Sample HR Management Essay Paper on Job Analysis

Job Analysis

Part A

            Financial accountants are important in organizations because they serve as financial gatekeepers. Regardless of the size or type of business, it requires a financial accountant to help in the management of all the financial resources of the firm (Loughran, 2011). For proper operations, every firm must have a workable and active finance department with a professional financial accountant that can apply their knowledge properly in the management of finances of the organization. The purpose of the finance accountant is to analyze and keep track of all the financial transactions of a firm(Hussey, 2010). Without a proper accounting system, businesses are likely to fail in their operations since they are likely to overspend or misuse their financial resources. Some of the key purposes of the financial accounting position include:

Recording of Financial information

 As a custodian of the financial or economic information of the business, financial accounting is required to make records of all the financial transactions that a firm undertakes in a given period. Essentially, the data is recorded in the financial statements of the firm. Economic information is recorded in various books of accounts depending on the types of transaction involved (Goyal, 2012). Some of the most common books of accounts include the ledger wherein various information is recorded. Types of ledgers include the accounts receivables, payables, among others. The recording of this information makes it easy for other accountants, auditors, the management, and other users of monetary information to understand and retrieve information that relates to the financial position of the firm.

            Financial accounting is also responsible for classifying fiscal information. As stated, there are various transactions that businesses may undertake. Some of these transactions include credit and cash transactions (Loughran, 2011). Thus the unit in question is supposed to classify the types of transaction that a business undertakes, classify, and record them in the right books of accounts. For example, goods bought on credit should be classified and recorded in the accounts payables ledgers. It is the responsibility of the financial accountant to classify such information. Another purpose of this professional is to summarize financial data. Once the information has been classified and recorded in the right ledgers, the financial accountant typically summarizes it to come up with the significant financial statements such as the income statement, trial balance, and the statement of financial position, which are normally prepared at the end of a fiscal year (Hussey, 2010). Financial accountants are also responsible for interpreting monetary information on behalf of the organizations for which they work. Indeed, they prepare financial statements in a professional manner that may not be understood by non- accounting or finance experts (Goyal, 2012). Therefore, a financial accountant is responsible for the interpretation of the information contained in such statements to the users of the financial information, for them to comprehend it comprehensively.

            The last purpose of the financial accounting is to communicate financial information to the users of the statements (Hussey, 2010). Most firms are required by the law to reveal their financial position to the public such that users of such information can understand the financial position of the firm. This enables them to understand the risks that these organization exposes them to, and determine the best response. Professional financial accountants use various techniques to communicate this information. For instance, they can prepare ratios, cash flow statements, graphs or fund flow statements to make the intended users of the data to get the required information. 

Activities and Responsibilities of a Financial Accountant

            Financial accountants keep track of at all the finances received and spent by an organization. Additionally, their main responsibilities are to record cash transactions in the books of accounts. They also report the financial position of the firm to its relevant stakeholders for purposes of planning (Loughran, 2011). Moreover, they take part in making management decisions through advising the management of the firm on the correct position of the firm. Financial accounting is responsible for the management of the operating activities of a corporation. This touches on the primary activities of the firm. It is vital that the firm manages the finances of its primary activities well (Goyal, 2012). For instance, if the primary business of the firm is grocery, the financial accounting will monitor all the economic activities relating to the grocery.

            The second function of financial accounting is to monitor the financial activities undertaken by the firm. This includes the management of all the financial needs of the organization such as raising any additional money that is needed for the business. For instance, if a firm wants to raise additional capital, the financial accountant would suggest ways that the firm can raise this money by considering its financial position. It can then resort to take loans or issue shares at certain prices. Investment activities are also part of the roles of the commercial accounting department. This includes the investment needs of the firm whereby the company may need to invest for future safety needs (Goyal, 2012). There is need to ensure that a firm multiplies its wealth by taking up investments. Financial accounting is responsible for analyzing the value of an investment and predicting the expected returns from it and advice the management accordingly on the venture.

Knowledge and Skills Required In the Position

            The financial accountant position requires various skills, and they include knowledge in accounting the accepted accounting principles (GAAP). These are the guiding principles in the practice of the profession. The desired individual should have taken a course that equipped him or her with qualifications in the field (Loughran, 2011). This includes both degree and diploma studies and other professional qualifications such as passes in ACCA studies. It also requires skills such as honesty, hard work, personal integrity, and ability to meet tight deadlines.

            The working environment of a financial accountant is essential since they are part of the administration of firms. They enjoy the management working environment. However, there is periodic pressure related with the job, especially when the organization engages in multiple and huge transactions and both debtors and creditors need to know their financial obligations with the firm.

Part B: Job Description of a Financial Accountant

Purpose of the Job

Take record of all financial transactions conducted by the firm and assist in the preparation of the periodic financial transactions of the firm.

Activities and Responsibilities

•    To record all financial transitions that the firm undertakes

•    To ensure that the proper accounting procedures are followed

•    Prepare the periodic financial reports and statements

•    Show the profitability of the firm over a certain period using income statements

•    Show the financial position of the firm using the periodic statements of financial position

•    Advice the management on various financial accounting matters such as taking up investments and loans to raise capital.

Requirements for Qualification into the Position

•    Bachelor’s degree in financial accounting, or the equivalent of it from a reputable university

•    Diploma in financial accounting with any other accounting professional qualifications

•    Valid practicing license in the field of accounting

Other Competency Skills Required

•    Competence in financial matters backed up with at least three years of experience working in a busy financial accounting department

•    Ability to work with the current accounting technological systems.

•    Strong integrity

•    Is keen and has an eye for detail

•    Ability to work under pressure to meet tight deadlines

•    Good communication and interpersonal skills to be able to work with a team of other professionals

•    Desirable analytical and presentation skills

•    Honest and openness.

Part C: Labor Market Analysis

            Even though the labor market is currently failing due to poor economic conditions and the increase in the rate of growth of the labor force, the accounting profession remains a lucrative market. The unemployment rate is currently on the increase globally with the United States reporting approximately a 24% rate of unemployment as of 2016 (Pietschmann, Kapsos, Bourmpoula, Sajaia and Lokshin, 2016). Economically, the accounting profession is gaining since as firms rise, the demand for accountants keeps rising. Currently, most financial accountants are employed in the technology, property, and construction sectors since they are some of the most prominent upcoming sectors in the economy. Financial accountants are paid differently in various regions. Their pay also depends on the sectors in which they operate (Pietschmann, Kapsos, Bourmpoula, Sajaia & Lokshin, 2016). In developed regions, such as the UK and the US, experienced accountants are paid up to $50,000 a year, on average, while in less developed economies these rates drop to about $10,000. 

            Some employers have changed their legal terms of engagement of professionals and have resorted to taking in employees on a contractual basis (Pietschmann, Kapsos, Bourmpoula, Sajaia & Lokshin, 2016). Hence, financial accountants are mostly employed as short-term or long-term contract employees with a few on a permanent basis. The importance of this career in the job sector and its handsome rewards has resulted in an influx of individuals who pursue it. (International Labour Office, 2006). Unfortunately, the labor market cannot absorb all these individuals, and thus some of them are rendered jobless despite being qualified to handle the job. 

Recommendation on Replacement

            The market for professional financial accounting is changing rapidly due to the current trends being experienced in the industry. While professionals being produced yearly, the labor market keeps shrinking and thus rendering a lot of professionals jobless. It has also triggered some employers to cut down on the remuneration for accountants since there is a high demand for jobs in this sector (Hussey, 2010). It is recommended that for firms to continue attracting professionals in the field, they need to remunerate their employees well. They should also revise their terms of engagement to make the position more attractive and avoid the high rates of employee turnover. Undoubtedly, the profession is changing drastically due to technology (Aswathappa 2013). Technological systems are invading this market as firms seek to enhance their performances in the accounting department (International Labour Office, 2006). Therefore, it is necessary for professional accountants to know the current trends and systems in the sector. The legal requirements that exist in the sector at the moment mostly aim at changing its terms of engagement.

References

Aswathappa, K., (2013). Human resource management: Text and cases. Tata McGraw-Hill Education.

Goyal, R. (2012). Financial accounting. Prentice-Hall of India.

Hussey, R., (2010). Fundamentals of international financial accounting and reporting. Singapore;London: World Scientific.

International Labour Office, (2006). Key indicators of the labor market. Geneva: International Labour Office.

Loughran, M., (2011). Financial accounting for dummies. Hoboken, N.J.: John Wiley & Sons.

Pietschmann, I., Kapsos, S., Bourmpoula, E., Sajaia, Z., &Lokshin, M. (2016). Key labor market indicators: Analysis with household survey data.