Before you begin your accounting career path, you’ll want to understand how to become an accountant. This field — defined by financial management and expert recordkeeping — is ideal for anyone who is meticulous about numbers, organized in their personal and professional lives, and ready to pursue a lengthy, rewarding career.
What Do Accountants Do?
Accountants are financial professionals who are responsible for preparing and maintaining financial records for an organization. According to the United States Bureau of Labor Statistics (BLS), accountants are required to:
- Prepare financial records.
- Organize and examine financial records.
- Identify areas of risk for a business.
- Ensure that businesses are maintaining compliance with financial regulations.
- Determine the amount of taxes that the organization or individual owes and prepare taxes for payment.
- Make data-based recommendations to the organization for improving financial efficiency or organizational health.
Accounting Specializations
Within the accounting field, there are several specializations to explore. By specializing as an accountant, you can access job opportunities in niche areas for which other accountants may not be qualified. Pursuing a specialization is an excellent way to advance your career, as it allows you to set yourself apart in a competitive job market.
Below are some of the most well-known accounting specializations:
Forensic Accounting
Forensic accounting focuses primarily on investigative accounting, with forensic accountants working to identify instances of fraud or embezzlement within an organization. According to the Institute of Certified Forensic Accountants, forensic accountants must rely heavily on accounting and auditing skills as well as industry-specific investigative skills in order to effectively complete a thorough and accurate investigation.
Some of the common job responsibilities of forensic accountants include:
- Conducting criminal and civil accounting investigations.
- Collecting and preparing evidence.
- Preparing reports based on expert testimony and evidence.
- Providing evidence in court.
- Solving financial disputes in an organization using data-based analysis.
Tax Accounting
Tax accounting is one of the most popular specializations in accounting. Professionals in this subfield focus on collecting tax documents, preparing tax returns, and making tax payments. According to Investopedia, tax accounting is a versatile specialization because individuals or businesses both require the expertise of tax accountants, thus ensuring that there is a wide range of professional opportunities available. Those interested in pursuing this specialization in accounting should be aware of the differences between tax accounting for individuals and businesses:
- Tax accounting for individuals focuses primarily on the amount of income an individual earns and the tax deductions that are available to them. Depending on the individual's circumstances, the donations they have made or the revenue they have generated from investments also may come into play.
- Tax accounting for businesses is more layered, requiring accounting professionals to consider how income is spent within the organization and what income is considered taxable.
Management Accounting
Management accounting is a specialization that builds upon the foundations of the field, allowing professionals to elevate their careers by offering analytical insight to organizations to help those entities perform better. Management accounting is sometimes referred to as corporate accounting or cost accounting, and management accountants often work for public companies, government agencies, and private organizations.
A management accountant may be responsible for:
- Recording and analyzing financial data.
- Preparing reports and providing organizations with actionable insights to improve financial performance.
- Supervising accountants.
- Measuring financial performance.
- Identifying and mitigating risks.
- Budgeting and forecasting for the organization.
- Developing a financial system for the organization.
Auditing
Auditing is an accounting specialization that requires an individual accountant to review financial records to verify that the organization is in compliance with all regulations and ensure that no fraud has taken place. According to PwC, auditors are specialized accountants who perform independent examinations and evaluations of financial records. Primary responsibilities of auditors include:
- Examining financial records and reports.
- Preparing and presenting audit reports for the organization once the evaluation is complete.
Auditors must adhere to industry standards to conduct an audit fairly and effectively. Many organizations are required to have an audit performed on an annual basis. In some cases, an organization may request a special audit due to extenuating circumstances.
Government Accounting
Government accounting is a form of accounting required for government agencies at the local, state, and federal levels. All governmental organizations and agencies rely on public funds, making government accounting particularly important.
According to the Association of Certified Fraud Examiners, government accountants are essential to government departments and agencies because these professionals ensure the organization remains in compliance with all regulations and that transparency is prioritized for all key stakeholders. They are primarily responsible for:
- Making recommendations to optimize the use of taxpayer-funded dollars.
- Verifying that the government organizations are using taxpayer dollars responsibly and ethically.
- Investigating white-collar crime within an organization.
- Developing procedures to reduce the likelihood of white-collar crime.
Financial Accounting
Financial accounting is a specialized branch of accounting focused specifically on financial reporting to external organizations. Financial accounting and managerial accounting are sometimes confused — but it's essential to keep in mind that financial accounting involves reporting to external parties, whereas managerial accounting involves internal financial strategy development and implementation.
Financial accountants are responsible for:
- Preparing financial records for an organization.
- Financial reporting for an organization.
- Developing a strategic framework that an organization can use for financial reporting.
Cost Accounting
Cost accounting is a niche field within the branch of managerial accounting. Cost accountants work to record and analyze company costs, and they are primarily responsible for identifying ways to reduce organizational spending. Cost accountants focus strictly on internal processes.
Cost accounting is used by organizations of all sizes and across all industries to:
- Identify cost controls. Cost accountants can work to identify areas where the organization is not operating as efficiently as possible, then help make recommendations for ways to reduce costs or increase profits.
- Streamline internal costs. Cost accountants can review records and identify opportunities to reduce or optimize internal costs.
- Developing expansion plans. Cost accountants can help organizations forecast costs in the future and plan for significant capital expenditures that may be required in the coming years.
- Assisting financial accountants with the preparation of financial reports. Cost accountants often collaborate with the rest of the accounting team to prepare effective reports for organizational leadership.
How to Become an Accountant: A Step-by-Step Guide
Whether you want to work as a certified public accountant or specialize in a unique branch of accounting, you will need to develop a strong foundation for your career by choosing the right accounting program. Knowing the steps required to become an accountant can help you carve out a career path that allows you to meet your personal and professional goals.
Education Requirements
According to the BLS, most organizations require accountants to hold a bachelor's degree in accounting, finance, or business. It's crucial to choose a bachelor's degree in accounting program that is rooted in the principles of accounting and also introduces you to the distinct specialization opportunities available — enabling you to personalize your educational pathway and pursue entry-level positions that interest you most. A strong accounting program can provide you with the foundation needed to grow and advance your career in accounting.
Earn Certifications
Depending on your desired position within the accounting field, you may also need to pursue an accounting certification in order to earn the credentials required to pursue entry-level positions.
According to the BLS, some of the most common accounting certifications include:
CPA — Across all 50 states, all public accountants who file a report with the Securities and Exchange Commission (SEC) must earn their Certified Public Accountant (CPA) certification in order to practice. To become a CPA, you must pass the national CPA exam as well as meet all other requirements outlined by the state where you plan to work, which may include 150 hours of college coursework.
CMA — Accountants who complete their bachelor's degree program are able to become a Certified Management Accountant by pursuing the certification program offered by the Institute of Management Accountants. To earn this certification, you must complete an exam, prove that you have professional experience in management accounting, comply with professional conduct standards, and pursue continuing education programs throughout your career to maintain your certification.
CFA — The Chartered Financial Analyst certification is designed for accountants who want to pursue a career as a financial analyst. Financial analysts focus primarily on managing investments for private individuals and business organizations. To earn this certification, you will have to pass three industry-specific exams as well as complete professional experience in financial analysis.
Develop Essential Skills
Regardless of the specialization in accounting you pursue, you will need to focus on developing the core competencies required to succeed in this field. All accountants must be proficient in math and numerical skills, as they frequently work with numerical and financial data in order to present analytical findings to their clients or employers. In addition to advanced math skills, accountants should develop these key skills:
- Communication
- Organization
- Adaptability
- Analytical abilities
- Software proficiency
- Attention to detail
Pursue Entry-Level Accounting Roles
Once you have completed your bachelor's degree in accounting and developed the skills to succeed in this field, you will want to start pursuing entry-level accounting roles. Entry-level positions in accounting allow you to build upon the foundation that you established in your accounting program and begin earning the professional experience required to advance your accounting career.
These are some common entry-level accounting roles that graduates may pursue after completing their bachelor's degree program:
- Bookkeeper
- Junior accountant
- Accounts payable/receivable clerk
- Payroll clerk
- Tax associate
- Auditing assistant
- Billing specialist
- Accounting assistant
Consider Advanced Education for Career Advancement
After earning your bachelor's degree in accounting, you might begin your career path by pursuing an entry-level position. However, you may find that there are more opportunities for advancement in your accounting career when you pursue a graduate degree. A graduate accounting degree allows you to develop the advanced, specialized skills required for niche accounting positions or leadership opportunities. At Champlain College Online, we offer a master's degree in accounting with finance along with a Master of Business Administration with an Accounting Specialization — both of which provide experienced accountants with the skills necessary to pursue higher-level positions.
Accounting Career Outlook
The accounting field is unique in the sense that it is not industry-specific. Businesses and organizations of all sizes and across all industries require the expertise of skilled, intuitive accountants who can manage their records and prepare their taxes.
According to the BLS, the job outlook for those interested in an accounting career is positive: The field is projected to grow by about 6% between 2023 and 2033, which is faster than average compared to all other occupations. The BLS anticipates there to be more than 91,000 new jobs created in the accounting field each year over the course of the next decade.
Start Your Accounting Career With the Right Education
An accounting degree will allow you to develop the core competencies this dynamic field demands. Whether you want to pursue a career in public accounting or you are more interested in the realm of forensic accounting, it's important to begin with an accounting degree program that equips you with an advanced understanding of the industry and its relevance in today's global economy.
At Champlain College Online, we offer a Bachelor of Science in Accounting degree program that focuses on the critical accounting and business skills required for modern professionals to succeed. Begin your educational journey today by requesting more information about our degree programs.
