Accounting positions range from bookkeeping clerks who maintain financial data in computer and paper files to chief financial officers who are responsible for providing leadership in the design and operations of a total accounting information system and its output of financial statements.

OVERVIEW OF ACCOUNTING AS AN OCCUPATION FIELD

The U.S. Department of Labor identifies accounting essentially at two levels. At the "executive, administrative, and managerial" occupational level, accountants and auditors are included. Under "bookkeeping, accounting, and auditing clerks," positions are available to those with some training and interest in working with financial records.

Persons employed in accounting are generally expected to have strong computer, analytical, interpersonal, and communications skills in addition to sound knowledge in accounting related to the level of the position. Career opportunities are available for individuals with varying levels of formal education.

In general, the rate of growth of employment in accounting is expected to be the average of that for all occupations through 2008, as projected by the U.S. Department of Labor. The impact of computer technology will continue to change the nature of demand for employees in accounting, but growth in business activity and the turnover of personnel assure appealing opportunities for those individuals who are technically prepared and gain relevant on-the-job experience.

Accounting is a field that is appealing to individuals who enjoy working with figures and who appreciate the need for impeccable accuracy and careful adherence to policies and schedules. Increasingly, those who work in accounting must be computer-savvy. Thus, individuals who are challenged by the continuing need to learn new software, and new ways of work find the field of interest. Those individuals who choose to become certified must continue to be learners, because all certifications have a continuing professional education requirement to maintain certification. Even accountants who are not certified enroll in a range of in-company and other types of programs to upgrade their skills and knowledges.

Accountants must be individuals of high integrity so that those who read financial information prepared or audited by accountants have confidence in the credibility of such information. Accountants who are certified are expected to adhere to professional codes of ethics that impose rules and regulations to encourage behavior in relation to their work that maintains the credibility of financial reporting, both within the organization and outside the organization.

CAREERS FOR CERTIFIED ACCOUNTANTS

Professional accounting positions that require at least an undergraduate college degree and certification are certified public accountant (CPA), certified management accountant (CMA), certified internal auditor (CIA), and the certified government financial manager (CGFM).

Certified Public Accountant. The most common path for the aspiring CPA is to begin employment in a public accounting firm as a staff accountant. Most states in the United States require experience in auditing for certification. While public accounting firms hire recent graduates of college programs for beginning positions, such firms expect new employees to have taken the examination or be planning to sit for it. While many CPAs leave public accounting to enter other positions in all types of organizations, some remain in public accounting. The promotional opportunities in public accounting for CPAs are related to level of responsibility. Successful staff accountants become seniors; seniors become managers; a limited number of managers become partners. In many public accounting firms, there are more levels of professional staff than indicated in the preceding sentence. In addition to accounting and auditing, public accounting firms provide other services, such as tax advisement and management consulting. Some CPAs choose to move to other services after they gain experience in accounting and auditing. Others decide to establish their own firms; in 1998, for example, 10 percent of accountants were self-employed. Many choose to work in other types of positions after gaining certification and experience. Many accept positions in corporations, not-for-profit entities, and government agencies, where promotional opportunities include both accounting and nonaccounting responsibilities. Some become chief executive officers in major corporations.

Accountants in Organizations. The range of positions for accountants in organizations is extensive. Accountants are employed in corporate reporting, in controller's offices, and in budget and strategic planning departments. Certification is provided for management accountants through the Institute of Management Accountants. To be certified as a certified management accountant, a candidate must successfully complete a comprehensive examination that includes accounting and related topics relevant to the broad responsibilities assumed by management accountants. There is a requirement for work experience in some aspect of management accounting before a candidate is certified. CMAs have many promotional opportunities in organizations. They are identified for leadership positions, in much the same way as CPAs, at executive levels of their own and other organizations.

Internal Auditors. Many accountants choose to work as internal auditors. The Institute of Internal Auditors provides a certification program for candidates who seek to be certified internal auditors. Certification requires experience as an internal auditor. In many organizations, especially large ones, there is a separate department of internal audit that provides valuable oversight of the total organization. Internal auditors who are certified are expected to adhere to the professional standards as they perform their responsibilities. CIAs have promotional opportunities in internal auditing through moving into managerial positions within the department or moving to operational units where they assume supervisory and executive responsibilities.

Government Accountants. The most common certification for government accountants is that provided by the Association of Government Accountants. An examination and relevant experience are required. The designation achieved by a successful candidate is certified government financial manager. Government accountants are employed throughout the public sector, at federal, state, and local levels.

CAREERS FOR ACCOUNTANTS WITHOUT CERTIFICATION

There are more accountants in the United States who are uncertified than there are those who are certified. Of the slightly more than 1 million workers classified as accountants and auditors in the United States in 1998, fewer than half were certified. Individuals who have studied accounting at the community college, business college, or university level are employed for beginning accounting positions. Through on-the-job training and experience, many of these individuals move into higher-level positions.

Many individuals who study in accounting programs in universities choose not to be certified. Others study some accounting as an elective program and then enter a beginning accounting position as a staff accountant, for example.

Many promotional opportunities are available to accountants. Technical skills and managerial skills are both important if an individual aspires to higher-level positions. Employees who are knowledgeable about accounting and continue to learn as new accounting rules and interpretations are introduced by professional bodies are invaluable to employers. However, such knowledge must be accompanied by strong organizational and interpersonal skills if promotional opportunities are to be realized.

CHANGING REQUIREMENTS FOR ACCOUNTANTS AND AUDITORS

Knowledge of accounting and auditing continues to be critical to handling job responsibilities. However, such knowledge alone is not sufficient. Accountants are expected to have advanced competencies in handling a variety of accounting and auditing software and in designing accounting information systems. Furthermore, accountants and auditors are expected to strategically analyze, interpret, and assess the information from the systems they develop and implement. For example, the need for a broader, yet deeper, education has resulted in many states requiring a 150-hour college program for those who aspire to be CPAs. It is expected that all states will have such a requirement by 2008.

CAREERS IN ACCOUNTING THAT DO NOT REQUIRE A COLLEGE DEGREE

As noted before, there are positions in accounting that are identified by the U.S. Labor Department as requiring less than a college degree. A variety of bookkeeping, accounting, and auditing clerks are needed in all types of organizations; in 1998, there were 2.1 million such clerks. As reported by the U.S. Department of Labor Statistics, approximately a fourth of these workers were in wholesale and retail trade. The outlook for employment (to 2008) is that virtually all job openings will be related to replacement of individuals who have left positions. There is high turnover in this category of workers as workers move to other types of positions, including ones that represent promotions, or leave the labor force.

Most positions require a high school diploma and exist in virtually every industry in the United States. Such workers are expected to know basic computer software programs. Most U.S. comprehensive and vocational high schools offer courses in accounting and in computer software applications. Also, proprietary business colleges as well as junior and community colleges have programs that prepare students with the basic knowledge and skills needed in many beginning accounting positions. Many employers provide training on the job for the specific applications that new employees need to understand and use. Many employers provide training when there are software or system changes in the accounting information system.

The key task of accounting-related clerks is to maintain financial records. Such workers compute, classify, process, and verify numerical data. In large as well as mid-size businesses, for example, there are departments that handle accounts payable, accounts receivable, or cash. For such departments, companies seek employees who have a basic understanding of accounting principles, possess an organized style of work, and can handle communications with vendors (in accounts payable), customers (in accounts receivable), or personnel in human resources (benefits, pensions). Ability to work under pressure and meet deadlines is also important in some positions. Entry-level workers are generally responsible for handling the details of transactions and for preparing schedules that show the results of processing transactions.

Promotional opportunities are available in many organizations. Individuals who continue their education on a part-time basis and who display maturity and wisdom in their associations with co-workers are considered good candidates for supervisory positions. Responsible, dependable managers often began as clerks but were willing to continue to learn not only all aspects of their jobs but also the total work of the organization in relation to the accounting function.

CAREERS IN ACCOUNTING RELATED TO DOCTORAL DEGREES

University programs that lead to doctoral degrees in accounting provide graduates who find employment in college teaching and in technical positions in public accounting firms, professional standard-setting organizations, and other organizations in which high-level expertise in such specializations as accounting theory, accounting systems design, or accounting policy are in demand.

Opportunities for accountants with doctorates reflect the need for accountants to have leading-edge vision in a rapidly changing global business environment. Advanced studies leading to a doctorate will provide individuals with theoretical understanding who can devise new principles to assure the relevance of financial information that is reported to shareholders and others. Advanced studies will also provide individuals who can design the effective and efficient accounting information systems needed in business and government.

SPECIALIZATIONS WITHIN THE FIELD OF ACCOUNTING

Bodies such as the American Institute of Certified Public Accountants (AICPA) provide specialized credentials in such fields as personal financial planning and information technology for individuals who are CPAs. As of mid-2000, the AICPA began discussion of some type of international business professional designation that would complement the CPA credential. It is the belief of the leadership of the AICPA that holders of a global credential would have national and international recognition and credibility as business professionals who can function in the global marketplace. This effort is relevant because a new international accounting standard-setting structure is scheduled for implementation as of January 1, 2001.

Other initiatives in the United States relate to environmental accounting, forensic accounting, international accounting, and fraud accounting. Organizations with missions related to a specialization are active in establishing standards to guide practitioners who choose to participate in the field.

RELATED FIELDS

Accounting is often referred to as "the language of business." That language has wide application. Many occupations are open to those who have both a background in accounting and analytical skills. Among occupations in which accounting training is perceived to be valuable are budget officers, lending officials in banks, securities advisers, financial analysts, and FBI investigative agents.