What Qualifications Are Needed To Be An Accountant?

To begin a career in finance or audit, you must obtain the appropriate certification for your skills.  Global regulations affect the value of finance qualifications. Businesses must follow rules set by organisations like the Institute of Internal Auditors. Companies now hire employees with higher education and more certifications in finance and audit.

Accountants keep track of, handle, and analyse financial transactions and reports. In addition, they write reports about business and examine financial statements. Accountants oversee an organisation’s finances. This includes checking transactions, keeping records, and creating and submitting tax paperwork. An institution needs to report on its finances to improve its financial performance. The accountant is essential in creating and overseeing a company’s financial plan.

Please click the job description link to learn more about an accountant’s duties.

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Accountant Qualifications

The degree of difficulty and duration of accounting degrees differ between nations. In the US, having a CPA certification is important for finance jobs. In the UK and Ireland, ACA and ACCA credentials are more respected.

  • ACCA. To become an Associate Chartered Certified Accountant (ACCA), you must finish a bachelor’s degree or postgraduate programme. Then, you must pass 14 ACCA exams and have three years of related work experience. If you have ACCA status, you can work as an accountant in 170 countries. This includes the UK, USA, Canada, South Africa, Germany, Malaysia, New Zealand, and Singapore. The ACCA qualification and its benefits are increasingly being recognised in the U.S.A.
  • ACA. The Associate Chartered Accountant (ACA) is a well-known accounting qualification recognised worldwide. The Institute of Chartered Accountants in England and Wales (ICAEW) offers it. It is respected in over 160 countries, including Australia, Canada, China, India, and the UK. It takes 3–5 years to complete the ACA. You need knowledge, skills, and experience.
  • CPA. A bachelor’s degree in the US allows students to pursue a master’s degree in accounting. This is necessary to become a Certified Public Accountant (CPA). After that, they need one year of general accounting experience under a licensed CPA. A uniform CPA and ethics exam is also required in some US states. US CPAs who want to work internationally can do so with mutual recognition agreements (MRA). These countries include Australia, Canada, Mexico, Ireland, New Zealand, and Hong Kong.
  • Stb and WP. In Germany, there are two stages of qualifications: the Steuerberater (Stb), a tax advisor exam, and the Wirtschaftsprufer (WP), an auditor exam. To take the Tax Advisor exam, you need three years of tax advice practice with a bachelor’s degree or two years with a master’s degree. To take the auditor exam, you need four years of auditing practice with a bachelor’s degree or three years with a master’s degree.
  • Expert-compatible, DSCG, Commissaire aux comptes, DEC, Certificat d’aptitute. In France, to be a professional accountant, you must get a master’s degree in accounting studies. This degree takes five years to earn. After that, they must finish the DSCG and train at an accounting firm for three years. Finally, they must pass the final audit exam, the Diploma of Expertise Comptable (DEC). There are two routes to becoming a commissaire aux comptes (statutory auditor). The main route is to finish the Diploma of Expertise Comptable (DEC). You must complete 2/3 of the three years of practical accounting and audit practice training to qualify. To be a commissioner of accounts, you need the same qualifications as the DSCG. You also need three years of practical training.

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  • NivRA, Administratie Consulent. To become a registered accountant in the Netherlands, you must complete five years of practical training. You can enrol in a part-time programme after getting your master’s degree. The program lasts for two years. To become an accountant, you need to have a bachelor’s degree. After that, you must complete a year and a half of a part-time professional post-master’s programme. Additionally, you need to complete three years of practical training.
  • Certified Public Accountant, Licensed Audit Expert, Licensed Auditor. To become a Certified Public Accountant in Switzerland, you need a bachelor’s or master’s degree. You also need a job with an audit firm to pass certification exams. These exams cover mandates, auditing financial statements, and financial expertise. After earning a bachelor’s degree, you must complete 3 to 12 years of practical training to become a licensed audit expert. Following a bachelor’s degree, certification as a licensed auditor requires one year of practical training.
  • Reviseur d’entreprises, DAP (Diplome d’aptitude professionnelle), Experts-Comptables. To become a Chartered Accountant in Luxembourg, you need a master’s degree and three years of auditing experience. You must also pass nine exams, including the final DAP (Diplome d’aptitude professionnelle). To become an expert-compatible, you need a bachelor’s degree and three years of professional experience.
  • Dottori Commercialista, Revisore Legale Del Conti, and Esperto contabile In Italy, the primary qualifications for accountants are Dottori Commercialista (Chartered Accountant), Revisore legale Del Conti (Statutory Auditor), and Esperto contabile (Accountant). To become an accountant, you need a bachelor’s degree, three years of training, and passing a state exam. The former requires a master’s degree, three years of training, and passing a state exam.
  • Biegły resident. To become a statutory auditor in Poland, you need to complete higher studies or foreign higher studies. Both are considered the same. After that, you must have one year of accounting practice and at least a two-year internship supervised by a statutory auditor. Following this are ten written examinations and a final oral diploma exam.

In summary, multinational companies are consolidating finance processes globally. Experts project that the leading qualifications, such as ACCA, ACA, and CPA, will grow. We need to align international and European finance qualifications.

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Accountant Skills 

Accountants prepare financial statements and check transactional data for accuracy. Any mistakes can be catastrophic and lead to significant financial losses or even legal action. Thus, accountants must be thorough and deliberate with all the information they handle. A large volume of data passes through an accountant’s desk daily.

  • Regulatory and legal knowledge. Accountants deal with information that might become public or go to the government or tax authorities. Ensuring the accuracy of information in financial documents is thus of paramount importance. They must decide how to classify line items in financial reports to ensure accurate information. To classify expenses and depreciate assets for taxes, it’s essential to understand local tax laws. Another example is when they classify contingent liabilities. These include managing delayed payments or stressed client accounts. Accountants must know accounting standards like GAAP and IFRS and tax laws in different countries.
  • High level of numeracy. Accountants will spend most of their time dealing with numbers and tables. Even with special software, they must still be good at working with numbers, preparing reports, and manipulating data. They also need to be able to present information, check for errors, and do reconciliations.
  • Analytical skills because an accountant’s role is not always straightforward. Sometimes, creative solutions are needed to prepare reports and perform other tasks. “Business insights” means collecting and sharing vital information everyone can understand.
  • Business Experience. Accountants who know about the company’s general business operations will also benefit. This will help them understand the data they work with and find unusual data points in the company’s usual operations. In organisations, there’s an unwritten rule that accountants should know about non-accounting aspects. Depending on the company’s structure, an accountant may need to handle daily tasks and supervise payroll. This means things like tracking payments, issuing refunds, and so on. This requires some understanding of the core business activities of the company.

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  • Working under pressure and meeting deadlines. To run smoothly, businesses must meet deadlines for all operations, like accounting. You must submit regulatory reports and important tax statements without delay. The accounting department must submit regular reports for internal use. The company’s operations could be affected if these reports aren’t delivered on time.
  • Tech-savvy. Handling the vast amount of data a company generates manually is impossible or even necessary. Special software and business solutions handle the bulk of data management and storage. Such software is even capable of performing basic checks and generating standard reports. Accountants can use this software to make their lives easier and improve the quality of their reports. Knowing the latest features and how to use them well can be valuable.
  • Leadership and communication. Senior positions in accounting require leadership skills and practical communication abilities. Senior accountants must manage teams and work with other department heads and top management. They must work with the finance department and auditors for their duties.
  • Commercial Acumen. The words “commercial acumen” or “savvy” are things organisations value. Accounting technicians and number crunchers are no longer relevant. Businesses now require finance professionals with commercial insight and acumen. To understand financial records, you need analytical skills and knowledge of the outside world. As an accountant progresses up the corporate ladder, this skill will make a fundamental difference among peers.
  • Risk management. Often, the custodian of the risk register in organisations is the CFO, an accountant by trade. Accountants should understand and appreciate risk management and risk assessment throughout their careers.

Please refer to the CV building article for advice on creating a CV for an accountant.

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Accounting Job Roles

There are two main types of accounting careers: management accounting and financial accounting. Management accounting provides internal information. Financial accounting handles financial accounts and prepares statements.

In the past 20 years, new accounting qualifications have appeared. These qualifications allow financial professionals to specialise in various subjects within the field. These roles require different accounting skills and cover all financial aspects of a company. Such specialist roles include tax specialists, financial advisers, and audit specialists. There are different types of accountants, like financial analysts and management accountants. Another type are forensic accountants, who specialise in stopping and finding fraud.

The following list is not exhaustive, but it focuses on the most common roles:

  • Cost Accountant. This role in manufacturing focuses on analysing the product’s cost, variance, and standard costs. This role will also involve ABC-based financial reports.

  • Management Accountant. Management accountants assess company costs, optimise budgets, and provide crucial financial information. When preparing financial statements for analysis, specific skills are essential. These include cash flow and budget analysis. They must be more involved in accounting procedures, corporate finance, or accounting records. CIMA or ACCA qualifications would suit these roles. In a management accountant’s career, they can progress to financial controller, finance director, or CFO.

  • Corporate tax accountant. Working with small and large businesses to prepare tax documents in compliance with federal laws. The person in charge often has CPA or CTA certification. Their main job is to minimise business taxes and ensure accurate tax preparation, compliance, and filing. The role does not require a degree in tax law, as CPA and CTA qualifications provide the necessary background.

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  • Tax Consultant. Tax consultants offer timely and helpful tax advice to individuals and organisations. This advice helps with tax efficiency and compliance. A tax consultant helps accountants learn new skills and focus on different areas of finance. They advise businesses and individuals on tax consulting, financial risk, and personal finance.

  • Fraud Examiner.  This branch of the profession offers exciting and varied opportunities. Government agency employees, like those at the Securities and Exchange Commission, investigate internally. Generally, professionals working in company environments are commissioned to conduct internal investigations.

  • Forensic Accountant. Forensic accounting is a specialised job that has grown alongside regular accounting qualifications. Forensic accountants analyse financial transactions and processes for government agencies and banks.

  • Internal Auditor. Internal auditors have essential roles in businesses. They represent auditors within the business. They are independent of the finance and accounting departments. They also usually report to audit committees. Accountants analyse all parts of a business to gain valuable experience and ensure strong controls.

  • External Auditor. The ACA qualification is the most suitable for an accounting career within the Big 4 or public practice. Many accountants become external auditors to move up in corporate finance or become audit partners. An auditor knows financial statement preparation, internal controls, and accounting principles and procedures. Their specialization, too, involves a deep understanding of accounting software.

To learn more about an accounting career, please visit our resources page.

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