How to become an accountant

Are you looking for a stable, well paid, job for detail-oriented people? Consider a career in accountancy. We explain how to become an accountant in 5 steps.

Accounting is a lucrative and in-demand profession, with median earnings of $77,250 per year and 7% projected job growth between 2020 and 2030. An accountant maintains the financial records of individuals and groups and keeps them informed of their financial status. The profession provides a wide range of career opportunities and varies greatly depending on one’s area of specialization.

Studies have shown that accountants are among the most trusted professionals in the U.S. Accountants can work in a wide range of fields, including tax consultancy, auditing, financial analysis, and management. If you want to be an accountant, there are quite a few things you’ll need to know and skills you’ll need to master. It’s a long journey, but it’s worth it.

Qualified accountants are always in demand and are crucial to the efficient running of businesses and financial institutions. Don’t be fooled by the outdated image of accountants as lonely number-crunchers – becoming an accountant requires excellent people skills to effectively communicate complex financial information to clients and supervisors.

What do you do as an accountant?

Accountants are responsible for recording financial transactions and maintaining the financial records of companies and individuals. They also compile reports and calculate taxes based on the activities of their employers or customers.

» Read: How accountants combat fraud

While life as an accountant varies greatly depending on your specialization, some common tasks most accountants undertake include:

• ensuring accuracy and legality of financial statements
• preparing tax returns
• maximizing efficiency of account books
• identifying fraud risks
• maintaining financial records
• making recommendations to management
• developing cost-reduction and revenue-enhancing strategies

Choosing between industry vs public accounting

Before you become an accountant, you will first need to decide which area of the profession you want to enter. Most accountants go into public practice, which is a broad term that describes accountants who work for accounting firms, reviewing financial documents before disclosure to the public.

The other option is to go into industry; in this field, accountants are employed by companies to focus on internal documentation, fiscal performance evaluation, and budget planning.

“The typical accounting career path is to begin at a public accounting or a consulting firm and then potentially branch out and enter industry,” says Steven L. Harris, CPA, CGMA, and a managing partner at Rubin Brown. “A great advantage to working in public practice first is that you get a chance to experience a lot of different types of work right off the bat. For example, if you stay at a firm for your first 2 years, you get exposed to 1 or 2 tax seasons, which is a phenomenally valuable experience.”

What is the difference between an accountant and a CPA?

Becoming a CPA allows accountants to perform important tasks that non-certified accountants cannot, including writing audited financial statements, filing reports with the Securities and Exchange Commission, and certifying that financial statements are accurate.

“Aside from the obvious advantages of the credential, once of the most valuable aspects of taking the CPA exam is that studying for it really teaches you how to research and learn new accounting principles,” says Harris. “Those skills will be invaluable in your professional life. You are not going to know everything about public accounting coming off the CPA exam, but you are going to be an expert at finding information when you need it.”

» Read: How to pass the CPA exam

Extensive educational and ethical requirements and rigorous certification criteria make CPAs some of the most trusted accounting professionals in the field, as well as some of the best paid. CPAs may earn as much as $40,000 more per year than non-CPA accountants.

What degree do you need to be an accountant?

The educational requirements for an accounting career vary according to specialization and professional designation.

• With an associate degree in accounting, you qualify for entry-level roles like payroll administrator, tax preparer, or accounting clerk. A career in bookkeeping can begin with an associate degree, but experienced bookkeepers may have the same responsibilities as fully-fledged accountants.
• A bachelor’s degree in accounting is the path to non-CPA accountant roles like staff accountant, cost accountant, internal auditor, and, in time, accounting manager.
• In most states, CPAs need a bachelor’s degree (120 credits) as well an additional 30 credits in accounting or a related discipline. A master’s in accounting or an MBA are 2 common ways to earn those additional credits.

Step zero is to check the accountant prerequisites in your state with the relevant board of accountancy to ensure you are aware of key information. While an associate degree in accounting can lead to accountant-adjacent roles, most full accountants will need a bachelor’s degree.

Step 1: Earn a bachelor’s degree

Majoring in accounting is an obvious choice, but other suitable options include finance and business. Keep in mind that becoming a CPA requires an accounting major in all states except Alaska, Georgia, Hawaii, Maine, and Massachusetts. Check your state CPA requirements on the National Association of State Boards of Accountancy (NASBA) site before choosing a major.

Step 2: Choose an accounting specialization

After completing your bachelor’s, deciding on a specialization or sub-specialization will determine your next steps. Common accounting specializations include tax accounting, auditing, management accounting, financial accounting, forensic accounting, and personal finance.

“Your first choice is red pill or blue pill – industry or public accounting,” says Harris. “In the industry space, you will begin learning the language of whatever organization you’re working for. Switching industries or companies will require learning a whole new language again. Public accounting offers a lot more variety and broadly applicable skills right off the bat – I was an auditor first, working for a lot of different companies, and I also specialized in tax. This is referred to as learning ‘both sides of the house’ in public accounting. It made me very versatile.”

Step 3: Earn additional certifications (optional)

Certain specializations require additional credentials or certifications – for instance, Certified Fraud Examiner, Certified Management Accountant, and Certified Financial Planner.

Becoming a CPA will require an additional 30 college credits in most states, so this may mean doing an extra year of school or entering a master’s program, unless you are already enrolled in an accelerated or dual-degree program.

Step 4: Get professional experience

If you’re on the non-CPA path, it’s time to start your first internship or entry-level accounting job. Those planning on taking the CPA exam will need 1-2 years of professional public accounting experience first, or as many as 4 years in the private sector. Check your state’s requirements – some allow part-time work, and some do not. You may also be able to gain professional experience abroad, as long as it is verified by an accountant with an active CPA license.

Step 5: Earn a master’s degree (optional)

Master’s degrees in accounting or other related graduate degrees are not just for aspiring CPAs, but can also be a route to senior accounting roles or positions in finance or business that overlap with accounting functions, including financial analyst, financial examiner, and budget analyst. Graduate degrees can also improve your earning potential and market competitiveness across a range of accounting roles.

Is accounting a good career?

Certain aspects of choosing a profession are highly individual but objectively speaking, accounting is an excellent career in terms of both salary and job outlook, with the BLS predicting 7% job growth between 2020 and 2030 and reporting average annual salaries of $77,250 for all accountants (CPAs may earn significantly more).

Accounting offers a rare combination of excellent financial compensation combined with a healthy work/life balance, with some CPAs citing flexibility as a core reason they chose the profession.

Average accountant salary

Find below data on the average pay for an accountant. Keep in mind that the BLS groups accountants at all levels of seniority together. CPAs can expect salaries on the higher end of the range, with the top 10% of earners averaging over $128,970 per year.

Accountant job outlook

Find below data on job outlook for accountants. Filter by state or view nation-wide statistics. Demand for CPAs is likely much higher than presented here, given continuing shortages of these expert accountants.

Careers with an accounting degree

Depending on whether you’ve earned an associate, bachelor, or master’s degree in accounting, there are a range of career possibilities.

I have an associates degree in accounting, now what?

An associate degree in accounting can lead to entry-level accounting positions. Bookkeeping is a particularly noteworthy option, as it combines a low barrier to entry with impressive career opportunities – senior bookkeepers earn an average of $77,522 per year.

Accounting careers with a bachelor’s degree

Once you’ve earned a bachelor’s degree, you can take on full accountant roles. Here, work will vary significantly depending on the industry you’ve chosen and the type of sub-specialization you wish to focus on. Keep in mind that some of the following roles are performed by CPAs in the context of public accounting but can be performed by non-CPS in the private sector.

Final thoughts

Ready to start your accounting career? A bachelor’s in accounting is a sound first step, opening the doors to many career paths. Check out our accounting program rankings to find the schools with the best graduate economic success.