The job outlook for the accounting profession is quite positive. Accountants and auditors are expected to see steady job growth over the next decade. Increased focus on accountability and transparency in financial reporting will drive demand for accounting services. The globalization of business also contributes to demand for accounting expertise. Overall, the Bureau of Labor Statistics projects employment of accountants and auditors to grow by 10% from 2016 to 2026.
What are the main factors driving job growth for accountants?
Here are some of the key factors contributing to job growth in the accounting field:
- Increased financial regulations – Regulations like Sarbanes-Oxley and Dodd-Frank have increased demand for accounting and auditing services.
- Globalization – As more companies expand globally, they need accounting expertise to navigate different tax laws, regulations, and reporting standards.
- Advisory services – Accountants are expanding into high-value advisory roles, helping clients with financial planning, risk management, and data analytics.
- Technology expertise – Accountants increasingly need specialized skills in accounting software, data analysis, and information security.
- Strict standards – Stricter standards for financial reporting and accounting practices require more accountants to ensure compliance.
Overall, complex and changing financial reporting requirements are fueling demand for accounting skills. Accountants help provide the credible, reliable financial information that business, government, and the public sector need.
What industries and sectors employ the most accountants?
Accountants work in nearly every industry, but some key sectors employ the majority of accounting professionals:
- Accounting firms – Public accounting firms like the Big 4 (Deloitte, PwC, EY, KPMG) employ a large number of accountants for auditing, tax, and consulting services.
- Finance and insurance – Banks, insurance companies, brokerages, and other financial institutions have significant accounting needs.
- Government – Government agencies at federal, state, and local levels employ accountants for financial reporting, budgeting, and control.
- Manufacturing – Manufacturers need accountants for cost accounting, compliance, and financial management.
- Healthcare – Hospitals, health systems, and insurance companies require accountants for revenue cycle and reimbursements.
Nearly every large organization has an accounting department. Smaller firms often outsource accounting needs to third-party providers.
What are the most in-demand accounting specialties?
Within the broad field of accounting, some key specialties are seeing particularly strong demand. Here are some of the hottest accounting specialties right now:
- Auditing – Internal and external auditors are needed to assess financial records and ensure compliance.
- Forensic accounting – Analyzing financial documents for legal disputes or criminal investigations.
- Tax accounting – Preparing tax returns and guiding tax planning strategies.
- International accounting – Navigating international standards and cross-border transactions.
- Management accounting – Providing financial analysis and decision support for management.
- Information systems audit – Assessing risks and controls for accounting information systems.
Accountants with specialized expertise in high-demand areas like fraud investigation or international tax typically enjoy advantageous hiring prospects and compensation.
What are typical entry-level job titles in accounting?
Here are some common job titles for entry-level accounting positions:
- Staff Accountant
- Accounting Assistant
- Accounts Payable Clerk
- Accounts Receivable Clerk
- Payroll Administrator
- Bookkeeper
- Tax Preparer
- Audit Assistant
- Accounting Trainee
Entry-level accounting jobs usually focus on day-to-day accounting operations, maintaining records, and assisting with reporting. With some experience, accountants can advance into roles with more analysis, budgeting, and decision support responsibilities.
What education and certification is needed to become an accountant?
Here are the typical requirements for an accounting career:
- Bachelor’s degree – A bachelor’s degree in accounting or finance is required for most accountant positions. Business administration or economics degrees may also be acceptable.
- Master’s degree – A master’s degree is required for the Certified Public Accountant (CPA) credential and can help provide an edge in job hunting. Common options include Master of Accounting (MAcc) or Master of Business Administration (MBA) with an accounting concentration.
- CPA certification – The CPA is the most prestigious accounting credential. CPAs must pass the Uniform CPA Exam and meet education and experience requirements.
- Other certifications – Many accountants pursue additional certifications like Certified Management Accountant (CMA) or Certified Internal Auditor (CIA) to demonstrate specialized expertise.
Gaining professional accounting certifications can boost job prospects and salary potential for accountants.
What core skills are required to be an accountant?
These are some of the most important skills for succeeding as an accountant:
- Analytical skills – Accountants must analyze complex financial information and detect patterns, variances, and risks.
- Math skills – A solid grasp of math and quantitative methods is crucial for performing accounting calculations.
- Communication – Accountants must explain financial findings clearly to non-technical stakeholders.
- Attention to detail – Vital for ensuring the accuracy of financial records and reporting.
- Technology skills – Must be adept with accounting software, spreadsheets, databases, and other tools.
- Ethics – Accountants have access to sensitive information and must demonstrate integrity.
Accountants combine financial acumen with business strategy to deliver value-added analysis and advice.
What is the career outlook for CPAs?
The career outlook for CPAs is very strong due to the prestige of the credential and the complex, evolving nature of the accounting field. According to BLS projections:
- Employment of accountants and auditors is projected to grow 10% from 2016 to 2026, faster than the average for all occupations.
- Increased focus on accounting standards, financial regulations, and corporate governance will drive demand for accounting expertise.
- The largest employers of accountants are in industries like finance, government, and management of companies that require specialized accounting knowledge.
In addition, the U.S. Bureau of Labor Statistics projects above-average employment growth of 10% for accountants between 2016 and 2026. CPAs typically enjoy increased job stability and security.
What is the career outlook for forensic accountants?
Forensic accounting is one of the fastest growing specialties in the field. According to US News & World Report:
- Forensic accounting is expected to grow rapidly at a rate of 10% to 20% over the next 10 years.
- Nearly 80% of large companies plan to hire more forensic accountants over the next 5 years.
- Forensic accountants combine investigative skills with accounting expertise to uncover frauds and financial crimes.
- They provide analysis for court cases, insurance claims, and corporate disputes involving complex financial transactions.
Forensic accounting provides opportunity for interesting work with high stakes and good compensation. Demand is driven by increasing litigation and regulations.
What is the career outlook for management accountants?
Management accountants work within companies to provide internal financial analysis to guide business strategy. Key trends influencing the job outlook include:
- Employment of management accountants is projected to grow 10% from 2016 to 2026, on par with average job growth across professions (BLS).
- Management accountants will be needed to analyze and forecast financial results and help guide profitable business decisions.
- Accountants with specialized expertise in analytics, planning, and performance evaluation will have the best opportunities.
- Shift towards outsourcing routine transactional accounting work may reduce some staff accountant jobs.
Overall strong financial job growth and steady demand for financial analysis and planning will create solid opportunities for management accountants.
What are the salary prospects for accountants?
Accountants earn competitive salaries. According to the Bureau of Labor Statistics:
- The median annual salary for accountants and auditors was $70,500 in May 2018.
- The lowest 10% earned less than $43,650, while the highest 10% earned more than $122,840.
- Median wages for accountants in the largest industries were as follows:
- Finance and insurance: $73,800
- Manufacturing: $70,200
- Government: $60,600
- Accountants with professional certifications tend to earn higher salaries than those without.
Salaries for accountants compare favorably with related administrative and financial occupations. Higher salaries are attainable for accountants with specialized experience, advanced certifications, and leadership roles.
What are typical entry-level accounting salaries?
Entry-level accountants can expect salaries in line with the following averages:
Job Title | Average Starting Salary |
Staff Accountant | $50,000 – $60,000 |
Accounting Assistant | $35,000 – $45,000 |
Bookkeeper | $30,000 – $40,000 |
AP/AR Clerk | $30,000 – $38,000 |
Payroll Administrator | $38,000 – $45,000 |
Tax Preparer | $35,000 – $45,000 |
Higher starting salaries are typical for accountants working in major metro areas and those with master’s degrees or CPA certification.
What are the top high-paying accounting careers?
Here are some of the most lucrative accounting career options:
Career | Average Salary |
Chief Financial Officer | $200,000 |
Finance Director | $150,000 |
Audit Partner | $150,000 |
Controller | $120,000 |
Tax Director | $120,000 |
Head of Treasury | $115,000 |
Investment Fund Accountant | $100,000 |
Money Manager | $100,000 |
Salaries vary based on location, firm size, industry, credentials, and experience. But accounting offers opportunities for high earners at upper management levels.
What is the work-life balance for accountants?
In general, accountants enjoy relatively good work-life balance. However, schedules can vary across different types of accounting roles and firms.
- Public accountants at large firms tend to work longer hours during busy tax and audit seasons.
- Government accountants usually have more traditional Monday-Friday, 40 hour schedules.
- Management accountants may work longer hours at quarter-end and year-end closing periods.
- In industry accounting roles, overtime is typically only required periodically for monthly/quarterly/yearly reporting.
Work-life balance often improves for accountants as they advance into senior-level positions with more control over scheduling.
What are the pros and cons of an accounting career?
Potential pros:
- Excellent job prospects and steady, long-term demand
- Good salaries with opportunity for earnings growth
- Prestige associated with CPA credential
- Desirable skills transferable across roles and industries
- Logical, methodical work activities
- Opportunities to obtain additional professional certifications
Potential cons:
- Intense workload during busy season for public accountants
- ften need to meet strict reporting deadlines
- Work can be repetitive and routine at lower levels
- Must maintain technical knowledge through ongoing training
- Need strong ethics to handle sensitive financial information
Conclusion
The accounting profession offers a solid career path with competitive compensation, low unemployment, and consistent demand for skills. While certain roles and firms require longer hours, accountants can find reasonable work-life balance in many positions. With credentials like CPA, accountants can attain senior leadership roles with higher earnings potential. Overall, accounting provides good job security and opportunities for advancement.