A recession is classified as a period of negative economic growth, typically for two or more consecutive quarters. Depending on the length and severity of the recession, it can result in financial losses for companies with some going bankrupt — leading to massive job layoffs for workers.
While it is difficult to determine which jobs will be lost during a recession, there are some careers that are more likely to withstand its effects than others. Jobs in sectors that are booming, such as emerging tech, are likely to sustain. Some professions are fundamental to any businesses, because their role is crucial to a company’s existence. One of those vital professions is accountancy.
Enduring any economic climate
According to a 2019 report by Randstad Financial & Professional, accountants were most capable of enduring the changes to the financial services sector during the recession. The research also revealed that the accounting profession’s aggregate salary bill rose by 11.5% between 2002 and 2014 whilst the average salary bill for other private sector professions plunged by 37%.
After all, accountants have essential knowledge and skills that are useful in an economic crisis. Having a deep understanding of corporate finance coupled with the skillset analysis of accounts and business plans can make accountancy professionals indispensable to any company. Conducting financial forecasts and risk analysis as well as managing insolvency cases are skills that a necessary especially in a downturn.
Why Choose ACCA Qualification?
It is by no means easy to become an accountancy professional or ACCA, but it is certainly achievable. While the CA and CFA courses are notorious for their single digit pass percentages, there are accountancy courses, which are more flexible both in structure, course load and academic prerequisites. ACCA, the high regarded qualification & certificate can be taken up by students after completing grade 10 of the CBSE, ICSE or state board (Read about Scope of ACCA).
The ACCA can also be taken up, not only by commerce students or graduates, but also by B. A or B.Sc. students or graduates. Those who pursue an ACCA qualification while completing their graduation, can often complete the ACCA degree by the time they graduate, making them job ready immediately. Working professionals in the finance or administrative domain also find that upskilling with ACCA works for them, due to the flexible nature of the course. Another plus point is that the pass percentage for the ACCA is 10 times higher on average than for the CA exams.
What it means to be an ACCA Professional
ACCAs are the most sought-after professionals across the globe because of their technical skills, strategic thinking, and professional values. There has always been and there will always be an increasing demand for ACCA professionals as they are responsible for evaluating existing business procedures, have the ability to come up with effective solutions in times of economic crisis, and drive their organization forward.
To weather the storm of any recession, it is important for professionals to equip themselves with the right skills. Though financial accountancy being the cornerstone of any business, it has been traditionally seen as a profession with many barriers to entry. While still a challenging field, accountancy is sector agnostic, allowing you to work in fields as diverse as entertainment, healthcare, education and more. In India, accountancy has now opened up with courses that are more inclusive and flexible, with great scope to work both in India and internationally.
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