Accountants also play a crucial role in helping organizations make informed financial decisions and maintain financial stability. They need to have excellent analytical and problem-solving skills, as well as a strong understanding of accounting principles, tax laws, and regulations. In the UK, accountants and management accountants typically have a bachelor’s or master’s degree in accounting.
Company shareholders are then able to assess the value of a company based on these documents. The rise of technology and automation is changing the landscape of accounting. While some basic tasks can be automated, this shift allows accountants to focus more on strategic roles, such as analysis, advisory services, and decision-making support.
Hard skills for accountants
You also usually need to get some relevant work experience to sit for the CPA exam—which is changing in 2024 to account for the industry’s growing emphasis on technology, Smith says. Candidates will continue taking core parts of the exam, including accounting, tax, and auditing, but will be able to choose an area of specialty, including analytics, information systems, or compliance. Job security is the No. 1 benefit of being an accountant, Smith says. By 2031, employment of accountants and auditors is expected to grow 6%, and there will be more than 135,000 job openings in the field each year, according to the U.S.
Recording and analyzing data is a big part of an accountant’s job description, and these professionals also need to communicate their findings and recommendations. Accountants may present reports to stakeholders, discuss their work with other accounting personnel or meet with clients to go over tax returns. Accountants’ duties may include preparing financial statements and reports, evaluating risk and ensuring accuracy and compliance in record-keeping. Accountants might also help develop organizational budgets and advise executives on financial decisions. In addition to technical skills, soft skills like communication and problem-solving are helpful for accountants. Whether working in large accounting firms or as independent accountants, accountants must communicate their findings to coworkers and clients.
Are accountants and bookkeepers the same thing?
Professional accountants stay updated with changing tax regimes and reforms and can advise which tax treatments you should apply to ensure you don’t pay more tax than necessary. Accountants can ensure that all tax forms, returns, and submissions are completed correctly, https://www.bookstime.com/ accurately and submitted on time to avoid late payment penalties, errors, omissions, or fines. An accountant will work with you throughout the year to offer advice that allows you to operate the business in a way which gives you the biggest tax advantages.
But the earning potential could be much higher depending on the specifics of an accountant’s role. But most require a bachelor’s degree in accounting or finance and 150 college credit hours—which is 30 more than a typical bachelor’s degree requirement. You might look for an undergrad accounting program that offers these additional credits, or you could pursue a master’s degree. While common skills are important to an accountant’s what can an accountant do for me professional success, specialized skills ensure they are highly effective in the field. According to data pulled from active job postings, here are the top specialized skills employers are looking for in accounting professionals. To be effective in this role, an accountant must understand the basic functions of a management to provide accurate direction and guidance to coworkers and clients seeking financial advice.
Controller vs. Accountant
This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content. Certifications like Certified Public Accountant (CPA) or Certified Management Accountant (CMA) are valuable in advancing an accountant’s career. But we have to do it, so it’s good to know what the small business tax rates are for 2020—if for no other reason than to keep the IRS off your back. In short, accountants can be bookkeepers but not all bookkeepers are accountants. Take our free career test to find out if accountant is one of your top career matches.
- For example, Heller says his accounting employees work fully in-office, but a fully or mostly distributed company may hire fully remote accountants.
- They’ll work with you to set goals – personal, professional and financial – then give you tools to measure your progress.
- Online accountants like Mazuma and tools like accounting software support remote work so companies can track and share their financial data with accountants online.
- Their goal is not to maximize profits but to minimize costs and maximize their service to society, which distinguishes them from accountants employed by for-profit companies.
- Higher-earning accountants may earn more than $120,000 per year, while lower-earning accountants may earn less than $40,000 per year.
- They’re hired as a team member and paid a salary to perform basic accounting duties and prepare reports for a CPA to review.