ACCOUNTANTS AND AUDITORS California Occupational Guide Number 1 Interest Area 11 1995
TRENDS
No longer is accounting just financial - dealing with assets, liabilities and cash flows. Most modern accounting deals with operations rather than finance. There is a new "transactional" accounting that attempts to relate operations to their expected results. There are attempts to change asset value from historical costs to estimates expected of future returns. New theories aim at turning accounting data into information for management decision making.
THE JOB
ACCOUNTANTS AND AUDITORS prepare, analyze and verify financial reports crucial to all business and government organizations for sound financial planning.
The four major fields are: management, public and government accounting and internal auditing.
Management Accountants work for private companies. They maintain financial records, help with budget planning and advise top management. A single Accountant may perform all accounting functions, or there may be several specialists. Cost Accountants for example, study the cost of production, administration and distribution, compare actual costs to expected costs, and make recommendations for cost-control measures.
Public Accountants work for private companies that serve other companies and the general public. Most Public Accountants are licensed by the State as Certified Public Accountants (CPAs). CPAs examine financial statements, records and systems of control. They can attest that the accounting records conform to established standards and accurately present the company's financial condition. Some CPAs specialize in taxation. Tax Accountants compute individual and corporate tax returns, design long-range tax and estate plans, and advise clients on the tax ramifications of proposed activities. Other CPAs specialize in management consulting. They help clients solve complex business problems, ranging from securing funds for expansion programs to the design and installation of computer-based information systems.
Government Accountants work for government agencies. Many work for the federal government as internal revenue agents, tax auditors, or bank examiners. Others are involved in financial management and budget administration at the federal, state, or local level.
Internal Auditors' work is growing in importance. They use computer systems to produce up-to-the-minute information that allows management to base decisions on actual-rather than historical data. They examine and evaluate financial and information systems, procedures and internal controls to protect against fraud and waste. They also evaluate operations for effectiveness, efficiency and compliance with corporate policies and government laws and regulations.
WORKING CONDITIONS
CPAs frequently work in client offices to do audits. Some jobs, such as those performed by government auditors and CPAs, require considerable travel. The work is often challenging and may be stressful. Accountants may work long hours under pressure, particularly during the first quarter of the year, which is both tax and audit season.
EMPLOYMENT OUTLOOK
Accountant and Auditor occupations rank among the fifty largest in California. The following information is from the California Projections of Employment published by the Labor Market Information Division.
Estimated number of workers in 1990 105,680 Estimated number of workers in 2005 139,780 Projected Growth Percentage 32% Estimated openings due to separations by 2005 27,610
(These figures do not include self-employment nor openings due to turnover)
WAGES, HOURS, AND FRINGE BENEFITS
Salaries vary with the size and location of the firm and individual qualifications. Salaries for Accountants with little or no experience range from $2,000 to $2,600 a month. Those who have two or more years of experience generally earn from about $2,250 to $4,600 a month.
Work hours also vary. Most Accountants work 40 hours a week with additional overtime during busy seasons. They may receive extra pay or compensating time off for overtime. Fringe benefits normally include paid vacations, sick leave, group health insurance and retirement plans. Some companies offer profit-sharing plans. CPA firms often pay for CPA exams, professional courses and professional society membership dues.
ENTRANCE REQUIREMENTS AND TRAINING
Accountants and Auditors need a BA degree with a major in accounting. For tax management accounting, an MA degree is desirable. A grade point average of 3.0 or higher is generally expected for jobs in CPA firms. These professionals should be able to work independently, perform well under pressure, comprehend information quickly and possess good analytical and communication skills. They must be able to explain and interpret data for clients. The ability to use personal computers and accounting software is essential. Employers often require that applicants be bondable.
Certification is required for CPAs. Certified Public Accountant licenses are issued by the State Board of Accountancy. There are several alternative ways to qualify to take the CPA examination. Contact the Board of Accountancy in Sacramento for details.
California and all other states use the same Uniform CPA examination prepared by the American Institute of Certified Public Accountants. The examination is rigorous and the failure rate can be high. Candidates are not required to pass all the parts at once, but must do so within three years of passing the first exam. A carefully planned, intensive review contributes to success on the exam. To earn their CPA certificate, candidates need two years of auditing experience with a CPA agency.
CPA agencies usually expect Accountants to earn their license within a few years. Those who do not are generally not promoted and may be terminated. Continuing education courses are required to retain the CPA license.
Some colleges offer internships and/or cooperative education (work-study) programs for a limited number of accounting students in their junior year or above. Interns work in an accounting office for about three months; co-ops alternate several periods of work and study. Such programs offer valuable practical experience and often lead to permanent jobs.
ADVANCEMENT
Management Accountants may earn the Certificate in Management Accounting (CMA) from the Institute of Management Accounting, or the Certificate in Internal Auditing (CIA) from the Institute of Internal Auditing. Both require lengthy written exams and experience. Although neither of these is required by law, they are generally considered symbols of achievement and can aid in career advancement.
Experienced CPAs may advance to manager and eventually to partner. Some leave to open their own practices. Management Accountants may become senior-level supervisors or department managers. A few become Controllers, Treasurers, or Chief Financial Officers.
FINDING THE JOB
Jobseekers should:
-- Register with their college career center
-- Network through professional association members, employed
Accountants and Auditors and personal contacts who are already
employed
-- Apply directly to agencies and firms
ADDITIONAL SOURCES OF INFORMATION
California State Board of Accountancy 2000 Evergreen Street , Suite 250 Sacramento, CA 95815-3822 (916) 574-2125
California Society of Certified Public Accountants 275 Shoreline Drive Redwood City CA 94065 (415) 802-2600
Institute of Internal Auditors, Inc. 249 Maitland AVE Altamonte Springs, FL 32701 (407) 830-7600 Fax (407) 831-5171
RELATED OCCUPATIONAL GUIDES
Bookkeeping, Accounting and Auditing Clerk No. 26 Tax Preparers and Interviewers No. 482
OCCUPATIONAL CODE REFERENCES
DOT (Dictionary of Occupational Titles, Fourth Edition) Accountant, Tax 160.162-010 Accountant, Budget 160.162-022 Accountant, Cost 160.167-026 Auditor, Internal 160.167-034 Revenue Agent 160.167-050
OES (Occupational Employment Statistics) System
Accountants & Auditors 211140 Tax Examiners, Collectors, & Revenue Agents. 219140
Source: State of California, Employment Development Department,
Labor Market Information Division, Information Services Group,
(916) 262-2162.
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