cima:
Posted by Asif on March 30, 2009 at 10:29 pm
I have long been a critic of British Education. Of course, long is a relative term and here long refers to the last 15 months. My basic education is British. My University education is American. My professional experience is split between the United States, Dubai and the United Kingdom.
I’ve said it from day 1: American education is by far the best. Why? Because the US education system does not focus on students learning concepts or memorizing answers to questions. It is a system that does not focus on and is not centred around academic knowledge alone. American education gives you the tools you need to succeed in life, in business, and on the job. In this context, I am referring to American education at the University Level, better known as the Undergradute and Graduate programs at universities across the United States.
British University education, well, clearly sucks. With Metro highlighting the launch of a Masters Degree in Facebook today, London has reached a new high in the quality of pathetic intellect and wasteful education; education that represents nothing but a mere high-class insult to the likes of Charles Dickens, William Shakespeare, Oscar Wilde and others from the Golden Age of British education. That said, I understand why the general level of British University education is so low.
The entire system is politicized and is a victim of bureaucracy. Having a University degree means absolutely nothing when you go and look for a job; academic fraud and cheating is at an all time high, and professors boast about their out-dated, memory ridden testing styles that are supposed to prep their students for the 21st century. Specifically speaking, when it comes to business education, more specifically, accounting education, British degrees are about as useful as a second rate high school diploma from China.
How do I know, you ask? Well, I must say with some sadness, I’m an accountant. I’m an accountant educated and experienced in the US, who now has the pleasure of coming to the UK and having to go through the bureaucratic system of so-called professional education, which is, from a learning standpoint, garbage. British degrees in accounting are useless because whether you have one or not, you can sit through a 3 year course with ACCA, CIMA or ICAEW and become a so-called qualified accountant. So then, why would you want a British degree? If qualified and educated means having a certificate, why is a degree needed? Precisely! That is the stance that Universities in the United Kingdom have also taken. They have totally eliminated the need to learn and enhance one’s skillset from the curriculum; have turned a blind eye to the widespread academic fraud and are simply there to collect money from students.
Enter professional education bodies. Then you have the likes of CIMA, ACCA and ICAEW, who have stooped to the level of every other governmental institution. Britain is a currently that is hard-coded with the problems that make the third world nations of the world today, well, third world. Bureaucracy is at the heart of such disasters, Britain is fast headed that way. With institutes and certificates for everything, from trash management to facilities management to the auctioneers association to the certified breathing association, the English have developed a certification for virtually everything. The result of such widespread certification is that anyone who pays a fee and memorizes a bog-standard exam can go ahead and get one of these, which makes him/her qualified for a job. However, what most of these certificate holders or degree holders know is of little relevance to their jobs. That’s if they know much at all.
A little off topic, but Britain apparently came up with a workplace homicide act in 2007. Is it just me, or does parliament have too much time developing crap laws that accomplish absolutely nothing. Take today’s news: Jacqui Smith’s husband charged 10 quid worth of pornography to the government and half the nation lost it. What are these people, silly? You are worried about 10 pounds when Members of Parliament in England have come up with a second house allowance and other ridiculous benefits that allow them to claim hundreds of thousands of pounds legally every year? Again, is it just me, or is the education of British universities and institutions like CIMA clearly reflective in the populations reaction such news?
So, let’s get to CIMA. Why am I picking on CIMA? Management Accounting has always been a subject of great interest for me. Ever since I took my first accounting course in 1998 (that’s right!), I knew I wouldn’t be going into public accounting. I, therefore, very clearly understand the mission, purpose, goals, aims, objectives and benefits of management accounting. Accountants, in general, are supposed to be trustworthy: that’s why they can notarize, attest documents, etc. Generally, people are supposed to trust accountants. Of course, the likes of Arthur Anderson and KPMG have made headway in damaging the reputation of accountants; probably rightly so.
You see, accounting bodies should never stoop to the level of crappy standard that universities have. However, like every other bureaucratic branch in industry and government, everyone wants to make their own mafia and claim that they have it right, when they have nothing, except for a bunch of illiterate, pathetic, politically connected lobbyists. I’m sorry, did I say CIMA? That goes for all of them: CIMA, ACCA and ICAEW.
Now, since I am settled in the good old United Kingdom, I figured I might as well take a shot at one of these Certifications since according to everyone else who is a ‘qualified’ accountant in the UK, degree education is useless. Not that I really care about what others think, but in the UK bring qualified or certified is necessary, because the level of truth telling is so low that people will generally not believe much of what you tell them on your CV, but they will all buy into the lie of what these ‘professional’ institutions tell them. In essence, it’s an idiot proof system designed by insecure accountants who know they are idiots, and is pushed by a further qualified brand of idiiots. See how it works? Dumb patting dumber on the back and issuing dumber with a certification that makes dumber dumb.
Well, I’ve been reading up on some CIMA course materials and some of the content published by CIMA and their partners is, well, plain wrong. CIMA, for instance, claims that they offer education that no university offers, thereby offering enhanced professional education which makes it equal to an MBA. I’m sorry, but who the fuck is CIMA kidding? CIMA education is not extravagant, and if you have a degree from any half decent US University, there is nothing new for you to learn here, except for maybe a couple of concepts at the Strategic Level, none of which will be relevant to you in your job.
CIMA examiners and instructors ALSO claim that when grading papers, they are looking for students to use ‘keywords’ in their answers, rather than explain or justify the argument they are making or decision they are supporting. That equates to memorizing and is, well, what you’re supposed to require in 6th and 7th grade, not at a professional level. Not only that, CIMA openly claims that management accountants are not supposed to be systems experts, but must have apt knowledge of systems to understand the ramifications of and be involved in decisions made in companies regarding information systems. Well, if you’re not experts, the wise thing to do is to stay the fuck out of it. Not only does CIMA promote this unhealthy atmosphere in business, but partner Systems Institutes which are also victims of bureaucracy promote their specialty, and neither really give you any practical education, stirring a recipe for disaster. It’s this kind of education that causes the Ministry of Defence to wrongly pay several hundred thousand soldiers. Bad accountants who claim to know it all because they’re certified, and bad systems experts who claim to understand it all because an IS is apparently the be all and end all. It is this kind education that has, over the years, ensured that the UK will never become the leading economy, in terms customer service, innovation or process efficiency.
I don’t have a beef with CIMA, per se. CIMA is an average accounting certification that will not teach the seasoned, experienced graduate (from a decent country and a decent university) anything new. What you need to pass CIMA is to learn how to tackle their exams. What you need to understand while preparing and practicing for CIMA exams is that many CIMA examiners are not CIMA qualified themselves, which makes for even more of a make belief ‘good’ education and curriculum.
My only problem with CIMA lies in some of the ridiculously incorrect content that is part of their course. CIMA examines some aspects of information systems design that are plain wrong. Not only that, they go on to test some of these CIMA-developed concepts and terminologies, and instructors and examiners who have absolutely no clue about what they are talking about get to grade you on this stuff. As proof, I have a book that is supposed to contain questions and answers from past CIMA exams, and some of the answers have a long explanation of what the examiner is looking for. The answer ends with the phrase ‘powerful software solution’ followed by the examiners comments in parenthesis ‘whatever that means!’ That, ladies and gentlemen, is the quality of education being offered to you by a professional institute that claims to offer some of the most sophisticated business education in the country today.
It is no wonder then, that banks are collapsing and businesses are functioning on non-existent cash. Here’s a hot tip: go nail your educational institutions and education providers, who’ve been teaching wrong information with outdated syllabi that do not give the typical British graduate or certificate holder any ambition or tools to build a career with. What you are stuck with is: get your degree, get your certificate, grow old and get a pay increase with age. That is the path to staying twenty years behind the rest of the world in everything. That is path to killing creativity and promoting uncooth bureaucracy.
Oh wait, I almost forgot. Welcome to Britain. And I don’t hate it; it’s great! It’s just that many of the people are not with it, and that’s highly representative of the population of the planet. It is for the same reason that Americans elected and re-elected George Bush that the British keep following into the footsteps of such brain-dead, mind-numbing bureaucracy with every passing year. I have 100 pounds waiting for someone who can correctly tell me what that reason is.
Go on, have at it. What have you got to lose?
Continue Reading
Posted by Commie B on July 29, 2008 at 10:42 pm
It is very common for people, even accountants, who haven’t been in the industry long enough, to ask what the difference is between a certified and a chartered accountant. In addition, the question that follows is that is it really useful to hire a certified or a chartered accountant for business, or is it just a waste of money? Well, the answer to the latter, in a nutshell, would be Scott Butterfield’s all fitting answer: it depends. I’ll discuss it in detail later in this article; but first, let’s get to the certified versus chartered.
Really, the difference between certified and chartered is what the dictionary says. However, the difference between certified and chartered accountants, is, well, irrelevant. If you didn’t already know, here’s another interesting one for you: there’s also a group out there called the Association of Chartered Certified Accountants (ACCA). So, one accountant here is both chartered and certified.
I often hear Chartered Accountants picking on all other certified accounts, including FCAs, ACCAs, IMAs and CMAs etc., but there’s really no reason to be doing that. East of the United States, with an exception to Australia, the equivalent of a Chartered Accountant is a Certified Public Accountant. Therefore, the term Certified Public Accountant in the US is equivalent to the term Chartered Accountant in the UK and other countries that follow the UK convention. So, what is a CPA or a CA? Well, basically, if you’re either of these, you can conduct audits, and primarily audits for public, .i.e., stock exchange listed, companies. In a nutshell, that is the difference. Passing the CPA or CA exam is no evidence of an accountant’s technical ability or understanding of management accounting, tax accounting, or financial accounting. For what it is worth, I have met non-certified, non chartered accountants with more accounting acumen than CPAs and CAs alike.
Other ‘Certified’ or ‘Chartered’ Accounting Designations, such as the CIMA, ACCA, IMA, CMA etc. are management accounting designations, i.e., they prepare you more for operational and managing the business kind of accounting rather than the audit kind, which naturally makes them more, shall I say, interesting, challenging, creative, and less dull (if there is any such thing in accounting). Note, once again, that ultimately, a certification is a piece of paper, and you can get horrible qualified accountants too.
In many ways, accounting is a field like law. Just because one holds a license or a certificate, doesn’t mean one makes for a good accountant. Some lawyers are just plain good, and if you’re familiar with the legal system, good trial lawyers don’t really require any knowledge of the law; good public speaking skills here are essential.
Similarly, good accounting, and hence good accountants, is/are not measured by certificates or qualifications. What’s important in the case of a good accountant is the ability to translate numbers, debits, credits into money making business, and vice versa. There aren’t a whole a lot of accountants who can successfully do this, because a thorough understanding of business is required to become a good accountant. I say this, quite simply, because as is the case with public accountants (CPAs and CAs), their primary job is compliance with the law regarding financial reporting, which basically means you have to be able to read and follow instructions. Anyone can do that. It is the application of basic accounting principles across complex business models that can drive growth that separates an ‘accountant’ from a, erm…someone who just has a certified piece of paper.
Continue Reading
Posted by Commie B on March 22, 2008 at 5:56 pm
Over the past 7 years, I’ve served in various accounting-related positions, and I have seen all different kinds of people throw around different kinds of words pertaining to accountants and bookkeepers. The three most common ones are bookkeepers, accountants, and beancounters. Well, some might say nobody really gives a damn what people say, but in a world where corporations rely solely on image to get business and ruin the economy, classifications in your field followed by the right subsequent designation/job title can be very important to the success of an accountant.
So, what is a Bookkeeper?
Let’s start off by saying that all accountants need to know how to do bookkeeping. Bookkeeping, without getting into too much of the history, is simply the act of keeping books using the Double Entry System. As a bookkeeper, you maintain ledger accounts in all the different ledgers, and maintain all subsidiary documents like the cash book, etc. Sounds similar to what an accountant might do, right? Well, yes, it is. However, the role of a bookkeeper ends at the Trial Balance. Once your accounting period ends and the ledger accounts are closed to produce a trial balance, and once the trial balance is produced, it is ideally handed over to an accountant to generate the statements or reports.
So, what is an Accountant?
An accountant is an advanced bookkeeper, who is familiar the typical financial statements: i.e., Profit & Loss Account / Income Statement, Trading Account, Balance Sheet, Cash Flow, etc. etc. But keep in mind that being an accountant does not mean that you are familiar with the statement. The key is to know what goes into producing such a statement. Income Statements and Balance Sheets are relatively simple and standard, but then the cash flow is a statement most accountants struggle with, and its not their fault. The typical cash flow statement isn’t exactly designed for efficiency, and that’s where the roles of different accountants come in.
So, to sum it up, an accountant uses the information produced by a bookkeeper to generate meaningful financial statements and reports. An accountant MUST have comprehensive bookkeeping knowledge, and must continue to practice his/her double entry/ T-Accounts skills, or really, he/she won’t make for a very good accountant.
Public Accountants will NOT be covered in this discussion. They are also known as auditors. We all know they don’t warrant much discussion.
Financial Accountant vs. Management Accountant
Okay, this is an unusually fancy difference between Accountants, and I think it exists primarily because of the politicization and commercialization of institutions like CIMA and IMA.
Financial Accountant is basically classified as someone who prepares financial statements and reports, i.e., your standard P & L, Income Statement, Balance Sheet, Cash Flow, Aged Receivables, Aged Payables, etc.
A Management Accountant is supposed to be someone who converts these financial statements into reports that management needs for their analysis, which should ideally make a management accountant a mix of a corporate finance expert and a financial accountant. As interesting as it is, almost ALL good financial accounts have the knowledge needed to for the role of the Management Accountant, if you are an Accountant who can’t understand what the needs and requirements of management are reporting-wise and you cannot deliver them, well, then you should rethink your career.
Let’s be clear on one thing: Bookkeeping and Accounting are complimentary work; one cannot exist without the other. In Small Businesses, you typically only have one person doing everything (as unwise as that may be for a multitude of other reasons).
I’m going to write another article on typical job titles / designations very soon, because in the Accounting field these have become extremely diverse and confusing. It’s more fancy work, ultimately the commercializtion of the profession, but then that’s what the world loves most.
Continue Reading
Posted by Commie B on March 14, 2008 at 2:00 am
With the plethora of accounting certifications and qualifications out there today, no matter what country you are in, it can be a daunting task to choose which certification is right for you. Gone are the days when if you were a young fellow who aimed toward getting the Certified Public Accountant Certification (CPA) issued by the AICPA in the US; gone are the days when you could just become a Chartered Accountant (CA) in the UK, or for that matter anywhere else in the world.
The typical certified public or chartered accountant today is just one of the many recognized, approved and qualified accounting certifications today. There are numerous others, irrespective of where you are: the Association of Chartered Certified Accountants (ACCA, International) Certification, the Association of Accounting Technicians Certification (AAT, UK), the Certified Management Accountant (CMA) & the Certified Financial Manager (CFM) Certifications issued by the Institute of Management Accountants (IMA, USA), the Chartered Institute of Management Accountants Certification (CIMA, UK & International) which is totally a tier based certification, starting with entry, managerial, strategic and TOPCIMA. If you dig deeper into the US & UK Markets, you’ll see many others, and each of them has their own following. I recently found out that there was an Institute of Financial Accountants (IFA) in the UK, and it’s a pretty major organization. Interestingly enough, I’ve never seen ANY job advertised asking for a certification from the IFA. Questionable? Who in the hell knows.
But here is what I can tell you. Accounting has become a diversified field. The certifications mentioned above are only some of the management/financial/public accountant type, and there are other new accountant types, which come with some fascinating certifications of there own. The upcoming accountant job titles you will come across now are forensic accountants, environmental accountants, project accountants, systems accountants, etc. etc. The list is never ending. Gone are the days when you trained to be a Director of Finance/CFO, Financial Controller, or simply strived to become an auditor in a public accountancy firm. However, in today’s competitive world, no matter what country you are in, it is VERY important to pick the accountancy field that you want to go into. Since each of these fields/job titles in accounting has its own relevant certification or qualification, it can sometimes be difficult to trespass from one into the other. Also note that some of these are not multinational certifications, and when going cross border, especially between 2 first world countries (the US & UK, for instance), having one kind of a background or certification can cause you quite the grief.
Take, for instance, the simple line of Financial & Management Accounting. There are people out there, and particularly recruitment consultant characters, who will try to convince you that there is a LOT of difference between Financial & Management Accountants. Well, I’m here to tell you: bull-fecking shit. Management Accountants are for incompetent business owners; financial accountants are for compliance. That statement is true, but what good is a financial accountant who can only comply? That’s no accountant; he’s a simple instruction taker.
Back to the topic at hand. If management or financial accounting is the field you want to pursue, well, CIMA is your certification for Europe and most parts of Asia. If you are in the US, CMA or CFM from the IMA is the direction you should be headed in; and despite the common ground between the two, do NOT be confused or deceived. One will not co-operate with the other. The two are essentially competitors, with the IMA fighting for international recognition alongside CIMA. But get this, the AICPA feels so threatened by the IMA in the US, primarily because they are rightly carving our a different role/job description for financial managers in firms (a very niche position that CPA/CA types aren’t meant for), that they went out of the way to cut a deal with CIMA, saying that CIMA is indeed a decent certification, and that CIMA is an institution they recognize. There was an entire article in the IMA Magazine regarding the issue, and the problem is, the AICPA cannot risk losing the value of its members within the US, so it refuses to accept the separate role or importance of Financial & Management Accountants.
But the US is not a country where all is lost. Quality matters. America is probably the only place in the world where at some level, it’s not who you know, but what you know, with the result that even today, you can succeed in industry/private sector in the US without any certifications, but only if you know what the hell it is that you’re doing. Ideally, if you are going into industry, stick to the IMA Certifications: CMA & CFM. They are relevant! AICPA has become bloated and extremely political, and let’s face it, most Certified Public Accounants really can get dull. It’s not their fault. If you sole purpose in life is to assure the work of others, your existence falls into the misery of being second for good! AND, due to the tactics and acts of Certified Public Accountants, today, if we creative financal & management accounting types get creative with our work, we get penalized. Way to go, AICPA!
Now, if you’re in the UK, CIMA is the way to go. I have seen, with my exposure to this market, and some Asian & Middle East ones, that being a Chartered Accountant always helps. It looks good, no matter what job you apply for, but it is not always relevant. Being a CA does by no means make you good at management or financial accounting; it just means you can dig yourself in papers for hours and hours and not get fed up, which, on a whole different level, is something admirable since I myself have difficulty with that. Certifications for Private/Industry Accountants in the UK with value are the ACCA, the AAT, and CIMA. Note that if you come to the UK with other certifications from other countries (other than a CA which is issed by an Institute which is authorized/accredited by the Institute of Chartered Accountants in England & Wales [ICAEW]), like the ICMA you can get in India and Pakistan, which is the Istitute of Cost & Management Accountants, you won’t get too far over here.
For some reason, the ACCA is considered a medium level certification over here. I’m not sure why; maybe they haven’t advertised or marketed enough, but ACCAs are for some reason not given executive treatment, especially not to the level of the CIMA qualified personnel. CIMA, in the UK, is considered an executive level certification, and passing it in this country means that you have stood the accounting test of time, and deserve salary, whether or not you know anything is irrelevant. Although the basic content in ACCA & CIMA is comparable, as is the basic content of the CMA and CFM in the US (with an exception ot the differences between US GAAP, UK GAAP & IFRS/IASB), CIMA has marketed themselves well, and has forged business alliances that have given them the executive reputation. So, if you want to make it big in industry as a Controller, Director of Finance, VP of Finance, or a CFO, CIMA is the Certification you should be looking that. Correct me if I am wrong, but I think you will get there with the ACCA too. It will just take longer than with CIMA. AAT, on the other hand, has been coming up with all the positive marketing they’ve been doing lately. However, I think AAT is still considered an entry level professional certification for non-accounting degree holders, and it makes you familiar with some of the technical aspects of accounting in the UK: VAT, PAYE, NI, etc. etc. Hence, the name Accounting Technician.
Let’s be honest, interesting or not, right or wrong, there is a big following that goes with the CPA and CA Certifications. So you’re always playing it safe by aiming for one of those. They may not be relevant for industry, but they will and have always held their importance, since auditing has become a vital part of big corporate money. Of course, if it has been your lifelong dream to become a public accountant, to project your affairs into other people’s business, and spend the rest of your professional life assuring others that their work is upto par, well, what can I say, by all means, go ahead. No offence meant. I have nothing against Certified Public Accountants or Chartered Accountants. I just think the role of Auditor is boring. I could never do it. I barely got through Auditing Class. Unto each his own, eh!
This article is written courtesy of VAFTA Solutions Limited.
Continue Reading
