101 FAQs About Becoming an Accountant

By Caitlind L. Alexander

Have you ever thought about what it would really be like to be an accountant? What kind of training do you need? What will it be like on the job? What kind of jobs can you get? Is accounting the right career for you? This book is intended to answer those questions and many more. Formerly published as Questions Answered on Becoming an Accountant, this edition is updated with current information.
Many people go into the field of accounting without fully understanding the demands of the career. Many also spend four or more years studying accounting, only to find that it is not the career for them, or that the field will not fully accept them due to elements in their previous life.
There is nothing worse than watching someone complete a full accounting course of study, only to find out that the DUI that they got as an 18-year old prevents them from getting the job they just spent 6 years training for!
Accounting is a highly competitive field. The decisions you make before you begin your career can be just as important, if not more so, than the decisions you make at the beginning of your career. The school you study at, the courses you take, your grades, and even your extra-curricular activities can determine whether you start your career at a top agency or at a smaller firm. The larger and more prestigious the firm you begin your career at, the greater your opportunities, and your salary, can be for the remainder of your accounting career.
Before you consider an accounting career, read the FAQs in this book, and their answers. This book can help you decide if an accounting career is right for you, and if so, how to best prepare yourself for success.

• Language: English
• Publisher: LearningIsland.com
• Release date: Nov 6, 2011
• ISBN: 9781466121164

Caitlind L. Alexander

Caitlind Alexander is the author of over 60 books for children, including the Jamie and Kendall Broderick Mystery series, the 14 Fun Facts and 101 Fun Facts series, the Wonderful World of Animals Series, and the Miss Jones series.She lives in California where she loves to visit historic places and learn about new things. She also loves to travel and has been all over the world.

Book preview

101 FAQs ABOUT BECOMING AN ACCOUNTANT

Second Edition

Answers to questions you asked (or should ask) when you are considering becoming an accountant.

By Caitlind L. Alexander, E.A.

LearningIsland.com

Editor: Jennifer Robinson

Title page picture by Ken Teegardin www.seniorliving.org

Smashwords Edition

(c) Copyright 2010 Caitlind L. Alexander. All rights reserved.

Published by LearningIsland.com.

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to others. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you're reading this book and did not purchase it, or it was not purchased for your use only, please purchase your own copy from any of several online ebook stores. Thank you for respecting the hard work of this author.

101 FAQs on Becoming an Accountant / Caitlind L. Alexander

Summary: A list of frequently asked questions and their answers about becoming an accountant.

1. Accounting. 2. Careers. 3. Employment.

Created in USA

TABLE OF CONTENTS

INTRODUCTION

LINKED LIST OF QUESTIONS

GENERAL JOB INFORMATION

EDUCATION

CERTIFICATIONS, EXAMINATIONS AND DESIGNATIONS

TYPES OF ACCOUNTING JOBS

GETTING THE JOB

ON THE JOB

CONCLUSION

About the Author

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INTRODUCTION

Have you ever thought about what it would really be like to be an accountant? What kind of training do you need? What will it be like on the job? What kind of jobs can you get? Is accounting the right career for you? This book is intended to answer those questions and many more.

Many people go into the field of accounting without fully understanding the demands of the career. Many also spend four or more years studying accounting, only to find that it is not the career for them, or that the field will not fully accept them due to elements in their previous life.

There is nothing worse than watching someone complete a full accounting course of study, only to find out that the DUI that they got as an 18-year old prevents them from getting the job they just spent 6 years training for!

Accounting is a highly competitive field. The decisions you make before you begin your career can be just as important, if not more so, than the decisions you make at the beginning of your career. The school you study at, the courses you take, your grades, and even your extra-curricular activities can determine whether you start your career at a top agency or at a smaller firm. The larger and more prestigious the firm you begin your career at, the greater your opportunities, and your salary, can be for the remainder of your accounting career.

Before you consider an accounting career, read the FAQs in this book, and their answers. This book can help you decide if an accounting career is right for you, and if so, how to best prepare yourself for success.

This book is laid out in sections with related questions grouped together. At the end of each question’s answer are links to related questions. This allows you to jump around to find out everything about a specific question you had.

Please remember that in this technologically savvy world, information (and websites) can change quickly. The information in this book was accurate at the time of publication, though changes are to be expected as time goes on.

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LINKED LIST OF QUESTIONS

Since many people prefer to go through this book by skipping to those questions that interest them most at the moment, this linked list of questions is provided to facilitate that. Each question also provides a short list of related questions at the end of the answer.

INTRODUCTION

GENERAL JOB INFORMATION

1. Is accounting right for me?

2. What do accountants do?

3. What kind of person makes a good accountant?

4. What skills do I need?

5. Why get into accounting?

6. Where do accountants work?

7. What are the working conditions like?

8. What is the job market like for accountants?

9. What are the advancement opportunities in this field?

10. What if I have an arrest on my record?

11. Is this a good career change for someone in their 30s or 40s?

12. What if you decide you really want to do this, even though you are changing careers in your 30s or 40s?

13. Can someone practice accounting in the United States if they received a degree outside the United States?

14. Can I practice accounting if I have a CA degree?

15. I’m in high school. What should I be doing to help myself get a good accounting career?

EDUCATION

16. What education do I need?

17. Which school is best for me?

18. How can I find a good school?

19. What are the advantages of attending a two year or junior college and then transferring to a four year college?

20. What are the disadvantages of attending a two year or junior college and then transferring to a four year college?

21. Now that I’ve chosen the school I want to attend, how do I get in?

22. What about going to an online college?

23. Can I get an accounting job if I graduate in Finance or something like that?

24. How important is a good GPA in college?

25. What can I do if my GPA is not the best?

26. What do colleges want to see in an essay?

27. How important is a master’s degree?

28. How do I get into a master’s degree program?

29. What is the GMAT?

30. How important is a PhD in Accounting?

31. How much accounting do I need to be a tax preparer?

32. How much accounting do I need to be a bookkeeper?

CERTIFICATIONS, EXAMINATIONS AND DESIGNATIONS

33. How important is obtaining a CPA license?

34. What is required to sit for the CPA exam?

35. How do I apply to sit for the CPA exam?

36. How do I schedule to sit for the CPA exam?

37. What resources are available to help you pass the CPA exam?

38. What preparation tips can help me get a better score on the exam?

39. What is sitting for the CPA exam like?

40. What happens after the exam?

41. What exam tips can help me get a better score on the exam?

42. Once I have passed the exam do I automatically receive my CPA designation?

43. Can I get my CPA license if I have a criminal record?

44. Do all hours working as an accountant qualify toward the experience requirement?

45. Once I’ve met all the requirements, how do I get my license?

46. Where can I go if I have questions on getting my CPA licensure?

47. Why should I sit for designations other than the CPA?

48. What is the CMA?

49. What designations are offered by the Institute of Internal Auditors?

50. What is a Certified Fraud Examiner?

51. What is the CISA?

52. What is a Certified Government Financial Manager?

53. What is a Chartered Financial Analyst?

54. What tax designations are available?

TYPES OF ACCOUNTING JOBS

55. What is public accounting?

56. What is management accounting?

57. What is government accounting?

58. What is internal accounting?

59. What is auditing?

60. What is tax accounting?

61. What is forensic accounting?

62. What is sports accounting?

63. What if I eventually want to teach accounting?

GETTING THE JOB

64. How do I get a job?

65. How important is where I live to getting a job?

66. How important is it to be good at typing?

67. How important is it to know Excel and other computer programs?

68. How important is it to have good written and spoken English skills?

69. How important is an internship or practical experience toward getting a job?

70. How do I get an internship or experience while still in school?

71. Do firms hire people without a CPA license or accounting experience for accounting jobs?

72. Now that my resume and cover letter are polished to perfection, what do I do with them?

73. What can I do to prepare for a job fair?

74. How can I make myself stand out at a job fair?

75. Is it a good idea to post my resume on Monster.com and other job search sites?

76. What are the big 4 accounting firms and what are they like?

77. What are the advantages of working for a big four firm?

78. What are the disadvantages of working at a big four firm?

79. How do I get a job at one of the Big 4 firms?

80. Is a big firm better than a small firm for a new accountant?

81. What is the Sarbanes-Oxley Act and how does that affect my job possibilities?

82. What if I haven’t gotten a job after six months of looking?

ON THE JOB

83. What is the dress code like at an accounting firm?

84. What kind of hours will I be expected to work?

85. What kinds of duties or experiences can I expect when I first start out on the job?

86. What will an employer look at in an intern or first year accountant to decide if they will keep them?

87. Is it possible to work as a temporary accountant?

88. How stable is a job in the accounting field?

89. What is the starting pay?

90. What benefits can I expect as an accountant?

91. How are clients charged for services?

92. What are billable hours and how are they tracked?

93. How often do accountants get raises?

94. What are GAAS and GAAP?

95. Who sets accounting standards?

96. What is peer review?

97. What are CPE units?

98. What about starting my own CPA firm?

99. I’ve heard there’s a lot of job burnout. Is this true?

100. How can I prevent job burnout?

101. What accounting associations are there?

CONCLUSION

Back to Linked List of Questions

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GENERAL JOB INFORMATION

(Ken Teegardin www.seniorliving.org)

1. Is accounting right for me?

For many people the big question is whether an accounting career is right for you or not. Answering true or false to the following questions can help you decide if accounting is a viable opportunity. Read each question carefully and be honest. These questions are a true picture of what may be required for you to be a successful accountant.

I love to meet new people.

I consider myself to be outgoing and friendly.

I don’t mind dressing professionally to go to work every day.

I want a career that is financially rewarding.

I want a career where I can advance quickly.

I learn things quickly.

I don’t mind working alone, or working with others as part of a team.

I don’t mind doing the same thing day after day.

I want to have a degree that allows me to choose a number of career paths.

I enjoy working with numbers.

I am detail oriented.

I want a job with a lot of security.

I want a job that forces me to do and be my best every day.

I handle stress well.

I don’t mind working long hours, even 80 or more hours per week for several months at a time.

I want to work in a field that allows me access to the leaders of the business.

I act professional most of the time and want to work around others who act the same way.

I like to see results for the work that I do.

I am willing to pay my dues for several years.

I maintain a high ethical standard.

I do not have a criminal record.

I believe it is important to look at the big picture as well as the small details in a project.

I like advising people and helping them to meet their business and financial goals.

I am comfortable working with computers.

I enjoy using analytical skills to solve problems.

I have excellent written and spoken English skills.

I don’t mind studying hard.

I have a high (3.0 or better) grade point average in school.

I enjoy networking with others and establishing professional friendships.

I enjoy joining and participating in professional groups and organizations.

I’m willing to go to college for at least four to five years and obtain a degree.

I’m willing to maintain high ethical standards for the remainder of my career.

I’m willing to continue my education by taking additional courses or attending seminars every year for the remainder of my career.

I am willing to work in a very demanding and high stress environment.

I am dependable.

I am good at meeting deadlines.

I don’t mind proving my worth on a regular basis, both in school and on the job.

I am a good leader.

I enjoy working at a desk for a major portion of the day.

I enjoy performing my job duties in various locations.

I like making numbers add up, and finding out what’s wrong if they don’t.

If you answered true to 3/4 of these questions (30 or more) then accounting may be a viable career option for you. You may want to speak with a college or career counselor and do a bit more research (including reading this book) to help you decide.

Also see the following questions:

2. What do accountants do?

3. Where do accountants work?

Back to Linked List of Questions

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2. What do accountants do?

Many people see accountants as bean counters. They think that an accountant simply sits around all day figuring out what each bean cost and where it went. They have a need to balance all books to the penny so that they can account for where every single cent is at any given moment.

This is a limited view of what accountants do. While it is true that accounting does involve looking at income and expenditures and finding out where a company’s money is, there are also many other areas of accounting.

In general, accountants can be responsible for any of the following:

Record and report financial transactions

Verify the accuracy of those financial reports

Assist with tax preparation

Advise clients on ways to decrease their tax liability

Help uncover fraud, waste, and mismanagement

Calculate costs for products and acceptable profit margins

Advise clients on ways to improve business functions

Help clients adhere to acceptable accounting practices and standards

And many other functions

All businesses and many individuals need an accountant to help keep track of their income and expenses in order to make needed financial reports to the Department of the Treasury (Internal Revenue Service), the Securities and Exchange Commission, and to their partners, shareholders, creditors and other interested parties. Accurate accounting information can also help a company make decisions on their future expenditures.

There are usually considered to be four main fields of accounting:

Public accounting,

Management accounting,

Government accounting, and

Internal accounting.

Within each of the fields there may be several different types of accounting. These include:

Financial accounting – Creating financial reports to convey information on the financial aspects of a company (i.e., income, expenditures, etc.)

Auditing – Checking the accuracy and reliability of the financial information created by financial accountants or others within the company.

Managerial accounting – Creating and reporting internal data to the managers within a company.

Tax accounting – Creating tax returns, reports and forms for submission to company executives and the Internal Revenue Service. Tax accountants also help businesses plan strategies to improve their tax situation.

Further, within each of these fields there are often additional breakdowns of responsibility. For example, under the heading of management accountants you may have the following areas of specialty:

Financial analysis – Those who prepare overall financial reports on a company such as general ledgers and income statements.

Cost accountants – Those who analyze all the costs involved in creating or purchasing an item and the price needed to cover costs and make a reasonable profit. They also analyze cost-control measures.

Payroll accountants – Those who specialize in payroll disbursement, timecard auditing and their related tax issues.

Planning and Budgeting – Those who create a plan for the company’s progress and budget for the upcoming expenditures needed to implement the plan. They will also monitor expenditures during the year to ensure that people are staying on budget, or that budgets are reorganized to cover any unplanned expenditures.

Forensic accounting – Those who look for fraud, embezzlement, misuse or mismanagement of funds within a company.

As you can see, there are many different facets of accounting, and the tasks performed in each area can differ widely. However, they all fall under the umbrella of accounting.

Also see the following questions:

1. Is accounting right for me?

6. Where do accountants work?

55. What is public accounting?

56. What is management accounting?

57. What is government accounting?

58. What is internal accounting?

59. What is auditing?

60. What is tax accounting?

61. What is forensic accounting?

62. What is sports accounting?

63. What if I eventually want to teach accounting?

Back to Linked List of Questions

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3. What kind of person makes a good accountant?

There are a number of attitudes and talents that make a person good for the accounting profession. The most common of these include the following:

Open Personality

First and foremost is an open personality. Accountants will meet with clients on a regular basis. They will also interact with other members of the accounting team. Many accounting firms will expect accountants, even those new on the job, to interact with clients and to contribute comments and insight to the team.

Analytical

It is important for accountants to analyze the data that they receive and make decisions based on that data. Accountants often act as consultants or advisors to companies, providing them with information on everything from accounting practices, to hiring personnel, to planning future expenditures. Firms often look for accountants who are analytical thinkers,

Enjoy Giving Advice

Companies that hire accountants are looking for advice. They want to make their company better. Just telling a company that all their financial statements are complete and accurate is not enough. They want advice on how to improve their company, and often make it bigger and they often expect accountants to provide that advice.

Enjoy Meeting New People

Accountants will meet with new clients on an almost daily basis. They not only interact with the management of these companies, but often with lower level employees as well. When performing audits, you often need to speak with employees at all levels of a company regarding their job and the data they have generated.

Accountants should enjoy meeting new people and have the ability to put these people at ease. These skills can help an accountant get the information they need to make the work go much more quickly.

Confident

Accountants need to have the confidence to make a decision and stand by that decision. Often companies in trouble will try to justify their actions or decisions. An accountant will need to withstand the defenses put up by these people without getting defensive themselves, or losing confidence in their decisions.

Problem-Solver

Many companies who seek the services of an accounting firm do so because they are unable to resolve their own problems. They are looking to an accountant to help them gain perspective on why things are not working out as planned, or on how to make things work out better. Accountants must often look at a company’s situation and financial data and help them determine what the problem is and how to correct it.

Creative

Hand in hand with solving problems is creative thinking. Once they understand what the problem is, accountants must often come up with creative ways of solving those problems. Most companies can look at books and standards guides to understand how things should be done and how most companies have solved problems. Accountants are often asked to go beyond the information contained in these books. After all, if looking up the problem in a book and reading how to solve it was all that was required, why would companies hire an accountant?

Strong Sense of Ethics and Integrity

Honesty and integrity is vital to your success in this field. As an accountant you are often given access to information that is private and confidential. The accounting firms and their clients need to know that you will handle their records with integrity.

Additionally, the accounting firm needs to know that you will base your opinions and recommendations on accepted accounting standards, rather than on the wishes of the client or their employees. Because of this standard, those who have a criminal record may find it difficult to enter the accounting profession.

Comfortable with Numbers

Financial records often contain thousands of calculations and numbers. It is important that these numbers add up properly. All accountants need to be comfortable with math and numbers.

Well-Rounded

Accountants are often called upon to put financial data into perspective. This often requires a well-rounded background with experience in a number of areas other than accounting. Candidates who have little experience outside of accounting classes and jobs are often unable to understand how numerous types of businesses function.

In the accounting world, you will be asked to make suggestions on improving a company’s financial situation, as well as their standards. To do this you need to be able to base your suggestions on more than just financial data. Having an understanding of how the world works can prove invaluable in this situation.

Able to Handle Stress and Deadlines

Accountants work in a very high stress field. Engagements need to be done on time and under budget. This often means pushing fast and hard to get things done quickly.

Accounting firms make money by billing their clients for the work they perform. They contract for the cost of their services based on an estimate of the time and resources needed to complete the job. They must also undercut their competition in order to get the contract.

This means that the amount the firm can collect from the client is set before the work begins. If you are over the amount budgeted for the contract, the firm cannot collect these extra amounts. However, by law they must still pay their workers for their work.

Because of these factors, it is important that you be able to meet a deadline and perform well in a stressful situation.

Prefer Organized Work Environments

Organization is an important skill for accountants. They need to be able to organize data, thoughts and advice in such a way that it communicates their

Reviews for 101 FAQs About Becoming an Accountant

[William Sabin · Rating: 5 out of 5 stars]

This book has saved me thousands of dollars! My son was thinking about becoming an accountant because of the high wages paid. Then he read this book and found out what the job really entailed, and what it took to get and keep a good accounting job. Now he's looking for another career. After reading part of this, I can easily see that he wouldn't have made it at this job! A great big THANK YOU to this author for telling it like it really is.