Financial accounting is a specialty focused on reporting a company's financial status. Financial accountants organize financial data, create statements, and communicate information to executives and stakeholders. Financial accountants may also oversee audits and contribute to tax planning and financial strategy.

Careers in financial accounting require strong accounting, auditing, finance, and management skills. Earning an accounting degree is the first step in becoming a financial accountant. Our guide offers an overview of how to become a financial accountant, including education, experience, and certification requirements.

What Is Financial Accounting's Career Path?

Required Education for a Financial Accountant

Financial accountants need a bachelor's degree to qualify for entry-level careers. While an associate degree can lead to roles such as accounting clerk or financial clerk, accountants must complete a four-year college degree.

What major should financial accountants choose? Most colleges do not offer a financial accounting major. However, earning a bachelor's in accounting builds the accounting skills necessary for careers in financial accounting. Undergrads can consider choosing financial accounting or finance electives to prepare for the workforce.

Prospective financial accountants can also enter the field with a bachelor's degree in business, finance, or a related field. Students who take this path should add upper-division accounting classes to their plan of study.

Financial accountants can advance their careers with a master's degree. Accounting graduate programs strengthen specialized accounting skills, preparing learners for focused career paths. In addition, a master's degree helps financial accountants meet the educational requirements for a CPA license or pursue leadership roles in the field.

Required Credentials for Financial Accountants

While this career path does not typically require licensure or certification, it can benefit some financial accountants.

Financial accountants who work in taxation-related roles may benefit from pursuing CPA certification. The requirements for a CPA license vary by state. In many states, however, candidates must complete a bachelor's degree plus 30 college-level credits. CPAs also pass the four-part Uniform CPA Examination and meet their state's experience requirements. After meeting the requirements set by their state's board of accountancy, candidates earn a CPA license.

Other popular certifications include the CMA credential. This certification showcases the financial planning and analysis skills required by financial accounting careers. CMAs need a bachelor's degree, two years of experience, and passing an exam.

Financial accountants can also consider becoming CFAs. This credential requires expertise in accounting, financial analysis, and portfolio management. CFAs typically need a bachelor's degree, two years of relevant work experience, and the completion of a test.

After earning a license or certification, financial accountants must maintain their credential. In addition to renewing regularly, accountants may also need to meet continuing education requirements.

Learn More About Certifications:

• CPA certification
• CMA certification
• CFA certification

Optional Certifications and Degrees

Accountants interested in moving into financial accounting or financial accountants who want to advance their careers can consider optional certifications and education. For example, earning a graduate certificate in financial accounting, accounting data analytics, or auditing can help professionals add specialized skills to their resume.

Financial accountants can also consider certifications such as:

• Certified Internal Auditor: CIAs specialize in internal auditing and risk management.
• This certification validates expertise in internal auditing, risk management, and governance.
• Certified Financial Planner: CFPs demonstrate expertise in personal financial planning and advising.
• Certified Fraud Examiner: CFEs specialize in fraud prevention and detection.

Required Experience for a Financial Accountant

Gaining experience as a junior or staff accountant can prepare professionals for financial accounting roles. Prospective financial accountants may gain 1-3 years of experience before moving into financial accounting job titles. This experience also prepares financial accountants for professional certifications.

Accounting students can begin gaining professional experience while in college. Completing an accounting internship or practicum builds core skills and a network. Other entry-level roles, such as financial clerk or accounting clerk, can strengthen important skills before prospective financial accountants complete their bachelor's degree.

Should I Become a Financial Accountant?

If you're interested in corporate accounting careers that require strong financial skills, becoming a financial accountant could be a good fit. With experience as a financial accountant, you can also transition into financial planner or controller roles.

When deciding on an accounting specialty, take upper-division accounting classes in areas such as financial accounting, managerial accounting, and forensic accounting to determine your interests.

With accounting experience, you can pursue various career paths in accounting and finance. Financial accounting knowledge can transition into related fields such as management accounting or public accounting. Accountants in the finance and insurance industry earn a higher median salary than those in other industries, according to the Bureau of Labor Statistics (BLS).

The Job Hunt

Start thinking about your job hunt early. During college, attend job fairs, look for internship opportunities, and build a network that includes mentors and professionals in the field. Consider joining a professional organization like the American Institute of CPAs (AICPA), which offers networking opportunities and scholarships for accounting students. Professional associations may also offer discount student memberships.

After college, continue investing in your network and professional development. Attending conferences and connecting with accounting professionals in your area can pay off. Consider these resources:

• GFOA Job Board: The Government Finance Officers Association has a job board that lists government accounting jobs, including financial accounting and related positions.
• AICPA Global Career Hub: Financial accountants who are CPAs benefit from the AICPA Global Career Hub, which lists CPA jobs.
• AAA Career Center: The American Accounting Association, an academic association for accountants, lists accounting jobs with an emphasis on academic careers.
• ANAFP Job Board: Financial accountants interested in nonprofit accounting can find opportunities on the ANAFP job board.

Upward Mobility

Financial accountants who want to increase their earning potential and advance their career can move into higher-paying related roles. For example, financial managers earn a median pay of $161,700, according to May 2024 BLS data. Many of these roles also report strong demand, with financial managers seeing 15% projected job growth from 2024-34.

• Financial Manager: Financial managers create financial reports, oversee investment strategies, and evaluate the financial health of an organization. These careers typically require at least five years of experience in accounting or finance.
• Financial Controller: Financial controllers oversee financial reporting and forecasting, including income statements and balance sheets. They may also manage the accounting or auditing department. These roles typically require several years of accounting experience.
• Chief Financial Officer: CFOs are the top finance officers in an organization. They oversee the company's financial health. CFOs generally bring extensive experience in accounting or finance.

Frequently Asked Questions

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