How To Become An Accountant

A Step-by-Step Guide to Starting a Career as an Accountant

Accountants manage a company’s financial reports, ledgers, and records. They also handle the books of accounts. They must also ensure these reports are accurate. They must also ensure these reports are disseminated on time to all relevant stakeholders.

All these activities require accountants to have a particular skill set. This step-by-step guide will tell you how to achieve those skills so that you can start your career in accounting.

Please check out the linked job description article to learn more about what an accountant does.

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Step 1: Figure Out Your Strengths and Weaknesses

Aspiring accountants will need to have high numeracy and analytical skills. They will also need to manage large amounts of data daily. They must have the technical know-how to manipulate and transform it into useful information.

Education or on-the-job experience can provide some of these skills. Yet, someone with a natural propensity towards handling numbers would be better suited to an accounting role.

Knowing your strengths and weaknesses can be essential to charting your career.

Check out the following qualifications article to see what skills are necessary to excel in an accounting role.

Step 2: Strengthen Your CV With the Right Qualifications

To become an accountant, pursue a finance, business, or economics bachelor’s degree. Depending on the role, you might need more qualifications. A master’s degree in accounting is one option, although not all accountants have one. A Master’s in Business Administration can usually further an existing career. Yet, a formal Chartered accounting qualification is necessary for the most challenging and rewarding roles in accounting.

Securing one of these qualifications can be quite a long and drawn-out process. It requires considerable time and effort on the part of the candidate.

Yet, the results can be rewarding. Chartered accounting professionals can expect to earn more. Many more opportunities will open up for them. You can find out more about these qualifications in the following qualifications article. Accountant CV information is available here.

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Step 3: Internships and Work Experience

Better-paying accounting jobs need considerable experience. Thus, internships are the easiest way to gain experience at the start of a career.

Years of on-the-job experience at an entry-level accounting job can follow. An advanced qualification, such as a formal Chartered Accountancy certification like ACA, can also follow.

Securing senior-level accounting positions such as Chief Financial Officer requires a lot of commitment.

Thus, those at the top of their field are professionals who are always in high demand. They often end up working as independent consultants with very high pay, especially in the private sector.

You must understand the accounting aspects that may interest you and be aware of them when it’s time to start your accounting career. The breadth and scope of an accountant’s work are vast. Job opportunities exist in the private and public sectors, including government agencies. It’s also possible to start one’s firm.

Step 4: Education Requirements for Accountants

Many accountants hold bachelor’s degrees in accounting or similar fields. A bachelor’s degree is required to become a Certified Public Accountant.

In some places, CPAs may need to take advanced coursework. This includes classes focused on auditing, tax, and reporting practices. Many CPAs choose to pursue an MBA or bachelor’s degree in accounting.

If you want an accounting career, you need certification. This could be internal auditing, management accounting, or forensic accounting.

CIMACPAACCAACACIA, and CTA are the most popular certifications. Each is appropriate for accounting. Yet, whether a Certified Public Accountant, Tax Accountant, or Cost Accountant, each has a different scope and focus.

Types of Accountants

While most people work in finance in various capacities, the accounting industry covers many roles. A typical accountant could be any of the following:

  • Cost Accountant

  • Forensic Accountant

  • Certified Internal Auditor

  • Tax Accountant

  • Management Accountant

Step 5: Accountant Salary and Career Outlook

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The BLS estimates that the median annual salary for accountants is $73,000, with entry-level positions around $45,000. According to BLS, the number of accountant jobs will grow by 7% in 2023, compared with average growth rates in other professions. More information on salaries is here.

Accounting positions are necessary across various fields. Accounting provides stability with booming foreign trade and complicated tax laws. Accounting salaries vary with specialisations, training, experience, and location.

Explore Accounting Careers

Accountancy professionals specialise in specific fields and businesses. Having a speciality helps people pursue their interests and improve their skills. This can also make them more attractive to specific employers.

In a traditional functional accounting career, aspiring accountants become finance managers. Then, they become financial controllers. Finally, they may become chief financial officers or finance directors. It is also not unheard of for accountants to become CEOs.

Certified public accountants often go beyond traditional careers. They might set up their own accounting firm, get involved with tax law, or specialise in tax advisory roles.

Jobs Outlook

The job outlook for accountants has rarely suffered a setback. This has been true irrespective of economic conditions.

Indeed, the demand for accounting skills has increased. It has been seen in various roles. These include accounting clerks, staff accountants, and management accountants. Also, internal auditor, finance director, and chief finance officer. Private organisations have recognised the continual need for managerial accounting. They also need general accounting support. This is aside from listed companies.

Step 6: Who Should Consider Becoming an Accountant?

Accountants generally have a detailed view. They should enjoy working with numbers, as their role covers all financial data. As they progress, accountants also need strong interpersonal and managerial skills. They will use these skills as they lead teams.

Accountants provide financial services to businesses and individuals with their skills. Anyone who has these attributes can excel in accounting.

Today’s business environment is uncertain and volatile. An accountant is crucial for managing a business’s financial performance and operational costs. They also handle all financial aspects of an organisation.

Aspiring accountants focus on understanding financial documents, financial statements, and financial records. They do this early in their careers. They also handle tax preparation and file reports. The profession’s flexibility makes the career path rewarding.

Step 7: What Does an Accountant Do?

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Financial management is an essential part of any organisation. Despite the advancement in technology (AI, RPA, and chatbots), the role of an accountant is still very much in need and highly valued.

Given the variety of roles, there is no standard job description for an accountant. Yet, typical tasks include preparing financial statements, examining financial records, financial reporting, assessing financial risks, managing financial operations, and providing insights to make sound financial decisions.

For example, a Certified Management Accountant can develop managerial and financial management skills. Developing strategic planning skills will also give you the required skills for various leadership and financial positions.

CMAs can explain the ‘what’ behind numbers, not just ‘the why’, which will help you gain credibility and bolster your earning potential.

The Certified Internal Auditor certification will focus more on risk assessment. It will also focus on business process audits and financial record analysis.

Step 8: Finding Entry-Level Jobs for Accountants

Based on qualifications, the positions held will differ in duties and salaries. Having a good understanding is vital to becoming a good accounting professional.

Accounting students usually get internships after university in private or public companies. The internships offer an accounting programme that blends studying with work experience.

Usually, the entry point is the accounting clerk, sales ledger clerk, or purchase ledger clerk.

Scour Job Boards

Although suggestions are helpful, take your job searching into your own hands. Find job postings that are suitable for you. AICPA’s job boards provide jobs in finance and accounting.

You can also use LinkedIn or job boards on accounting bodies like CIMA and ACCA. They help you target specific companies or locations.

Get a Bachelor’s Degree

A bachelor’s degree will simplify the path required for accounting qualifications. Accounting jobs do not require a high level of training and education. Yet, having a degree can make you more attractive and increase your salary. Accountants pursue degrees in accounting, financial accounting, or auditing.

Step 9: -Tips for Passing the Chartered Accountant Exams

Chartered accountant exams are challenging and require extensive preparation. Plenty of companies offer study support, which the employer often funds. Although not required or mandatory, such companies provide a flexible study method that can sit alongside a career.

An accounting degree will give you a competitive advantage. Internship programmes combine on-the-job experience. This experience is invaluable for sitting exams, as one will come across various job topics.

Training companies usually offer exam tips. Lessons focus on past examination papers. They also provide helpful exam techniques. For example, time management, using keywords, and addressing questions.

Most accountants attend classes after work or at weekends while doing their daily jobs.

Step 10: How To Start Your Own Accounting or CPA Firm

You could set up your own company if you’ve already studied accounting. Get acquainted with the legal services you can use before starting. You should have mastered the necessary knowledge to carry out certain activities. This might depend on your education or certification. For instance, only a CPA can report to the SEC.

Consider CPA Licensure

The CPA is a professional accountant. Yet, only some accountants are CPAs with considerable experience. Compared to other accountants, the CPA has more personal responsibility. Only CPAs can be appointed auditors for the Securities and Exchange Commission. Some firms want accountants who have CPAs in their offices. In most cases, CPA candidates must meet strict educational requirements. They must also pass qualifying exams and show at least two years of accounting experience. In some states, CPA certification must include continuing educational activities.

To learn more about a career as an accounting director, please visit our resources page, or search for accounting director roles here.

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