What Is an Accountant?
Accounting.com is committed to delivering content that is objective and actionable. To that end, we have built a network of industry professionals across higher education to review our content and ensure we are providing the most helpful information to our readers.
Drawing on their firsthand industry expertise, our Integrity Network members serve as an additional step in our editing process, helping us confirm our content is accurate and up to date. These contributors:
- Suggest changes to inaccurate or misleading information.
- Provide specific, corrective feedback.
- Identify critical information that writers may have missed.
Integrity Network members typically work full time in their industry profession and review content for Accounting.com as a side project. All Integrity Network members are paid members of the Red Ventures Education Integrity Network.
Key Takeaways
- Accountants record and analyze financial transactions, which requires strong attention to detail and analytical skills. Career paths include taxation, auditing, budgeting, and financial advisory services.
- Earning a bachelor’s degree is essential for most accounting roles and licensure, while CPA and CMA certifications or advanced degrees open doors to higher-paying, specialized career opportunities.
- Accountants enjoy steady demand and earn a median annual salary of nearly $82,000. Pay varies based on education, specialization, and location, making accounting a versatile and financially rewarding profession.
Tax laws and regulations require private and public organizations to track and record all financial transactions. Accountants are responsible for creating and maintaining these financial records. They usually work in office settings alongside other accountants or finance and management personnel. Accountants must be detail-oriented and have strong analytical skills.
Accountants can pursue optional licenses, including the certified public accountant (CPA) and certified management accountant (CMA) designations. To become eligible to sit for the CPA or CMA exam, you need at least a bachelor’s degree along with additional required coursework. Many CPAs and CMAs have additional accounting degrees and graduate certificates.
Discover various accounting careers, along with job duties, skills, and average salaries.
Accountant Duties
Accountants have various responsibilities depending on their focus area. Some prepare corporate tax returns, while others partner with law enforcement to investigate financial crimes. However, an accountant’s typical duties include creating and reviewing financial documents. Here are five key job tasks for accountants:
Prepare Financial Statements
Accountants create tax filings, earnings reports, and other financial statements for corporations, individuals, and other clients. These financial statements must follow generally accepted accounting principles (GAAP).
Evaluate Accounting Strategies
Drawing on their expertise, accountants assess an organization’s financial operations and accounting procedures to identify risks and recommend improvements.
Analyze Financial Records
Strong analytical skills help accountants review records for inaccuracies and errors. Forensic accountants review records for evidence of fraud, while management accountants identify areas to improve efficiency.
Prepare Budgets
Management and financial accountants play an important role in the budgeting process by preparing budgets, tracking spending, and recommending changes for future budgeting cycles.
Conduct Audits
Accountants may conduct audits to evaluate an organization’s financial health, tax forms, or financial statements. Auditing represents a critical job task for accountants.
Key Hard Skills for Accountants
- Bookkeeping: Entry-level accounting careers require an understanding of bookkeeping, payroll management, and other basic accounting tasks. This skill also includes meeting reporting and filing deadlines.
- GAAP: GAAP refers to the accounting rules that businesses must use to meet federal requirements. Accountants need proficiency in these principles to work in the field.
- Accounting Software: Accountants rely on specialized software and tools to complete their tasks with accuracy and efficiency. Accounting programs train students in the most important tools, including Intuit QuickBooks, Statistical Analysis Software, and Microsoft Excel.
- Financial Analysis: In any specialization, accountants draw on their ability to interpret financial information, forecast trends, and recommend strategies based on financial analysis. During an accounting degree program, learners strengthen this critical skill.
Key Soft Skills for Accountants
- Attention to Detail: Accountants pay close attention to financial documents down to the decimal point. Strong attention to detail benefits those in accounting careers, because accuracy is one of the most important tasks of an accountant.
- Problem-Solving: When forecasting financial trends, putting together a budget, or managing complex tax filings, accountants use their problem-solving skills to address and resolve accounting issues.
- Communication: Most accountants work directly with clients, fellow accountants, or other financial professionals. As a result, careers in this field require strong communication skills, particularly when communicating complex financial information to non-specialists.
- Organization: Accountants often manage multiple tasks simultaneously, frequently working on tight deadlines. Strong time management and organizational skills help accountants stay on top of their responsibilities.
Accountant Salary and Career Outlook
According to the Bureau of Labor Statistics (BLS), accountants and auditors earned annual median wages of $81,680 as of May 2024. Several factors can raise or lower your actual salary, including where you live, how much experience you possess, your level of education, and whether you specialize in a particular area of the field.Pursuing accounting as a career could make sense if you want an above-average salary with the opportunity to earn more with a higher degree or a specialization. Companies across sectors rely on accountants to perform critical tasks, making this an in-demand job.
Accountants
Median Annual Salary, 2024
$81,680
Salary by Education
Your level of education in accounting directly impacts your earning potential, as the table below demonstrates. Earning a bachelor’s degree, for instance, can raise your average annual salary by more than $20,000 from an associate degree salary. That said, the jump is less pronounced moving from a bachelor’s degree to a master’s degree. When reviewing this data, remember that it doesn’t represent solely accountants but all respondents who hold the degree.
| Education Level | Average Annual Salary |
|---|---|
| Associate of Applied Science (AAS), Accounting | $57,000 |
| Bachelor of Accountancy (BAcc) | $80,000 |
| Master of Accounting (MAcc) | $83,000 |
| Master of Business Administration (MBA), Accounting | $86,000 |
It’s clear that holding at least a bachelor’s degree in accounting can substantially increase how much you make. Higher degrees open doors to more senior-level roles, higher wages, and the opportunity to take on leadership positions. That said, higher education often comes with a hefty price tag and requires years of studious dedication to complete. Before diving into a degree program, consider what’s best for you and your goals.
Salary by Location
Multiple location-based factors impact accountants’ salaries. Key examples include:
- Local Labor Market Dynamics. Salaries tend to face downward pressure when an excess of qualified accounting professionals work in a concentrated area. The opposite typically happens under shortages.
- Cost of Living and Quality of Life. Businesses typically tie their salary offers to local living costs. Salaries tend to rise alongside the local cost of living and decline in less expensive or desirable destinations.
- Rural Versus Urban Locations. Major cities usually have more expensive living costs than smaller urban areas and rural locations. They also tend to attract highly qualified job candidates, prompting employers to compete for talent. These factors typically function to push accounting salaries higher.
Consider these dynamics as you choose a state for your accounting career. The tables below will guide you to some of the country’s top-paying locations for accountants:
| State | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| District of Columbia | 9,600 | $116,580 |
| New York | 111,860 | $115,490 |
| New Jersey | 43,540 | $113,110 |
| California | 173,370 | $104,710 |
| Massachusetts | 45,520 | $102,030 |
| Metropolitan Area | Number of Accountants and Auditors Employed | Average Annual Salary |
|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | 13,410 | $128,730 |
| New York-Newark-Jersey City, NY-NJ-PA | 114,300 | $121,970 |
| San Francisco-Oakland-Hayward, CA | 26,600 | $119,870 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 42,320 | $108,670 |
| Seattle-Tacoma-Bellevue, WA | 24,880 | $106,100 |
Explore Accounting Careers
Many accounting program graduates pursue licensure-track careers as CPAs or CMAs. Some use their credentials to seek employment in specific fields or industries.
Consider these career profiles as you seek to identify a professional accounting path to follow:
- Accounting Assistant: Accounting assistants help maintain accounts, enter data, and interact with customers. They can enter the field and gain experience with little education. Still, some employers prefer an associate degree.
- Accounting Clerk: An entry-level role, accounting clerks conduct data entry tasks and verify calculations. They usually need some education in accounting, but they also receive on-the-job training.
- Accounting Manager: Accounting managers oversee departments or teams of accountants. They ensure that their organization adheres to regulations. They also plan budgets and make suggestions for improved efficiency.
- Actuary: Typically working for finance and insurance companies, actuaries calculate financial risk using probability models. They usually hold a degree in math or statistics, plus industry-accepted credentials.
- Bookkeeper: Responsible for managing their companies’ general ledger, bookkeepers perform transaction data entry. They may also compile reports, administer payroll, and handle invoicing.
- Budget Analyst: Employers need budget analysts to assess future projects’ financial viability, report on overall financial health, and reallocate spending where necessary.
- Certified Public Accountant: A certified public accountant, or CPA, deals with public financial documents such as tax filings. They deal with official company reports to investors, clients, and the Securities and Exchange Commission.
- Chief Financial Officer: Chief financial officers lead corporate finance and accounting departments. This high-profile C-suite role involves executive oversight of a company’s financial practices, strategies, policies, and planning.
- Chief Investment Officer: These top executives manage corporate investment portfolios. They apply deep market knowledge and risk management insights to optimize returns on invested funds.
- Compliance Officer: Compliance officers ensure their companies follow the law when it comes to financial records. These professionals monitor issues like safety standards. They may also assess potential risk.
- Comptroller: An executive position, a comptroller supervises all financial operations for public organizations. This can include government offices, nonprofit groups, and businesses.
- Cost Accountant: While responsibilities vary depending on the company, cost accountants typically prepare budgets and purchasing documents. They plan for and handle tasks related to operational spending.
- External Auditor: External auditors perform comprehensive analytical reviews of individual or corporate financial records to ensure they conform to all applicable laws and guidelines. They may examine records in cases of suspected wrongdoing or perform audits by request to ensure organizational financial records meet all regulations.
- Financial Analyst: Financial analysts research and report on investment opportunities for organizations. They forecast potential earnings by considering a company’s financial health and the state of the overall market.
- Financial Controller: A type of financial manager, financial controllers use historical data to forecast their companies’ future success. They may manage accounting departments and budget-related staff.
- Financial Manager: Financial managers track and optimize their employers’ financial health. Their duties cover a combination of investment strategy and management, record-keeping, and financial analytics. Some work for wealthy people rather than businesses.
- Financial Planner: Working for individual clients, financial planners help people to manage long-term financial goals. They deal with estate planning, investments, and retirement funding.
- Forensic Accountant: Forensic accountants analyze financial records for evidence of fraud. They consult in legal matters and may testify in court.
- Hedge Fund Accountant: Working closely with investment professionals, hedge fund accountants deal with mutual funds and hedge funds. They analyze statements and develop strategies for portfolio management.
- Internal Auditor: Internal auditors review their companies’ accounting procedures and adherence to laws and regulations. They also assess financial records for potential areas of growth and increased efficiency.
- Investment Accountant: Investment accountants handle accounting procedures for brokerages. They monitor company and client investments. They also advise company management on financial issues and taxes.
- Operational Accountant: Operational accountants keep a close eye on organizational spending, including labor costs and purchasing. They help to plan ahead and work to cut operational costs.
- Payroll Accountant: Experts in labor policies, payroll accountants ensure that employee compensation adheres to government laws and regulations. They process payments and may administer benefits.
- Real Estate Appraiser: Real estate appraisers evaluate homes and commercial buildings to determine their market value. They visit properties and provide their assessment in writing to the owner.
- Staff Accountant: Typically working as part of a team, staff accountants handle day-to-day accounting tasks for their organizations. Duties can include record-keeping, tax-related work, compliance, and budgeting.
- Tax Accountant: Employed by individuals or corporate clients, tax accountants prepare and submit tax documents. They make sure clients follow all relevant tax laws and maximize their deductions.
- Tax Attorney: Tax attorneys specialize in tax law. They work for organizations and individuals. They make sure clients follow laws and regulations, and they provide expert counsel when tax law issues arise.
- Tax Consultant: Like other tax professionals, tax consultants work with clients to make sure they follow regulations. They help companies and individuals maximize their deductions and properly file their taxes.
- Tax Manager: Usually employed by a single organization, tax managers oversee tax preparation processes. They direct teams of employees and ensure their companies follow relevant legal requirements.
- Tax Preparer: Tax preparers assess financial documents for companies and individuals. They calculate tax obligations or refund amounts and file the necessary paperwork.
Frequently Asked Questions
Accountants track and record financial transactions. They prepare financial documents, statements, and disclosures. Many also provide strategic advisory services on taxation, investing, cash flow management, and other operational areas of organizational finance.
Recommended Reading
Types of Accounting Degrees
Learn about accounting degree levels and concentrations. Explore specialization pathways and identify the option that best matches your career plans.
Updated October 17, 2025
What Is a CPA?
What is a CPA, and is it the right career for you? Learn about day-to-day duties, overall responsibilities, and areas of expertise for certified public accountants.
by Liz Simmons
Updated September 8, 2025
Certified Public Accountant (CPA Certification)
Peruse CPA certification requirements to learn about the education, experience, and exams you need to become a certified public accountant.
Updated May 21, 2025