EPUB Ebooks: Free ebook sample of "101 FAQs About Becoming an Accountant" by Caitlind Alexander

3. What kind of person makes a good accountant?

4. What skills do I need?

5. Why get into accounting?

8. What is the job market like for accountants?

9. What are the advancement opportunities in this field?

10. What if I have an arrest on my record?

11. Is this a good career change for someone in their 30s or 40s?

12. What if you decide you really want to do this, even though you are changing careers in your 30s or 40s?

13. Can someone practice accounting in the United States if they received a degree outside the United States?

14. Can I practice accounting if I have a CA degree?

15. I’m in high school. What should I be doing to help myself get a good accounting career?

EDUCATION

16. What education do I need?

17. Which school is best for me?

18. How can I find a good school?

19. What are the advantages of attending a two year or junior college and then transferring to a four year college?

20. What are the disadvantages of attending a two year or junior college and then transferring to a four year college?

21. Now that I’ve chosen the school I want to attend, how do I get in?

22. What about going to an online college?

23. Can I get an accounting job if I graduate in Finance or something like that?

24. How important is a good GPA in college?

25. What can I do if my GPA is not the best?

26. What do colleges want to see in an essay?

27. How important is a master’s degree?

28. How do I get into a master’s degree program?

29. What is the GMAT?

30. How important is a PhD in Accounting?

31. How much accounting do I need to be a tax preparer?

32. How much accounting do I need to be a bookkeeper?

CERTIFICATIONS, EXAMINATIONS AND DESIGNATIONS

34. What is required to sit for the CPA exam?

35. How do I apply to sit for the CPA exam?

36. How do I schedule to sit for the CPA exam?

37. What resources are available to help you pass the CPA exam?

38. What preparation tips can help me get a better score on the exam?

39. What is sitting for the CPA exam like?

40. What happens after the exam?

41. What exam tips can help me get a better score on the exam?

42. Once I have passed the exam do I automatically receive my CPA designation?

43. Can I get my CPA license if I have a criminal record?

44. Do all hours working as an accountant qualify toward the experience requirement?

45. Once I’ve met all the requirements, how do I get my license?

46. Where can I go if I have questions on getting my CPA licensure?

47. Why should I sit for designations other than the CPA?

48. What is the CMA?

49. What designations are offered by the Institute of Internal Auditors?

50. What is a Certified Fraud Examiner?

51. What is the CISA?

52. What is a Certified Government Financial Manager?

53. What is a Chartered Financial Analyst?

54. What tax designations are available?

TYPES OF ACCOUNTING JOBS

63. What if I eventually want to teach accounting?

GETTING THE JOB

64. How do I get a job?

65. How important is where I live to getting a job?

66. How important is it to be good at typing?

67. How important is it to know Excel and other computer programs?

68. How important is it to have good written and spoken English skills?

69. How important is an internship or practical experience toward getting a job?

70. How do I get an internship or experience while still in school?

71. Do firms hire people without a CPA license or accounting experience for accounting jobs?

72. Now that my resume and cover letter are polished to perfection, what do I do with them?

73. What can I do to prepare for a job fair?

74. How can I make myself stand out at a job fair?

75. Is it a good idea to post my resume on Monster.com and other job search sites?

76. What are the big 4 accounting firms and what are they like?

77. What are the advantages of working for a big four firm?

78. What are the disadvantages of working at a big four firm?

79. How do I get a job at one of the Big 4 firms?

80. Is a big firm better than a small firm for a new accountant?

81. What is the Sarbanes-Oxley Act and how does that affect my job possibilities?

82. What if I haven’t gotten a job after six months of looking?

ON THE JOB

83. What is the dress code like at an accounting firm?

84. What kind of hours will I be expected to work?

85. What kinds of duties or experiences can I expect when I first start out on the job?

86. What will an employer look at in an intern or first year accountant to decide if they will keep them?

87. Is it possible to work as a temporary accountant?

89. What is the starting pay?

90. What benefits can I expect as an accountant?

91. How are clients charged for services?

92. What are billable hours and how are they tracked?

93. How often do accountants get raises?

94. What are GAAS and GAAP?

95. Who sets accounting standards?

96. What is peer review?

97. What are CPE units?

98. What about starting my own CPA firm?

99. I’ve heard there’s a lot of job burnout. Is this true?

100. How can I prevent job burnout?

101. What accounting associations are there?

CONCLUSION

GENERAL JOB INFORMATION

(Ken Teegardin www.seniorliving.org)

1. Is accounting right for me?

For many people the big question is whether an accounting career is right for you or not. Answering "true" or "false" to the following questions can help you decide if accounting is a viable opportunity. Read each question carefully and be honest. These questions are a true picture of what may be required for you to be a successful accountant.

I love to meet new people.

I consider myself to be outgoing and friendly.

I don’t mind dressing professionally to go to work every day.

I want a career that is financially rewarding.

I want a career where I can advance quickly.

I learn things quickly.

I don’t mind working alone, or working with others as part of a team.

I don’t mind doing the same thing day after day.

I want to have a degree that allows me to choose a number of career paths.

I enjoy working with numbers.

I am detail oriented.

I want a job with a lot of security.

I want a job that forces me to do and be my best every day.

I handle stress well.

I don’t mind working long hours, even 80 or more hours per week for several months at a time.

I want to work in a field that allows me access to the leaders of the business.

I act professional most of the time and want to work around others who act the same way.

I like to see results for the work that I do.

I am willing to pay my dues for several years.

I maintain a high ethical standard.

I do not have a criminal record.

I believe it is important to look at the big picture as well as the small details in a project.

I like advising people and helping them to meet their business and financial goals.

I am comfortable working with computers.

I enjoy using analytical skills to solve problems.

I have excellent written and spoken English skills.

I don’t mind studying hard.

I have a high (3.0 or better) grade point average in school.

I enjoy networking with others and establishing professional friendships.

I enjoy joining and participating in professional groups and organizations.

I’m willing to go to college for at least four to five years and obtain a degree.

I’m willing to maintain high ethical standards for the remainder of my career.

I’m willing to continue my education by taking additional courses or attending seminars every year for the remainder of my career.

I am willing to work in a very demanding and high stress environment.

I am dependable.

I am good at meeting deadlines.

I don’t mind proving my worth on a regular basis, both in school and on the job.

I am a good leader.

I enjoy working at a desk for a major portion of the day.

I enjoy performing my job duties in various locations.

I like making numbers add up, and finding out what’s wrong if they don’t.

If you answered true to 3/4 of these questions (30 or more) then accounting may be a viable career option for you. You may want to speak with a college or career counselor and do a bit more research (including reading this book) to help you decide.

Also see the following questions:

3. Where do accountants work?

2. What do accountants do?

Many people see accountants as bean counters. They think that an accountant simply sits around all day figuring out what each bean cost and where it went. They have a need to balance all books to the penny so that they can account for where every single cent is at any given moment.

This is a limited view of what accountants do. While it is true that accounting does involve looking at income and expenditures and finding out where a company’s money is, there are also many other areas of accounting.

In general, accountants can be responsible for any of the following:

Record and report financial transactions

Verify the accuracy of those financial reports

Assist with tax preparation

Advise clients on ways to decrease their tax liability

Help uncover fraud, waste, and mismanagement

Calculate costs for products and acceptable profit margins

Advise clients on ways to improve business functions

Help clients adhere to acceptable accounting practices and standards

And many other functions

All businesses and many individuals need an accountant to help keep track of their income and expenses in order to make needed financial reports to the Department of the Treasury (Internal Revenue Service), the Securities and Exchange Commission, and to their partners, shareholders, creditors and other interested parties. Accurate accounting information can also help a company make decisions on their future expenditures.

There are usually considered to be four main fields of accounting:

Public accounting,

Management accounting,

Government accounting, and

Internal accounting.

Within each of the fields there may be several different types of accounting. These include:

Financial accounting – Creating financial reports to convey information on the financial aspects of a company (i.e., income, expenditures, etc.)

Auditing – Checking the accuracy and reliability of the financial information created by financial accountants or others within the company.

Managerial accounting – Creating and reporting internal data to the managers within a company.

Tax accounting – Creating tax returns, reports and forms for submission to company executives and the Internal Revenue Service. Tax accountants also help businesses plan strategies to improve their tax situation.

Further, within each of these fields there are often additional breakdowns of responsibility. For example, under the heading of management accountants you may have the following areas of specialty:

Financial analysis – Those who prepare overall financial reports on a company such as general ledgers and income statements.

Cost accountants – Those who analyze all the costs involved in creating or purchasing an item and the price needed to cover costs and make a reasonable profit. They also analyze cost-control measures.

Payroll accountants – Those who specialize in payroll disbursement, timecard auditing and their related tax issues.

Planning and Budgeting – Those who create a plan for the company’s progress and budget for the upcoming expenditures needed to implement the plan. They will also monitor expenditures during the year to ensure that people are staying on budget, or that budgets are reorganized to cover any unplanned expenditures.

Forensic accounting – Those who look for fraud, embezzlement, misuse or mismanagement of funds within a company.

As you can see, there are many different facets of accounting, and the tasks performed in each area can differ widely. However, they all fall under the umbrella of accounting.

Also see the following questions:

63. What if I eventually want to teach accounting?

3. What kind of person makes a good accountant?

There are a number of attitudes and talents that make a person good for the accounting profession. The most common of these include the following:

Open Personality

First and foremost is an open personality. Accountants will meet with clients on a regular basis. They will also interact with other members of the accounting team. Many accounting firms will expect accountants, even those new on the job, to interact with clients and to contribute comments and insight to the team.

Analytical

It is important for accountants to analyze the data that they receive and make decisions based on that data. Accountants often act as consultants or advisors to companies, providing them with information on everything from accounting practices, to hiring personnel, to planning future expenditures. Firms often look for accountants who are analytical thinkers,

Enjoy Giving Advice

Companies that hire accountants are looking for advice. They want to make their company better. Just telling a company that all their financial statements are complete and accurate is not enough. They want advice on how to improve their company, and often make it bigger and they often expect accountants to provide that advice.

Enjoy Meeting New People

Accountants will meet with new clients on an almost daily basis. They not only interact with the management of these companies, but often with lower level employees as well. When performing audits, you often need to speak with employees at all levels of a company regarding their job and the data they have generated.

Accountants should enjoy meeting new people and have the ability to put these people at ease. These skills can help an accountant get the information they need to make the work go much more quickly.

Confident

Accountants need to have the confidence to make a decision and stand by that decision. Often companies in trouble will try to justify their actions or decisions. An accountant will need to withstand the defenses put up by these people without getting defensive themselves, or losing confidence in their decisions.

Problem-Solver

Many companies who seek the services of an accounting firm do so because they are unable to resolve their own problems. They are looking to an accountant to help them gain perspective on why things are not working out as planned, or on how to make things work out better. Accountants must often look at a company’s situation and financial data and help them determine what the problem is and how to correct it.

Creative

Hand in hand with solving problems is creative thinking. Once they understand what the problem is, accountants must often come up with creative ways of solving those problems. Most companies can look at books and standards guides to understand how things should be done and how most companies have solved problems. Accountants are often asked to go beyond the information contained in these books. After all, if looking up the problem in a book and reading how to solve it was all that was required, why would companies hire an accountant?

Strong Sense of Ethics and Integrity

Honesty and integrity is vital to your success in this field. As an accountant you are often given access to information that is private and confidential. The accounting firms and their clients need to know that you will handle their records with integrity.

Additionally, the accounting firm needs to know that you will base your opinions and recommendations on accepted accounting standards, rather than on the wishes of the client or their employees. Because of this standard, those who have a criminal record may find it difficult to enter the accounting profession.

Comfortable with Numbers

Financial records often contain thousands of calculations and numbers. It is important that these numbers add up properly. All accountants need to be comfortable with math and numbers.

Well-Rounded

Accountants are often called upon to put financial data into perspective. This often requires a well-rounded background with experience in a number of areas other than accounting. Candidates who have little experience outside of accounting classes and jobs are often unable to understand how numerous types of businesses function.

In the accounting world, you will be asked to make suggestions on improving a company’s financial situation, as well as their standards. To do this you need to be able to base your suggestions on more than just financial data. Having an understanding of how the world works can prove invaluable in this situation.

Able to Handle Stress and Deadlines

Accountants work in a very high stress field. Engagements need to be done on time and under budget. This often means pushing fast and hard to get things done quickly.

Accounting firms make money by billing their clients for the work they perform. They contract for the cost of their services based on an estimate of the time and resources needed to complete the job. They must also undercut their competition in order to get the contract.

This means that the amount the firm can collect from the client is set before the work begins. If you are over the amount budgeted for the contract, the firm cannot collect these extra amounts. However, by law they must still pay their workers for their work.

Because of these factors, it is important that you be able to meet a deadline and perform well in a stressful situation.

Prefer Organized Work Environments

Organization is an important skill for accountants. They need to be able to organize data, thoughts and advice in such a way that it communicates their findings to others.

The work environment for many accountants is also highly organized. There are a number of levels of company organization within an accounting firm and status and job duties are often fairly strictly defined.

Like Security and Stability

Accounting can be a secure and stable environment. For many people this means a lack of change. Accountants often perform the same types of duties day after day. While the clients may change, the standards and practices, accounting principles, and basic procedures for performing the job do not.

Also see the following questions:

4. What skills do I need?

5. Why get into accounting?

4. What skills do I need?

Many people think of accountants as people who are good at math, but the truth is that calculators and computers will do most of the math problems for you. With that thought in mind, what kind of skills do you need to become a good accountant? The following list shows those skills firms look for most often.

Good Writing and Speaking Skills

Good writing and speaking skills are essential to this job. You should be completely fluent in the language of the country you plan to work in, including both writing and speaking the language. These skills will be used in communication with clients, co-workers, and governmental or other organizations. Without the ability to speak and write well it can be difficult to move above a basic level in this profession.

Many engagement letters (contracts between clients and accountants), statements of findings and other reports are completed in written form. These items must contain clear and concise language that conveys the findings of the accountants. If there is a problem understanding any of these items, it can cost a firm clients, damage their professional reputation, or cost money in terms of lawsuits or fines.

Ability to Get Good Grades

Accounting is a very difficult field to get into. If you aren’t the type of person who gets good grades, has good study skills, or is good at test taking, you can expect to have difficulty entering this profession. The lower your grades, the fewer opportunities you will find open to you, both in finding a good college and in entering the profession.

Familiarity with Computers

Computers and other electronic equipment are used by accountants on a daily basis. In fact, most basic accounting is done by computers. You should become familiar with using computers and computer programs before entering this profession. Good keyboarding (typing) skills are also essential.

Leadership Skills

Accounting has one of the highest drop out rates of any profession. Because of that, those who stick with it will often advance quite quickly. However, to advance you need to be able to lead. Within a couple years of entering the profession, accountants are often expected to act as mentors and leaders to newer accountants. This is a high stress environment. Without good leadership skills you will often limit your opportunities for advancement.

Have a Sense of Order and Focus

Accountants need to be able to focus on the task at hand day in and day out. This usually involves performing the same functions in the same order over and over. People who have difficulty with this skill will often find accounting to be boring.

Detail-Oriented

Accounting is a profession of details. Accountants need to be detail-oriented enough to spot minor inconsistencies in financial statements and other accounting work. Without this attention to detail it can take extra time to find errors and problems, which is after all, what an accountant often does.

Fast-Learner

Because of the fast pace of most accounting firms, it is important that you be a fast learner. Often accounting firms will hold seminars to introduce new accountants to certain practices or situations. They will then be expected to use this knowledge on an engagement, often with little additional training.

While there will usually be someone available to give you guidance if needed, interrupting this person to repeatedly ask questions is often frowned upon. You are usually expected to carry out assignments with a minimum of additional training.

Also see the following questions:

3. What kind of person makes a good accountant?

5. Why get into accounting?

66. How important is it to be good at typing?

67. How important is it to know Excel and other computer programs?

5. Why get into accounting?

There are a lot of reasons that people get into the accounting field. A career in accounting has a lot of benefits and opportunities. The most common reasons are for the good pay, job security, prestige, variety of work options, and most importantly, because they like the work.

Good Pay and Benefits

The pay rate is one of the first reasons why many people consider a career in accounting. First year accountants can start out making more money than many other professionals earn after years on the job. And the pay only gets better. Raises are often in the 10% to 35% range every year, instead of the 3% to 10% that you see in many other jobs.

It is not uncommon for entry level accountants to start out making $40,000 to $50,000 a year. With raises and additional licensing, an accountant can easily be earning a six-figure income within ten years of entering the profession.

Accountants can also earn good benefits from the companies they work for, including paid vacations, good insurance benefits, and yearly bonuses.

Job Security

Accountants are in high demand and a good accountant can always find a job. Many firms will also do whatever they can to keep good accountants on staff, including offering perks.

Prestige

Accounting offers a high level of prestige. Accountants are often seen as professionals in the working world, rather than just employees.

Variety of Work Options

An accounting career offers you a variety of work options. If you find you don’t like auditing, you can try tax accounting, cost accounting, or many other fields. If public accounting doesn’t suit you, you can go into managerial accounting, internal accounting or even government accounting.

Of course many job options require that you obtain your CPA licensure, which often requires a few years in a public accounting firm. However, once you have achieved CPA status and work experience, there are many doors open to you.

Like the Work

By far, the most important reason for choosing an accounting career is because you enjoy the work. Some people find it exciting to find out why records don’t balance or attempt to find where missing money went. They like the challenge of auditing another person’s financial records and ensuring that they were done properly. If this is you then you will probably find accounting to be a challenging field.

Accounting is a high stress field that consumes many hours of your day, especially during the busy seasons. If you don’t like the accounting field you should not go into it, no matter what your other reasons are for entering this field. If you don’t like what you are doing you will often do poorly at it. This can lead to you being held back or pushed into a position with a smaller company or other type of accounting, which can lead to even more job dissatisfaction.

Also see the following questions:

89. What is the starting pay?

6. Where do accountants work?

According to the Occupational Outlook Handbook put out by the U.S. Department of Labor, “accountants and auditors held about 1.3 million jobs in 2008” (the latest year they have statistics for). That number has increased due to the demand of the Sarbanes-Oxley Act (described later), and due to the general growth of business in the U.S.

About one out of five wage and salary (non-self-employed) accountants worked for accounting, tax preparation, bookkeeping and payroll services firms. Approximately 1 out of 10 accountants or auditors were self-employed, usually in a small firm, tax preparation or bookkeeping office. The remaining accountants worked for individual companies preparing financial statements, handling payroll, performing cost accounting, performing internal audits, advising management, or many other duties associated with the financial aspect of running a business.

Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated.

Following is a list of places where accountants often work, in order of those that hire the most new accountants, to those that hire the least.

Accounting Firms

Accounting firms hired the most new accountants of any profession. Accounting firms (also called Certified Public Accounting firms or CPA firms) are organizations that perform many functions for their clients. These functions can include auditing of records, tax preparation, financial analysis, investment services, financial advisor, and many other functions.

In general, the larger the firm, the larger the clients they serve. The larger a company is the more accountants will be needed to audit their records and perform the services they need. Small firms often do not have the staff available to service larger clients.

The smallest firms will often specialize in one or two areas such as tax preparation, preparation of financial statements, or financial advice.

Private Companies

By far most accountants work in private companies. Every company needs accounting services, whether related to payroll services, bookkeeping, preparation of financial statements, cost accounting (determining costs and profit margins), internal auditing (auditing the financial statements prepared by others), forensic accounting (attempting to uncover fraud, embezzlement or mismanagement of funds), advising management, investment services (handling a company’s investments), or many other varied jobs.

In general, the larger the company, the greater their need for both a larger number of accountants and accountants in different areas. Some people who work as accountants in private companies have little or no formal training as accountants. However, it is extremely difficult for those without a bachelor’s degree in accounting to rise above a certain level. Those without a CPA license will find it difficult to obtain management positions in many mid-sized and larger companies, though they may be able to do so at small companies.

Government

Government offices and agencies need the same kind of accounting services that private companies do. Additionally, many government institutions are charged with auditing the financial records of individuals and companies. The most common among these are the Securities and Exchange Commission (SEC) which is responsible for seeing that investors are provided with material information in order to make informed investment decisions, and the Internal Revenue Service (IRS) which is responsible for collecting income and other taxes from individuals and companies.

Tax Preparation and Bookkeeping Services

Tax preparation firms specialize in preparing taxes during the period from January to April. Bookkeeping services will specialize in journal entry (entering items into a company’s financial records) and preparation of financial statements. Bookkeeping firms may also handle some invoicing and billing of a client’s customers. Most tax preparation firms will either close down during most of the year or will switch to handling bookkeeping services or payroll services during the slow season, often for the same clients they prepare taxes for.

Some people who work in these services may be unlicensed and may have had few or no accounting classes. However, at least one person in the office (usually the owner) must be licensed either as a Certified Public Accountant (CPA), Enrolled Agent (EA), or licensed by their state to perform tax work. No license or degree is required to perform bookkeeping services.

Many accountants who are unable to be licensed, who did not do well in school, or who had difficulty in larger firms will find themselves in firms such as these.

Payroll Services

Payroll services specialize in handling all aspects of a company’s payroll. This includes auditing an employee’s hours, calculating pay rates, deducting taxes, preparing payroll tax returns, preparing payroll statements and preparing payroll related tax forms (i.e., W-2s or 1099s). Some payroll services firms specialize only in payroll services, often handling payroll for large companies. Other firms will also handle bookkeeping and tax services for their clients.

Colleges and Universities

Some accountants choose to move on to teach accounting at colleges and universities. While this can be a lucrative career, it often requires additional schooling and a number of years of experience. There are very few accountants who choose to teach.

Overall, there are many positions open to those with an accounting degree and even more to those who are licensed. Most successful accountants will begin their career by obtaining their education, working for a CPA firm for several years, obtaining their CPA licensure, and then working in a field or area of accounting that they like.

Also see the following questions:

63. What if I eventually want to teach accounting?

7. What are the working conditions like?

The working conditions for an accountant can vary from office to office. However, nearly all accountants perform their duties while seated at a desk, usually in front of a computer.

The hours an accountant is required to work will depend upon the setting they are employed in. Those who work in a public accounting firm, especially in their first few years will often work 45 to 55 hours per week. During the busy season (January through April) this can jump to 80 or more hours per week. While regular office hours are between 8:00 a.m. and 5:00 p.m., most accountants work overtime by either coming in early, shortening their lunches, staying late, or working weekends. Some work may be taken home once you have reached a level of confidence with the firm. They need to ensure that client privacy is being maintained at all times.

Accountants often travel to the office of the client to review financial records and perform audits. This can mean traveling to various places within an area and also traveling to out of town locations.

Accounting can be a very demanding and stress filled arena. Accountants often find themselves doing the same type of thing day after day while hurrying to meet a deadline.

Accountants who work for themselves or for a very small firm may be allowed to work on their own schedule or to work at home.

Accountants will often be part of an accounting team that is all working together to complete an engagement (contract). However, each accountant may be assigned their own duties and essentially be working on their own to complete their portion of the whole.

Accountants will often take lunch with their peers, or may even socialize with their peers after hours. As in most other professions, accountants often get a half-hour to one-hour lunch break and two 15-minute breaks daily. However, during busy times lunches are often cut short or taken at your desk and breaks are often non-existent.

If an accountant runs into difficulty, they may discuss the situation with their supervisor, but this is expected to happen infrequently after they have been on the job several months or have performed similar duties in the past. Accountants are often expected to know their job and be able to do it on their own.

Accountants should expect to have their work reviewed by a supervisor on a regular basis. In the beginning there will be an almost daily review of the accountant’s work. As time goes on and the accountant proves they are able to properly complete their work in a timely fashion, their work may not be reviewed until they have completed it.

An accountant that works for a smaller firm will often work fewer hours and work in a more relaxed atmosphere. However, the pay for these positions is often less than that paid in the larger firms.

Also see the following questions:

8. What is the job market like for accountants?

There are numerous job opportunities in the accounting field and the need for qualified accountants continues to grow.

According to the Occupational Outlook Handbook put out by the U.S. Department of Labor:

“Accountants and auditors held about 1.3 million jobs in 2008. They worked throughout private industry and government, but 24 percent of accountants and auditors worked for accounting, tax preparation, bookkeeping, and payroll services firms. Approximately 8 percent of accountants and auditors were self-employed.

Most accountants and auditors work in urban areas, where public accounting firms and central or regional offices of businesses are concentrated.”

Employment of accountants and auditors is expected to grow by 22 percent between 2008 and 2018, which is much faster than the average for all occupations. This occupation will have a very large number of new jobs arise, about 279,400 over the projections decade. An increase in the number of businesses, changing financial laws and corporate governance regulations, and increased accountability for protecting an organization's stakeholders will drive job growth.

As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information reviewed by accountants and auditors regarding costs, expenditures, taxes, and internal controls will expand as well. The continued globalization of business also will lead to more demand for accounting expertise and services related to international trade and accounting rules and international mergers and acquisitions. Additionally, there is a growing movement towards International Financial Reporting Standards (IFRS), which uses a judgment-based system to determine the fair-market value of assets and liabilities, which should increase demand for accountants and auditors because of their specialized expertise.

An increased need for accountants and auditors also will arise from a greater emphasis on accountability, transparency, and controls in financial reporting. Increased scrutiny of company finances and accounting procedures will create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly and completely. Management accountants and internal auditors increasingly will be needed to discover and eliminate fraud before audits, and ensure that important processes and procedures are documented accurately and thoroughly. Forensic accountants also will be needed to detect illegal financial activity by individuals, companies, and organized crime rings.

Job opportunities should be favorable. Accountants and auditors who have earned professional recognition through certification or other designation, especially a CPA, should have the best job prospects. Applicants with a master's degree in accounting or a master's degree in business administration with a concentration in accounting also may have an advantage.

Individuals who are proficient in accounting and auditing computer software and information systems or have expertise in specialized areas—such as international business, international financial reporting standards, or current legislation—may have an advantage in getting some accounting and auditing jobs. In addition, employers increasingly seek applicants with strong interpersonal and communication skills. Many accountants work on teams with others who have different backgrounds, so they must be able to communicate accounting and financial information clearly and concisely. Regardless of qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.

In addition to openings from job growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation.

In short, there is now and will continue to be a demand for good accountants, especially those with certification.

Also see the following questions:

34. What is required to sit for the CPA exam?

9. What are the advancement opportunities in this field?

There is a tremendous amount of opportunity for advancement in the accounting field. Some of this advancement is caused by those who are leaving the field, but more of it is caused by increased opportunities. More and more clients are seeking help from accounting professionals. This creates more jobs.

Most public accounting firms are set up with a specific hierarchy. The mid-sized to larger companies will have all levels of the hierarchy; however, small firms may skip a level or two.

At the lowest level are the junior accountants. These are often recent college graduates who have not yet earned their CPA designation. These people are used for much of the accounting grunt work, such as audit work or financial statement preparation.

Next come senior accountants. These people have been in the field a few years and are often well on their way to passing the CPA exam, or have already passed it. Senior accountants who have obtained their CPA license will often be used to train and supervise incoming junior accountants. They may also help plan and carry out an audit or engagement.

Supervisors will often oversee the day to day tasks of smaller engagements or small portions of larger engagements.

Junior managers will often oversee the day to day tasks of small to mid-sized engagements or portions of larger engagements.

Senior managers are often responsible for ensuring that the agreed upon services have been performed properly and in a timely manner. They may be involved in scheduling personnel as well as overseeing and verifying their work.

Junior partners are often senior partners in training. They will often oversee and handle an engagement and verify the results. They may work directly with the management of the client in handling any problems that arise during or as a consequence of an engagement.

Senior partners are often those who began the company or who have been with it for most of their professional lives. These are the people who oversee the running of the company and are responsible for obtaining and managing many of the clients. Though others in the company may have provided the initial referral, it is up to the partners to actually finalize the contracts and agreements and ensure that the work is performed properly.

The largest companies will often have various levels within the above hierarchy. For example, they may have a structure of first year junior accountants, second year junior accountants, etc.

Larger companies that offer numerous services will also split the firms into various departments (i.e., audit, tax, financial planning, etc.). The above hierarchy will be present in each of the departments within the firm.

Because of the high turnover rate at CPA firms (20% to 25% per year), it is not uncommon for someone to move from junior accountant to senior management status within seven to ten years. However, advancement beyond that point often comes much slower. In general, the higher up the ladder you go, the longer it takes to advance from one position to the next.

It is very rare for someone to attain junior or senior partnership status at a company without a long history with the firm. It also helps if you have a familial relationship with an existing partner (i.e., sons or daughters of senior partners often have a chance to become partners in a firm). The other way to attain partnership at a firm is to begin your own firm. If it grows large enough, it may be absorbed by or merged into another firm who will confer partnership status on you.

As you attain each different level, you will often be given a substantial raise to go with your promotion. At some firms you will also find that the work becomes less stressful and the hours become shorter. You also have more opportunities for transferring to other jobs either within the accounting field (in either public or private firms), or in closely related fields such as finance or business administration.

Also see the following questions:

27. How important is a master’s degree?

10. What if I have an arrest on my record?

There is no law or regulation which says that someone with a past criminal record may not perform the job of an accountant. However, it may prove difficult to be hired, especially for that all important first job. Accounting can be a difficult career to get into and firms will often look very closely at the accountants they hire.

Most job applications ask if you have ever been arrested or convicted. Be sure to read the question carefully. If it asks if you have ever been convicted, you do not need to tell them if you were arrested and the charges were subsequently dropped.

Some applications will add the words “for a felony.” If you have a misdemeanor record, you do not need to disclose it if the question is phrased this way. However if the application asks have you ever been arrested or convicted you must answer honestly.

If you lie about this question you can be terminated immediately. The courts have upheld that lying on a job application is just cause for immediate termination and you have no recourse.

The job application may or may not ask you to disclose what you have been arrested for or convicted of, however, most employers will ask for details during the job interview. You should disclose all arrests or convictions, but you can always do it in the best light possible. If there were extenuating circumstances list them. Otherwise, indicate your remorse over the situation. You might also include information that you have been a law-abiding citizen for whatever period of time. If a reasonable amount of time has passed with no additional arrests, it will often indicate that you learned your lesson.

Be prepared for the employer to request a copy of your record from the local police department. If you have not disclosed all arrests or if your arrests are recent, you may not be hired for the job.

Certain arrests or convictions such as those for fraud, embezzlement, theft and other white collar crimes will often make it much more difficult to get a job as an accountant. Accountants are responsible for handling sensitive financial information on a number of companies. If you have a criminal record in this area, you may want to consider a different line of work.

If you were arrested or convicted as a juvenile, the records should be sealed. By law you do not have to reveal any arrests or convictions that happened before age 18 unless you were tried as an adult.

If you have a drug or alcohol problem, you should seek treatment before beginning an accounting career. Once you are hired, some firms can be quite liberal in their approach to dependency problems. They may try to get you help before they fire you, especially if you are a good asset to the company. However, repeated failings with your treatment can cause you to be terminated, and having a firing on your record can definitely hurt your future career.

Most states also require an applicant to disclose their entire criminal history when they apply to sit for the CPA exam or when they request their CPA licensure. Applicants should list all infractions or convictions. The state will request a copy of the applicant’s criminal record. They may also run the applicant’s fingerprints through several criminal databases. If the state feels that the applicant has not maintained an appropriate ethical standard or that they would not be an asset to the profession, they may deny the application for CPA status. This can severely hamper your chances for future employment or advancement. Furthermore, the state may do periodic rechecks to ensure that your record remains clean.

If you have a criminal record you may want to consult with an attorney to see if your record can be expunged (cleared). If you have served time, there is often little chance of it; however, it may be worth looking into.

In short, while a criminal record will not prevent you from working as an accountant, it will definitely limit the number of employers who are willing to hire you, especially at the larger, more prestigious firms. And since the larger firms often provide higher pay, more opportunity for advancement, and greater benefits, if you have a criminal record you may find yourself continually stuck in the lower levels of the accounting field.

Also see the following questions:

42. Once I have passed the exam do I automatically receive my CPA designation?

43. Can I get my CPA license if I have a criminal record?

11. Is this a good career change for someone in their 30s or 40s?

Some people think of entering the accounting profession in their 30s or even 40s. However, they should seriously think about this move. Is this REALLY what you want to do?

People who enter accounting as a second career choice may face an uphill battle when it comes to employment.

Commitment

Accounting has one of the highest turnover rates of all jobs. Employers are often wary of candidates who may jump ship as soon as the work gets tough. If you do decide to pursue this profession at an older age, you may need to convince potential employers that you are committed to accounting. This may often mean gaining extra experience or passing all levels of the CPA exam before moving up to the larger firms.

Pay

If you are coming from another successful career and will face a pay cut, employers may be very reluctant to hire you. Many people who transfer to a new job are willing to take a pay cut their first few years. However, they often expect their income to rise quickly so that it matches or beats the job they left behind within a few years. This is often unrealistic in a profession where salaries and raises are often doled out within a very limited range, at least for the first few years. In general raises are given once a year and they are often a set percent of your existing income. However, proving yourself with a great performance review and/or obtaining additional credentials (i.e., obtaining your CPA license, gaining an MBA, etc.) will often help you be promoted faster. In general, the larger the pay cut, the harder it will be for you to find a job.

Younger Supervisors

Because of the high turnover rate in accounting, good employees who stick with a company as little as five years can work their way up to supervisor or senior level. That means that someone as young as 27 could be supervising the new recruits. If a new recruit is older than this, they may have difficulty accepting instruction from a younger person, especially since the firm knows this relationship will probably continue for an extended period of time.

Unfortunately many firms expect new applicants to accept a tremendous amount of work, pressure and unrealistic deadlines. Many 22-year-olds are willing to put in this time because they see it as “paying their dues.” Many older people are reluctant to do so, especially when the order to work harder and longer comes from someone younger than they are.

Teamwork

Many firms are also very concerned about how an applicant will get along with the current employees, especially those at their level and immediately above. These are the people the applicant will be working with on a daily basis. During the busy season you often see your co-workers more often than you do your family. Older people can be out of touch with the culturally significant details of their younger co-worker’s lives.

Older applicants often have more responsibilities such as family or financial obligations. They understand that there are more important things to life than work. Younger graduates often have fewer responsibilities outside work and are more willing to put in long hours.

Having said this, there are a number of areas that may contribute to success in the accounting field. For example, let’s say you worked in information technology (IT) for a number of years. Many firms are begging for IT auditors. Someone who has worked in the IT arena and has taken several accounting courses may be able to step into a job auditing IT firms. However, you would often be limited to only auditing this area and you would need to work for firms that handle a large number of these clients. If you are in this situation, you may want to look at what it would take to get a Master’s of Accounting (MA) or a Master’s of Business Administration (MBA) degree with a concentration on accounting courses. This will provide the best match with your experience.

Also see the following questions:

12. What if you decide you really want to do this, even though you are changing careers in your 30s or 40s?