For many professionals, accountancy provides a challenging and fulfilling career. Accountants earn above-average salaries, see steady demand and have many opportunities to advance and specialize in their profession.
This article explains how to become an accountant. We’ll take a general look at the profession before diving into salary and job outlook data. We will then lay out the steps you can take to start an accounting career.
What Do Accountants Do?
Broadly speaking, accountants help organizations and individuals manage their financial records and make smart choices with their money.
Accountants’ duties may include preparing financial statements and reports, evaluating risk and ensuring accuracy and compliance in record-keeping. Accountants might also help develop organizational budgets and advise executives on financial decisions.
Recording and analyzing data is a big part of an accountant’s job description, and these professionals also need to communicate their findings and recommendations. Accountants may present reports to stakeholders, discuss their work with other accounting personnel or meet with clients to go over tax returns.
Accounting Specializations
Accountancy encompasses many specializations to suit professionals’ different interests and goals. For example, consider the following types of accountants.
- Tax accountants. These professionals provide services like tax planning and tax return preparation.
- Cost accountants. These accountants evaluate operational costs to help businesses save money and increase profit.
- Staff accountants. As a staff accountant, you may take on a variety of accounting duties, including maintaining records, processing payroll and preparing financial statements.
- Managerial accountants. These accounting professionals analyze and interpret a company’s financial data to help shape its financial strategy.
Accountants can also specialize in specific economic sectors like healthcare, tech or government.
Who Should Consider Becoming an Accountant?
Accountants tend to have a detail-oriented, analytical outlook, and they should enjoy working with numbers. Accountants need strong communication skills as well.
Accountants use these abilities—plus knowledge gained through college-level accounting programs—to provide financial services to businesses and individuals. Anyone with these skills and traits can succeed in accountancy.
Accounting Field Demographics
The accounting field boasts a fairly diverse workforce. According to data from Zippia, 35.4% of accountants in the United States are not white, 8% identify as LGBTQ and 61.8% are women. Notably, Black, Hispanic and Native American accountants remain underrepresented in their field. Women make up more than half of all accounting personnel but are less likely than men to hold leadership roles.
Accountant Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), there were almost 1.5 million accounting and auditing jobs in the U.S. as of 2021—and that’s not counting other accounting professionals like controllers, tax examiners and accounting clerks.
Demand for Accountants
This widespread demand leads to a stable job market. The BLS projects a 6% job growth for accountants and auditors between 2021 and 2031. This percentage is on pace with the average projected growth for all occupations.
Emerging technology like artificial intelligence and cloud computing will likely lead to more automation in accounting, but businesses, nonprofits and government agencies will still need skilled accountants to oversee these automated functions. As the global economy grows and tax laws and regulations become more complex, accountants should remain essential to the economy.
Earning Potential for Accountants
The BLS reports an annual median salary of $77,250 for accountants and auditors as of 2021—more than $30,000 above the median annual wage for all occupations nationwide.
Location, industry and seniority can affect how much accountants earn. For example, the BLS notes that accountants in the San Jose area—the highest-paying city for this career—earn almost $36,000 more than the national median salary for accountants. Similarly, the median income for accountants in the computer manufacturing industry exceeds that of state government accountants by over $50,000 a year.
As accountants gain experience and move into managerial roles, they may become financial controllers and run their organizations’ accounting departments. The BLS reports a median annual salary of $131,710 for financial managers like controllers, projecting that these jobs will grow by 17% from 2021 to 2031.
Becoming an Accountant: Steps to Take
Each aspiring accountant follows their own career path, but most qualify to start working in entry-level accounting roles after earning a four-year bachelor’s degree. Many accountants also complete master’s in accounting programs, adding about two years to the career path.
After gaining enough college credit and professional experience, accountants may qualify to earn Certified Public Accountant licensure and other career-boosting certifications.
Earn a Degree
The first step toward becoming an accountant is usually a bachelor’s degree in accounting or business administration bachelor’s degree. Accounting bachelor’s programs teach foundational skills and knowledge to prepare graduates for entry-level jobs or graduate study.
Most bachelor’s programs take four years to complete and entail about 120 credits. Since Certified Public Accountant (CPA) candidates need 150 credits, some schools offer five-year courses of study that meet this credit requirement and allow students to earn their bachelor’s and master’s degrees concurrently.
A master’s in accounting can help accountants qualify for more job opportunities. This degree builds advanced accounting knowledge and allows students to delve into specialized topics. A master’s degree usually takes about two years.
Many employers prefer master’s-educated candidates for accounting positions, and CPAs typically hold a master’s degree in accounting.
Gain Experience
Working as an intern is a great way for aspiring accountants to gain industry experience. If you’re in your final undergraduate year, or you’ve just graduated from an accounting bachelor’s program, an internship can help you build professional skills and become familiar with what it’s like to work in the industry.
Internships provide hands-on practice in a real accounting environment. They can also be a valuable source of professional connections, and some students receive job offers at the companies where they intern.
Since nearly every sector needs accountants, there are many options for places to intern. Businesses, public accounting firms, nonprofits and government organizations may offer accounting internships. Accounting students can find internship opportunities through their academic departments or college career services.
Consider CPA Licensure
CPAs are accountants, but not all accountants are CPAs. Compared to other accountants, CPAs have more professional responsibilities and privileges. Only CPAs can represent people and companies before the IRS, act as external auditors and file reports with the Securities and Exchange Commission. Many employers prefer their accounting candidates to hold CPA licensure.
CPA requirements vary by state, but in most cases, CPAs must meet strenuous educational requirements, pass a qualifying exam and demonstrate at least two years of public accounting experience. Many states require CPAs to complete continuing education to maintain their licenses.
Frequently Asked Questions (FAQs) About Accountants
What qualifications do you need to be an accountant?
Accounting jobs typically require at least a bachelor’s degree in accounting. For some positions—especially senior roles—many employers seek candidates with master’s degrees and CPA licensure.
How long does it take to become an accountant?
Every accountant follows a different path, but for many, the process takes about six years. This includes four years to earn a bachelor’s in accounting and another two years to complete a master’s program or gain enough work experience to qualify for an accounting certification.
Do accountants make good money?
Yes, accountants make above-average salaries. According to the BLS, accountants in the U.S. earned a median annual income of $77,250 as of 2021. Depending on an accountant’s experience level, industry and location, they may make even more.
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