Shifting dynamics within finance departments

Over the last ten years, gradual but significant changes have occurred across the accounts department within finance. The most substantial being the creation of shared service centres to focus on transactional accounting, the systemisation of much of the accounting process, and a rising demand for business analytics and commercial input.

As a result of these changes there has been a fragmentation of the finance department and the finance career. Historically, accountants were expected to gain exposure to all areas of finance, from financial accounting and audit, to the more commercial areas of planning and business analysis. However, with much of the accounting now being performed in off-site locations, and systems increasingly taking the burden of the financial accounting, it is now a lot more difficult to implement this career strategy which as a result holds questionable value.

Instead of exposure across the accounting spectrum, careers are becoming increasingly siloed. Careers within treasury or tax have always typically been very specific, but now there are specialised roles within shared service, internal audit, and financial planning and analysis.

Shared service operations now cover far more than just finance, with HR and IT particularly common. Marketing, compliance and customer service are now also being included. As a result process management, team management, resource allocation, and with robotics coming in, systems knowledge are becoming more important.

With many finance roles being offshored, the positions based in the UK or within operations are increasingly focused around business partnering. For these roles, financial planners and analysts as well as business analysts and business partners, must have an understanding and appreciation of what information is important to a business and in turn report on these key areas highlighting any issues or opportunities. While analytical skills are vital for success in such positions, understanding what the analysis says, why it is interesting and how to present it is arguably more of a business skill than an accounting skill.

In the US these roles are increasingly performed by MBA qualified individuals as the degree is more strategic and business focused opposed to technical accounting. Although some of the roles may not be quite as strategic as MBAs might like, some organisations are struggling to move accountants into such roles as they remain focused on delivering sets of accounts and fail to really engage with the operations.

Finance directors/CFOs are the ultimate business partners and are increasingly being hired from outside the accounting pool, particularly professionals with more strategic, operational or consulting backgrounds. This trend is therefore likely to filter down.

In reality we are looking at general trends, whereas each situation is unique and is determined by the individual employee. Of course qualified accountants can perform these roles extremely well, although the qualification bodies could help to prepare upcoming accountants by adapting curriculums to better meet the changes we are experiencing in the industry. However, the question still remains, while a qualified accountant could well be applicable for these positions, does it necessarily need to be, or are professionals with different skillsets just as capable?

More and more organisations are broadening their candidate searches in order to explore less traditional routes, particularly where experience may be more applicable for a position than a qualification. This has the benefit of both a wider pool in a market short of quality candidates, and professionals whose skills may better suit the needs of the organisation and provide varied, eclectic support and advice for the business operations.

If you would like to explore a broader market of candidates or discuss how we can help to meet your recruitment needs, please get in touch today. 

T: +44 207 269 2569

E: [email protected]