The Accounting Profession: A Career Guide and Resource

The accounting profession is a diverse and dynamic field that offers a wide range of career opportunities. Accountants play a crucial role in helping businesses and individuals make informed financial decisions.

Accounting professionals can specialize in various areas, including financial accounting, auditing, taxation, and forensic accounting. According to the Bureau of Labor Statistics, employment of accountants and auditors is projected to grow 6% from 2020 to 2030, faster than the average for all occupations.

To become an accountant, one typically needs to earn a Bachelor's degree in accounting or a related field and obtain certification, such as the Certified Public Accountant (CPA) credential. The American Institute of Certified Public Accountants (AICPA) is the premier professional organization for CPAs in the United States.

Accounting professionals must stay up-to-date with changing laws and regulations, such as the Sarbanes-Oxley Act and the Tax Cuts and Jobs Act.

To become a certified public accountant, you'll need to pass the Uniform CPA Examination, which consists of four sections covering accounting fundamentals and more complex topics.

Earning a four-year degree, such as a Bachelor of Science in Accounting, is also a requirement for CPAs.

One to three years of professional work experience is typically needed to qualify for the CPA certification.

CPAs must ensure businesses and individuals follow generally accepted accounting principles (GAAP) issued by the Financial Accounting Standards Board (FASB).

CPAs work mainly in public accounting, corporate accounting, government, not-for-profit, and education sectors.

To become an accountant, you'll typically need a Bachelor of Science in Accounting or a similar degree and gain work experience.

An advanced degree, such as a Master of Business Administration (MBA), can help prepare you for more senior or leadership roles and increase your salary potential.

To take the Uniform CPA Examination, you'll need a bachelor's degree in accounting or finance and experience in the field.

The exam is tailored to each state's requirements and is administered by the state boards of accountancy.

The accounting profession has several professional associations that aim to promote the growth and development of accountants. The American Accounting Association is one such organization that brings together thought leaders in accounting to address key issues in accounting scholarship, education, and practice.

One of the key organizations for women in accounting is the Accounting & Financial Women's Alliance (AFWA). AFWA's goal is to enable women in all accounting and finance fields to achieve their full potential and contribute to their profession.

There are also several organizations that focus on specific areas of accounting, such as the Association of Government Accountants (AGA) and the Association of Local Government Auditors (ALGA). AGA leads and encourages change that benefits the field of government accounting, while ALGA empowers local government auditors through excellence in advocacy, education, and communication.

Here are some of the key professional associations in the accounting field:

Professional associations play a vital role in the accounting and finance industry, providing a platform for professionals to connect, share knowledge, and stay updated on industry developments.

The Accounting & Financial Women's Alliance (AFWA) aims to empower women in accounting and finance fields to achieve their full potential.

ACAT, a non-profit organization, identifies independent practices that provide financial, accounting, and taxation services to individuals and small businesses.

The American Accounting Association (AAA) is a thought leader in accounting, developing new tools and approaches to address key issues in accounting scholarship, education, and practice.

The Association of Certified Fraud Examiners (ACFE) is the world's largest anti-fraud organization, providing anti-fraud training and education.

The Association of College and University Auditors (ACUA) assists institutions in improving their internal operations and processes through professional development and sharing experiences.

The Association of Credit Union Internal Auditors (ACUIA) provides education and resources to credit union internal auditors, risk managers, compliance officers, and audit/supervisory committee members.

Here are some notable professional associations in the accounting and finance industry:

US Standards Books are a must-have for professionals in the field. They provide comprehensive coverage of all Financial Accounting Standards Board (FASB) Topics, including the latest updates.

The AICPA sets the Generally Accepted Auditing Standards (GAAS) under which U.S. audits are conducted. This is reflected in books like Wiley Practitioner's Guide to GAAS 2023, which delivers a thorough description and analysis of auditing standards, SSAEs, SSARSs, and Interpretations.

Wiley GAAP 2023 offers a thorough discussion of relevant perspectives and issues, GAAP sources, practice-oriented examples, and clear definitions of terms, concepts, and rules. This book provides the most comprehensive coverage of all FASB Topics.

Here are some key books in our collection on US standards:

These books are essential for accountants and other financial practitioners to stay up-to-date with the latest updates and changes in US standards.

Accountants must abide by the ethical standards and guiding principles of the region where they practice, such as the International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP).

These standards promote consistency and transparency in financial statements, which is essential for building trust with clients and stakeholders.

Certified public accountants have a fiduciary duty to their clients, meaning they must be honest and trustworthy, and avoid negligence in their duties.

Their judgment and work can affect not just an individual but an entire company, including its employees, board, and investors.

Accountants can be held liable under the common law doctrine if they are negligent in their duties, mispresent themselves or their clients, commit fraud, or breach a contract.

Here are some specific ways accountants can be held liable:

They can also be held liable under statutory law by state or federal securities regulatory bodies if they fail to provide their clients with appropriate services or give them bad advice.

In the accounting profession, you can explore various career paths and specializations to find the best fit for your skills and interests. The three main sectors are public accounting, corporate accounting, and financial services.

Public accounting offers diverse experiences and career growth opportunities, with top employers like Deloitte, Ernst & Young, KPMG, and PwC accounting for over a quarter of a million jobs in 2020. You can also find opportunities in private practice or local and regional firms.

In public accounting, you can specialize in tax services or audit and assurance services. Tax services require strong communication skills and organized and deadline-driven individuals, while audit and assurance services need creative and solutions-minded individuals. The median salary for entry-level tax services professionals is $49,000, increasing to $73,250 for senior-level positions.

Here's a brief overview of the main sectors and their salary expectations:

Ultimately, the right career path for you will depend on your skills, interests, and goals. Consider exploring the different sectors and specializations to find the best fit for your future in the accounting profession.

Management accountants help companies budget and perform better by identifying, measuring, analyzing, interpreting and communicating information to managers.

They prepare data for use within a company by forecasting cash flows, creating budgets, and analyzing the rate of return for short and long-term projects.

Management accountants often advise senior management on financial decisions.

A four-year degree is generally required for this role, as it involves maintaining the company's financial system and overseeing a team of entry-level accountants who perform bookkeeping and other duties.

Corporate careers in accounting offer a wide range of opportunities, from public accounting to corporate accounting and financial services. Corporate accounting roles are found in nearly all sectors of the economy.

In corporate accounting, you can expect a more consistent schedule and less stressful environment than public accounting. Corporate accounting varies widely by industry, but you can expect a more predictable work life.

To work in corporate accounting, you typically need an undergraduate degree in accounting or a related major. Investment accountants, for example, need a strong knowledge of state and federal regulations of how investments should be maintained, reported, and managed.

Some common roles in corporate accounting include investment accountants and financial advisors. Investment accountants work specifically in brokerage and asset management firms and maintain investments for their clients. Financial advisors, on the other hand, help individuals make short and long-term decisions about how they should spend or invest their money.

Here are some key roles and responsibilities in corporate accounting:

These roles require a strong foundation in accounting and finance, and a bachelor's degree can provide a solid foundation for preparing for these roles.

As an internal auditor, you'll have the opportunity to bring a fresh perspective to an organization and help them improve their operations. You'll work closely with various departments to identify areas for improvement and implement changes that reduce risk and increase efficiency.

Your day-to-day tasks will involve examining financial records and processes to ensure compliance with regulatory requirements. You'll be responsible for identifying shortfalls or gaps in processes that could put the organization at risk. This might involve investigating instances of fraud or malfeasance.

To be successful in this role, you'll need to have a strong moral compass and be able to remain objective in your assessments. You'll also need to be observant and detail-oriented, as well as analytical and decisive. These skills will serve you well as you work to identify and address areas for improvement within the organization.

Here are some key responsibilities of an internal auditor:

The accounting profession offers a wide range of services to various industries.

Public accounting firms provide audit and assurance services to businesses, ensuring their financial statements are accurate and reliable.

Auditors often specialize in specific industries, such as healthcare or technology, where they have in-depth knowledge of the sector's unique challenges and regulations.

Many accounting professionals also work in private industry, helping companies manage their finances and make informed business decisions.

In addition to traditional accounting services, some professionals focus on forensic accounting, investigating financial crimes and irregularities.

Financial investment is a complex and multifaceted field, but at its core, it's all about helping individuals and organizations make informed decisions about their money. Investment accountants, for instance, work with asset managers and brokers to process investments and provide financial consulting and advice.

To become an investment accountant, you typically need an undergraduate degree in accounting or a related major. A strong knowledge of state and federal regulations is also essential, as investment accountants must maintain investments for their clients in accordance with these regulations.

Financial advisors, on the other hand, help individuals create personalized financial plans to achieve their financial goals. They discuss topics such as investing, insurance, tax strategies, saving, and budgeting with their clients. A four-year degree can qualify you to become a financial advisor, and passing certain exams administered by the Financial Industry Regulatory Authority (FINRA) is also required.

Hedge fund accountants provide accounting services and financial performance analysis to hedge funds, which invest on behalf of high-net-worth individuals and institutional investors. They prepare financial statements, maintain general ledgers, and calculate net asset value. Strong time management skills, clear communication, and adaptability to change are essential for success in this role.

Mutual fund accountants, meanwhile, are responsible for monitoring, evaluating, and reporting investment fund performance. They create standard daily, weekly, or monthly financial statements, and ensure that all financial activities are accurately captured for reporting and tax purposes. A strong ability to distill crucial details from vast data, dedication to accuracy, and strong interpersonal communication are key skills for mutual fund accountants.

Here are some job level and median salary ranges for financial investment professionals:

Tax examiners review federal, state, and local tax returns filed by small businesses and individuals. They determine how much is owed in taxes and collect this tax on behalf of the government.

Tax examiners work for federal, state, and local governments. Many of them work in an office environment.

Tax examiners check tax returns for accuracy and completeness. They review and code tax returns for processing, and list and work to resolve errors.

Tax examiners may discuss issues with taxpayers, such as missing or incorrect information or if they have over or underpaid. They might also do field audits in taxpayers' homes or places of business.

In Audit/Assurance Services, auditors play a crucial role in ensuring the accuracy and reliability of financial records. They examine financial statements and records for accuracy, inspecting budgets and the general ledger to ensure funds are available and expenditures are properly assigned.

Auditors work closely with clients to prepare financial statements and records for federal, state, and internal auditors. This involves meeting strict deadlines and working well under pressure.

To succeed in this field, you'll need to be detail-oriented, a strong problem solver, and able to work well under pressure. A CPA license or Certified Internal Auditor (CIA) certification can also help advance your career.

Here are some key skills required for a career in Audit/Assurance Services:

Tax services are a crucial part of many businesses and individuals' lives. Public accountants in this field provide financial and tax advice to help clients meet their financial goals.

A successful tax accountant is measured by the financial stability and security of their clients. Becoming a Certified Public Accountant (CPA) is essential for advancement, allowing accountants to create audited financial statements and represent clients in front of the IRS during tax audits.

Monitoring clients' financial needs and performance is a key responsibility. This involves keeping track of their financial progress and making adjustments as needed.

Creating budgets and plans for staying on budget is another important task. This helps clients manage their finances effectively and make informed decisions.

Developing strategies to eliminate, minimize, or defer tax payments is also a critical function. This involves using proper regulations to minimize tax liabilities and maximize financial savings.

Here are some key responsibilities of tax accountants: