How to Become an Accountant: 2023 Salary and Career Paths | Research.com (2023)

Accountants play a critical role in helping individuals and organizations manage their finances effectively. Usually, small businesses need just one accountant, mid-sized companies need two to six, while enterprises may hire more than 12 accountants to operate daily (Envoice, 2022). They are often tasked with keeping track of company cash flow, analyzing financial statements, and preparing tax compliance measures.

To fulfill these responsibilities, aspiring accountants typically need to complete a bachelor’s degree. An affordable business degree online, such as one in accounting, can provide a flexible and convenient option. Students can choose to specialize in specific areas like financial or managerial accounting and gain advanced skills in math and financial processes. Furthermore, becoming a Certified Public Accountant (CPA) may lead to more opportunities for those looking to pursue this career path.

In this guide, our team explains the step-by-step process of how to become an accountant. We will also discuss the typical roles of an accountant, minimum qualifications to enter the profession, CPA requirements, salary, and career outlook to provide valuable insights and resources to future accountants.

How to Become an Accountant: 2023 Salary and Career Paths Table of Contents

1. Obtain a Bachelor’s Degree in Accounting
2. Get an Intership or Apply for an Entry-level Job
3. Consider Enrolling in a Master’s Program
4. Prepare to Become a CPA
5. Look into Continuing Education Opportunities

What is an accountant?

Becoming an accountant involves recording, analyzing, and reporting day-to-day financial information to management, investors, and government agencies. Furthermore, aligning with accounting degree opportunities can help future graduates secure a future in this field. Their basic roles include:

• Reconciling bank statements
• Providing financial advice to clients
• Preparing financial records and reports
• Overseeing payroll and billing processes
• Analyzing and preventing financial risks or fraud
• Ensuring compliance with tax laws and regulations

It is also important to note that CPAs may perform other tasks that non-CPAs cannot. These tasks include filing reports to the Securities and Exchange Commission (SEC), auditing public companies, and acting as fiduciaries. Furthermore, since all businesses handle finances, accountants can work in almost any type of industry. In a 2021 report, 24% of them were employed in accounting-related services, 8% were employed in both finance or insurance services and the government, 7% worked in enterprises, and 4% were self-employed (U.S. Bureau of Labor Statistics, 2022).

Required Skills for Accountants

Becoming an accountant also means being equipped with the right technical and soft skills. Therefore, in this section, we will detail the qualifications prospective accountants must possess to excel in this field.

Essential Skills

• Math. Being a master of mathematical skills, including statistics or calculus, is important since accountants handle the daily financial operations of their clients. These will come in handy when they are analyzing financial statements, interpreting financial books, and drawing conclusions from numbers.
• Software and computer literacy. In a study, 91% of accountants think that incorporating technology into their work adds more value to their roles, such as enabling them to have more time for client assistance (Sage, 2020). Therefore, being familiar with accounting software and basic computer processes can help expedite redundant tasks and provide them with more time for other key services.
• Bookkeeping and auditing. Keeping financial books in order and evaluating the accuracy of these records are essential skills for any aspiring accountant. Beyond these, however, bookkeeping and auditing entail a more meticulous process of reconciling transactions and providing an independent opinion on the financial health of an organization.
• Taxation laws. Familiarity with federal, state, and local tax regulations, as well as the ability to apply these laws to the financial records of an organization, is a vital skill for accountants. Taxation knowledge enables them to offer advice on tax planning and strategies to minimize tax liability. They may do so by accomplishing tax law and policy courses in online programs for criminal justice.

General Skills

• Communication. Accountants often work with clients, management, and regulatory bodies. Therefore, they must use strong communication skills to build and maintain relationships with them. They must be able to properly convey complex financial information and analysis to non-financial stakeholders as well.
• Organization. Because accountants handle a high volume of financial information, they must manage multiple tasks and prioritize their work effectively to keep records and maintain deadlines daily. They must also have keen attention to detail to spot any inaccuracies in financial statements or flag down any fraudulent activities within the company.
• Analytical and critical thinking. The ability to think critically and solve problems is crucial in this field, as accountants often face complex financial issues that require creative solutions. They must also interpret financial statements, identify trends, and use that information to provide valuable insights and recommendations to their clients.
• Collaboration. This skill enables accountants to leverage the diverse expertise of their team members to solve complex financial problems and make strategic decisions for the company. Having strong collaboration skills also comes in handy in any field should accountancy graduates decide to pursue a different field of work.

How to Become an Accountant: A Step-by-Step Guide

In this section, our team dissects the steps on how to become an accountant and provides details on the CPA qualifications to help future professionals advance their career paths.

Obtain a Bachelor’s Degree in Accounting

In 2020, a total of 101,094 accounting degrees were awarded in the United States (Data USA, n.d.). Pursuing either this or a finance program is a common path for future accountants. These provide a comprehensive understanding of financial management, accounting principles, and business practices. Factoring in finance and accounting degree similarities and differences could also help identify career goals. For instance, a finance degree focuses more on the interpretation of financial data, while an accounting degree concentrates on information systems. Other programs students can consider are economics, business management, or business administration.

Get an Internship or Apply for an Entry-level Job

Signing up for an undergraduate program’s internship can help accountancy students garner more valuable insights. Alternatively, since the accountant minimum requirements entail only a bachelor’s degree, graduates may already apply for an entry-level position in accounting departments or companies. The objective is to gain hands-on experience in the field, which is crucial in comprehending how accounting processes work in real-life situations. In addition, working in the field can help build networks, credibility, and mastery of the skills needed for career advancement.

Consider Enrolling in a Master’s Program

Most states require CPAs to earn 150 semester hours of accounting coursework (American Institute of Certified Public Accountants, n.d.). This may be obtained by enrolling in a master’s program or an undergraduate five-year accounting program worth 150 credit hours. While getting a master’s degree is not required, it helps learners pick their expertise through specializations, which include public, corporate, managerial, or forensic accounting. Furthermore, learners may also choose to enroll in related programs, such as an online master’s in public policy or a graduate degree in business, to further strengthen and widen their knowledge of the discipline.

Prepare to Become a CPA

Apart from meeting the educational requirements, CPA hopefuls must also complete a minimum of 2,000 hours of experience. In addition, they must also pass the Uniform CPA Exam, which is divided into Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation. Exam takers must complete the four sections within 18 months and garner a minimum score of 75 in each section. Some states also require an additional Ethics examination. It is best to check the National Association of State Boards of Accountancy (NASBA) for the specific state requirements before applying for licensure.

Look into Continuing Education Opportunities

All CPAs must obtain 120 hours of continuing professional education (CPE) every three years to maintain licensure (AICPA, n.d.). To earn credits, certified accountants may take self or group-study courses. In addition to earning CPE credits, accountants may choose to meet the requirements for PhD and enroll in a doctoral program in accounting. While this is usually taken by accountants who wish to pursue a position in higher education or research, gaining new knowledge of the discipline can always unlock and develop skills.

Accountant Salary and Career Outlook

Data from the U.S. Bureau of Labor Statistics (2022) show that the annual average accountant salary in 2021 was $77,250. Meanwhile, the 2023 median pay for a CPA ranges from $70,235 to $461,014 (Salary.com, 2023). However, wages are typically affected by several factors, including location, skills or level of experience, educational attainment, company policies, and whether or not the employee is a CPA.

While accounting is flagged as one of the jobs that are decreasing in demand (World Economic Forum, 2020), the future remains bright for the profession. The overall employment of accountants and auditors will gain a 6% change from 2021 to 2031, providing 136,400 annual openings within the period (BLS, 2022). Digital Transformation and the Fourth Industrial Revolution are influencing how jobs evolve, but this does not mean that accountants will become obsolete. Rather, they must learn how to use technology to their advantage and transform it into tools that could innovate their roles.

In fact, a study by Tsiligiris & Bowyer (2021) called “Exploring the Impact of 4IR on Skills and Personal Qualities for Future Accountants: A Proposed Conceptual Framework for University Accounting Education” suggests a conceptual framework that can help accounting schools and programs train future accountants to adapt to a digitally advanced world.

They state, “Future accountants need to be able to understand the uses and limitations of digital technologies in the broader business context and not just limited to the accounting function… [F]uture accountants need to possess a balance of skills and a growing importance of soft skills. Soft skills are seen as paramount in helping accountants to be successful in the future of work where higher cognitive skills are valued. Also, in the context of global and local citizenship that becomes central to the society and economy, future accountants need to be introduced to the concepts of inclusivity and sustainability.”

Their work which was published in Accounting Education adds, “More broadly, the analysis of the reports identifies an implied expectation about the transformation of the accounting profession and the role of future accountants in it. The ability of accountants to embrace digital technologies and use soft skills will not only affect their employability but also plays a key role in the transformation of the accounting function from being transaction-based to become value-adding.”

Alternative Career Options for Accountants

Not all accounting degree holders end up as accountants, which is why in this section, we will provide a short list of alternative occupations to help students and graduates excel in related fields.

Fraud Investigation Officers – $64,793

They investigate allegations by gathering evidence, analyzing financial data and other records, and interviewing individuals to determine if fraudulent activities have occurred. Fraud investigation officers must be knowledgeable about financial laws and other state or federal regulations. They also collaborate with law enforcement agencies and legal teams to present findings and provide testimony in court proceedings.

Entrepreneurs – $66,319

Becoming a business owner is another avenue that accounting graduates may venture into. Business owners are in charge of running the daily operations of their stores, as well as interacting with clients, handling employees, and conducting quality or inventory checks. Entrepreneurs must also do a deep dive into the gaps and trends in the market to provide unique products or services.

Financial Journalists – $71,288

They research the latest trends in finance and businesses and write articles for news outlets or magazines. They cover topics such as stocks, bonds, commodities, currencies, and financial markets. Financial journalists may also interview key personalities like economic experts, government officials, and company heads to provide more information to the stories they write.

Accounting Professors – $134,201

They are educators who specialize in the field of accounting and typically hold a doctoral degree to teach in higher education. Their primary responsibilities include teaching, contributing research work, and providing academic counseling. Accounting professors may also hold positions in university committees or accounting organizations and offer consulting services to businesses.

Making a Positive Impact as an Accountant

In this guide, our team provided the steps on how to become an accountant, as well as details on what an accountant does, required skills and qualifications, salary, and career outlook, to help prospective accountants prepare. A career in this field starts with an on-campus or online business degree program and ends with various pathways and opportunities.

Aspiring accountants can flourish in any industry since their vital role helps run a company’s daily operations. In addition, accountants can use their skills and knowledge and take advantage of technology to help them prosper outside the field of accountancy.

While the path to being an accountant may be challenging, it can also be rewarding. With the right education, skills, and determination, individuals can embark on a successful career in accounting and make a positive impact on businesses and the economy as a whole.

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