How to Become an Accounting Professional (Taming the Tax Terrain)

If you’ve ever contemplated of crunching numbers that impact big business decisions or pondered about the pathway to become an accounting professional, you’re at the right spot.

In this guide, we’ll delve into the PRECISE steps you need to undertake to kick-start your career as an accounting professional. We’ll discuss:

• The skills you require.
• The education that can propel you towards your goal.
• How to secure a job as an accounting professional.

So, whether you’re a finance novice or a numbers-savvy individual aiming to level up your skills, stay connected.

We’re about to unfold the roadmap to becoming an accounting professional.

Let’s dive in!

Steps to Become an Accounting Professional

 

Step 1: Gain Initial Understanding of the Accounting Profession

Before pursuing a career as an accounting professional, it is important to understand what the profession entails.

Start by researching what accountants do on a daily basis, what kind of companies hire accountants, and what the job market looks like for this profession.

Understand the different fields of accounting like financial accounting, management accounting, auditing, tax accounting and forensic accounting.

Reading accounting textbooks, online articles, or watching educational videos can help you gain a basic understanding of the concepts and terminologies used in accounting.

This will also help you understand the required skills for an accounting professional such as strong numerical abilities, analytical thinking, attention to detail, and ethics.

It’s also beneficial to talk to people who are already working in the accounting field.

They can provide first-hand insight into the profession, share their experiences, and give advice on the steps to take to become an accountant.

Additionally, try to get a basic understanding of the common accounting software used in the industry.

This will not only enhance your understanding of the profession but also make you more marketable when you start job hunting.

Remember, this step is about familiarizing yourself with the accounting profession and deciding if it is the right fit for you.

It’s important to be sure before you start investing your time and resources in pursuing this career path.

 

Step 2: Pursue Relevant Educational Qualifications

In the pursuit of a career as an accounting professional, acquiring relevant educational qualifications is a crucial step.

Typically, the minimum required qualification is a bachelor’s degree in accounting or a related field such as finance.

Your coursework should cover fundamental areas like financial accounting, managerial accounting, auditing, taxation, and business law.

You may want to consider pursuing a Master’s degree in Accounting or Business Administration with a concentration in accounting, which can provide more in-depth knowledge and can also be beneficial for career advancement.

Many higher-level positions in accounting require postgraduate education.

During your studies, you may also have the opportunity to intern at an accounting firm or within the accounting department of a business.

This provides practical experience that can be extremely beneficial when starting your career.

Furthermore, consider pursuing professional certifications such as Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Certified Internal Auditor (CIA).

These certifications can significantly boost your credibility and job prospects.

They require passing exams and meeting certain work experience requirements, so it is advisable to start preparing for them while studying.

Remember, the field of accounting is continuously evolving with new technologies and regulations, so keeping up-to-date with these changes through continuous learning is key to being a successful accounting professional.

 

Step 3: Acquire Basic Accounting Skills and Principles

As part of the initial steps to becoming an accounting professional, you must familiarize yourself with basic accounting principles and skills.

This will include understanding the fundamentals of bookkeeping, financial accounting, managerial accounting, and tax accounting.

In your accounting studies, you will learn to prepare, analyze, and interpret financial statements, manage budgets, and understand complex tax laws.

Furthermore, you’ll be trained to use various accounting software applications that are essential to modern accounting practices.

These skills are critical in maintaining the financial health of an organization and making informed business decisions.

Moreover, you’ll be introduced to the ethical standards and professional conduct expected in the accounting field.

Understanding these principles early on will guide your career, as you will be expected to demonstrate integrity, objectivity, professional competence, and due care in your work.

This step forms the foundation of your accounting knowledge and is crucial for success in this profession.

It is highly recommended to take part in relevant internships or part-time jobs to gain practical experience and apply what you’ve learned in a real-world context.

This will not only enhance your skills but also give you a competitive edge when seeking employment in the future.

 

Step 4: Build Proficiency in Accounting Software

As an accounting professional, you need to have a good understanding and proficiency in using different accounting software.

This is because most of the accounting tasks such as recording financial transactions, managing invoices, tracking expenses, and preparing financial reports are done using these tools.

Start by getting familiar with some of the most common accounting software such as QuickBooks, Microsoft Excel, Sage, and Zoho Books.

There are plenty of online tutorials and courses available for these tools that you can utilize.

You can also consider getting certifications for these software as it can enhance your resume.

As you gain experience in your career, you might need to work with specialized software specific to the industry you are working in.

For example, construction accounting software for construction industry, medical practice management software for healthcare industry, etc.

Staying updated with the latest software and technology in the accounting field is crucial for your career advancement.

Remember, the goal is not just to learn how to use the software, but to understand how it can be utilized efficiently to streamline the accounting processes, ensure accuracy of financial data, and provide valuable insights for business decisions.

 

Step 5: Develop Hands-On Experience Through Internships

As an aspiring Accounting Professional, securing internships during or after your degree program is crucial.

These opportunities provide real-world experience in the field of accounting and can help you understand how the theories and concepts learned in school apply to actual business scenarios.

Internships often involve tasks like assisting with audits, preparing financial reports, tax-related tasks, and general ledger duties.

They will expose you to different aspects of accounting and provide a practical understanding of the role.

Additionally, internships can often lead to job offers.

Many firms prefer to hire candidates they have trained and evaluated over an extended period, making internships an excellent opportunity to showcase your skills and work ethic.

Lastly, internships provide networking opportunities.

You get to interact with professionals in the field, which can lead to mentorship opportunities and connections that could be beneficial for your future career.

Always aim to find internships in the areas of accounting that interest you most.

This will not only help you gain more relevant experience but will also allow you to determine if that particular specialty is a good fit for your career aspirations.

 

Step 6: Network With Accounting Professionals

Building a strong network with other accounting professionals is an essential step in pursuing a career in this field.

It can open doors to new opportunities, provide access to industry-specific resources, and offer valuable advice from those who have successfully navigated the accounting industry.

To start networking, consider joining professional organizations such as the American Institute of Certified Public Accountants (AICPA), or the Institute of Management Accountants (IMA).

These organizations often host events, conferences, and seminars that provide excellent networking opportunities.

Another way to network is to attend job fairs and career events.

These events are usually filled with potential employers and other accounting professionals.

Even if you’re not looking for a job, these events can provide valuable insight into the current job market and industry trends.

LinkedIn can also be a valuable networking tool.

You can join industry-specific groups, participate in discussions, and connect with industry professionals.

Remember to keep your LinkedIn profile updated and professional.

Finally, consider finding a mentor in the accounting field.

A mentor can provide guidance, share their experiences, and help you navigate the complexities of the accounting industry.

You can find a mentor through networking events, LinkedIn, or through your school’s alumni network.

Networking should be an ongoing process throughout your career.

It’s not just about making contacts, but also about maintaining and nurturing those relationships.

Be sure to follow up with the contacts you make and keep them updated on your career progression.

The more active and engaged you are in networking, the more benefits you’ll reap in your career.

 

Step 7: Consider Specialization Areas

As you progress in your career as an accounting professional, it would be beneficial to consider specializing in a specific area of accounting.

There are several different fields to choose from, each with their own unique focus and benefits.

For example, you could become a Forensic Accountant, where you investigate financial crimes and fraud.

Or you might choose to specialize as a Tax Accountant, focusing on preparing and filing tax returns for individuals or businesses.

Deciding on a specialty can depend on your personal interests, the opportunities available in your area, or the demand for certain specialties in the job market.

Specialization also provides opportunities for advanced career growth and higher earning potential.

In your journey towards specialization, you might also consider obtaining relevant certifications.

For instance, if you wish to specialize in Management Accounting, obtaining a Certified Management Accountant (CMA) certification might enhance your credibility.

Similarly, if Tax Accounting is your chosen path, a Certified Public Accountant (CPA) license is almost a necessity.

Keep in mind that each specialization has different requirements and prerequisites, so it is crucial to do your research and plan your career path accordingly.

 

Step 8: Obtain Certification (e.g., CPA, CMA, ACCA)

In order to take your accounting career to the next level, obtaining a professional certification such as Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Association of Chartered Certified Accountants (ACCA) is often the next step.

These certifications will validate your expertise in accounting and will make you more marketable to employers.

To become a CPA, you will have to pass a rigorous four-part examination, and requirements vary from state to state, so it’s important to check your state’s specific requirements.

If you are more interested in management accounting, the CMA designation may be a better fit for you.

This certification requires passing two exam parts and fulfilling two continuous years of professional experience in management accounting or financial management.

The ACCA certification is globally recognized and offers flexibility in terms of exam scheduling.

It consists of 13 exams and requires three years of relevant practical experience.

While preparing for these exams, it’s recommended that you enroll in a review course.

This will help you better understand the material and prepare you for the type of questions you’ll encounter.

It also shows employers that you’re committed to your professional development.

Remember, getting certified isn’t just about passing an exam; it’s about mastering the skills and knowledge that will help you excel in your accounting career.

 

Step 9: Stay Abreast of Regulatory Changes and Continuing Education

As an accounting professional, it’s essential to keep up-to-date with the latest regulatory changes and industry standards.

Regulations governing accountancy and financial reporting often change, and a proficient accountant needs to be aware of these changes to deliver accurate and compliant work.

You should make it a habit to monitor financial news, follow updates from financial regulators, and participate in industry seminars, webinars, and workshops.

Joining a professional body such as the American Institute of Certified Public Accountants (AICPA) or Institute of Management Accountants (IMA) can also help you stay informed about the latest developments and changes in accounting standards.

In addition, most states require Certified Public Accountants (CPAs) to complete a specific number of Continuing Professional Education (CPE) credits annually to maintain their license.

Pursuing these credits not only helps you meet your professional obligations but also provide opportunities to expand your knowledge and expertise in specific areas of accounting.

Remember, in the world of finance, continuous learning and adapting to changes is not just beneficial but essential to remain effective and competitive in your role.

 

Step 10: Apply for Entry-Level Accounting Positions

After completing your educational requirements and gaining the necessary certifications, it’s time to start your professional journey by applying for entry-level accounting positions.

These positions, such as Junior Accountant or Accounting Assistant, will provide you with the opportunity to apply the knowledge and skills you’ve learned.

In your application, you should highlight the specific areas of accounting you have expertise in, such as financial accounting, cost accounting, tax accounting, or auditing.

Don’t forget to include any internships or related work experiences you’ve had, as employers often look for practical experience in addition to academic qualifications.

During the job search process, you may find opportunities in various types of organizations, including accounting firms, corporations, government agencies, and non-profit organizations.

Select a job that aligns with your career goals and interests.

Lastly, prepare for job interviews by brushing up on your technical knowledge and practicing answers to common interview questions.

Remember, it’s not only about showcasing your accounting skills but also demonstrating your problem-solving abilities, attention to detail, and communication skills.

This step is crucial in setting the foundation for your career in the accounting field.

 

Step 11: Demonstrate Ethical Behavior and Integrity

In the field of accounting, demonstrating ethical behavior and integrity is essential as you’re entrusted with the financial management and transactions of businesses.

This requires you to be honest, transparent and uphold moral principles in every aspect of your work, whether it’s financial reporting, tax calculations, or auditing.

A way to demonstrate this integrity is by adhering to the ethical guidelines and standards set by professional accounting bodies, such as the American Institute of Certified Public Accountants (AICPA).

These codes of conduct provide guidelines to help you maintain professionalism, objectivity, confidentiality, and avoid conflicts of interest.

In addition, it’s important to continuously improve your knowledge of the latest laws and regulations in accounting and finance.

Attend workshops, seminars or webinars to stay updated with the industry standards and best practices, to ensure you always deliver accurate and ethical work.

Also, remember that maintaining integrity is not just about how you handle numbers, but also how you handle relationships with your clients, colleagues, and supervisors.

Be open, honest, and maintain a high level of communication, providing them with the correct and complete information they need to make informed decisions.

In the long run, your ethical behavior and integrity will not only protect your reputation but also contribute to the success of the organization you work for.

 

Step 12: Seek Opportunities for Advancement and Professional Growth

As an accounting professional, it’s essential to constantly seek opportunities for advancement and professional growth.

This can be accomplished in several ways, such as earning additional certifications, pursuing a higher degree, or taking on more significant roles within your organization.

Certifications such as Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Certified Internal Auditor (CIA) can significantly boost your career prospects.

These certifications demonstrate your expertise in various areas of accounting and are highly respected within the industry.

Furthering your education with a master’s degree in accounting or business administration (MBA) could also provide opportunities for advancement.

These degrees can open doors to leadership roles, such as financial manager or controller, and even executive-level positions like CFO.

Within your organization, seek out new challenges and responsibilities.

Volunteering for projects, expressing interest in leadership roles, or seeking out mentorship from senior accountants can help you gain valuable experience and demonstrate your initiative.

Remember to also invest in your professional network.

Attend industry events, join professional accounting organizations, and build relationships with colleagues and professionals in the field.

Networking can often lead to job opportunities and can provide valuable insight and advice for your career growth.

By constantly seeking opportunities for advancement and professional growth, you will continue to refine your skills, broaden your knowledge, and open new doors in your accounting career.

 

Accounting Professional Roles and Responsibilities

Accounting Professionals are responsible for managing and analyzing an organization’s financial data, ensuring accuracy and compliance with regulations.

They use their expertise in accounting principles and standards to support financial decision-making within the organization.

They have the following roles and responsibilities:

 

Financial Data Management

• Record, organize, and collect financial data.
• Ensure the integrity and accuracy of financial data.
• Use accounting software for data management and analysis.

 

Financial Reporting

• Prepare regular financial statements including balance sheets, income statements, and cash flow statements.
• Analyze financial reports and present insights to management.
• Contribute to annual reports and financial forecasts.

 

Compliance

• Ensure compliance with accounting standards, regulations, and laws.
• Stay updated with new financial and tax laws.
• Prepare documents for audits and cooperate with internal and external auditors.

 

Budgeting and Forecasting

• Assist in budget preparation and management activities.
• Support in creating financial forecasts and strategies.
• Analyze budget variances and make appropriate recommendations.

 

Accounts Receivable and Payable

• Manage accounts receivable and payable.
• Ensure timely payment of invoices and identify irregularities.
• Coordinate with clients and vendors regarding billing and payments.

 

Cost Accounting

• Perform cost analyses and suggest cost reduction strategies.
• Monitor and analyze departmental budgets.
• Allocate costs accurately across various departments or projects.

 

Taxation

• Prepare and file tax documents.
• Ensure accurate calculation and timely payment of taxes.
• Resolve tax-related issues and handle tax audits.

 

Financial Advisory

• Provide financial advice to management for decision making.
• Identify financial risks and suggest mitigation strategies.

 

Reconciliation

• Perform regular reconciliation of ledgers and accounts.
• Resolve any discrepancies or inaccuracies in financial data.

 

Continuous Learning

• Stay updated with latest accounting standards and technologies.
• Participate in professional development activities and workshops.

 

Communication

• Communicate financial information and concepts effectively to non-financial stakeholders.
• Report to management about financial activities and status.

 

What Does an Accounting Professional Do?

Accounting Professionals typically work for corporations, small businesses, or as self-employed individuals, offering their services to a wide range of industries.

They are responsible for managing and maintaining the financial health of an organization.

This involves keeping accurate records of financial transactions, analyzing financial data, and preparing financial reports.

Their daily tasks may include reconciling bank statements, preparing and filing tax returns, auditing financial documents and procedures, and ensuring compliance with state and federal regulations.

Accounting professionals also assist in budget preparation and financial forecasting, providing valuable input to assist management in making strategic decisions.

They work closely with other departments, stakeholders, and clients to ensure financial transparency and efficiency.

Moreover, they may be responsible for suggesting cost-saving strategies, identifying financial risks, and proposing solutions to enhance profitability.

Accounting Professionals play a critical role in maintaining the financial integrity of an organization, aiding in its growth and development.

Their expertise is vital in guiding strategic planning and decision-making processes.

 

Essential Accounting Professional Skills

• Numerical Competency: Accountants deal with numbers on a daily basis. They need to have strong numerical skills for accurate calculations and financial forecasting.
• Financial Reporting: The ability to prepare, interpret and present clear and accurate financial statements is vital. This includes knowledge of Generally Accepted Accounting Principles (GAAP).
• Attention to Detail: Accountants need to be meticulous to avoid and catch errors during financial audits and calculations. Every digit and decimal point matters.
• Computer Proficiency: Knowledge of accounting software such as QuickBooks, Microsoft Excel, and other financial management tools is essential.
• Knowledge of Tax Laws: Understanding the local, state, and federal tax laws and regulations is critical to ensure compliance and provide the right advice to clients.
• Organizational Skills: Accountants manage a lot of data and documents. Efficient organization and filing skills are needed to handle large volumes of information.
• Communication Skills: As accountants often explain complex financial concepts to non-financial individuals, clear and effective communication skills are critical.
• Problem-Solving Skills: Accountants often identify and solve financial problems and discrepancies. They should possess critical and analytical thinking abilities.
• Time Management: Accountants work with tight deadlines, especially during tax seasons and end of financial years. They must manage their time efficiently to complete tasks promptly.
• Ethics: Accountants deal with sensitive financial data. Adherence to ethical standards and maintaining confidentiality is crucial in this role.
• Teamwork: Collaboration is key in an accounting environment. They often work in teams and should be able to work well with colleagues and clients.
• Continuous Learning: The financial sector is constantly evolving. Accountants should be committed to continuous learning to stay updated with the latest industry trends, regulations, and best practices.
• Business Acumen: Understanding business operations and strategies helps accountants provide valuable insights and advice to business owners and managers.
• Data Analysis: The ability to analyze financial data, draw conclusions and make predictions or recommendations is a key skill in accounting.
• Decision Making: Accountants often have to make crucial financial decisions. They should be able to make informed and responsible choices.

 

Accounting Professional Career Path Progression

The Foundation: Junior Accountant

Every accounting professional’s journey begins as a Junior Accountant.

At this stage, you are learning the ropes and gaining practical experience.

Your tasks may include preparing financial documents, performing basic bookkeeping, and aiding with budget preparation.

Here are some tips for success in this role:

1. Continuous Learning: Keep yourself updated with the latest accounting standards and regulations.
2. Ask for Guidance: Don’t hesitate to ask your seniors for advice and clarification on work-related matters.
3. Accuracy: Ensure high levels of accuracy in your work as it forms the base for all financial decisions.

 

The Ascent: Accountant

With experience and confidence, you’ll transition into the role of an Accountant.

You will handle more complex financial statements, participate in auditing processes, and become an important part of the finance team.

Here’s how to thrive at this stage:

1. Problem Solving: Improve your problem-solving skills by tackling complex accounting issues and finding optimum solutions.
2. Collaboration: Foster teamwork and communicate effectively with your peers and other stakeholders.
3. Regulatory Compliance: Focus on ensuring your work and the organization’s financial activities comply with prevailing regulations.

 

Reaching New Heights: Senior Accountant

Next on the ladder is the Senior Accountant position.

You are recognized as a leader within the team, trusted with mentoring roles, leading audits, and driving financial projects to success.

To excel as a Senior Accountant:

1. Mentorship: Share your knowledge and help junior accountants develop their skills.
2. Strategic Thinking: Look beyond numbers and consider the larger financial strategy and planning.
3. Leadership: Lead by example and inspire others with your work ethic and problem-solving skills.

 

Beyond the Horizon: Managerial Roles and Beyond

As your career progresses, you may transition into roles such as Accounting Manager, Finance Manager, or even CFO.

These roles involve greater responsibilities, leadership, and strategic decision-making.

Here’s what to focus on:

1. Financial Leadership: Drive financial initiatives and shape the financial direction of your projects and teams.
2. Management Skills: Develop strong leadership and communication skills to guide your team effectively.
3. Innovation: Stay ahead of the curve by embracing the latest financial technologies and methodologies.

 

Pinnacle of Success: Chief Financial Officer (CFO)

The pinnacle of an accounting career is often a role like CFO.

Here, you’ll be responsible for shaping the overall financial strategy of the organization, making critical financial decisions, and managing larger finance teams.

 

Accounting Professional Salary

Entry-Level Accountant

• Median Salary: $40,000 – $55,000 per year
• Entry-level accountants typically have 0-2 years of experience and usually hold a bachelor’s degree in accounting or a related field.

 

Mid-Level Accountant

• Median Salary: $55,000 – $70,000 per year
• Mid-level accountants have 2-5 years of experience and often take on more complex financial reporting and auditing responsibilities.

 

Senior Accountant

• Median Salary: $70,000 – $90,000 per year
• Senior accountants have 5+ years of experience and are responsible for leading auditing projects, making significant financial decisions, and mentoring junior accountants.

 

Accounting Manager / Finance Manager

• Median Salary: $80,000 – $110,000 per year
• These roles come with significant experience and often involve managing an accounting team, overseeing financial operations, and strategic financial planning.

 

Chief Financial Officer (CFO)

• Median Salary: $120,000 – $200,000+ per year
• This high-level position requires extensive experience and deep financial expertise and often involves setting financial strategies for a company.

 

Accounting Professional Work Environment

Accounting Professionals typically work in offices, but with the advent of technology, many now have the flexibility to work from home or other remote locations.

They may be employed in various sectors such as finance, government, healthcare, or may work for accounting firms.

Accountants often work full time and may work extra hours during certain periods such as the end of the fiscal year, tax season, or times of audits.

They are usually required to have a meticulous eye for detail and the ability to concentrate for long periods.

The work environment of an accounting professional is often collaborative as they are required to work with other departments or teams.

They may also interact with a company’s management, employees, and clients to explain and provide information on financial matters.

After gaining substantial experience, some accountants may choose to open their own accounting firm or offer independent consultancy services.

 

FAQs About Becoming an Accounting Professional

What is needed to become an accounting professional?

To become an accounting professional, you typically need a strong foundation in accounting principles and practices, business operations, and finance.

This can be achieved through a combination of formal education (such as a bachelor’s degree in accounting or a related field), self-study, and practical experience.

Key skills include proficiency in financial analysis, knowledge of accounting software, understanding of tax laws and regulations, and analytical thinking.

Additionally, soft skills like attention to detail, integrity, and communication are important in this field.

 

How long does it take to become an accounting professional?

The time it takes to become an accounting professional can vary depending on your educational path and experience level.

If you pursue a traditional bachelor’s degree in accounting, it typically takes four years.

After obtaining your degree, many choose to sit for the Certified Public Accountant (CPA) exam, which requires additional study and preparation time.

However, the combination of degree and certification can significantly enhance job prospects and earning potential.

 

Can I be an accounting professional without a degree?

While it’s possible to enter the field of accounting without a four-year degree, most accounting professionals have at least a bachelor’s degree in accounting or a related field.

Certain roles, such as a Certified Public Accountant (CPA), require this level of education along with passing the CPA exam.

However, roles like bookkeeping or auditing clerk might be attainable with an associate’s degree or certificate.

 

Is being an accounting professional a stressful job?

Being an accounting professional can be stressful at times, especially during peak periods like the end of the fiscal year or tax season when workload and deadlines may increase.

However, the level of stress can vary depending on the specific role, the company, and the individual’s time management and coping strategies.

Many accounting professionals find the work to be rewarding and enjoy the challenge of helping businesses and individuals manage their finances effectively.

 

What are the prospects for accounting professionals in the next decade?

The prospects for accounting professionals are expected to grow at a rate consistent with the average for all occupations over the next decade, according to the Bureau of Labor Statistics.

As businesses continue to face increasingly complex financial regulations and tax laws, the demand for skilled accounting professionals is likely to remain high.

In addition, technological advancements may create new opportunities for accounting professionals in areas like data analysis and financial consulting.

 

Conclusion

And there you have it.

The quest to become an accounting professional may seem daunting, but it’s unquestionably gratifying.

Equipped with the right competencies, qualifications, and resolve, you’re well on your way to making a substantial contribution in the financial world.

Bear in mind, the journey may be tough, but the possibilities are boundless. Your expertise could lead to the next groundbreaking approach in financial management, shaping how businesses operate and succeed.

So, take that initial leap. Immerse yourself in continuous learning. Connect with industry professionals. And above all, never cease to crunch numbers.

Because the world is waiting for what you can bring to the table.

And if you’re seeking personalized advice on kickstarting or progressing your career in accounting, explore our AI Career Path Advisor.

This complimentary tool is designed to provide tailored tips and resources to assist you in effectively navigating your career path.

Trendsetting Careers: The Jobs That Are Leading the Pack

Jobs That Jolt: The Most Hated Careers by Employees

AI’s No Threat Here: Careers That Cherish Human Expertise

Redefining Riches: Surprising High-Paying Jobs That Could Be Yours!

Career Adventures: Unusual Jobs That Are Anything But Boring