More than 1.4 million people work as accountants in the United States, according to the U.S. Bureau of Labor Statistics (BLS), and that number is expected to grow 6% in the coming years.* For professionals who possess the right combination of skills and education, accounting offers a wide variety of career paths and opportunities. That’s because accounting plays a major role in every business, government agency and nonprofit organization.
Accountant Profile
Accountants create, manage, maintain, report and inspect financial records. They take on the complex work of keeping those records accurate. In addition to the technical skills of the job, accountants also require integrity, since they deal with large amounts of money and help create important financial reports. They also need strong communication skills to explain complex financial concepts to clients.
Accountants may have many different jobs. They can specialize in accounting for specific industries, public accounting and forensic accounting, to name a few options.
What Do Accountants Do?
Job duties vary by employer, although accountants typically are responsible for ensuring the accuracy of financial and tax records for individuals and firms. They make sure taxes are filed and paid on time, reports are up to date and statements provide a clear financial picture.
Another common duty is analyzing reports to determine profitability or identifying areas of concern. Accountants may advise management on ways to cut expenses, improve productivity and boost profitability. They also create new accounting procedures to improve consistency and accuracy.
Accountants often work with other departments to ensure they receive and understand important financial information, follow billing procedures correctly and keep cost centers on budget.
What Is the Job Outlook For Accountants (Including Accountant Salary)?
The accounting career outlook is positive. Stronger laws and regulations, particularly in the financial sector, will boost demand, along with the continued growth and globalization of the economy.
The average salary for accountants and auditors in May 2019 was $71,550.
Employment prospects and salary ranges typically vary based on an individual’s work history and educational qualifications, as well as on regional market conditions. Those who earn certifications such as Certified Public Accountant or a graduate degree may put themselves into position for jobs with higher earning potential.
What Is the Job Environment Like for Accountants?
Accountants typically work in offices, although some may work out of their homes. While most accounting tasks are done alone, accountants who are employed by large companies or government agencies often work as part of a team.
Industries with the highest level of employment for accountants are as follows, according to the BLS.
- Accounting, tax preparation, bookkeeping and payroll services
- Finance and insurance
- Government
- Management of companies and enterprises
- Self-employment
Is Accounting a Good Career?
As noted by U.S. News and World Report, which ranks accounting among the best jobs in business, accountants make a good living and have plenty of job security. They wrote: “After all, as long as people make money, they’ll need other people to handle it for them.”
The accounting career outlook is typically tied to overall growth in the economy, according to the BLS. The increasingly global nature of the economy also is leading to the need for more accountants with expertise in international trade and accounting rules.
Accountants also have a variety of potential career paths. From entry-level positions such as cost accounting manager or junior-level auditor, they may advance to managerial roles such as accounting supervisor, budget manager, chief cost accountant or chief financial officer.
Some accountants open their own firms; others may become financial planners or compliance managers.
What Are The Qualifications To Be An Accountant?
Successful accountants have a combination of skills. The most important, according to the BLS, are:
- Analytical skills: The ability to find issues in financial records and suggest solutions
- Communication skills: The ability to communicate facts to clients, managers and executives
- Detail orientation: Accounting requires a large amount of detailed-oriented work with numbers
- Organizational skills: With the complex nature of their work, accountants require strong time management and organizational skills
How Can You Become an Accountant?
To land an entry-level position, individuals generally must graduate with a bachelor’s degree in accounting or a related discipline. Some employers prefer to hire candidates with a Master of Business Administration (MBA) or a master’s degree in accounting.
Licensure requirements for CPAs vary, although most states mandate a minimum level of college coursework (usually about 30 hours more than a bachelor’s degree) and work experience. In addition to meeting state requirements, CPA candidates must pass a four-part test developed by the American Institute of CPAs (AICPA).
CPAs typically can earn a higher income over the course of their career, the BLS notes. Plus, the designation demonstrates a higher level of capabilities, expertise and professional ethics, which employers may find attractive.