The talent is in the choice

Exploring newly-arrived accountants experiences gaining employment in Australia An ACCA research paper

Contents

About this research Methodology Key findings Report Conclusion

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About this research

There has been much debate over the past 12 months about the shortage of qualified accountants in Australia. To address this shortage, the Australian Federal Department of Immigration has been encouraging skilled migrants such as those with an ACCA designation to consider living in Australia. ACCA members have been migrating to Australia from around the world for many decades and the numbers are increasing each year. Australia has welcomed over 4,000 people who have earned the ACCA designation. Indeed, the bulk of ACCAs members in Australia obtained their ACCA qualification in another market. This means that ACCA members working in Australia are truly diverse, originating from many countries around the world. It is important to acknowledge that migrating to another country is a life-changing decision. To assist newly arrived accountants to adjust to working conditions in Australia, and to encourage ACCA members living in other countries to consider working here, ACCA has commissioned research to explore members experiences working in Australia and adapting to life in a new country. It is hoped the findings from the research will help newly-arrived ACCA members to adjust to life in Australia. It is also anticipated the findings will be used by members considering migrating to Australia as background research before taking the decision to immigrate. Importantly, ACCA wants the wider accounting community to take note of this paper when considering hiring an accountant who has gained overseas experience. As the findings show, an accountant with the ACCA designation has skills that are directly, and immediately, transferable to the Australian working environment. An accountant who has gained experience overseas is also likely to be able to provide a perspective on a business that someone with only local experience cannot. While it is easy to assume that a newly arrived accountant wont have the same skills as an accountant with an Australian background, there are many benefits a person with overseas experience can bring to an organisation that a local person does not have. Picking up specific local knowledge can be learned relatively quickly what takes time is developing the skills and knowledge to pass the exams and complete the training requirements to become an ACCA member.

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Methodology

Findings from this research are based on responses received from 536 ACCA members to an electronic questionnaire of 12 questions. The questionnaire was originally sent to 1,112 members, with the response rate to the questionnaire being 48 percent. The questions were a mix of short answer questions and questions developed on a Likert Scale. The questions were developed after a roundtable discussion ACCA held in early 2006 with leading members of the accounting and business communities to ascertain the most common challenges newly arrived accountants face in their workplaces. A copy of the questionnaire appears in Appendix A.

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Key findings

70 percent of ACCA members felt they were able to fully utilise their skills in their current role. In particular, respondents said that accounting principles are the same the world over, and what they had learned during their training with ACCA was directly applicable to the Australian situation. Many said that learning Australian differences in tax and business law did not take long. However, 26 percent of members indicated they were not fully utilising their skills, indicating an opportunity for some Australian businesses to further utilise their accountants with the ACCA designation. ACCA members felt that they had skills that accountants who had only trained in Australia did not have. In particular, ACCA members felt they had particularly strong skills in International Financial Reporting Standards, international tax and working on large transaction. Despite this, 52 percent of members reported that they had trouble having their overseas experience and education fully recognised by Australian employers. ACCA members in Australia are truly culturally diverse responses to this survey were received from accountants who received their initial training in 20 different countries. Despite the geographical diversity of the membership base, the training ACCA accountants receive is the same: no matter where they are located, every ACCA member has to pass the same set of very challenging accounting exams.

The majority of members who responded to this survey (55 percent) said that it took them less than six months to adjust to working life in Australia. ACCA members in Australia are most likely to have gained their formal accounting qualifications from ACCA in either the UK (36 percent of respondents) or Asia (35 percent of respondents). ACCA members in Australia are also members of a range of other professional bodies in the financial services area, demonstrating ACCA members propensity to extend their education and experience in fields related to accounting through further study. Other professional bodies to which ACCA member belong include: Certified Senior Advisors Institute of Indirect Tax (UK) Management Information Systems Association Singapore Insurance Institute The Chartered Institute of Bankers (UK) The Chartered Institute of Marketing The Chartered Insurance Institute (UK) Association of Corporate Treasurers (UK) Financial Services Institute of Australasia Irish Taxation Institute The Chartered Institute of Taxation (UK) Information Systems Audit and Control Association Institute of Chartered Secretaries and Administrators (UK) Certified Management Accountants (Canada)

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Key findings

The majority (61 percent) of respondents had not gained any other formal qualification since arriving in Australia. This demonstrates that the skills learned through ACCA are sufficient to gain skilled employment in the accounting industry Australia. A number of ACCA members have, however, chosen to continue their education after having arrived in Australia and interestingly, many have earned qualifications in disciplines other than accounting. Respondents to this survey had also earned qualifications from professional bodies in the areas of marketing, securities and insurance. Cross-disciplinary education allows an individual to bring a valuable range of different perspectives to a problem or task.

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Report

1. What is your current position? Job title Account director Accountant (hybrid role) Accounting team leader Associate director Banker Bookkeeper CEO Chairman CIO Company secretary Compliance officer Divisional heads Financial planner Forensics Group accountant Group finance manager Insolvency practitioner IT Managing director Migration agent Partner Project manager Real estate agent Student Treasury Assistant accountant Assistant manager/deputy manager Finance officer Internal audit Self employed Taxation accountant Academic lecturer Accounting analyst Accounting manager Accounts clerk/admin Business analyst Business owner CFO % >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 >1 1 1 1 1 1 1 2 2 2 2 2 2 2

Finance manager Financial analyst Director Management accountant Consultant Financial accountant Senior accountant Auditor Financial controller Not employed Manager/supervisor Accountant

2 2 3 3 3 4 4 5 7 7 14 17

A wide range of people holding different job titles are represented in the research, with a total of 50 different job titles named by respondents. By far the most common response to this question was accountant, with a total of 17 percent of respondents calling themselves an accountant. The sample also includes representatives at various levels of seniority, from bookkeepers to chief financial officers and even a CEO.

2. How long have you been employed in your current role? Less than one year One to three years Three to five years Five to ten years More than ten years % 41 36 10 8 5

Forty-one percent of respondents had been in their job for less than one year, the highest percentage of responses. This was followed by respondents who had been in their jobs for one to three years, 36 percent of respondents.

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The third most common response was those who had been in their roles for between five and ten years. This indicates the liquid nature of the employment environment in the accounting and financial arenas.

3. In addition to your ACCA designation, which other qualifications do you possess? Twenty-five percent of respondents only carry the ACCA designation. Seventeen percent of respondents possess a post graduate degree in addition to their ACCA designation. Twelve percent of respondents possess an undergraduate degree in addition to their ACCA designation. Of those that carry designations from other professional bodies, respondents were most likely to have also earned a designation from an accountancy professional body other than ACCA, with 13 percent of respondents having earned a designation from another accountancy professional body. Six respondents had earned designations from professional bodies in the tax area. Five respondents had earned designations from professional bodies in the information technology areas. Respondents had also earned qualifications from professional bodies in the areas of marketing, securities and insurance.

American Institute of Certified Accountants (US) Certified Senior Advisors Chinese Institute of Certified Accountants Institute of Chartered Accountants of Pakistan Institute of Indirect Tax (UK) Management Information Systems Association National Institute of Accountants Singapore Insurance Institute The Chartered Institute of Bankers (UK) The Chartered Institute of Marketing The Chartered Insurance Institute (UK) The Institute of Accounting Technicians in Ireland Association of Corporate Treasurers (UK) Financial Services Institute of Australasia Institute of Certified Public Accountants of Kenya The Institute of Chartered Accountants in England & Wales (UK) Irish Taxation Institute Association of Accounting Technicians of Sri Lanka Institute of Chartered Accountants of India Institute of Chartered Secretaries and Administrators (Canada) New Zealand Institute of Chartered Accountants The Chartered Institute of Taxation (UK) Information Systems Audit and Control Association CPA Australia Institute of Certified Public Accountants of Singapore Institute of Chartered Secretaries and Administrators (UK)

# 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 3 3 1 3 3 4 4 4 4

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Certified Management Accountants (Canada) Hong Kong Society of Accountants Malaysia Institute of Certified Accountants Hong Kong Institute of Certified Accountants Chartered Institute of Management Accountants Association of Accounting Technicians (UK)

5 8 9 11 12 14 None CPA designation Other University degree ICAA designation NIA designation TAFE course Other qualifications gained from:

% 61 13 12 7 3 3 >1

4. What qualifications have you gained since arriving in Australia? The majority of respondents had not gained additional qualifications since arriving in Australia. While a small number of respondents just under three percent had opted to gain additional accounting qualifications in Australia, the vast majority of members had not gained an Australian accounting qualification since arriving here. This demonstrates that members do not necessarily need to gain a local accounting qualification in order to practice in Australia. Interestingly, a total of 20 respondents had chosen to extend their education once in Australia by earning qualifications in a field other than accounting, including in the fields of mining and metallurgy, digital communications, insolvency and even event management, demonstrating the ability of ACCA members to develop experience in a range of different fields.

Association of Corporate Treasurers (UK) Australian Institute of Mining and Metallurgy Certified Management Accountants Certified Senior Advisors CFA Institute Chartered Secretaries Australia Hong Kong Institute of Certified Public Accountants Hong Kong Society of Accountants Information Systems Audit and Control Association Insolvency Practitioners Association of Australia Institute of Chartered Secretaries and Administrators (Canada) Institute of Internal Auditors Institute of Management Consultants Mortgage Industry Association of Australia New Zealand Institute of Chartered Accountants Taxation Institute of Australia The Financial Planning Association The Institute of Chartered Accountants in England & Wales

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5. Where did you gain your formal qualification(s)? % 36 35 13 9 6 1 >1

UK Asia Africa Other Middle East North America Europe

Accountants trained in the UK (36 percent) and Asia (35 percent) were the largest groups represented in the sample. The cultural diversity of the membership base is reflected in the response to this question, with members originating from countries including Mauritius, Kenya and Malta. Respondents from a total of 20 different countries completed the survey.

Hong Kong Institute of Certified Practicing Accountants Institute of Chartered Secretaries and Administrators Institute of Cost & Management Accountants of Pakistan Institute of Internal Auditors Institute of Taxation Ireland New Zealand Institute of Chartered Public Accountants The Association of Accounting Technicians (UK) Hong Kong Society of Accountants The Chartered Institute of Management Accountants

7. Do you believe you are able to fully utilise your professional skills in your past and current roles in Australia? Seventy percent of respondents answered yes to this question, with 26 percent answering no. Four percent of respondents did not respond. Of those who said they were able to fully utilise their skills in Australia, comments included that they were: able to gain employment in a bank which would have been more difficult in London And that accounting principles are the samethe only differences are tax and legal issues. This was a common sentiment, with other respondents stating that accounting skills are transferable from one boundary to another and that audit is the same everywhere.

6. Did the Australian Federal Department of Immigration recognise the qualifications you gained overseas? Sixty-seven percent of respondents said their ACCA designation was considered to be the equivalent of a local undergraduate degree ONLY after successful completion of a bridging course in Australian law and taxation. Eleven percent of respondents said their undergraduate degree was recognised by Australian immigration. Other qualifications that were officially recognised include qualifications provided by:

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Another respondent stated that there are better opportunities available to me in Australia than in the UK to utilise my professional qualifications. One respondent noted that employers want overseas trained accountants as they have a good reputation and a good work ethic, while another said that there is a high demand for skilled finance professionals. One stated that the working culture is good over here and it is just a matter of time to get familiarised with the local laws and practices. Another said that a lot of the skills gained with an ACCA qualification are generic and indicate you have the aptitude for highly skilled accountancy roles. In terms of specific experience overseas members can bring to Australia, one commented that he felt his employer appreciated the IPO and listing experience [he] gained in the UK to Australia. Another said that knowledge of IFRS is beneficial as it has been adopted in Australia in 2005/6. Of those that said they did NOT feel they were able to fully utilise their skills once in Australia, some of the comments included that: Corporate life is quite different in Australia and that the working culture is different in Australiatax and governance is also different. Another said that its been difficult getting a job. Despite experience gained overseas in positions such as financial controller and

finance manager I have failed to get similar positions in Australia. Another said that you cannot be granted membership to the associations here without significant additional study.

8. What emphasis do employers in Australia place on local qualifications and experience? % 39 32 22 4 3

Very high High Average Low Very low These findings show that local employers place a high emphasis on local experience.

(There appears to be a perception gap here between members perception that their skills are transferable and applicable to the Australian environment, and the perception that local employers place a high level of importance on local qualifications.)

9. Do you have skills that your colleagues who gained qualifications in Australia do not have? Yes No No response A majority of respondents reported that they felt they had skills and experiences that colleagues who had only Australian experience did not possess. 59 38 3

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When asked to state what these skills were, respondents reported that they had additional skills in the following areas: Interpretation of International Financial Reporting Standards Knowledge of overseas tax, accounting and business legislation A broader outlook than colleagues with Australian experience only due to having worked in more than one market A wider view of commerce and more experience, which equals more confidence to initiate change and ask why? Flexibility and adaptability

Having worked in London I have had a greater exposure to financial markets, on a bigger scale than Sydney Another said that he believes that my ACCA [designation] gave me an edge over other Australian qualified accountants. Another commented that, thanks to the skills he has acquired through ACCA, he has a combination of accounting, audit, taxation and company secretarial skills that none of my colleagues have. Another noted that I have found it very easy to pick up Australian law.

Others said they had: Better experience working with large firms and clients than domestic accountants Better all-round skills Australian accountants tend to specialise in functional areas. Better ability to deal with people of different backgrounds Better exposure to how corporations work in different countries, especially in GST, which has been in place in the UK and Ireland for more than 20 years 10. What were the main challenges you faced when you arrived in Australia in terms of obtaining employment? (Responses total more than 100 percent because respondents could provide more than on response to this question.) % 52 28 27 23

ACCA members are also very likely to speak a language other than English, another advantage over peers solely educated in Australia who are unlikely to be able to speak a second Language fluently. Other comments included that:

Difficulty in having overseas qualifications and experience recognised Understanding the Australian business environment Gaining employment Understanding cultural differences in the workplace Other challenges respondents reported:

Having worked in insolvency in the UK, I have had exposure to much larger insolvency projects than most Australian workers could imagine.

Dont arrive in Oz two months before Christmas when no employer is in a recruitment frame of mind! (This is extremely important I arrived at the end

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of October and began work in February.) At 47 some employers considered me too old. Getting Australian experience is important, but once you get your first contract its easier. Big four experience is very useful for overseas candidates. Understanding the regulatory environment

11. What did you do to overcome these challenges? Responses to this question were varied. A selection of the more common responses appears below: I tried all possible employment opportunities (relevant to my skills and professional qualifications) to increase my chances of becoming employed. The Australian Taxation Offices website was very useful in gaining an understanding on the Australian tax regime. Business programs on TV and newspaper The Australian Financial Review are other sources of information. Be emotionally and mentally prepared to face the difficulties of getting a job in another country. Present well at interviews. Fully explain your previous positions. Join lots of agencies. Be patient. I applied directly to the firm. I was offered a job through my former employer in the UK. It took me about two years to fully understand the cultural differences in the workplace and to recognise the need for personal change if I was going to be

continuously successful in the Australian workplace. To overcome these challenges, it helped to be exposed to the Australian way of life by socialising with as many people at work and outside work, and not just mix with members of my own community. Join a multi national corporation. My big four experience and my ACCA qualification got me a three week contract with ING, which was extended to three months. Peer feedback was a great help. I undertook bridging subjects in Australian taxation and company law to gain knowledge of local legislation. Work for an overseas company my current employer is a French company so they are used to people from overseas I work harder than my peers. I wrote a good CV and worked hard to make employers understand the experience I have at interviews.

12. How long did it take you to adjust to working in Australia? Less than six months Six months One year Two years Three years Five years and over 55 14 14 6 2 >1

These figures show that for most people, it does not take long to adjust to working life in Australia. The majority of respondents reported adjusting within six months (55%).

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13. When you were first employed in Australia, did you perceive that your skills filled gaps in your place of employment that were previously lacking? Responses to this question were almost evenly split, with a small majority, 51 percent indicating they felt they did have skills that were lacking in their place of employment. Forty-nine percent of respondents stated that they did not believe they had skills that were previously lacking in their place of employment. Some of the skills respondents reported that they felt they had that were missing in their place of employment before their arrival included: Better experience of working on large transactions International Financial Reporting Standards experience Analytical skills IT skills Audit skills in a small professional practice Experience gained working for large London companies

Experience in organisations being privatised Financial modelling, knowledge of financial markets and instruments Experience in the hedge funds industry Insurance experience learned during a year in Bermuda gaining these skills International business acumen International treasury management UK tax system VAT/GST knowledge

One respondent commented that balance sheet risk-based auditing was severely lacking in Australia when I arrived in 1998. I saved my company many thousands of dollars in changing the approach to auditing. Another said that I was the only one who was prepared to sit down and trawl through pages of data to reconcile an international company's business activity statement which had not been correct for 6 months. Another member stated that: in my first role I was specifically employed because I was an accountant with SQL report writing abilities which was not a common skill here then.

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Conclusion

Newly-arrived ACCA members are often presented with similar objections when applying for a job in Australia. They are told they do not have the requisite local experience to carry out a particular role. Sometimes, employers do not fully comprehend the strenuous nature of the training they receive through ACCA. In addition, in certain instances members skills have not been fully appreciated by a prospective employer, forcing an ACCA member to take a job that does not utilise their experience to its full potential. While it may be natural for local employers to favour an Australian candidate over an overseas candidate, its also important to recognise the benefits an ACCA-trained candidate who may be newly arrived to this country can bring to a business. International business acumen, an understanding of International Financial Reporting Standards and the propensity to work hard and learn quickly are just some of the key attributes ACCA members possess. With the current severe shortage of finance and accounting staff in Australia, ACCA is urging the Australian business community to think about its attitude to job candidates with overseas experience and, instead of emphasising a lack of local experience in the hiring process, appreciate the unique talents an overseas candidate, particularly one with an ACCA designation, can bring to a role.

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A study by the Association of Chartered Certified Accountants Completed December 2006

ACCA Australia and New Zealand Suite 707 109 Pitt Street Sydney NSW 2000 tel: +61 2 9233 1242 / fax: +61 2 9233 1245 / ausnz@au.accaglobal.com / www.accaglobal.com The Association of Chartered Certified Accountants, 2006