In our competitive and increasingly globalized world, accounting and finance professionals serve as the backbone of successful companies. Finance professionals secure the funding needed to grow organizations and manage the capital that sustains them. Financial reporting and managerial accounting professionals encompass the planning, analysis, and interpretation of data used by today’s professionals to enhance decision-making and resolve complex challenges. Whatever career path you decide to pursue, success in accounting and finance is almost unlimited and full of diverse opportunities. Today, more than ever before, accounting and finance professionals are proven leaders who enjoy challenging work, wide-open mobility, flexible work schedules, great benefits, and a wide array of employment opportunities. Technology changes with lightning speed, and the accounting and finance fields have always demanded a steep learning curve. The good news is you have chosen a well-conditioned industry. Accounting and finance have quickly adapted and developed faster than their counterparts. And as for your career, what does that mean? You will be embarking on a lifelong journey of learning and discovering new ideas, trends, and tools. This guide concerning exploring life after graduation can be viewed from a variety of perspectives. If you are a student venturing into a world of accounting and finance, you might use this guide as an informational tool to understand the potential career paths and their corresponding requirements. If you are an early-career professional, you might use this guide to better understand your current job and the types of roles to expect in the upcoming years. Given this, we will first tackle the standard career paths of a professional in accounting and finance, followed by some of the divergent career paths within these industries.
Foundations of Accounting and Finance Careers
Accounting and finance are fundamental concepts and functions that drive and monitor the operations of countless organizations in the economy. Financial management is a core function in any business, whether it is a public service or charity, and is subject to specific financial regulatory frameworks. In addition, a necessary component for both public and private organizations is to report the results of their operations and financial position to other stakeholders, including potential investors, internal stakeholders, and government agency regulators. The process of communicating this information is contained in financial reporting standards, which ensure that the financial reports are prepared in a way that facilitates comparison between different providers. Along with the nature and purpose of the reporting, the process of reporting is clearly affected by the other languages that the profession of English uses. Key skills for those who seek professions in accounting and finance are aimed at a better understanding of business and finance. Public accountants and public officials provide input on financial and accounting matters to a third party, including banks, audit firms, tax offices, regulatory organizations, or potential investors. Finance professionals, in addition to interlinked professions such as banking and investment, focus on private sector financial management and investment. To thrive in both lines of work, professionals need a deep appreciation of the ethical and governance underpinnings, the importance of current institutional dynamics, the plethora of internal and external reporting issues, the role and nature of financial institutions, financial markets, market players, and financial instruments, as well as advanced skills in using tools and cutting-edge technology.
Core Concepts and Skills
A career in accounting or finance demands a keen understanding of core concepts. While education and training can expand on these themes, individuals must first demonstrate fluency in these topics. Such skills include financial literacy, quantitative analysis, interpreting financial statements, and using accounting software. Companies search for potential hires who possess foundational financial literacy; cash management, payroll and payroll law, economic principles, and the time value of money are just a few of the areas young professionals should be acclimated to. The world is only growing more technological; accounting is no different. Technology is transforming the field through the development of data-based accounting software. The best professionals understand how to employ such platforms for the best results. As you work to apply and advance these core competencies, free resources and continued learning can aid your professional journey. Plus, professionals engaging in the industry must keep learning; a certification from programs functions like a roadmap for adult learners who need to grasp the most pressing issues and topics interrupting the profession. On top of these core competencies, career professionals must exhibit strong communication skills. Both accountants and financial managers must be capable of making their findings understandable to clients and other individuals who may not have both the specialized skill set and the industry-specific vocabulary. Given the fast-paced industry changes of the 21st century, professionals need to always be focused on growth, enrichment, and self-improvement.
Traditional Career Paths
Traditional Career Paths: Although the fields of finance, accounting, and banking offer myriad career paths for graduates, several common paths exist, particularly for those who are new to the industry. A number of newly minted graduates have a transitional career goal in mind—to begin as loan officers, credit analysts, auditors, financial analysts, securities analysts, or management trainees in the related fields of banking, corporations, government, nonprofit, and international agencies. Roles include directors or chief financial officers of corporations, branches, and agencies; bank managers; chief securities officers or auditors; accountants in public practice; and entrepreneurs of their own firms. Before becoming supervisors of staff employees, they are on the ladder and also have staff responsibilities. Typically, those who pursue one of these traditional paths in accounting and finance start in entry-level positions in one of the specializations mentioned above.
The jobs are generally in large or public organizations and uncontroversial corporations, and they are considered somewhat conservative, “white collar,” corporate positions. While they may be relatively conservative in the early years of their careers, the traditional paths offer the possibility of advancement and increased responsibility over a several-decade career. Hiring for these positions does not follow first-in-first-out strategies, but in some cases, internships may turn entry-level positions into permanent hires, and entry-level positions become your path to professional advancement. Having a good working knowledge of cash management, investments, asset management, liabilities, finance, cost of capital, break-even analysis, leverage, capital budgeting, joint ventures, and business valuation can be quite helpful. A self-assessment that includes a person’s three best non-technical and three best technical skills is also a helpful tool.
Accountant
Accountants and auditors are vital members of almost every organization’s financial team. In general, accountants and auditors prepare and examine financial records. Accountants also ensure that financial records are accurate and that taxes are paid properly and on time. They perform these vital functions by offering an increasing array of business and accounting services, including public, management, and government accounting; internal auditing; and information technology consulting services to businesses. They are also moving into the challenge areas such as environmental accounting, earnings management, and the detection and prevention of fraud. All organizations, businesses, not-for-profit agencies, and government have financial records that need to be prepared, analyzed, and reported by professionals. Job titles for accountants who currently have their CPA offer an even greater number of new opportunities: controller, internal auditor, management accountant, and government. A third option is personal financial planning. The lowest 10 percent earned less than $35,440, and the highest 10 percent earned more than $122,650. Earnings often are contingent on the accountant’s qualifications and certifications. When accountants have professional credentials, the owners, stockholders, suppliers, and bankers know that their financial information adheres to industry standards and government regulations and that the company is following the rules.
Financial Analyst
In an organization, financial analysts are those professionals who utilize their expertise to provide financial guidance to individuals and businesses. Financial analysts are responsible for helping people make informed investment decisions. It is a broad role that needs proficiency in undertaking a wide range of tasks. Their day-to-day activities include assessing industry, economic, and market trends to finally advise clients on short-term and long-term investment strategies for managed investment funds. They also assess the performance of stocks, mutual funds, and bonds within the funds. The work is basically to recommend investments and conduct various analyses to help achieve the fund’s investment objectives. Some must-haves for a financial analyst are analytical skills and a high degree of competence in quantitative methods. Individuals need to delve deeper and research the financial stability of companies and the fundamental value of an investment to achieve success as an analyst. Professionals specializing in this field are always in demand within the banking, corporate finance, and investment sectors where changes in the financial markets are closely monitored. Financial analysts might also have careers in auditing and accounting as they also make earnings projections and financial statements of publicly held companies.
A financial analyst should try to earn a relevant degree such as business administration, finance, accounting, or statistics. Having a master’s in business administration and finance would be of great assistance in this field since learning managerial skills is essential. Financial analysts need to hold at least a bachelor’s degree. Other qualifications required are the CPA and CFA certifications. The job growth in this specific profession is believed to be 1.9% until 2029. The employment level as of 2018 was a high 329,000. The annual wage as of May 2020, which is clocking at $83,660, is $40.21, with the lowest 10 percentile bringing home $52,540, and the highest 10 percentile earning $155,020. The career advancement here is tremendous. A financial analyst can move up to positions like senior or portfolio manager with accumulated expertise and good reviews. It’s not just the resumes but the potential to adapt for comfortable growth that counts during a high-pressure day.
Emerging Trends and Specializations
Emerging vibrations in the fields of accounting and finance are being guided in part by the continuous progress of technology and the interdisciplinary nature of areas of knowledge in forces like information systems, organizational behavior, and economics. In accounting, global transactions have accelerated the need for regulation that leads to specializations like international financial reporting and international taxation. The pressing need for accountants to produce forward-looking insights in the wake of the global financial crisis has led to specializations in fraud and forensic accounting, corporate governance, and a focus on full value chain analyses, including human, social, and economic costs as well as product and service values. Simultaneous to this is a global interest in corporate responsibility and sustainable supply chain operations, increasingly appropriate topics in accounting and finance.
Emerging topics in accounting are those that examine the complex relationship between a firm’s financial performance, its economic stability, and social, ecological, and cultural sustainability. From social entrepreneurship to community investing, the emphasis of these activities is on impact, making sure that there is a bottom line balancing its financials with a compassionate program that helps energize the community it does business with. In the area of finance, marked specializations have been developing due to a renaissance in research and operations. These specializations are oftentimes subsets of activity at the border of microfinance and corporate social responsibility, although not all integrate triple bottom line into their curricula. Another area of keen interest is the burgeoning trend of microfinance and the necessary study of cultivating revenues rather than mining for oil. Abundant in social implications, this specialization has taken off in the United States, ranked highest on the continent for institutions following through with corporate social responsibility. As with new specializations and trends emerging, business schools are working to provide the right support for their students and the public service community in pushing these variants. Within the community of practitioners of these evolving topics, there are mechanisms for sharing knowledge. Guest editorial boards submit specific journals on sustainable accounting and microfinance in finance and accounting, illuminating concrete career possibilities in the new post-corporate social era; a plethora of business opportunities await those that are there to transform business practices. These trends in the nation’s global economic actions sometimes collide with global socio-economic policies, and the interconnected world sees the influence across national boundaries.
In early 2017, the Task Force for the Future of Education released its findings and potential initiatives for a forward-thinking curriculum. One of the driving factors was the technological influence on professions: currently, skills and competencies in the areas of data analytics and data science are the newest buzzwords on Wall Street and in corporate America. There has been a desire to replenish and increase the incoming ranks with data scientists. Even management consultants are getting into the mix by hiring data scientists. What is pushing this need for these niche skills, and why should a college student entering the workplace consider if, where, and how they should cultivate a niche? Careers on Wall Street and in corporate America require an understanding of how technology, regulation, and policy intermingle, and a few products at the undergraduate program were specifically created due to praxis and a fast-moving market with regard to those relationships. Therefore, we offer an applied undergraduate education addressing the needs, requirements, and specific skills needed to enter business sectors such as Wall Street or corporate America.
Forensic Accounting
Forensic accounting is a unique blend of accounting and investigation. Forensic accountants are called upon to investigate financial inconsistencies and discrepancies that often have legal ramifications. They may be asked to uncover embezzlement, fraud, asset recovery, and hidden financial assets. The practice of forensic accounting requires careful, thorough analysis and a scrutinizing eye for detail. The majority of work done by forensic accountants is court decision ready. In response to the rise in popularity of this pathway, academics began to produce textbooks and develop specific curricula related to forensic accounting. The career field is in high demand; a current search under forensic accounting jobs returned numerous job postings. Additionally, gateway salaries are expected to start at approximately $38,000 and can range upwards of $99,000. Forensic accountants work for law enforcement agencies, corporate security departments, and private firms. They may also operate as independent consultants. This work combines knowledge in forensic accounting and the knowledge of laws that apply. The additional designated areas include: Certified Fraud Examiner. Among the most important character traits in the field of forensic accounting are honesty, trustworthiness, and integrity. To become a forensic accountant, a solid educational foundation in accounting, finance, or business is beneficial to ensure knowledge of accounting principles and an understanding of financial markets. A degree from a four-year institution is the beginning of the road; information related to forensic accounting is also available as a concentration within some existing accounting programs.
Fintech
Fintech, or financial technology, refers to innovation in the finance sector based on the development and use of new software, as well as the ability to interact with consumers face-to-face and via technology. The main value either disrupts, complements, or enriches existing traditional financial approaches. It also refers to innovative ways in which traditional finance is being developed, deployed, or used. For example, new models of doing finance, such as crowdsourcing, can leverage equity financing as well as trade finance. New technologies, such as mobile payment platforms, insurtech, automated investment, and blockchain’s capacity as a public ledger covering a wide variety of commercial activities, including bridging loans for SMEs and Initial Coin Offerings, have been seen as a new way of raising venture investment capital, circumventing the need for banks and stock markets, albeit these are now in decline following recent regulatory statements.
The ‘fintech revolution’ has opened up all sorts of career opportunities for bright, young individuals, particularly for those who are tech-savvy. A number of professional bodies now offer certificates in fintech. Applicants have displayed the following profiles: creative and analytical; able to think deeply and dare to question the norm; ability to handle big data; good with coding; able to handle a changing environment; interested in how businesses work. Compliance has also cropped up in various fintech sectors to a larger extent since the financial crisis of the global credit crunch. The qualifications are focused on fintech in this case. Existing financial markets and industries are experiencing change through harmony with the aspirations of the surrounding ubiquity of technology. Careers in fintech show dynamism and innovation in which regulations play an important dynamic part, as much as the technology, people, and place. Prospective employers have found it advantageous to know more about governmental standards and regulations up to the market director level. Being technically interdisciplinary in outlook and utilization can ultimately be seen as beneficial.
Skills and Qualifications for Success
Certain skills and qualifications can increase a candidate’s chances of succeeding in the accounting and finance field. Technical skills are important, including financial modeling, basic coding, data analysis, and relevant accounting software. A strong foundation in finance is also essential. In addition to these necessary hard skills, a number of soft skills are important, including the ability to communicate effectively, both in writing and verbally. An ability to work effectively as part of a team, particularly in pressured situations, is an essential ingredient to career success, as is the ability to multitask. The ability to critically evaluate and think is also important, especially in light of recent industry trends in data analysis. Your résumé will be enhanced by relevant certifications. To work in an accounting or audit setting, a Certified Public Accountant credential is required. A Chartered Financial Analyst certification may open the door to finance-related roles. Additionally, you can apply for a CPA if you have chosen a certain type of accounting role.
Transferable abilities from applicable internships and co-curricular activities will be useful entry-level qualifications for those seeking a career in accounting and finance. It is also a good idea for employers to consider taking useful classes in their potential career fields. However, it is important to mention that job postings in the accounting and finance field are not always synonymous in terms of knowledge of the industry. So, if you come across that post while researching, don’t be discouraged. Employers also search for positive personal features in individuals who represent their organizations. Characteristics deemed useful for accounting and finance professionals include a strong work ethic, the potential to negotiate and problem-solve successfully, a desire to participate in ongoing learning and professional growth, resilience in the face of adversity, the potential to adapt to new challenges, and an ability to acknowledge their mistakes. When studying accounting in America, lifelong learning and development are highly essential because technology is continuously changing, and new innovations are constantly being integrated into this field.
In conclusion, core aspects of professional pursuits in accounting and finance. While each industry plays a very different role in national and global markets, prospective candidates for accounting and finance are presented with job stability, strong career advancement opportunities, and high compensation. The professional finance and accounting landscape will fundamentally be different in ten years, primarily due to the impacts of maintaining a digital, global-first approach. Professionals will need to be flexible, adaptable learners, continuously shaping their careers by learning from the digital disruption of finance. They should also acknowledge the very close involvement of many finance and accounting professionals in creating opinions and leading business practices. There are threats underlying these advantages, however. The field is only growing at a stable rate. In order to achieve high career satisfaction and success, new and emerging fields are creating new professional specializations, especially related to digital technology, data analysis, and some of the new financial markets that are being digitized. In conclusion, careers in accounting and finance are viable alternatives for many prospective professionals. We caution that, while a level of foundational collaborative data and connection with financial statements is helpful, successful jobs and compensation in these fields do not need to emerge from degrees in economics or mathematics and that those students do not have the ability to major in business or finance. We suggest mostly a careful blend of the need to accumulate credentials at the undergraduate level, such as direct placement into business curricula, affiliation with professional organizations, and maybe a few certificates, with the need to learn fundamental first principles that will lead to more abundant and more digital and transnational careers. Those students should be proactive in their involvement in co-curricular activities and find work experiences. Tailoring one’s career or educational efforts toward these trends today is believed to be helpful for tomorrow.
