Whether you’re applying for a graduate or internship programme in accountancy or financial management, this sector is so broad that employers will ask you if you have a prospective specialisation in mind.
If you don’t have much of an idea of where you would like to go, there’s help out there. For instance, KPMG’s graduate website offers applicants a test to help them assess which areas of accountancy they’re best suited for.
But at the same time, you’ll have to note that your choice of degree or grades may affect your options. For example, if you want to specialise in corporate treasury, your degree curriculum should also include some modules on finance.
And unless certain organisations or divisions have specific criteria for entry, choosing your area of specialty is really a matter of figuring out what best suits your personality and skills. If you’re interested in building good working relationships while practising discretion, for instance, you can contemplate a career in tax. On the other hand, if you’re inquisitive and known for sound judgement, forensic accounting is an option for you to consider.
While we can’t tell you what area to specialise in, what we can do is shed some light on areas of expertise, as well as the type of personalities they need, to help you come to a decision.
Assurance
Assurance deals with reviewing a company’s financial data and procedures to ensure shareholders’ money is being used properly. Accountants specialising in assurance will also alert shareholders if they’re contemplating investigating the organisation, for reasons ranging from embezzlement and corruption to fraud. In this sense, assurance is used to assure stakeholders and shareholders of a company’s accountability.
Skills and traits needed: For starters, you’ll need a strong academic record with solid grades. You’ll also need healthy self-confidence, as accountants can’t afford to second-guess findings in a company’s accounts, and need to pass the information on to shareholders and stakeholders. To do so, formidable skills in communication and interpersonal relations are needed, as not all shareholders and stakeholders understand accounting jargon. If you have all these traits, assurance could be your cup of tea.
Commercial finance
This part of accountancy deals in business growth, as well as providing the working capital and funding for it. Regardless of sector or company size, commercial finance managers analyse the performance of products or services, and make recommendations on how to maximise profits that companies can then reinvest in themselves for growth. Due to its focus on generating the income needed to fuel companies, this specialisation is at the very core of commerce and industry.
Skills and traits needed: Because commercial finance concentrates on consumer price points to drive transactions and profits, commercial finance suits those who have robust analytical skills and good business awareness to inform decision-makers. High curiosity and solid budgeting skills are needed as well, as commercial finance managers usually prepare the budget for each department of a company to ensure cost savings. For that, they need to get to know each department well.
Corporate finance
Even though corporate finance is known for its long hours and high-pressure environment, the value it adds to firms makes it an important role. There’s a number of positions available, starting with lawyers, who make sure transactions are carried out in a legally binding manner. Auditors and accountants are another example, and their area of responsibility includes ensuring companies targeted for merging and acquiring are in good order. Lead advisors are also crucial, as they raise the capital needed.
Skills and traits needed: Commercial acumen, resilience and good communications and numeracy skills are some strong points hopefuls need if they wish to enter this field. Other skills needed are analytical skills, for the large amounts of information and data involved. A willingness to learn and keep up with the latest digital tools will stand you in good stead, as will management experience, though it isn’t a must among fresh graduates.
Corporate recovery
Corporate recovery is as its name sounds like – specialists in this area are involved in the rescue and recovery of companies in need of it. Because of the nature of the work, those who specialise in this area are typically appointed through referrals from lawyers, banks, or other accountants, at the request of company directors.
Skills and traits needed: Corporate recovery can be a tricky business, as this field deals with ensuring that employees, suppliers and creditors get the best deal in the event a business fails. Because of this, if you’re interested in the way that companies work, and you’re able to handle complicated and sensitive financial information, corporate recovery may be the specialisation for you. Take note that excellent communication and negotiation skills are needed as well, as many different stakeholders – including employees, suppliers and creditors – are involved, as well as their interests. Insecurity driven by fear of monetary loss are usually in the picture, too, complicating negotiations and communication efforts.
Corporate treasury
Corporate treasurers manage a firm’s liquid capital, capital, funding, and allocate financial resources to support activities and meet demands. They also have to ensure that the firm’s finances are aligned with the overall business strategy with the goal of optimising income.
Skills and traits needed: Formidable analytical skills, a solid understanding of business and economics and an ability to work and persevere under pressure are some of the traits required for those drawn to corporate treasury. There are other important skills, such as a willingness to learn, as corporate treasury requires specialists to be up-to-date on any developments regarding the business that may generate a risk. Other vital skills include communication and portfolio management, because of the sheer amount of collaboration needed to manage the firm’s finances.
Financial accounting
A specific branch of accounting, accountants specialising in financial accounting analyse, summarise and report on transactions that give essential information on a business’ operating performance. Other duties include detecting trends and forecasting future financial needs. Because of this, however, they also need to explain complex financial layouts and arrangements to others who may have little to no background in finance.
Skills and traits needed: Some skills employers first look for include inquisitiveness, an analytical mind and strong communications skills. Successful candidates should have time management skills, critical thinking, as well as an inclination to challenge and constantly think of improving the way a firm works.
Forensic accounting
Forensic accounting is one of the most exciting fields in accountancy, as forensic accountants use their skills in investigating, accounting and auditing to help clients with issues such as fraud and suspected misconduct. They conduct thorough accounting analysis and investigations before quantifying any losses that may be involved, and disclosing the information to company directors. As forensic accounting is typically used in cases related to embezzlement and fraud, the information may then be used in legal proceedings.
Skills and traits needed: As forensic accountants need to look beyond the numbers of a balance sheet and deal with the broader picture, they need to be curious, yet have sound judgment and formidable numerical skills. Solid communication and interpersonal skills are a must as well, plus the ability to convey potentially complex financial conclusions to others with non-financial backgrounds. Other crucial traits include skills in problem-solving and a detail-oriented approach to work.
Internal audit
Teams of internal auditors focus on key areas of a firm, such as accounting processes and corporate governance, and report findings to management. As such, internal auditors can advise management if the firm is run inefficiently or even in a financially risky manner, and provide the tools necessary to correct it. Other responsibilities of internal auditors include ensuring a company’s compliance with laws and regulations, as well as the maintenance of accurate and timely financial reporting.
Skills and traits needed: This area of accountancy appeals to those who are able to see the bigger picture, yet still have an eye for detail, strong knowledge in how companies are run, and highly effective communication skills. Risk management skills, alongside regulatory knowledge, are also needed in order to manage a firm’s risk and ensure compliance, as well as good project management skills.
Management accounting
Dealing with, and analysing, interpreting and communicating economic information that can facilitate the decision-making process towards a company’s goals, is the main role of management accountants. Because of this, management accountants need to have extensive knowledge of the sectors they’re working in, to provide the industry-specific advice they’re expected to provide.
Skills and traits needed: Some key traits needed include strong decision-making and numeracy skills. Others are good business acuity and an ability to pass on sophisticated financial information to management in a manner that is easily understandable. Depending on the company you’re gunning for, you might also need a wide spectrum of skills from planning to strategy, on top of skills and knowledge in accounting.
Risk assessment
An important part of the company, risk assessors assist firms in managing, understanding and prioritising risk in order to avert problems. At the same time, risk assessors help companies capitalise on opportunities even as they realise their goals, which may include protecting their reputation, or expanding their reach.
Skills and traits needed: Having robust communications skills and a curious, logical mind are needed to help those in the field pinpoint the risks. Strategic thinking is another trait they should have in order to succeed in this field, alongside the ability to work under pressure, problem-solving skills and the creativity to produce solutions quickly and efficiently.
Tax
With advanced training and knowledge of tax accounting and tax law, tax advisors (or tax consultants) are typically well-placed to ensure clients meet taxation demands in a cost-effective manner, while still within compliance and regulations. Alternatively, they may be called in to offer solutions for specific tax issues.
Skills and traits needed: An inclination for negotiation, analysis, numeracy, discretion and problem-solving are needed. Additionally, strong communication and interpersonal skills are crucial, as tax advisors need to be able to interpret and explain complicated tax legislation to clients in a simple manner. A capability to build strong relationships based on trust is also vital, as are time management skills, as specialists may have to work on tight deadlines.
This list of specialisations is by no means exhaustive, although we hope we’ve pointed out some areas that may suit you. For a full list of specialisations and areas of work, consider checking out gradsingapore’s Finance Career Guide here.
