People outside of the industry frequently think of accounting as a dull profession, but it can actually be one of the most rewarding, whether you choose to work in the public or private sector. Accounting is essential to the operation of businesses and individuals everywhere. A career in accounting, which is always in demand, can offer a stable income. So, how do you train to be an accountant? We’ll go over how to become an accountant for you in this article. Please keep reading.
What An Accountant Do
A professional with a focus on different facets of personal and business finances is an accountant. Accounting is the measurement and management of financial data that aids managers, business owners, investors, and other people in making wise financial decisions.
The financial performance of a company can be tracked, reported on, and evaluated by an accountant. They can also create financial statements.
Accountants may perform a variety of tasks, including the following:
- Create and send invoices to clients of a business.
- On behalf of a business or individual, prepare and send tax reports to government agencies.
- Bank statement reconciliation
- Analyze your profits and losses.
- Payroll processing and maintenance.
- Make and analyze budgets and expense reports.
- Create and maintain databases for financial information about people and businesses.
Types Of Accountants
Certified Public Accountants (CPAs)
A CPA is a qualified accountant who manages all facets of an organization’s financial operations. They might carry out tasks like tax preparation, audits, financial reviews, and litigation services. They are frequently regarded as a trusted financial advisor.
Auditors
A company or organization may hire an auditor, who is an accountant who conducts audits and records reviews. The duties of an auditor may include evaluating and maintaining financial records, reviewing account books and records, confirming financial statements, and making suggestions for financial improvement. To ensure impartial auditing, numerous auditors from outside the company are hired.
Forensic Accountants
A forensic accountant is a member of the accounting profession who examines and confirms the accuracy of financial records. They might be introduced to an organization to look for fraud, mistakes, or financial inconsistencies. The majority of forensic accountants support investigations or legal cases.
Government Accountant
Accountants are needed in every type of government. In order to analyze and use taxpayer funds as effectively as possible, government accountants may work at the local, state, local government, county, or federal levels.
A government accountant might also assist in developing the government’s annual financial plan. This kind of accountant may also be employed by the IRS and be in charge of auditing both entities and people.
Management Accountant
Management accountants are in charge of assisting business owners and managers in making wise financial decisions for their companies. A management accountant can create business budgets, assess profitability, access risks, and create external financial reports.
These people are also responsible for organizing and explaining a company’s financial aspects in a manner that is simple for others to comprehend.
Cost Accountant
Typically, a cost accountant’s job is to work with a company to streamline its operations so that it can increase profitability. The costs of labor, manufacturing, shipping and other regular business operations may all be examined by this kind of accountant. Cost accountants then suggest ways for businesses to save money using this information.
Staff Accountant
Accounting experts who work as staff for a business or organization are known as staff accountants. The duties of this type of accountant, which is the most prevalent, typically include keeping track of a company’s finances, preparing and analyzing financial statements, reconciling accounts, managing payroll, and performing various bookkeeping duties.
Depending on the size and type of organization for which they work, staff accountants have different responsibilities.
Steps To Becoming An Accountant
There are a few more steps to take in order to complete your journey, but for the majority of students, coursework in a university setting is the first step toward becoming an accountant. Continue reading for an in-depth explanation of how to become an accountant.
Enroll In A Degree Program
You must first obtain your Bachelor of Science in Accounting, regardless of what you intend to do with your career. the first step of learning how to become an accountant. Math classes and tax law lessons are both parts of your accounting degree program. Additionally, you can anticipate taking business-related courses like the following:
- Financial recordkeeping
- Ethics
- Statistics
- Management
- Personal and business tax
- Auditing
- International Finance
Last but not least, you should improve your communication abilities because they will be crucial to building trusting relationships with the people and management teams who will depend on your knowledge.
Students who succeed in accounting programs typically have strong math skills and are organized, analytical, and structured. In order to take the CPA exam or look for entry-level accounting jobs, you must first earn a bachelor’s degree.
Choose Your Career Path
The next step to becoming an accountant is frequently choosing a career path. Any area of accounting, such as managerial accounting, financial accounting, or tax accounting, is open to specialization.
Alternately, you can work toward earning your MBA or becoming a Certified Public Accountant (CPA), which typically calls for more time and continuing education.
- Accountants offer their clients a variety of crucial services. Here are a few illustrations:
- Bookkeeping
- Auditing financial records
- Completing tax returns
- Offering guidance on the most effective uses for the company or personal funds
Most accountants are employed in private offices or on corporate teams. Some work for local, state, or federal governments. For the purpose of reviewing financial records and giving clients unbiased advice locally or throughout a specific region, auditors may travel from company to company throughout the course of the year.
Find An Internship
Many students discover that working at a paid or unpaid internship can provide valuable experience that can pay off in higher wages and increase job opportunities after graduation. It is crucial to act professionally, develop your network, and put forth your best effort every day because an internship may occasionally result in a job offer.
Complete Your Degree
The following step on your path to an accounting career is finishing your degree program and taking any additional coursework that is required. Remember that if you plan to pursue an advanced degree, many universities will require a particular grade point average.
Find A Job
You’ll be equipped with your degree in hand and ready to look for and land an entry-level accounting job. Even while working your first job, you could accrue the extra credits needed to take the CPA exam.
Get Certified
You may opt to obtain one of a number of additional qualifications depending on the specialty field you select. Beyond a degree, certifications can help you stand out in the market and establish your credibility in your field:
- Certified Public Accountants
CPAs, as they are more commonly known, are certified public accountants who must pass a demanding exam and possess in-depth knowledge of the accounting industry. Both representing clients before the Internal Revenue Service and submitting reports to the Securities and Exchange Commission are authorized duties of these specialists.
- Certified Information Systems Auditors
The Information Systems Audit and Control Association, now known as ISACA, offers a test that qualifies accountants as Certified Information Systems Auditors after they have at least five years of experience in the information systems industry.
- Certified Management Accountants
The Institute of Management Accountants certification exam and two years of management accounting experience are requirements for certification.
- Certified Internal Auditors
A minimum of two years of professional internal auditing experience is required of Certified Internal Auditors, as well as passing a four-part test given by the Institute of Internal Auditors.
All of these certifications require a four-year accounting degree as a prerequisite.
Consider Pursuing Continuing Education
Even after earning their degrees and the required certifications, many successful accountants continue their education. The best way to become a successful accountant and stay on top of accounting trends is to participate in continuing education.
There are several opportunities for accountants to further their education, including additional certifications and master’s degrees
Education Requirements For Accountants
Most accountants possess a bachelor’s degree or higher in accounting or a closely related field, though this is not a requirement. A bachelor’s degree is regarded as the minimal educational requirement for people who want to become certified public accountants.
In some states, CPAs may also be required to take advanced courses, such as those in auditing, taxes, and financial reporting. A master’s degree in accounting is frequently pursued in addition to a bachelor’s degree by CPAs.
Average Salaries Of Accountants
The degree of education, number of relevant years of experience, and professional certifications of an accountant may all affect their pay. Other factors that may affect a person’s earnings include their employer and location.
- Common salary in the U.S.: $54,717 per year
- The salary ranges from $14,000 to $120,000 annually.