Pros and Cons of Becoming a Financial Accountant
Financial accountants maintain accurate financial records for businesses and individuals. Find out about the pros and cons of financial accounting to decide if it's a career you want to pursue.
| Pros of a Financial Accounting Career |
|---|
| Above-average earnings (median income of approximately $65,000)* |
| High career mobility (training for this career can transfer to other finance positions)* |
| Opportunities for self-employment* |
| May work in an office or from home* |
| Cons of a Financial Accounting Career |
|---|
| Most positions require a 4-year degree or higher* |
| May need certification for some financial reporting tasks* |
| Some positions require travel to clients' offices* |
| Keen competition for prestigious positions* |
Source: *U.S. Bureau of Labor Statistics.
Essential Career Info
Job Description
Financial accountants are responsible for creating and maintaining financial records. They typically use software to create spreadsheets and graphs, prepare tax returns, balance accounts and generate financial statements. Most financial accountants work in an employer's office, but some are self-employed, work from home or travel to clients' places of business. According to the U.S. Bureau of Labor Statistics (BLS), most accountants and auditors worked 40 hours a week, but one in five worked longer hours, especially during tax season.
Salary Information and Career Outlook
In 2014, the BLS reported that accountants and auditors earned a median salary of about $65,000. The top 10% earned about $115,000 or more per year, while the bottom 10% earned around $40,000 or less per year. The BLS predicted that job opportunities for accountants and auditors would grow by 13% from 2012-2022. Demand for these professionals is projected to increase as the need for financial responsibility among companies continues to grow as an effect of recent fiscal crises, new regulations and business globalization. Competition, however, will still be keen for positions in prominent firms.
What Are the Requirements?
Education
Most employers require financial accountants to hold at least a bachelor's degree in accounting or a related field, such as a degree in business administration with a concentration in accounting or finance. A bachelor's degree in accounting often includes courses in accountancy information systems, business law, strategic management and business communication. Most employers also require financial accountants to have some level of experience in the field, so many college programs help students obtain internships with accounting firms or companies.
Essential Skills for Financial Accountants
Financial accounts usually spend a lot of time working with numbers and software, so they must have strong math and computer skills. Good communication skills are essential for financial accountants who work with teams and conduct presentations. Since you'll be working with large amounts of data, you'll also need strong analytical and organizational skills as well as an eye for detail.
What Employers Are Looking for
Most employers are looking for financial accountants with education and previous experience in the field. The ability to work with a variety of people and use data management software is also important. Below are some examples of real job postings found in March 2012:
- A California-based financial company advertised for a financial accountant with a bachelor's degree or equivalent experience to maintain financial records, balance accounts, participate in group projects and resolve account issues. The employer preferred applicants with experience in financial statement preparation.
- A Michigan company was looking for a financial accountant with 2-5 years of public or corporate accounting experience and knowledge of Generally Accepted Accounting Principles (GAAP). The ideal candidate has the Certified Public Accountant (CPA) credential and experience in services or real estate.
- A California company placed an ad for a financial accountant with a bachelor's degree in accounting and 2-5 years of experience to assist the director of finance with detail accounting duties. The ideal candidate has strong analytical, math and communication skills as well as familiarity with cost analysis.
How to Make Your Skills Stand out
Get Certified
Many accountants obtain the Certified Public Accountant (CPA) credential from their state board of accountancy to prove professional competence to potential clients and employers and increase job prospects. In fact, this credential is required in order to file reports with the Securities and Exchange Commission. To earn the CPA credential, you generally must have completed 150 college hours, which is 30 hours beyond most bachelor's programs. You must also acquire at least 2 years of public accounting experience and pass the 14-hour CPA exam.
Earn a Graduate Degree
While a bachelor's degree is the minimum requirement to enter this career, some employers will only hire applicants who hold master's degrees. The BLS even reports that financial accountants who hold master's degrees were expected to have the best job prospects. Additionally, earning this degree can supply you with the extra 30 credit hours needed to obtain CPA certification. You might, for example, earn a Master of Business Administration degree with a concentration in finance or accounting. Some schools offer programs that allow you to earn both your bachelor's and master's degrees in 5 years.
Other Careers to Consider
Financial Examiner
If an accounting career doesn't appeal to you, consider working as a financial examiner. These workers assess financial institutions, agencies and other organizations for risk, management issues and compliance to federal regulations. Most positions require a bachelor's degree or higher in accounting or a related field. The BLS predicted that the number of jobs in this field would grow by 27% from 2010-2020 as the need for financial oversight increases. According to the BLS, the median salary for financial examiners was about $75,000 as of May 2011.
Financial Analyst
If you'd rather work in the investment field, consider a career as a financial analyst. These workers analyze data and trends to help businesses and individuals make smart investment decisions. You must have at least a bachelor's degree in accounting or finance, but some positions require a master's degree. According to the BLS, employment for financial analysts was expected to grow by 23% from 2010-2020, and the median salary for these workers was around $76,000 as of 2011.
