Accounting
If you were to survey the general public and ask them what the most stressful job in the world was, you would probably end up with an array of answers. These answers could fluctuate from air traffic controller, to heart surgeon. Now, if you ask this question on April 14th at 11:00 P.M. you may end up with only one answer, accountant. This would be the last hour of their strenuous 2-3 month haul of tax filing prior to the deadline on the 15th. An accountant is the person that handles financial information to assist investors, business owners, and the general public with their organization of such data and their decision making. Accountants look at every expense a person has made year to date , and then has to file it with state and federal governments for the client so they ultimately receive their tax returns.
It not a mystery that accountants must possess exceptional math and organization skills. One small mistake in a single digit could result in absolute disaster in many different cases. There are many job opportunities aside from being a Certified Public Accountant, or to simply be an accountant for a large accounting firm. Some of these include: accounting clerk, accounting assistant, accounts payable clerk, assistant controller, bookkeeper, accounts receivable clerk, billing coordinator, property accountant, senior accountant, payroll administrator, tax accountant, director of treasury, internal auditor, financial analyst, etc… These positions all entail different responsibilities and tasks to be completed.
In the example of a Certified Public Accountant, otherwise known as a CPA has a certain meaning behind the title. This title is given to accountants who have taken and passed the UCPAE which is the Uniform Certified Public Accountant Examination. This exam is given by the AICPA (American Institute of Public Accountants) and mainly deals with sections in auditing and attestation, financial accounting and reporting, regulations, and business environment and concepts. In addition to passing this test, the accountants must also meet certain experience and state education requirements to obtain the full certification. CPA’s mainly deal with individual persons and in some cases deal with small businesses as well. Regardless of who they provide service to, they are in various areas of finance that include the following: income tax, assurance and attestation services, estate planning, financial analysis, information technology, venture capital, management consulting, tax preparation, forensic auditing, financial accounting, corporate governance, and financial planning. Although a small number of CPA’s do offer dealing with these areas of finance, the majority tend to just focus on one of these and provide accurate focused service. Much like a doctor, Certified Public Accountants like to specialize in one area and focus on mastering that service.
The position of the accounting clerk is also different in task and duties. They can perform such things as recommending actions to resolve discrepancies, investigate questionable date, and compile data and prepare a variety of reports. They could also be asked to update and maintain accounting journals, ledgers, and other records that detail financial business transactions. Accounting clerks may spend most of their time entering data into a computer, using one of the most common computer programs for accountants dealing with companies, SAP. SAP is a program used by companies that helps them store and organize not only financial information, but also human resources, logistics, inventory, manufacturing, and other tasks.
Another commonly used position for an accountant, bookkeeper, is greatly used by small businesses and large corporations alike. Bookkeepers are responsible for things such as client payroll, handling investments, and keeping track of client assets. Their tasks could also entail handling client mail, tax return preparation, communicating with clients, and of course generating the W-2 and 1099 forms. No matter what position an accountant or prospective accountant takes, they have their work cut out to them.
Due to the rise in money laundering and illegal financial operations, the IRS has stepped up its monitoring of business transactions over the last two decades. They are watching closer than ever, auditing people and companies left and right, and imposing incredible fines for anyone coming in violations related to tax fraud. Because of this, accountants are working harder than ever and becoming much more focused on their jobs. If in the past they had triple checked every figure, they now check it 10 times and have someone else verify it another 5. Mistakes are not an option for accountants or their clients, therefore everything must be in order. The job particularly gets much busier and chaotic as April 15h nears, so between the months of January thru mid April typically. This doesn’t mean they get to slack off the rest of the year, but that is when they have time to take vacations and relax somewhat. Accountants work year round to track expenses, payrolls, income, taxes, and other figures for their clients. They work the normal business hours logging information and working out figures and numbers for them. However during the tax season, they work around the clock practically. They open earlier, and close later for the convenience of their clients trying to rush into the door last minute to file for their tax returns. During this time, is when accountants ask themselves why they chose the profession. Some just get used to it after time, and see it as the time of year when they could double their own income from the influx of clients and their need for accounting services. One thing is for sure, a few weeks after April 15th, all accountants feel the ease on their brains as a whole. They can now relax and take part in more activities they weren’t able to in the months beforehand.
Salaries in accounting can depend on the field one works in and the time spent there. For example, as a public accountant you can expect to make anywhere from $46k -$57k annually in a small firm, and $57k-$69k annually in a large firm as a person with one to three years of experience. Those who have graduate degrees or additional certifications, as the previously discussed CPA certification, can expect to see 10% more income than these listed. These are based on a 2010 salary guide. For those who are looking to become partners in a public accounting firm see an average of $150k-$200k annually by the same guide. These accountants can see a growth in those salaries after having the firm open for few years and in the long run. Auditors in a mid sized company make a median salary of $60k annually, while ones in a large company can see a median salary of $62k annually. The accountants that make the least amount of money entry level are those working for the government and state. The salary for entry level federal accountants was $35,673. For state entry level accountants, it was $36,223. The highest salary for an accountant can go to a chief financial officer, followed by a financial controller, and then the accounting manager, with certified public accountants not far behind.
Accountants must really enjoy their career and job duties to be able to complete it. When guidance counselors speak to students in regards to their future plans, they always talk about the top earning positions to them rather than steering them into the direction the student may want. A student that may want to become a painter (artistic) may be told there is no money in that profession and instead to pursue a medical career. Likewise, someone may get steered into being an accountant and simply because they are good in math. The truth is for this type of position, your full attention and desire has to be in it or else you won’t be effective in it. Accountants have to have a passion for their work, and be able to handle all the level of stress that come along with the position. If a high school graduate wants to become an accountant and is completely sure of it, or develops an interest during the ‘liberal arts’ (first 2 years) of college, then they should take the right steps in becoming one. This would consists of them declaring accounting as their major and taking the required courses to acquire their degree. A smart move would be to intern or work at an accounting firm during their time in college to gain a perspective for the job, and perhaps network with contacts for future employment. It would definitely be wise for them to consider going to graduate school and seeking an MBA or perhaps looking into a CPA certification if they wanted to be a public accountant. The added education will not only benefit them in the form of knowledge but also with the possibility for a higher salary over time.
Accountants are professionals that we can all be happy exist, if were aren’t one. For most people organizing financial information is an added stress to their profession or everyday life. This is why we are grateful for accountants and the service they can provide for us whether we’re a mother, father, business owner, corporate manager, etc..