Accounting to Finance: Successfully Making the Career Transition

Regardless of the reason, making a transition into another area of specialization seems to be on the rise, even within the financial world. Many who work in the accounting sector are exploring the possibility of crossing the chasm from accounting to finance. But, just how difficult is such a move?

For some, the transition is seamless. For others, it is more difficult. There really are no hard and fast rules. Your success depends largely on your background, education, and years of experience. It also relies heavily on your relationships. Simply "being in the right place at the right time" can make all of the difference.

In addition, the economy plays a large role in the success of your career move. And, while the current employment conditions are not ideal, the U.S. Department of Labor maintains that the accounting and finance services industry is strong and will continue to grow.

So, given all of the above factors, let’s take a constructive look at what it really takes to make a move from accounting to finance and see if the transition is right for you.

If you ask those in the industry for a specific definition of "accounting" or "finance," you would probably get several different answers. In simple form, accounting involves the accumulation of historical information. Webster’s dictionary defines it as “the occupation of maintaining and auditing records and preparing financial reports for a business."

Finance, on the other hand, involves analyzing the historical information and using it to plan and make future decisions. This includes such areas as budgeting, forecasting, strategic planning and due diligence. However, because it is so vast, finance is difficult to define in one simple term.

Some say the differences between accounting and finance are immense and therefore require two separate types of individuals. These people believe that a person that likes "number crunching" and reporting of numerical data may not necessarily enjoy strategic forecasting and predictions about the future. And, visa versa. On the other hand, there are those individuals who have the capacity for success on both sides of the fence, and you may be one of them.

We know a good CFO (chief financial officer), for example, has these inherent qualities and can balance his or her financial expertise with great strategic vision. But, for the purposes of this article, we want to talk to individuals who are earlier in their career path and help them determine how to marry their interests with their professional lives. So, we decided to look at a real case study.

Recently, Acsys consultants worked with an individual named Scott who lost his job as an accounts payable supervisor. He had been in the position for over five years and had worked with accounts payable for nearly 10. Forced by downsizing to make a career decision, Scott came to Acsys for help.

For a considerable amount of time, he had been thinking about a move into a financial position. But, with the current economic conditions, Scott wasn’t sure it was a good time for this kind of change. Should he try to find another accounts payable position, or should he use this opportunity to make a fresh start and transition into the finance arena?

This is an interesting situation, and not uncommon to many in the industry. So, to help Scott with his decision-making (and others who might be facing similar circumstances), Acsys consultants from different geographic locations provided some advice.

Remember that it is difficult to transition to both a new company and a new career at the same time. While it is true that accounting and finance jobs are still in demand, there are many professionals in the marketplace vying for the same jobs.

Since Scott has such a strong accounts payable background, he is going to be more marketable in that area. With that in mind, his best alternative might be to take advantage of his current skills and look for an A/P opportunity with potential for advancement. For instance, he may opt for a position at a smaller company where he can gain more exposure to a number of different financial areas. A smaller, more entrepreneurial environment may present an opportunity to get his foot in the door to gain experience needed for a position in finance.

Or, he may even choose to move to a larger company with more structure and opportunity for growth. Either way, he will need to do some homework first.

Since Scott is working with recruiters, he has an advantage because he will have a better understanding of the hiring processes at each company. For instance, do they promote from within or do they generally go outside for finance positions? Do they look favorably or unfavorably upon someone coming in with an accounting background with a goal of moving into finance?

Make sure you know the prospective company’s policies first. If you work with a recruiter, be sure to let him or her know your long-term goals so they can properly prepare you for your interview.

As mentioned before, finance is vast and has many different facets. For this reason, having a long-term objective is key. But while we all agree that planning is critical to any successful career, we also know that you can’t always follow a definitive plan.

As early as elementary school we are all faced with the question of "What do you want to be when you grow up?" And, when we enter college many of us have a pretty good plan of action laid out. However, many of us do not. Sometimes, it isn’t until we are older and have some actual work experience under our belts that we really "know" what it is we want to do with our lives.

So remember, it is never too late to make a change, provided you fully understand what it will take to reach your goal. Don’t expect to get where you’re going overnight. Very rarely does that "once in a lifetime" opportunity come along. So be realistic. Making any kind of transition from one specialization to another takes time, patience and hard work.

Even though we are talking about a finance career, most employers still feel accounting degrees offer a solid foundation for financial professionals. So don’t be discouraged if you don’t have an undergraduate degree in finance.

Scott has a degree in accounting, but if he really wants to enhance his marketability, he may want to consider getting an MBA in finance or his CFA (certified financial analyst) certification, depending upon the sector of finance he chooses.

Educational importance can vary by company, as well as geographical location. For instance, in Atlanta, a CPA has great value, even in a finance position. At the same time, however, other markets place a stronger emphasis on professionals with MBA's in finance. The best thing for Scott to do is research what is required for his desired position.

One way he can find out about job requirements is to view the Labor Department's Occupational Outlook Handbook. (www.bls.gov) This handbook describes the expected responsibilities for each position, as well as any education and training requirements.

Something else Scott may consider is reviewing bios of individuals who have the position he seeks. Oftentimes, company Web sites contain biographical sketches of key financial figures. This could be a good way for him to see what career path they followed to get where they are.

Even though Scott has an accounting degree, the transition to finance will still be challenging because accounts payable is so specialized. An easier transition for him might be to seek an accountant position where he can gain more exposure to the other accounting areas such as general ledger. General ledger work is more analytical in nature and can often lead to budgeting, forecasting, and ultimately finance.

Either way, once Scott has found his new job (either in A/P or accounting), he should seize every opportunity he can to assume analytic roles. While having the proper educational background is beneficial, few companies will hire individuals without some type of financial experience. Scott will need to be proactive about asking his employer for additional responsibilities and special projects that allow him a chance for more analysis, planning or budgeting.

He should also keep an eye out for opportunities inside his new company. Many employers will allow professionals the opportunity to advance to other departments to avoid losing a valuable employee.

While there are vast differences between accounting and finance, and bridging the gap is not always easy, it can be done. It just requires a little patience and a lot of hard work.

As careers in finance continue to remain competitive, it will be critical to understand what it takes to get there and map out your strategy accordingly. Realistic expectations, along with planning and execution can give you the competitive edge you need to succeed.

Acsys professionals Patty Homrich, Patricia Bethune, Candice Ebersole and Dom Vacca, contributed to this article with career advice and editorial commentary.

Acsys Inc. is a provider of professional staffing to the accounting and finance industry. Specializing in entry-level to executive placement, Acsys offers both interim and long-term solutions to Fortune 500, middle-market and emerging growth companies. Acsys' Professional Crossroads column, produced by career counseling experts, aims to assist accounting and finance professionals with critical career decisions. If you have a topic related to career transitions that you'd like Acsys to address, let us know at editor@smartpros.com.