Our Guide to Becoming an Accountant

How to Become an Accountant

Are you considering becoming an accountant ? Whether you have earned an undergraduate degree in report or a wholly different field, there are many paths to a career in accounting .
account can be a stable profession, with higher-than-average problem satisfaction rates and earning potential. In fact, a sample study of 16,000 workers found that accountants and auditors are least probable to leave their jobs. Accountants and auditors besides reported the highest job satisfaction levels among all careers sampled .
This study surveyed only a small divide of accountants, but it is not hard to understand why they reported such positive feedback about their occupations. Accountants receive a median wage of $ 70,500, and the job growth is arsenic flying as average occupations, according to the Bureau of Labor Statistics.

If you are considering a career in account, read on for a bit-by-bit lead on how to become an accountant and memorize about different certifications you can pursue in the field .

How to Begin Your Accounting Career

If you have a solid work ethic and you are skilled with numbers, you may find a career in accounting to be rewarding. To prepare for your account career, ask yourself :

  • What sector do I want to work in — public, private or financial services?
  • What areas of accounting are interesting?
  • What areas of accounting are not of interest?
  • How much time am I willing to dedicate to my education in accounting?
  • What level of qualifications do I need for my desired accounting role?

Keep in mind: You do not need to know precisely what specialization you wish to pursue or what company you want to work for. however, you should develop an understand of the aspects of the report industry that matter to you .

5 Steps to Become an Accountant

There is no one-size-fits all lead on how to become an accountant. Some people start with an undergraduate degree in another field, such as occupation or data skill, before opting to enter into a knight bachelor ’ s or master ’ sulfur in accounting program. Others decide to pursue a certification like a certified management accountant ( CMA ), while others opt to distinguish themselves with a headmaster ’ mho in accounting.

however, there are some general steps you can take to move into a career as an accountant. here is a breakdown of one path you can take, with personalize choices for you to make along the way.

  1. Earn a Bachelor’s Degree For entry-level accountancy positions, a knight bachelor ’ second degree is the standard minimum necessity. A bachelor ’ s degree in account provides you with a foundational cognition of accounting principles and theories.

    It is during this time that you would learn the fundamentals, such as Generally Accepted Accounting Principles ( GAAP ). additionally, you will take courses like auditing and accounting information systems. Whether you want to work in the populace sector, individual sector, or serve in the fiscal services diligence, obtaining a knight bachelor of account is one ideal starting point.

    Many bachelor ’ second in report students besides work a interns in firms to gain the hands-on have employers like to see on resumes. many of those accounting firms end up hiring their interns for full-time jobs. For example, Deloitte hires more than 3,000 interns each year, many of whom are hired as full-time employees at the tauten.

  2. Decide Between Becoming an Accountant and CPA You may have learn of the term certified public accountant ( CPA ) when looking into becoming an accountant. This is a certification an accountant can pursue to stand out as a qualified accounting professional.

    All CPAs are accountants, but not all accountants are CPAs. CPAs must take an extra footprint and fulfill rigorous country requirements to earn their licensure.

    Employers realize the measure of a CPA license, with many firms offering bonuses to employees who obtain a CPA license. PwC, one of the “ Big Four ” account firms, states :

    “ PwC offers significant incentives to those who obtain their CPA and early primary coil credentials ( CFA, CISA, CIA ) early, arsenic well as reimbursement and educational programs to help you achieve this finish. ”

    It is not uncommon for firms to offer employees incentives to obtain a CPA license. CPAs earn more and can perform more duties than accountants. There are besides other accounting certifications employers like, such as fraud examination certificate, home auditor certification and others.

  3. Pick an Accounting Specialty quite than merely being an accountant, you should aim to be an accountant skilled in a particular sector. This could be forensic account, personal finance planning, or a host of other specialties. A major benefit of accountant specialization is that it makes you valuable to likely clients. As a endowment learning drawing card for RSM ( once McGladrey ) shared :

    “ You ’ ve got to be very open to specialization, because that ’ s the way of the world. specially nowadays with the way there are sol many industry standards, clients want people who are specialists within industries. ” — Jennifer Busse

    Consider your interests and the type of account you could see yourself doing on a day by day basis. Examples of accounting specialties include :

    • Tax account
    • Business evaluation
    • Nonprofit accounting
    • Government finance
    • Auditing
    • Environmental accountancy
    • International account
    • Information management and engineering assurance
    • Personal finance accounting

  4. Earn a Master’s in Accounting Degree (Optional) Despite the growth of the diligence, account remains a competitive field. To work at top firms and compete for lucrative roles, it is necessary to stand out from other accountants. have and department of education help.

    If you are unable to devote yourself to full-time on-campus study, decide whether an on-line master ’ sulfur in account is right for you. Earning a master ’ mho in account can give you deeper cognition of the industry and increase your earning potential. It besides signals your work ethic, determination and genial aptitude to employers.
    As one HR director put it :

    “ In our firm, advanced degreed students right out of school are more attractive to us. We know they come in ready to go straightaway to work, and have more know and department of education in tax and audit. ” — Karen Mattull, film director of HR at BeachFleischman.

    If you hold a bachelor ’ s degree—even one related to accounting—you are eligible to apply to a passkey ’ randomness in accounting plan. You will probable have to take extra courses to build your foundational accounting cognition. Look into different alumnus accounting programs to understand what schools would accept your degree in their overcome ’ sulfur in accounting program. If you are worry about the GRE or GMAT prerequisite for an account master ’ mho program, there are some programs that waive the GRE and GMAT for eligible individuals.

  5. Obtain Accounting Certification once you are an accountant, pursue certificate to enhance your skill set and credibility as a professional. Accounting certifications vary and you can earn more than one. The CPA certificate is the most wide known, but there are others like the Certified Management Accountant ( CMA ) and Enrolled Agent ( EA ) that can help propel your accounting career. Below is a look at some of the most democratic accountancy certifications :

Other Types of Accounting Certifications

A CPA authentication is well known and respected, but there are other certifications that can enhance your professional stand :

Certified Management Accountant (CMA)

If you are matter to in honing both your finance and managerial skills, the CMA authentication is a big choice. This authentication allows you to build strategic management skills, equipping you to pursue acme roles such as headman fiscal officer .
The Institute of Management Accountants issues the authentication. As the organization explains :
“ CMAs can explain the ‘ why ’ behind numbers, not just the ‘ what. ’ And that can give you greater credibility, higher earning electric potential, and, ultimately, a seat at the leadership table. ”

Chartered Financial Analyst (CFA)

The CFA authentication signifies that one is a specialist in investment management. Earning this certification is a very byzantine work that includes a three-tiered examination sequence and becoming contribution of a local CFA chapter. The amount of solve invested in obtaining the certificate is offset by the eminent restitution on investment being a CFA yields. If the stock grocery store appeals to you, and you desire a challenge, look into this authentication .

Certified Internal Auditor (CIA)

Some certifications like the CMA open the door to many different career paths ; some are designed for a more specific use. If you want to work as an hearer, the Certified Internal Auditor documentation can enhance your credibility. While the examination is still unmanageable, it is less time-consuming and less expensive than CPA or CMA processes .

Enrolled Agent (EA)

The Enrolled Agent ( EA ) certificate focuses on tax law. Accountants with this authentication are well versed in U.S. tax code. many professionals who desire the rehearse freedom enjoyed by CPAs choose for an EA certification because it requires less education and feel. The EA authentication is the highest reservation awarded by the IRS. The IRS explains the exemption EAs have :
“ Enrolled agents, like attorneys and certify public accountants ( CPAs ), have unlimited practice rights. This means they are nonsensitive as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before. ”
This documentation does not hold the like respect as a CPA license, but it is hush a utilitarian means to boost your credentials .

Tips on Passing the CPA Exam

The CPA examination can be unmanageable and requires a great cope of preparation. Before you sit for the examination, you have to meet your state ’ s educational requirements .
The examen has four sections :

  1. Auditing and Attestation (AUD)
  2. Business Environment and Concepts (BEC)
  3. Financial Accounting and Reporting (FAR)
  4. Regulation (REG)

To pass the examination, the Association of International Certified Professional Accountants ( AICPA ) suggests utilizing CPA Exam Blueprints. These survey resources are a guide to the real examination. They lay out the format and score of the screen and provide a spirit at what will be tested .
The AICPA recommends forming a support net to prepare for the CPA examination, which requires about 300 to 400 hours of preparation. As you can imagine, the CPA is no small undertaking. Using the resources provided by the test administrator will aid in successful readiness.

Finding Entry-Level Jobs for Accountants

Before you become an accountant, you must besides understand how to find work as an accountant. Depending on your qualifications, the jobs open to you will vary in province and wage. When just starting as an accountant, building up experience is crucial .
here are some tips to find a job as a new accountant :

1. Utilize Your Network

Knowing the right people can be the deviation between landing an consultation or wholly missing an opportunity. As a 2019 Job Seeker Nation surveil noted :
“ about half of respondents besides hear about jobs by password of mouth via friends, while 37 % say they besides learn through professional networks. ”
You don ’ t have to know the CFO of a major accountancy firm to reap the benefits of network. talk to by coworkers who work in account, family friends who know people in the industry, and others with any connections to the field. You can besides visit conferences like the Accounting & Finance Show. Events like these welcome account professionals to network and learn .

2. Scour Job Boards

equally helpful as recommendations can be, it is important to take the job search into your own hands. Look for roles on job boards that appeal to your professional goals. The AICPA has a job board of finance and account jobs that is regularly updated. You can filter results based on your qualifications, desired wage and other factors .

3. Consider Part-Time Roles

You may have your sights set on a dream function with a bang-up wage. But how do you know if you will actually enjoy that influence ? Consider a half-time function to gain feel and boost your sum up without committing fully to the position. A part-time character besides allows you to get an inside look at a company and gives you tractability .

How to Start Your Own Accounting or CPA Firm

With the cognition of how to become an accountant under your belt, you may be interest in establishing a firm. Below you will find common steps to take toward starting your own firm ; however, it is besides crucial to conduct your own research .
Before you set up shop: Make sure you have a thorough agreement of the services you are legally allowed to provide. Based on your education and certifications, you are able to perform certain services and not others. For example, only CPAs are permitted to file reports to the SEC .

1. Draft A Business Plan

This plan will lay the foundation for your firm. Address the who, what, where and other logistic aspects of the business. It may be helpful to define your ideal aim grocery store. The services you offer should meet a want in the prey market, and the placement should be chosen with this group in judgment. early steps in this procedure include :

  • Determine startup costs and a source of funding.
  • Calculate first-year expenses.
  • Set pricing of services.
  • Create your business policies/procedures.
  • Define the mission of your business.

2. Legally Form Your Corporation

To protect yourself from electric potential lawsuits, separate yourself from your business. You can do this by forming a limited liability pot ( LLC ). There are a number of digital platforms that allow you to perform this significant step. An LLC is just one business structure option. You can opt to form another type, such as a partnership or S corporation .

3. Register Your Business

A chic footfall in setting up your business is to register it with either the submit, local, or federal government. To learn more about specific requirements, visit the U.S. Small Business Administration ( SBA ) web site. As the web site shares :
“ In some cases, you don ’ t need to register at all. If you conduct business as yourself using your legal name, you won ’ t need to register anywhere. But remember, if you don ’ t file your occupation, you could miss out on personal indebtedness auspices, legal benefits, and tax benefits. ”
You can besides apply for specific licenses and permits through SBA. These requirements vary from state to state .

4. Establish a Business Bank Account

Keep personal and business transactions separate. Doing thus will lead to fewer headaches when it comes clock time to report expenses. It will besides keep a absolved line between you and your business. Take the time to set up a unique credit tease and bank report rigorously for business use .

5. Set Up an Online Presence

Make certain likely clients can find your clientele easily. Set up a web site with information that people will find useful. Add an About Us page to introduce your business and build a relationship with site visitors. Make certain to parcel your qualifications to enhance your credibility. An FAQ page may be beneficial vitamin a well to address park inquiries .

6. Consider a Niche

Your firm can start by offering general accounting services and then gradually specialize. conversely, you can specialize from the get down if you have the qualifications and a big enough aim market. This measure is not necessary, but it can help differentiate you from early firms .

7. Market Your New Business

nowadays that your occupation is formed and ready to operate, you need to get yourself in front of electric potential clients. There are numerous ways to advertise. For example, you can utilize targeted social media advertising on platforms like Facebook and Linkedin. Another room to increase visibility is through bodily process in the residential district you serve. Form connections with other local small businesses and sponsor an event that allows you to be seen by more people. Be creative with market ; you do not need a boastfully budget to make an impact .

Do You Have What it Takes to Become an Accountant?

There are many paths you can take, from getting a specialization to starting your own tauten and beyond. The travel to becoming an accountant is challenging, demanding effort and intense study. Nevertheless, the wages includes higher-than-average salaries, a marketable career and room for growth .

generator : https://www.peterswar.net
Category : Finance

Related Posts

How to Calculate Credit Card Interest Rates

interest rates are one of the ways to work out how much it will cost you to use your credit card, along with other charges and fees….

What debt collectors can & cannot do

If you are dealing with a debt collector, you have protections under the law. A debt collector must not mislead, harass, coerce or act unconscionably towards you….

Can You Afford a New Home? How to Determine Your Homebuying Budget

Can You Afford a New Home? How to Determine Your Homebuying Budget As with any major purchase, determining what you can afford before you look for a…

Why Did My Credit Score Drop?

Why Did My Credit Score Go Down When Nothing Changed? sometimes your mark does change based on factors outside of your control, but most times your behavior…

Why Do I Owe Taxes To The IRS & How To Avoid Them

Are you wondering why you owe indeed much in taxes this year ? Want to make certain you never owe a big tax bill – or any…

The 5 reasons why your credit score might suddenly drop

Select ’ s editorial team works independently to review fiscal products and write articles we think our readers will find useful. We earn a perpetration from affiliate…