How To Become An Accountant: Accounting Degrees & Careers

Becoming an accountant requires advanced education, formal certification and a firm commitment to learning the trade. Along the way, prospective accountants need to answer a number of questions: Do I possess the qualities needed to become an accountant or CPA? Can I start a successful career after four years of college or do I need to earn a master's degree? Should I work for a large corporation or firm, or would I be better off on my own?

This comprehensive guide is designed to be a resource for individuals interested in a career as an accountant or CPA. Included are an explanation of what accountants do, a description accounting degrees, and a list of suggested steps one might take to get started.

How to Become an Accountant

Step 1: Earn the Right Degree

Although not required, most

accountants attend college and earn a bachelor's degree. However, a bachelor'sdegree in accounting or a related field is considered the minimum educationrequirement for those who plan to become a CPA. Some states even requireadvanced coursework beyond the normal bachelor's degree in subjects such asfinancial reporting, taxes, auditing and other non- accounting business areas. Atotal of 150 credit hours in accounting and related areas are commonly needed.Students interested in becoming a CPA should check the specific educationrequirements in their jurisdictions. Many CPAs also continue theirpost-secondary education and earn a master's degree.

Accounting degree programs are very popular and commonly available at collegesand universities throughout the United States, as well as through distancelearning. Prospective students should always confirm that a program is fullyaccredited before beginning a course of study.

Step 2: Pick a Specialty

Virtually all accountants and CPAs specialize in one or more areasof practice. The two general areas of specialization are public accounting andcorporate or business accounting. A number of sub-specializations also exist,such as environmental accounting, internal auditing, managerial accounting andtaxes. Often, the specialty you select coincides with the accounting degree youearned.

Step 3: Decide Between Accountant and CPA

There isa difference between an accountant and a Certified Public Accountant.Accountants (also referred to as "public accountants") are typically individualshired to work in the accounting departments of businesses, but lack several ofthe qualifications of a CPA. Accountants, for example, may not possess statecertification or licensure. Accountants can perform certain limited tasks, suchas the preparation of financial statements. They may also prepare tax returns ifthey have passed the required IRS test or received a Preparer Tax IdentificationNumber. They may not, however, conduct audits or review financial statements.

Certified Public Accountants must meet a number of specific requirements,including earning a college degree, passing all parts of the CPA exam, andworking for a set number of hours (usually 1800) under the supervision of anactively licensed CPA. CPA's can perform all of the same tasks as a publicaccountant, but additionally may conduct audits, review statements, andrepresent clients before the IRS.

In deciding which type of accountant career to pursue, an individual musthonestly assess his or her personal goals and willingness to put in theconsiderable time and effort needed to become a CPA.

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Step 4: Pass CPA Exam

All states require CPA candidates to pass all four partsof the CPA exam. Those four parts are: Audit and Attestation; FinancialAccounting and Reporting; Regulation; and Business Environment and Concepts. TheCPA exam is offered during the first two months of every quarter, and typicallyover the course of several days. Candidates may take the test parts in any orderthey choose, but once they have passed one part, they must successfully completethe other three parts within 18 months. Given its degree of difficulty andbreath of subject matter, most CPA test candidates enroll in private testpreparation courses.

Step 5: Land an Entry-level Job

Before you graduate, try to get an accounting internship or find anotherway to get some experience to pump up your resume. Take the necessary steps tocreate a resume and sign up for a career-focused social media platform such asLinkedIn. When it's time to apply for entry-level accounting positions, you'llbe ready to hit the ground running. Sites like LinkedIn have job postings andlet you apply for these jobs directly from the site. Check your school's joblistings, watch out for networking opportunities, and visit both local andnational job search sites. Also search out sites created especially for newgrads, such as collegerecruiter.com.

Step 6: Look for continuing education opportunities

Once you land your first job, it's temptingto sit back and enjoy the ride after all the hard work of college. Now is thetime, however, when you should be thinking about the next moves you'll need tomove up the career ladder. Earning a certification in an accountingspecialization or a master's degree in accounting could help boost careerclimbing, and if you haven't earned your CPA, it's something you may want tolook at down the road.

What does an accounting career entail?

[dig-deeper subtitle="Accounting Career Basics" description="On the most basiclevel, accountants and CPAs keep and inspect financial accounts for companies,government groups and individual clients. However, there is a huge range in whatjobs accountants and CPAs actually take on. Some are self-employed while otherswork for large firms with offices across the nation. While many accountants andCPAs work full-time, some work fewer hours throughout most of the year with longhours during tax season or the end of the budget year."panel_subtitle="Accounting In-Depth" ]

While associate degrees in accounting are available, most professionals in the field have at least a bachelor's degree. Accountants with a four-year degree are able to complete most accounting duties. These include examining records, reconciling accounts, preparing financial reports and completing tax returns. In addition, these accountants may be called upon to evaluate business finances and make recommendations to improve efficiencies or reduce costs.

With more education and experience, accountants can become certified. Some financial documents, such as those submitted to the Securities and Exchange Commission, must be signed by a Certified Public Accountant. Individuals with certification may also find they have greater opportunities to advance their career to management positions or specialize in an area of interest, such as forensic accounting or taxation.

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Accountant Salaries and Career Growth

Accountant Salaries

Many people enter accounting because it is seen as a financially stable career. According to Bureau of Labor Statistics information from 2010, the average wage of accountants and auditors was $61,690. However, the top 10 percent of accountants earned more than $106,880. There are great opportunities for accountants who have graduated at the top of their program, and for those who have high-levels of certification, such as those who are CPAs.

The map below shows details of the 10th, 50th, and 90th percentile earners for each state.

Accounting Degrees and Concentrations

Exploring Academic Paths

Did You Know?Accounting is the third most popular degree option at the undergraduate level, and with good reason. The Bureau of Labor Statistics reports the industry is set to grow by 11 percent from 2012-2022.Accounting is an attractive educational option for many. Students interested in pursuing this field have varied choices available to them, including scores of accredited online programs, which are well known for providing excellent, flexible accounting education. Additionally, many programs offer the opportunity to specialize in a particular area, such as auditing, taxation, or forensic accounting. Students unsure which type of degree to pursue can review the table below to get a better sense of the prospects available at each level.Want to work as an accountant butconcerned there may not be enough excitement?Perhaps a career with the FBI would be of interest: the governmental agency currently employs over 2,000 special agents focused on accounting.

Types of Accounting Degrees

Degrees in accounting are available at associate, bachelor's, master's, and doctoral levels via traditional campus-based learning or online options. Each level of degree can lead to specific opportunities for graduates, ranging from entry-level clerk and assistant roles to academic professorships. Students should identify their goals and understand how the completion of each degree will aid them in meeting those aspirations. A review of each type is given below.

Associate Degrees

An associate degree in accounting prepares graduates for a variety of positions within the industry and can be completed in 1-2 years depending on the student's preference of part or full-time education. Though taking half the time required to complete a bachelor's degree, an associate degree in accounting still covers a wide spectrum of topics relevant to the field, including basic accounting principles, fundamentals of taxation, payroll accounting, and personal finance. Other topics relevant to accounting are also included, such as micro/macroeconomics, business law, and accounting technology. As the world of accounting evolves to incorporate more technology and data analysis, this knowledge will become particularly valuable to employers; students with competency in accounting software will be highly desirable.Below is a breakdown of some courses students can expect to take at the associate degree level, along with an explanation of industry skills gained:

Bachelor's Degrees

Typically offered as a Bachelor of Science, a four-year degree in accounting is a highly specialized program that prepares graduates to work in varied capacities within the accounting industry. This level of education may be ideal for students who are not looking to become certified public accountants (CPA), as the certification requires additional coursework at the graduate level. Graduates of an accounting degree program will have an in-depth and holistic knowledge of the business cycle and the accounting principles governing responsible practices. Specific skills include preparing financial statements and tax documents, internal auditing, financial advisement, and more broad-based skills in organizational management and evaluation of a company's overall effectiveness.Below students can find a more in-depth look at some of the courses they may expect to take at the bachelor's level, along with skills they will be able to apply to professional settings.

Master of Accounting

A Master of Accounting (MAcc) is an ideal program for students looking to become CPAs or aspiring to high-level accounting positions within competitive firms. For students with an existing background in accounting, this degree can typically be completed in one year. Some programs will offer students the option to complete an intensive internship program, providing hands-on experience and opportunities to make valuable contacts within the industry. Students without prior educational experience in accounting will likely need to complete a number of prerequisite courses before beginning the program. Examples of these include introductory classes in financial accounting, micro/macroeconomics, and statistical theory alongside other baseline accounting classes. Once enrolled, students will progress into advanced study of focused topics, including accounting theory, specialized accounting for specific business types (e.g. nonprofits, government agencies, multinational organizations) and technological theory.Alternatively, students can pursue an MBA in accounting for their master's studies. Students in MBA accounting programs take more business management and leadership courses, but curriculum is often similar to that of an MAcc. They can begin a college search by looking at some of the best online MBA programs in the nation..Throughout either degree program, students will undertake specialized courses to help them deepen their knowledge and develop pertinent skills. Below is a list of some of the classes graduate students could expect to take.

Doctoral Degrees

Students seeking to move into academia or research within accounting will need to pursue a PhD, which typically take 4-5 years of full-time study. Most doctoral programs have three components: coursework, research and dissertation, and comprehensive examinations. Eschewing fundamental accounting classes, students move directly into specialized topics dependent on the area of accounting they are seeking to concentrate on in their dissertation. Undertaking a PhD in accounting is an excellent option for those interested in teaching, as there is a countrywide shortage of accounting professors. According to an Accounting Faculty report, approximately 140 students gain PhDs in accounting each year, while nearly 500 accounting professors retire annually.

Skills Gained at PhD Level

Deeper understanding

In addition to understanding the practical application of accounting principles, PhD students will dig into the theoretical framework of these topics as well, providing them with a deep and holistic understanding of the material.

Complex research skills

Students will learn how to complete independent research on accounting topics and undertake courses on research techniques, qualitative and quantitative analysis, and research methodology development.

Psychological perspective

Accounting will be studied from a psychological perspective, giving students an understanding of cognitive behavior and mental processes. Students will have a greater understanding of how the human brain problem solves and approaches accounting principles.

Archival or behavioral knowledge

Students typically undertake one of two paths in their studies: archival or behavioral. Students electing to follow the archival path will focus on economics and finance while those on the behavioral track will concentrate on psychological theories.

Practical application of theories

Financial and managerial accounting are the two main areas of research within PhD programs and students will elect to investigate one of these areas in-depth. The result is a deep knowledge of how to apply methods culled from economics and econometrics to investigate techniques within the industry.

Concentration Areas

With so many different careers available to graduates of accounting programs, students often choose to concentrate their knowledge on a specific area, such as auditing, taxation or even forensic accounting. The list below will give potential students a starting point for thinking about areas of particular interest within the field of accounting. Each concentration also includes examples of potential careers post graduation.

Auditing

The world of auditing is a fascinating and diverse branch of accounting that allows those who specialize in it to work on many different types of projects. Operating as a monitor of business integrity and ethics, auditing is concerned with ensuring companies are held to financial standards. Specific topics students can expect to focus on include business law, accounting research methodologies, and forensic accounting.

• Auditor

  Auditors typically sift through existing financial records to help individuals, companies, or governmental organizations rest assured that they have successfully followed any tax laws or regulatory statutes that their company type may fall under.

• Auditing Manager

  Rather than working in day-to-day auditing activities, managers in this field oversee other auditors and typically spend more time focused on bigger picture issues; also provides leadership to auditing team and may take on some of the more advanced projects from time to time.

• Fraud Examiner

  Professionals in this career have an interesting and varied set of opportunities. For those looking to work within governmental agencies, much of the work exists in the realm of external investigation. Professionals seeking a corporate environment are often brought on to complete internal investigations.

Taxation

By concentrating learning on taxation theory and application, students will gain a multifaceted knowledge of practices and procedures associated with preparing taxes for individuals and many types of organizations. In addition to accountancy courses covering fundamental skills, students will develop a sound understanding of advanced taxation topics, such as federal taxation of corporations and partnerships, estate and gift taxation, tax research methods, and other special topics in taxation.

• Corporate Tax Accountant

  Works with both small and large organizations, preparing tax documents aligned to federal regulations. Typically holds a CPA license; develops strategies to manage financial records astutely, and ensure best practices are employed when preparing tax records.

• Personal Accountant

  Serves individuals by preparing annual tax documents; can work at an accounting firm or as a self-employed accountant. Provides financial advice and reporting assistance and is required to have a CPA license.

• Tax Consultant

  Typically an expert in a specific field of taxation, tax consultants provide relevant and up-to-date advisement on tax issues to a variety of clients, ultimately ensuring tax optimization and compliance for individuals and organizations alike.

Forensic Accounting

For students interested in ethics and fraud investigation as it relates to accounting practices, undertaking a concentration in forensic accounting will put them in the center of the action. In addition to core accounting classes, students specializing in this area will learn about legal aspects of fraud, how to detect and prevent fraudulence in financial statements, how to use technology in investigating questionable business practices, and proper reporting techniques. Graduates are able to undertake the Certified Fraud Examiner (CFE) credential.

• Forensic Accountant

  Undertakes forensic research to track funds and identify any misuse or negligence. Analyzes financial data and creates reports on financial findings.

• Fraud Consultant

  Working with a variety of organizations, fraud consultants have wide-ranging knowledge on fraudulent behavior. Projects could include locating hidden assets, intelligence gathering, researching embezzlement, or identifying GAAP violations.

• Forensic Finance Investigator

  Often works with governmental agencies; tracks illegal funds, investigates white-collar crime, seeks out misappropriation of assets and provides evidence integrity analysis.

CPA Preparation

To obtain the status of Certified Public Accountant (CPA), students need to complete 150 hours of coursework. While most bachelor's degrees fall short by 30 hours, candidates are not required to complete a master's degree to undertake certification, but they will need to complete the extra hours before applying. Undergraduate students should note that these additional hours should be at graduate level. Requirements vary state-by-state, so it's best to check the rules and requirements of individual state boards first.Students should also ensure they have a thorough understanding of the program's accreditation status. Some states will require that students have attended an AACSB accredited school for their hours to count towards CPA certification. Again, it is best to check the individual state's requirements before committing to a program.For students undertaking their accounting degrees online, they should ensure that the college they elect to study under has enough relevant courses to fulfill the 30 hour requirement, and that these courses meet the requirements of the state they will seek to be certified in.

Online Accounting Schools

Studying accounting via online education is a popular option for many students as the flexible nature allows them to build an academic schedule that fits with other personal and professional responsibilities. Many students studying online may already be working in an accounting position and will complete the online degree while still employed.Search for an online accounting degree.Before enrolling, however, it is important to carefully evaluate each school and program of interest to ensure that the online education you receive is high quality. Below are a few things that prospective distance learners should keep an eye out for:

Accreditation

All accounting degree programs–online, campus, or hybrid–should be accredited by an agency or organization that is recognized by the U.S. Department of Education and the Council for Higher Education Accreditation (CHEA). In the accounting field, the primary accrediting body is the Association to Advance Collegiate Schools of Business (AACSB). Some schools also pursue accreditation specifically for their online accounting programs through the Distance Education Accrediting Commission (DEAC). If the college and degree program you are interested in has earned accreditation from one or both of these organizations, you can rest assured that curricula, professors, resources, and other program aspects meet or exceed quality standards, and that the degree you earn will be accepted by employers and other institutions.

Faculty With Extensive and Relevant Accounting Experience

A quality education starts with excellent faculty and professors who have extensive and current experience, both in the virtual classroom and professional world. Most accounting departments post faculty bios. Carefully review these to see if professors have worked as CPAs, controllers, audit managers, CFOs, and more for a range of companies, from small firms to large corporations to governmental agencies. This type of real world experience can give online students more practical knowledge and these professors may also become valuable mentors or network contacts post graduation.

Accounting Resources

Whether online or in person, classroom learning is only half the battle. In addition to relevant curricula and highly qualified professors, does the school also offer advanced accounting resources to help students throughout their program and after graduation? For example, does the school provide access to the latest accounting software such as QuickBooks Pro, Intacct, and Sage 50? Are career counselors well-versed in the field of accounting and do they have access to a range of accounting firms and corporations to help students land internships or jobs after graduation?

Components of a Successful Accounting Career: Skills, Credentials, Tools and Technology

What kind of Skills Are Required?

Accountants and CPAs tend to excel at math. They also have excellent analytical skills and, because they have to communicate with others, often have good interpersonal skills. Though many of these individuals are already good with their finances prior to working as an accountant or CPA, a perk of the job is gaining even more financial knowledge, which can help accountants and CPAs with personal financial matters.However, accountants need more than simply financial knowledge to do their jobs well. They must also have strong organizational skills and be extremely detail-oriented. Accounting records must be impeccable since businesses rely on them to make sound decisions. Sloppy records cannot only put a company's financial stability in question; they may also have legal repercussions under corporate responsibility laws.

Credentials

An accounting degree can help get you started, but to really hit a positive career trajectory, consider other credentials such as the following:

• CPA (Certified Public Accountant)
• CFA (Chartered Financial Analyst)
• CGMA (Chartered Global Management Accountant)
• CIA (Certified Internal Auditor)
• CISA (Certified Information Systems Auditor)
• CMA (Certified Management Accountant)
• CPP (Certified Payroll Professional
• MBA (Master of Business Administration)
• PMP (Project Management Professional

Accounting Tools and Technology

While accountants need to be good with old fashioned numbers, which includes a mechanical pencil and a ledger book, much of the work done by accountants these days is done with various software, including the following:

Accounting vs. Related Careers

Related Careers at a Glance

Besides accounting, there are several other careers and educational paths you can take if you want to get into the numbers game.Sources: Bureau of Labor Statistics, Payscale

Related Career Salaries

Graduates of accounting programs and former accountants or CPAs go on to careers in financial or corporate management, government, management of accounting firms, or business.[highcharts-compare title="Accountant and Related Job Salaries"]'\"Subject\";\"10th Percentile\";\"Median Salary\";\"90th Percentile\"\n\"Accountants/CPAs\";39930;63550;111510\n\"Budget Analysts\";45720;69280;103590\n\"Financial Analysts\";47130;76950;148430\n\"Bookkeepers\";21610;35170;54310\n\"Cost Estimators\";34520;58860;96670'[/highcharts-compare]

Accounting School Search

Accounting Program Finder

Many schools offer degrees in accounting at associate, bachelor's, master's, and doctorate levels. It can be a challenge, however, to find and review all available options. Below is a search tool to help with the process. Use the filters to help find the exact match and then take time to research each to determine which accounting school is best for your academic and career goals.

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