What is Finance Management?
Finance is a critical component of a business’s operation, business, and growth. It is one of an organization’s four primary functional pillars, alongside Marketing & Sales, Operations, and Human Resources. Corporate Accounting is one of the many sub-categories of a business’s finance function. Modern accounting has evolved significantly and now encompasses a range of subjects ranging from straightforward bookkeeping to more complex tax filing, regulatory compliance, and chartered accounting.
With changes in educational policies and systems, India’s education system is gradually shifting toward training students to be better professionals. Colleges and universities are now focusing on providing more practical (Online / Distance) courses and incorporating experiential learning into the overall curriculum.
Corporate Accounting is one of a number of such courses that are undergoing significant changes and offering excellent career opportunities. Corporate accounting is a subset of an MBA in Finance Management. It delves into the numbers that underpin a company’s or business’s finances and provides an overview of the company’s financial health.
Students and aspirants interested in the broader field of finance have a variety of options, and Corporate Accounting is a critical stream that adds significant value to a student’s resume and work experience as a professional.
What is the definition of corporate accounting?
Corporate accounting is a subset of accounting that is concerned with the accounting for businesses, the preparation of their final accounts and cash flow statements, the analysis and interpretation of their financial figures, and the accounting for specific events such as mergers and acquisitions (M&A), amalgamation, and absorption, as well as the preparation of consolidated balance sheets.
Why is Corporate Accounting a viable career path?
MBA in Banking (MBA-Finance) is one of the streams that provides numerous career opportunities both in India and abroad. Accounting is highly technical in that it is predicated on a set of financial fundamentals and standards. Accounting is more concerned with the back-end tasks of a company’s finance functions and is a critical component of the business side of things.
Consider the following reasons why Corporate Accounting is a viable career path –
- A Diverse Syllabus: One of the more unique benefits of studying Corporate Accounting (Finance) is the opportunity to acquire a diverse set of skills and knowledge. The curriculum allows for specialization in a variety of areas, including financial accounting, cost accounting, managerial accounting, forensic accounting, fiduciary accounting, tax accounting, and auditing. Possessing a firm grasp on the aforementioned areas enables a balanced career and growth. The varied curriculum prepares students and professionals for careers in accounting and finance.
- Corporate Accounting is a highly technical field that requires a specific set of skills. It’s all about crunching numbers, costing, and analysis. There are numerous career opportunities available to professionals with these skills, and the opportunities continue to improve as corporate accountants gain experience. When professionals begin their careers in accounting, they are typically assigned to the Accounting Executive role. Accounts Payable/Receivable, Junior Accountant, Staff Accountant, Finance Accountant, and Audit Associate are all popular early-stage career options.
- Job stability: Accounting, or corporate accounting, is one of the few professions that will not disappear anytime soon. As long as there is a business transaction, accountants are required. Add to that the requirement for tax filing and management of the company’s financial books – there is a great deal of reliance on accountants. According to the US Bureau of Labor Statistics (BLS), accountant employment will grow by 10% between 2016 and 2026. Technically, each business entity requires an MBA for Working Professionals knowledgeable in the field of corporate accounting.
- Consistent growth: With experience, an accountant can advance to the position of accounting manager, overseeing a team of fellow accountants. Accounting managers have a broader range of career opportunities because they gain expertise in areas such as people management and financial analysis. As their careers progress, accounting professionals have the potential to advance to the top-level position of CFO (Chief Financial Officer), who oversees a company’s entire finance function. It is critical to remember that the journey to leading any functional department (in this case, finance) is lengthy and requires a significant amount of effort and planning.
- Accounting is a sector-neutral career path because it is standardized across multiple industry sectors. Accountants will continue to be in demand in a variety of industries, including software, retail, hospitality, government, and manufacturing. Due to the fact that accounting fundamentals remain constant, professional corporate accountants can work in any industry sector and for any company.
- Entrepreneurial opportunities: Professionals from a variety of industry sectors with a variety of skill sets and experiences typically have excellent growth prospects; however, not all of them will have the option to become entrepreneurs. Corporate accounting is one of the few professions that offer significant opportunities for entrepreneurialism. Accountants can choose to work independently and establish their own accounting firm. Additionally, the ease of doing business is excellent for the accounting profession. Accounting is one of the easier areas of business to start and grow steadily through established networks and collaboration.
Numerous accountants form partnerships with other accountants and tax and auditing professionals to establish their firms, making it simple to grow their business and profitability.
Accounting Career Opportunities
Corporate Accounting offers a diverse range of career opportunities for students and professionals seeking to advance their education and experience. Accountants can work in a variety of job categories. Several of these career categories include the following:
- Auditing is an excellent career option for anyone with an eye for detail and an interest in the overall operation of financial statements. Auditors conduct a company’s financial evaluation and ensure that financial data is presented in its most accurate form. Auditors accomplish this by analysing balance sheets, cash flow statements, and income statements in order to ascertain the company’s financial status and representation. Auditing is one of the most difficult job profiles to fill, but it is also one of the most respected and rewarding.
- Budget Analyst: This is an intriguing career path for Corporate Accounting students. Budget analysts conduct extensive analysis of a company’s budget allocations for various purposes. A budget analyst’s primary responsibility is to oversee budgets and assist top management in streamlining their expenditures. Budget analysts assist businesses by identifying areas of wasteful spending and recommending ways to cut costs for increased profitability. They conduct an analysis of various budget expenditures and their impact on the business.
- Tax Accountant: A Tax Accountant is one of the most in-demand and popular jobs across multiple functional areas. Each individual and business entity requires the services of a tax accountant in order to file taxes properly and on time. Tax accountants ensure that all required information is provided in a timely and accurate manner. Additionally, they assist individuals and business entities in obtaining any overdue tax refunds from the government. While the job of a Tax Accountant can be strenuous, it provides a steady stream of work and is an excellent way for accountants to begin their careers as freelancers or entrepreneurs.
- CA & CS: Accounting will pave the way for higher-level professional services such as those provided by Chartered Accountants (CA) and Company Secretaries (CS). Both of these professional services are in high demand and represent highly regarded job profiles. The CA position has a high reputation and is widely regarded as one of the most technically proficient job profiles. The CS profile is that of a ‘conscience seeker’ for the company, charged with ensuring compliance with all legal requirements.
- Corporate Accounting experience will equip professionals with the fundamental knowledge and skills necessary to study for and pass the CA & CS competitive examinations.
- Forensic Accounting: Forensic accounting is the art and science of identifying criminal and civil illegal activity involving funds and investments. Forensic accountants assist in identifying financial embezzlement, fraud, and financial theft. The accountants here employ not only accounting and auditing expertise, but also investigative skills to ascertain the sequence of events in the event of financial fraud.
Corporate accounting is a technical subject that necessitates the acquisition of a specific set of skills and knowledge. Under the right guidance, students pursuing a course in corporate accounting stand to benefit enormously. A career in corporate accounting is not only financially rewarding, but also provides an abundance of learning opportunities and opens the door to numerous professional and entrepreneurial opportunities.