Nature of the Work
Accountants and auditors help to ensure that the Nation’s firms are run
efficiently, its public records kept accurately, and its taxes paid properly
and on time. They analyze and communicate financial information for various
entities such as companies, individual clients, and
government.
Beyond carrying out the fundamental tasks of the occupation—preparing,
analyzing, and verifying financial documents in order to provide information
to clients—many accountants also offer budget analysis, financial and
investment planning, information technology consulting, and limited legal
services.
Specific job duties vary widely among the four major fields of accounting
and auditing: public, management, government accounting, and internal
auditing.
Public accountants perform a broad range of accounting, auditing, tax, and
consulting activities for their clients, which may be
corporations,
governments, nonprofit organizations, or individuals. For example, some public
accountants concentrate on tax matters, such as advising companies about the
tax advantages and disadvantages of certain business decisions and preparing
individual income tax returns. Others offer advice in areas such as
compensation or employee health care benefits, the design of accounting and
data-processing systems, and the selection of controls to safeguard assets.
Still others audit clients’ financial statements and inform investors and
authorities that the statements have been correctly prepared and reported.
These accountants are also referred to as external auditors. Public
accountants, many of whom are Certified Public Accountants (CPAs), generally
have their own businesses or work for public accounting firms.
Training, Other Qualifications, and Advancement
Most accountants and auditors need at least a bachelor’s degree in
business, accounting, or a related field. Many accountants and auditors choose
to obtain certification to help advance their careers, such as becoming a
Certified Public Accountant (CPA).
Education and training. Most accountant and auditor positions require at
least a bachelor’s degree in accounting or a related field. Beginning
accounting and auditing positions in the Federal Government, for example,
usually require 4 years of college (including 24 semester hours in accounting
or auditing) or an equivalent combination of education and experience. Some
employers prefer applicants with a master’s degree in accounting, or with a
master’s degree in business administration with a concentration in accounting.
Some universities and colleges are now offering programs to prepare students
to work in growing specialty professions such as internal auditing. Many
professional associations offer continuing professional education courses,
conferences, and seminars.
Employment
Accountants and auditors held about 1.3 million jobs in 2006. They worked
throughout private industry and government, but 21 percent of wage and salary
accountants worked for accounting, tax preparation, bookkeeping, and payroll
services firms. Approximately 10 percent of accountants or auditors was
self-employed.
Many management accountants, internal auditors, or government accountants
and auditors are not CPAs; however, a large number are licensed CPAs. Most
accountants and auditors work in urban areas, where public accounting firms
and central or regional offices of businesses are concentrated.
Job Outlook
Strong growth of accountants and auditor jobs over the 2006-16 decade is
expected
to
result from stricter accounting and auditing regulations, along with an
expanding economy. The best job prospects will be for accountants and auditors
who have a college degree or any certification, but especially a CPA.
Employment change. Employment of accountants and auditors is expected to
grow by 18 percent between 2006 and 2016, which is faster than the average for
all occupations. This occupation will have a very large number of new jobs
arise, almost 226,000 over the projections decade. An increase in the number
of businesses, changing financial laws, and corporate governance regulations,
and increased accountability for protecting an organization’s stakeholders
will drive growth.
Earnings
Median annual earnings of wage and salary accountants and auditors were
$54,630 in May 2006. The middle half of the occupation earned between $42,520
and $71,960. The top 10 percent earned more
than
$94,050, and the bottom 10 percent earned less than $34,470. Median annual
earnings in the industries employing the largest numbers of accountants and
auditors were as follows:
Accounting, tax preparation, bookkeeping, and payroll services $57,020
Management of companies and enterprises 55,560
Local government 50,120
Depository credit intermediation 49,380
State government 47,200
According to a salary survey conducted by the National Association of
Colleges and Employers, bachelor’s degree candidates in accounting received
starting offers averaging $46,718 a year in 2006; master’s degree candidates
in accounting were offered $49,277 initially.
Related Occupations
Accountants and auditors design internal control systems and analyze
financial data. Others for whom training in accounting is valuable include
budget analysts; cost estimators; loan officers; financial analysts and
personal financial advisors; tax
examiners,
collectors, and revenue agents; bill and account collectors; and bookkeeping,
accounting, and auditing clerks. Recently, some accountants have assumed the
role of management analysts and are involved in the design, implementation,
and maintenance of accounting software systems. Others who perform similar
work include computer programmers, computer software engineers, and computer
support specialists and systems administrators.
Sources:
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook
Handbook, 2008-09 Edition, Accountants and Auditors, on the Internet at
http://www.bls.gov/oco/ocos001.htm (visited May 27, 2008).
