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Financial Accounting Career Information

Read about financial accounting degree programs and learn the types of roles financial accountants play.

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What Do Financial Accountants Do?

financial accountant giving a presentation

While management accountants help shape business strategy within a company, financial accountants are concerned with how a company's performance is represented to outside parties, as well as reporting information on profit, loss and cash flow to managers and shareholders.

Accurate financial accounting reports help potential investors and lenders decide whether to invest in a firm or lend a company money; they enable tax authorities to determine the appropriate amount of tax owed on profits; and they keep stakeholders within the business informed about its overall financial performance.

 
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Standards and Principles

Professionals in the financial accounting field usually follow the Generally Accepted Accounting Principles (GAAP) set by the Financial Accounting Standards Board (FASB). Reports such as balance sheets and income statements should adhere to these standards, so that there is consistency in reporting throughout an individual company's history as well as throughout the corporate world.

If your career interest lies in financial accounting, you may one day find yourself on the management team of a large corporation; however, financial accountants are found in organizations of every size. On a day-to-day basis, they take bookkeeping records and other business transactions and use that data to prepare four reports required by the GAAP:

  • The balance sheet
  • The income statement
  • The statement of owner's equity
  • The statement of cash flows 

In smaller companies, financial accountants may be involved in other areas of business management in addition to their accounting duties.

Financial Accounting Career Path

  Entry Level Mid Level Senior Level
Types of Roles
 Accountant, staff accountant, bookkeeper Financial accountant, senior accountant, senior financial analyst Financial controller, finance director, chief financial officer
Getting There
  • Bachelor's degree in accounting (Bachelor of Arts, Bachelor of Science, or Bachelor of Business Administration)
  • Knowledge of bookkeeping, accounts payable and receivable, and accounting software
  • CPA certification is required for any accountant working for a public company registered with the Securities and Exchange Commission (SEC)
  • All entry-level requirements
  • Strong communication and analytical skills
  • Up-to-date knowledge of financial regulations
  • At least a bachelor's degree in accounting or finance; an MBA degree can mean higher salaries and better opportunities
  • All mid-level requirements
  • Excellent managerial and interpersonal skills
  • High standards of integrity and accuracy
  • A bachelor's degree in accounting or finance is necessary; a graduate degree in finance such as an MBA is desirable
Description
  • Work under a senior accountant or manager
  • Check accuracy of business transactions and calculations
  • Perform routine accounting duties that produce the primary financial data used in accounting records and reports
  • Assist in preparing financial reports such as profit and loss statements
  • Collect and analyze data and prepare reports on a company's financial activities
  • Assist and direct junior financial accounting personnel
  • Prepare budgets, monthly statements, and special reports
  • Accountable to management; may advise managers about a company's finances or budget
  • Oversee all financial activities of the company
  • Hire, train and oversee staff
  • Ensure the company adheres to state and federal financial regulations and tax requirements
  • Produce high-level financial reports for management, stockholders and investors

* Depends on company size, specific job and location

 
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