Accountants and Auditors
Career, Salary and Education Information
What They Do: Accountants and auditors prepare and examine financial records.
Work Environment: Most accountants and auditors work full time. Some work more than 40 hours per week. Overtime hours are typical at certain times of the year, such as at the end of the budget year or during tax season.
How to Become One: Most employers require a candidate to have a bachelor's degree in accounting or a related field. Certification within a specific field of accounting improves job prospects. For example, many accountants become Certified Public Accountants.
Salary: The median annual wage for accountants and auditors is $77,250.
Job Outlook: Employment of accountants and auditors is projected to grow 7 percent over the next ten years, about as fast as the average for all occupations.
Related Careers: Compare the job duties, education, job growth, and pay of accountants and auditors with similar occupations.
Following is everything you need to know about a career as an accountant or auditor with lots of details. As a first step, take a look at some of the following jobs, which are real jobs with real employers. You will be able to see the very real job career requirements for employers who are actively hiring. The link will open in a new tab so that you can come back to this page to continue reading about the career:
Top 3 Accountant Jobs
Tax Accountant - Innovative CPA Firm
- Red Seat
- Minneapolis, MN
Now hiring a Tax Accountant or Senior Tax Accountant for our growing and innovative practice. Our tax accountants directly support business and individual tax clients in a collaborative and ...
Sr. Tax Accountant
- Chortek LLP
- Pewaukee, WI
Your Career as a Sr. Tax Accountant If you're a natural problem solver who loves working on a variety of projects, this is the career for you! As a Sr. Tax Accountant , you will work with a wide range ...
Staff Accountant in Walnut Creek - pay up to $74K
- Walnut Creek, CA
Are you an Accountant wanting to work with one of the fastest growing companies in the Walnut Creek area with amazing benefits? Well look no further! To apply for this position please send your ...
Top 3 Auditor Jobs
- RAD Diversified
- Ontario, CA
We are looking for a Internal Auditor to coordinate financial audits throughout the year. The ideal candidate will be an exceptional communicator with an analytical mind, attention to detail and ...
- Clinicas del Camino Real
- Camarillo, CA
The Compliance Claims Auditor is responsible for all preparation, presentation, submission and response to Federal, State and Health Plans regarding all auditing requests. The Compliance Claims ...
Internal Auditor County Auditor Office
- Taylor County Human Resources
- Abilene, TX
Description: The internal auditor functions to provide assurance of appropriate adherence to county policies and procedures from an outside perspective. This is accomplished through risk based ...
What Accountants and Auditors Do[About this section] [To Top]
Accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently.
Duties of Accountants and Auditors
Accountants and auditors typically do the following:
- Examine financial statements to ensure that they are accurate and comply with laws and regulations
- Compute taxes owed, prepare tax returns, and ensure that taxes are paid properly and on time
- Inspect account books and accounting systems for efficiency and use of accepted accounting procedures
- Organize and maintain financial records
- Assess financial operations and make best-practices recommendations to management
- Suggest ways to reduce costs, enhance revenues, and improve profits
In addition to examining and preparing financial documentation, accountants and auditors must explain their findings. This includes preparing written reports and meeting face-to-face with organization managers and individual clients.
Many accountants and auditors specialize, depending on the particular organization that they work for. Some work for organizations that specialize in assurance services (improving the quality or context of information for decisionmakers) or risk management (determining the probability of a misstatement on financial documentation). Other organizations specialize in specific industries, such as healthcare.
The following are examples of types of accountants and auditors:
Public accountants perform a broad range of accounting, auditing, tax, and consulting tasks. Their clients include corporations, governments, and individuals.
Public accountants work with financial documents that clients are required by law to disclose. These include tax forms and balance sheet statements that corporations must provide to potential investors. For example, some public accountants concentrate on tax matters, advising corporations about the tax advantages of certain business decisions or preparing individual income tax returns.
Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms. Publicly traded companies are required to have CPAs sign documents they submit to the Securities and Exchange Commission (SEC), including annual and quarterly reports.
Some public accountants specialize in forensic accounting, investigating financial crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and potentially criminal financial transactions. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine if an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials.
Management accountants, also called cost, managerial, industrial, corporate, or private accountants, record and analyze the financial information of the organizations for which they work. The information that management accountants prepare is intended for internal use by business managers, not by the general public.
Management accountants often work on budgeting and performance evaluation. They also may help organizations plan the cost of doing business. Some may work with financial managers on asset management, which involves planning and selecting financial investments such as stocks, bonds, and real estate.
Government accountants maintain and examine the records of government agencies and audit private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by federal, state, and local governments ensure that revenues are received and spent in accordance with laws and regulations.
Internal auditors check for mismanagement of an organization's funds. They identify ways to improve the processes for finding and eliminating waste and fraud. The practice of internal auditing is not regulated, but The Institute of Internal Auditors (IIA) provides generally accepted standards.
External auditors perform similar duties to internal auditors, but are employed by an outside organization, rather than the one they are auditing. They review clients' financial statements and inform investors and authorities that the statements have been correctly prepared and reported.
Information technology auditors are internal auditors who review controls for their organization's computer systems to ensure that the financial data comes from a reliable source.
Work Environment for Accountants and Auditors[About this section] [To Top]
Accountants and auditors hold about 1.4 million jobs. The largest employers of accountants and auditors are as follows:
|Accounting, tax preparation, bookkeeping, and payroll services||25%|
|Finance and insurance||9%|
|Management of companies and enterprises||7%|
Most accountants and auditors work in offices, but some work from home. Although they complete much of their work alone, they sometimes work in teams with other accountants and auditors. Accountants and auditors may travel to their clients' places of business.
Accountant and Auditor Work Schedules
Most accountants and auditors work full time. Some work more than 40 hours per week. Longer periods of work are typical at certain times of the year, such as at the end of the budget year or during tax season.
How to Become an Accountant or Auditor[About this section] [To Top]
Get the education you need: Find schools for Accountants and Auditors near you!
Most accountants and auditors need at least a bachelor's degree in accounting or a related field. Certification, including the Certified Public Accountant (CPA) credential, can improve job prospects.
Education for Accountants and Auditors
Most accountant and auditor positions require at least a bachelor's degree in accounting or a related field. Some employers prefer to hire applicants who have a master's degree, either in accounting or in business administration with a concentration in accounting.
A few universities and colleges offer specialized programs, such as a bachelor's degree in internal auditing. In some cases, those with associate's degrees, as well as bookkeepers and accounting clerks who meet the education and experience requirements set by their employers, get junior accounting positions and advance to accountant positions by showing their accounting skills on the job.
Many colleges help students gain practical experience through summer or part-time internships with public accounting or business firms.
Licenses, Certifications, and Registrations for Accountants and Auditors
Every accountant filing a report with the Securities and Exchange Commission (SEC) is required by law to be a Certified Public Accountant (CPA). Many other accountants choose to become a CPA to enhance their job prospects or to gain clients. Many employers will pay the costs associated with the CPA exam.
CPAs are licensed by their state's Board of Accountancy. Becoming a CPA requires passing a national exam and meeting other state requirements. Almost all states require CPA candidates to complete 150 semester hours of college coursework to be licensed, which is 30 hours more than the usual 4-year bachelor's degree. Many schools offer a 5-year combined bachelor's and master's degree to meet the 150-hour requirement, but a master's degree is not required.
A few states allow a number of years of public accounting experience to substitute for a college degree.
All states use the four-part Uniform CPA Examination from the American Institute of Certified Public Accountants (AICPA). Candidates do not have to pass all four parts at once, but most states require that candidates pass all four parts within 18 months of passing their first part.
Almost all states require CPAs to take continuing education to keep their license.
Certification provides an advantage in the job market because it shows professional competence in a specialized field of accounting and auditing. Accountants and auditors seek certifications from a variety of professional societies. Some of the most common certifications are listed below:
The Institute of Management Accountants offers the Certified Management Accountant (CMA) to applicants who complete a bachelor's degree. Applicants must have worked at least 2 years in management accounting, pass a two-part exam, agree to meet continuing education requirements, and comply with standards of professional conduct. The exam covers areas such as financial statement analysis, working-capital policy, capital structure, valuation issues, and risk management.
The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) to graduates from accredited colleges and universities who have worked for 2 years as internal auditors and have passed a four-part exam. The IIA also offers the Certified in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), Certified Financial Services Auditor (CFSA), and Certification in Risk Management Assurance (CRMA) to those who pass the exams and meet educational and experience requirements.
ISACA offers the Certified Information Systems Auditor (CISA) to candidates who pass an exam and have 5 years of experience auditing information systems. Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to 3 years of experience in information systems auditing, control, or security.
For accountants with a CPA, the AICPA offers the option to receive any or all of the Accredited in Business Valuation (ABV), Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS) certifications. The ABV requires passing a written exam, completion of at least six business valuation projects, and 75 hours of continuing education. The CITP requires 1,000 hours of business technology experience and 75 hours of continuing education. Candidates for the PFS also must complete a certain amount of work experience and continuing education, and pass a written exam.
Advancement for Accountants and Auditors
Entry-level public accountants can advance to senior positions with more responsibility. Those who excel may become supervisors, managers, or partners; open their own public accounting firm; or transfer to executive positions in management accounting or internal auditing in private firms.
Management accountants often start as cost accountants, junior internal auditors, or trainees for other accounting positions. As they rise through the organization, they may advance to accounting manager, chief cost accountant, budget director, or manager of internal auditing. Some become controllers, treasurers, financial vice presidents, chief financial officers, or corporation presidents.
Public accountants, management accountants, and internal auditors can move from one aspect of accounting and auditing to another. Public accountants often move into management accounting or internal auditing. Management accountants may become internal auditors, and internal auditors may become management accountants. However, it is less common for management accountants or internal auditors to move into public accounting.
Important Qualities for Accountants and Auditors
Analytical skills. Accountants and auditors must be able to identify issues in documentation and suggest solutions. For example, public accountants use analytical skills in their work to minimize tax liability, and internal auditors use these skills to detect fraudulent use of funds.
Communication skills. Accountants and auditors must be able to listen carefully to facts and concerns from clients, managers, and others. They must also be able to discuss the results of their work in both meetings and written reports.
Detail oriented. Accountants and auditors must pay attention to detail when compiling and examining documentation.
Math skills. Accountants and auditors must be able to analyze, compare, and interpret facts and figures, although complex math skills are not necessary.
Organizational skills. Strong organizational skills are important for accountants and auditors, who often work with a range of financial documents for a variety of clients.
Accountant and Auditor Salaries[About this section] [More salary/earnings info] [To Top]
The median annual wage for accountants and auditors is $77,250. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $47,970, and the highest 10 percent earned more than $128,970.
The median annual wages for accountants and auditors in the top industries in which they work are as follows:
|Finance and insurance||$79,310|
|Management of companies and enterprises||$78,540|
|Accounting, tax preparation, bookkeeping, and payroll services||$77,080|
Most accountants and auditors work full time. Some work more than 40 hours per week. Longer hours are typical at certain times of the year, such as at the end of the budget year or during tax season.
Job Outlook for Accountants and Auditors[About this section] [To Top]
Employment of accountants and auditors is projected to grow 7 percent over the next ten years, about as fast as the average for all occupations.
About 135,000 openings for accountants and auditors are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
See all accounting jobs.
Employment of Accountants and Auditors
Globalization, a growing economy, and a complex tax and regulatory environment are expected to continue to lead to strong demand for accountants and auditors.
In general, employment growth of accountants and auditors is expected to be closely tied to the health of the overall economy. As the economy grows, these workers will continue to be needed to prepare and examine financial records. In addition, as more companies go public, there will be greater need for public accountants to handle the legally required financial documentation.
The continued globalization of business may lead to increased demand for accounting expertise and services related to international trade and international mergers and acquisitions.
Technological change is expected to affect the role of accountants over the decade. Some routine accounting tasks may be automated as platforms such as cloud computing, artificial intelligence (AI), and blockchain become more widespread. Although this will allow accountants to become more efficient, this change is not expected to reduce overall demand. Instead, with the automation of routine tasks, such as data entry, the advisory and analytical duties of accountants will become more prominent.
|Occupational Title||Employment, 2020||Projected Employment, 2030||Change, 2020-30|
|Accountants and auditors||1,392,200||1,488,200||7||96,000|
A portion of the information on this page is used by permission of the U.S. Department of Labor.