Headline, July22, 2013

'''MASTERS OF THE UNIVERSE : 

THE CHARTERED ACCOUNTANT​S'''

In the late Eighties and early Nineties,  -it would be fair to say- that it was the Bond Traders who were the Masters of the Universe; these  -mostly men-  bought and sold the debts of large companies. When they spun off, in their place sprouted the venture Capitalists, financiers who raised the money to power the late Nineties high-tech boom.

And then, somewhat more recently, it was the hedge fund managers who took over the mantle of Masters of the Universe, till the world began its slide into a financial meltdown. Stepping into those Lobb shoes, the accountants might seem awkward as the new heirs to the crown, accustomed as these newcomers are, to washable suits and polyester shirts.

But these new generation of accountants are anything but fusty, claimed Alex Law, an assistant manager at accounting firm Deloitte. ''We're not old men in grey suits, we're completely different to what people might expect.''

So, in the new culture, it is probably the time to Turn-up for the Book-Keepers who are now the new corporate power brokers. 

The accountants now have the flexibility to call the shots on how to work and where to live. Job flexibility maybe the rage, but let's be honest, the money is a big issue. Newly qualified accountants can make up to £65,000 a year, and that's set to really take off with the demand currently outstripping supply. Watch them command glamorous lifestyles and rich rewards.

It was the accounting scandals in the early years of the millennium that prompted firms to beef up their staffing levels. Enron  -a massive energy trading company-  went spectacularly bust in late 2001 with its accountant, Arthur Andersen, being accused of shielding debts from the public eye.

Less than a year later, America's second biggest long-distance telephone company, WorldCom, collapsed in the largest bankruptcy in American history. The bookkeeper in that case? Once again, Arthur Andersen was accused of complicity, though the company strongly denied this. Andersen itself folded in September 2002. For the record, Andersen also audited the accounts of John DeLoren's Belfast based car company which failed in the early Eighties, losing more than £80m in taxpayer's money.

That earned Andersen a large financial penalty and a ban on the work for the British Government, which lasted until 1997, when the new Labour Government lifted the ban and settled the legal case against the firm for £21m. 

Those black marks on the accounting profession ''have demonstrated the value of having a qualified accountant at the centre of a business,'' said Eric Anstee, one very leading expert. ''Enron was run by MBAs, very few of whom had run into integrity and ethics courses in their training.'' 

Other experts credit Enron, and the follow-up scandals, with raising the profile of the profession.

No publicity is bad publicity, as Chris Quick, editor of Accountancy magazine is the first to admit: ''Enron and WorldCom have given accountancy a bit of a glamour.'' 

Given the increased awareness  of the importance of accountants, salaries are skyrocketing. In England, Finance Directors at the 100 biggest companies   -the bulk of whom are qualified accountants   -earned an average of £846,000 some years ago, with nearly a quarter breaking the £1 million barrier. And when the Chief Executive departs, it's the Finance Director who moves into the corner office., opening the door to even greater earnings.

Three-quarters of the boards Britain's top 350 companies contain at least one accountant certified by the ICAEW. They were the Masters of the Universe all through the last many years. But unlike their predecessors, accountants are doing much more than gathering golden crumbs. They have emerged as the key decision-makers in most of the worlds top rated companies. And these Masters are going to reign for many many years ahead. 

With respectful dedication to all the great Accounting Firms of the world, and all Chartered Accountants and  accounting Students.

See you all on the World Students Society Computers-Internet-Wireless : A Colourful Role Model For Accountants.

Good Night & God Bless!

SAM Daily Times - the Voice of the Voiceless