Accounting

Life in investment banking is rarely simple, however, with accountants usually engaged in more complicated matters as well. For example, they play an important role in helping a bank monitor how much risk it's taking and how much money it has lost in miscalculated share trades. They also prepare reports for the regulator to show the bank is playing by the rules, and they advise the bank on the best strategy for making money in the future.

Trends

Now is a good time to work as an accountant in the financial services industry: qualified accountants with a knowledge of banking are in short supply.

James Watson, human resources manager for the finance division at investment bank Dresdner Kleinwort Wasserstein (DrKW), says banks' appetite for accountants is rising due to the growing use of derivatives products, improving financial markets (meaning a higher volume of shares traded) and heftier regulatory requirements. The sector needs more controllers (see below), says Watson, adding: "There is a lot of project work related to Sarbanes Oxley and Basel II."

The upshot of this is a shortage of accountants to go around. "A good calibre accountant with a few years' financial services experience could easily get five or six job offers without even blinking," says Simon Lindrea at recruiter Michael Page City.

As a result, banks are increasingly prepared to compromise on the kinds of accountants they'll employ. ACA qualified accountants used to be their favourite species because it's seen as offering a good grounding in financial modelling skills. Today, recruiters say they're just as prepared to look at people who are CIMA and ACCA-qualified.

Roles and career paths

There are three main accounting roles in banks:

1) Product control

Product controllers work alongside traders to monitor and restrict the risks to which the bank is exposed through trades. Like traders themselves, controllers typically specialise in a particular class of financial product.

2) Management Reporting

Management accountants provide managers with information on the state of the business. This enables managers to formulate strategy based on knowledge of risks and budgetary constraints.

3) Financial Reporting

Financial reporters produce monthly and year end accounts, and meet the reporting needs of the Financial Services Authority. If you want to be an accountant in a bank, you can always sign up straight out of university: several banks, including Morgan Stanley, Deutsche Bank and Citigroup, offer accountancy training programmes. Alternatively, you can train as an accountant elsewhere and move into banking after qualifying.

Pay

The best paid jobs in banking are for controllers working with derivative products. According to recruitment firm Morgan McKinley, a financial controller working with derivatives, with between one and three years' post qualification experience (PQE), can earn a base salary of up to 55k plus a 25% bonus. Management accountants and derivatives accountants, who aren't as close to the trading floor (where profits are made) earn around 10% less.

Skills

· SallyAnn Birchall, head of graduate recruitment at Deutsche Bank, says the bank looks for: "Strong influencing skills, creative problem solving ability, a background in business, and a keenly analytical and numerical mind."

· "Banking is a very no-nonsense industry", says Michael Buckley, a consultant in the newly qualifieds' division of recruiter Joslin Rowe. "You need to get things done quickly and with a minimum of fuss. You'll be dealing with high-powered people, and an ability to get a point across quickly is critical."

· Richie Holliday, head of finance recruitment at Morgan McKinley, says if you're an accountant working near the trading floor, you'll need to be able to deal with the occasional temper tantrum: "If a trader wants to make a deal and you can't respond in time, they could lose a lot of money and throw their toys out of the pram." Holliday says accountants on the trading floor can benefit from a science or maths background at university, particularly if working with derivative products.

· Richard Moore, a recruiter at UBS, says people working as controllers need to be quick-witted thinkers who can cope with large amounts of responsibility: "Controllers need to be able to provide real-time information to traders: it's a very important position, which requires a great deal of accuracy and the ability to make quick decisions about the viability of a trade based on the bigger picture of the bank's commercial strategy."