5 Leading Careers in Accounting
5 Leading Careers in Accounting
The research conducted by the US Bureau of Labor and Statistics reveals that accounting is a profession that will remain stable and grow exponentially in the coming decade. Cosmetic bubbles are bursting, the IRS is modifying tax codes, firms and corporations are closing down, and organizations create new vacancies every single day. Some of the fields of accounting are growing as much as 25% faster in contrast to their counterparts.
There are plenty of specialties in the vast field of accounting that range from conventional bookkeeping to complex analysis and appraisals. Contemporary accountants are shrewd business professionals familiar with the tactics involved in keeping track of the money trail. An accountant is responsible for maintaining and processing financial information required by a firm to manage and operate its functions effectively.
Contemporary accounting is concerned with calculating costs and harnessing the tremendous potential of modern technology along with participation in mergers and acquisitions. A knowledgeable and shrewd accountant is pivotal to the success of any firm or corporation. The accountants play their role in keeping an eye on the quality, development, and utilization of systems to monitor finances, tactics relating to taxes, and management of health care benefits.
Types of accountants
The four fundamental types of accountants include public, management, government, and internal auditors. Experts have ranked five careers in accounting as the best in terms of remuneration, job structure, and scope. There are five areas of specialization within the four fundamental types of accountants:
- Internal auditor
- Compliance executive
- Financial analyst
- Staff accountant
- External auditor
Jobs and remuneration
An internal auditor is responsible for bolstering company controls and endeavors to ensure that the firm complies with the updated regulatory regimes introduced by the government. Internal auditing ensures operational effectiveness, proper maintenance of financial reports, and investigation of fraudulent activities.
Organizations do not expect internal auditors to fulfill the company’s tasks. They advise the executive and the Board of directors regarding the optimization of the operational effectiveness of the company. An internal auditor should be a Certified Internal Auditor (CIA), a globally recognized certificate for internal auditors. Aspiring accountants for this field require a bachelor’s degree along with fieldwork of at least a couple of years. The national average remuneration for this career lies between $78,000 and $102,000.
Internal auditors who wish to become certified need to complete a 3-part exam, for which we recommend studying with the Gleim CIA Review System. The exam is one of several requirements to become a Certified Internal Auditor.
A compliance executive is responsible for ensuring that a company functions within specified guidelines, government regulations, and mandates. For instance, U.S. Federal Law created the Sarbanes-Oxley Act (SOX) due to the nefarious activities perpetrated by Enron and WorldCom.
Compliance executives protect the public and company shareholders from fraudulent activities and errors in accounting. Chief compliance officers have had high demand in large corporations and companies since 2006.
A financial analyst lends their efforts to ensure that a company maximizes its return on investment. This kind of accountant operates at banks, insurance companies, mutual funds, pension funds, security companies, and other financial businesses. Financial analysts study financial statements by reviewing commodity prices, sales, costs, expenditures, and taxation rates to figure out future earnings or existing business value.
A financial analyst is responsible for studying an industry and keeping an eye on the current business patterns and competition prevalent in the industry. This account is highly sought for when it comes to management and senior executive positions and thereby commands high remuneration.
Staff accountants have been hanging onto high posts for a long time. They compile financial information and journal entries for company accountants and carry out account reconciliation. Furthermore, staff accountants ensure compliance with the regulatory laws enforced by the government.
A staff accountant is responsible for culling financial information, forging reports, recording the collected information, categorizing entries, and preparing summaries of financial transactions. Aspiring candidates for this post need to have three years of experience, particularly in public accounting. Large corporations offer at least 5% more compensation to these employees than smaller companies.
Many CPAs are staff accountants and work as one for the first 1-2 years after graduation and taking the CPA Exam.
An external auditor is an independent accountant who visits a particular company or firm to review records and make suggestions regarding financial statements, their clarity, and completeness. Financial statements must be void of any false declarations that might lead to allegations of fraudulent activities. They are assigned to investigate issues highlighted by government authorities or local taxing entities.
External auditors should be independent, which is a mandatory condition for the accurate appraisal of a company’s financial condition. If there is a relationship between the company and the external auditor, the external auditor must include this information in the final audit report.
There is an ever-increasing demand for these accountants. If you want to become an external auditor, you should possess three to seven years of experience or a CPA license.