Luca Pacioli spoke of the same accounting terms that we use today: journals, inventories, ledgers, assets, liabilities, profits and losses, expense accounts, etc. He observed that until the debits are equal to the credits, your job is incomplete.
In today’s competitive world if you want to build a solid accounting career, you need a strong foundation. This is possible only if you have a college degree, particularly a degree in accounting. According to the Bureau of Labor Statistics (BLS) accountants who acquire certifications or licensures, master’s degrees, or specialized expertise will have an edge in the job market.
The BLS also reports that accountants and auditors have a median annual salary of $50,770. In your accounting career you can expect faster-than-average job growth over the next few years fueled by an increasing number of businesses, changes in financial regulations, and closer scrutiny of company accounts.
Specialties to Consider for Your Accounting Career
Accounting is the practice of collecting and measuring data in order to allocate resources. People are needed to monitor, evaluate, and produce financial and resource data for accounting. There is a pool of specialties to choose from when considering where to develop accounting expertise.
Accounting can be broadly classified as either general accounting or auditing. Accounting is specific to managing a business’s finances by keeping track of payroll and company expenses. Auditing is a practice where records are reviewed and a conclusion is reached to provide a recommendation for action. An auditor reviews records managed by accountants to determine their correctness.
Accounting careers have the following specialties:
Bookkeeping
The term ''bookkeeping'' is generally used to refer to recording financial transactions. The job of a bookkeeper (also called an accounting clerk), is managing records with regard to purchases, sales, receipts, and payments.
Accounts Receivable
''Accounts receivable'' refers to billing customers using a sales ledger and creating a receivables entry, which is also reflected on the balance sheet.
Accounts Payable
Accounts payable is a form of debt that the company owes its suppliers. Accountants working in accounts payable receive bills from suppliers and create accounts payable entries.
Tax Accounting
Accountants who are experts in tax matters manage tax accounting. Their job primarily involves preparing tax returns for their company.
Cost Accounting
The job of a cost accountant is to track, record, and analyze costs. This form of accounting is used to manage company costs and improve profitability.
Payroll and Timekeeping
Payroll and timekeeping clerks keep track of workers’ time sheets and payroll. They ensure that employees are paid on time and that their paychecks are accurate.
Conclusion
No matter which field of accounting you choose, for a successful accounting career it is important to be comfortable using spreadsheets and other financial and accounting software such as QuickBooks and Microsoft Excel.
