I'm going to discuss some reasons why you might or might not choose a career in accounting.
First, let me clarify. I'm not talking about becoming a bookkeeper or working in an accounts receivable department.
I'm talking about becoming a degreed accountant.
Second, the figures that I'm going to cite are for accountants in the U.S.
So, here we go. Ten reasons why you might choose a career in accounting.
Number one: job security. Accountants are in demand, particularly accountants with a credential like the CPA.
In the U.S., employment of accountants is expected to grow 7% between 2020 and 2030.
In any decent sized town there are job listings for accountants, and even some small towns need accountants.
While some accounting work is being automated, the accounting profession is not going away.
Number two: opportunities for advancement. The career path for accountants is very clear. If you work in public accounting, the ultimate goal is to make partner.
If you work in industry, you start out as a staff accountant, and you progress along the path to becoming a CFO.
Number three: multiple paths. There are many different paths you can take in accounting.
If you hate tax, you can be an auditor. If you hate both tax and auditing, you can be a management accountant.
You could also start your own accounting practice, work for a non-profit, or join a government agency like the IRS or FBI.
You could even become an accounting professor.
Number four: good wages.
I've had many undergraduate students complete their degree and get jobs at big four firms making $60,000 or more a year to start.
Granted that's not as much money as you'd make if you went into investment banking or computer science, but it's a great salary for someone coming out of college.
The median wage for all accountants in 2021 was $77,250, which compares favorably to the median wage for all occupations in the U.S.
Number five: prestige. When you pursue a career in accounting, you're entering a profession that's been around for a very long time and has a reputation for integrity.
Sure accounting doesn't have as much prestige as professions like medicine or law but it doesn't require as much training either.
Number six: work life balance. For many accounting jobs, you'll spend your days in an air-conditioned office working on a computer from 9:00 to 5:00.
Yes, there are exceptions. If you work in public accounting or if you run your own firm you'll have brutal work days during busy season.
But, most accountants have it pretty good compared to someone who installs roofing in 90 degree heat or an investment banker who works 105 hours every week.
Number seven: Working into old age.
Because accounting isn't that physically demanding, you can work into your golden years if you'd like.
I've known multiple accountants who worked well into their 70's.
Some people find that working part-time with a few clients or doing accounting on a volunteer basis for a non-profit
gives you a sense of purpose and keeps the mind sharp.
Number eight: improve your finances.
A career in accounting might help you better manage your personal finances.
You might become really good at budgeting or you might become really well informed about tax advantaged retirement plans
But get ready, because relatives and friends will frequently come to you for advice.
Number nine: insight for starting a business.
A career in accounting gives you an inside look at a company's profitability. You'll learn about payroll, procurement, taxes, and other aspects of running a business.
This information will come in handy if you ever decide to start your own business.
Number 10: you get to help people.
Depending on which area of accounting you go into, you might end up helping people prepare their taxes, helping small business owners,
or helping managers make better decisions. A lot of people find accounting overwhelming, so it's a great feeling to be able to help them out.
So, those are some benefits of pursuing a career in accounting. But, there are also some drawbacks you should be aware of.
First, you'll need a bachelor's degree. And second, your career options will be somewhat limited if you don't obtain a professional certification.
In the U.S. for example, you can't get certain accounting jobs unless you're a CPA.
And if you do manage to get your CPA and you want to work in public accounting, you'll have to deal with the inevitable stress of busy season.
Finally, accounting might not be a good fit for your personality and skill set. Some people hate accounting. So, how do you know if accounting is right for you?
Accounting might be a good fit if you enjoy working with spreadsheets, you like working with numbers,
you like the idea of entering a profession, you like helping people in businesses, you're good at learning lists of rules, and you're very detail-oriented.
But, you should probably avoid accounting if you hate spreadsheets, you don't like working from a computer, and you're creative.
Okay, I was partly joking about being creative. But, there's a little bit of truth to that.
If you're being creative with accounting, you might be breaking the law. Finally, you should know that the accounting profession is in a transition period right now.
Many people are saying that the role of accountants is changing, with the accountant becoming more of an advisor and less of a number cruncher.
This might excite you if you like technology data analytics, or consulting. But, it might terrify you if you like number crunching.
Now before you pursue a career in accounting, it's helpful to get some first-hand experience.
You might try taking an accounting course, shadowing an accountant, or doing an internship.
So, good luck! I hope you find a career that you find deeply rewarding and meaningful.
As long as you don't become a pet therapist or a life coach for cats, you should end up okay.