Accountant

Key Takeaways
* Accountants record, review, and analyze financial transactions for individuals, businesses, governments, and non-profits.
* They support decision-making through reporting, forecasting, tax planning, audits, and cost analysis.
* Common certifications include CPA, CMA, and CIA; the CPA is the most widely recognized professional credential.
* Ethical standards and accounting frameworks (GAAP, IFRS) govern accountants’ work and legal responsibilities.

What is an accountant?

An accountant is a financial professional who records, organizes, analyzes, and reports financial information. Their work helps stakeholders evaluate performance, meet regulatory requirements, plan taxes, control costs, and forecast future financial outcomes.

Core duties

Accountants perform a range of tasks depending on their role and employer:
* Maintain and reconcile ledgers, journals, and financial records
* Prepare and analyze financial statements (balance sheet, income statement, cash flow)
* Conduct audits and internal controls reviews
* Prepare tax returns and advise on tax planning
* Create budgets, cost analyses, and financial forecasts
* Advise on financial efficiency, risk management, and compliance
* Support decision-making for projects, investments, and operational changes

Typical employers and work settings

Accountants work in public accounting firms, corporate accounting departments, government agencies, non-profits, and private practice. Roles vary from bookkeeping and tax preparation to specialized functions like forensic accounting, cost accounting, or financial auditing.

Skills and qualifications

Common qualifications and skills include:
* Bachelor’s degree in accounting, finance, or a related field
* Strong numerical, analytical, and problem-solving abilities
* Proficiency with accounting systems and spreadsheet tools
* Knowledge of tax rules, financial reporting standards, and regulatory requirements
* Attention to detail, integrity, and communication skills

Certifications and professional paths

Certifications enhance credibility and career prospects:
* CPA (Certified Public Accountant) — widely recognized in the U.S.; required for certain services such as auditing public companies and filing reports with regulators.
* CMA (Certified Management Accountant) — focuses on management accounting, strategic planning, and internal business decision-making.
* CIA (Certified Internal Auditor) — emphasizes internal audit practices and risk management.

CPA requirements typically include a relevant degree, specified accounting coursework, professional experience, and passing the Uniform CPA Examination administered through state boards.

Ethical standards and liability

Accountants must follow applicable accounting frameworks (GAAP in the U.S., IFRS in many other countries) and adhere to professional ethics. Licensed professionals, especially CPAs, have fiduciary duties to clients and face potential civil or regulatory liability for negligence, misrepresentation, fraud, or breach of contract.

Brief history

Accounting evolved as businesses became larger and more complex. Professional organizations and licensing emerged in the late 19th and early 20th centuries, and regulatory changes—particularly after financial crises—have increased the importance of accredited accountants and standardized financial reporting.

Compensation

Compensation varies by role, experience, location, and industry. Median pay for accountants in the U.S. is in the range of mid five-figure to low six-figure annual salaries, with specialized roles and senior positions earning more.

Accountant vs. CPA

• Accountant — may perform bookkeeping, reporting, budgeting, and tax work; a degree is commonly required but not always licensure.
• CPA — a licensed accountant who meets education and experience requirements and has passed the CPA exam; authorized to perform audits and other services that require licensure and subject to continuing education and stricter professional standards.

Bottom line

Accountants are essential to the financial health of organizations and individuals. They provide the records, analyses, and regulatory compliance needed for transparent reporting, informed decision-making, tax compliance, and long-term planning. Certification and strong ethical standards distinguish more advanced practitioners and expand the services they can offer.