Facing Evolving Challenges in the Finance Industry

This is a time of upheaval throughout the financial sector and anyone interested in accounting careers needs to be well aware of the changing climate that faces new graduates as well as those transitioning into accounting jobs, especially at hedge funds and other investment firms. The current economic slump, the failure of firms once deemed too big to fail, and accounting scandals involving investment funds which turned out to be Ponzi schemes have meant that changes are being made and at least for the moment, business as usual for those engaged in accounting employment is anything but.

Regulatory Changes

The regulatory requirements for hedge funds have changed. While the entire financial sector has always been subject to a complex set of regulations, new developments including Form 90.22 which cover taxable and non-taxable ownership of tax exempt entities and foreign funds, among other assets mean new responsibilities for those in accounting careers.



Providing Greater Transparency to Investors

Especially in the wake of the Madoff scandal, hedge funds and other investment firms are moving in response to the demands of their investors to do business in a more transparent way. It's understandable given the number of people who have been taken in by unscrupulous investment fund managers - and it means changing the way that many accounting jobs are handled by finance and accounting professionals.

Efficient Management of Complex Sets of Assets

The growing array of financial products available and the increasing sophistication of hedge fund investors mean that accounting employment in this industry is more complex than ever and requires in depth knowledge of not only the investment sector, but the intricacies of the software now available to streamline the management of these services.

Investor Confidence

The current recession and the aforementioned collapses and scandals in the investment sector mean that the CFOs of hedge funds need to reassure investors and draw interest with new features. The precise strategies vary from fund to fund of course, but newcomers to accounting careers will by necessity have to be quick studies when it comes to their design, implementation and management.

Efficiency

Many investment funds are now regretting their decisions to improve their bottom line by slashing their workforce. Though this has indeed reduced overall operating costs at many firms, it has also led to unmanageable workloads being imposed on the remaining personnel at these funds. It is not necessarily an unattainable situation, though those entering accounting employment need to be well versed in the latest, most efficient methods of handling the daily duties required of the staff at hedge funds and other investment firms. Those with the necessary skills and training will find themselves to be valuable assets to prospective employers in the industry - and more than likely moving rapidly up the corporate ladder.