Job
description
Accountants
and auditors ensure that firms are run efficiently by providing them
with valuable financial information and accurate record keeping. Accountants
on a day-to-day basis are responsible for bookkeeping, including the
tracking of expenses and revenue, payroll, and paying bills. Accountants
are also responsible for preparing balance sheets, profit and loss
statements, and other financial reports, and may also analyze trends,
costs, revenues, financial commitments, and obligations to predict
future revenues and expenses.
Accountants
are increasingly becoming an important part of successful business
teams. This is because they understand the language of money and a
company's complex financial situation better than any other employees
in the company. Therefore, they are not only responsible for reporting
finances to management; they offer suggestions regarding resource
utilization, tax strategies, and assumptions underlying budget forecasts.
Auditors examine this accounting and financial data and procedures
to ensure accuracy and compliance with government guidelines and laws.
They work to identify improper accounting or documentation and research
issues in order to make recommendations to improve policies or procedures
accordingly.
Auditors and accountants need to be critical and detail-oriented thinkers.
Individuals should have an aptitude for math and an understanding
of patterns that influence financial performance. Those individuals
that don't enjoy solving detailed problems and performing analyses
should not enter either of these professions. In addition, strong
written and verbal communication skills are becoming increasingly
important for both professions as they often interact and work with
a variety of other departments and professionals.
A day in the life…
Although most accountants and auditors work a standard 40 to 45
hour week, many work longer hours, particularly those that are self-employed
and those involved in tax matters will of course work particularly
long hours during the tax season. While
accountants spend most of their time working in the office, auditors
find they spend the majority of their time on the phone, traveling,
or meeting with clients and other business partners.
An unexpected downside to these professions is that oftentimes they
find themselves the bearers of bad news when it comes to companies
or individuals who have run into financial troubles or mishandled
their finances. In general though, the level of satisfaction in
these professions is relatively high.
Accountants and auditors work in many different areas throughout
private and government industries. But, about a fourth of accountants
work for accounting, auditing, and bookkeeping firms and approximately
3 out of 25 accountants and auditors are self-employed. Some
individuals with accounting and auditing backgrounds will work as
full-time faculty at colleges and universities or part-time while
still working professionally. While many are unlicensed,
a large number are Certified Public Accountants (CPAs). Most work
in urban areas where public accounting firms and corporate headquarters
tend to be located.
Education and training
Most accounting and auditing positions require at least a bachelor's
degree in accounting, finance, or a related discipline. Entry-level
positions in the federal government require four years of college
that includes 24 semester hours in accounting or auditing, or an
equivalent amount of experience. Some employers even prefer a master's
degree in accounting, business administration, or finance. Soon
after being hired, the most common designation required is the Certified
Public Accountant (CPA). But different states have different requirements;
contact the National Association
of State Boards of Accountancy to obtain information on licensing
requirements and standards in your state.
Auditors
who have graduated from an accredited college or university and
who have worked for 2 years as internal auditors and passed the
four-part auditor examination may earn a Certified Internal Auditor
(CIA) designation from The Institute
of Internal Auditors. In addition, those with 5 years of experience
in auditing electronic data processing systems can earn the designation
of Certified Information Systems Auditor (CISA) after passing the
required examinations.
Continuing professional education is required for CPAs to renew
their licenses. CPE requirements vary by state, but always involve
completion of a certain amount of credit hours in applicable continuing
education courses. There are many professional associations that
offer continuing education for accountants in the form of courses,
seminars, and programs.
Pay
The following chart shows national salaries for accountants at various
levels
|
Level
|
Years
of Experience
|
Median
Salary
|
|
Accountant
I
|
0-2
|
$36,263
|
|
Accountant
II
|
2-4
|
$43,506
|
|
Accountant
III
|
4-6
|
$52,019
|
|
Accountant
IV
|
6-8
|
$63,540
|
Source: Salary.com, September 2003
For this month's salaries: Salary
Wizard |
The following chart shows national salaries for auditors at various
levels.
|
Level
|
Years
of Experience
|
Median
Salary
|
|
Internal Auditor I
|
0-2
|
$40,573
|
|
Internal
Auditor II
|
2-4
|
$49,370
|
|
Internal
Auditor III
|
4-6
|
$60,386
|
|
Internal
Auditor IV
|
6-8
|
$70,188
|
Source: Salary.com, September 2003
For this month's salaries: Salary
Wizard |
Job
outlook
According
to the Bureau of Labor Statistics, employment of accountants and
auditors is expected to grow at about the same rate as other occupations
through the year 2010. Those individuals that have earned professional
recognition through certification or licensure should have the best
job prospects. For example, CPAs should continue to enjoy a wide
range of job opportunities, especially as more states require candidates
to have 150 hours of college coursework. Those with management accounting
certifications and graduate degrees will be heavily sought after
as well.
Associated
careers
Accountants and auditors will often have additional degrees so as
to specialize in different areas, such as marketing, advertising,
and law. They will also move into related areas such as management
analysis, consulting, financial analysis, banking, brokerage, and
even the FBI, where they mostly work in hidden asset recovery. Accountants
will often start their own businesses, using their expertise in
finances to manage the start up. Occupations for which accounting
and auditing backgrounds are helpful, and in some cases required,
include budget analysts, collectors, cost estimators, loan officers,
personal financial advisors, revenue agents, and tax examiners.
|
