If you're considering a career in accounting, there are several options to choose from. You can work for large companies, for one of four major accounting firms or even start your own company. Below are the pros, cons and benefits of each path. Which one would you choose? And how will it affect your salary? Which path will result in a higher salary for you? What experience are necessary to succeed in this career?
Working for a single organization
It might not make sense to work for just one accounting firm if your career goal is to become an accountant. People tend to stay in an entry-level position for one to five years. This depends on the organization and economic opportunities. In this article, we'll assume that you will stay at the same organization for one year. You will ultimately decide which work environment is right for you.
High salary
If you are a math whiz and love to work with numbers, an accounting career might be for you. The median annual salary for accounting professionals is $92,246, making it an attractive career choice. You will oversee all aspects of the company's finances as head of an accounting department. These include financial statements and general ledgers, payroll, accounts payable, receivable and tax compliance. Additionally, you will be responsible for budgeting and tax compliance.
Some accountants work as partners in small businesses, while others work as CFOs in larger firms. Some even work independently, helping clients fill out their tax returns. It is possible to work from home, and earn high salaries in the accounting profession. You just need to be creative and determined. However, if you are determined, it is possible to find a high-paying account job that does not require you to travel a lot or have to commute.
Working for a "Big Four" accounting firm
Many people have dreams of working in one of the Big Four accounting companies. But what are the advantages and disadvantages? A Big Four firm is a great choice if you are looking to get an entry-level job in accounting. These are the pros and cons to working for a Big Four company over a regional one. This will help you decide if this is the right job for you.
You must demonstrate the qualities that make a great employee for a Big Four business when you apply to one. You must be enthusiastic and confident about working for the company and its clients. Additionally, you should be able demonstrate your commitment to the company's vision, have commercial savvy, and possess emotional intelligence. In addition to these attributes, you should have strong computer skills and an understanding of accounting and tax laws.
You can start your own accounting company
Here are some important considerations when you start an accounting company. While there are many advantages to forming your own firm, you should be prepared to spend some time doing research. To legally start a company, you need to know what legal services you can offer clients based upon your education and certification. For example, only a CPA is allowed to file reports with SEC. This can make client finding difficult.
Entrepreneurship is a great way for you to combine your accounting skills and your entrepreneurial spirit. You can start a business from your home, with the support of family members and flexible work hours. Although you won't have the full control of the strategic direction and management of your company, you will have the ability to concentrate on what you do best. You can help your clients with your accounting skills, even if you have a small business.
FAQ
How does an accountant work?
Accountants work with clients in order to get the best out of their money.
They work closely with professionals such as lawyers, bankers, auditors, and appraisers.
They also collaborate with other departments such as marketing and human resources.
Balanced books are the responsibility of accountants.
They calculate the amount of tax that must be paid and collect it.
They also prepare financial statement that shows how the company is performing.
What is an auditor?
An audit is an examination of the financial statements of a company. Auditors examine the company's books to verify everything is correct.
Auditors examine for discrepancies in the reporting and actual events.
They also examine whether financial statements for the company have been properly prepared.
Are accountants paid?
Yes, accountants can be paid hourly.
For complex financial statements, some accountants may charge more.
Sometimes accountants will be hired to complete specific tasks. An accountant could be hired by a PR firm to prepare a report describing the client's performance.
What are the different types of bookkeeping systems?
There are three types of bookkeeping systems available: computerized, manual and hybrid.
Manual bookkeeping means using pen and paper to maintain records. This method demands constant attention to detail.
Software programs are used to automate bookkeeping and manage finances. This saves time, effort, and money.
Hybrid bookkeeping combines both manual and computerized methods.
What are the steps to get started with keeping books?
You will need a few things to begin keeping books. You will need a notebook, pencils and calculators, a printer, stapler, pen, stapler, envelopes and stamps, as well as a filing cabinet or drawer.
What is the difference in accounting and bookkeeping?
Accounting refers to the study of financial transactions. Bookkeeping records these transactions.
These are two related activities, but separate.
Accounting deals primarily using numbers, while bookskeeping deals primarily dealing with people.
For reporting purposes on an organization's financial condition, bookkeepers keep financial records.
They ensure that all the books are balanced by correcting entries for accounts payable, accounts receivable or payroll.
Accountants analyze financial statements to determine whether they comply with generally accepted accounting principles (GAAP).
If they don't, they might suggest changes to GAAP.
For accountants to be able to analyze the data, bookkeepers must keep track of financial transactions.
Statistics
- "Durham Technical Community College reported that the most difficult part of their job was not maintaining financial records, which accounted for 50 percent of their time. (kpmgspark.com)
- Given that over 40% of people in this career field have earned a bachelor's degree, we're listing a bachelor's degree in accounting as step one so you can be competitive in the job market. (yourfreecareertest.com)
- The U.S. Bureau of Labor Statistics (BLS) projects an additional 96,000 positions for accountants and auditors between 2020 and 2030, representing job growth of 7%. (onlinemasters.ohio.edu)
- BooksTime makes sure your numbers are 100% accurate (bookstime.com)
- a little over 40% of accountants have earned a bachelor's degree. (yourfreecareertest.com)
External Links
How To
How to be an Accountant
Accountancy is the science of recording transactions and analyzing financial data. Accounting also includes the preparation of statements and reports for different purposes.
A Certified Public Accountant, also known as a CPA, is someone who has successfully passed the CPA exam. They are licensed by the state's board of accountancy.
An Accredited financial analyst (AFA), or an individual who meets the requirements of the American Association of Individual Investors, is an individual who is accredited by Financial Analysts. The AAII requires that individuals have at least five years of investment experience before becoming an AFA. A series of exams is required to assess their knowledge of securities analysis and accounting principles.
A Chartered Professional Accountant is also known by the name chartered accountant. This is a professional accountant who received a degree at a recognized university. CPAs need to meet the specific educational standards set forth by the Institute of Chartered Accountants of England & Wales.
A Certified Management Accountant, also known as a CMA, is a certified professional who specializes on management accounting. CMAs must pass the ICAEW exams and continue their education throughout their careers.
A Certified General Accountant (CGA) member of the American Institute of Certified Public Accountants (AICPA). CGAs must pass multiple exams. One of these tests, the Uniform Certification Examination or (UCE), is required.
International Society of Cost Estimators, (ISCES), offers the Certified Information Systems Auditor (CIA), a certification. Candidates for the CIA must have completed three levels of education: coursework, practical training, then a final exam.
Accredited Corporate Compliance Office (ACCO), a designation conferred by the ACCO Foundation as well as the International Organization of Securities Commissions. ACOs need to have a bachelor's degree in finance, public policy, or business administration. They must also pass two written exams as well as one oral exam.
The National Association of State Boards of Accountancy's Certified Fraud Examiner credential (CFE), is awarded by NASBA. Candidates must pass 3 exams and score a minimum of 70 percent.
International Federation of Accountants is accredited a Certified Internal Audior (CIA). The International Federation of Accountants (IFAC) requires that candidates pass four exams. These include topics such as auditing and risk assessment, fraud prevention or ethics, as well as compliance.
American Academy of Forensic Sciences, (AAFS), gives the designation of Associate in Forensic accounting (AFE). AFEs must have graduated from an accredited college or university with a bachelor's degree in any field of study other than accounting.
What is the job of an auditor? Auditors are professionals who inspect financial reporting controls and audit the internal controls. Audits can either be done randomly or based on complaints about financial statements received by regulators.