Accountants and Auditors

Accountants and auditors help make sure that the nation’s firms are run efficiently, its public records are kept accurately, and its taxes paid properly and on time. They love sitting at a computer and analyzing financial reports and preparing financial documents for clients. Many workers also provide budget analysis, financial and investment planning, information technology consulting, and limited legal services. Specific job duties vary widely among the four major fields of accounting: public, management, government, and internal.

Public accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients, who may be corporations, governments, nonprofit organizations, or individuals. Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms.

Management accountants record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. Usually, management accountants are part of executive teams involved in planning or new-product development.

Government accountants and auditors work in the public sector, maintaining and examining the records of government agencies, and auditing private businesses and individuals whose activities are subject to government regulations or taxation. Many of these workers make sure businesses and individuals follow the strict laws, regulations, and tax codes established by government agencies.

Internal auditors verify the accuracy of their organization’s internal records and check for mismanagement or fraud. Internal auditing is an increasingly important area of accounting and auditing. They also review company operations—evaluating their efficiency, effectiveness, and how well the company follows laws and government regulations.

Increasingly, accountants are also assuming the role of a personal financial advisor. They help them develop personal budgets, manage assets and investments, plan for retirement, and recognize and reduce exposure to risks.

Employment

Accountants and auditors held about 1.1 million jobs in 2002. They worked throughout private industry and government, but one out of five accountants worked for accounting, tax preparation, bookkeeping, and payroll services firms. Approximately 10 percent were self-employed.

Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated. Some individuals with backgrounds in accounting and auditing are full-time college and university faculty; others teach part time while working as self-employed accountants or as accountants for private industry or government.

Job Outlook

Employment of accountants and auditors is expected to grow about as fast as the average for all occupations through the year 2012. An increase in the number of businesses, changing financial laws and regulations, and increased inspections of company finances will produce many job openings in this large occupation.

As the economy grows, the number of new business will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice.

Education and Earnings

Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. Beginning accounting and auditing positions in the federal government, for example, usually require four years of college (including 24 semester hours in accounting or auditing) or an equivalent combination of education and experience. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting.

Previous experience in accounting or auditing can help an applicant get a job. Many colleges offer students an opportunity to gain experience through summer or part-time internship programs conducted by public accounting or business firms. In addition, practical knowledge of computers and their applications in accounting and internal auditing is very useful for jobseekers in the accounting field.

Professional recognition through certification or licensure provides a distinct advantage in the job market. CPAs are licensed by a State Board of Accountancy.

In 2002, the typical annual earnings of accountants and auditors were $47,000. In 2002, typical annual earnings in the industries employing the largest numbers of accountants and auditors were:

If you are interested in this occupation or are wondering about related occupations, use the links below to continue your exploration. Always remember, the more effort you put into exploring possible careers, the easier it will be for you to discover the best career choices for you!

Bureau of Labor Statistics, Occupational Outlook Handbook: http://www.bls.gov/oco/.

O*NET OnLine, Occupational Information Network: http://online.onetcenter.org/.