It may be old news, but the accounting profession is facing a shortage of accountants. Some attribute this decline in interest partly to the perception that the industry is boring and that it's too specialized. Having teenage children, I can easily imagine that the younger generations perceive accountants as sitting at a desk, crunching numbers for 70 hours a week. So, while it's not realistic to present the typical accountant as Ben Affleck in the movie, "The Accountant," the younger generations need to know that accounting can be fun and there is a wide range of paths one can take in accounting. Accordingly, it is critical for those studying business in college to understand how diverse and dynamic the accounting industry can be.
I began my accounting career as an internal auditor. This path of accounting allowed me to review and understand the organization's business procedures while making sure the various departments were operating in compliance with policies, procedures, and the appropriate laws. After examining financial data within an organization, an internal auditor makes recommendations to improve risk management procedures, internal controls, and governance processes. In 2002, Worldcom's internal audit department discovered over $3.8 billion of fraudulent balance sheet entries.
I then took my internal audit experience and transitioned to a Big Four accounting firm performing public audits. This experience afforded me the opportunity to connect with business owners and gain experience reading and understanding financial statements—a skill set that is relevant and beneficial in any area of business. After years of honing my technical accounting and auditing skills, I was able to use that experience to dive into the dynamic and fascinating area of forensic accounting.
Forensic accountants use their training in accounting and analytical skills to investigate financial transactions. This is a fascinating field in which I have spent the last 24 years of my career. As a forensic accountant, I use the skills and training I learned as an internal auditor as well as in public auditing to review and analyze financial transactions, assess the application of accounting principles and auditing standards, and perform various financial analyses, including the calculation of damages. Forensic accountants can serve as consultants and experts in legal matters that deal with financial fraud or embezzlement. This career path is ideal if you find the legal industry and legal proceedings intriguing – and maybe have even considered attending law school – and wish to establish connections with lawyers. Forensic accounting has many engaging and exciting paths – for example, performing economic damage calculations, finding the money trail, valuing assets, and assisting in marital dissolution matters.
Accountants can also serve as consultants and advisors. This area of accounting may be ideal for individuals who enjoy studying and becoming engrossed in complicated tax or accounting concepts or have specific industry experience. Examples of such consulting roles can include assisting organizations in implementing new accounting rules, developing strategic approaches to federal and state tax regulations, tax planning, working through complex international tax situations, and assisting with capital markets transactions such as IPO or debt or equity offerings.
Others who have developed training as an accountant may be interested in mergers and acquisitions. This type of consulting includes strategic development, assessment of the financial wherewithal of the companies involved, performing due diligence, assessing potential merger synergies, and an all-around high level of business expertise. The pressure, including the timing of mergers and acquisitions, can be intense. However, this may be the exact rush that a fierce, highly skilled accountant seeks.
Then, some accountants specialize exclusively in data analytics. Both in public accounting and during my earlier years as a forensic accountant, I recall spending hours adding hundreds of numbers and comparing financial data from one source to another. Today, data analytic accountants map out and reconcile this information in minutes. The data analytics field of accounting is continuing to grow. These accountants not only assist during audits, investigations, and forensic matters, but they are advisors to organizations that seek to monitor and analyze large, complex data sets for compliance and business process improvement. No more "crunching numbers" ...these accountants help simplify substantial amounts of data.
Related, for those accountants who are more technical and analytical and who may enjoy statistics, computer science, and information systems, there are IT accountants. IT accountants help develop and manage software systems to centralize, organize, access, and protect an organization's financial data. These systems then assist in identifying the organization's weak internal controls and risks and how to prevent and correct human error and increase efficiency. IT accountants also assist in implementing automation in accounting processes, which makes them easier and more efficient for auditors. Tasks performed by auditors that were once manual and time-consuming, such as data entry and reconciliation, have now been automated.
Accountants can also serve as corporate controllers responsible for all accounting-related activities of an organization. Controllers prepare budgets and investigate deficiencies, oversee financial reporting, maintain accounting records, develop controls to mitigate financial risk, ensure compliance with accounting principles and regulations, and assist external accountants. This path is ideal for those who want an overall broad-brush view and responsibility of an organization.
The accounting profession is continuing to change as the world changes. Long ago, there were days when an accountant was defined as purely an auditor or a tax preparer. I have shared with my son, who is in business school in college, that it is an exciting time to be working in the accounting industry, and accountants can follow a diverse range of paths.
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