eFinancialCareers

Talented, ambitious finance professionals will go far.

If you want to be an accountant in an investment bank, there are two main entry routes. You can join straight from university or you can gain an accountancy qualification elsewhere and then move to an investment bank.

Accounting roles in the City are not for the faint-hearted. The work is well-paid but fast-paced. Expect to work long hours in a highly-charged environment.

There are several varieties of financial services firm to choose from. The most important are fund management firms, which invest money for pension funds, insurance companies and individual investors; hedge funds, which invest money for private investors using complicated trading strategies; and investment banks, which are financial services power houses that do everything from trading financial products to helping companies execute M&A deals. The best-paid accounting jobs are in investment banks, but retail banks and insurance companies also need accounting talent.

Trends

"There's never been a better time to consider a career within banking or financial services while studying towards a professional accountancy qualification" says Sarah Williams, associate director at recruiters FSS. "The pace at which these already buoyant markets are developing means that demand is exceptionally strong – and is likely to continue to be so."

Demand is so high that many banks – while not compromising on the calibre of person they take on – are more prepared to be flexible when considering candidates' backgrounds: "Employers now realise the importance of employing candidates from practices other than the Big Four," says Tanya Sharma, an investment banking consultant with Joslin Rowe.

"They're not as concerned if the people they take on have no financial services audit experience."

Accountants have evolved from number-crunchers to business advisers, says Steve Carter, managing director of Nigel Lynn. "What the financial institutions look for today are finance professionals who are highly proficient technically – but who can demonstrate a broader range of wider commercial skills."

Key players

If you want to work for a bank, there's no shortage of employers around. The world's largest financial institution, according to US magazine Fortune, is US-based Citi, followed by Fortis, the Benelux-based insurance group, France's Crédit Agricole and London-based HSBC.

These giant institutions all have investment banking arms. But they also have retail banking networks, through which they take deposits from consumers. 'Pure' investment banks, such as Goldman Sachs, Morgan Stanley and Merrill Lynch, are small by comparison.

Roles and career paths

At fund managers and hedge funds, accountancy roles are typically for 'fund' accountants who provide ongoing reports on the value of the fund's assets and liabilities, check that all funds received are properly accounted for and help prepare for end-of-year reports and submissions to the Inland Revenue. But in investment banks, accountants are more diverse.

In the front office, accountants are hired into corporate finance, raising money for companies involved in M&A deals, or into equity research, advising on the future of companies' share prices. Accountants working in the front office are typically ACA-qualified.

In the back and middle offices, accountants occupy a number of roles:

• Product controllers work with traders to monitor and restrict the risks the bank is exposed to. Like traders, they specialise in a particular class of financial product.
• Management accountants provide information on the state of the bank itself. This enables managers to formulate strategy based on knowledge of risks and budgetary constraints.
• Financial reporters produce monthly and year-end accounts and meet the reporting needs of the Financial Services Authority (FSA).
• Technical accounting specialists help banks ensure they meet the needs of regulators, such as the FSA, and adhere to requirements such as International Financial Reporting Standards (IFRS).

Pay

Money is what induces many accountants to switch to banking. Basic salaries are up to 40% higher than in private practice and there can be substantial bonuses on top. The best-paid jobs are for product controllers working with derivatives. According to Joslin Rowe, product controllers (who are currently most in demand) with between two and five years' post-qualification experience (pqe) can earn a basic of up to £68k plus a 50% bonus.

Skills

All-round skills are called for, says Andrew Garratt of Fidelity International: "Attention to detail, an understanding of the big picture, calmness under pressure are required," he says. "They need to be hard-working but smart with it – and have an ability to work with people at all levels and gain respect from the management team."

Recruits must also be able to meet the demands of a complex environment. Regulatory demands have changed accountancy, says Steve Carter of Nigel Lynn: "With Sarbanes-Oxley and Basel II impacting on how companies organise their financial reporting, as well as how they assess risk, individuals must have with a clear understanding of these developments and how they impact on the business's infrastructure."