(ThyBlackMan.com) Accountants are responsible for many things, including paying bills, handling payroll, and tracking revenue and expenses. Nearly every successful business will rely on the services of an accountant to help them prepare balance sheets, profit and loss statements, and other financial reports. The variety of jobs required by an accountant means that they must be highly skilled and have a good understanding of complex financial concepts. The very fact that they deal with important financial information and provide a valuable service to companies of all sizes means that their salary can often be quite lucrative. This also means the demand for accountants is high, and growth in this sector is expected to be much higher than other occupations. If you are looking to become an accountant, it pays to look deeper into what it involves and how much money you can realistically expect to make.
What Are the Main Fields?
The average salary for an accountant will depend on the field they choose to work in. The four main fields are public accounting, internal auditing, account management, and government accounting.
- Public Accounting – This is the largest of the accounting fields. Public accountants provide accounting, tax, consulting, and auditing services for individuals, corporations, governments, and non-profit organizations. The median salary for a public accountant according to PayScale is $66,120, and this rises if you specialize in tax compliance and consulting.
- Internal Auditing – An internal auditor usually does a substantial amount of detective work. They are employed to examine the internal controls of a company and perform investigations to detect any signs of fraud, mismanagement, and inaccuracies. The median salary for an internal auditor is around $58,000.
- Account Management – A management accountant is responsible for providing information and analyses to company executives regarding important decisions that need to be made. This information is usually used by the executives to prepare important financial reports that need to be distributed to shareholders, creditors, the IRS, and other regulatory bodies. The median salary for a management accountant is around $69,000.
- Government Accounting – A government accountant, as the name implies, is employed by local, state, and federal governments. They will handle government bookkeeping as well as auditing businesses and individuals to make sure they comply with government regulations. The median salary for a government accountant in the US is again around $69,000.
Other Career Paths in Accounting
Of course, there are many other fields that may interest you, and some of them include the following:
- Forensic Accounting – A forensic accountant deals with cases of financial fraud, breaches of contracts, and professional negligence claims among other things. As companies lose a large amount of money each year due to financial fraud, forensic accountants are in high demand. The average salary is $79,000.
- Trustee in Bankruptcy – A bankruptcy trustee plays an important role in bankruptcy cases, and they are appointed by the United States Department of Justice. They will gather a debtor’s non-exempt property, manage their funds, and distribute anything that is owed to creditors. The median salary for a bankruptcy trustee can be in excess of $89,000.
- Environmental Accounting – Environmental accountants help to analyze the costs of a company’s environmental impact and the regulations they must comply with. They highlight both the benefits of eco-friendly practices and the costs of resource degradation and pollution. The average salary is around $68,000.
How Do You Get into Accounting?
If becoming an accountant appeals to you, you will need to study a bachelor’s degree in accounting, finance, or any other similar subject. At this point, it can be wise to choose an area to specialize in; almost all accountants specialize in at least one area of practice. You can choose between public accounting and corporate/business accounting, which is then further divided into sub-categories of taxes, managerial accounting, internal auditing, and environmental accounting.
It also pays to learn the difference between a Certified Public Accountant and a public accountant in order to choose a career path that is best suited to your future aspirations:
- Public Accountants – Public accountants typically work in the accounts department of a company. They do not have the same qualifications that are required of a Certified Public Accountant and are therefore limited to performing certain tasks.
- Certified Public Accountants – A Certified Public Accountant must pass the CPA exam after obtaining their bachelor’s. They must also work for a certain number of hours alongside a licensed CPA. A CPA will perform the same tasks as a public accountant, but they can also take on audits, IRS related issues, and even represent clients.
Skills Required
As well as a degree and other essential credentials, it is important to possess the right skillset. You must have a high attention to detail, be proficient in most accounting software, and possess strong communication skills in order to share your findings and analyses. In addition, you must be a good team player, highly organized, and able to focus in high stress settings.
Continuing Your Education
Once qualified, it pays to consider ways to further expand your career opportunities and stand out from the crowd when it comes to putting together your resume. For example, you could look into completing a master’s degree in accounting in order to remain up to date with the different challenges facing accountants today. Once you land an accounting role, it is possible to continue your education alongside your daytime role if you look into online courses. For example, the online MSA programs from Suffolk University are designed to prepare you for more than just the CPA exam. Earning a master’s degree can see you earning over 9% more than graduates over a lifetime. Also, the more years of experience you have, the more you will earn. For example, an accountant with under two years of experience will earn a starting salary of $36,000, which rises to $63,000 with up to eight years of experience.
So, before deciding whether an accounting role is right for you, look into the different fields and the salary earning potential.
Staff Writer; Ron Brown