Accounting Career Overview
Updated September 30, 2024
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Key Takeaways
- Accountants prepare financial statements, analyze records, create budgets, and conduct audits. They need hard skills related to bookkeeping and analysis, plus soft skills such as attention to detail and good communication.
- Optional licenses, like CPA and CMA credentials, can boost salary and career options. These require a bachelor's degree, but a master's degree can help with the CPA exam.
- Accountants earn an average salary of roughly $90,000, but pay varies with licenses, experience, location, and industry. Career paths include staff accountant, financial controller, and tax consultant.
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.
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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:
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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, 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
Figures only tell part of the story when it comes to the salaries accountants earn. For instance, according to the Bureau of Labor Statistics (BLS), all accountants, including CPAs and CMAs, earn an average salary of over $90,000.
Licensure can dramatically impact earning potential. Payscale data from September 2024 cited average base salaries of $99,000 per year for CPAs and $102,000 per year for CMAs. These levels align more closely with accountants at the 75th percentile of the BLS's earning scale.
Salaries tend to rise with experience, and they also depend on factors like location and industry of employment. For example, the BLS reports that accountants working in media distribution earned average salaries 35% higher than the overall average for the profession.
Accountants
Average Annual Salary, 2023
$90,780
Salary by Education
With a bachelor's degree in accounting, you can pursue staff accountant positions and industry licenses. The ability to do this distinguishes accounting from the many fields that require a combination of advanced education and extensive experience to propel professionals to upper earning tiers.
Here are the average base salaries associated with specific accounting degrees and certifications:
A relatively narrow spread separates the average salaries accountants with different degrees earn. A master's degree can sometimes net you only $3,000 more than just a bachelor's degree in accounting.
However, advanced accounting education does offer one key benefit. A detailed 2019 study published by CPA Journal found that CPA exam candidates with master's degrees consistently post much higher pass rates.
As such, you may want to consider a graduate degree if you plan to pursue CPA or CMA licensure.
Read More
Learn more about degree levels in accounting
Learn about top jobs with a bachelor's in accounting
Learn about top jobs with a master's in accounting
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 Employed | Average Annual Salary |
|---|---|---|
| New York | 119,150 | $113,310 |
| District of Columbia | 11,310 | $113,190 |
| New Jersey | 46,860 | $110,700 |
| California | 166,020 | $100,560 |
| Massachusetts | 42,420 | $99,360 |
| Metropolitan Area | Number of Accountants Employed | Average Annual Salary |
|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | 12,870 | $124,070 |
| New York-Newark-Jersey City, NY-NJ-PA | 127,360 | $119,050 |
| San Francisco-Oakland-Hayward, CA | 24,910 | $117,930 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 45,080 | $104,850 |
| Seattle-Tacoma-Bellevue, WA | 23,900 | $102,050 |
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.
Questions About Careers in Accounting
What does an accountant actually do?
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.
What are accountant requirements?
When hiring accountants, employers typically prefer or require at least a bachelor's degree in accounting. You will also need at least a bachelor's degree to sit for the certification exams leading to CPA or CMA licensure. Many employers and exam candidates see additional value in advanced or professional degrees in accounting. Graduate degrees can lead to higher salaries, while examinees with advanced education post higher pass rates on standardized accounting tests.
Where do most accountants work?
Most accountants work in office settings, but many also hold remote positions that allow them to work from home. According to the BLS, nearly one-quarter (23%) of U.S. accountants and auditors are employed by accounting, tax prep, bookkeeping, or payroll service providers.
How much do accountants make?
In May 2023, the BLS reported median salaries of $79,880 per year for accountants and auditors. This figure covers all professionals working under those job titles, not just licensed ones. Payscale data from September 2024 found that CPAs earn average base salaries of $99,000 per year, while CMAs made an average of $102,000 per year.
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