and training internationally as key

skills, generic attributes, key competencies, transferable skills, employability and soft

skills.

Demographics

In all years reported, females outnumbered males at the undergraduate level, while males

outnumbered females at the graduate level, implying that while accounting is an

attractive major for female undergraduate students, fewer of them choose to extend their

studies past the baccalaureate than do their male counterparts. While the mix between

females and males remained constant for undergraduate students, the data suggest a

possible increase in the percentage of females in Masters’ programs in the last two years.

While the suspected trend is not statistically significant when analyzed across all five

years, it does reach significance when analyzed across only the most recent three years.

(Graves, et al. 1993)

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In 2007/8, 88.2% of both undergraduate and postgraduate leavers from the Department of

Accounting and Finance were in employment, completing further study or taking time

out just six months after graduation. The top employment sectors for Accounting and

Finance leavers were:

 Banking

 Accountancy and taxation, and

 Business and management consultancy.

Internationally, 78% of accountancy graduates in the UK were solely in employment six

months after graduation, with 25% combining work with further study and 7.5% solely

completing further study. While a career in accountancy is an obvious route for

graduates from this discipline, the range of transferable skills acquired makes an

accounting and finance degree highly desirable to a wide range of employers. (Reckers,

P. M. J. (1995)

Employability skills

Studying within the accounting field, the students learn to develop specific subject

knowledge alongside a set of highly valuable and transferable employability skills,

including:

 Business and commercial awareness: a first-rate understanding of business

procedure and the nature and functionality of organisations and the commercial

world

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  Strong numerical skills: the ability to understand, manipulate and interpret

complex numerical and statistical data

 Advanced analytical thinking and problem-solving skills: applying a

methodical approach to analyse information critically, assessing all aspects of a

situation and evaluating possible solutions.

 Organisational skills: learns to think logically, pay attention to detail and

organise the time and work efficiently.

 Excellent communications skills: enables to present complex data verbally and

in writing (Nelson, I. T. & Deines, D. S (1995).

In a dynamic and competitive environment accounting graduates are expected to have

acquired the technical skills of the profession but, more importantly to employers, should

merge from university with a broader range of attributes as well as being able to

demonstrate competence in the common vocational skills required in modern workplaces.

In the Australian context, employers have been so dissatisfied with the skills and

competencies of graduate that the Australian government for a time considered linking

graduate skills testing with federal funding. (Accounting Education Change Commission

(AECC), (1990)

 
Four months after graduating 2006 accounting graduates were...

Employed 81%

Seeking work 19%

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Participating in further study 17%
 
Where were accounting graduates employed?

Private practice 41%

Private industry 41%

Public sector 8%
Source: http://www.gradcareers.com.au/australian_gradcareers_in_business_finance.html

The employment market for graduates

The current employment market and outlook for accounting graduates is very positive.

Skills shortages and strong demand for accountants across the globe mean employers are

increasingly subject to pressure to meet the demands of potential employees in this

candidate-driven market. The high expectations of generation Y workers have resulted in

increasing turnover rates in junior roles with candidates moving between firms in search

of career advancement and better rewards. As a result many firms are offering higher

salaries and more flexible working conditions in order to attract and retain staff.

The role of the accountant is expanding. The business function of accountants has

become more strategic and more critical to general operations. Accountants at all levels

of the organization are required to offer expertise that is relevant to such areas as strategic

planning, business expansion, revenue enhancement and information technology

programs. This is why companies have started to recruit accountants who are not just

experts in accounting. They are also looking for professionals who are skilled strategists

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and team players that offer a future-oriented viewpoint in a project. As a result of this

development, there is now an increased focus on interpersonal skills, which are important

in strategic planning and team building. (Thompson, D., et al. 2008)

Job requirements from the graduates’ point of view

Accounting managers are expected to have several types of skills. Technical skills are the

most basic, followed by human skills, conceptual skills and design skills. In addition to

skills, a manager is expected to possess certain personal characteristics, which include the

desire to manage, the ability to communicate with empathy and integrity and honesty.

While some of these skills are acquired through formal learning, other skills are

developed in informal ways. (Graves, et al. 1993)

Accounting graduated within Oman

There are several colleges who offer quality education and degrees for the youth of

Oman. Some of the colleges’ promises jobs as the students are graduated from the

college because some of the big companies of Oman have campus recruitment and they

select the quality students from the colleges. When the students are selected, they are put

on training for couple of months and then put on to job. Accounting graduates are

normally working in the banking and financial sector within the Sultanate.

Conclusion

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For some years there has been much debate between various stakeholders about the need

for accounting graduates to develop a broader set of skills to be able to pursue a career in

the accounting profession. It has been noted that students are becoming aware of

employers expectations in terms of communication, analytical, professional and

teamwork skills. Although employers are still expecting a good understanding of basic

accounting skills and strong analytical skills, they are also requiring business awareness

and knowledge in terms of the real world. Both students and employers report that many

of the essential non-technical and professional skills and attributes are not being

developed sufficiently in university accounting programmes. Accounting firms should

consider the many factors that may influence the decision of job candidates to join the

organization or seek employment elsewhere. The combination of a healthy economy and

a low unemployment rate has made it harder for companies to find talented people, who

are now in a position to carefully select potential employers. To attract major talents,

accounting firms should look at the way they present themselves and the job

opportunities they offer to the candidates. There are six variables that should be

considered if candidates do not seem to be interested in finding work in the organization.

They should ask if they are effectively selling the position and are being decisive enough

in interviewing top candidates. They should also determine the degree of job search

activity of candidates. They should also look at the compensation offer, corporate culture

and reference-checking process.

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References

 Accounting Education Change Commission (AECC). (1990). Objectives of

education for accountants: Position Statement Number One. Issues in Accounting

Education, 5, 307-312.

 ACNielsen Research Services. 2000, Employer Satisfaction with Graduate Skills:

Research Report, Evaluations and Investigations Programme Higher Education

Division, DETYA.

 Graves, O. F., Nelson, I. T., & Deines, D. S. (1993). Accounting student

characteristics: Results of the 1992 Federation of Schools of Accountancy (FSA)

survey. Journal of Accounting Education, 11, 211-225.

 Inman, B. C., Wenzler, C. A., & Wickert, P. D. (1989). Square pegs in round

holes: Are accounting students well suited to today's accounting profession?

Issues in Accounting Education, 4, 29-47.

 Nelson, I. T. & Deines, D. S (1995). Accounting student characteristics: Results

of the 1993 and 1994 Federation of Schools of Accountancy (FSA) surveys.

Journal of Accounting Education, 13, 393-411.

 Reckers, P. M. J. (1995). Know thy customer. In Change in accounting education:

A research blueprint, C. P. Baril, Ed. St. Louis: Federation of Schools of

Accountancy.

 Thompson, D., Treleaven, L., Kamvounias, P., Beem, B., and L. Hill, 2008,

“Integrating graduate attributes with assessment criteria in Business Education

using an online assessment system: