Exploring the World of Accounting Careers: A Beginner’s Guide

Accounting is a popular choice for a major and career, and for good reason. The field offers a wide range of job opportunities and is essential to how businesses and organizations function. Recent accounting scandals have highlighted the importance of accounting in society and increased the demand for professionals in this field.

Why is Accounting So Popular?

• High Demand: The demand for accountants is high, with many students accepting job offers even before graduation. In many cities, the market demand surpasses the number of accountants available.
• Variety of Opportunities: Accounting offers diverse career paths in different sectors.
• Making a Difference: Many people want a career that makes a difference, and accounting provides opportunities to contribute to society.
• Essential for Business: The work of accountants ensures the financial health of a business.

What Can You Do With an Accounting Degree?

An accounting degree can lead to various career paths. Here’s a breakdown of common areas:

Public Accounting: Serving the Public

Public accountants provide specialized support to the public, similar to how doctors serve patients or lawyers serve clients. The main areas in public accounting include:

• Auditing: Certified Public Accountants (CPAs) examine a company’s financial statements and provide an opinion on their accuracy. Think of auditors as financial detectives, ensuring that a company’s financial records are reliable and trustworthy. Investors, analysts, and creditors rely heavily on these audit reports.
• Taxation: Tax professionals analyze tax situations, prepare tax returns, and represent clients with government agencies like the Internal Revenue Service (IRS)3. They are like tax navigators, helping individuals and businesses understand and comply with complex tax laws.
• Management Consulting: This field involves implementing accounting software, offering support for marketing campaigns, and assisting with mergers and acquisitions. Consultants act as financial problem-solvers, helping businesses improve their operations and achieve their goals.
• Business Owners: Many CPAs start their own businesses, often specializing in tax or consulting services.

Private Accounting: Working Within a Company

Instead of serving multiple clients, private accountants work within a specific company, such as Facebook, Google, or PepsiCo. In this role you may be interested in:

• Cost Accounting: Determining the cost of producing specific products. For instance, a cost accountant might calculate how much it costs to make a single can of soda or a particular pair of jeans.
• Budgeting: Creating and managing financial plans for the company5. This involves predicting income and expenses to help the company stay on track.
• Accounting Information Systems: Developing and implementing the systems used to record financial transactions.
• Internal Auditing: Reviewing company operations to ensure compliance with policies and improve efficiency. Internal auditors act as watchdogs within the company, helping to prevent errors and fraud. They are particularly important because of SOX requirements, which place extra importance on the work of internal auditors.

Government Accounting: Serving the Public Sector

Government agencies also employ many accountants. Some of these opportunities include:

• Internal Revenue Service (IRS): Accountants at the IRS ensure that tax laws are followed and that the government collects revenue appropriately.
• Federal Bureau of Investigation (FBI): The FBI hires accountants to work as special agents. The FBI has a goal of CPAs making up at least 15% of its new agents.
• Securities and Exchange Commission (SEC): Accountants at the SEC help to regulate and oversee the securities markets.
• Other Government Roles: Public colleges, universities, and local and state governments all need accounting professionals.

Forensic Accounting: Investigating Financial Crimes

Forensic accounting uses accounting, auditing, and investigative skills to examine financial crimes.

• Fraud Detection: Forensic accountants investigate fraud, theft, and other financial crimes. They might trace money laundering, tax evasion, and other illegal activities.
• Insurance Fraud: Insurance companies hire forensic accountants to detect insurance fraud, such as arson.
• Divorce Cases: Law firms employ forensic accountants to classify assets in divorce cases.
• Government Experience: Forensic accountants often have experience with the FBI, IRS, or similar government agencies.

How Much Can You Earn as an Accountant?

An accountant’s salary depends on several factors. These factors include:

• Experience: As with many professions, more experienced accountants tend to earn more money.
• Education: A higher level of education, such as a master’s degree, can lead to a higher salary.
• CPA Certification: Becoming a Certified Public Accountant (CPA) can significantly increase your earning potential. Typically, earning a CPA increases starting salary by 10%-15%.
• Location: Salaries vary significantly across different regions.
• Company Size: Large companies generally pay more than smaller ones.

Here are some general salary ranges:

Top-level compensation for corporate accounting managers can be significantly higher:

Conclusion

Accounting offers a diverse and rewarding career with many different avenues to explore. Whether you’re interested in auditing, taxation, consulting, or forensic accounting, there’s a place for you in this in-demand profession.

With strong earning potential and many opportunities to contribute to society, a career in accounting can be a great choice.

FAQs of Accounting Careers

You can also read:

• The Qualities of a Good Accountant
• The Best Accounting Job Interview Questions and Answers Ever!
• Top 10 Common Job Interview Questions and Answers
• Why do you choose your career as an accountant?