As a CPA (or soon to be CPA), there are no limits to the career opportunities available to you...from public practice to business/industry to government, not-for-profit, and education.

Public Practice

In public accounting, the CPA serves many clients as an objective outsider or in an advisory capacity. Currently, there are more than 350,000 public CPAs in the United States, working in companies ranging from small, local accounting practices to large international CPA firms. Public accounting services include, but are not limited to, the areas listed below:

Auditing

Auditing is one of the most important and best known services provided by CPAs in public practice. To better protect consumers and investors, the Securities and Exchange Commission (SEC) requires every publicly-held company to issue an annual financial statement. These financial statements are examined by an independent CPA and the results are referred to as an "audit." The CPA's role as an auditor is to examine a company's financial statements in order to assure stockholders and other financial statement users that a company's financial position is reported fairly.

Although privately-held companies are not required to have annual audits, many do so anyway. Privately-held companies that do not undergo an annual audit often engage CPAs to conduct a "review" or "compilation" instead. Both involve an examination of a company's financial statements, although a review contains less assurance than an audit, and a compilation contains no assurance.

Assurance Services

Assurance services is defined as services provided by a CPA that improve the quality of information, or its context, for decision makers. Such information can be financial or non-financial, about past events or conditions or about on-going processes or systems. It also can be direct information about a product or indirect information about someone else's assertion about a product. Assurance services allows the CPA to use his/her analytical and information-processing expertise in a new way. Based on market research, everyone from business owners to ordinary consumers can find value from CPAs who provide these types of services. Electronic commerce, elder care, comprehensive risk assessment, entity performance measurement and information systems quality assessment are just a few examples of assurance services areas.

Environmental Accounting

As businesses take a greater interest in environmental issues, CPAs have been getting involved in everything from environmental compliance audits and systems and procedures audits to handling claims and disputes. Utilities, manufacturers, and chemical companies are particularly affected by environmental issues. As a result, companies in these fields have increasingly turned to CPAs to set up a preventive system to ensure compliance and avoid future claims or disputes, or to provide assistance once legal implications have arisen.

Forensic Accounting

Also known as an investigative accountant or fraud auditor, the forensic accountant searches for evidence of criminal conduct or assists in the determination of, or rebuttal of, claimed damages. Investigative accountants also are being called in to advise companies on whether to declare bankruptcy or take the necessary steps to remain solvent. In addition to investigative accounting, the forensic accountant also may be called upon in the legal field, assisting lawyers in the litigation process.

Information Technology Services

The growth in information technology has created many job opportunities for CPAs with strong computer skills. There is a tremendous need for professionals who can design and implement advanced systems to fit a company's specialized needs. CPAs skilled in software research and development (including multimedia technology) also are highly valued.

International Accounting

Cross-border transactions are becoming commonplace due in part to the dismantling of closed economies in Eastern Europe and Latin America, the passage of the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT), as well as economic growth in areas such as the Pacific Rim. Functional skills needed in a global economy include an understanding of international trade rules, accords, and laws, cross-border merger and acquisition issues, and foreign business customs, cultures, and procedures. Multilingual skills are also important (Spanish and French are especially desirable).

Consulting Services

CPAs often are requested by individuals, businesses, financial institutions, not-for-profit organizations and government agencies to offer objective advice and technical assistance about a variety of business situations. Some common consulting engagements might be computerizing a company's accounting and reporting function, projecting a company's growth using trend analysis techniques, implementing an internal control system, facilitating mergers and acquisitions, assisting with production and marketing techniques, and providing general suggestions on improving overall operating procedures. Other important growth areas, consulting CPAs are involved in include litigation support, business valuation, strategic planning, succession planning for family-owned businesses, compensation and benefit plan design. Consulting services provided by CPAs may range from brief discussions with clients in the form of consultations or may involve larger initiatives such as implementation, transaction or support services.

Personal Financial Planning

As personal financial planners, CPAs provide assistance to individuals and companies in identifying financial objectives and counseling on the risk, liquidity, management and tax characteristics of investments. Personal financial planning services include helping clients better manage their money through debt reduction and expense control, developing investment strategies and asset allocation plans, tax consulting, insurance analysis and planning, retirement planning, and minimizing estate and gift tax burdens.

Tax Advisory Services

With the ever-changing tax laws and the growing complexity of business, tax professionals are involved in everything from preparing tax returns to reorganizing a multinational company's domestic and foreign operations in a manner that takes into consideration such factors as U.S. and foreign taxes, cash investments, dividends, and economic growth.

The CPA tax specialist must deal with a variety of tax problems and opportunities in three primary areas of tax practice-tax consulting, tax compliance, and representation of clients before the Internal Revenue Service (IRS). In addition to supplying technical competence, the tax specialist must exercise good financial judgment and creativity in order to provide constructive solutions to complex tax problems. Therefore, a thorough understanding of the client's business, investment, and personal objectives is required, as well as a thorough understanding of the tax laws and their applications.

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Business and Industry

CPAs in business and industry work for companies ranging from family-owned businesses to Fortune 500 companies. They are considered strategic business partners of their organizations and work in a variety of different areas as noted below.

Financial Management

Under this broad category, CPAs are responsible for analyzing a company's future financing needs, making presentations to and negotiating with banks and other investors, and managing an organization's cash and investments.

Financial Reporting

The CPA is responsible for accumulating and verifying the data required for the preparation of financial statements. CPAs often are in charge of the design, implementation, and maintenance of the computer system used in the preparation of financial statements.

Internal Auditing

The CPA as internal auditor is responsible for providing an objective review of the company's financial and operating systems. He/she also may assist outside CPAs in their examination and evaluation of the company's financial statements. The internal auditor also functions as an in-house management consultant to senior management.

Management Accounting

CPAs working in management accounting are responsible for the accumulation, analysis and reporting of financial and non-financial data in a format and level of detail required by management for making business decisions. Management accountants may make recommendations on business policy, resource allocation, and business operations to improve financial performance.

Non-Financial Positions

CPAs are broad-based experts whose knowledge and skills are sought and valued by management in various non-financial positions. CPAs can succeed in business as top level managers, chief executive officers, and company presidents.

Tax Planning

CPAs are responsible for determining the company's liability to various taxing authorities for income tax, licenses, sales tax, property tax, and payroll tax. They analyze the effects of tax accounting alternatives and study laws and regulations to ensure correct application of new tax measures.

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Government

Like their counterparts in public accounting and industry, CPAs in government have responsibilities in the areas of auditing, financial reporting and management accounting. In addition, CPAs in government have the opportunity to evaluate the efficiency of government departments and agencies at the federal, state, and local levels as well as advise decision makers in the use of entity resources.

At the federal level, some examples of where CPAs work include the Federal Bureau of Investigation, the Internal Revenue Service, Department of the Treasury and the General Accounting Office. They may be involved in investigating white-collar crime, managing financial statement audits for government agencies, performing research and analysis on financial management issues, testifying before a legislative committee on an audit or on the impact of pending tax legislation.

At the state and local level, CPAs are involved in conducting financial, performance or compliance audits which may include analyzing a school district's ability to remain viable, the propriety of expenditures for constructing prisons, the effectiveness of the workers' compensation system, or the regulatory compliance of hazardous waste programs.

Below are some of the types of audits performed by CPAs in all levels of government:

• Performance auditing is an independent evaluation of an organization's operation with an eye towards making it work better, faster, and cheaper. Along with these streamlining efforts, a performance audit may also determine whether management is fulfilling its promises to the taxpayers by effectively providing services intended to meet its goals and objectives.

• Financial audits include financial statement and financial-related audits or reviews. The primary focus of a traditional financial statement audit is the examination and verification of information provided through an entity's financial statements. This may result in an opinion on the "fairness" of the information presented in the financial statements or determine whether the entity has adhered to specific federal and financial compliance requirements. These audits may involve a review of the internal controls over financial operations and typically result in a letter to management identifying any weaknesses and recommending corrective action.

• Compliance audits determine whether the organization is following provisions of laws, regulations and contractual grant or loan agreements. The purpose of compliance auditing is to identify instances of significant deviation from specific requirements and to seek corrective action.

• Investigative audits are performed as a result of reported allegations related to improper activities by government employees or agencies. The allegations are received mainly through a toll-free hotline for reporting fraud and abuse in government. An investigation may also result when auditors, while on another assignment, become aware of inappropriate or suspicious activity that may fall under the Reporting of Improper Governmental Activities Act.

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Not-For-Profit

CPAs in not-for-profit organizations provide the information these institutions need to determine that the benefits and services they provide do not exceed revenues. Whether a CPA is on the staff of a not-for-profit organization or serves in an advisory capacity, he or she can help the organization solve tax problems, set up an internal control system, budget resources, and prepare financial data for fund raising.

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Education

As accounting educators, CPAs are members of the faculties of colleges of business administration, professional schools of accountancy, graduate schools of business, and community colleges. As accounting faculty members, CPAs instruct students in areas such as auditing, financial accounting, taxation, cost and managerial accounting, professional ethics, as well as many other interesting areas. In addition to their teaching requirements, CPA educators conduct research to expand the body of accounting knowledge and author books and articles on accounting theory. Due to their research expertise, many educators also serve as business consultants to companies and firms as well as expert witnesses in litigation situations.

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Position Descriptions

CPAs and potential CPAs have a variety of career paths from which to choose. Within public accounting, you can work for any-size firm, ranging from a large, international CPA firm to a small local accounting practice. Within the firm, you can work in such areas as audit, tax, and management consulting. The same holds true in business and industry, where you can choose careers in companies of all sizes, working in diverse areas such as financial accounting and reporting, management accounting, financial analysis, and treasury/cash management. Within government, you can create a path to success at either the federal, state, or local level. Non-profit organizations and education also offer many diverse opportunities.

While the path to success varies for every individual, there are traditional routes that most people take to "get to the top." The following are descriptions of typical paths of progression within a large- and medium-size public accounting firm and company (accounting and finance positions). Keep in mind that these paths are simply examples and should not be interpreted as the sole way of reaching the top. Professionals who possess knowledge, experience, and expertise above and beyond typical accounting and financial technical skills are in the best position to excel in their careers.

Public Accounting

Staff Auditor (1-3 years)

Performs the detail work of a financial audit under the supervision of a Senior. Staff Auditors will often start to direct small audits at the two-year level.

Tax Staff (1-3 years)

Prepares tax returns, researches tax questions, and counsels clients on tax problems under the supervision of a Tax Senior and/or Tax Manager.

Management Services/Consulting Staff (1-3 years)

Provides a variety of consulting and management advisory services and reviews the integrity of client systems under the supervision of a Senior or Manager.

Senior Auditor (3-6 years)

Works under the general direction of an Audit Manager. Responsibilities include the direction of audit field work, assignment of detail work to Staff, and review of their working papers. Also prepares financial statements, develops corporate tax returns, and suggests improvements to internal controls.

Tax Senior (3-6 years)

Works under the general direction of a Tax Manager and/or Tax Partner. Prepares or reviews tax returns for individuals and organizations, researches tax questions, offers suggestions for tax planning, and studies law for potential tax savings.

Management Services/Consulting Senior (3-6 years)

Works under the general direction of a Manager and/or Partner. Performs and/or supervises detailed consulting assignments involving various functional areas (computing, personnel, marketing) within client organizations.

Audit Manager (6+ years)

Supervises Seniors and Staff. Responsible for audit program approval, personnel scheduling, audit working papers review, financial statement disclosure footnote approval, day-to-day client relationships, determination of billings for engagements, and training and evaluation of Staff and Seniors. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Tax Manager (6+ years)

Directs and reviews Staff and Senior Tax Staff, approves corporate tax returns prepared by Audit Staff, and is available to Audit Staff for consultation. Also performs tax planning and preparation for individuals, estates, trusts, and small businesses and researches unusual tax matters. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Management Services/Consulting Manager (6+ years)

Maintains direct contact with corporate personnel. Responsible for internal control procedures, operational control procedures, operational budgets, business financing, analyses of projects or departments, and a variety of special purpose studies. Achievement of this level is critical to long-term success within a CPA firm, since it is awarded only to those with Partner potential.

Partner

Level is coveted since only about 2 percent of all persons entering CPA firms will reach this plateau. The financial rewards are significant. The Partner normally purchases equity in the firm and therefore shares in all profits. Typically, a professional must be a CPA to become a Partner. In larger firms, an equivalent position of Principal is available to deserving specialists who are non-CPAs. An Audit, Tax, or Consulting Partner is typically responsible for overall client-related activities.

Senior Partner

Performs all the duties of a Partner. The achievement of Senior Partner is obtained as a result of longevity with a firm and expert handling of instrumental accounts. The title of Senior Partner may also be attained through participation as a member of the Executive Committee, which is responsible for developing the firm's policies, planning activities, or providing day-to-day management and administration of one or more branch offices or regions.

Corporate Accounting

Staff-Financial Accounting & Reporting (1-3 years)

Works under the direction of a Senior Accountant performing detailed work assignments in one or several of the following areas: receivables, payables, payroll, property, general ledger, and financial statements.

Staff-Management Accounting (1-3 years)

Works under the direction of a Senior or Manager in collecting detailed cost data. May be responsible for preliminary cost analyses and report preparation.

Staff-Tax Accounting (1-3 years)

Works under the direction of a Senior or Manager in preparing returns or various schedules for review.

Staff-Internal Audit (1-3 years)

Works under the direction of a Senior or Manager in conducting compliance audits and tests internal controls and information systems.

Senior-Financial Accounting & Reporting (3-6 years)

Supervises the work performed in one or more of the general accounting areas such as receivables, payables, or financial reporting. May also be responsible for special reports and analyses involving financial data.

Senior-Management Accounting (3-6 years)

Is typically responsible for a segment of the overall management accounting system and is often assigned special or project cost studies.

Senior-Tax Accounting (3-6 years)

Is responsible for one or more of the following areas: federal, state, and local income taxes; sales tax; property tax; or payroll tax.

Senior-Internal Audit (3-6 years)

Supervises the testing of internal control and accounting information systems. Frequently conducts statistical samples of document approval, performs special tests to uncover defalcations and performs operational audits for profit improvement recommendations.

Financial Accounting & Reporting Manager (6+ years)

Assists the Controller and is often charged with responsibility for one of the functional areas such as financial accounting or budgetary planning and control. Will coordinate and direct the work of personnel involved in detailed accounting entries, internal financial reporting, and financial statements.

Management Accounting Manager (6+ years)

Directs staff responsible for developing and modifying the management accounting system. Develops product costing techniques, institutes cost control measures, insures timely and accurate labor, material, and overhead reports, supervises the undertaking of special cost studies, and periodically reviews allocation of overhead costs.

Tax Manager (6+ years)

Reports to the Controller and directs the staff responsible for determining the organization's liability to various taxing authorities for income tax, licenses, sales tax, property tax, and payroll tax. Also analyzes the effect of tax accounting alternatives and studies laws and regulations to ensure correct application of new tax measures.

Internal Audit Manager (6+ years)

Directs the staff responsible for systematically sampling the adequacy and the reliability of the internal control systems. Makes recommendations for changes as needed, and ensures that company policies and procedures are followed and establishes the proper techniques to discover and prevent fraud. Also selects areas of concern for operational auditing.

Assistant Controller

Reports to the Controller and assists in the supervision of day-to-day collection and interpretation of accounting data. Oversees statutory and management reporting functions, though scope varies with firm size. Prepares detailed journal entries and account analyses. May assist in tax return and financial statement preparation.

Controller

Functions as the Chief Accounting Executive responsible for organizing, directing, and controlling the work of the accounting personnel in collecting, summarizing, and interpreting financial data for the use of management, creditors, investors, and taxing authorities. As a member of the top management team, helps develop forecasts for proposed projects of the organization, measures actual performance against operating plans and standards, and interprets the results of operations for all levels of management.

Chief Financial Officer (CFO)

Is typically designated Vice President--Finance. The CFO advises the President of the organization with respect to financial reporting, financial stability and liquidity, and financial growth. Directs and supervises the work of the Controller, Treasurer, and sometimes the Internal Auditing Manager. Other duties may include maintenance of relationships with stockholders, financial institutions, and the investment community. Frequently, the CFO is a member of the Board of Directors and/or the Executive Committee and as such, contributes to overall organization planning, policy development, and implementation.

Financial Management

Staff-Financial Planning/Analysis (1-3 years)

Works at the direction of a Senior or Manager in performing various financial or budget analyses. Assignments are in one area or several, including profit planning, capital expenditures, investments, cash flow budgeting, and acquisitions.

Staff-Cash Management (1-3 years)

Performs daily cash management functions such as covering checks. Assists in preparing cash flow reports and forecasts. Works with bank staff on various issues.

Staff-Credit Analysis (1-3 years)

Works under the direction of a Senior or Manager in collection activity and credit approval practices. Senior-Financial Planning/Analysis (3-6 years) supervises the staff in performing financial/economic analyses of new projects and analyses of merger and corporate growth policies.

Treasury Operations Analyst (3-6 years)

Assists manager in analyzing the investment market and cash position of company. Prepares detailed cash flow reports and forecasts for company.

Senior-Credit Analysis (3-6 years)

Supervises in collection follow-up, operations, management of credit approval practices and analyses of collection/audit activity.

Manager-Financial Planning/Analysis (6+ years)

Directs the staff responsible for performing analyses in several functional areas including profit planning, capital expenditures, acquisitions, and budgeting.

Assistant Treasurer (6+ years)

Directs the staff in cash management activities including forecasting and investing. Primary contact for banking relations issues. Analyzes the investment portfolio and market to determine the most beneficial cash position for the company.

Manager-Credit Analysis (6+ years)

Directs the staff in collection follow-up, operations and management of credit approval practices. Provides detailed analyses of collection/audit activity to upper management. Sets standards to be followed in granting credit and collecting.

Treasurer

Directs the functions dealing largely with the receipt, disbursement, and protection of cash, the preservation of company assets, and the investment of surplus funds or pension and trust funds. Determines the optimal cash position for the organization and sets short-term investment policies. Governs overall credit policy, negotiates loans, arranges insurance coverage, and maintains banking relationships.

Chief Financial Officer (CFO)

Is typically designated Vice President--Finance. The CFO advises the President of the organization with respect to financial reporting, financial stability and liquidity, and financial growth. Directs and supervises the work of the Controller, Treasurer, and sometimes the Internal Auditing Manager. Other duties may include maintenance of relationships with stockholders, financial institutions, and the investment community. Frequently, the CFO is a member of the Board of Directors and/or the Executive Committee and as such, contributes to overall organization planning, policy development, and implementation.

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(SOURCE: Accounting & Finance Salary Survey and Career Planning Guide, SourceFinance)