Role Of Accounting Services Industry In The Australian Business Environment
Introduction to Accounting and Service Industry
The main concern of this assessment is to analyse the role of accounting service industry in relation to other businesses which are operating in Australia. The accounting service industry has received immense recognition in the wake of scandals and growth of different businesses in the market. The main products which are offered by accounting service industry to different businesses are bookkeeping, auditing, advisory services and payroll maintenance. The main responsibility which can be recognised for accounting professional is that they need to appropriately present the financial performance of a company so that the investors and other stakeholders are able to interpret the same and make financial decisions on the basis of the same. The growth and expansion of different industries which are operating in retail, manufacture, food, textile or service has resulted in growth and demand of more accounting professionals. In order to ensure proper disclosure of financial information various accounting standards are established.
As per the market conditions which is present in Australia, the market is very much favourable for accounting profession as the profession has generated around $ 20 billion in 2018 which is more than the revenue which was generated in previous year. Most of the Young Graduates who are engaged in accounting courses have a vision to work for one of the big accounting firms. A survey shows that the accounting profession industry has experienced a growth of 2.6% between 2012 and 2017 (Afpbb.com.au. 2019). It is further estimates that more than one lakh fifteen thousand. A table is presented below which shows the financial results for accounting service industry for current period.
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Industry Revenue (2013-2014) $ 17 billion approx. |
No of Employees from the Section 115000 (2017) |
Number of Accounting Services Firms 31,762 |
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Wages 2013-2018 $ 20 billion |
Proportion from Total Market 2013-2018 11% |
Overall Growth in the accounting Service Industry 2.6% (2013-2018) |
Figure 1: (Statistics Relating to Accounting Service Industry Operating in Australia.)
Source: (National Industry Insights Report. 2017)
The chart which is presented above shows the employment level in the economy of Australia and how the same has grown significantly over the years (Tucker and Schaltegger 2016). The estimates which are presented in the graphs are based on the data which is available up to the year of 2012-13. The above presented graph appropriately shows the growth in the profession of accounting and the same is anticipated to further develop over the next few years.
The chart above portrays a more recent survey in the growth and development of employment opportunities which is present in Australia. As per the figure above, the opportunities for bookkeepers and accountants are shown to be on the rise as per the estimates of 2018. In addition to this, the profession is expected to thrive more in the coming years as per the projections which is made by the graph above.
Industry Revenue and Employment
The analysis of the current market scenario which is present in Australia shows that the most of the industries is growing and this provides scope for the accounting service industry to grow as well. The accounting profession is required in most of the businesses for depicting financial performance of the business in annual reports or for maintaining the books of accounts (De Lange, Jackling and Basioudis 2013). Therefore, there is no doubt that the accounting profession would be in constant demand as more and more graduates come up looking for jobs.
Some factors are there which have contributed to decline in revenue for accounting profession which are mostly the regulations which is established by the government such as introduction of e-tax and increase in taxation rates. It is anticipated that the Australian Accounting industry’s revenue will grow at an average rate of 5.5% over the five years through 2016-17 to reach A$20.7 billion by 2020. Therefore, it can be said that the future of accounting profession looks bright and attractive for more graduate to pursue the profession.
The field of accounting has wide range of opportunities and the same can vary from clerk level which maintains the books of accounts of the business to managerial level which can take important financing decisions. Some of the posts which are available in accounting service industry are of accountants, bookkeepers, auditor, finance manager and financial advisor. In case we consider the role of an accountant, the professions play a vital role in formulating annual reports which display the financial performance of the business. The role of an accountant is expected to further enhance in future and therefore more and more graduates are likely to take up the course.
The accountants of a business perform the role of preparation and presentation of financial information in the financial statements of the business (Mintz 2016). The accountants need to have wide scale knowledge of the accountant standards and also performs the role of a financial advisor. The maintenance of books of accounts is a vital job as on the basis of the same financial decisions as well as managerial decisions are taken by the management of a company. Some of the major functions which is performed by an accountant are listed below:
- Preparation of the financial statements of a business.
- Appropriate interpretation of accounting standards and policies.
- Aids the management to take decisions in relation to financial performance of a business.
Any graduate who want to pursue the course of accounting professional needs to have wide knowledge of accounting provisions, standards and practices. The individual needs to have knowledge about the practices which are adopted in the process of maintaining books of accounts. The accountants are required to have specialised knowledge of generally accepted accounting principle so that the framework which is used for preparation of the annual reports are consistent and universally applicable (Rahman 2013). The accountants are expected to present the financial information of a business with accuracy as the investors depends on such information for taking major investment decisions. The accountants are expected to have integrity in their approach while preparing the financial statements of the business.
Future Growth Projection of the Industry
The accountants hold a vital position in any business as they take care of representation of accounting information which is used for decision making process. The remuneration which is provided to the accountants in Australia depends on the level of experience and skills of the individual.
The above figure represents the earning which can be generated by an individual while pursuing the career of an accountant and the graph shows that the level of earnings depends on the level of experience which is generated by the business (Bayerlein and Timpson 2017). An entry-level Accountant with less than 5 years of experience can expect to earn an average total compensation of AU$ 51,000. Average total compensation includes tips, bonus, and overtime pay. An Accountant with mid-career experience which includes employees with 5 to 10 years of experience can expect to earn an average total compensation of AU$65,000. An experienced employee can earn significantly more depending on the nature of the company with which it is associated.
- Required Qualifications and Educational Background for the position
The average qualification which is required to be maintained by the accounting professionals is to have a basic knowledge of accounts. The knowledge possess by the employees needs to maintain the accounting policies and practices which are applicable on businesses. In addition to this, the accounting professional can also take on professional’s degrees which is provided by the Chartered Accounting Institutions or other institutions which provides such competency certificates. The Chartered Institute of Management Accountant (CIMA) and the Association of Certified Accountants (ACCA) provides professional courses to candidates in order to ensure that the professional services which is provided by such candidates are of highest quality.
The company which is selected for this part of the assessment considers Price WaterHouse and Copper (PwC). The company is mainly engaged in providing accounting services and the main operations of the business is associated with providing audit services, advisory services and tax services to the client. PwC is a system firm which effectively settled their branches in more than 157 nations and in 756 areas (PwC. 2019). The organization as of now utilized 223,000 experts everywhere throughout the world. The company has its operations across many countries. The services which is provided by the company can be related with best quality and it is an inspiration to work in a company which is one of the big four businesses (Chan and Ryan 2013).
PwC is one of Australia’s leading professional services firms, bringing the power of our global network of firms to help Australian businesses. The company is known for the advisory services which is provided by the business which is the main reason that the accounting professional aims to end up with an employment contract with PwC. The company is regarded to be the leading firm when comparison is made between the big four businesses which are operating in Australia.
Specific Areas of Employment
The culture of PwC is developed in such a way that the clients of the business get the best quality of services and the employees of the business are satisfied with the working conditions which are present in PwC. The policies which are set by PwC is set considering the employees concern and also main goals which are to be followed by the business. In addition to this, the business has provided all the facilities which would make the employee comfortable in the market and also motivate them to outperform themselves.
The business of PwC offers better infrastructure, job security, better pay and other incremental benefits to the employees of the organization so that the same can be retained and the same can be considered as assets of the business. In addition to this, the company has an efficient policy relating to recruiting the employees of the business and ensure that the employee of the business are competent enough to provide the best quality of services to the clients.
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Interviewee profile |
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Interviewee name? Sam Wilson |
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Company or organisation? Deloitte (Previous company) |
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Position within the company? Senior Associate |
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Number of years employed? 2 years |
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Contact details? |
Give us a proper introduction about yourself? Tell us what you like and what are your hobbies?
- Why did you leave your previous company and what do you expect from our company?
- When was PwC established and what are the core activities which are carried out by the company?
- Do you think you can cope with the role which you have applied for ?
- Give an expense where you demonstrated innovative approach and leadership in your previous company?
- Where do you see yourself in 5 years? What are your personal goals which you want to achieve?
- Do you have any questions for me?
Conclusion
The above discussion shows the employee market for accounting service industry and how the same is the condition in Australia. The assessment considers the future perspective of accounting industry in Australia. The role of an accountant is very important in the modern era and with all the new businesses entering the industry and existing businesses growing, the requirement of accounting professionals is likely to rise. The assessment also considers the company of PwC as an ideal place for accounting professionals for a job as the company provides the best quality facilities to the employees. The assessment concludes with a series of questions which can be asked in an interview to an eligible candidate.
Reference
Afpbb.com.au. (2019). The Australian Accounting Industry . [online] Available at: https://www.afpbb.com.au/Resources/TheAustralianAccountingIndustry.aspx [Accessed 1 Feb. 2019].
Bayerlein, L. and Timpson, M., 2017. Do accredited undergraduate accounting programmes in Australia meet the needs and expectations of the accounting profession?. Education+ Training, 59(3), pp.305-322.
Chan, H.T. and Ryan, S., 2013. Challenging stereotypes: International accounting students in Australia. Journal of Modern Accounting and Auditing, 9(2), p.169.
De Lange, P., Jackling, B. and Basioudis, I.G., 2013. A framework of best practice of continuing professional development for the accounting profession. Accounting Education, 22(5), pp.494-497.
Docs.education.gov.au. (2019). [online] Available at: https://docs.education.gov.au/system/files/doc/other/accountants-demand-and-supply-2014-paper-2014.pdf [Accessed 3 Feb. 2019].
Mintz, S., 2016. Accounting for the public interest. Springer,.
National Industry Insights Report. (2017). Accounting and Bookkeeping. [online] Available at: https://nationalindustryinsights.aisc.net.au/industries/financial-services/accounting-and-bookkeeping [Accessed 1 Feb. 2019].
PwC. (2019). About PwC Australia. [online] Available at: https://www.pwc.com.au/about-us.html [Accessed 3 Feb. 2019].
Rahman, A.R., 2013. The Australian Accounting Standards Review Board (RLE Accounting): The Establishment of its Participative Review Process. Routledge.
Tucker, B.P. and Schaltegger, S., 2016. Comparing the research-practice gap in management accounting: A view from professional accounting bodies in Australia and Germany. Accounting, Auditing & Accountability Journal, 29(3), pp.362-400.