If asked, how long would it take a person to name ten multinational companies? These days, it wouldn’t take as long as it used to. The world is becoming more interconnected and accounting is adapting to that. Responsible for more than just balancing spreadsheets and creating quarterly reports, these days, accountants are also expected to have experience or training in international accounting.
With its own rules, regulations, and standards international accounting is growing by leaps and bounds, as are its practitioners. In sectors as varied as oil and gas, banking, investments, entertainment, transportation, and retail, having a strong international footing is essential and employers are recognizing that.
In a recent article, The Journal of Accountancy cited a poll claiming that “almost seven in 10 (69%) of more than 2,100 CFOs in large U.S. metropolitan areas said international experience will be at least somewhat necessary for accounting and finance staff five years from now…” Even small firms are not immune to the need for international accounting knowledge, “Small companies and companies that don’t have international operations need accountants familiar with international tax laws and regulations to determine their impact on business partners, vendors, and suppliers, McDonald said.” Without this knowledge, their ability to be competitive can be impacted.
With the move towards globalization speeding up, the need for international accounting practitioners will increase in step. Having personnel who specialize in this field is as essential to multinational firms as is having business managers who have training in international supply chain management or a legal staff who specialize in international law. As the article notes, to meet the demand worldwide for a higher standard of accountancy education “The AICPA and the Chartered Institute of Management Accountants (CIMA) joined forces to create the Chartered Global Management Accountant (CGMA) designation”.
This move along with others illustrates the need for accounting professionals and firms to recognize that having international accounting training and experience is the way of the future. And some firms have. In order to find work as an international accountant, candidates must often have to possess a masters in accounting, have spent part of their education abroad, be multi-lingual with a broad understanding of various nations’ financial practices, and have at least 2-5 years’ experience. Along with competitive campus recruiting drives and lucrative internships, some of the best accounting firms when searching for new talent, offer extensive on the job training programs and promote strong mentor relationships between new hires and more experienced staff. They also reinvest in their current talent, assisting them with ongoing education and encouraging lateral movement within the company, so that employees gain a wide breadth of experience and training.
International accounting is a profession that is on the rise. In demand everywhere, highly qualified professionals could opt to work abroad or at home, in large multinational corporations or in small boutique accounting firms. The strongest firms are those that will be able to obtain, train, and maintain international accounting professionals. Even companies that do business strictly within the nation’s borders should look at expanding their knowledge in order to cover their bases. The world is growing smaller, and accountancy must adapt to that.
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