By Cody Crusenberry June 17 2017 COLL100 I108Spr 17

Why I chose this Topic

I am studying for a degree in accounting

I want to one day start a small business

Accounting is an interesting career path

Accounting is keeping track of a companies

business transactions.
An estimated 20 to 50 percent of
students enter college as
undecided and an
(Gordon, 1995)

estimated 75 percent of students

change their major at least once
before graduation (Gordon, 1995)
WHAT TO EXPECT OUT OF A
CAREER IN ACCOUNTING
 Objectives
What does an accountant do

The use of technology

Different accounting jobs

Expected salaries of accounting jobs

Opportunities for advancement

WHAT DOES AN ACCOUNTANT
DO?
 Basic Principles of Accounting
Accounting- The system of recording and
summarizing business and financial
transactions and analyzing, verifying, and
reporting the results. (Definition of accounting, n.d.)
 Cash Flow Statement
Tracks use of liquid assets (Cash)
Operating-cash spent and earned in day to day
running of the business
Financing-repaying of dividends to
shareholders
Investment-Cash spent on assets that are not
inventory
(Piper, 2015)
 Profit and Loss Statement

Income-Expense=Net Profit/Loss
The Value of Accounting
 Direct Effects of Accounting on
Central Banks

Monetary Policy

Financial Stability

Banking Supervision

Schwarz, Karakitsos, Merriman and Studener (2015)

 Monetary Policy
In a study of 87 central banks, Ize (2006) finds that, in
countries where the central bank has negative structural
profits, gross domestic product (GDP) per capita tends to be
lower and inflation tends to be higher compared with
countries where the central bank is financially strong
Schwarz et al. (2015)

This is the link between the financial strength of a central

bank and monetary policy
 Monetary Policy
A study was conducted simulating a central
bank using 2 different accounting frameworks

1) the recognition of unrealised gains as

income and the bar on creating provisions
against general risks Schwarz et al. (2015)
2) A system that doesnt count unrealized
gains as income and allows provisions to be
made against general risk.
 Monetary Policy

Furthermore, both loss coverage from profit

retention scenarios result in a substantial
reduction of the financial buffers under IFRS,
but only a marginal one under the Eurosystem
accounting framework. Schwarz et al. (2015)

Where IFRS is accounting system (1)

EuroSystem is accounting system (2)
 What is it Like to be an Accountant
Not necessarily sitting at a computer all day

Interacting with clients

(Fontinelle, 2017).

Maintaining inventories

Hectic tax season

Possibly work from home

(Ruesink, 2015)
 Stress and Workload
Public Accounting is considered a high stress profession

Lower job position = Higher stress

One thousand individuals were randomly selected from the AICPA's membership
directory for inclusion in the survey. Replies were received from 570 accountants.
The study examined the following 8 work-related sources of stress: 1. role
ambiguity, 2. role conflict, 3. overload-quantitative, 4. overload-qualitative, 5.
career progress, 6. responsibility for people, 7. time pressures, and 8. job scope.
Several broad conclusions can be drawn from this research. One such conclusion is
that within the public accounting profession, the working environment of national
firms is more stressful than that of regional and local firms, and auditing is the
most stressful area of specialization. Sanders, Fulks, and Knoblett (1995).

59 hours a week during tax season

43 hours a week the rest of the year

Technology
 Popular Accounting Software

There are over a hundred different types of

accounting software on the market

Lists and evaluates all the

(Top 20 Accounting, 2017)

different accounting software.

 QuickBooks
The most popular and well known accounting
software for small businesses is Intuit
Quickbooks
(Top 20 Accounting, 2017)

Quickbooks will allow you to keep track of

your accounts payable, accounts receivable,
billing, invoicing, manage your cash,
collections, and fixed asset management
 Up and Coming Technology

4/10 utilize the cloud to access there books

anywhere

The ability to scan hand written papers into

computer text.
(Marder, 2016)
Investing in Information Technology
for Accounting Firm Growth

Specifically, we estimated productivity growth and

four contributing components in the public accounting
industry using balanced panel data from 51 public
accounting firms in Taiwan from 1993 to 2003. We
found that, for the full sample, the mean productivity
growth during the eleven-year period was 51.1
percent, of which 0.2 percent came from efficiency
change, 6.3 percent from technical progress, 30.2
percent from IT capital accumulation, and 14.3 percent
from human capital accumulation. (Chang, Chen, Duh, and Li, 2011)
 The Different Types of Accounting
Managerial

Financial

Tax

(Types of accounting, N. D.)

 Managerial Accounting
Detailed and accurate as possible

Shows a business where it stands financially

Allows business owners and executives to

make sound decisions
(Types of accounting, N. D.)
 Financial Accounting
Is for the shareholders and prospective shareholders

Tries to make the company look good

Made public to allow investors some insight before

investing

The financial statements put forth by the company are

regulated by General Accepted Accounting Procedures
(GAAP) to ensure accuracy
(Types of accounting, N. D.)
 Tax Accounting
Used to find a companies tax liability

Used to find possible deductions or tax credits a

company can receive

Tries to make the company look bad

Must adhere to federal, state, and local tax laws

(Types of accounting, N. D.)
 Other Types of Accounting
Forensic

Government

Project
(Types of accounting, N. D.)
 Accounting Positions
Accountants have a bachelors Degree

There are entry level positions in the accounting field that

require an associates degree or high school diploma

Some high level or senior level position will require a

masters degree

A doctorates will allow you to be a professor of accounting

List of accounting jobs

(40 Top-paying, 2017)
 Different Sectors
Medical
Aviation
Manufacturing
IT
Service
Music
Film
Agriculture
Etc.
 Salary
Small sized firm $39,750-$52,750

Medium sized firm $43,250-58,000

Senior accountants $54,250 to $71,250

2016 U.S. Bureau of Labor Statistics median

salary for all accountants is $55,000 to $74,999
(Occupation finder,2015)
 Job Outlook
Projected growth rate of 10%-19% from 2014
to 2024

An estimated 50,000 or more jobs from 2014

to 2024
(Occupation finder,2015)
 Career Advancement
Additional certifications

Possible career progression

Starting a business
 Certification
Certified Public Accountant
Administered by AICPA
Lets you sell you services to the public to prepare their taxes

Certified Management Accountant

Administered by IMA
Shows you can make management decisions in a business

Certified Internal Auditor

Administered by IIA

Certified Fraud Examiner

Able to investigate fraud and testify in court

Certified Forensic Accountant

Administered by ACFEI
Use auditing and investigating skills
(Boyd, Boyd, & Berry, 2009)
 Possible Career Progression
Accounting clerk
no degree to associates
Management Accounting
Work to become a department head
Controller
Or Public Accountant
Work for a public accounting firm
Become a senior member
Become a partner
Start your own business
Or Finance
Usually a Masters degree and additional certification
Become a financial analyst
Get promoted to chief financial analyst or become a fund manager
(Christenson, n.d.)
Conclusion
 References

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