Accounting is a broad and in–demand career field. Accountants can work for individuals or companies and may specialize in specific areas of finance.
Below, we'll break down everything you need to know about becoming an accountant, including what an accountant does, how much accounting pays, and how to become an accountant.
What is an Accountant?
The job of an accountant is to manage the finances of an individual or business. They also help clients make sound and legal financial decisions.
The overall job duties of an accountant can vary depending on the type of accountant and whether they work for an individual or business.
Some common duties include:
- analyzing financial statements for accuracy and legality
- brainstorming ways to improve profits
- budgeting and tracking expenses
- calculating and filing taxes, as well as ensuring taxes are paid
- going over account books and systems
- maintaining financial records
- preparing and issuing invoices to customers
- processing payroll
- recording and analyzing financial data
Types of Accountants
Most accountants hold a Certified Public Accountant (CPA) license. This license covers a variety of accounting fields, allowing you to specialize in an area that interests you.
Auditor
An auditor reviews a company's accounting process and systems. You can be an internal auditor, working within the company, or an external auditor, working for an auditing company.
Financial Advisor
A financial advisor specializes in helping clients make decisions about their finances, such as decisions about budgeting and investing.
Forensic Accountant
A forensic accountant investigates financial information and records, often for legal cases.
Government Accountant
Government accountants provide accounting services for federal, state, or local government entities.
Investment Accountant
Investment accountants maintain their clients' investment portfolios and advise their clients on investment decisions.
Management Accountant
Management accountants work alongside a company's senior management to help companies perform better financially.
Project Accountant
Project accountants manage the finances for specific projects run by a company.
Tax Examiner
Tax examiners work for government agencies and examine submitted tax returns filed by individuals and small businesses.
Steps to Become an Accountant
To work as an accountant, you'll need a degree and likely need a license. You may need additional certification as well.
We'll break down all the steps below.
Step 1: Earn a Degree
At a minimum, you'll need a bachelor's degree to work as an accountant. Bachelor's degree programs are usually about 120 credits and take about four years to complete.
Schools may offer accounting majors as Bachelor of Science, Bachelor of Arts, or Bachelor of Business Administration degrees.
These programs teach business foundations such as:
- accounting regulations
- accounting tools and technology
- auditing and taxation
- data interpretation
- economics and profitability
- financial analysis
- general accounting principles
Bachelor's degree programs typically don't provide enough credits for students to be eligible for the Uniform Certified Public Accountant exam.
To meet the credit requirement, you have a few options:
- taking additional courses as part of your bachelor's program
- earning a minor or double major
- earning a master's degree
Master's degree programs can vary but usually require at least thirty credits. You may be able to earn a master's degree with a specific accounting concentration.
Concentrations may include:
- auditing
- forensic accounting
- management accounting
- taxation
While a master's degree isn't a requirement to become an accountant, many employers prefer to hire candidates with master's degrees.
Step 2: Gain Experience
In some states, experience is required before you can sit for your CPA exam. Experience also helps you get hired.
You can gain accounting experience through an internship or by securing an entry–level position.
Internships allow you to work under the guidance of licensed accountants and gain hands–on professional experience. They provide an opportunity to network with potential future employers.
Some good places to look for accounting internships and entry–level roles include:
- businesses
- government organizations
- nonprofit organizations
- public accounting firms
Step 3: Become Licensed
In order to file reports with the Securities and Exchange Commission (SEC) or represent clients before the IRS, you must have a CPA license.
The requirements for CPA licensure vary by state, but all states require you to pass a CPA exam with 120 credits and then earn the license once you finish the additional thirty credits.
All states require a total of 150 credits to earn a license. All states also require a certain amount of experience, though the amount of experience varies by state.
Most states also require applicants to take an ethics exam before they can earn their license.
Despite the different state requirements, the Uniform CPA exam is the same for everyone. The exam is developed by the American Institute of Certified Public Accountants (AICPA).
The exam is computer–based and made up of four four–hour sections. Students take one section at a time.
The four sections of the exam are:
- auditing and attestation (AUD)
- business environment and concepts (BEC)
- financial accounting and reporting (FAR)
- regulation (REG)
Students must take all four sections of the exam within an 18–month span.
Step 4: Pursue Additional Certification
To demonstrate additional qualifications or to specialize in a specific area of accounting, you can earn a certification.
There are several professional certifications available for accountants:
- Certified Financial Analyst (CFA)
- Certified Fraud Examiner (CFE)
- Certified Internal Auditor (CIA)
- Certified Management Accountant (CMA)
- Chartered Global Management Accountant (CGMA)
- Enrolled Agent (EA)
- Financial Services Audit Certificate
Accountant Salary and Job Outlook
According to the US Bureau of Labor Statistics (BLS), the average annual salary for accountants in 2021 was $77,250. However, salaries ranged from $47,970 to $128,970.
The BLS projects that job opportunities for accountants will grow six percent between 2021 to 2031.
Become an Accountant Today
Accountants are always in demand, making it an excellent career field. Contact Best Accredited Colleges today to learn more about becoming an accountant.
