Accountant Job Satisfaction

While accounting may appear to be a career that lacks in overall employment satisfaction due to a perceived tediousness, there are studies and surveys that suggest that crunching numbers may be more fulfilling than individuals may speculate.

According to a U.S. News and World Report annual 100 Best Business Jobs of 2013 survey the top five jobs based on data provided by the U.S Bureau of Labor and Statistics (BLS) are:

1.  Market Research Analyst
2.  Financial Adviser
3.  Accountant
4.  Compliance Officer
5.  Bookkeeping, Accounting, & Audit Clerk

BLS data further shows that the median pay for accountants is around $61,690 (2010) or $29.66 per hour and that the number of accountant jobs in 2010 was 1,216,900. An employment change for 2010-2020 shows that an additional 190,700 are expected to be added for a total growth rate of 15.7 percent.

Are Accountants Relatively Satisfied with their Career?

Based on the BLS and US News information, one would believe that being an accountant is a very good career choice that pays well and offers stability and opportunities for growth. The role of the

accountant is important one, particularly after this country's recent flirtation with economic disaster and the need for the books and records of corporations, banks and governments to better reflect what is being done based on substantiated, not phantom, accounting methods and practices.

The existence of five big and four narrow traits determined the career satisfaction of an accountant. These traits (by "big" and "narrow") are:

Five Big Traits of Accountants

1.  Agreeableness/Teamwork
2.  Conscientiousness
3.  Emotional Stability
4.  Extraversion, and
5.  Openness

Four Narrow Traits of Accountants

1.  Assertiveness
2.  Customer-Service Orientation
3.  Optimism, and
4.  Work Drive

This suggests that the need for new accountants in light of the Bureau of Labor and Statistics projection of nearly 200,000 new accountants for the profession by 2020 requires recruiters to focus on those individuals in possession of the above traits.

Big Five Personality Traits as a Predictor of Accounting Career Satisfaction

Personality tests have been administered by human resources professional, such as the well-known Meyers-Briggs Type Indicator (MPTI) as a way to assess ability and determine if a candidate will fit in the work environment. The big five traits are an adaptation of standard personality tests applicable to the workplace. Of the five big traits, emotional stability, which relates to a person's emotional state on the job and their ability to adjust to their surroundings and function, especially when faced with stress and pressure, had the highest correlation to career satisfaction for accountants.

In addition to a high pay rate, accountants are also equipped with a steady employment rate that is expected to increase in the coming years. In an economy with an uncertain outlook, accountants and other similar positions are afforded job security rather than high unemployment rates. These factors, combined with personalities that function well under the conditions required for the position, are reasons that accountants have a high career satisfaction.

Ray Pilkington is a freelance writer based in Biloxi, Mississippi who concentrates his writing career on personal finance, taxation, tax reform, savings, economic development and other related topics; to learn more about taxation view the following information on R&R Income Tax.

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What Math Must an Accountant Master?

Since accountants are responsible for recording and analyzing various business operations, they must master mathematical skills that range from basic computation to depreciation formulas. Although knowledge of algebra is helpful, it is not necessary. Mathematical skills needed by accountants to pass the CPA examination are learned in the various accounting classes.

The Work of Certified Public Accountants

The work of the CPA is essential in every business and government entity. They audit, analyze, and compute taxes and give advice to businesses, governments, and individuals that conduct business in the United States. They use ratios, percentages, and comparisons to determine the entity’s financial position and advise management about the best course of action to improve their financial position. Before engaging in work as a CPA, candidates must pass a state examination.

Sections of the CPA Exam

The four sections of the CPA examination are auditing, business environment and concepts, regulation, and financial accounting. You may choose the order in which you take the sections, but you must successfully pass all four sections within 18 months.

Noting the various sections of the CPA examination, you may conclude that the only section requiring mathematics is the financial and recording section. The other sections test the candidate’s knowledge of law, ethics, and business strategy.

Financial Accounting and Reporting

This section contains material learned in college accounting classes from basic accounting through cost/management accounting. In addition, governmental, nongovernmental, and not-for-profit accounting material is covered. Financial statements, typical business transactions, and accounting concepts are covered.

A class in business mathematics is sufficient to prepare the CPA candidate to pass the examination. For example, the successful candidate knows that current assets divided by current liabilities yields the current ratio. The ability to interpret the significance of the ratio distinguishes the quality of the accountants.

Comparing Financial Statements

The accountant compares income statements and balance sheets to determine what the business entity has done during the past years. The difference between each asset, liability, and equity account balance shows the increase or decrease of the account between the years. The accountant may divide the total into the individual accounts to determine the percentage for each account. A basic business mathematics class prepares the accountant for making these computations.

Cost Accounting

Regardless of the system used, the accountant uses basic mathematical skills for cost accounting. Addition and subtraction are needed to determine inventory values, and division is used to determine unit cost. The desired profit is determined and is computed using basic mathematical skills.

Taxes and Payroll

Basic mathematical skills are used to compute depreciation, taxes, and payrolls. The IRS has determined the methods used to compute depreciation and payroll taxes. In addition, the IRS also provides charts to determine the amount of depreciation for each year of the asset’s life.

 Industry Standards

The CPA compares the various ratios and financial statements with the industry standards. By making these comparisons, the accountant will know how well the entity is doing. He or she will be able to determine what the entity needs to do to improve its position in the industry.

Conclusion

The work of the CPA requires an analytical mind to analyze financial statements and other reports. The mathematical skills necessary to complete these reports require basic mathematics.


Robert Penny writes on education, accountancy, mathematics, higher learning and other kindred subjects. Those curious about accounting jobs can learn a great deal more about accounting jobs with moneyjobs.com.

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