Accountant and Auditor Career

Accountants and AuditorsAccountants compile, analyze, verify, and prepare financial records, including profit and loss statements, balance sheets, cost studies, and tax reports. Accountants may specialize in areas such as auditing, tax work, cost accounting, budgeting and control, or systems and procedures. Accountants also may specialize in a particular business or field; for example, agricultural accountants specialize in drawing up and analyz­ing financial statements for farmers and for farm equipment companies. Auditors examine and verify financial records to ensure that they are accurate, complete, and in compli­ance with federal laws. There are approximately 1.2 million accountants and auditors employed in the United States.

Accountant and Auditor Career History

Accounting records and bookkeeping methods have been used from early history to the present. Records discov­ered in Babylonia (modern-day Iraq) date back to 3600 B.C., and accounts were similarly kept by the Egyptians, Greeks, and Romans.

Modern accounting began with the technique of double-entry bookkeeping, which was developed in the 15th and 16th centuries by Luca Pacioli, an Italian math­ematician. After the industrial revolution, business grew more complex. As government and industrial institu­tions developed in the 19th and 20th centuries, accurate records and information were needed to assist in making decisions on economic and management policies.

The accounting profession in the United States dates back only to 1880, when English and Scottish investors began buying stock in American companies. To keep an eye on their investments, they sent over accountants who realized the great potential that existed in the accounting field and stayed on to establish their own businesses.

Federal legislation, such as the income tax in 1913 and the excess profits tax in 1917, helped cause an accounting boom that has made the profession instrumental to all business.

Accounting CareersAccountants have long been considered “bean coun­ters,” and their work has been written off by outsiders as routine and boring. However, their image, once associated with death, taxes, and bad news, is making a turnaround. Accountants now do much more than prepare financial statements and record business transactions. Technology now counts the “beans,” allowing accountants to analyze and interpret the results. Their work has expanded to encompass challenging and creative tasks such as com­puting costs and efficiency gains of new technologies, participating in strategies for mergers and acquisitions, supervising quality management, and designing and using information systems to track financial performance.

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