10 Things to Know Before Pursuing a Career in Accounting

Summary

In this informative video, an expert discusses the accounting field, covering topics like entry-level salaries, educational requirements, certifications, and key skills needed for success. The conversation delves into essential knowledge areas, including regulations, ethical standards, and software proficiency. The expert highlights various career paths such as tax, audit, and forensic accounting, as well as opportunities in different industries. Additionally, the video touches on the importance of continuous learning, with a focus on emerging technologies like AI and blockchain. Overall, it presents accounting as a dynamic and rewarding career with vast opportunities.

Takeaways

• 😀 Entry-level salaries in accounting typically range from $50,000 to $60,000, with the potential for a 10-15% increase in salary after one year.
• 😀 To enter the accounting field, an associate's degree is sufficient for basic roles like bookkeeping, while a bachelor's or master's degree is required for more advanced certifications like CMA or CPA.
• 😀 Becoming a Certified Management Accountant (CMA) or Certified Public Accountant (CPA) offers opportunities for higher-level responsibilities and specialization in areas like auditing and tax.
• 😀 Communication skills are key in accounting—accountants need to explain complex financial concepts to individuals at all levels of a company, from clerks to CEOs.
• 😀 Ethical standards are a major part of the profession, with accountants required to maintain confidentiality and resist pressures to make unethical decisions.
• 😀 Accountants must be proficient in Excel and familiar with software tools like Power BI and Tableau for data visualization and trend analysis.
• 😀 Accounting offers a wide range of specializations, including tax, audit, management accounting, forensic accounting, and internal controls.
• 😀 There are significant career opportunities in accounting due to a shortage of new professionals and many retirements in the field.
• 😀 Continuing education is essential in accounting, with professionals required to keep up with industry developments and technological changes such as blockchain and AI.
• 😀 The work environment for accountants can vary, with options for traditional office work, remote roles, or hybrid setups depending on the industry and specific job role.

Q & A

What is the expected starting salary after completing the accounting program?

The starting salary for entry-level jobs in accounting typically ranges from $50,000 to $60,000, though it can be slightly higher depending on the specific role and location.

How much can an accountant expect to earn after a year of experience?

After a year of experience, an accountant can expect a pay raise of around $10,000 to $15,000, depending on the role, the company, and other factors.

What are the educational requirements to enter the accounting profession?

To enter the accounting profession, you can start with an associate's degree for basic roles like bookkeeping, pursue a bachelor's degree for roles like Certified Management Accountant (CMA), or obtain a master's degree to become a Certified Public Accountant (CPA).

What is the difference between CMA and CPA certifications?

A CMA is a certification that demonstrates expertise in management accounting, while a CPA is a legal license that allows accountants to perform tasks like auditing and other regulated duties, which are required by law.

Are there any other certifications accountants can pursue?

Yes, accountants can also pursue certifications like the Enrolled Agent (EA) for tax-related work, or the Certified Internal Auditor (CIA) for those interested in internal auditing and controls.

What skills are essential for success in accounting?

While many people think accounting is all about math, key skills include communication, understanding regulations, being comfortable with data and computers, and being able to interpret and explain complex financial concepts to others.

What software should accountants be proficient in?

Accountants should be proficient in Excel, which is essential for managing data. They should also be familiar with analytical tools like Power BI and Tableau to visualize and interpret trends, and be comfortable with specialized accounting software.

What are some areas of specialization in accounting?

Accountants can specialize in various areas including tax accounting, auditing, management accounting, forensic accounting, internal controls, and can also work across industries such as aviation, entertainment, government, and non-profits.

What is the role of continuing education for accountants?

Continuing education is essential for accountants to stay current on industry changes, legal updates, and new technologies. It is required to maintain certifications like CMA and CPA and is often pursued in areas like AI, blockchain, or other emerging fields.

How is the accounting profession expected to change in the next 10 years?

The accounting profession is expected to see significant changes driven by technology. Automation, AI, and blockchain will play a larger role in streamlining processes, but accountants will still be needed to understand and apply these technologies effectively.