Accounting students ‘optimistic’ about career, research reveals
Most accounting students believe the profession has a promising future but enthusiasm can wane as they enter the workforce, according to new research.
A new report by Massey University and the University of Technology Sydney has found that while 83 per cent of accounting and auditing students believe there are good job prospects in accounting, enthusiasm diminishes as graduates enter the workforce.
The report, Talent in the Accounting and Audit Profession: How to attract and retain the next generation of graduates into accounting and auditing, was based on surveys from more than 600 accounting and auditing students.
The report’s authors, including senior lecturers and professors in accountancy from the two universities, interviewed current audit and accounting students to determine how optimistic they are about their career prospects and the future of the profession they look set to enter.
The research found that 80 per cent of domestic students believe there is high renumeration and earnings potential in accounting and that it can provide highly transferable skills across different businesses and countries.
A large majority or 83 per cent also believe there are good job prospects in accounting.
Around two-thirds of domestic students said the accounting profession has a promising future, while 61 per cent said the accounting profession has a high status.
However, the study found that many auditing students become "less positive and somewhat disillusioned about continuing their careers" once they actually enter and experience working life.
"Our observation is that the major perceived contributor to that disillusionment is due to the perceived unfavourable working conditions and corresponding remuneration of graduates," the research paper said.
"The graduates also don’t seem to be inclined to postpone work‐life balance to achieve long‐term career goals."
The study also found that many of these young professionals don't anticipate a long-term future in auditing.
However, the research did find that they were positive about remaining in the accounting profession more broadly in the long-term.
The report made several key recommendations for university educators, employers and the professional bodies to help attract the next generation of top talent.
The report recommends the professional bodies do more to share the real-world experiences of auditing and accounting professionals with students, as well as the wider importance of the profession in society beyond purely its technical aspects.
Similarly, universities are recommended to ensure that accounting subjects are taught by enthusiastic and passionate educators, and that career development information and opportunities are widely available, including exposure to the professional bodies.
Given the concerns raised by young professionals in relation to long working hours and poor prospects to improve remuneration, the report also recommended that employers adjust graduates’ remuneration to align it with other commercial roles or salaries in other business divisions within public firms.
CPA Australia president and chair Dale Pinto said it was heartening to witness the optimism of future auditors and accountants reflected in the survey.
"They are confident in their career prospects, earnings potential, and the highly transferable skills they are acquiring, which can open doors in various sectors and countries," said Pinto.
“Enthusiasm wanes once graduates spend several years working in the profession, and while this can be partly attributed to the reality of life in the workforce, we must also be realistic about the challenges and working conditions that contribute to this."
Pinto acknowledged that audit and accounting professionals face ever-increasing demands and a constantly evolving regulatory landscape.
"These challenges are a core focus of the professional bodies," he said.
Chartered Accountants ANZ (CA ANZ) chief executive Ainslie van Onselen said CA ANZ remains focused on solving for the decreasing pipeline of talent into our profession, which plays a vital role in supporting the health and vibrancy of our economy.
“Accounting degree university enrolments in Australia have halved since 2018, which is a significant concern for the profession’s sustainability, particularly given the considerable ongoing demand for talent, and it’s why we’re increasing efforts to make the profession a go-to choice," said van Onselen.
Van Onselen said that more needs to be done to ensure the reality of work life meets the expectation of the next generation of talent and that the profession is doing everything it can to ensure that workplaces are as inclusive, respectful and fair as possible.
“Employers need to be more focused than ever on providing flexible working arrangements, including remote options, four-day weeks and other inventive solutions, enabled by the profession’s high use of technology," she said.
“Next generation talent is looking for financial stability and a career aligned with their personal values.
"The accounting and audit professions offer unparalleled opportunities to make a meaningful impact on society, whether through advancing sustainable practices or upholding financial integrity.”
