Notes

1. A formal accounting qualification
In some industries, sparkling talent combined with real-world experience is enough to land your dream job.

But a career in finance – a sector ruled by rigorous processes and standards as well as commercial best practices – a glowing CV simply isn’t enough.

Successful candidates will have completed recognised industry qualifications to demonstrate they have the necessary educational training to back-up any work experience they have. Highlighting qualifications such as a CA or CPA are important.

2. Interpersonal skills
There once was a time when finance professionals were bound to cubicles, but that era is long gone.

These days, any perception that finance skills involves simply crunching numbers has been replaced by the reality that positions require workers to deal with clients every day.

For accounting and finance professionals, the ability to build successful relationships with customers is critical if you want to excel. When looking at two equally qualified hires, interpersonal skills are often the point of difference.

3. Ability to communicate
For aspiring accounting and finance workers, strong written and oral communication skills are important, but it’s just as imperative to be able to explain financial jargon in simple terms.

Many companies choose candidates who can make complex industry language legible to clients who have limited knowledge, as opposed to potential hires who simply regurgitate what they’ve learned.

Related: What kind of jobs are in-demand in finance?

4. Financial reporting
There’s no denying that financial reporting skills is a requisite requirement, particular with in growing areas, such as superforecasting.

However finding candidates with strong financial reporting skills is proving a challenge in this sector.

Financial candidates looking for a competitive edge would be wise to ensure they can demonstrate a high aptitude for financial reporting at their next job interview.

5. Analytical ability
Companies are looking to hire employees who can implement lateral thinking, the ability to analyse scenarios, and draw suitable conclusions.

Candidates looking for a successful career in finance must demonstrate their analysis abilities with real-world examples and KPI driven results.

6. Problem-solving skills
These days, it isn’t enough to have watertight knowledge of systems and processes – it’s also essential to be able to tackle complex problems as they arise.

Whether it’s addressing the financial implications of a complicated business structure or coming up with a personalised solution for a client’s tax dilemma, a record of solving problems will see your career grow in leaps and bounds.

7. Knowledge of digital tools
The increased focus on digitisation and automation has encouraged more hiring managers to look toward financial professionals with the right IT skills to leverage new financial systems.

Candidates who can demonstrate knowledge and proficiency in predictive analytics, accounts payable automation, SAP accounting software or Oracle will find themselves in-demand.

8. Management experience
Although it’s not essential, management experience is often highly desirable for employers looking to hire a financial professional for a new role.

If you’ve proven your ability to manage teams during your career, you’re bound to excel in a leadership position in the future.

9. Commercial acumen
It’s important for financial professionals to understand the relationship between a company’s fiscal behaviour and marketplace demands.

Candidates that can exercise commercial acumen as well as an interest in the trends shaping the industry are well-placed to get ahead.

Related: What jobs in finance pay the most?

10. Capacity for innovation
Finance and accounting may be associated with routines and systems, but that doesn’t mean that innovation doesn’t have its place.

Whether you’ve invented a data-collection method that streamlines productivity or a recording process that drives accuracy, candidates who are innovative are likely to stand out.


Unit Vocabulary
Exemptions - Amount that taxpayers can claim for themselves, their spouses, and eligible dependents.
FICA (Federal Insurance Contribution Act) tax - A United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.
Filing Taxes - To complete the tax return form and turn it in to the tax authorities
Income Taxes - Taxes that you pay based on your salary, hourly wage, tips, or interest.
IRS (Internal Revenue Service) - A federal bureau that is in charge of collecting income taxes.
Medicare - A federal program that provides benefits for the disabled and children of deceased workers.
Payroll taxes - Taxes that are withheld from your paycheck, like state income tax, federal income tax, and FICA.
Property Taxes - An annual tax that you pay if you own real estate or recreational property. (Tax on a house, boat, or other property.)
Social Security - A federal program that provides benefits for retirees.
Tax Liability - The total amount of taxes that you are responsible for.
Tax Revenue - Government income that they get from taxes.
Taxes - A contribution of money to state or federal revenue that is used for public goods and services.
IRS Form 1040 - one of the official documents used to file your annual income tax return.
W–2 Form - The form you get from your employer in January that breaks down how much you made, how much federal income tax came out, how much state income tax came out, and how much you paid in FICA taxes.
W–4 Form - The form you fill out so your employer knows how much to withhold from your paycheck.
Withholding - Money, for example, that employers withhold from employees’ paychecks. This money is deposited for the government. (It will be credited against the employees’ tax liability when they file their returns.) Employers withhold money for federal income taxes, Social Security taxes and state and local income taxes in some states and localities.


Paying taxes is one of the ways U.S. citizens participate in our democracy. Taxation is a way to contribute to funding services that help the whole country, or state, or community. For example, you drive on roads that are paid for by taxes. Public schools exist because everyone contributes part of their taxes to their state education system. You also contribute to yourself out of your income by having funds withdrawn for Social Security Insurance and Medicare. These are services that then get paid back to you after you retire.

To make the taxation process easier, there are many companies that offer tax products and related payday services such as instant tax refunds and payday lending. For a fee, a company offers to provide your tax refund instantly, allowing you to spend the refund sooner. The same is true of payday lending. For a fee, a company will give you the amount of your paycheck sooner, allowing you to spend the money immediately rather than waiting for payday. These services, however, are not free.




Unit Vocabulary
Budget - A financial document used to project future income and expenses.
Debt - Something, typically money, that is due or owed.
Deficit - An excess of expenditure or liabilities over income.
Income - A monetary payment for goods or services, or from other sources, as rent or investments.
Spending - Paying money to buy or hire goods or services.
Tracking - In a financial sense, this means keeping a record of your income and spending habits.
Fixed Expenses - Expenses that stay the same month to month, like a car payment.
Variable Expenses - Expenses that change month to month, like paying gas for your car.
Budget Deficit - The amount by which something, especially a sum of money, is too small. Spending more money than income.



Value of Employee Benefits


It is important to understand that your total compensation is actually much more than just your salary. The following benefits are the most common in the workplace environment:


Paid time off: This includes vacation days, sick leave, personal days, and holidays. These are the days where you get paid as if you were actually at work being productive. The actual value of these days is directly proportional to your hourly wages.

Government benefits: These won’t kick in until your retirement, but Social Security and Medicare will come in handy when you need them in the future.

Insurance: health insurance, depending on where you work, can be fantastic or very limited. This category also includes disability coverage, dental care, vision, and sometimes life insurance.

Retirement: Some employers match your contributions to your retirement plan, so it is always a good idea to max these contributions if possible. These can grow over time and provide great financial support for when you retire.

Other benefits: these may include parking, commuter assistance with free bus passes, tuition reimbursement, or even gym memberships.



Here are the steps to creating a balanced budget:



1. Figure out your Net Income for the month (include paycheck amounts that are fixed and other fixed income)




2. Make a list of your fixed expenses (expenses that stay the same every month). Examples might be:

Monthly Saving Amount

Rent

Car Payment

Credit Card Payments

Student Loan Payments



3. Make a list of your variable expenses (expenses you have but that may be slightly different every month). Examples might be:



Groceries

Eating Out

Restaurant Meals

Gifts/Charity

4. Determine if you have enough income to cover both types of expenses. If not, you will need to either adjust your expenditures or find a better income.




The ultimate purpose of a budget is to help you plan and be prepared for unexpected expenses (your car might break down or you might need medical care). Planning and preparation is the best way to secure your personal finances.






Things to consider when creating a balanced budget:



Your financial future is a topic that will have lasting effects on your quality of life and those of your family. Some things you may want to consider when it comes to your financial choices:

College and college debt

Children

Pets

Car ownership

Career choice

Geographical living expense



Though more difficult to identify and plan for, it’s also important to consider the impact that emerging world events could have on your budget. The world is indeed a small place and getting smaller as technology changes rapidly. Changes in other countries in the world can have a big impact on the jobs available in your local area or the cost and availability of goods and services included in your budget.



Financial Responsibility for Dependents



If you are living single with no dependents then it is more likely you will have less financial stress when it comes to living expenses such as a lower grocery bill and rent/ mortgage. If you have dependents, your cost of living will increase as more space and food are needed for basic survival. It’s important to understand how your choices will affect how you will pay for your lifestyle.

For example: If you accrue debt early on in your life, this may affect your ability to qualify for a mortgage and auto loan.





The Definition of Wealth

Wealth is more than how much money you make and can be defined by your happiness. Not everyone needs a mansion to feel successful and happy. Wealth can be defined also by how you spend your days and the passion you feel living your best life. Your goals and priorities will set the tone for your own definition of wealth.





Short Notice Contingency Plans

Life will always throw you a curveball so it’s important to have savings or a way to pay for those unexpected expenses like a car repair or missing cell phone. It’s important to have a plan to stay afloat and here are some things you should consider:

Always have enough money to be able to pay 3 months of your rent

Have a savings account where you put a portion of your check into every pay period

Find ways to save money such as learning to cook instead of buying out all the time

Try to keep your gas tank ¾ to completely full in case of future issues

Remember that some companies will provide payment options if you fall behind on bills