Starting a career in accounting is a smart choice - with forecasts for significant growth in the industry, a high median salary, and a demand for qualified accounting professionals, the time has never been better to join the field. However, once you've decided that you're going to pursue an accounting career, you'll quickly find that the field is much larger and more diverse than you might have thought, with opportunities to apply your skills in a number of different areas.
If you're unsure of what you can do with a degree in accounting, read on to discover how to choose the perfect accounting career path for you.
Learning About the Various Career Fields in Accounting
While most people think about accounting as one homogenous
industry, the reality is, there is no one set accounting career path. There are
a number of different fields of accounting that you can pursue, each with its
own area of
focus and specialization. While almost all accounting careers will require
a basis of fundamental technical
accounting skills and capabilities, from there, you can go in any
number of directions based on your interests. Here are just a few of the career
fields in accounting that might be available to you.
Public Accountant
If you've obtained, or plan to obtain, a CPA certification,
you are eligible to work at a public accounting firm. A public accounting firm
generally provides auditing, tax, consulting, and accounting services for a
number of clients across a range of sectors, including businesses, individuals,
nonprofits, and governments. A job in public accounting will give you
experience in many different facets of the accounting field, from the
preparation and review of financial statements to analyzing budgets to tax work
to consulting and advice on a range of financial issues.
Tax Accountant
As the name suggests, a tax account focuses solely on
tax-related accounting work, preparing quarterly and annual tax returns (local,
state, and federal) for individuals and companies.
Forensic Accountant
Forensic accountants examine companies' financial statements
and provide analysis for legal cases, investigating crimes such as embezzlement
or fraud.
Financial Accountant
Financial accountants work for a single organization or
business, preparing reports that assess fiscal performance (for example, profit
and loss statements, balance sheets, and cash flow statements) for
stockholders, creditors, and taxing agencies - essentially, individuals
external to the company.
Managerial Accountant
Managerial accountants perform similar work to financial
accountants, but focus on internal stakeholders - they prepare reports for
internal review, to help businesses plan, budget, and improve performance.
Financial Planner
Some accounting professionals choose to work for financial
planning firms, or as independent financial consultants. Financial planners
assist individuals with their finances, from budgeting to taxes to investing.
Internal Auditor
In large corporations, internal auditors ensure that
resources are being used effectively, that the company is in compliance with
all state and federal requirements, and funds are not being mismanaged.
Government Accountant
Government accountants work in the public sector, managing financial information for all levels of the government - local, state, or federal. Their focus is often the management of funds, whether it is being collected and spent according to appropriate laws.
Accounting Career Path Planning
Now that you have a sense of some of your career options in
the accounting field, it's time to decide which direction you want to go in.
While most accounting positions will
require the same general skillset - which typically includes being analytical,
being good with numbers, and being able to interpret data, among other key
competencies - each accounting career path will require a slightly different
set of skills and training. Here
are some of the things you'll want to consider.
What Level of Education Do You Have (Or Are You Prepared
to Obtain)?
Most professional accounting jobs require a bachelor's degree. If you've completed an associate
degree, you may want to consider enrolling in a bachelor's in accounting
program to obtain the additional credential, which can make a big difference
when being considered for a new role. While most accounting jobs do not necessarily
require a master's degree, if you are planning on sitting for the CPA, you will
need 150 college credit hours in order to take the exam (most bachelor's
programs are 120 credits, meaning you will need to complete an additional 30).
These credits do not have to all be in the accounting field, and can be at
either the graduate or undergraduate level. Some people choose to fulfill this
requirement by completing an accounting certificate or a master's degree in
accounting (depending on the number of credits they have to finish in order to
reach the 150 hour minimum). Some people also take this opportunity to explore
a new subject area and will pursue an MBA or
a certificate in a related field.
Do You Want to Sit for the CPA?
This is a key question to consider when you're beginning to
think about your accounting career path. While sitting for the CPA can lead to
increased job prospects and opportunities in new sectors, it also requires a
lot of time, resources, and effort - and isn't necessary for many accounting
jobs. Spend some time carefully thinking about your goals to ensure that if you
undertake this challenge, you're using your time wisely.
What Kind of Company Do You Want to Work For?
Accountants are needed in almost every type of business,
from small to large, across all sectors. That means that it's up to you to
decide where you think you'll fit best. Think about your goals: do you want to
work for a consulting firm, where you'll have a number of clients, or would you
prefer to be on the accounting team in a private company or nonprofit
organization? Your interest in specific account fields will also dictate the
types of businesses you can work for - if you're interested in internal
auditing, chances are you'll need to look at larger corporations. If you're an
independent worker, perhaps you'd do well as financial consultant.
What Kind of Work Environment Do You Thrive In?
Depending on the type of accounting you do, your work environment can vary significantly. Some kinds of accounting, such as managerial accounting, have a fairly consistent pace, where your work will be very similar from day to day. Other types of accounting, particularly tax accounting, will have very busy periods (notably around tax season, in the early spring) and then have much slower periods. Think about what kind of work environment you enjoy - do you work well under pressure? Do you need variety to stay engaged? This can help inform your decision.