Maybe you choose the accounting field if you love numbers or want to carry your father’s profession. In the initial stages of accounting qualification, everyone is curious about its growth and whether he should engage in accounting or not? This article can be the answer to your questions like Is Accounting A Good Career?
Accounting is basically the complete process of measuring, recording, and processing an organization’s financial transactions or business. After the calculation, an accountant has to communicate financial reports to the executive level. Generally, there are two types of accountants: Chartered accountants and financial accountants.
What Do Accountants Do?
Accountants work in public and private areas, and their fundamental duty is to deal with the everyday monetary exchanges for an organization or business. Their obligations can incorporate; approaching income to active installments. They can be answerable for an organization’s finance and expense allowances, paying providers, actualizing money, check and electronic installments, P&L, planning assessment forms, and accommodating the books at year-end.
An auditor’s obligations may likewise shift contingent upon what kind of accountant they are. For instance, the obligations of a tax accountant are altogether different from other accountants. They may likewise investigate information and use it to plan monetary reports for a charge, VAT, finance, costs, and monetary records. An accountant’s prerequisites are to give a definite and progressing record of the monetary exchanges of an individual or business that they work inside, or they work in an accountancy firm.
Opportunities In Accounting:
Students often want to know or are curious about knowing which field of study is in higher demand. When talking about choosing a career, students often get attracted to accounting as it promises rewarding life in terms of money/salary and benefits. Many Americans are inclined towards accounting as a profession because of its competitive salary scale. Even during the recession of 2008-2009, accountants were the people whose jobs were not lost, and it is generally considered safe in times of recession.
According to the Bureau of Labor and Statistics, there were 1.2 million jobs associated with accounting. Every business, either its private, public, or government sector, is in dire search of qualified accountants to handle their finances and accounts. Accountants don’t need to fear their job security as they are people of high demand. After learning this article regarding accounting as a career, you will feel much confident and have a clear thought to either go for it or not?
Chartered Accountant Vs Financial Accountant:
Chartered accountants have a deep knowledge of business operations that include numberings, financing, and business tactics. In contrast, a financial accountant is more inclined towards dealing with finances and making monetary forecasts for the firm. Accounting is basically a type of professional qualification in which one has to pass exams. Some people also refer to it as a certification in accounting.
To become an accountant, you can opt for many certifications. Becoming an accountant isn’t a piece of cake, and you have to dwell yourself into studies to pass your exams on the first attempt. A Chartered Accountants job is different and will change step by step by an organization’s necessities. They could be partaking in significant monetary choices, including consolidations and acquisitions, or visiting a client or provider to set up another record and talk about business.
A Chartered Accountant must be an expert and should have a decent comprehension of both bookkeeping, finances, and business and be flexible in the administrations they offer to line up with an organizations’ requirements, regardless of whether they work for an organization straightforwardly or on the off chance that they work inside work on contribution administrations to organizations as they need them.
Available Accounting Certifications:
- Association of Chartered Certified Accountants (ACCA): It is a globally recognized Association of Chartered Certified Accountants (ACCA) certification. Taxation, Auditing, and Financial management are the key features of the certification. Some countries also regard Chartered Accountant (CA) as the most significant in accounting degrees. Still, universally, the Association of Chartered Certified Accountants (ACCA) certification is more recognized as it is accepted in over 180 countries. It consists of three levels or modules, with a total of 13 examinations. Roughly over £2,000 or $2,426 cost is incurred to attain the certification, and the certification takes approximately three years to complete. The passing criteria vary from 30% to 80%, depending on the exam.
- Certified Financial Planner (CFP) Certification: For any individual seeking a career in investment or finance, it is the best finance certification for any accountant. The main focus of this certification is on monetary planning and investment planning. It focuses mainly on investment, so it narrows down opportunities in other finance careers. The Certified Financial Planner certification consists of two levels or two examinations. The FPSC (Financial Planning Standards Council) Level 1 certificate is also completed by completing the Certified Financial Planner certification. Roughly over £2,000 or $2,464 was incurred to attain the certification, and the certification takes approximately four years to complete. The passing criteria for this certification are 67%.
- Chartered Financial Analyst (CFA) Certification: The Chartered Financial Analyst (CFA) designation is recognized as a top certification after Certified Financial Planner (CFP) Certification. It is well-pursued certification, often used as a filtering mechanism for organizations while hiring individuals as financial analysts. The passing rate is relatively lower, so it’s considered easier than other certifications. Chartered Financial Analyst Certification mainly focuses on portfolio management and investment analysis. Most individuals who are working in Wall Street are CFA certified. The Chartered Financial Analyst certification has three levels or modules and generally takes four years to complete. The Chartered Financial Analyst certification costs $4,000 to $5,000, depending on early registrations and retakes. The passing criteria vary from 30% to 50% marks.
Pros And Cons Of Accounting:
|A very rewarding career in terms of money.||Hectic job as it includes mind-boggling terms and calculations.|
|Can work anywhere either in government, public, or private sector.||Extra work hours to be spent in the office.|
|Greater number of accounting certifications to move to executive level in the firm.||A tiring job that only deals with taxes and finances.|
|Variety of accounting career paths such as auditor, bookkeeper, tax filer, consultancy provider.||Stressful job as you have to meet deadlines and give financial reporting to seniors.|
|Meets Maslow’s Hierarchy of Needs.||Sometimes you may feel low and maybe your work seems dull.|
|High potential for growth.||You often find it impossible to establish a work-life balance in the accounting field.|
|Ever increasing demand for accountants||Busy life routine and not being able to enjoy life to its fullest.|
|Great opportunities for advancement to the executive level.||Accountant may feel isolated.|
|In future an accountant can start his own accounting firm.||To become a good and qualified accountant you have to perform exceptionally well.|
|An accountant knows their career path/direction and are confined to it.||It often feels sedentary sitting in front of a computer all the time.|
Importance of Accounting:
Accounting is the part of every business, and it is the key operating feature of every organization, business, or entrepreneurial firm. Businesses will always make revenues or incur a loss, and for those calculations and future financial projections, accountants would be needed, and this field of accounting will never grow old. Wherever you will go, you will find the use of accounting. It has become a major part of business operations, and an accountant’s worth can never be neglected.
There are many fields in which people pursue careers. There are a few major points that are taken into consideration while selecting or opting for a career. The salary and growth in salary in that particular field are one of those points. Accounting is regarded as a top field and provides various fields within itself; the career opportunities are good, and growth is significant compared to most other fields.
The base salary of an individual working in Accounting and Finance is £73,000 annually on average. The highest it goes to £147,000, and the lowest is £29,600. While an accountant notches up £42,500 on average per month, the lowest is £32,500 and the highest to £52,500. This shows that even an average employee is getting good pay, and those who are on the higher end are taking home huge sums. Based on salaries, Accounting competes with the best careers.
So, Is Accounting A Perfect Career Path?
According to the scope of accounting, I concluded that it is a good and promising career choice if you want to go for accounting. As it is perfectly explained in this article and you have improved grip of accounting, its pros and cons, its average salary and its future scope in the global market, take the proper time and ask from your own self whether it is a good career choice for you. Just match your skill sets with the requirements, and you will get to know either you should opt for accounting as a career or any other. It’s often said,
‘’ It is not the career choice that makes you successful rather it is the perfect match of your skills in your business environment.’’
Also read Best Entry Level Finance Jobs in 2021