An accountant reviews and analyses financial records, keeping track of a company’s or individual’s income, expenditures, and tax liabilities. An accountant may also be involved in project planning, cost analysis, auditing, and financial decision-making. Accountants may specialize in areas such as auditing, tax preparation, management accounting, or forensic accounting, depending on their expertise and professional interests. They ensure the financial health and integrity of organizations, providing valuable insights and guidance to support informed decision-making.
Individuals interested in pursuing a career in one of these fields should carefully consider their interests, strengths, and career goals to determine the most suitable path for them. The workplace of an accountant can vary depending on their specific role, industry, and employer. However, accountants commonly work in office settings, such as accounting firms, a divorce or separated couple and income taxes, deduction corporate offices, government agencies, or non-profit organizations.
If you enjoy working with numbers, you might find that one of the accounting fields below is right for you. The median salary for all accountants and auditors was $77,250 in May 2021, according to BLS. But the earning potential could be much higher depending on the specifics of an accountant’s role. As an accountant, you can take many different paths and change direction along the way.
Accountants need both a bachelor’s degree in accounting or finance and experience in the field to take the exam. The exam is tailored to each state’s requirements and is administered by the state boards of accountancy. There are 671,855 certified public accountants in the U.S. as of August 2024, according to the National Association of State Boards of Accountancy. Accountants often spend much of their time working at a desk, using computers and accounting software to record financial transactions, prepare reports, and analyze data.
A successful career as an accountant is not based entirely on education and professional certifications. Accounting positions are best suited to individuals who process information in a profoundly analytical manner. In addition to university degrees, accountants pursue advanced accounting certifications to position themselves as experts in the field. They compile the information needed to prepare entries for company accounts, such as the general ledger. This information is used to make weekly, monthly, quarterly, or annual closing statements and cost accounting reports.
- There are various types of accountants, including public accountants, management accountants, government accountants, forensic accountants, and auditors, each serving different needs.
- For example, Heller says his accounting employees work fully in-office, but a fully or mostly distributed company may hire fully remote accountants.
- Accountants use accounting information systems to collect, store, and analyze financial data.
They typically observe established accounting control procedures through an accounting system or software program. They are the ones tracking, analyzing, and auditing the company’s income and expenditures. They also have a key role in planning, decision-making, and forecasting, based on their ability to accurately estimate the cost of future projects. A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. Someone on our team will independent variable definition and examples connect you with a financial professional in our network holding the correct designation and expertise.
Provides Financial Clarity
Since 2018, she has worked in the higher-education web content space, where she aims to help current and prospective students of all backgrounds find effective, accessible pathways to rewarding careers. Many employers prefer master’s-educated candidates for accounting positions, and CPAs typically hold a master’s degree in accounting. According to data from Zippia, 35.4% of accountants in the United States are not white, 8% identify as LGBTQ and 61.8% are women.
Gain Experience
This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible. However, there are drawbacks as well, such as the cost of services, dependence on the accountant’s expertise and integrity, and the potential for human errors. Certifications like Certified Public Accountant (CPA) or Certified Management Accountant (CMA) are valuable in advancing an accountant’s career. Accountants handle everything from payroll processing and bookkeeping to financial forecasting and auditing. If you have a laid-back personality and tend to let things slide, stay away from this career.
After completing their education and relevant certifications, accountants begin their careers as bookkeepers, payroll assistants or in other entry-level roles. Accountants who excel in their roles for several years may move up to senior accountant positions and go on to pursue an accounting manager role. Some of the most popular auditing certifications include the Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Fraud Examiner (CFE) designation.
The demand for public accountants is set to increase as more companies seek assistance in complying with new accounting standards and regulations. Public accounting is the field of accounting that deals with the financial statements and records of public, government, and non-profit organizations. Public accountants ensure that these organizations’ financial statements comply with generally accepted accounting principles. They may also provide tax, advisory, and consulting services to their clients.
There is also demand for accountants in the public sector and at nonprofits. Finally, accountants can work independently at their own firms or as consultants. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals. A public accountant has the opportunity to work with a variety of clients and different types of businesses, which can be interesting and challenging. They ensure all spending is within the budget and that there is no fraud or waste. Accountants aid in decision-making by providing well-analyzed financial data, helping to formulate strategic business plans.
Other Voluntary Certifications
After the analysis is complete, they make recommendations on how to reduce total tax liabilities in the future. Accountants use accounting information systems to collect, store, and analyze financial data. In this role, you will use these systems to track a company’s financial transactions, generate reports, and help decide where to allocate resources.
How confident are you in your long term financial plan?
Forensic accountants investigate financial crimes such as embezzlement, fraud, and other complex financial disputes. They ensure that financial transactions are correctly recorded and classified in the company’s books, providing a clear financial picture for stakeholders. That depends on the company you work for, the agreement you have with them, and the workload you are given. Accountants looking to advance their careers may also pursue other voluntary certifications. These certifications include Certified Management Accountant (CMA), Certified Internal Auditor (CIA), and Certified Bookkeeper (CB). Accountants must also resolve any discrepancies or irregularities they find in records, statements, or documented transactions.
Working as an intern is a great way for aspiring accountants to gain industry experience. If you’re enrolled in an accounting bachelor’s program or you’ve just graduated, an internship can help you build professional skills and become familiar with what it’s like to work in the industry. The BLS reports an annual median salary of $78,000 for accountants and auditors as of 2022—more than $30,000 above the median annual wage for all occupations nationwide. For many professionals, accountancy provides a challenging and fulfilling career.