The role of the accountant is continually evolving as finance functions are under increasing pressure to show their commercial worth. In response many finance directors are implementing ‘internal client facing’ or ‘business partner’ roles, something highlighted in our recent workplace study The commercial challenge: Building accountants’ skills.
However with one in five (21%) employers reporting that there isn’t enough commercial awareness amongst their accounting and finance professionals and 18% saying communication skills are lacking, employers are looking at other resources to fill the skills gap.
Qualified accountants need to take heed of these findings, or they may well find their organisation changes around them
Over half (55%) told us that they would consider appointing non-qualified accountants to roles requiring greater interaction with the business while around a quarter (23%) are recruiting communications, design or visualisation experts into finance departments to fill more business partner oriented roles.
Lynne Hardman, executive director at Badenoch & Clark, comments: “Our study makes worrying reading for qualified accountants. The demand for accounting and finance professionals with better communication, commercial and relationship building skills has been there for some time. That demand isn’t being met, and employers are looking at other options as a result.
“The business partner model is driving much of this change. We found that around two thirds of employers had a formal accounting and finance business partner role. It’s a role that calls for more than simply good technical accounting skills – it means having a strong strategic outlook and the ability to build deep relationships in all areas of the organisation.
“Of course, using non-qualified accountants for these roles is not a perfect solution either. Employers risk losing much of the technical insight qualified professionals bring; insight that should underpin any effective business partner model.
“Qualified accountants need to take heed of these findings, or they may well find their organisation changes around them, leaving them without a role. The study also helped point the way towards a solution, with around seven in ten employers saying they’ve found on-the-job training to be an effective way of building the needed skills in qualified professionals. Mentoring has also helped 62%.
“Using these methods to up-skill qualified accountants will be central in finding a better solution for all involved.”
2 Comments
It is rather comforting to know that this is the way companies are thinking.
I am only part qualified and I feel that recruiters emphasize the lack of qualifications rather than focusing on the fact that someone is capable of doing a job but would rather develop their inter-personal skills rather than becoming qualified.
I am surprised that many accounting and financial professionals have not seen this coming. I have observed the trend for at least the last 5 years (and it has been dripped spooned to us in one form or another at least since the early nineties e.g. the introduction of LMS) and can only assume that as qualified professionals and in key positions an element of complacency has set in and unwillingness to embrace new ideas whether you agree with it or not.
I will try to summarise as best I can and there is a ton of reading material out there on directgov, dcsf etc all the goverment sites and many professionals only read info on their area of specialism without taking stock of the others and sooner or later changes in one will impact on another even if it is only to adopt the policies and changes applied!
In a market that has been stating quite clearly in all it’s new and recent policies e.g. (MOG) reviewing of terms and conditions of staff in LA’s, changes to pensions (so all can benefit at least a minimum full state one no matter how small that may be) contracting financial funding it is forcing the hands of local authorities, health services, universities etc to look at more creative ways to generate income and deliver more efficient services. This will not always be ‘in house’ or a joint agreement with the borough next door. Additional costs will fall to the consumer/users of services who in term will demand higher level of service for the money they are paying out!
In some cases that will mean doing business in sectors you would not previously have considered other than to procure their product or service and you will find that we will need to start working together.(private, public and voluntary sectors).. hence every child matters agenda and lifelong learning… getting the picture folks?
This will then require people with a different mindset to most of our colleagues in local government today..one who thinks more strategically with new ideas that not only work locally but internationally too! If your really smart you will ensure that it is developed in such away that it can cost effective for both short and long term by using (key factor) all the new technology available to us today especially in a time when we are looking at increased costs of travel, energy, green issues etc (hence relaxed changes in legislations around FOI)! So it is no longer just looking at what we can change for the next year it may be necessary to think as far as 25 years ahead and ensuring budgets are linked to the plans as there will be no room for financial surprises.
With these changes will also be the demand for people who are brilliant at what they do people who have been at the top of their game, some of them will come from fortune 500 companies or equivalent as most have proven track records and they will want staff who know what they want and are talking about when they issue an instruction and most important deliver results! There will be no room for nay sayers… and key to all of that will be value for money (BVACOP) problems with companies like Enron etc have taken care of that hence the standardised accounting practices that have seen all kinds of things now being accounted for that previously were lower on the scales of importance that have to be included in year end accounting and the sudden increase in demand for staff with FRS experience.
Folks you need to be clued up if you wish to stay in local government and start thinking like a true business person if you remain ignorant and choose not to get in the ‘know’ you will seriously be left behind and with competition you will not be able to compete with we are already seeing this in a downturn market there are many qualified accountants sitting at home right now…why who are totally unrealistic on rates and abilities… if you don’t want to be be left behind you need to get in the game and start doing your research and gaining that experience or quite simply put start retraining for another profession that you are more passionate about!
Good luck guys and this article is on point so take note!
G