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Long term outlook for Corporate Finance / FP&A as a career choice
Posted on 8/28/18 at 12:32 pm
Posted on 8/28/18 at 12:32 pm
I currently work in a FP&A finance role at a FAANG company in Silicon Valley. I interact with engineers and product managers on a daily basis and I am seeing first hand how everything is getting automated and how every product or process now has a AI / ML component to it. Anything that can be automated is being automated. Period.
The latest example is that every expense report in our company is now being run through an AI program that can detect outliers and can flag expense reports that need further analysis, where as in my previous companies someone would go through each expense report manually line-by-line or if the volume was to high, they would pick random samples for further analysis. That's just one example among many where a piece of software can do what multiple humans can in a fraction of the time. Software is really eating the world.
Now I'm afraid that the career path I chose (corporate finance) will become obsolete within the next 10-15 years, with more mechanical roles like accounting, revenue recognition, quarterly reporting, SOX compliance etc. getting eliminated even sooner. I'm too old to go back and get a software engineering degree, but don't want to find myself in my mid-40s or early 50s without a job and dwindling career prospects.
Would love to hear thoughts on whether you think my concerns are unfounded and that I'm thinking to far ahead (it's hard not to when you are surrounded by the kind of technologies and smart engineers like I am in the Bay Area). Anyone here have had to change job functions late in their career? What are some ways in which you can prevent your skills from getting outdated as you get older?
The latest example is that every expense report in our company is now being run through an AI program that can detect outliers and can flag expense reports that need further analysis, where as in my previous companies someone would go through each expense report manually line-by-line or if the volume was to high, they would pick random samples for further analysis. That's just one example among many where a piece of software can do what multiple humans can in a fraction of the time. Software is really eating the world.
Now I'm afraid that the career path I chose (corporate finance) will become obsolete within the next 10-15 years, with more mechanical roles like accounting, revenue recognition, quarterly reporting, SOX compliance etc. getting eliminated even sooner. I'm too old to go back and get a software engineering degree, but don't want to find myself in my mid-40s or early 50s without a job and dwindling career prospects.
Would love to hear thoughts on whether you think my concerns are unfounded and that I'm thinking to far ahead (it's hard not to when you are surrounded by the kind of technologies and smart engineers like I am in the Bay Area). Anyone here have had to change job functions late in their career? What are some ways in which you can prevent your skills from getting outdated as you get older?
This post was edited on 8/29/18 at 10:54 am
Posted on 8/28/18 at 12:56 pm to MailKimp
You have a legitimate concern but it is somewhat overblown.
AI can produce all the data points in the world but engineers and non finance business owners will still need someone to help the understand and interpret the numbers.
If you are strictly a number cruncher, you have problems and need to develop a new skill set. If you are providing strategic guidance, you will be fine.
AI can produce all the data points in the world but engineers and non finance business owners will still need someone to help the understand and interpret the numbers.
If you are strictly a number cruncher, you have problems and need to develop a new skill set. If you are providing strategic guidance, you will be fine.
Posted on 8/28/18 at 1:19 pm to BamaAlum02
quote:
If you are strictly a number cruncher, you have problems and need to develop a new skill set. If you are providing strategic guidance, you will be fine.
I do crunch numbers as part of my job, but a majority of my role as a finance business partner is supporting business partners in business development, engineering, product management and sales during quarterly/monthly business reviews, annual planning, strategic long range planning and adhoc deal analysis.
I don't do any accounting stuff like monthly close and general ledger tie-out and stuff like that, although I use accounting knowledge on my day to day intractions with my business partners who sometimes have a hard time understanding why revenue and booking numbers differ and why revenue cannot be recognized all up front, but over the length of the contract and such.
I like to think I add value as a finance person with a seat at the table, but in an engineer centric company like mine, most of the vision and strategic planning comes from the technical folks and finance acts as someone who challenges and tries to validate growth and revenue projections that the business puts out and makes sure it is in line with the investment, spend and revenue growth theme that the company has overall.
This post was edited on 8/28/18 at 2:54 pm
Posted on 8/28/18 at 1:48 pm to MailKimp
quote:
MailKimp
I think you are overblowing things but I do expect a lot of the manual processes and routine reporting will be replaced. Even with AI/ML, companies need people to run the businesses and make the decisions.
Worst case scenario, you are correct. If so, it will take a very long time for non-SV firms to adopt what you are describing.
Posted on 8/28/18 at 1:51 pm to MailKimp
I'm a CPA but I have been 100% consulting for 5 years and that is the direction our firm continues to go towards.
We are currently using automation to pull reporting packages and other info. We are a small firm and are not using AI or automation anywhere near the big 4 are but we are pushing towards it more and more.
The value we provide and what we bill for is not the reporting packages but it is the meeting to go over and interpret the numbers. Same with our other business lines.
It is more challenging because you constantly have to evaluate what you are doing and try to up your game and continue to add value.
We are currently using automation to pull reporting packages and other info. We are a small firm and are not using AI or automation anywhere near the big 4 are but we are pushing towards it more and more.
The value we provide and what we bill for is not the reporting packages but it is the meeting to go over and interpret the numbers. Same with our other business lines.
It is more challenging because you constantly have to evaluate what you are doing and try to up your game and continue to add value.
Posted on 8/28/18 at 2:09 pm to BamaAlum02
Spoken like a consultant...keep adding value
This post was edited on 8/28/18 at 2:09 pm
Posted on 8/28/18 at 2:25 pm to MailKimp
dude FP&A especially at a FAGMAN company is a great spot to be in.
Can jump into strat,pe/vc, startups, mba etc.
Can jump into strat,pe/vc, startups, mba etc.
Posted on 8/28/18 at 2:35 pm to MailKimp
quote:
don't want to finf myself in my mid-40s or early 50s without a job and dwindling career prospects.
You can always hedge your bets by investing in the AI/ML that are about to take your job
I work in finance and the reassuring thing to me about job security is
1) Non finance people have a difficult time interpreting financial output correctly. If you don't understand the question, you aren't going to understand the answer
2) I have made it my business to know/understand the software/technical advances in my field. If 1 person can use software to automate the work of 5 employees, I want to be the 1
Example of #2
quote:
The latest example is that every expense report in our company is now being run through an AI program that can detect outliers and can flag expense reports that need further analysis,
Be that further analysis
This post was edited on 8/28/18 at 2:40 pm
Posted on 8/28/18 at 10:55 pm to MailKimp
I work for EY, EY much further along with RPA than my previous big 4. Companies are presently adopting Automation at various levels. Right now companies trying to figure out how to make it economical. Until Big 4 has stockpiles of reusable code (across the major 3 automation platforms) covering lots of permutations across all system and interfaces there will continue to be a great deal of new code necessary and if your systems or processes are changing then it could require significant reconfiguration.
Agree with other poster, be the guy that can identify opportunities for automation and you are able to communicate that to your automation COE once it exists. Be agile and you’ll continue to be employed.
Agree with other poster, be the guy that can identify opportunities for automation and you are able to communicate that to your automation COE once it exists. Be agile and you’ll continue to be employed.
Posted on 8/29/18 at 9:18 am to lynxcat
quote:
Spoken like a consultant...keep adding value
I know it’s a cliche but it’s true. In my world clients have to have an audit or tax return so they will begrudgingly pay for those. The consulting is usually 100% voluntary and the most expensive. If you are not bringing something to the table, you’re out.
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