Job Description
Accountants conduct analysis of financial information and communicate related details. They help ensure that companies run efficiently, accurate public records are maintained, and taxes are paid correctly and on time.
Accountants may work for a company, the government, or for clients as a public accountant. In addition to financial document preparation, analysis, and verification, some accountants perform budget analysis, investment and financial planning, consulting regarding information technology, and offer limited legal services.
Salary Statistics
The Bureau of Labor Statistics Occupational Employment Statistics reported a mean annual wage of $68,690 for accountants in May 2010.
Annual wages averaged $38,940 for the lowest ten percent of earners, while the middle 50 percent earned $61,690 annually.
The top ten percent of earners had an average annual wage of $106,880. New York, District of Columbia, New Jersey, Maryland, and Massachusetts were the top five paying states/districts, each providing an annual mean wage that exceeded $75,000. North Dakota, South Dakota, Montana, Oklahoma, Arkansas, and Mississippi were the lowest paying states, with an annual mean wage of between $36,250 and $55,870.
The accounting, bookkeeping, payroll services, and tax preparation industry employed the largest number of accountants. Other industries employing a significant number of people in this field included enterprise management, local and state government, and management, technical, and scientific consulting services. The federal executive branch was the top paying industry, with an annual mean wage of $89,310. The postal service and companies engaged in commodity and securities brokerage and intermediation, other financial investment activities, or various information services were additional top payers.
Job Outlook
2008 - 2018 Projected
Employment Changes |
| 279,400 new accounting and auditor jobs |
| 22% increase in employment |
|
Employment growth for accountants is expected to be 22% from 2008 to 2018, which is much faster than average, as reported by the Bureau of Labor Statistics.
In general, job opportunities will be favorable, with accountants who possess a professional certification, especially the CPA designation, having the best prospects. As of May 2010, the highest employment levels for accountants were in the states of California, New York, Texas, Florida, and Pennsylvania.
Education & Training
Most accounting positions require at least a bachelor’s degree in accounting or a closely related field. This was confirmed by a recent O*Net survey that found 79% of accountants surveyed had a bachelor’s degree, while only five percent had an associate’s degree. Some employers prefer that accountants have a master’s degree in accounting or in business administration with an accounting concentration. Nine percent of the O*Net survey respondents held a master’s degree.
In addition to accounting programs, some colleges and universities have begun offering programs regarding popular specialty professions like forensic accounting. Junior college or business school graduates may be able to find junior accounting positions. New accountants are often required to work with an experienced accountant before they are provided additional responsibility.
Any accountant who files a report with the Securities and Exchange Commission (SEC) must be a Certified Public Accountant, or CPA. The state Board of Accountancy licenses CPAs who meet state requirements and pass a four-part national exam prepared by the American Institute of Certified Public Accountants. Other certifications, like the Certified Management Accountant (CMA) designation from the Institute of Management Accountants, are available from various professional societies.
The majority of states require that CPA candidates have a college degree. As of 2009, the District of Columbia and 46 states required that CPA candidates have 150 semester-hours of college courses, which is 30 hours more than a traditional bachelor’s degree program. Some schools offer a combined bachelor’s and master’s degree program lasting five years that meets the 150 semester-hour requirement. Nearly all states require individuals with a CPA designation complete continuing professional education in order to renew their licenses.
Related Occupations
Several occupations make use of the same skills that accountants use. Here is a short list of careers related to accounting:
- Cost estimators forecast the size, duration, and costs of future projects.
- Managers use this information to decide whether the endeavor is profitable or to determine whether to bid on a contract.
- Loan officers find business and individual clients interested in taking out a loan and guide them through the application process.
- Economists study the distribution of resources in the production of goods and services.
- Personal financial advisors help clients develop financial goals and assist them with investment and insurance decisions.
- Budget analysts create, analyze, and execute budgets that represent corporate allocation of financial resources.
