Accounting
Accountants are the grown-ups in the room. Qualified accountants are in great demand and provide a critical and respected voice in the leadership of every organization. Accounting is a dynamic field, continuing to evolve through the sophisticated use of data and new modeling techniques.
1.4 million
people today
work in accounting and auditing*
61,700
more people projected to join from 2019-2029*
*U.S. Bureau of Labor Statistics
Accounting definition
Accounting is much more than number crunching. It’s the strategic practice of formally recording, analyzing, and communicating information about financial transactions. It’s consultative, data-driven work that impacts every corner of the modern business world.
Accounting duties
Accounting professionals play an important role in financial decision-making. They demonstrate a unique skill set that can address a variety of tasks that are integral to a functioning business. Typical accounting duties include:
- Payroll
- Tax reporting
- Preparing and analyzing financial documentation
- Property inventory recording
- Producing and ensuring proper records
- Identification of financial waste
- Prevention of financial criminal activity
- Financial planning
COMMUNICATION
If you can go beyond the numbers to extract insight and clearly explain meaning from data, your communication skills will set you apart. For example, this may include taking a complex set of charts and turning it into a conversation any department can understand.
LEADERSHIP
Developing your leadership skills will help you grow from within. When you take initiative on projects and speak up about your contributions, it demonstrates your investment in an organization as well as your capacity to lead others toward success.
DECISION-MAKING
Building strong decision-making skills requires a certain level of confidence and knowledge. When you know your company’s current standing and financial goals, you can make informed decisions and help move the company in a positive direction.
STRATEGIC THINKING
Ramping up your strategic thinking skills is key to delivering value in the business world. It requires the ability to see how disparate pieces of information fit together, quickly analyze all factors, and make the best decisions to help move businesses forward.
TECHNOLOGY
From new accounting tools to state-of-the-art devices, technology is rapidly changing the field. Accounting professionals who are skilled in the latest software and keep up with financial tech trends will have a competitive advantage in the workforce.
BUDGETING AND FINANCIAL ANALYSIS
Having a solid finance background can position you to take on greater professional responsibilities and apply your skills in projection and data-driven modeling.
Governmental accounting
Just about every level of government, from small municipalities to the Office of the President, relies on a government accountant to keep track of public spending.
Government accounting focuses on the valid expenditure and collection of monies as originally authorized.
These accountants provide expertise in the following areas:
- Appropriations
- Budgeting
- Taxes
- Special fees
- Fines and penalties
- Grants
- Reimbursements
While the federal government, and most specifically the Treasury branch, is the biggest employer of government accountants, state governments and hundreds of counties and cities also hire accounting professionals.
Private accounting
Private accountants are employed by a single company or organization to handle all internal financial matters. The work of a private accountant is usually audited by an external accounting firm.
Internal auditing
Auditors spend a significant amount of time examining financial and accounting records. They also look at the context of how those records were generated, with analysis that closely examines the programmatic operations of an organization.
Internal auditors are regularly involved in:
- Setting the tone of compliance with company policies
- Conducting fiduciary duties
- Taking decisive action when corrections are required
- Following up on identified issues
Forensic auditing
Forensic auditors have specialized training on how to spot fraud and its motivating causes so they can provide investigators with the critical evidence they need to pursue cases. This field has grown tremendously because of recent advances in technology, resulting in many new professional opportunities.
Financial accounting
Financial accountants are tasked with recording and aggregating financial transactions to produce detailed financial statements. The purpose of this area of accounting is to distribute financial information to external users of the information, such as creditors, lenders, and investors.
Managerial accounting
Individuals who specialize in this area can gain a broad understanding of financial management of budgets, marketing, operations, information systems management, and more.
Actuaries
Another specialization of managerial accounting involves actuarial data. Actuaries analyze an organization's financial data and use their knowledge of mathematics and statistics to estimate risks and returns.
Public accounting
Public accountants — better known as Certified Public Accountants or CPAs — work with businesses of all sizes. Many CPAs and CPA firms contract with clients to provide a range of services, such as:
- Public auditing (third-party certified examinations)
- Payroll services
- Tax filing and reporting
- General accounting processing
If a company is publicly traded, it will more than likely contract the services of a CPA to prepare and file its financial statements. CPAs also help organizations remain in compliance with government regulations.
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With 1.4 million people working in the accounting field and an additional 61,700 expected to join them between 2019 and 2029, the future is bright for experienced and educated accountants.
Job growth will be further fueled by technological advancements. Automation is transforming entry-level accounting duties and creating a greater need for managerial accountants to handle complex responsibilities, such as:
- Programming
- Querying
- Compliance
- Maintenance
- Financial system creation
- Network administration
- Computer science
Here’s a brief look at where the industry is headed based on research conducted by Burning Glass Technologies:
Automated accounting processes
Compliance functions will become more and more automated. This will empower accounting professionals to streamline tedious tasks like data entry and to focus on job aspects that can’t be handled through artificial intelligence, such as financial consulting.
Rise of cloud-based accounting
Cloud-based accounting software lowers the risk of accounting errors and gives clients access to their financial data from anywhere. As more firms work remotely to support businesses with financial data in real time, data security will be paramount.
Elevated job responsibility
With access to the latest digital tools, accounting professionals are expanding their advisory services. Leaders in the profession are transitioning from short-term bookkeeping and compliance work to becoming forward-thinking consultants who equip clients with strategic, in-depth insights.
Hybrid skills in high demand
Specialized accounting professionals are in high demand and low supply. It’s often difficult for employers to fill accounting roles with the right candidates — those with specialized skills and advanced education. Data indicates that filling certain accounting positions can take up to two months or more.
No matter what area of accounting you may be interested in, new technology is being implemented by employers across industries and will continue to shape the future of the profession. Those willing to adapt will not only stay relevant in the accounting field but will also be highly sought after by employers.
Top 10 skills in the accounting industry
In the accounting industry, 50% of the fastest-growing skills relate to some form of software, while the remaining 50% require technological competence.
Here are the top 10 skills that will see the highest projected growth:
Skill Cluster |
Projected Posting Growth (2018-2023) |
|---|---|
| Talent management | 83% |
| Enterprise resource planning (ERP) | 75% |
| Employee training | 67% |
| Advanced Microsoft Excel | 52% |
| Microsoft Office and productivity tools | 48% |
| Human resource management systems | 46% |
| Budget management | 41% |
| Customer relationship management (CRM) | 38% |
| Administrative support | 33% |
| Key performance indicators (KPIs) | 33% |
Source: Burning Glass Occupational Insights, 2019
Outlook for new graduates
If you have a natural proficiency for math and an interest in finance, investing in an accounting education should align well with your abilities. But it can do more than that by increasing your value in the workforce.
Businesses and companies across every industry look to accountants to keep their organizations running in top financial health. It’s an ever-present need that has only risen over time as new markets emerge, resulting in high demand for experienced and trained accountants.
According to the U.S. Bureau of Labor Statistics:
- More than 61,700 new accounting jobs will be created from 2019 to 2029
- Accountants and auditors earn an average salary of $71,550
- The most experienced accountants earn $124,450 or higher
