On This Page

1. What is an Accountant?

2. Roles and Responsibilities

3. What Do Accountants Do?

4. Where Do Accountants Work?

5. Opportunities in Public Accounting

6. Opportunities in Financial Services

What is an Accountant?

An accountant is a professional who is responsible for keeping and interpreting financial records. Most accountants are responsible for a wide range of finance-related tasks, either for individual clients or for larger businesses and organizations employing them.

Several other terms are often discussed in conjunction with the phrase “accountant,” which can lead to confusion on what this career actually entails. For example, “accountant” and “bookkeeper” are phrases that are sometimes used interchangeably, yet there are several key differences between these job titles.

Typically, bookkeepers will have earned at least an associate degree and focus on recording financial transactions. Accountants, on the other hand, will have typically earned at least a bachelor's degree in accounting , and are tasked with interpreting financial information rather than simply gathering it.

In short, accountants can be bookkeepers but not all bookkeepers are accountants.

certified public accountant (CPA) is an accountant who has passed the CPA exam and has met state licensing requirements. So, all CPAs are accountants, but not all accountants are CPAs.

Accounting is a broad term that encompasses multiple different job titles and roles within organizations. There are three main types of accountants public accountants, management accountants, and government accountants all of which focus on different aspects of the profession. Internal and external auditors are also closely related.

Roles and Responsibilities

Although the daily duties of an accountant will vary by position and organization, some of the most common tasks and responsibilities of accountants include:

Ensuring the accuracy of financial documents, as well as their compliance with relevant laws and regulations

Preparing and maintaining important financial reports

Preparing tax returns and ensuring that taxes are paid properly and on time

Evaluating financial operations to recommend best-practices, identify issues and strategize solutions, and help organizations run efficiently

Offering guidance on cost reduction, revenue enhancement, and profit maximization

Conducting forecasting and risk analysis assessments

Additionally, accountants have a legal obligation to act honestly and avoid negligence in their practices. As such, they are also responsible for ensuring that their clients' financial records are compliant with the relevant laws and regulations.

What Do Accountants Do?

Accountants prepare financial records to ensure accuracy. While keeping records up to date, they ensure that financial transactions and operations adhere to applicable laws and guidelines. Accountants also compute taxes and confirm their client, company, or organization pays them on time.

Within companies, accountants work with executives and managers, often providing advice on how to minimize costs, boost revenue, and increase profits. They may supervise accounting clerks and staff as well.

To become an accountant, individuals need at least a bachelor's degree. A career in check out our website public accounting necessitates certification through the American Institute of CPAs (AICPA). The AICPA administers the Universal CPA Examination®, a four-part assessment of accounting knowledge and skills. CPAs work with small companies and large corporations alike.

Accounting professionals can also pursue a certification in management accounting. A certified management accountant (CMA) focuses on financial planning, strategic decision-making, and financial management for private companies.

Where Do Accountants Work?

Many accountants work full time in office settings. They can also work from home, especially if they work freelance, providing services to individual clients rather than a single company or corporation. Accountants may work as part of a team, but they are just as likely to work independently.

The accounting, tax preparation, bookkeeping, and payroll services industry employs the highest number of accountants and auditors in the United States. Finance and insurance companies and government bodies also employ accountants. The industries that pay the most for this profession include transportation, the federal government, and information services.

Opportunities in Public Accounting

The field of public accounting is dominated by the “Big Four” firms Deloitte, PwC, EY and KPMG and supported by many local and regional firms. Public accountants provide auditing, tax, forensic accounting, and advisory and consulting services for clients around the world. In-demand specialties within public accounting include tax preparation and planning, auditing services, and financial planning.

In the current business environment, many companies, particularly small and midsize firms, need help supporting clients with consumer assistance programs and changing compliance deadlines.

Public accounting firms often offer competitive pay and benefits and an opportunity to work with prestigious clients. Many also help support employees' continuing education, including earning the certified public accountant (CPA) certification.

Opportunities in Financial Services

The banking, lending and investment industries are always on the lookout for talented accounting and finance professionals. As lower mortgage rates continue to drive loan originations and refinance activity, staff are needed to help borrowers with mortgage and loan modifications. This industry also needs risk, compliance, audit, fraud and forensics specialists.

In the financial services sector, commercial banking offers a path for finance professionals to work in jobs ranging from bank tellers and retail loan officers to commercial credit analysts and commercial bankers. Specialty areas in investment banking include fund administration, clearing and settlement operations, asset management, and collateral and derivatives.

Careers in Different Areas of Accounting

It is often said that one of the biggest career decisions accountants make takes place very early on when deciding which general area of accounting to specialize in. This is because the entire career path with regard to the types of clients an accountant works with, the type of education and professional certification they'll need, the level of education they'll complete, and the very nature of the work they perform will be dictated by this decision.