Online Degrees

Career as an Accountant

The average value of the Bachelor degree needed to become a Accountants and auditors is $1,232,585.00.

Points of Interest

• Entry-level employment requires at minimum a 4-year degree in Accounting or Finance. 
• Additional education and licensing as a CMA (Certified Management Accountant)
• CPA (Certified Public Accountant)
• EA (Enrolled Agent) will produce the best employment outlook. 
• Economic growth will expand opportunities for accountants and auditors to seek employment in all areas of business within the coming decade. 
• Accountants can be self-employed and maintain public or private clients while holding multiple professional licenses.

Nature of the Work

As an Accountant or auditor, the successful management of the entire flow of income in and out of a business requires constant attention. The source documents used by businesses include bills, receipts, vouchers, bank notes, credit memos, and stocks and bonds. These documents are analyzed daily and accurately entered in the accounting system of the business. The transactions listed in source documents are classified and maintained throughout the fiscal accounting cycle. These accurate records are stored and managed to produce consistent financial documents and tax reporting information. Analyzing the accuracy of the accounting information is performed daily by auditors to ensure financial statements meet federal guidelines and illegal accounting activity is not present. Accountants analyze business information and create specific financial documents using research and ratios to provide accurate information to business owners or clients.

There are 4 major divisions of accounting recognized in the modern business industry:

Private Accounting

A private accountant works strictly for a company or series of businesses. They analyze, classify, and enter all transaction information into the company financial record system. Private accountants manage the entire accounting system including taxes, company payroll, income and expenses, and asset equipment depreciation. Private accounting is popular among small businesses that do not have a full-time employee that has the education to oversee and complete the entire accounting cycle and fiscal year-end closing process.

Public Accounting

A CPA or tax preparation firm is typically associated with public accounting. To perform accounting duties for the public, an accountant must seek a state license that requires successful completion of in-depth tests that are created and certified by a board of accountancy. A CPA can design and implement accounting systems for small business, corporate, or financial clients. Under federal law, all income tax payments and documents need to be certified by a CPA before submission to the (IRS) Internal Revenue Service. Public accounting data must meet the requirements and regulations listed in the code of conduct for public accounting. The (GAAP) Generally Accepted Accounting Principles require all data to be factual and presented fairly instead of based on opinions of the financial statement creator.

Government Accounting

Accountants can work for federal, state, or local government authorities. They review, audit, and analyze the financial data used by government agencies, small businesses, or county officials. A government accountant must adhere to the rules and regulations set forth by the (GASB) Government Accounting Standards Board. Much of government accounting is the proper allocation of operating budgets and state or federal income and expenses. Unlike public accounting, profit retention is not a factor in standard government accounting and budget management.

Internal Auditing

Internal auditors are employed by corporations and businesses to survey the accounting practices of the company and individual departments. Through a series of planned internal controls, auditors successfully manage financial information. Important data is recorded and stored properly creating an electronic or paper trail to certify the actuality of source documents and financial statements. Auditors make sure the company accounting procedures adhere to federal, state, and government regulations.

Training, Other Qualifications, and Advancement

A 4-year degree in a specialization such as accounting or finance is required to begin a career as an accountant. Many beginning accountants and auditors seek additional licenses or continuing education options within the first 2 years of employment to further their accounting careers. Additional certification options are as a Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Internal Auditor (CIA), or Enrolled Agent (EA). These popular licenses can expand the salaries of accountants and auditors and provide additional taxation accounting options in public accounting with corporations, small businesses, and specialized agencies.

• CPA Requirements A state test that is monitored by an approved testing center is required for all potential CPA candidates. The intensive test includes 4 major areas of public accounting and all test requirements must be completed within a predetermined time period. In most states, a continuing education requirement of 150 semester credit hours are required before attempting the CPA test. This requirement is approximately 30 semester hours above the standard requirements for a 4-year degree and is the identical to the requirements of graduate degree. Additional education is required to maintain the CPA status by completing state required continuing education requirements.

• CMA Requirements Membership into the Institute of Management Accountants and completion of a specialized test that is administered by a recognized testing center is required for licensing of a CMA designation. The 4-part test analyzes the main areas of accounting management, budgeting, and financial planning. After successful completion of each test, a license will be issued. Additional educational requirements are required annually for the license to remain valid. Approximately 30 CPE units of continuing professional education must be completed at accredited institutions or recognized industry workshops.

• CIA Requirements A 4-year degree from an accredited college or university is required before seeking a CIA certification. A character reference must be written and signed by a third party that contains a valid CIA certification to verify the moral character and ethics of each applicant. A minimum of 2 years experience as an internal auditor is required with validating proof from a previous or current employer. A computerized test must be completed at an approved testing center before final applications for certification are considered. Upon successful receipt of the CIA certification, a certified CIA must self certify their continuing education by completing a minimum of 80 CPE units of continuing professional education every 2 years.

• EA Requirements A 4-year degree is recommended in accounting or related business field before seeking an EA license. The nature of this license prohibits a disbarred CPA from obtaining a license. A background check must be completed after the initial application for a license to be considered. This ensures that fraud or criminal activity will not take place involving the calculation or manipulation of income taxes. After review, an applicant must complete and submit an application to take the (SEE) Special Enrollment Examination. After successful completion of each section, the applicant must file an IRS form #23 with their state or city branch of the IRS. This allows successful applicants to represent taxpayers and file tax returns on behalf of a third party, business, or agency. Current EA license holders are required to complete approximately 72 CPE units of continuing professional education every 3 years. A minimum of 16 CPE units must be completed annually for professional skills maintenance.

Additional Skills Required

The advancements in computer and digital technologies have created a stronger demand for knowledgeable accountants and auditing skills. The training and previous experience of using powerful computer software is now a requirement for entry-level positions in all aspects of accounting and management. Modern computer programs are built with strong algorithms that can be used to protect against user error or fraudulent data manipulation. Many accounting firms require special access passwords to research or enter data into the accounting system. Employee fraud and financial misappropriation are major security concerns for accounting and auditing firms. All employees must be trusted to use company resources and financial information for the betterment of the company.

Employment

Gaining employment as an accountant or auditor with a 4-year degree has many long-term career opportunities salary growth potential. The average person entering into an accounting related field begins their career performing daily duties without major responsibilities for a private firm, corporation, or government organization. After earning further experience with daily accounting, month or fiscal year-end closing duties, and taxation many professionals advance into department manager roles or are assigned more disciplined work and responsibilities.

According to the national average, approximately 20% of accountants and auditors are self-employed or work from a home office. The ability to create customized working hours and build personal relationships with business owners is an attractive option to self-employable accountants. The self-employed accountant may realize the flexibility in their daily schedule, but typically lack bonuses and special salaried packages that could be received by standard employment for an accounting firm or corporation.

Working Conditions

Accountants and auditors work in large and small office buildings and may commute during peak traffic times. Professional business attire is a requirement when working for most companies due to the public nature of having face-to-face meetings and traveling on behalf of the company. Accountants use approximately 2/3rds of each day to review financial information for clients or analyzing business trends. Financial statements are examined and corrected to reflect new or updated information pertaining to the financial health of each client or business. The use of specialized computer software and hardware are used along with high-speed Internet access. Many accountants choose to work split shifts between their home and the office. The technological advancements of telecommuting have increased the desire for many accountants and auditors to interact with clients from their home or alternate location.

Job Outlook

Economic expansion and recovery in slower markets will increase the demand for trained accountants and auditors within the next decade. The growth is expected to accelerate at a faster pace versus standard occupations in business or management. Market growth in the business sector will create job openings for accountants and auditors at rate above 20%. New business owners that create growth in new industries will need trained professionals to accurately design accounting systems and evaluate financial information for their business. As businesses explore global markets, the need will increase for educated individuals that posses accounting and auditing knowledge. Businesses that establish foreign offices and investments will benefit from accurate accounting techniques in determining their net profits apart from correctly calculating changing currency exchange markets.

Growing economic activities create increased risks of fraud in the global business industries. Accountants and auditors are required to analyze documents and investment expenses for errors or suspected fraudulent activities by management or business personnel. Greater internal controls and tighter financial management will be required to address the growing potential of business or securities fraud.

Job Availability

Accounting and auditing professionals with a 4-year degree and additional licensing or training will be presented with the best job availabilities. As technology expands, businesses require increased training in new technologies and the education required to understand complex financial investments or decisions during the planning stages of investing and expanding market reach. Job seekers that are experienced in accounting and auditing techniques or that showcase a high level of expertise in mathematics will increase their chances of employment success. Professionals that hold additional licensing such as a CPA, CMA, CIA, or EA licenses will find the majority of open positions available to them can be filled without great effort. The level of education and communication required to hold advanced licenses is an attractive element to potential employers.

Trained accounting and auditing professionals that leave their current employment due to retirement or downsizing will create increased opportunities for entry-level accountants and auditors. These exiting employees need to be replaced quickly by trained individuals that can exceed company expectations. Educated accounting and auditing employees are a major asset to accounting firms, banks, financial institutions, and sales or merchandising corporations

Projections

Expected growth in the next decade will reveal nearly 300,000 new accounting and auditing jobs for an increase of over 20%. Businesses will require knowledgeable accounting and auditing personnel to accurately trace income and expenses for their company. Jobs in the banking, financial, insurance, small business, and corporate sectors will see advanced growth and expansion for accounting and auditing positions. Increased consumer spending and investing will create the need for specialized accounting functions utilizing traditional and digital technologies. Jobs will increase outside of the standard financial sectors with the expansion of entrepreneurs that create new market opportunities and forge new business relationships and mergers. Market expansion in housing and construction create new opportunities for accounting professionals. New job seekers will require the accuracy of real estate accounting and taxation procedures.

Earnings

Accounting and auditing salaries are among the fastest rising compared with the national average of standard occupations. Annual salaries for trained accountants can extend well above $100,000 per year. The breakdown for each division of accounting and auditing is as follows:

• Accountant, CPA, Tax Preparation & Representation: $61,480 
• Accounting Clerk, Bookkeeper, Auditing Clerk, Payroll Coordinator: $34,100 
• State Government Accountant or Auditor: $51,250 
• Local Government Accountant or Auditor: $53,660

According to the National Association of Colleges and Employers, entry-level employment that involved new job seekers with a 4-year degree had average median starting salaries of $48,993. This data includes employment from the most well known accounting firms and insurance companies. Top-level management accountants and auditors may receive additional compensation and benefits including a company owned automobile or quarterly bonus paychecks based on service quotas and high internal controls percentages.

Wages

The national average of wages and salary information can be affected by multiple factors. The size, location, and market stability of a company or corporation will affect the total compensation paid to accountants and auditors. Standard occupational totals can include financial data that is calculated to include PTO (Paid Time Off), sick leave, vacation, or health and medical benefits. Current national estimates calculate a median annual salary of $60,340 for accountants and auditors that earn an hourly wage of $29.01 per normal working hour. This total is based upon 40 working hours each week for approximately 52 weeks each year. A total of 2,080 working hours are used to calculate this total. The total calculation does not include such factors as extra working time paid for hours in excess of 40 due to seasonal overtime during the tax period of January 15th to April 15th. Special projects or coordinated consulting duties are not figured into this calculated data, as each instance is unique to each employer.

The lower wage bracket representing the 25th percentile in the national average earned $46,740 during the previous year. The approximate hourly wage based upon a 52-week working period using the maximum of 2080 working hours was $22.47 per hour. This data represents such factors as economic conditions or statewide averages of comparable salaries for accountants and auditors working in low-cost living areas.

The highest wage bracket representing the top 90% of salaries surveyed in the national average earned $104,450 during the previous year. This data includes accountants and auditors working for the largest companies used for the national survey and can include company stock and bond disbursements that affect the annual total salary.

Salary Increases

Accountants or auditors that pursue further educational training and licensing will earn a higher annual salary. Typical packages include full health insurance coverage, stock options, retirement pension plan or 401(k) matching. The addition of a Master's degree leading to a CPA certification provides one of the fastest routes to a higher salary. Additional compensation can be paid for consulting work performed during special projects or installations of designed accounting or internal controls systems for company clients. Personal speaking engagements at universities and technical colleges or conferences can provide additional sources of income to qualified accounting or auditing professionals.

Related Occupations

The management of income, expenses, and taxation are designed for knowledgeable accountants and auditors. The design and implementation of accounting systems and fraud deterrents are important concerns and considered valuable traits by employers. Many additional occupations can easily benefit from accounting and auditing knowledge.

• Certified Bookkeeper (CP, CPB) 
• Budget Analyst 
• Controller 
• Certified Payroll Professional (CPP) 
• Financial Planner (CFP) 
• Operations Manager 
• Financial Analyst 
• Job Costing Specialist 
• Credit Authorization Clerk

Sources of Additional Information 

Learning entry-level business skills or advanced accounting techniques are included within many university or college degree programs. The best curriculum is one that is reviewed by a regional accrediting agency or an accrediting agency recognized by the U.S. Department of Education. An accredited college degree is a prerequisite for accounting and auditing employment. Job seekers should research their granted degree for accreditation recognition by one of the recognized U.S. agencies before seeking entry-level employment in the public or private sector.

The following is a listing of the most recognized U.S. accrediting agencies:

• Accrediting Commission of Career Schools and Colleges: (www.accsc.org) 
• Accrediting Council for Continuing Education and Training: (www.accet.org) 
• Accrediting Council for Independent Colleges and Schools: (www.acics.org) 
• Distance Education and Training Council, Accrediting Commission: (www.detc.org) 
• Middle States Commission on Higher Education: (www.msche.org) 
• Middle States Commission on Secondary Schools: (www.css-msa.org)
• North Central Association of Colleges and Schools: (www.ncahigherlearningcommission.org) 
• Northwest Commission on Colleges and Universities: (www.nwccu.org) 
• Southern Association of Colleges and Schools, Commission on Colleges: (www.sacscoc.org) 
• Western Association of Schools and Colleges: (www.wascweb.org)

Information on obtaining a CPA license or professional organizational membership can be found at the following institutions:

• American Institute of Certified Public Accountants: (www.aicpa.org) 
• The CPA Exam: (www.cpa-exam.org) 
• National Association of State Boards of Accountancy: (www.nasba.org) 
• Association of Local CPAs: (www.alcpas.org) 
• Prometric CPA Testing Center: (www.prometric.com/CPA)

Information on obtaining a CMA license, CIA license for auditors, or professional organizational membership can be found at the following institutions:

• Institute of Management Accountants: (www.imanet.org) 
• The Institute of Internal Auditors: (www.theiia.org) 
• Certified Information Systems Auditor: (www.isaca.org)

Information on obtaining a EA license or professional organizational membership can be found at the following institutions:

• Internal Revenue Service: (www.irs.gov/taxpros/agents)
• Prometric EA Testing Center: (www.prometric.com/IRS) 
• National Association of Enrolled Agents: (www.naea.org)

Information on obtaining a CPB license, CB certification, or professional organizational membership can be found at the following institutions:

• National Bookkeepers Association: (www.nationalba.org) 
• American Institute of Professional Bookkepers: (www.aipb.org) 
• American Payroll Association: (americanpayroll.org)

Related Jobs

People with the educational background, skills, and desire to become a Accountants and auditors might be well suited to work in one of the following fields as well:

• Tax examiners, collectors, and revenue agents
• Financial examiners