There are essentially seven types of accountants, which are financial, management, governmental, tax, forensic, project, and social, and each one has a different function.
Financial accountants prepare financial info in the form of financial statements. Management accountants prepare internal information for the management of a company in the form of budgets and forecasts. Government or public accountants, work for the government and use different procedures than private accountants because the government has different objectives. Tax accountants essentially help individuals and corporations prepare their income taxes. Forensic accountants use accounting to prepare for litigation or disputes between parties. Project accountants track the progress of a project from beginning to end by making reports to those in charge of project management. This is to help keep a project on or under budget. Social accounts report the activities of an organization on a social and ecological level through the form of environmental reports.
Requirements, as far as education and training, vary depending on what kind of an accountant you want to become. A certified public accountant, which is nothing more than a title given to those who have passed the Uniform Certified Public Accountant exam, is just that. In order to become one, you need to pass the exam. A particular education is not required per say, but is taken into consideration as well as any related work experience. In short, becoming a CPA is difficult but well worth it.
For any other accounting position, normally a degree in accounting from an accredited college is all that is required though some companies, at their discretion, will insist that you have a master’s degree in accounting as well.
While becoming an accountant, especially a CPA, is not easy, it is very well worth the effort as the profession in general is well paid. So what do the different types of accountants make? Accounting salaries do vary greatly depending on what kind of accounting you get into. For example, the average starting salary of all accountants is about $52,000, while the average CPA salary is about $68,000. The differential in salaries between CPAs and most other accountants is roughly 10% or $7,000.
There is no question that the demand for accountants is there and the money, no matter what kind of accountant you become, is more than substantial compared to many other professions.
