ANALYTICAL REPORT ASSIGNMENT REQUIREMENTS - W 2016 Due: February 24, 2016 Assignment For this assignment, you will be completing the analytical report individually. The analytical report must be 10 double-spaced pages in length (from introduction through recommendations) about one of these topics: • The Employment Outlook in finance for the next five years You must use a minimum of five credible refereed secondary sources to compile a reference list. Sources must be cited in the text, not simply listed in the references. Refereed journal article sources are preferred. Wikipedia and web sites are not refereed sources. The sources need to be current; they should have been written during the past five years. Report Preparation Please keyboard your report using Arial 12 font so that it follows American Psychological Association (APA) 6.0 guidelines with a professional appearance. Attendance at the APA Style workshop, which is delivered by a member of the library staff during one class session, is helpful in formatting the report. The report must be analyzed by Turnitin before submitting the final copy to the instructor. Report Parts Your report must contain the following parts: 1. Memo of Transmittal 2. Executive Summary 3. Introduction—background of the study and methods of research 4. Body Chapter • presents a literature review (secondary research) • a minimum of one visual aid (table or figure) • conclusions • recommendations 5. References in APA Style Deliverables Research Question and Outline due January 20 Tentative References due January 27 Completed Report due February 24 The employment outlook in Finance for the next five years 1. Careers related in Finance . Types of job availabilities . Employment opportunities . Potential employee promotions with a Finance degree . Geographic spots for Finance majors . Specializations 2. Job related interests . TOP 10 hiring companies . Starting salary in average for the financial related job . Salary growth over time . Benefits for Finance majors . Unemployment rate compare to other business occupations 3. Academic requirements towards Financial manager . Academic degrees . Related certifications . Networking . Continuing education achievement . Working experiences 4. Different aspects in other nations Running Head: THE EMPLOYMENT OUTLOOK The Employment Outlook in Finance for the Next Five Years Prepared for Professor Norvell Thomas California State University Los Angeles 1 THE EMPLOYMENT OUTLOOK 2 The Finance Group 1515 Pomona Avenue * Monterey Park, CA 91754 * 323-265-9856 * Theaccountinggroup.com July 31, 2017 Norvell Thomas, Professor California State University Los Angeles 5151 State University Drive Los Angeles, CA 90032 Re: THE EMPLOYMENT OUTLOOK IN FINANCE FOR THE NEXT FIVE YEARS Professor , Enclosed is the report you asked us to prepare on the employment outlook in accounting for the next five years. The report includes research data obtained from websites such as the Journal of Accountancy, Journal of Trades, American Journal of Business Education, and other sources containing information related to accounting trends and academic requirements needed to succeed in the accounting profession. The results of our research revealed a diverse range of employment opportunities for accounting professionals in different geographical areas and their growth potential. Education and skills requirements, trends towards specialization, and job related benefits are thoroughly analyzed to help provide recommendations to students aspiring to become accounting professionals. Thank you for your time and should you have any questions about the report, please do not hesitate to contact us. We can be reached at the phone number or email referenced above. Best Regards, Elmer Quintero Group Leader 3 THE EMPLOYMENT OUTLOOK Table of Contents Executive Summary ................................................................................................... ii & iii Introduction: Problems Facing the Accounting Profession ....................................... 1 Trends in Accounting: Employment Opportunities ……………………………….. 1 & 2 Job Related Benefits & Salaries ………………………………………………….… 2 Academic Requirements ............................................................................................ 3 Conclusion ................................................................................................................. 4 Recommendations ...................................................................................................... 4 4 THE EMPLOYMENT OUTLOOK Executive Summary Purpose and Objectives Accounting is one of the top degrees chosen by prospective students. During the recession, the demands and hiring of accounting graduates slowed. However, accounting continues to be one of the strongest sectors of the economy and the hiring demands of accounting professionals are expected to increase. The shortage of faculty for accounting programs has also been a problem and universities are struggling to keep up with the demands of applicants. The purpose of this report is to analyze applicable data and provide recommendations to increase the employment outlook for accountants. Conclusions Analysis of school admittance records, accounting programs offered, employment listings, and historical financial data led to the conclusion that the employment outlook for accountants is facing the following issues. 1. The demand for accountants is so high that employers are having difficulty finding qualified candidates. 2. Universities are constrained due to limited space in classrooms and are unable to meet with the high demands of applicants. 3. The lack of funding puts pressure on schools to address faculty and admission problems. Recommendations After a thorough evaluation of the major problems schools, employers, and students are facing, specific recommendations are provided to help improve the employment outlook for accountants. 1. Increase funding to schools, so they can increase the number of accounting programs offered, hire more accounting professors, and build more classrooms. 5 THE EMPLOYMENT OUTLOOK 2. Implement more accounting programs to supply graduates to help with the demand for accounting professionals. 3. Inform students about key issues facing the accounting profession, provide educational information regarding certificates and degrees needed, and job opportunities available, so accounting graduates can make better decisions regarding their outlook. Introduction: Problems Facing the Accounting Profession In recent years, the demands for accounting professionals have increased and colleges and universities have struggled to accept all applicants majoring in accounting. According to the American Institute of CPA’s (AICPA) “2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits” survey, accounting enrollments continue to increase and have reached the 225,000 mark (Corkern, Parks, Morgan, 2013).” This increase represents roughly 46 percent from the early 2000s. The objective of this research is to analyze the accounting outlook to help graduates assess the various opportunities and risks associated to this profession. The analysis examines the employment opportunities available, salary, benefits, certificates, and degrees needed to provide valuable resources for accounting graduates to focus on developing their career path. Trends in Accounting Employment Opportunities Accounting is a career where opportunities for employment and advancement are boundless. The employment opportunities for accounting graduates decreased during the great recession of 2008–2010. About 50,000 jobs were cut in the first 20 months of this recession according to CPA trend lines (Corkern, Parks, Morgan, 2013). Since then, the hiring and demand of accounting graduates have been on the rise. For instance, in 1971, about 8,800 new accounting THE EMPLOYMENT OUTLOOK 6 graduates were hired by CPA firms whereas in 2010, this number tripled reaching more than 33,000. In addition, according to the U.S. Bureau of Labor Statistics, the expected growth for accountants and auditors for the year 2010-2020 is around 16 percent. Accounting professionals have many employment options because the field is so diverse. Graduates can choose to work in financial planning, auditing, information technology, forensic accounting, and taxation. They also have the option to work for the government, public or private companies, or they can choose to have their own business. As the economy grows, more workers are needed to prepare and examine financial records. As long as businesses exist and people need help with taxes, accountants will be in demand. Job Related Benefits & Salaries Moreover, geography is one of the most important factors in salaries of accountants. The best city to work at is New York, because it has an average salary of 96000 dollars. (“Where do accountants..?” , 2015). San Jose is ranked number two. Salinas, south of the bay area ranked number three. San Francisco ranked number six. These areas offer an average accountant salaries above 87000 dollars. Texas is the best state to work at; it offers around 74000 to 90000 dollars (“Where do accountants..?” , 2015). The unemployment rate of accountants is lucky only 2.2 percent. (“What is the…”, 2017). The National Association of Colleges and Employers (NACE), “The average starting salary in 2013 was $53,300 representing a six percent increase over the previous year.” In a separate survey from Careers-In-Accounting states, “The starting salaries for first-year entry-level accountants for the Big 4 Firms were around $55,000 and between $50,000 to $70,000 for the overall sector” (Corkern, Parks, Morgan, 2013). Accountants not only have 7 THE EMPLOYMENT OUTLOOK the potential to earn a generous salary, but they also have been known to receive great pensions, healthcare, vacation time and other benefits. Accountant Earnings by Seniority 150,000.00 100,000.00 50,000.00 Entry-level Accountants Junior Accountants Experienced Accountants Senior Accountants Top End Accountants Earnings The Evolution of Technology is changing the accounting Profession. For example, Quickbooks, Peachtree, Turbotax, H&R Block are software used for accounting management and tax preparation. Another example is Ebridge, a web-based document management software, that process data is a faster way. Enterprise Resource Planning (ERP) Systems, which integrates different departments onto the same system (Pepe, A., 2011). Supply Chain Management (SCM) Systems automate the flow of information between a firm and its suppliers (Pepe, A., 2011). Technology is making accounting industry more convenient and vivid. Academic Requirements Students need specific training and education to become an accountant. Most schools offer undergraduate accounting programs, certificates, and advisors to help provide guidance. Students must take many accounting courses like taxation, auditing, and cost accounting. There are also numerous professional certificates available to add value for career advancement and enhance 8 THE EMPLOYMENT OUTLOOK earning power. Some certificates include Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA). Accounting students should also build social skills and gain work experience to succeed with the ever growing economy. They should network to gain accounting knowledge, employment opportunities, or internships. Networking also helps students gain insight in the profession and builds soft skills required by new employers. Soft skills are distinctive qualities that distinguish one person from another with similar experiences and can range between social traits and communication skills. “In recent years, many firms have begun to realize the existence of the relationship between employees' soft skills and the overall success of the organization” (Low, M., Samkin, G., & Liu, C., 2013). To facilitate this, most colleges host multiple career fairs or events where students are encouraged to attend. Most companies require a certain amount of experience before they are considered for employment. An internship serves this purpose by engaging students in hands on service activities to help them enhance their learning. Some internships are paid while others will only give you program credit. Internships are the best way to transition from the accounting academic world to the workforce. Not only do they help with the transition, but it has been proven to help improve student’s GPA. Conclusion In conclusion, the analysis suggests that the employment outlook in accounting for the next five years is facing the following ongoing issues: 1. A lack of funding, which puts pressures on organizations to fund money to address the issue through initiatives. 9 THE EMPLOYMENT OUTLOOK 2. Universities having limited spaces in classrooms which causes a shortage of faculty for accounting programs, resulting in a decrease in the number of hires. 3. With the demand being high, employers want the best candidates. Recommendations The employment outlook for accountants has seen an increased demand in the job market because of the shortage of accountants. To help with this problem, we recommend increasing funds for colleges and universities. With more funds available, schools can hire more professors, renovate and build more classrooms, and offer more accounting courses. Students would benefit with smaller classroom size because their learning environment would be more personable. This will help increase their knowledge and understanding of accounting concepts. If schools are unable to increase funding, then they should develop programs or groups to help collect money from the community to help with the financial burden. Addressing the problems mentioned will help solve admission problems due to lack of space, accounting professors, and availability of courses offered. We have determined from our research that the employment outlook in accounting is promising and is expected to increase within the next five years. References Accountant Salary and Job Outlook. (2017). Bureau of Labor Statistics, U.S. Department of Labor. Retrieved from http://www.allbusinessschools.com/accounting/salary/ Occupational Outlook Handbook, Accountants and Auditors. (2015). Bureau of Labor Statistics, U.S. Department of Labor. Retrieved from: https://www.bls.gov/ooh/business-andfinancial/accountants-and-auditors.htm THE EMPLOYMENT OUTLOOK 10 Cahill, M. (2016). The top 10 U.S. colleges for an accounting degree. College Factual. Retrieved from: http://college.usatoday.com/2016/02/26/top-colleges-for-accounting/ Corkern, Sheree M., Parks, Sandra B., Morgan, Mark I. (2013). Embracing the future: What can accounting graduates expect? American Journal of Business Education, 6. Retrieved from http://search.proquest.com/docview/1433049195. Lynam, R. (2013). The Dos and Don’ts of Networking. The Journal of the Global Accounting Alliance. Retrieved from: http://www.gaaaccounting.com/the-dos-and-donts-ofnetworking/ Pepe, A., (2011). The Evolution of Technology for the Accounting Profession. Retrieved from: http://www.cpapracticeadvisor.com/article/10263076/the-evolution-of-technology-forthe-accounting-profession Thilakerathne, P. M. C. & Madurapperuma, M. W. (2014). An examination of Accounting Internship on Subsequent Academic Performance. International Journal of Economics, Finance and Management Sciences, 2, 8-15. Retrieved from: http://repository.kln.ac.lk/bitstream/handle/123456789/6680/An%20examination%20of% 20accounting.pdf?sequence=1&isAllowed=y What is the Unemployment rate of Accountants and Auditors? (2017). Retrieved from: https://www.studentscholarships.org/professions/570/unemployment/accountants_and_au ditors.php Where do accountants get paid the most? (2015). Retrieved from: http://theaccountingpath.org/2015/07/accounting-salaries-where-to-get-the-most-money/
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