At my company, accounting has AR, AP, and General Ledger. I know what AR and AP do. I don’t understand what the general ledger team does when it comes to corporate accounting. Can someone explain?
They aggregate ledger data into forming the Balance Sheet and Income Statement
^ this. They do month end, Q end, and year end procedures for the financial statements. Get crazy demands from the auditors, both independent and internal. I’d rank them higher on the food chain than AR and AP for sure.
The larger the company, the more likely a GL accountant will specialize in an area of the financials, ie: fixed assets, intangibles, cash and equivilents, etc.
^ Mmmmhmmm… Though most places I know call it “Financial Reporting” or “Financial Accounting.” Definitely much higher than AP/AR. Most financial reporting folks will be designated accountants likely with Big4 experience, its a six figures gig (other than maybe some junior in training type). AP/AR is like high school educated $30/hr type work unless you’re the boss. EDIT: Robert Half 2015 has a Financial Reporting Accountant with 3+ years of experience (so someone with CPA) at $92.5 to $111k base. A Manager would be around $130k.
Hmmm, is that a viable transition then? For me to go fro financial/business analyst to a senior financial reporting professional in 3 years (after I have a CFA, but no MBA and no CPA)?
^ Probably not something that will be easy. Obviously if you impress the boss and what not, perhaps that dog will hunt. Its a role that is extremely accounting focused, as in theory and all. You need to be current on all developments in accounting rules as you’ll be called on to provide advice on how transactions will be reported. In other words, its kind of a CPA or bust role. MBA isn’t really valued there, nor would CFA be on its own. What kind of financial/business analysis are you doing now? FP&A pays as good if not better, the work is way more interesting and you build better connections with the execs by directly advising them on strategy.
I’m in a role that’s 50% FP and A, 50% business analysis. I help out with budgeting, reporting financial results to superiors, M and A (eventually), reviewing the client invoices that come out of AR, and looking over KPIs to evaluate our operations.
I’m not sure what my end-game is TBH so I’m looking for ideas now so I don’t look back and realize I wasted all this time in dead-end. The thing I keep seeing is how people place high value on a CPA and public accounting experience. It’s probably too late in teh game for that, but maybe I can get a waterered down substitute such as asking for cross training in the accounting department or taking accounting classes in an MBA setting?
If you wanted to go for it,you should have opted for CPA for quick returns and growth. It is never too late to take remedial actions to ensure you don’t end up in dead end job. In any case FP & A role has better options in the long run either way.
FP&A is really your best shot from where you’re at. No remedial action, cross training or MBA courses will give you what CPA does in accounting. Quite frankly you won’t be a senior level accountant (say Director or higher) in Canada without CPA. It just doesn’t happen. So financial reporting is probably a dead end for you in the long run unless you go get that certification. Go look on LinkedIn at the resumes of controllers and such in Canada. All are CPA (CAs). You’ll see way more diversity in background in FP&A/Strategy.