Accounting Financial Accounting Is an

Accounting Financial accounting is an accounting discipline related to the compilation and preparation of financial accounting statements. The statements are produced in accordance with accepted accounting standards (GAAP in the U.S.). Financial accountants are therefore necessary in all publicly traded companies. In addition, financial accountants work in related fields such as auditing, taxation and consulting. Financial accountants are typically licensed. The basic accreditation is Certified Public Accountant. The accreditation course is conducted by the American Institute of Certified Public Accountants (AICPA).

Upon completion of the exam, an accountant becomes a licensed CPA. It is not necessary to be fully licensed to get a job in the field, but the training program must be underway and eventually nearly any firm will require licensure. If the candidate wishes to use his or her financial accounting background to enter the auditing field, there are other certifications that are required. The Institute of Internal Auditors can license a candidate as a Certified Internal Auditor.

There is also a Certified Information Systems Auditor, focusing on the use of information systems in auditing. There are ample career opportunities in both financial accounting and its related professions. The Bureau of Labor Statistics (2011) predicts that growth in these fields will be "much faster than average." Certification as a CPA is recommended for the best job prospects in the coming years. Typically in the field, supplementary training is required. This includes gaining knowledge of International Financial Reporting Standards (IFRS) as there is a move to reconcile these with GAAP.

In total, this field is expected to see around 20% growth in positions between 2008 and 2018. Managerial accountants develop accounting systems that provide information to managers to improve decision-making. The Institute of Management Accountants is responsible for certification in this field, where one becomes a Certified Management Accountant (CMA). The management accounting leads candidates into finance, risk management and even production management. While CMA certification is not necessary to pursue a career in management accounting, it is recommended.

The IMA claims that certified management accountants earn on average $25,000 more per year than non-certified peers (IMA, 2011). As with the accounting profession in general, there is increased demand for management accountants. CMAs are in demand because of their ability to contribute to the profitability of businesses, and demand for CMAs is expected to grow in coming years. Because CMA job duties are less structured than those of financial accountants or auditors, CMAs enjoy greater career flexibility. Both types of accounting positions are poised to enjoy significant growth.

There is also a trend in business, particularly since Sarbanes-Oxley, of looking to accounting professionals to lead firms. More CEOs are coming from the accounting stream than ever before, which highlights the importance of all types of.