Introduction
Accounting is a major profession within the larger field of business management and administration. It deals with the recording, analysis and reporting of the financial operations business enterprises. Accountants are the professionals who analyze and prepare financial statements that serve as a useful tool for evaluating business’s success or failure. These professionals serve as the key link between a business and its decision makers. The reports they prepare are used by different stakeholders such as management, employees, stockholders, regulators and creditors. This paper presents a detailed analysis of the career path for accountants.
Career Path Options for Accountants
The field of financial accounting is a diverse discipline with unlimited career opportunities for those with the right academic qualifications, skills and experience. Generally, there are four broad categories of career options for accountants. The first option is management accounting. Management accountants work for companies in senior management positions. They analyze company financial statements and provide management with crucial information needed to make vital or strategic decisions such as business expansion, debt financing and corporate merging. In addition, management accountants prepare and certify financial reports that are issued to regulatory agencies, shareholders, financiers and other stakeholders. Management accountants also provide instructions for computing costs of production in manufacturing enterprises. These accountants are required to have deep knowledge of finance, management and accounting concepts (Schroeder, 104-107).
The second career path option is in government accounting and auditing. Government accountants work in federal and state agencies to review government financial documents. They also analyze the financial statements of government taxpayers. The typical work of government accountants ranges from auditing of tax accounts to confirming of compliance with applicable financial reporting standards. They also help authorities in investigating government accounts for possible fraud and budget related malfeasance. Within the structure of government departments and functional units, government accountants play an integral part in the budgetary and financial declaration processes. Government accountants also prepare reports, which are used by legislators to allocate funds to various government agencies. Some of these reports are published or distributed to the members of the public to show how the government spends revenue obtained from taxpayers (Jason & Teresa, 25-45).
Another major career option for accountants is public accounting. By far, public accounting is the largest field of practice in accounting. Public accountants provide auditing, taxation, accounting and financial advisory services for various clients such as government agencies, private firms, individuals, educational institutions and corporations. The main function of public accountants and their firms is to conduct auditing of balance sheets, periodic reports, income statements and earning reports of their clients. In the United States, Britain, Canada and some other countries, public accounts are licensed to provide their services as Certified Public Accountants. They evaluate the financial statements of their clients based on the Generally Accepted Auditing Principles (GAAP) or the International Financial Reporting Standards (IFRS) (Pierre & Mar, 149-166).
The third major career path for accountants is in internal auditing. Internal auditors work as accounts detectives whose responsibility is to evaluate the internal financial control systems of an organization to prevent fraud, inaccuracies and financial mismanagement. Most private businesses, companies and corporations employ internal auditors to provide objective and independent assessment of the organization’s financial operations. Generally, the scope of internal auditing is very wide and may involve streamlining of operational efficiency, reliability of financial reporting, information technology controls, fraud detection and deterrence, and compliance with laws and regulations. Internal auditors may also recommend solutions for perceived weaknesses in internal controls. Generally, most businesses have employed internal auditors to provide various services although when need arises, they hire public accountants to offer specific services (Jason & Teresa, 25-45).
A small number of accounting professionals work as environmental and forensic accountants. Forensic accountants are employed by law enforcement agencies and legal firms to help in uncovering fraud. Companies in the private and public sectors lose billions of dollars each year, making forensic accounting one of the fastest growing career paths in the accounting profession. Forensic accountants combine their auditing, accounting and investigative skills to analyze financial fraud evidence and can participate in court trials as expert witnesses. In addition to strong accounting skills and legal knowledge, forensic accountants must have analytical and research skills as well as the ability to communicate effectively. In the United States, majority of forensic accountants work with the Federal Bureau of Investigations. In fact, almost all FBI agents are either attorneys or Certified Public Accountants. Environmental accountants analyze the costs of environmental degradation caused by companies. They compare the costs with expected benefits and advice on appropriate environmental strategies (Schroeder, 104-107).
Regardless of the career path option an individual takes, there are three possible positions for accountants, namely entry-level accountants, lead accountants and accountant supervisors. Entry-level accountants review books of accounts and prepare financial statements. They also perform financial reporting and assist senior management with financial planning and budgeting. Usually, an undergraduate degree is required for entry-level accounting positions although some companies encourage internship experience. Lead accountants are responsible for reviewing internal controls, performing audits and providing guidance to junior accountants. Advanced professionals examinations and a minimum of three years of experience are required for lead accountant positions. Accountant supervisors are responsible for planning and approving financial practices including internal control procedures, audit programs, business financing plans and operational budgets. A minimum of five years of experience is required for accountant supervisors (Jason & Teresa, 25-45).
Education, Skills and Competencies Required for a Successful Career in the Accounting Profession
Many entry-level accounting jobs require an undergraduate university degree, though a few jobs require an associate diploma. Most associate diploma programs focus on basic accounting principles and computerized accounting procedures, and are ideal for those wishing to join the profession as accounting clerks. A bachelor’s degree is necessary for those wishing to join higher accounting positions. Senior management accountants are required to have postgraduate degrees such as Masters Degree and additional professional qualifications. In many universities and community colleges, accounting degree programs are common and very popular. Some programs are offered through distance learning. Prospective students are required to verify that particular programs are fully accredited before enrolling for the programs (Pierre & Mar, 149-166).
Adaptability, leadership, time management openness and communication are key competencies required for a successful career in accounting. The accounting profession is very dynamic and therefore accountants who are able to adapt quickly to changes in the industry, customer needs and career requirements have distinct advantages. Adaptable accountants are able to grow in their careers because they are proactive and see challenges as opportunities to develop innovative solutions and test their skills. Time management skills go hand in hand with adaptability. More often, accountants handle heavy workloads on a daily basis. They need to address competing priorities while sticking to quality standards and deadlines. All these require strong time management and organizational skills (Pierre & Mar, 149-166).
Communication skills are very valuable in the accounting profession. Accountants are expected to be proficient in oral and written communication in order to serve clients better, communicate with management and interact with workmates professionally. Strong communication skills can also be crucial in networking and sourcing of clients. Transparency and integrity are strongly valued in accounting. Accountants are expected to adhere to the highest ethical standards and be transparent when making decisions or giving advice. In accounting, leadership means knowing how to mentor, teach and give strategic direction to work teams. Regardless of an individual’s position in the organizational hierarchy, one must act as the person in charge and be a role model while still adhering to teamwork principles. Successful accountantss are generally known to be visionary leaders who make logical decisions that involve a great deal of creativity (Jason & Teresa, 25-45).
Certification Requirements, Employment Prospects and Salary Outlook
In the United States, certification is required for all accounting positions. Accounting clerks may choose to be certified by the American Institute of Professional Bookkeepers upon passing a minimum number of required professional examinations. There is also the Institute of Certified Public Accountants, which offers professional examinations and certification for public accountants. This institution certifies the largest number of accountants in the US. According to the Bureau of Labor Statistics (BLS), jobs for accountants are projected to grow at a rate of 13.5% between 2012 and 2020. Many of the jobs available would be due to existing accountants retiring or advancing to senior positions. Entry-level accountants earn a median annual salary $35,000. Those in middle level positions earn up to three times this amount.
Viewpoints of Current Employees in the Accounting Profession
Accounting is a very good profession and one of the best rewarding careers in the business field. The profession is not only good paying but also has many career opportunities for aspiring accountants. Practicing accountants have however raised concerns that as new technologies emerge, rules and regulations change and administration expenses soar, a number of trends will be witnessed in the accounting profession. The most important of these trends is the need for increased attention on custom tailored and personalized client services. Many accounting firms are under pressure to provide enhanced services by leveraging on the power of technology to automate business processes. This pressure is partly due to the fact that the nature of client service in the accounting profession has progressed from the one-on-one connections of the past to today’s continuous loop of endless opportunities and long-term engagements. These new engagements require a paradigm shift in customer service strategies (Gill, 59-62).
Another key trend in the accounting profession is the increasing merger of small firms to form large companies offering a wide range of diversified and integrated services. In the past, the accounting profession has been operating like a cottage industry consisting of small partner owned firms. Across the world, there are more than 1.8 million of these small partner-owned accounting firms. Out of these, less than 4% earn revenues of more than 3 million dollars annually (Schroeder, 102). As the demand for innovative and integrated accounting services becomes stiff, the small partner-owned firms will have no option but to combine forces to offer a wide range of services. Additionally, rising wages, lack of competent staff, change in regulatory frameworks and fee pressures will force many firms to reexamine their service mix strategies relative to competition and availability of technical resources. To remain competitive in the fast-paced accounting industry, many small firms will form strategic partnerships with consulting firms from other industries such as law, human resources, and management consultancy. Synergies will also be sought through increased private public sector partnerships.
Another area of concern for accountants is that due to advancements in information technology, web-based technologies will be used more often to drive compliance and business efficiency in the profession. Already, there are numerous web-based technologies in the market such as cloud computing. With time these technologies will be more integrated, sophisticated and user friendly. They will be able to offer enhanced functionalities such as seamless integration of accounting software with government compliance requirements. In effect, this will reduce the need for hiring a large staff of accountants. In a way, advances in accounting software and related technological tools will cause minor loss of employment in the profession (Pierre & Mar, 149-166).
The last trend is that the partnership structure that is common in many accounting firms will be replaced by a corporate type of business structure. Adopting a corporate structure will enable accounting firms to hire professionals from other industries to assist in managing the firms. For the few firms that may wish to retain the partnership stricture, partner compensation policies will be geared towards high levels of revenue growth and profitability for the future success of the firm (Jason & Teresa, 25-45).
Jobs Related to Accounting
There are several careers that are related to accounting. These include post-secondary business teaching, credit analysis, tax examination, budget analysis, real estate appraising and tax examination, and revenue agency. Post secondary business teachers instruct students on business management and administration courses such as finance, accounting, labor, human resource management, marketing and industrial relations. They can work in public and private universities and colleges, professional institutions and career schools. They also conduct research in their fields of specialization and publish scholarly papers. Education requirements vary with the type of institution and the subjects taught. Most commonly, post secondary education business teachers are required to have a Doctorate degree. The average annual wage for these teachers is US$ 70,000. Budget analysts are highly skilled in financial matters. They help in the preparation of regular and special purpose budgets. In particular, they provide technical assistance with fiscal allocation, cost analysis and conformance with regulations and procedures. Real estate appraisers assess real estate properties to determine value of buildings and land before they are sold, taxed, mortgaged, developed or insured (Gill, 43-52).
Tax examiners, revenue agents and collectors receive taxes from businesses and individuals. They hold meetings with taxpayers to address important issues and regulations involved in filing of tax returns and to resolve problems with tax remittance. They also send reminder notices to taxpayers when accounts are due. Financial examiners investigate business activities of institutions to ensure compliance with applicable laws and regulations, and to enforce legality of all transactions. They also review and analyze policies, laws, regulations and procedures to determine their impact. Credit analysts examine the financial statements of firms and individuals to determine any risks involved in borrowing. They also help in processing loan applications by comparing profitability, liquidity and credit histories of establishments being evaluated with similar ones in the same geographic location or industry (Jason & Teresa, 25-45).
Job Analysis for an Accounting Executive Position
This middle level accounting position was advertised in an online job portal in December 2015. The hiring company was looking for an experienced accounting graduate who could help in managing the books of accounts and handling other finance functions. Among other requirements, successful candidates were expected to demonstrate proficiency in the Generally Accepted Accounting Principles, which is the financial accounting standard used in the United States. The candidates were also required to have a minimum of a university degree in accounting or finance and four years of experience in a similar capacity. However, candidates with higher qualifications such as holders of Masers degrees or Certified Public Accountants would receive priority consideration during the selection process.
Besides requiring applicants to demonstrate formal training and certification in accounting, the position required applicants to be proficient in accounting mathematics with a strong bias for analyzing, comparing and interpreting facts and figures. This consideration is crucial in all accounting job adverts owing to the nature of work that accounting entails. In terms of skills and abilities, applicants were required to have a thorough understanding of the overall business functions, computer applications, forensic intelligence gathering and business valuation. These skills could enable successful candidates to communicate results to senior management and clients clearly. Successful candidates could add value to the hiring company by acting as a pivotal point of contact for all issues pertaining to accounting.
Accounting Professional Societies and Associations
A number of professional organizations offer a wealth of resources and information for accountants. Most of these organizations help in conducting research in various fields of the accounting profession such as auditing, tax, financial advisory and fraud, and on emerging issues such as work life balance. They also provide vital links and advice for job listings and career search preparations, local chapters, scholarships, professional examination preparations and membership. Listed below are some of the professional accounting associations and societies present in the United States:
California Society of Certified public accountants
Association of certified fraud examiners
Government Finance Officers Association
American Society of Women Accountants
American Institute of Certified Public Accountants
Conclusion
Works Cited
Gill Matthew. Accountants' truth knowledge and ethics in the financial world. Boston: Oxford, 2009.
Jason Porter & Teresa Gordon. Reading and Understanding Academic Research in Accounting: A Guide for Students. Global Perspectives on Accounting Education, vol. 6, 25-45, 2009.
Pierre Labardin & Marc Nikitin. Accounting and the Words to Tell It: An Historical Perspective. Accounting, Business & Financial History, vol. 19, no. (2), 149–166, 2009.
Schroeder Richard. Financial accounting theory and analysis. New Jersey: Wiley, 2005.
