Accounting career options

The main purpose of accounting is to record business transactions and provide financial reports based on which success of a business can be estimated. In this way accounting directly relates to a business and its every day operations.

In practice activities in the accounting area are broader than just a recording of business transactions and preparing financial statements.

Accountants also can be responsible for preparation of information for management on different aspects of business operations, efficiency, be involved in business planning and forecasting, analysis of potential business development trends and accept many other responsibilities.

A lot of Chief Financial Officers (CFOs) working in large companies have accounting background, as such background is a basis for preparation and understanding of the financial statements and reports, enabling to judge on the financial position of the company they are working for and make appropriate financial decisions.

Considering job in accounting area the following accounting career options can be outlined:

Financial accounting

Functions of an accountant cover the essence of the accounting, i.e. analyzing and recording business transactions, summarizing them, preparing general ledger accounts, trial balances and financial statements. These are the main functions. Depending on the entity where the accountant works such functions can be extended and cover more responsibilities, like assisting the management with managerial accounting, preparing forecasts to set up future business development plans and many other functions.

In case the company has a complex structure and has a separate accounting department, such department usually includes a number of accounting employees performing different functions and responsible for separate accounting areas, like inventory accounting, accounts receivable accounting, bank and cash accounting, non-current assets accounting and other.

Auditing

auditors check financial accounting data and financial statements in private or public companies. As a result of their work auditors provide an opinion whether financial statements present true and fair view of the financial position of the company being audited. Auditing covers only inspection of financial statements and supporting financial data. Auditors do not evaluate whether the operations of the business are efficient.

More experienced auditors are involved in transaction advisory services, advising investors on mergers, acquisitions, perform valuation of businesses.

Internal auditing

internal auditors check all the operations of the company and report to the management on the efficiency of such operations, on the efficiency of resources usage, functioning of internal controls and possible fraud actions. Internal auditing covers more broad functions than checking the financial statements and supporting financial data.

Other accounting career areas:

Managerial accounting

covers only preparation of managerial information and management reports based on the work results of financial accountants. Such functions do not cover analysis and record of business transactions. Managerial accountants use data prepared by the financial accountants, analyze it in more detail and provide required information to the management for business management decisions

Planning and budgeting

these functions also do not cover analysis and record of business transactions. The responsibilities of budgeting/planning cover preparation of short-term and long-term forecasts and financial plans for business development and monitoring of such plans. Planning/budgeting also covers preparation of budgets or business plans to obtain financing from credit institutions to finance business operations

Tax accounting

tax accountants are responsible only for calculation and reporting of taxes the business is liable to pay

Own accounting/bookkeeping business:

One of the accounting career options is to start and develop your own accounting business, which if appropriately structured, planned and developed, might be a very exciting and profitable opportunity allowing to create loyal customers base and become financially independent. However first of all you MUST have an experience, knowledge and reputation.

Therefore before starting your own accounting business it is extremely important to have excellent theoretical background and professional experience to take such a responsibility. Also you have to be willing work a lot not only on your direct accounting routine, but also search for customers, sell your services and maintain client relationship, which while being employed as a financial accountant, auditor, or work as an employee in other accounting area will not require to do such tasks.

However taking into account pro’s and con’s, opportunity to start your own accounting/bookkeeping business deservers time to be discovered in more detail. Look here for more resources on the business planning and establishment.

Conclusion:

As a starting point in case you do not have any professional experience, working in the auditing area is highly recommended. Auditing allows quickly gain professional experience and learn practical aspect of accounting, be involved in inspection of financial statements in different organizations and businesses. Usually high workload and significant overtime is required as audit is highly seasonal and audit projects have strict deadlines. However such hard work pays off. You have to be determined and willing to learn fast. Having such professional experience later on you will be able to make a next step in your accounting career, either in the same area of auditing growing professionally in the company you work or choosing another career path.

Want more information on accounting? Learn Accounting Basic with our Accounting Basic Video Course. This is a detailed video course, helping you to learn accounting in a step by step manner. You can watch videos, you can print out video presentations, in this course you will find plenty of explanations and practical examples, which are essential to learn and understand accounting.