| Where Do You Belong in Financial Services? A Quiz Is taking a job in the financial services industry the right move for you? If so, in which sector of the industry would you fit best? This quiz, while highly unscientific, should help you find out. (But, first, grab a pen and jot down your answers.) 1. Which of the following best matches your life philosophy? A. Party time! Excellent! B. I work to live, not live to work. C. All work and no play makes Jack a dull boy. D. He who dies with the most toys, wins. 2. Which of the following television shows do you like best? A. The Jerry Springer Show B. Ally McBeal C. Anything on CNBC. D. I'm too busy to watch television. 3. How important is vacation time in your career decision? A. I need my summers free to work on my tan. B. I can go to the tanning salon after work, but I still want four weeks off. C. The standard two weeks' vacation is fine by me. D. Doesn't matter to me; I'm going to be working too hard to take much time off. 4. What's your favorite restaurant? A. Taco Bell B. Red Lobster C. That tasty ethnic place downtown D. That hip new fusion restaurant with the excellent wine list 5. What kind of car do you think fits you best? A. Pickup truck. With shotgun rack. B. BMW 300 series C. BMW 500 series D. BMW 700 series 6. Which of the following best describes your academic performance? A. Is abysmal a real word? I missed that day in class. B. Decent grades, decent school. C. Excellent grades, decent school, or vice versa (decent grades, excellent school). D. Top grades, top school. 7. Which of the following books would you consider the most enjoyable reading? A. Babbitt, by Sinclair Lewis B. The Firm, by John Grisham C. The 7 Habits of Highly Effective People, by Stephen Covey D. Why waste valuable time reading when you can just rent the movie? 8. Which of the following people do you most admire? A. Ru Paul. No, Karl Marx. B. Michael Jordan C. Warren Buffett D. Mario Andretti. No, Michael Milken. 9. Which of the following do you consider a reasonable workweek? A. I think those French are onto something; 35 hours per week. B. The standard 40-hour workweek. C. I have no problem working long workweeks occasionally, just as long as it's not a consistent thing. D. I'll set up a cot so I can sleep in the office if I have to. 10. Many big financial services companies face an ongoing battle with bureaucracy. Which of the following statements best describes your attitude toward bureaucracy?. A. The heck with financial services companies. I'm going to interview for jobs at start-up Internet companies. B. I enjoy repetitive tasks, like filling out forms in triplicate. Besides, three's my lucky number. C. I can't stand bureaucracy, though I do understand that it can be a fact of life in big companies. D. I'm going to be making my company enough money that they'll keep me from getting bogged down in bureaucratic hassles. 11. What kind of career path path do you envision for yourself? A. I'm too busy working on my Mortal Kombat skills to worry about my career path. B. Same kind my dad had: I'll put in my time and move up the ranks. C. If I work hard and have a little luck, I think I can make it to top management. D. I don't care about career paths; I'll follow any career path as long as it means I live in Greenwich and get to sit on the boards of my favorite charities. 12. How closely do you follow financial and economic news? A. I dated someone who took a couple of economics classes in college. B. I read the business section regularly. C. I read the business section regularly, and have a diversified portfolio of investments. D. I read SEC filings on vacation. 13. Which of the following would you consider a dream vacation? A. Making it through a weekend in Tijuana without getting arrested B. A week in Orlando C. A week on the beach in Cozumel D. BASE jumping in the Chilean Andes 14. What kind of work/family-life balance are you looking for in your career? A. I'd like to homeschool my kids. B. I plan on being home to eat dinner with my kids every night. C. I'll have to work through dinner occasionally, but I want to be there to help my kids with their homework every night. D. I'm going to be working too hard to see much of my kids during the week, but I'll be making enough take them on some killer vacations. 15. What are your compensation goals? A. I just need to make enough to keep getting piercings and tattoos. B. I want to make a decent living, enough to buy a house and a nice car someday. C. I plan on making enough to send my kids to good private schools. D. I'm going to make enough money to buy a racehorse. And stables to put it in. And a track to race it on. When You've Finished Go back over your answers. Give yourself one point for every time you answered "A," two points for every time you answered "B," three points for every time you answered "C," and four points for every time you answered "D." Then see below to find out whether and where you'd fit best into the financial services industry. 15 to 24 points Sorry, but financial services probably isn't the right place for you. Check out the rest of WetFeet.com to see if there are other options out there that might better suit you. 25 to 39 points If you really think you want to make a career in financial services, there's probably a place in the industry for you. There are plenty of relatively stable jobs that pay well in financial services, which, rather than requiring you to give up your firstborn to get ahead, reward hard work and loyalty with regular raises and promotions. Possibilities include insurance, accounting, and jobs on the retail side of banking. 40 to 49 points You're willing to work hard for real rewards. You're willing to take on some risk to get ahead, but you're not about to bet the farm on any one game. You probably have the right mindset to get ahead in commercial banking, mutual funds and brokerage, or asset management 50 to 60 points You're a hard-charger to whom money and prestigious hobbies are a means of measuring success. In other words, you were born to be in investment banking. Or, failing that, venture capital investing. DXCAREER RESOURCES
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| Corporate Finance Career Overview Requirements Job Outlook Career Tracks Compensation Corporate Finance Job Listings Career Overview It’s a blast of the obvious that companies make money. Some of them make a lot of money. Of course, someone has to manage that money or else the company doesn’t stay in business very long. That’s where the corporate finance team comes in. In corporate finance, you’ll deal with the financial decisions made by the company you work for, with the goal of maximizing the value of the corporation while minimizing risk. Corporate finance and accounting professionals are responsible for managing a business's money—forecasting where it will come from, knowing where it is, and helping its managers decide how to spend it in ways that will ensure the greatest return. They pore over spreadsheets that detail cash flow, profitability, and expenses. They look for ways to free up capital, increase profitability, and decrease expenses. If any department wants to make a big expenditure, it’s usually got to be run by the folks in finance first to ensure that the company is in a position to fork over the dough. They’ll look at the best growth path for the company, whether that’s through acquiring other companies or re-investing in the business to expand internally. A company's size, complexity, industry, and stage of development—for example, whether it’s a startup or established business—determine its corporate finance department's specific responsibilities. All companies need to balance their books. But some large technology companies, for example, also need to hire financial experts to valuate potential acquisitions. Others (e.g., insurance companies) have hundreds of millions of dollars to invest and need financial wizards to manage that money. Note that for the purposes of this career profile, "corporate finance" does not refer to those in investment banks who help their corporate clients raise funds. To learn about this and other areas in financial services, read WetFeet's industry profiles of investment banking, mutual funds and brokerage, commercial banking, insurance, and accounting. These profiles detail a variety of specialized financial functions beyond those in private industry. What You'll Do Corporate finance includes two key functions: accounting and finance. Accounting concerns itself with day-to-day operations. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all the financial data needed to issue a company's financial statements in accordance with government regulations. Finance professionals analyze revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure deals to help companies grow. In spite of their different roles, finance and accounting are joined at the hip: The higher levels of accounting (budgeting and analysis) blend with financial functions (analysis and projections). Thus, finance and accounting are often treated as one, with different divisions undertaking particular tasks, such as cash management or taxes. Requirements Finance and accounting jobs require strong analytical and quantitative skills. If you have a knack for using numbers to understand patterns that influence business, you'll be of great value to your employer. If you can't crunch and analyze numbers, this isn't going to be the right job for you. You should also enjoy and excel at solving problems and be able to think critically about the numbers you're working with. Think of it as cracking a code: You need to take all of these numbers—income, expenses, profits, investments, cash flow—and decipher them in order to make the best decisions for the company. To succeed in these careers, you need a strong attention to detail. To make wise business decisions, your employer will be depending on you to get the numbers right—every time. In order to do that, you’ll also need to have an understanding of and interest in business. That includes reading industry and business publications to understand market conditions, economic forecasts, and trends. Finance professionals need to look at external factors that could potentially help or hurt profitability. This may be the career for you if you can effectively evaluate business scenarios and recommend a course of action based on quantitative research. If you're in college and want to work in corporate finance, your best bet is to demonstrate your interest in finance with relevant undergraduate courses in accounting, finance, and economics. Get involved in business, accounting, or investing clubs on campus. Internships are always a great way to strengthen your resume and differentiate yourself from other candidates. An MBA will make you attractive to companies hiring for budgeting, planning, and strategy functions. Many firms hire outstanding undergraduates and MBAs for training programs; some programs are finance- and accounting-specific, and others rotate trainees throughout the company. If you have your heart set on corporate finance and analysis, do a knockout job during that particular rotation and develop a good relationship with your manager. If there is no formal finance or accounting program at your company, you'll have to make the most of on-the-job training, so try to find a position that will expose you to a variety of projects. Find out what the career path in corporate finance is at your company and cultivate a mentor. A mentor can explain what projects will round out your background and what courses you can take to prepare yourself for a higher-level assignment. You can also check out job listings on the Web to see what kind of experience and certification are required for the jobs you're interested. If you want to pursue a lifelong career as a number-cruncher, you'll probably have to knuckle down and get an advanced degree or certification—a CPA, MBA, or CFA, depending on the career—at least to work in the more senior budgeting, planning, and strategy functions. You'll also need to keep track of the regulatory changes that affect how information is reported. There are other ways to get your foot in the door in a corporate finance career. Experience with an investment banking firm can lead to a financial analysis position for a specific business line or to a corporate development position if you have several years of experience. At the higher levels in accounting, one of the most straightforward routes to becoming a controller (a supervisory accounting role) is to start working for one of the large accounting or auditing firms and then go into corporate finance. The largest accounting firms and investment banks hire BAs directly from school. Job Outlook The outlook for folks in corporate finance and in-house accounting is bright. In spite of the credit crunch that took hold in summer 2007, putting a damper on mergers and acquisitions, the market for money has continued to loosen. That means more corporate spending, more mergers and acquisitions, and so on—and more work for corporate finance types. Longer term, globalization means more opportunities for sophisticated financial analysts and planners. Increased merger and acquisition activity will create more opportunities for people in finance who are able to think strategically. This means a greater demand for people with higher degrees who can develop more theoretical financial models, develop currency hedges, or estimate another company's future earnings and current value. As more and more accounting functions become automated by software, those accountants and financial analysts able to do analytical work and think strategically will have much better prospects than those who stick to keeping the books. Graduate degrees, extensive analytical experience, and good regulatory knowledge will help keep you employed over the long term. Career Tracks Although conditions vary at different companies, people going into corporate finance generally start their careers either as staff accountants (for the corporate reporting function) or as financial analysts (for a business group or function). In both roles, you'll supply management with the information it needs to make smart, opportune decisions. Staff accountants consolidate information for the official corporate financial reports—primarily comparing the present to the past. Financial analysts, on the other hand, are assigned to either a product line or business unit. They help management set up profit objectives, analyze current unit results, and anticipate future financial performance. Over time, financial analysts and staff accountants eventually specialize in one of the areas described below. General Accounting General accountants are responsible for producing all of the financial records a corporation uses to track its progress internally and to meet government regulations. Such workers also gather all the information needed to compute a company's balance sheet, profit and loss statements, and income statements. They also track the corporate budget, cash flow, and pay all the bills. Usually, your first job in general accounting will be in accounts payable or accounts receivable. Success in accounting might lead you to a position as a controller, overseeing a larger group, aggregating information, or working on portions of the corporate budget. Internal Audit When most people think of an audit, they think of an outside audit—a large accounting firm like Ernst & Young checking the corporate books on behalf of the shareholders. However, most large companies have an internal audit group that regularly visits individual company branches and checks the company's accounting systems. Internal auditors perform the investigative and corrective work that ensures the external auditors don't find anything. The internal audit group reviews the quality of the data, making sure it's both accurate and complete. They also evaluate whether the corporate accounting procedures are effective and universally followed. Finally, internal auditors introduce or revise procedures to improve efficiency and reduce costs. Divisional Financial Services In this area, you work with each division's business team to prepare financial plans, make forecasts, and compare actual financial results to forecasts. You may also evaluate the financial consequences of alternative strategies. Responsibilities include everything from analyzing new business opportunities to restructuring a business or developing a capital spending program. The primary concerns are to find better ways of using company assets, reduce costs, and research better methods of forecasting. Financial services evaluates the risks versus potential return of any course of action and develops recommendations so that managers can pick the most profitable strategies, depending on their goals. Tax Activities in this area involve administering taxes (i.e., paying taxes on time—or finding loopholes to avoid paying them) and determining how to decrease the company's tax burden. Responsibilities include working with attorneys on tax litigation, researching tax laws and reporting requirements by nation (if the company is international), and keeping up with new government rules and regulations. Large companies have an entire department dedicated to recommending methods to minimize the tax impact of any business decision such as a new division launch, a capital spending plan, or purchasing a new company. Investments and pensions also need to be managed with an eye toward minimizing taxes. The tax department helps structure transactions, makes recommendations on the timing of acquisitions or sales based on what else will be written off that year, and can decide what corporate reporting structure reduces taxes—for example, creating a wholly owned subsidiary versus having an internal division. Treasury The treasury department is responsible for all of a company's financing and investing activities. This department works with investment bankers who help the corporation raise capital with stock or bond sales or expand through mergers and acquisitions. Treasury also manages the pension fund and the corporation's investments in other companies. The department also handles risk management, making sure that the right steps are taken to safeguard corporate assets by using insurance policies or currency hedges. Cash Management This is a company's piggy bank. The cash management group makes sure the company has enough cash on hand to meet its daily needs. The group also sees to it that any excess cash is invested overnight by picking the best short-term investment options. And it negotiates with local banks to get regional business units the banking services they need at the best price. Corporate Development and Strategic Planning Corporate development involves both corporate finance and business development. (For more on these types of jobs, check out WetFeet's business development career profile.) Finance experts in corporate development study acquisition targets, investment options, and licensing deals. Often they assess the best firms to buy or invest in, such as pre-IPO cutting-edge technology companies with complementary products that could either extend the company's product line or mitigate competition. Compensation Corporate finance compensation will vary by region, size of company, and industry. Following are average salary ranges for a variety of corporate finance functions:
Corporate Finance Job Listings CFO Chief Financial Officer Corporate Accountant Corporate Development Internal Auditor Strategic Planning Treasurer |
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| Accounting Industry Overview Love-Hate Major Players Job Descriptions & Tips Accounting Job Listings Industry Overview It’s not your father’s accounting industry anymore. Today’s CPAs aren’t just spending their days pounding out numbers on a calculator. Sure, number-crunching is still a big part of the job. However, there have been big changes to this industry, between corporate scandals and the new slew of laws that resulted. More firms are moving into the business consulting arena, providing management consulting services and even some limited legal services. It’s a whole new ballgame. Once upon a time, the industry was dominated by a group of firms called the Big Eight. Their main business focus was auditing public companies. Relative to other industries, accounting was a nice, steady industry, with modest but predictable profits. Accounting firms had a reputation for humility, discretion, and high ethics. During the early days of the tech boom in the early 1990s, though, the major accounting firms started making enormous profits from IT consulting work and began looking at auditing as a way to build relationships that might lead to much more profitable consulting engagements. When they were caught, the major accounting firms were battered by a maelstrom of bad press that continues to this day. Today, thanks to industry consolidation and the collapse of Arthur Andersen due to the misdeeds of Arthur Andersen accountants working on Enron’s books, the Big Eight has become the Big Four: Deloitte Touche Tohmatsu, whose U.S. accounting arm is called Deloitte & Touche; Ernst & Young; KPMG; and PricewaterhouseCoopers. But Andersen wasn’t the only major firm implicated in accounting scandals of the early 2000s. Deloitte & Touche, Ernst & Young, KPMG, and PwC have all faced legal heat in recent years thanks to accounting misdeeds. In terms of how would-be accountants are being affected by the scandals, the accounting industry is refocusing on ethics. There is also an increased focus on hiring accountants with real-world business experience in addition to formal accounting education. Of course, since 2002’s Sarbanes-Oxley Act (or “Sarbox”)—which restricted the amount of time senior accounting executives can spend working with a single audit client, created a new accounting industry oversight board called the Public Company Accounting Oversight Board, and introduced new regulations to which public companies (which comprise the bulk of the audit clients at big public accountancies)—there have been some major changes in the way that firms do business. A note: Big Four public accounting firms—which focus on auditing clients’ financial statements (thus verifying for investors that clients are being forthright about their financial health) but also include non-audit lines of business such as actuarial work (risk analysis and management), tax consulting, human resources management, and merger and acquisition advice—are not the only career option for accountants. Many accountants work for mid-tier public accounting firms, such as Grant Thornton or Moss Adams, or for smaller firms; for government entities; or for corporations’ in-house accounting or internal-audit departments. Many others go into business for themselves.  Want to learn about current industry trends and major players? Learn how.Accounting Job Listings Accountant Auditor Bookkeeper Budget Analyst Controller Director of Finance Forensic Accountant Tax Accountant |
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| Accounting Career Overview Requirements Job Outlook Career Tracks Compensation Accounting Job Listings Career Overview Accounting concerns itself with the day-to-day operations of bookkeeping. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all of the financial data needed to issue a company’s financial statements in accordance with government regulations. These days, accountants are taking a step away from the ledger sheets and are becoming essential to every successful business team. They’re the ones who understand the language of money and a company’s complex financial situation. Consequently accountants are increasingly being called on to offer advice and even make business decisions based on hard facts rather than speculation or gut instinct. To be sure, an accountant’s day-to-day work is still very different from that of a lion tamer, especially for those who are just entering the field. Most public accountants, for example, still need to know the specifics of tax law and must file audits that meet the Generally Accepted Accounting Principles (GAAP). There’s little room for people who want to think outside of the box; and it’s the accountant’s job to make sure a company’s records fit inside that box and are in lockstep with the law. Many jobs exist for accountants in accounting firms, corporate in-house accounting departments, and local, state, and federal government entities. Far and away, the most positions available in public accounting are in audit, with new government regulations fueling an explosion in audit-related positions. Areas such as forensic accounting are also growing due to increased pressure by the government to stop financial fraud. And the greatest number of opportunities lies in the tax area. When you enter the industry, don’t expect to be handed big decisions and cutting-edge projects right off the bat. The accounting profession will always contain a certain dose of tedium. There’s simply no way around that in the practice of auditing and many other standard accounting procedures. But put your nose to the grindstone early and keep an eye out for opportunity, and you should begin climbing the ladder in no time. The U.S. Bureau of Labor Statistics projects that the job market for accountants and auditors will grow 18 percent to 26 percent through 2014; accounting made Money’s 2006 list of the “Top 50 Best Jobs.” What You'll Do The responsibilities of accountants are more wide-reaching than just balancing the books, although that is an important part of the job. The cornerstone of an accountant’s work is making sure money is coming in and going out in an appropriate manner, taxes are paid on time, and public filings are done properly. In addition to this, however, accountants who deal with businesses, either as part of a CPA firm or in-house accounting department, are also an important part of the management team. In order to help the company make key decisions about growth, accountants are often expected to be able to analyze budgets to determine whether they’re reasonable; provide investment and financial planning to help fatten the company’s bottom line; advise about financial information technology options, such as accounting and inventory tracking software; and provide limited legal services, on such topics as stock filings, business registrations and the like. Of course, accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all of the financial data needed to issue a company's financial statements in accordance with government regulations. When dealing with individuals, accountants help with planning to reduce the chunk of income that Uncle Sam takes in taxes. To be sure, an accountant's day-to-day work is still very different from that of a lion tamer, especially for those who are just entering the field. Most public accountants, for example, still need to know the specifics of tax law and must file audits that meet the generally accepted principles of accounting (GAAP). Here, there's little room for people who want to think outside of the box. The box has been well thought out, and it's the accountant's job to make sure a company's records fit inside it and are in lockstep with the law. Who Does Well Finance and accounting jobs require critical, detail-oriented thinking. If you have a knack for using numbers to understand patterns that influence business, you’re going to be valuable to a company. If you can’t crunch and analyze them, this isn’t going to be the right job for you. You should also like and be good at solving problems and be able to think critically about the numbers you’re working with. Although accountants need to be good at math and have strong analytical-thinking and research skills, attention to detail is usually considered more important. To develop business relationships and close new business, accounting professionals also find it necessary to develop strong written and verbal communication skills. Additional credentials such as a CMA (Certified Management Accountant) or CIA (Certified Internal Auditor) also distinguish you from other applicants. Any extra certification or training you can obtain from reputable organizations is a plus. Specialized expertise in areas such as tax strategy, technology, or forensics, along with real-life experience, are strong selling points on a resume. The American Institute of Certified Public Accountants (AICPA) strongly recommends that all accountants balance their technical business training with a classic liberal education. Course work in areas such as psychology could prove very beneficial, especially for accountants working in the public sector. Furthermore, as business is increasingly being performed electronically, accountants need to pick up as much knowledge as possible about computers and information systems, not only to understand their utility but also to assess their value to clients. Requirements The vast majority of accounting jobs require at least a bachelor’s degree from a four-year university. In fact, according to the AICPA, within the next few years most states will require 150 hours of university education—30 hours more than for a regular four-year degree—before you can even take the test to become a CPA. Currently 47 states have adopted the 150-hour requirement, while the remaining states/jurisdictions continue to work toward adoption. Some universities have even created specific programs designed to meet the 150-hour coursework requirement while working toward an advanced degree. While college is almost always a requirement, your study field choices are beginning to broaden to cover current industry trends. With the popularity of using accounting software to balance the books increasing, firms are looking to business and finance majors to work in accounting departments. These degrees—and even a management of information systems degree—will also be helpful in landing a job as a management accountant or internal auditor. One insider even said, “If I could go back I would take more psychology courses. There’s a lot of emotion involved when dealing with clients at higher levels.” And once that bachelor’s degree is out of the way, most accountants who go on to get a master’s degree don’t get a master’s of accounting (MA). These days a master’s of business administration (MBA) with a specialization in either finance or accounting is much more popular. And again, any education you pick up relating to technology and information systems is going to be a big ace to carry around in your pocket. Once you have school out of the way, the next step for many accountants is to get licensed. But in many states you need to work for about a year before you can take the CPA exam, even after 150 hours of undergraduate courses. Even for accounting jobs that don’t require a CPA—such as internal auditing and management accounting—there are organizations that provide certification, such as the Institute of Internal Auditors or the Institute of Management Accountants. Although the government does not regulate certification by these groups, many employers are starting to require such certification anyway, and having it can open many doors for you. Perhaps the only exception to the need for a formal education and a license are the accounting positions that fall under the category of bookkeeping. Here, there are many openings for people straight out of high school, or who have two-year degrees from community colleges or technical schools or four-year degrees in unrelated areas. As always, there’s a tradeoff: With less schooling, expect less pay and much less stimulating work. Job Outlook While accounting has never been considered a glamorous industry, it’s still one of the most popular undergraduate degrees. According to the National Association of Colleges and Employers’ 2007 Job Outlook Survey, accounting made the list of “top ten degrees in demand” at both the bachelor’s and master’s levels. Sarbox has created not only the need for more manpower on a given account, but large companies are often hiring multiple firms to perform audits to ensure everything is on the up-and-up. Likewise, internal audit departments are working overtime to comply with regulations. Then you have the inevitable circumstance of retiring baby boomers, which will mean the loss of many accountants working in senior positions within the industry. As a result, many firms can barely fill the need for talent, especially at the more senior levels. Reform measures and deregulation have increased demand for specialized accounting careers, and the number of professionals nearing retirement age guarantees that demand for new workers will only increase—starting now. Firms have been hiring, for sure. According to a report from Ambition Finance entitled “Accounting and Finance Recruitment Market Trends and Salaries Report,” the Big Four accounting firms have had a larger graduate intake during the past 12 months than at any point during the past decade. Far and away, the most public accounting positions available are in audit, with tax coming in second. The need for forensic accountants—specialized accountants who focus on digging into clients’ balance sheets to look for red flags—is growing as more business is conducted virtually and internationally. Demand for in-house corporate accounting and finance employees is expected to grow, along with jobs at government agencies. Career Tracks When most people think of accounting, they imagine a public accountant who has passed an exam to become a state-licensed certified public accountant, or CPA. Public accountants may work at independent public accounting firms, within government, or as part of a corporate financial team. CPAs at firms may file a client's taxes, or audit the client's financial information to ensure that it’s accurate. In-house accountants may oversee the company’s overall profit-and-loss (P&L) statement and look for ways to increase profitability, or they may work on ways to reduce the amount of taxes the company pays. Companies large and small generally have their own staff accountants to advise management and to perform internal audits and day-to-day bookkeeping. In addition to the private sector, city, county, state, and federal bureaucracies also employ a large number of accountants. Public Accounting By law, every business has to file paperwork with the government. The IRS, for example, requires year-end tax statements, and may require quarterly or monthly filing of taxes withheld from employee paychecks. The Securities and Exchange Commission, which regulates publicly traded companies, requires regular filings to monitor the finances of companies traded on the stock exchanges. Public accountants create and file such reports. While you can work at a public accounting firm without a license, at least one person on a given team of accountants needs to have a license and sign off on the final documents. Public accountants can have many responsibilities, but the field generally breaks down into two main functions: preparing a company's year-end tax statements, and external auditing. Public accountants can work at firms of varying size, from independent shops to the Big Four public accounting firms: PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG. In-House Accounting Every company has internal accountants to set budgets, manage assets, and keep accurate track of payroll, accounts payable and receivable, and other financial matters. For medium-sized and large firms, the internal staff works closely with the public auditors at the fiscal year-end and with senior management and IT staff year round. Controllers and CFOs at smaller firms often enjoy even more influential roles in running the business. These jobs are just as demanding as those in public accounting. Most accountants in the private sector stay in one place, in one job, for extended periods. However, should you choose to move around, accounting skills are very portable. Internal Auditors When most people think of an audit, they think of an outside audit—a large accounting firm checking the corporate books on behalf of the shareholders. However, most large companies have an internal-audit group that regularly checks the company's accounting systems. Internal auditors perform the investigative and corrective work that ensures the external auditors don't find anything. The internal-audit group verifies that the data is both accurate and complete. Internal auditors also evaluate whether the corporate-accounting procedures are effective and universally followed. Finally, internal auditors introduce or revise procedures to improve efficiency and reduce costs. Management Accountants Management accountants mine information from a company's financial records. Instead of simply preparing tax statements or making sure a company's books are accurate, they advise management on critical business decisions and long-term strategic planning. Generally, such accountants have some prior experience in the business world or have worked as an accountant in a public accounting firm. Government Accountants Since government agencies receive their funding directly from taxes, there are always laws regulating how such money can be spent. Accountants working for the government make sure revenue is collected and expenditures are made in accordance with the law. The biggest federal employers are traditionally the Department of Defense, the General Accounting Office, the Securities and Exchange Commission, and the Internal Revenue Service. In addition to monitoring individual and corporate tax returns, government accountants at the state and federal levels formulate and administer budgets, track costs, and analyze publicly funded programs. Bookkeepers and Auditing Clerks Bookkeepers and auditing clerks keep track of a company's books. Using accounting software, they record, maintain, and verify the numerical data in a company's financial records. Unlike as in other branches of accounting, bookkeepers and auditing clerks do not analyze the financial information or offer financial advice to management. Since this line of work requires the least experience and no formal license or certification, it usually pays the least and can be the most tedious. Independent You can always hang out your own shingle, individually or in partnership with other accountants, especially once you have your CPA. There is plenty of business available preparing tax returns and advising small businesses. You also will need to be able to market your services and manage your business—time-consuming activities not everyone enjoys. Compensation According to the U.S. Bureau of Labor Statistics, the median compensation for accountants of all kinds is about $50,770, and 80 percent of accountants earn between $30,320 and $82,730. According to the 2007 Guide to Accounting and Finance Salaries by financial recruitment firm Robert Half Finance & Accounting, entry-level professionals at small firms (those with up to $25 million in revenue) can anticipate earning about $38,000 to $44,000 per year. As you move up the seniority ladder, so will your compensation. As a senior manager or director, you’ll make between $82,000 and $120,000. Accountants at smaller firms may make a little less than their Big Four colleagues, depending on the firm and the clients. In general, those with advanced degrees earn around 10 percent more than others. Bookkeepers can expect to earn between $30,250 to $37,000 annually. Accountants in industry are typically paid more than those at accounting firms, while those working in government typically earn a bit less. In the federal government, for instance, junior accountants and auditors start at between $24,000 and $31,000, and those in non-supervisory, supervisory, and managerial positions averaged about $75,000 in 2005, when figures were last released. Accounting Job Listings Accountant Auditor Bookkeeper Budget Analyst Controller Director of Finance Forensic Accountant Tax Accountant |
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