08 March 2010

Women and accountancy: still a way to go

In 1919, Mary Harris Smith (1847-1934) became the first woman chartered
accountant in the world at the age of 72. Although she had studied from the
age of 16, worked as an accountant and established her own practice in
1888, her applications to join the Society of Accountants and Auditors were
repeatedly turned down. However, after much campaigning, and once the
Sex Discrimination (Removal) Act was passed, she finally won her battle.

In 2010, women make up an increasing proportion of new entrants to the

accountancy profession. Almost 50% of the accountancy trainee intake is
female and over half of ACCA members and students are women. So have all
the problems been solved?

In 2009, ACCA in Singapore conducted the Women in Accounting and

Finance Survey 2009 jointly with Robert Half to ascertain whether the
proverbial 'glass ceiling' is finally cracking.

One of the most worrying statistics to come out of the survey was that 45%
of those asked do not think they will reach a senior management position,
such as a directorship, within finance and accounting. This is a feeling that is
reflected around the world.

This view exists partly because the upper echelons of the profession are
often still dominated by men - in the UK and the US, two of the most
advanced countries, only 20% of senior jobs are held by women. It also
relates to work-life balance issues. Evidence shows that female accountants
have similar careers to those of men until they have a child, after which their
career is typified by a break in employment and part-time work. This is also
often the point at which disparities in pay begin. Others still may leave to go
into a smaller practice where they can work on a more flexible basis.

This is something that should be addressed as a priority. Evidence proves

that companies need gender-balanced senior management teams to
participate in the global market strategically and wisely. For example, many
studies confirm that men and women bring different and complementary
sensibilities and leadership styles to the table.

Taking just two examples, Columbia University's 2008 report Girl Power:
Female Participation in Top Management and Firm Performance provides
data suggesting that firms that promote women to senior management
positions have superior economic performance due to the different skills
women bring to the table. And a 2005 study from the Center for Financial
Research at the University of Cologne entitled Sex Matters: Gender and
Mutual Funds documented differences between male and female fund
managers: women managers tended to take less extreme risk and to adopt
more measured investment styles (that perform well over time).

Encouraging women into senior management positions is a crucial part of

the global drive to improve equality between men and women. Chartered
accountancy is a diverse and rewarding career. We need to change these
often negative perceptions of the accounting profession to ensure that there
is a fair representation of women at all levels.

ACCA has made a number of recommendations to address these issues in its

paper Equality: Women in Financial Services - we would be interested in
your views.