Job Status and Future

Accounting As I pursue a degree in accounting, I am constantly searching for the variety of opportunities and options that my degree completion will bring to me. According to Money magazine, accounting is currently one of the 50 hottest jobs (JobWeb, 2003). In addition, the U.S. Bureau of Labor Statistics (BLS) says that accounting professionals will experience a 10 to 20% increase in job openings by the year 2008. These factors give me confidence that my future in accounting is secure and promising.

This paper will examine the possible avenues, rewards, job market and concerns involved with being an accounting major. Career Choices for Accountants Accounting majors are presented with a variety of options for careers. Many choose traditional accounting careers, while others branch out to become appraisers, budget officers, loan officers, financial analysts and managers, actuaries, underwriters, tax collectors and revenue agents, securities sales representatives, and purchasing agents (JobWeb, 2003). In some cases, an accounting degree can qualify graduates for a career with the FBI.

Today's accountant has taken on a new and innovative role, which has opened up a new variety of opportunities The traditional accounting jobs are often attractive, as they offer accounting professionals careers in many different industries and positions. Therefore, accountants are given countless opportunities to move quickly up the corporate ladder and pick ad choose jobs from a wide range and size of employers.

The responsibilities of an accountant include a variety of tasks (Giles, 2003), including issuance of financial statements and preparation of tax returns, as well as valuation of businesses and forecasting or projections for company financing (IPOs, private placement, venture capital funds, among others). In addition, today's accountants are highly qualified to provide an array of financial advice to clients, often helping businesses improve. While accountants are still expected to be good with numbers, they are now also required to display good interpersonal skills (Giles, 2003).

This is mainly due to the fact that accounting is becoming a more consulting-oriented field. In addition, new technology and consulting skills have changed the way that accountants do business and have expanded the role of the accountant in the modern business environment. As a result of these factors, there are multiple opportunities available for accountants majors to consider. In addition, accounting majors have many more options than just traditional accounting.

The College Majors Handbook recently listed the top ten occupations for accounting majors (Giles, 2003): Accountants, auditors, financial specialist and mid-level managers, executives, administrators Accounting clerks, bookkeepers Other management-related occupations Insurance, securities, real estate, business services Other administrative positions Sales occupations Other marketing and sales positions Computer systems analyst Other computer and information science occupations In addition to these top choices, accounting majors can also pursue careers in healthcare, forensic accounting and information technology.

Earning Potential for Accountants The earning potential of accountants has no boundaries, and is dependent on many factors, including the type of job and company, the geographic location of the job, and the personal qualifications of the accountant (Magill, 1997). The average entry-level accounting position for accounting graduates is in the $33,500 to $40,000 range, depending on the various factors. However, many entry-level jobs offer higher salaries while others offer less. Recent competition between private and public companies for qualified accountants has created significant increases in compensation for all accounting positions.

Current average salaries for positions at public accounting firms are (Giles, 2003): Entry-level - $30,000 to $36,000; Senior accountants - $41,000 to $47,000; Managers - $54,000 to $70,000; and Partners/Directors - $70,000 to $100,000. The private industry salaries for comparable positions are: Entry-level - $31,000 to $35,000; Senior accountants - $40,000 to $52,000; Corporate tax managers - $80,000 to $110,000; Corporate controllers - $75,000 to $150,000; and Chief financial officers - $100,000 to $350,000. Market for Accounting in California The job market for accountants in California is improving, despite the continuous economic slump (Silver, 2003).

Many recruiters who place accounting and finance professionals report that after several months of relatively soft demand, the market for accounting and finance professionals is rejuvenating. According to one California recruiting firm, the greatest demand is for financial analysts and degreed accountants who have three to five years of experience (Silver, 2003). In addition, there is a strong demand for senior accountants with three to five years of experience.

Recent studies reveal that accounting positions are expected to increase at least as fast as the average for all occupations through the year 2006 (Silver, 2003). The job market will be driven by the need to replace accountants and auditors who retire or transfer to other occupations. In addition, as the economy improves, the number of business establishments will increase, creating further demand for accountants to set up books, prepare taxes, and provide financial management advice (Cabrillo College, 2003).

As more businesses grow, the volume and complexity of information developed by accountants regarding costs, expenditures, and taxes will grow as well. More opportunities will arise for accountants as the result of changes in legislation pertaining to taxes, financial reporting standards, business investments, mergers, and other financial matters. The changing role of accountants and auditors also will spur job growth (Cabrillo College, 2003).

Accountants will perform less auditing work due to potential liability and relatively low profits, and less tax work due to growing competition from tax preparation firms, but they will offer more management and consulting services in response to market demand. Accountants will continue to take on a greater advisory role as they develop more sophisticated and flexible accounting systems, and focus more on analyzing operations rather than just providing financial data. Internal auditors will be increasingly needed to discover and eliminate waste and fraud.

Concerns About Future in Accounting In an ever-changing business environment, the accounting industry often seems like a shaky one. The business environment in the United States is dominated by technology, globalization and "the concentration of power in certain market investors, primarily large mutual and pension funds," according to a recent report (Kelcher, 2000). These changes have resulted in inexpensive information and increased competition, which have made many changes in the business environment, including changes in accounting.

One of my major concerns regarding my future as an accountant is the fact that technology has reached amazing levels and has replaced accountants in many smaller firms. Software, such as TaxChecker, enables businesses to perform complete IRS audits on their own return, project income for tax purposes for the coming year, and abate penalties imposed by the IRS (Magill, 1997). Therefore, many individuals, businesses and tax professionals no longer need accountants and auditors avoid.