The Hidden Curriculum: Why does insolvency accounting remain absent in university education?

“Insolvency – what is that?” is what I remarked at the prospect of moving from the Business Advisory division into the Insolvency team at the start of the pandemic. Little did I know that the move from Tax to Insolvency would be one which shaped my professional career and one which I wish I had known about sooner. In this article I share my experience about the journey to insolvency accounting and why I think that it is a missing curriculum in university education.

A Surprise Turn in Career Path

Like many young professionals fresh out of university, my initial foray into the world of accounting was guided by traditional expectations. I began my career in the Tax division, a path that seemed to align with the general perceptions of what a career in accounting entailed. The world of tax, numbers, and financial planning was familiar territory.

However, fate had other plans in store for me. The onset of the Covid-19 pandemic brought about a sea change in the economic landscape. There were rumours of an insolvency tsunami similar to that of following the Global Financial Crisis and the need for ‘hands on deck’ in the insolvency division was going to be critical in having the capacity to take this anticipated flood of appointments. The realm of insolvency accounting was unfamiliar to me however in great chaos comes great opportunity, so I jumped at the chance to shift departments.

The Journey to Insolvency Accounting

Embracing this career shift, I embarked on a journey that would alter my professional trajectory. My transition into insolvency accounting was marked by a steep learning curve, but it was also a journey filled with revelation and excitement. I discovered that insolvency was not merely about dealing with financial wreckage but also about resurrecting businesses and providing individuals with fresh financial starts. I also unearthed that there is great solace in assisting clients through financial difficulties no matter how big or how small.

Insolvency accounting involves navigating complex legal and financial intricacies. It requires an understanding of insolvency laws, court processes, negotiations with creditors, and the delicate task of managing distressed stakeholders. Each case presented unique challenges, from liquidations to voluntary administrations and bankruptcies. As I delved deeper into this field, I realised that it was far more dynamic and multifaceted than I had ever imagined.

The Missing Curriculum in University Education

Reflecting on my journey, I couldn’t help but wonder why insolvency accounting remained conspicuously absent from the university curriculum. The traditional accounting syllabus provides a solid foundation but lacks coverage of the specialised knowledge and skills required in insolvency practice.

Here are a few reasons why insolvency should be integrated into accounting education:

1. Real-World Relevance: Insolvency is a common occurrence in the business world. Equipping accounting students with knowledge of insolvency processes and strategies is essential for their preparedness in the workforce.
2. Career Opportunities: Many students enter the accounting profession with limited exposure to insolvency. Integrating insolvency into the curriculum would open up new career paths and expand job prospects for graduates.
3. Holistic Understanding: Insolvency accounting is not just about numbers; it involves legal concepts, negotiation skills, and a deep understanding of financial distress. These skills are invaluable for well-rounded accounting professionals.
4. Contribution to Economic Recovery: Accountants trained in insolvency play a vital role in revitalising businesses and mitigating financial crises. Their expertise contributes to economic recovery and stability.

Conclusion

My journey into insolvency accounting was a revelation, and I can’t help but wish that I had known about this exciting field sooner. The experience has underscored the importance of incorporating insolvency education into university curriculum in some way shape or form. By doing so, we can prepare future accountants for the real-world challenges they will face and ensure they have the skills and knowledge to make a meaningful impact in times of financial distress. Insolvency accounting may not have been on my radar initially, but I now recognise its significance and the transformative potential it holds for aspiring accountants.

If you are a graduate student who wants to know more about insolvency accounting and what a career as an insolvency accountant looks like, contact Ronan Turley (rturley@vincents.com.au) or 07 3228 4267 between 8:30am and 5:00pm Monday to Friday for a obligation free discussion about insolvency accounting.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.