Financial industry analysis

6ANALYSIS OF THE FINANCIAL INDUSTRY

Analysis of the Financial Industry

Analysis of the Financial Industry

The Industry

The industry I aspire to work in is the financial industry. The industry is perceived to be sophisticated, but Australia boasts a moderately well-positioned and strong economy located in the fastest growing region in the world. The industry has recently faced a number of unprecedented challenges attributed mainly to the global financial crisis. Generally, the industry is the fourth biggest sector in the economy of Australia and accounts for nearly 8% of gross domestic product. The role of the industry is to ensure effective flow of funds between people, companies and sectors. The industry can be divided into a number of categories: managed funds and superannuation, wholesale and corporate finance banking, financial markets and retail banking. The industry is amongst the leading employers in Australia with over 400,000 employees. Some of the key employers in the industry include investment banks and financial institutions. The diversity of the industry in addition to the complexity and size of its institutions symbolises unique different career paths that can be accessed by graduates (Graduate Careers Australia, 2016). Banks are the most important institutions in this industry since they hold most of the financial system assets. Most of the financial institutions in the financial industry are regulated by the Australian Prudential Regulation Authority (APRA), which was established in 1998 and largely funded by the institutions it oversees (Financial Stability Department, 2006).

is another body in this industry that represents close to 12,000 businesses and individuals. Besides that, Financial Services Council is an association that represents the whole financial services spectrum across Australia. CPA Australia is also another body with a membership of almost 144,000 that represents business, accounting, and financial professionals in over 127 countries worldwide. The body focuses mainly on advocacy, technical support, and education. The last notable association in this industry is the Australian Financial Markets Association (AFMA), whose objective is to promote professionalism, integrity and g efficiency in Australia’s financial industry (Australian Institute of Associations and Industry Bodies, 2013).Financial Planning AssociationThe industry has made an enormous contribution to the society since it supports scores of social projects at different levels: education, culture, sports, supporting disadvantaged groups, and creating employment to members of the society. Besides that, most companies in the industry involve in charitable activities that seek to improve the lives of people in the society. Besides that, the industry has played a crucial role in promoting the inclusion of indigenous communities through a negotiated and deliberative process. Besides that, the industry engages the indigenous communities with the goal of empowering them and improving their level of education through sponsorship. There are numerous associations or peak bodies in this industry; for instance, Association of Financial Advisers is an association that offers resources and information to people searching for details about the industry, which includes industry partners, consumers, current members, and so forth.

Professional Skills

The role I am aspiring towards within this industry is financial accounting, which involves summarising, recording as well as reporting numerous business transactions with the objective of providing an accurate representation of financial performance as well as position. Financial accounting main purpose is to prepare financial statements such as cash flow statements, income statement as well as balance sheet, which sum up the operating performance of the institution for certain period of time. Besides that, financial accounting is concerned with offering information, which could assist in assessing the firm’s current performance and financial history. Requirements for professionals within this industry include the ability to collate data into intelligible and standard formats. In this industry, qualified accountants may specialise in a number of areas such as auditing, insolvency, corporate finance, and taxation. Some of the requirements include; being able to apply the accounting skills to businesses and giving advice on certain projects. To become a qualified accountant, one must be examined and also be a member of recognised professional bodies such as CPA Australia. The accountant’s responsibilities include making sure that the accounting functions are conducted according to the required standards and ensure that the financial information communicated to the stakeholders is true.

In order to get a get a positive result for the ANZSCO code, the accountant must qualified and examined by CPA Australia or have Bachelor degree from a recognised Australian university and should meet the English proficiency requirement. Accountants are expected to comply with the Accounting Professional and Ethical Standards Board (APESB) Code of Ethics unless applicable regulations or laws prevent them from doing so. Top Five Accounting Skills. To be successful in this industry, the accountants must be analytical by reading, interpreting and comparing data and figures. Besides that, the accountant must communicate effectively with the clients, colleagues, and departments. To succeed in the financial industry, the account’s oral as well as written communication has to be strong. Besides that, the accountant must be conversant with different computer systems and programs such as accountinginformationsystem (AIS), QuickBooks and other finance-related software. Organisational skills are considered to be very crucial for accounting jobs; therefore, the accountant must be able to keep the financial documents in order. There are many skills that an accountant must possess such ability to prepare, analyse and examine financial statements, records as well as other reports. As an upcoming accountant, I have to be able to analyse the accuracy of the financial reports and ensure that they conform to the required standards. Other skills include, the ability to calculate taxes, analyse the financial trends, and to create as well as maintain budgets.

Personal Skills

My learning style is the physical style, whereby I use the sense of touch and my body to learn about things. By touch objects physically I can be able to learn about their functionality and benefits. Therefore, I normally use body language such as hand gestures so as to communicate. I normally prefer performing physical activities, instead of watching demonstrations or listening to the instructor. Some of my strengths include; team player, ability to maintain value and ethics, self-motivated, ability to multitask, and a problem solver. I also have weaknesses, such as inability to adapt to change easily, strong-willed and a debater.

References

Australian Institute of Associations and Industry Bodies. (2013). Finance Industry Bodies and Finance Assocations. Retrieved from Australian Institute of Associations and Industry Bodies: aiaib.com.au/industry-directory/finance/

Financial Stability Department. (2006, March). The Structure of the Australian Financial System. Retrieved from Reserve Bank of Australia: http://www.rba.gov.au/publications/fsr/2006/mar/struct-aus-fin-sys.html#fn1

Graduate Careers Australia. (2016). Financial Services. Retrieved from Graduate Careers Australia: http://www.graduatecareers.com.au/CareerPlanningandResources/careerprofiles/FinancialServices/index.htm