eFinancialCareers

Accountants with banking knowledge are hot.

Accountants in Australia are well paid, particularly in investment banking roles, which involve big risks and complex instruments.

There are many types of firms to choose from, the most important being investment banks, fund management firms and hedge funds. Pay in investment banks can be up to 40% higher than at high-street accountants, but retail banks and insurers also need accounting talent and will pay for it.

“Tax professionals, audit, management accountants and financial accountants are in high demand,” according to Hays' 2007 Salary Survey, “and are able to negotiate significantly higher salaries and benefits as a result, particularly at the $65k-$90k level. The ongoing focus on risk and compliance remains a key area, creating demand for accountants with financial governance, audit, IFRS, SOX and risk experience, although the requirement is now for candidates who can maintain rather than implement or roll out projects.”

One function of accountants is to keep track of funds under management by the country’s pensions sector (so-called fund accountants). According to the Australian Bureau of Statistics, Australia’s funds under management at 31 December 2007 were AU$1.4bn – which is a lot of funds to keep track of.

Trends

Banks have been competing fiercely for accounting talent. Recruitment firm Robert Walters says demand heavily outstripped supply during much of 2007, and some senior-level salaries increased by as much as 45%.

Thanks to the credit crunch, banks are increasingly being forced to justify how they account for complex financial derivatives. Conor Smyth, group finance manager at Goldman Sachs JB Were, says it will impact accounting jobs: “The credit crunch is likely to make demand for auditors shoot up, and make demand fall in more specialised areas of credit. I think the overall mix of demand will change, but I don’t see any lessening of demand for accountants in Australia. There are never enough.”

Demand is pushing companies to accept qualifications other than a CA, but the CA is still preferred and is a prerequisite for audit jobs. The Australian Investments and Securities Commission also regards Certified Practising Accountants (CPAs) and accountants with National Institute of Accountants in Australia qualifications (PNAs, FPNAs, MINAs and FINAs) as qualified accountants. UK qualifications are recognised, but anyone with an African or Asian qualification, and even some US qualifications, should check its status before seeking a job in Australia.

Roles and career paths

Investment banks offer an array of potential career paths for accountants. They include front-office positions, dealing with clients, as well as middle and back-office roles.

The back-office accountancy roles on offer in banks are:

1) Product controllers: Working with traders to monitor and restrict the risks the bank is exposed to through trades.

2) Management accountants: Providing managers in banks with information on the state of the business so they can formulate strategy based on knowledge of risks and budgetary constraints.

3) Financial reporters: Produce monthly and year-end accounts, and meet the reporting needs of the Australian Securities and Investments Commission (ASIC).

4) Technical accounting specialists: Help banks ensure they meet the needs of regulators such as ASIC and adhere to requirements such as International Financial Reporting Standards (IFRS).

There are two main entry routes. You can join straight from university – several banks, including Morgan Stanley, Deutsche Bank, ANZ and Citi offer accountancy training programmes. JPMorgan, for instance, offers a number of opportunities to top-line graduates with accountancy qualifications. The other route is to gain an accountancy qualification elsewhere and then move. This is the more usual path as banks want CAs with experience.

Pay

At entry level, investment banks offer accountants from 20-40% more than commercial firms do. Newly qualified accountants working in commerce earn about AU$40k-$50k, according to the Michael Page International Salary Survey 07/08, while their counterparts in investment banks are looking at AU$55k-$75k plus bonuses.

Tax accountants can expect slightly more and fund accountants and product control accountants slightly less. But product accountancy is seen as a bridge to investment banking and holds the promise of plum jobs and big salaries.

Skills

If you want to be an accountant in an investment bank, you’ll need a strong academic record, strong numerical skills and an interest in the industry.

“Accountancy requires drive, discipline, extensive mathematical and communication skills, an understanding of the market and its products, and you have to understand your customers,” says Melissa Cook, project accountant at Goldman Sachs JB Were.

She adds: “We look for people who are dynamic, but also disciplined. I look at school and university results to find evidence of sustained application. Once you have your CA, you have a transferable international qualification. It is proof of skills, knowledge, capacity and ethical training and is an international job ticket.”