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WORKING IN ACCOUNTING

What is an Accountant?

Accountants or auditor’s prepare and audit financial records and ensure that all financial records are correct and that taxes are paid properly and on time.  They evaluate financial transactions and help organizations operate efficiently, explaining their results in the financial documents that they review and prepare. 

Many accountants and auditors specialize in various aspects of financial accounting, such as financial reporting, auditing, tax accounting and accounting services, depending on which organi...

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WORKING IN ACCOUNTING

What is an Accountant?

Accountants or auditor’s prepare and audit financial records and ensure that all financial records are correct and that taxes are paid properly and on time.  They evaluate financial transactions and help organizations operate efficiently, explaining their results in the financial documents that they review and prepare. 

Many accountants and auditors specialize in various aspects of financial accounting, such as financial reporting, auditing, tax accounting and accounting services, depending on which organization they work for. These include financial reports, written reports and annual accounts, as well as audited financial minutes.

Some financial accountants will specialise in improving the quality of information and context for decision-makers, such as the likelihood of incorrect information in financial documents. Other accountants will specialize within certain industries, such as health care, and some accountants specialize in other aspects of financial accounting, such as improving quality information in context to improve decision-makers or detect the likelihood of misstatement in financial documents.

An auditor works on financial documents that clients are legally obliged to disclose. Auditors perform audits for a wide range of clients, including corporations, governments and individuals. They work with customers, which include companies and individuals as well as private companies.

For example, auditors focus on:

• Tax matters, 

• Prepare individual income tax returns,

• Advise companies on the tax benefits of certain corporate decisions

• Prepare tax forms and balance sheets that companies must submit to potential investors. 

Auditors, who are state-certified auditors, usually work for audit firms or have their own companies. Publicly traded companies such as banks, insurance companies and financial institutions must bear a CPA mark on all documents they file with the Securities and Exchange Commission (SEC), including annual and quarterly reports. These include tax returns, annual financial statements, tax reports, balance sheet reports and other financial documents.

Accountants collect and analyze data from their work. They collect information about a company's financial performance, such as financial statements and financial reports, and can also help organizations plan the costs of doing business. Auditors often work on budget and performance assessments, but the information provided by an auditor is intended for use in other areas of the organisation and for the management of business activities.

Accountants employed by federal, state and local governments ensure that revenue is received and spent in accordance with laws and regulations. State auditors audit, maintain and audit records for state agencies, and audit companies and individual activities that are private but subject to state regulations and taxes. They can work with asset managers, including those selected by the US Securities and Exchange Commission, the Federal Deposit Insurance Corporation (FDIC), and other government agencies.

Forensic Accounting

Auditors specialise in forensic accounting and investigate illegal activities such as money laundering, fraud, bribery and tax evasion. Forensic accountants combine their knowledge of accounting and finance with legal and investigative methods to determine whether an activity is illegal.

Many forensic accountants work closely with law enforcement and lawyers during investigations and often act as experts in court. Forensic accountants can also work in the criminal justice system, often in cooperation with the police, and they work closely with law enforcement agencies - law enforcement officers or lawyers in investigations and criminal cases.

Internal Auditors

Internal auditors review mismanagement of an organization's resources and identify ways to improve the process for identifying and eliminating waste and fraud.

The practice of internal auditing is not regulated, but the Institute of Internal Auditors (IIA) provides generally accepted standards. External auditors perform similar tasks to internal auditors but are employed by an organisation other than the one that audited them.

Information technology auditors audit the financial statements of customers and inform investors and authorities that the financial statements are prepared and reported correctly. An Information Technology Auditor is an internal auditor who audits the organisation's computer systems to ensure that financial data comes from reliable sources.

How to become an Accountant

A career as an accountant can open up many career opportunities.  Top managers and finance managers often have a background in accounting, internal auditing and finance as well as a bachelor's degree or two years of professional experience in financial management.

Aspiring auditors often move to more responsible and senior positions, and auditors often start out as junior auditors in their respective companies. Those who excel can rise and become higher managers and partners or found their own certified company. If you are promoted within an organization, you can become a senior auditor, chief financial officer or chief executive officer (CFO).

Auditors and their internal auditors can switch from one aspect of accounting or auditing to another. The public auditor often switches between accounting and internal auditing and vice versa for internal auditing.

However, it is less common for the auditor and the internal auditor to switch from public accounting to internal accounting or vice versa for internal auditing. Auditors can become internal auditors, but they cannot become auditors at the same time as the public auditor or the internal auditor. Internal auditors can either become auditors or switch between accounting and accounting.

For example, as an auditor, the auditor uses analytical skills in his work to minimise tax liability, and internal auditors use these skills to detect fraudulent use of funds. The auditor himself must be able to identify documentation problems and be prepared to listen carefully to the facts and concerns of customers, managers and others. There must also be a willingness to discuss the results of its work in meetings and in written reports.

Remember, strong organisational skills are also important, as accountants and auditors often work for a large number of clients with a range of financial documents. When preparing and examining documents, the examiner himself must be attentive to detail and able to analyse, compare and interpret facts and figures, even though complex mathematical knowledge is not required.

How do I become an Accountant?

Most accountants and auditors require a bachelor's degree in an area related to accounting, such as finance, financial management, taxation or accounting technology.  Many accountants will become Certified Public Accountants (CPA's), and some employers do prefer to hire those with a bachelor's degree in a related field. 

Most universities and colleges offer degrees in finance, financial management, accounting technology or other areas of accounting.  Universities can also help students gain practical experience through helping to arrange internships, within banks, insurance companies or other financial services providers in order to take that first step onto the ladder.

Some accountants will enter into the industry later in their career, choosing to retrain and become a CPA as a way of improving their career prospects or attract more / different clients.  Such is the value of having a CPA within an organisation, many employers will often cover the cost of the CPA exam. 

CPA Qualification

Nearly all states require CPA candidates to complete 150 semester hours of college work to be certified, and a master's degree is not required. A few states allow a number of years of public accounting experience to replace a college degree. To obtain a CPA, you must pass the national exam and meet all other state requirements. Many schools offer a combined bachelor and master program, or a combination of both, that meets the 150-hour requirement, but some do not.

Nearly all states require CPA candidates to undergo training to retain their license, but some states use a different method of certification that is not followed. Candidates must go through all four parts at once, and most states require them to go through the first part within 18 months of passing.

Governing Bodies & Training

Auditors and auditors are certified by various professional associations such as the American Association of Chartered Accountants (AAC) and the International Accounting Association (IAA). Certification can be beneficial in the labour market as it has a high level of knowledge, skills and experience in a wide range of business and financial sectors.

To meet the training requirements, applicants must have worked in accounting for at least two years, comply with professional standards of conduct, pass a two-year examination and have at least two years of experience in the financial services industry. The Institute of Management Accountants offers certification as a Certified Professional Accountant (CPA) or Certified Financial Analyst. Audits cover a wide range of corporate and financial sectors such as finance, accounting, financial management, insurance, tax and accounting.

The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) to graduates of accredited colleges and universities who have worked as an Internal Auditor for 2 years and passed a four-part exam. In order to pass the exam and meet the training and experience requirements, the IIA also offers certifications as Certified Public Accountant (CPA), Certified Control Self-Assessment (CCSA) or Certified Financial Analyst (CFAA) and Certified Professional Accountants (CPAs).

ISACA offers the Certified Information Systems Auditor (CISA) for candidates who have passed the exam and have at least 2 years of experience in auditing information systems. The AICPA offers accountants and CPA's the opportunity to receive the Accrediting Council of Certified Public Accountants (ACPA) Certified Financial Analyst (CFAA) and Certified Professional Accountant (CPAs). You can replace CFA, CSA, CFSA or CCA with one of the three other certification options available to you.

Candidates for the PFS must have at least 2 years of experience in the examination of information systems and must also take a written examination. The CITP requires a bachelor's degree in accounting and at least 3 years of professional experience. ABV requires a bachelor's degree, a two-year degree or two years of financial management experience and the ability to write and complete the exam.

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