Qualifications vs Experience | Impact on Career in Short & Long Term

Happy New Year All!

I hope this message finds you in good spirits. It's been a while since I published any article in my newsletter!

So what we are covering today?

Qualifications vs Experience - What Weighs More...!

Having myself navigated the dynamic terrain of the accounting and finance industry across various countries being Pakistan, UAE, UK and having seen many friends working across different countries around the world, I often find myself pondering the critical question that professionals in our field face: What holds more weight in the short term and, perhaps more crucially, for long-term success - Qualifications or Experience?

Before doing a deep dive in both in terms of short and long terms, here am I reflecting what i have personally seen and experienced over my 10 years work Journey!

• Qualification - Massively important for career start and enables / gives you a boost to aim for great experience. In my case, my CA Intermediate made me join EY for Articleship where I gained my initial work experience.
• In later stages of career, I do not see qualifications playing a massive role in shaping career (they do play some role though) - it is the experience and your career trajectory which defines your pathway.
• I have seen many successful people with just one qualification which they obtained at the beginning of their career. After that, they just got great experience year on year and built on that.
• Seen some great people as well who have done completely different qualifications to what type of businesses they are doing / leading. Again, all based on their experience in long run!
• My doing CFA hasn't had any direct impact on my career as well. It is my experience in Treasury team, which is shaping my career forward.
• Sometimes multiple qualifications have helped people find new careers for example moving into ESG recently or moving into data analysis fields.

So this is just a few tangible points i have observed. In general, let's delve deeper into this discussion, considering not only career advancement but also the financial implications.

Short Term Success: Balancing Qualifications and Immediate Earnings

In the short term, acquiring recognized qualifications such as CA, ACCA, CPA, CIMA, and others undeniably opens doors to coveted positions and can lead to immediate financial rewards. These credentials are often associated with higher starting salaries and can accelerate your ascent up the corporate ladder. Employers value the technical expertise and dedication to professional development that these qualifications represent.

However, it's essential to note that while qualifications set a strong foundation, they may not guarantee instant financial success. The practical application of knowledge in a real-world setting becomes a crucial factor. Professionals who can swiftly adapt their theoretical understanding to practical problem-solving often find themselves reaping financial rewards early on.

Long-Term Excellence: Unleashing the Synergy for Sustainable Financial Growth

As we look towards long-term career trajectories, the synergy between qualifications and experience becomes more apparent, impacting not only career advancement but also financial growth. Experience, garnered through diverse roles and exposure to multifaceted financial scenarios, becomes a significant driver of long-term success.

In terms of financial remuneration, a track record of successfully navigating complex financial landscapes, contributing to strategic decision-making, and demonstrating leadership qualities becomes a catalyst for salary increases, bonuses, and other financial incentives. Moreover, seasoned professionals often find themselves well-positioned for lucrative opportunities such as partnerships, executive roles, or even entrepreneurship.

Strategic Planning for Financial Success: A Holistic Approach

While qualifications and experience are pivotal, strategic planning is essential for maximizing financial success. Continual professional development, strategic networking, and staying attuned to industry trends are vital components of a holistic approach.

Consider how pursuing advanced qualifications, such as obtaining an MBA or specialized certifications, can complement your experience and open doors to higher-paying roles. Moreover, leveraging your experience to take on challenging projects or leadership roles can significantly impact your earning potential.

In conclusion, the interplay between qualifications and experience is nuanced, with both being integral to short-term success and long-term financial growth. Professionals who strike the right balance, adapt to changing landscapes, and strategically plan their career paths often find themselves not only climbing the career ladder but also enjoying substantial financial rewards.

I welcome your thoughts and experiences on this multifaceted topic. Let's continue the conversation about career development and financial success in the accounting and finance industry.

Also don't forget to checkout my YouTube channel: https://youtube.com/@PremKumarACA?si=eaRaLRPB-C_gLjlm

Best regards,

Prem Kumar, ACA