Analysis of Accounting and Service Industry in Australia: Growth, Role, and Employment

In this document we will discuss about Analysis of Accounting and Service Industry in Australia and below are the summary points of this document:- The article is about the accounting service industry in Australia and its role in different businesses. The main products offered by the accounting service industry are bookkeeping, auditing, advisory services, and payroll maintenance. The growth of different industries in Australia has resulted in the demand for more accounting professionals, and the accounting profession industry experienced a growth of 2.6% between 2012 and 2017.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
1.0 Introduction...........................................................................................................................2
1.1 Introduction to Accounting and Service Industry.............................................................2
1.2 Future Growth Projection of the Industry.........................................................................6
1.3 Specific Areas of Employment..............................................................................................6
1.3.1 Role of Accountant in a Business.......................................................................................7
1.3.2 Essential Skills needed in Accountant................................................................................7
1.3.3 Remuneration and Other Benefits of Accountants.............................................................8
2.0 Selected Accounting and Service Firm...............................................................................10
2.1 Introduction to the Company..........................................................................................10
2.2 Company’s Culture and Working Environment.............................................................10
3.0 Investigation Interview.......................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

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1.0 Introduction
1.1 Introduction to Accounting and Service Industry
The main concern of this assessment is to analyse the role of accounting service industry in
relation to other businesses which are operating in Australia. The accounting service industry has
received immense recognition in the wake of scandals and growth of different businesses in the
market. The main products which are offered by accounting service industry to different
businesses are bookkeeping, auditing, advisory services and payroll maintenance. The main
responsibility which can be recognised for accounting professional is that they need to
appropriately present the financial performance of a company so that the investors and other
stakeholders are able to interpret the same and make financial decisions on the basis of the same.
The growth and expansion of different industries which are operating in retail, manufacture,
food, textile or service has resulted in growth and demand of more accounting professionals. In
order to ensure proper disclosure of financial information various accounting standards are
established.
As per the market conditions which is present in Australia, the market is very much
favourable for accounting profession as the profession has generated around $ 20 billion in 2018
which is more than the revenue which was generated in previous year. Most of the Young
Graduates who are engaged in accounting courses have a vision to work for one of the big
accounting firms. A survey shows that the accounting profession industry has experienced a
growth of 2.6% between 2012 and 2017 (Afpbb.com.au. 2019). It is further estimates that more
than one lakh fifteen thousand. A table is presented below which shows the financial results for
accounting service industry for current period.

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Industry Revenue (2013-
2014) $ 17 billion approx.
No of Employees from the
Section 115000 (2017)
Number of Accounting
Services Firms 31,762
Wages 2013-2018 $ 20
billion
Proportion from Total Market
2013-2018 11%
Overall Growth in the
accounting Service Industry
2.6% (2013-2018)
Figure 1: (Statistics Relating to Accounting Service Industry Operating in Australia.)
Source: (National Industry Insights Report. 2017)
Figure 2: (Chart Showing Employment level of accountants between 2002-03 and 2012-13.)
Source: (Docs.education.gov.au. 2019)

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Figure 3: (Chart Showing Employment growth of accountants in comparison to Other Industry.)
Source: (Docs.education.gov.au. 2019)
The chart which is presented above shows the employment level in the economy of
Australia and how the same has grown significantly over the years (Tucker and Schaltegger
2016). The estimates which are presented in the graphs are based on the data which is available
up to the year of 2012-13. The above presented graph appropriately shows the growth in the
profession of accounting and the same is anticipated to further develop over the next few years.
Another graphical representation of employment opportunities of accounting clerks and
bookkeepers are shown in the figure which is presented below:

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Figure 3: (Chart employment level for Clerks and Bookkeepers in Australia)
Source: (National Industry Insights Report. 2017)
The chart above portrays a more recent survey in the growth and development of
employment opportunities which is present in Australia. As per the figure above, the
opportunities for bookkeepers and accountants are shown to be on the rise as per the estimates of
2018. In addition to this, the profession is expected to thrive more in the coming years as per the
projections which is made by the graph above.
1.2 Future Growth Projection of the Industry
The analysis of the current market scenario which is present in Australia shows that the most
of the industries is growing and this provides scope for the accounting service industry to grow
as well. The accounting profession is required in most of the businesses for depicting financial
performance of the business in annual reports or for maintaining the books of accounts (De

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Lange, Jackling and Basioudis 2013). Therefore, there is no doubt that the accounting profession
would be in constant demand as more and more graduates come up looking for jobs.
Some factors are there which have contributed to decline in revenue for accounting
profession which are mostly the regulations which is established by the government such as
introduction of e-tax and increase in taxation rates. It is anticipated that the Australian
Accounting industry’s revenue will grow at an average rate of 5.5% over the five years through
2016-17 to reach A$20.7 billion by 2020. Therefore, it can be said that the future of accounting
profession looks bright and attractive for more graduate to pursue the profession.
1.3 Specific Areas of Employment
The field of accounting has wide range of opportunities and the same can vary from clerk
level which maintains the books of accounts of the business to managerial level which can take
important financing decisions. Some of the posts which are available in accounting service
industry are of accountants, bookkeepers, auditor, finance manager and financial advisor. In case
we consider the role of an accountant, the professions play a vital role in formulating annual
reports which display the financial performance of the business. The role of an accountant is
expected to further enhance in future and therefore more and more graduates are likely to take up
the course.
1.3.1 Role of Accountant in a Business
The accountants of a business perform the role of preparation and presentation of
financial information in the financial statements of the business (Mintz 2016). The accountants
need to have wide scale knowledge of the accountant standards and also performs the role of a
financial advisor. The maintenance of books of accounts is a vital job as on the basis of the same

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financial decisions as well as managerial decisions are taken by the management of a company.
Some of the major functions which is performed by an accountant are listed below:
 Preparation of the financial statements of a business.
 Appropriate interpretation of accounting standards and policies.
 Aids the management to take decisions in relation to financial performance of a business.
1.3.2 Essential Skills needed in Accountant
Any graduate who want to pursue the course of accounting professional needs to have
wide knowledge of accounting provisions, standards and practices. The individual needs to have
knowledge about the practices which are adopted in the process of maintaining books of
accounts. The accountants are required to have specialised knowledge of generally accepted
accounting principle so that the framework which is used for preparation of the annual reports
are consistent and universally applicable (Rahman 2013). The accountants are expected to
present the financial information of a business with accuracy as the investors depends on such
information for taking major investment decisions. The accountants are expected to have
integrity in their approach while preparing the financial statements of the business.
1.3.3 Remuneration and Other Benefits of Accountants
The accountants hold a vital position in any business as they take care of representation
of accounting information which is used for decision making process. The remuneration which is
provided to the accountants in Australia depends on the level of experience and skills of the
individual.

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Figure 4: (Chart employment level for Clerks and Bookkeepers in Australia)
Source: ()
The above figure represents the earning which can be generated by an individual while
pursuing the career of an accountant and the graph shows that the level of earnings depends on
the level of experience which is generated by the business (Bayerlein and Timpson 2017). An
entry-level Accountant with less than 5 years of experience can expect to earn an average total
compensation of AU$ 51,000. Average total compensation includes tips, bonus, and overtime
pay. An Accountant with mid-career experience which includes employees with 5 to 10 years of

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experience can expect to earn an average total compensation of AU$65,000. An experienced
employee can earn significantly more depending on the nature of the company with which it is
associated.
1.3.4 Required Qualifications and Educational Background for the position
The average qualification which is required to be maintained by the accounting
professionals is to have a basic knowledge of accounts. The knowledge possess by the
employees needs to maintain the accounting policies and practices which are applicable on
businesses. In addition to this, the accounting professional can also take on professional’s
degrees which is provided by the Chartered Accounting Institutions or other institutions which
provides such competency certificates. The Chartered Institute of Management Accountant
(CIMA) and the Association of Certified Accountants (ACCA) provides professional courses to
candidates in order to ensure that the professional services which is provided by such candidates
are of highest quality.
2.0 Selected Accounting and Service Firm
2.1 Introduction to the Company
The company which is selected for this part of the assessment considers Price WaterHouse
and Copper (PwC). The company is mainly engaged in providing accounting services and the
main operations of the business is associated with providing audit services, advisory services and
tax services to the client. PwC is a system firm which effectively settled their branches in more
than 157 nations and in 756 areas (PwC. 2019). The organization as of now utilized 223,000
experts everywhere throughout the world. The company has its operations across many
countries. The services which is provided by the company can be related with best quality and it

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is an inspiration to work in a company which is one of the big four businesses (Chan and Ryan
2013).
PwC is one of Australia's leading professional services firms, bringing the power of our
global network of firms to help Australian businesses. The company is known for the advisory
services which is provided by the business which is the main reason that the accounting
professional aims to end up with an employment contract with PwC. The company is regarded to
be the leading firm when comparison is made between the big four businesses which are
operating in Australia.
2.2 Company’s Culture and Working Environment
The culture of PwC is developed in such a way that the clients of the business get the best
quality of services and the employees of the business are satisfied with the working conditions
which are present in PwC. The policies which are set by PwC is set considering the employees
concern and also main goals which are to be followed by the business. In addition to this, the
business has provided all the facilities which would make the employee comfortable in the
market and also motivate them to outperform themselves.
The business of PwC offers better infrastructure, job security, better pay and other
incremental benefits to the employees of the organization so that the same can be retained and
the same can be considered as assets of the business. In addition to this, the company has an
efficient policy relating to recruiting the employees of the business and ensure that the employee
of the business are competent enough to provide the best quality of services to the clients.

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3.0 Investigation Interview
Interviewee profile
Interviewee name?
Sam Wilson
Company or organisation?
Deloitte (Previous company)
Position within the company?
Senior Associate
Number of years employed?
2 years
Contact details?
1. Give us a proper introduction about yourself? Tell us what you like and what are your
hobbies?
2. Why did you leave your previous company and what do you expect from our company?

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3. When was PwC established and what are the core activities which are carried out by the
company?
4. Do you think you can cope with the role which you have applied for ?
5. Give an expense where you demonstrated innovative approach and leadership in your
previous company?
6. Where do you see yourself in 5 years? What are your personal goals which you want to
achieve?
7. Do you have any questions for me?
Conclusion
The above discussion shows the employee market for accounting service industry and
how the same is the condition in Australia. The assessment considers the future perspective of
accounting industry in Australia. The role of an accountant is very important in the modern era
and with all the new businesses entering the industry and existing businesses growing, the
requirement of accounting professionals is likely to rise. The assessment also considers the
company of PwC as an ideal place for accounting professionals for a job as the company
provides the best quality facilities to the employees. The assessment concludes with a series of
questions which can be asked in an interview to an eligible candidate.

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Reference
Afpbb.com.au. (2019). The Australian Accounting Industry . [online] Available at:
http://www.afpbb.com.au/Resources/TheAustralianAccountingIndustry.aspx [Accessed 1 Feb.
2019].
Bayerlein, L. and Timpson, M., 2017. Do accredited undergraduate accounting programmes in
Australia meet the needs and expectations of the accounting profession?. Education+
Training, 59(3), pp.305-322.
Chan, H.T. and Ryan, S., 2013. Challenging stereotypes: International accounting students in
Australia. Journal of Modern Accounting and Auditing, 9(2), p.169.
De Lange, P., Jackling, B. and Basioudis, I.G., 2013. A framework of best practice of continuing
professional development for the accounting profession. Accounting Education, 22(5), pp.494-
497.
Docs.education.gov.au. (2019). [online] Available at:
https://docs.education.gov.au/system/files/doc/other/accountants-demand-and-supply-2014-
paper-2014.pdf [Accessed 3 Feb. 2019].
Mintz, S., 2016. Accounting for the public interest. Springer,.

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National Industry Insights Report. (2017). Accounting and Bookkeeping. [online] Available at:
https://nationalindustryinsights.aisc.net.au/industries/financial-services/accounting-and-
bookkeeping [Accessed 1 Feb. 2019].
PwC. (2019). About PwC Australia. [online] Available at: https://www.pwc.com.au/about-
us.html [Accessed 3 Feb. 2019].
Rahman, A.R., 2013. The Australian Accounting Standards Review Board (RLE Accounting):
The Establishment of its Participative Review Process. Routledge.
Tucker, B.P. and Schaltegger, S., 2016. Comparing the research-practice gap in management
accounting: A view from professional accounting bodies in Australia and Germany. Accounting,
Auditing & Accountability Journal, 29(3), pp.362-400.