Are you detail-oriented and analytical? Do you enjoy working with numbers and data? Enjoy solving problems? If this is you, a job in accounting or auditing may be the right match.
Accountants and auditors have a lot in common. They both often have accounting degrees, cross paths in the same firms, and make similar wages. Both accounting and auditing positions are crucial to keeping firms functioning—without them, organizations would be operating practically in the dark and susceptible to serious financial risks like fraud or a lack of sufficient cash on hand. With so many similarities and overlap, how do you decide which financial career path is suitable for you, and what’s the difference between them?
Keep reading to find out what makes accounting and auditing distinct.
Note: if you are an accounting student and need accounting assignment help, then you can get help from our experts.
What do accountants do?
Chances are you imagine an accountant sitting at a desk, gazing at a calculator or spreadsheet. While this depiction isn’t technically untrue, there are many accountants whose day-to-day looks completely different.
In general, an accountant’s duty is to track, record, and evaluate a company’s or individual’s money. This entails maintaining a diary of transactions, generating financial statements, completing tax forms, and much more.
Because there are so many different responsibilities that accountants accomplish, many specialize in only one. There are a multitude of career routes offered to accountants, including (but not limited to):
- Auditor
- Cost accountant
- Forensic accountant
- International accountant
- Nonprofit accountant
- Tax accountant
What do auditors do?
While accounting may be a broad career, auditors have a more precise emphasis. Technically, an auditor is a sort of accountant. Auditors are responsible for verifying companies’ financials. books, and paperwork for mistakes or fraud. This covers more than just math blunders and missed transactions, though.
Auditors must know the many sets of regulations, including the tax code and GAAP (generally accepted accounting standards), and when to apply each rule. Any publicly listed and regulated company—and many other firms outside of that group—follows GAAP, as their records must be standardized to qualify for loans or be traded on the stock market. When foreign company enters the picture, the auditor may need to comprehend additional accounting principles as suitable to other nations or firms.
How much do accountants and auditors make?
The Bureau of Labor Statistics (BLS) combines accountants and auditors together when giving wage information, given that both jobs have so much overlap. How much you make as an accountant or auditor depends on what you perform in the area and your expertise, although both pay fairly well.
According to the BLS, the 2021 median pay for accountants and auditors was $77,250 per year.
- Those earning in the least 10 percent make less than $47,970, while the highest-earning 10 percent earned more than $128,970.
- Employment of accountants and auditors is anticipated to expand by seven percent from 2020 to 2030, a pace on line with the national average growth prediction across all occupations.
- Accounting and auditing remain a reliable job sector that typically aligns with the overall health of an economy.
How can I become an accountant or auditor?
Auditors and accountants have comparable job trajectories. The usual entry-level education requirement is a bachelor’s degree. Accounting degrees contain a variety of courses to prepare you for numerous professional options.
The largest difference between being an accountant or auditor boils down to your choices. If you know you want to be an auditor, then focusing your time and study on auditing will assist in strengthening that specific skill set. Another alternative to add to your qualifications is to apply for auditing internships.
Where will accounting or auditing take you?
Despite the parallels between accounting and auditing, the two job paths offer unique charms. Auditors get to verify the work of accountants and be number detectives, identifying flaws and probable fraud. Auditors keep corporations and accountants honest. Meanwhile, accountants spend their days reporting on the revenues, costs, and cash flows of a firm or helping an individual manage their income. Both roles are vital to keep the commercial world working properly.
