Banking & Finance Vocabulary Resources.

[philiphunter]

I have just passed the initial stages in the recruitment process for a trainee accountant position.

Although I have attained a high enough standard to be invited to interview I have concerns that my financial vocabulary is not as good as it should be.

Does anyone know of any resources that may help me to become more familiar with a vocabulary in banking and finance as my academic background lies mainly in I.T.

I am reading the Financial Times and have also started to read the Telegraph in the hope that the unfamiliarity of such words or jargon will be eradicated.

I would appreciate any advice or recommendations, also in relation to interview techniques and to any specific knowledge I should have about the field why being quizzed at interview.

p.s. The interview is held near to St.Paul's station in central London, so I am assuming the recruitment group may be recruiting for some large firms.

Thanks in Advance.

Philip

[bga]

I use this resource a fair bit: http://www.accountz.com/glossary.html
Though most of my work is working on IT systems that accounting is performed on, you still need to know how it works & the lingo.


The big4 usually do their own recruitment and interviewing for technician & grad positions, though that's not to say that they or the other larger firms aren't involved.

If you can nail the idea of the P&L account & the Balance sheet then that'll always go down well!

[NorthernBoy]

It sounds a bit as though you are conflating banking with accountancy. They are not the same thing.

Are you clear on the difference, and the reasons you are picking your route?

[philiphunter]

NorthernBoy said:

It sounds a bit as though you are conflating banking with accountancy. They are not the same thing.

Are you clear on the difference, and the reasons you are picking your route?

My choice of career is really down to what I believe I am capable of and of what will be of interest to me.

I am highly numerate and also interested in business and finance, and I am determined to follow a professional career.

You may have a point in regards to the recognising of detailed differences between the two careers, but I intend to be more specific about my understanding and motivations when I attend the interview.

I have an interview with 'HAT group of accountants' in central London and would appreciate any information in relation to the companies they recruit for or any past expereinces.

[bga]

philiphunter said:

I have an interview with 'HAT group of accountants' in central London and would appreciate any information in relation to the companies they recruit for or any past expereinces.

looks like this is their member list:

http://www.hatgroup.co.uk/firms.php

You can see where they stack up in the grand scheme of things here: http://www.accountancyage.com/resource/top50

IMO if you want to get your accountancy quals & then move to other stuff, the larger firms will allow you to do that more quickly. 2 reasons for this: 1. they tend to offer a wider range of services & it's usually easy to move once you are in a company. 2. The fact is that a prestigious name on a CV will open more doors, especially in industry.

One of my mates has just got a job working in Corporate Finance (mainly M&A stuff). It's taken him 9 years. He started at a small firm of accountants and made a few moves to get where he is today. I have no doubt whatsoever that had he joined one of the big4 or someone like Tenon, Mazars, BDO etc, then he would have been able to get there in 5 or 6 years. Always worth considering if you see an Accountancy qualification as purely a means to an end.


p.s. good luck!

Edited by bga on Sunday 30th September 10:54

[eyebeebe]

philiphunter said:

NorthernBoy said:

It sounds a bit as though you are conflating banking with accountancy. They are not the same thing.

Are you clear on the difference, and the reasons you are picking your route?

My choice of career is really down to what I believe I am capable of and of what will be of interest to me.

I am highly numerate and also interested in business and finance, and I am determined to follow a professional career.

You may have a point in regards to the recognising of detailed differences between the two careers, but I intend to be more specific about my understanding and motivations when I attend the interview.

I have an interview with 'HAT group of accountants' in central London and would appreciate any information in relation to the companies they recruit for or any past expereinces.

There are massive differences between accountancy and finance. Yes there is an overlap where banks need auditing and in the corporate finance arena, but IME bankers know little about accounting and vice versa.

IMHO opinion you would be better knowing your understanding and motivations before the interview and deciding whether you want to work in accountancy or banking. The interviewer won't appreciate being used as a sounding board for career advice and if they are any good they will smell bullshit/lack of commitment a mile away.

As for your original question. Wikipedia has straightforward explanations of various financial instruments. I'm sure it has the same for accounting terms.

As a fresh trainee, who hasn't studied finance/accounting at uni, I think an appreciation of the profit and loss account, the balance sheet and the cash flow statement would be fine. If you think of the finances of a firm as a video the balance sheet shows a still frame at a particular point in time and the profit and loss account tells the story of how you got from one snapshot to the next. The cash flow statement shows how cash has moved from one snapshot to the next (cash can be used/gained for both p&l and b/s items). Cash is important, as without it you can't pay your suppliers, employees, creditors or shareholders!

[philiphunter]

bga said:

philiphunter said:

I have an interview with 'HAT group of accountants' in central London and would appreciate any information in relation to the companies they recruit for or any past expereinces.

looks like this is their member list:

http://www.hatgroup.co.uk/firms.php

You can see where they stack up in the grand scheme of things here: http://www.accountancyage.com/resource/top50

IMO if you want to get your accountancy quals & then move to other stuff, the larger firms will allow you to do that more quickly. 2 reasons for this: 1. they tend to offer a wider range of services & it's usually easy to move once you are in a company. 2. The fact is that a prestigious name on a CV will open more doors, especially in industry.

Edited by bga on Sunday 30th September 10:54

I can find at least 3 firms represented by HAT in the top 30 and one placed at number 13.

To be honest I have carried out a great deal of research into the areas of banking and accounting, but as you may know it is always helpful to communicate with those 'in the know'.

I have considered banking and really like the idea of trading but the more I have looked into it the less likely I feel I have a chance; what with the high calibre of applicants and the commitments I have to my family (it's not really feasible for me to work 16 hours a day, 7 days a week).

I assume that accountancy will have similar recruitment issues when dealing with the top firms. Is this true?

Accounting is a career that appeals to me, and subject to change (only experience and time will tell) I would like to be in business with my own high street accountancy firm in the distant future.

I have spoken with various acccountants in the hope of a better understanding of the role, but responses vary a greal deal and I can only assume I will fully understand the role if and when I am employed as a trainee.

Thanks.

Edited by philiphunter on Sunday 30th September 11:21

Edited by philiphunter on Sunday 30th September 11:21

[bga]

philiphunter said:

I can find at least 3 firms represented by HAT in the top 30 and one placed at number 13.

Good stuff. I do a fair amount of audit work for a few in the top 20 (not number 13 though) and they have a lot of good people (and their fair share of muppets).

philiphunter said:

I assume that accountancy will have similar recruitment issues when dealing with the top firms. Is this true?

They have a lot of applicants, but if you meet (or are close to) their minimum requirements then you will be in contention. If you have experience of working in business already that that will really put you in a good position compared to a load of people fresh from the Uni + gap year bandwagon. Being able to articulate how that experience would give you the edge is important.
A key thing is to get on the phone & speak to those responsible for recruitment. Get your name known to them & make sure they know what you do.

philiphunter said:

Accounting is a career that appeals to me, and subject to change (only experience and time will tell) I would like to be in business with my own high street accountancy firm in the distant future.

If that's what you want then best of luck! Maybe a smaller firm where you don't have a choice but to get involved would be better. No point in wasting 3 years doing tick & bash audit work when you could be doing your quals & getting hands on experience that is more relevant to your long term goal.

philiphunter said:

I have spoken with various acccountants in the hope of a better understanding of the role, but responses vary a greal deal and I can only assume I will fully understand the role if and when I am employed as a trainee.

You could be doing so many things that it would be hard to say what you will be starting with. Suffice to say that you really need to get a good understanding of the basics. Me & my wife knew plenty of people who got their contracts terminated for failing their exams twice (though neither of us are accountants, we have worked for 3 of the big4 firms).

[philiphunter]

eyebeebe said:

IMHO opinion you would be better knowing your understanding and motivations before the interview and deciding whether you want to work in accountancy or banking. The interviewer won't appreciate being used as a sounding board for career advice and if they are any good they will smell bullshit/lack of commitment a mile away.

As a fresh trainee, who hasn't studied finance/accounting at uni, I think an appreciation of the profit and loss account, the balance sheet and the cash flow statement would be fine. If you think of the finances of a firm as a video the balance sheet shows a still frame at a particular point in time and the profit and loss account tells the story of how you got from one snapshot to the next. The cash flow statement shows how cash has moved from one snapshot to the next (cash can be used/gained for both p&l and b/s items). Cash is important, as without it you can't pay your suppliers, employees, creditors or shareholders!

I am currently preparing for interview and intend to spend the next couple of weeks improving my skills and understanding required for this type of work.

I do have various reasons for wanting to work in accountancy and I will be prepared to answer questions as to my motivations and understanding come the time. For now, I am focusing on improving the skills and understanding required to get me in the door. I am most confident that once accepted as a trainee I will be successful, and I relish the chance to work while studying; giving me the responsibility and motivation to succeed.

I am certainly committed to achieve my goals and I have never been one for the 'bullshit' route. I do hope that all the preparation I put in before the initial interview will pay off, and I remain positive of the outcome, whether resulting in a job offer or a valuable experience.

Your comments are appreciated!