Discover the key responsibilities of a financial accountant, from preparing financial statements to ensuring tax compliance and analyzing vital company data.
If you’re considering becoming an accountant, understanding the role of a financial accountant can help you determine whether it’s the right fit. Financial accountants focus on preparing, analyzing, and reporting financial information that organizations use to make informed business decisions.
These professionals play a key role in maintaining accurate financial records, ensuring compliance with regulations, and communicating financial performance to stakeholders. By learning more about what financial accountants do, you can get a clearer picture of how this role supports both day-to-day operations and long-term business strategy.
An Overview of Financial Accountant Job Duties
A financial accountant categorizes, measures and documents the transactions of an organization. The accountant prepares a series of performance reports at the end of his or her organization's fiscal year, including a profit and loss statement, balance sheet and cash flow statement. These reports are prepared according to Generally Accepted Accounting Principles (GAAP), which are the widely accepted accounting standards in the industry. GAAP standards ensure that reports are true, fair and an accurate reflection of financial performance.
<h3 id="section---ImportantFactsAboutFinancialAccounting">Important Facts About Financial Accounting</h3><p></p><table border="1"><tr><td> Similar Occupations </td><td> Financial analyst, budget analyst, cost estimator, personal financial advisor</td></tr>
<tr><td> Key Skills </td><td> Organizational, communication, and analytical skills; an attention to detail</td></tr>
<tr><td> Work Environment </td><td> Fast-paced full-time work, typically in an office setting, but sometimes from home</td></tr>
<tr><td> On-the-Job Training </td><td> Part-time internships are available through accounting degree programs</td></tr>
</table><h3 id="section---WhatAFinancialAccountantSReportsDo">What a Financial Accountant's Reports Do</h3><p>A financial accountant's reports provide fair and accurate information in the form of balance sheets, cash flow statements and profit and loss statements. These financial statements focus on an enterprise's financial performance and its ability to adapt financially to changes in the economic environment. This information explores any factors that alter the intrinsic risk of the investment of shareholders or creditors. The financial accountant determines whether a company performs within its stated goals and if its managers make efficient use of resources.
</p><h3 id="section---BecomingAFinancialAccountant">Becoming a Financial Accountant</h3><p>Some people get started on the path to becoming financial accountants by completing a 2-year degree program in accounting. Individuals who earn associate degrees from community colleges may qualify for entry-level bookkeeping jobs and pursue a bachelor's degree part time.
</p><p>However, the most direct route consists of pursuing one of the many bachelor's degrees available in the field, such as the Bachelor of Science in Accounting, offered at 4-year colleges and universities. Following are the courses typically found in Bachelor of Science in Accounting curricula:
</p><ul><li>Introduction to accounting
</li><li>Managerial accounting
</li><li>Financial accounting
</li><li>Tax accounting
</li><li>Auditing
</li><li>Organizational behavior
</li><li>Accounting information systems
</li></ul><h3 id="section---Licensure">Licensure</h3><p>Many financial accountants earn the Certified Public Accountant (CPA) designation. This requires passing scores on the Uniform CPA Examination, a 4-part test administered by the American Institute of Certified Public Accountants. Prospective CPAs must also satisfy state requirements. For most states, this also means completing 150 credits of college coursework.
</p><h3 id="section---CareerOutlookAndSalaryInformation">Career Outlook and Salary Information</h3><p>The U.S. Bureau of Labor Statistics (BLS) predicts an average job growth for accountants and auditors between 2021 and 2031. The BLS projects there will be a 6% job increase, which will account for approximately 81,800 new accountant and auditor jobs in the same decade. The BLS also reported that the median salary for accountants and auditors was $77,250 as of 2021.</p>
