The Australian economy is changing from mining to one that is service oriented. As such, there has been an increase in the demand for professionals with experience in accounting. As a matter of fact, many companies have restructured their departments in order to align their objectives with the general corporate world. Moreover, the fact that organizations are focusing on reducing their operating costs, improving their efficiency and improving their productivity means that there is a change in many organizational structures.
The fact that there is an increase in the positions of finance managers, analysts of business technology, cost specialists, finance specialists among other accounting specialists means that an understanding of this labor market is imperative. Nevertheless, analysis on the job market available at the beginning of each financial year and its end is also significant in such research. Most companies would prefer to have employers who have significant experience in the local market as compared to those with external experience.
The availability of new technology in the local market challenges the professionals. In this, there is an array of new technologies available to accounting professionals. This technology is a limitation to the rate of employment since most employers would prefer people with proficiency in technology. Furthermore, there is the ability to work across a number of organizations which most employers would prefer.
Regardless, this research is focused on the general labor market of accounting professionals. The requirements of employers are a crucial aspect of the research but this may vary from state to state. Moreover, the distribution of these professionals as per the retention rate and the demand rate will also be looked in detail. Nevertheless, an understanding of the terms of the contract as well as the specifications upon employment may prove pivotal in the research. The most likely outcome is that there is the retention of some of the most skilled employees with diversification achieved through attracting good talent.
There is an increase in the employment rates all over Australia. According to a report by the Australian Bureau of Statistics, there was an increase in the employment by over 52000 people as per the year 2017 (Vandenbroek, 2018). Nevertheless, this was mainly on the contract terms because there was an increase in full-time employment. The increase in part-time employment was not as significant as full time with only 14,100 people being employed (Vandenbroek, 2018). Moreover, there was a decrease in the rate of unemployment by over 5.6% (Vandenbroek, 2018).
Nevertheless, one of the most significant departments in this growth is accounting. The increase in expenditure by the government means that there is an increase in the service sector which has promoted accounting professionals. The accounting profession is humongous and mainly pertains to recording and noting the transactions that pertain to a business. Moreover, it is also concerned with a summary as well as the analysis of these transactions. However, the final motive is to provide the regulatory agencies with the final report.
The main functions of accountants include statement examination in order to determine accuracy, ensuring compliance of the statements and financial records with the law, tax preparation and payment assurance, maintenance of financial records, organizational efficiency on monetary terms, recommendations on management, and inspecting the books of account. Moreover, accounting is also responsible for determining ways in which there can be business cost reduction and increase in revenue and profit generation. As such, it forms the backbone of many business structures in Australia.
The difference in the level of skill requirements, as well as the size of the accounting body, is imperative to the final results. Small firms may require a bookkeeper or accountant but big firms tend to require a specialized group of accountants. Moreover, these large firms may require people with advanced accounting skills. Advanced accounting skills are only conducted by people with distinctions obtained from an accounting regulatory body. In Australia, the body is known as Institute of Chartered Accountants Australia.
Nevertheless, the functions of accountants are more than math, these groups of individuals are responsible for the day to day running of the organization. They are mandated with the responsibility of helping the employees conceive company goals, provide a methodology on how to achieve the goals and provide steps all the way until the goals are achieved.
However, there are many aspects of specialization that fall under accounting. Nevertheless, it usually depends on the level as well as the type of service provided. Some of these fields of specialization are assurance as well as risk management. However, the four main types of accountants are public, management, government, and internal auditor.
Public accountants usually work in governments as well as other corporations and usually provide consultation, tax as well as audit services. On the other hand, the management accountants are responsible for recording and analyzing financial information for their employers. However, their information is for internal use only. The government accountants perform functions for the government and are responsible for maintenance as well as an examination of the financial records. Nevertheless, they also perform functions for agencies that are usually regulated by the government. Finally, the internal auditors are mandated with the responsibility of risk management .They perform this analysis for the funds as well as the organization and moreover, determine ways in which to reduce frauds, waste among other financial irregularities.
As such, increase in accounting positions in Australia Is geared towards improving the financial strategies of organizations. Improving the financial strategies of organizations is one of the ways in which to improve the profitability as well as the economics
The Australian accounting labor market has been compared to those of other countries in terms of employment as well as payment. However, there has been an increase in the inflow of accounting professionals to the Australian market. The Australian financial review has indicated that around 40000 people who are well equipped with accounting skills migrated to Australia thanks to their proficiency in the profession (Tadros & King, 2014).
The increase in the inflow of accounting professions into the Australian market meant that there was a reduction in the number of opportunities for the local graduates. The number of graduates instantly getting jobs dropped from 93% to 80% between the years 2001 and 2012 (Tadros & King, 2014).Nevertheless, in the past five years, there has been an increase in the roles of accountants and this trend is expected to continue till the year 2019. A research body has said that there were about 193000 accountants who were present in Australia as per the year 2014 (Australian Society of CPAs, 2015).Moreover, these accounting opportunities were distributed all over the country. The demand for accountants is so high that the country is insured against the future demand for accountants.
Moreover, universities in Australia have a bigger number of international students who are undertaking the accounting profession as compared to the local students. Locals who are studying accounting have dropped by over 20% while the international students have increased by about 500% (Tadros & King, 2014).This represents a change in the interest of local students as has been reviewed by the Australian Financial review. The bottom line is that in the year 2012, the ratio of local to international students graduating with a degree in accounting was 1:2.5.
It is, therefore, something of a concern for the dwindling local accounting graduates. However, the job market is mostly concerned with the input of an individual to the organization. People who are new in the job market and have proper experience can command a good salary while those who have a larger and wider touch of the job market may have a wider salary, maybe up to six figures. However, the most in-demand accounting job is the Chartered Accountancy. CAs who have experience spanning to over three years are the most marketable accountants in Australia.
Research furthermore indicates that accounting professionals who are based in states such as Perth, and Sydney may be the highest earners. Nevertheless, the highest paid are located in Sydney while Perth follows closely. In this, Sydney accountants are paid about$228184 which is 21% higher than in any other part of Australia (Vandenbroek, 2018).
The growth in the economy, as stated before, has led to an increase in the demand for account ting professionals.However, there seems to be demand for some professionals more than others. The Australian Bureau of statistics indicated that the number of those employed in the year 2017 was the highest in the past decades with the demand of employers increasing across many states. Nevertheless, accountants who mainly deal with financial management, as well as financial control, were the most sought out after especially in the small and medium enterprises (Vandenbroek, 2018). All this can be attributed to the increase in construction as well as manufacturing in Australia.
Regardless, the demand has also been high for professionals who have the necessary soft skills, especially in management. However, the fact that finance managers are in high demand means that those of the same profession but with commendable leadership knowledge may be the most sought after. This is a requirement because of the ability to lead across many related organizations and the ability to coordinate activities. Experience has been based on the previous record of managing and building teams, achieving the required results and managing the talent available (Weller, 2015). Research that has been conducted indicates that professionals with the soft skills required may be the fewest in the accounting labor market.
The difference between accounting professionals also makes the choice and employment opportunities different. However, an increase in demand has been observed for accounting professions who can really maximize the use of humongous amounts of date.46% of the employers would prefer an accountant well conversant with the management and maximization of big data to achieve the company’s goals (Hawthorne, 2016). However, these accountants should understand their role in the overall outcome of the organization and can, therefore, articulate the findings.
The main focus of this research is the employers as well as the accounting professions. Therefore, each of the methodology used focused on these two groups of individuals. Nevertheless, journals, as well as other literature on the Australian labor force, were vital in the research.
To begin with, the coverage was very important as this also determined the sample size. Coverage was done on various parts of the country with regions high in employment rates forming major research point. In each location, the sample size corresponded to the number of the available labor force. Regions with high employment rates and wider geographical reach had larger sample sizes as compared to the geographically smaller regions.
Questionnaires and interviews are important tools in obtaining firsthand information. As such, they were provided both to the employer as well as the accounting employees. The employees provided information on the most preferable types of employees while the accountants provided information regarding the salary, the qualifications among others. The mean and median are used at arriving at the final conclusions.
There has been an increase in the demand for accountants over the past couple of years. The number of those employed in accounting has increased by over 5.6%.However, employment rates are very high in some states such as Sydney and Perth.
The state of Sydney pays accountants about$ 228184 while Perth pays about $206097. Nevertheless, it is the financial leaders who are the highest earners with an estimate of about 4.2 % salary increment.
There is an increase in accounting services requirements in Australia due to the increment in the construction and manufacturing industries. However, there are different roles that are served by accountants and this just brings out the difference in demand as well as the amount of salary available. However, it has been established that finance managers are the most marketable. Soft skills also make the demand for these professionals very high. These soft skills are required for management of organizational activities as well as the growth of talent. Nevertheless, this demand varies across states with some of these states offering the highest salaries for accountants.
Australian Society of CPAs. (2015). Australian Accounting Review.
Hawthorne, L. (2016). labor market outcomes for migrant professionals : Canada and Australia compared.
Tadros, E., & King, A. (2014, February 12). Does Australia have too many accountants? Retrieved from The Sydney morning herald: https://amp.smh.com.au/business/does-Australia-have-too-many-accountants-20140212-32huu.html
Vandenbroek, p. (2018, March 23). Employment by industry statistics: a quick guide. Retrieved from the parliament of Australia: https://www.aph.gov.au/About_Parliment/Parliamentary-Departments/Parliamentary_Library/Pubs/rp/rp1718/Quick_Guides/EmployIndustry&hl=en-Ke
Weller, S. A. (2015). Accounting for skill shortages?Migration and the Australian labor market.