Jobs in finance, be it accounting, bookkeeping, or tax preparation, are always in demand. If you’re looking for a career with security and reasonable remuneration, it’s a great option. All businesses need financial help, from a team of specialists for larger firms to consulting once or twice per year for smaller businesses. There are many different specializations within the finance industry, and choosing one that appeals to you will make your career more rewarding.
Financial accounting
Financial accountants focus on creating reports that are used externally and are shared with the public. As these reports can be requested and viewed by anyone, great care must be taken to ensure that they are accurate and withstand scrutiny. Financial accountants will work with internal stakeholders, such as managers and the leadership team, to create strategies on how the company can be more profitable. They also track all of the outgoings and income that go through the company to ensure a thorough record of the business’ cash flow and ensure that all financial policies are being followed.
Financial accountants must follow the ‘Generally Accepted Accounting Principles’ when operating in the US and the ‘International Financial Reporting Standards’ if the trade is made internationally. To be a successful financial accountant, you’ll need attention to detail to create the reports that businesses need to show to the public.
Managerial accounting
A managerial accountant will be responsible for the internal financial reports needed within a business and will create documentation presented to the senior management team or board. Care must be taken to ensure that information is only provided to those that need to see it, which can be a significant responsibility as confidential information leaking could be damaging. A budget will be created, working with critical stakeholders in the business, to ensure that the company can operate successfully in the short and long term.
Cost accounting
A subset of managerial accounting, cost accounting is more specific to understanding and analyzing the manufacturing costs incurred in a business. Work is done to understand both fixed costs and variable costs, then compare this with profits to find profit margins to produce a product. Based on this information, decisions can be made to reduce costs or change pricing structures to increase profits and business success.
Tax accounting
Tax accountants are responsible for ensuring that companies remain compliant with tax regulations, and that the taxes that are filed each year are accurate. They also consult on the best way to file taxes and make suggestions to help companies make the best decisions to avoid paying excessive or unnecessary taxes. You don’t need to be a full accountant to help companies with their taxes, and another career option is to become a tax preparer that allows both individuals and companies to file their taxes. You can find out more about how to become a certified tax preparer here: https://taxfyle.com/blog/how-to-become-a-certified-tax-preparer.
Auditing
Companies are sometimes audited, either by an external party or internally, to ensure that processes are working effectively. In both cases, an auditor will be instructed to review policies and procedures to understand what they are doing and identify any potential issues.
I would tell college kids to stay away from the Big 4.
They are shipping traditional audit and tax jobs to India.
More than 55% of their revenues come from the Advisory business group.
And unfortunately 22 year olds don’t have any real world experience to draw from so consulting positions aren’t generally available to them.