Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.
Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people.
The future of accounting is bright according to the Bureau of Labor Statistics which projects a 15% increase in job openings by the year 2015. Much of this reflects the increasing complexity of corporate transactions and the growth in government.
Careers in Accounting
- Auditing
- Tax Compliance and Consulting
- General Corporate & Financial Accounting
- Cost Accounting
- Governmental Accounting
- Forensic Accounting
- Financial Consulting
- Expert Witness & Litigation Support Services
Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people.
The future of accounting is bright according to the Bureau of Labor Statistics which projects a 15% increase in job openings by the year 2015. Much of this reflects the increasing complexity of corporate transactions and the growth in government.
Careers in Accounting
- Auditing
- Tax Compliance and Consulting
- General Corporate & Financial Accounting
- Cost Accounting
- Governmental Accounting
- Forensic Accounting
- Financial Consulting
- Expert Witness & Litigation Support Services
Key Terms
Balance Sheet- A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities, and net worth
Owners Equity- Also called capital, is any debt owed to the business owners
Income Statement- A financial statement that gives operating results for a specific period
Statement of Cash Flow- A mandatory part of a company's financial reports, allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent
Revenue- Income that a company receives from its normal business activity, usually from the sale of goods and services to customers. Resources
Assets- Anything of material value or usefulness that is owned by a person or company
Liabilities- An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future
Net Income- Equal to the income that a firm has after subtracting costs and expenses from the total revenue
My Mentor Interview
Interview Discussion with: Christine Lambarty (Auditor)
Marketplace:
•What are your projections for this type of work or industry? Is it stable, growing, declining?
-I would consider it a stable industry. Accounting and auditing is a necessary function of any business and will continue to be for the foreseeable future.
•What are the key trends or issues? New developments? Key challenges?
-One of the key challenges of being an auditor is that auditors are immediately disliked because people are scared of "getting in trouble." Tax accounting is a little more unstable because the tax system is under so much scrutiny.
•What and where are the opportunities?
-Additionally, public accounting firms form their own industry and perform accounting and auditing functions for companies that do not have internal auditors/accountants. As I stated before, accountants and auditors are needed in every business, and in every industry.
•What are typical salaries in this type of job, entry-level to experienced? What are the opportunities for career growth?
-As a Government auditor/accountant, the starting salaries range from $35,000 to $45,000 annually depending on level of education (undergraduate versus graduate degree). After 10 years of experience, a Government auditor/accountant can expect to make approximately $95,000 annually. After approximately 5 years, an employee is eligible for promotion to lower-level management.
Entry into Position:
•When and how did you get involved in this work?
-I took an Accounting class in high school and loved it. I decided then to study accounting but knew that I did not want to do public accounting. While in college, I narrowed my career path to auditing because it seemed like the best fit for me. Later, someone I knew well who also worked for the Government as an auditor approached me and asked me to apply for a position in his office because he thought I would be perfect for the position.
•What was your training and background? Is this typical for people in your position and in similar positions?
-I have an undergraduate degree in Accounting. For my position, an advanced degree/certification is not required. However, someone working for a public accounting firm would be expected to become a Certified Public Accountant (CPA). Similarly, private companies, though usually not required, favor those who are Certified Internal Auditors (CIA).
•How important are specific credentials for entry or success?
-As a Government Performance auditor, credentials are not very important (except undergraduate degree in Accounting, which is required).
Job Specifics:
•What's a typical day like for you or someone in a similar position?
-I spend a lot of time doing research, including interviewing employees, on the specific Government program I am auditing. Also, I frequently give presentations and report my work. After research is gathered and programs evaluated, I write written reports that are sent to the Secretary of Energy, Congress, and published on the internet.
•What do you like most about your work?
-I like most that I am entrusted to protect tax payer money. I help the Government be more effective and efficient.
•What do you like least?
-I don't like that when I walk into a room, I am immediately disliked.
•What attitudes or values are important?
-Integrity, professional skepticism.
•Who doesn't do well in this type of work?
-People who appear arrogant rarely make any positive changes within the organization because employees are immediately defensive. Also, those who struggle with effective communication would not do well.
•How do you advance or get promoted in this type of work?
-Working well with others is a key skill required to advance.
Recommendations:
•Would my background be appropriate for this type of work?
-See below.
•What would you recommend I do if I want to go into this type of work?
-To go into this field, an undergraduate degree in accounting is required. Further, it is important to sharpen written/oral communication skills.
•Are there other jobs similar to yours that you would suggest I also consider?
-Internal auditing is very similar, but operates on a much smaller basis (an individual company).
•Can you recommend other people I can talk to, or other resources I can check out?
-Fred Pieper is now the Director of Internal Audit for a private company. Also, review the following websites: www.theiia.org and www.AICPA.org.
•Knowing what you do now, would you approach this career (or job) in the same way? If not, what would you do differently, and why?
-I would approach my career in the same way. It worked well for me
Marketplace:
•What are your projections for this type of work or industry? Is it stable, growing, declining?
-I would consider it a stable industry. Accounting and auditing is a necessary function of any business and will continue to be for the foreseeable future.
•What are the key trends or issues? New developments? Key challenges?
-One of the key challenges of being an auditor is that auditors are immediately disliked because people are scared of "getting in trouble." Tax accounting is a little more unstable because the tax system is under so much scrutiny.
•What and where are the opportunities?
-Additionally, public accounting firms form their own industry and perform accounting and auditing functions for companies that do not have internal auditors/accountants. As I stated before, accountants and auditors are needed in every business, and in every industry.
•What are typical salaries in this type of job, entry-level to experienced? What are the opportunities for career growth?
-As a Government auditor/accountant, the starting salaries range from $35,000 to $45,000 annually depending on level of education (undergraduate versus graduate degree). After 10 years of experience, a Government auditor/accountant can expect to make approximately $95,000 annually. After approximately 5 years, an employee is eligible for promotion to lower-level management.
Entry into Position:
•When and how did you get involved in this work?
-I took an Accounting class in high school and loved it. I decided then to study accounting but knew that I did not want to do public accounting. While in college, I narrowed my career path to auditing because it seemed like the best fit for me. Later, someone I knew well who also worked for the Government as an auditor approached me and asked me to apply for a position in his office because he thought I would be perfect for the position.
•What was your training and background? Is this typical for people in your position and in similar positions?
-I have an undergraduate degree in Accounting. For my position, an advanced degree/certification is not required. However, someone working for a public accounting firm would be expected to become a Certified Public Accountant (CPA). Similarly, private companies, though usually not required, favor those who are Certified Internal Auditors (CIA).
•How important are specific credentials for entry or success?
-As a Government Performance auditor, credentials are not very important (except undergraduate degree in Accounting, which is required).
Job Specifics:
•What's a typical day like for you or someone in a similar position?
-I spend a lot of time doing research, including interviewing employees, on the specific Government program I am auditing. Also, I frequently give presentations and report my work. After research is gathered and programs evaluated, I write written reports that are sent to the Secretary of Energy, Congress, and published on the internet.
•What do you like most about your work?
-I like most that I am entrusted to protect tax payer money. I help the Government be more effective and efficient.
•What do you like least?
-I don't like that when I walk into a room, I am immediately disliked.
•What attitudes or values are important?
-Integrity, professional skepticism.
•Who doesn't do well in this type of work?
-People who appear arrogant rarely make any positive changes within the organization because employees are immediately defensive. Also, those who struggle with effective communication would not do well.
•How do you advance or get promoted in this type of work?
-Working well with others is a key skill required to advance.
Recommendations:
•Would my background be appropriate for this type of work?
-See below.
•What would you recommend I do if I want to go into this type of work?
-To go into this field, an undergraduate degree in accounting is required. Further, it is important to sharpen written/oral communication skills.
•Are there other jobs similar to yours that you would suggest I also consider?
-Internal auditing is very similar, but operates on a much smaller basis (an individual company).
•Can you recommend other people I can talk to, or other resources I can check out?
-Fred Pieper is now the Director of Internal Audit for a private company. Also, review the following websites: www.theiia.org and www.AICPA.org.
•Knowing what you do now, would you approach this career (or job) in the same way? If not, what would you do differently, and why?
-I would approach my career in the same way. It worked well for me