Pros and Cons of Accounting
Accounting profession has many unique roles within the business world. However, this career has pros and cons, as with any job. The uses of an accountant are diverse and limitless, but it requires a strong work ethic from the individual to fulfill these various responsibilities. This article will discuss the pros and cons of a career in accounting.
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Pros of Accounting
There are many positive aspects of accounting. These advantages include the following:
1. Job security
Every business needs expert help with its finances. This is where the accountant comes into play. Accountants are needed, whether you own a small business or a large corporation. This job will always be around if businesses need assistance with their finances.
You can find accountants and auditors in other industries such as real estate, nonprofits, and government agencies. Therefore as an accountant, you are not limited to working in a specific field. Some accounting certifications besides your accounting degree will be an added advantage in getting you hired in a competitive market.
This is because its different specializations require unique skills and knowledge so that an accountant can be equally useful for small businesses and the most important enterprises.
2. Many career options
Being a CPA or an auditor, having accounting certifications can open doors to many other careers in the accounting field. For example, an accountant can work in various industries by taking courses that pertain to their future career goals. You can become an auditor, accountant, and CPA depending on your specialization.
Accountants have many career options, which lead them to new opportunities for further education and employment. Some job options include company accounts payable and receivable manager, internal audit manager, assistant controller, and more.
3. Knowledge of business
Accounting is the expertise that most business owners and managers need to run a successful company. Undoubtedly, this includes being able to track revenue and expenses, report profits, and know how to make effective financial decisions. This is also how business owners keep abreast of changing economic conditions as they affect their business.
In addition to these duties, many businesses require accountants’ substantial written and verbal communication skills and organizational abilities. To have any career as an accountant, you must be able to express yourself well and organize your job’s tasks and responsibilities. This can be done by developing career goals as an accountant.
4. Good pay
According to the U. S. Bureau of Labor Statistics, accountants and auditors earned a median annual salary of $75,420 in 2021. The bottom 10 percent of accountants and auditors made less than $35,210, while the top 10 percent earned more than $114,820.
The salary of an accountant depends on their years of experience, type of employer, and the area they live in. For example, a company that pays its employees with its profits would pay its accountants more than a company that pays regular wages. Also, accountants with degrees from more prestigious colleges will likely get paid better than those with diplomas from a local community college.
5. Good benefits
Accountants and auditors also have access to health insurance and dental insurance. According to the Bureau of Labor Statistics, accountants/auditors have access to a wide range of benefits such as retirement plans and various programs for long-term medical care.
Accountants and auditors are considered “public” employees. As a result, they participate in public sector employee benefits plans such as accrual-based pension plans and tax-sheltered annuities (TSA). In addition, accountants and auditors have access to voluntary benefits plans. It all depends on the type of accounting career you want to pursue.
6. Ability to open your own business
You can open your firm and hire many employees as an accountant or business owners. This is a great way to become a partner in a large firm or manage your own business. Many accounting firms exist, including public practice, government, and industry.
Most accountants prefer the stable environment of working for someone else rather than taking the risk of opening their firm. However, others enjoy starting their businesses where they have the autonomy to make decisions they cannot when working for someone else.
7. Better management of finances
Many accountants and auditors work with business owners and small-to-medium-sized businesses. They can help them manage their finances, which helps save money on taxes and allows them to control their business operations more effectively.
The objective of being an accountant is to support other professionals in all facets of the business and help them keep their financial records in order. This is important because it allows these professionals to make better decisions, e.g., which new product to bring to market, based on factual information and not on false assumptions.
8. Opportunities for travel
Many accountants and auditors enjoy traveling. This is because they often need to travel to other cities, states, or countries to give presentations. As an accountant or auditor, you are responsible for your clients and their employees. Therefore, you must be able to travel and work on a project that is important to them. This will allow you to experience different cultures, meet new people and expand your career options.
Furthermore, these professionals also enjoy traveling with clients and other companies to meet with them and discuss problems regarding the financial condition of their business.
9. Better chances of promotion
Being a successful accountant will give you more opportunities to become a manager or executive in your organization. This is because accountants often have a lot of knowledge about the financial health of different companies or industries, which gives them an advantage when managing their jobs and those of other employees. Managers and executives can then entrust accountants with even greater responsibilities and tasks.
10. Positive public image
Accountants and auditors have a positive public image. This is because accountants and auditors are highly respected in the financial sector for their knowledge and abilities. As a result, accountants can often work with prestigious business people and make great recommendations to help their clients improve their financial health. Accountants also tend to be more financially literate compared to other labor market professionals.
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Cons of Accounting
There are many disadvantages to becoming an accountant. These include the following:
1. Job instability
The nature of the profession is that it depends on career progression. However, accountants and auditors have less job stability than other professionals in the labor market, such as lawyers and doctors. As a result, accountants and auditors must be able to handle different situations, such as not being able to file their taxes on time or not having enough money in their retirement funds.
Accountants and auditors also live in a very competitive environment. Therefore, they must be able to handle failure and criticism from clients, colleagues, or even their supervisors.
2. Low growth potential
Accountants and auditors are not as likely to move up the career ladder compared to other professionals in the labor market, such as doctors, attorneys, and engineers. Because of this, accountants and auditors may find it difficult to be promoted to a higher level. As a result, they may not receive a raise when advertised or get demoted since they failed to perform as well as others.
3. Low salaries
Accountants and auditors do not get paid very much compared to what doctors, attorneys, engineers, and other professionals in the labor market receive. As a result, accountants and auditors have fewer opportunities to save up for retirement or take additional years off work rather than taking lower-paying jobs.
4. Lack of recognition
Accountants and auditors do not receive the same recognition as doctors, attorneys, and other professionals in the labor market. They are not very likely to be recognized for their work, such as being doctors who receive awards for their contributions to their field. As a result, accountants and auditors may get more discouraged about their jobs since they don’t receive any positive feedback from others about their work.
5. Lack of career progression
Accountants and auditors do not get the same career progression as other professionals, such as doctors. This is because accountants and auditors are not as likely to be promoted by their employers. They will likely be in the same position for many years before getting promoted. As a result, accountants and auditors may feel frustrated after firms have employed them for some time because they do not receive any higher-paying positions in their organization.
6. High competition
There is a high level of competition among accountants and auditors. As a result, they must perform well in their job to be promoted or to receive a raise. However, because accountants and auditors work in a very competitive environment, many are under great pressure at work or may feel inadequate.
7. Work stress
Accountants and auditors usually work for long hours. This is because they are trying to keep up with their bills and debts. However, this does not mean accountants and auditors are better off financially since they are still overwhelmed by their financial obligations. Because of this, many accountants experience a great deal of stress from working long hours.
8. Physical exhaustion
Accountants and auditors must be able to sit for long hours. They may have to make phone calls, transcribe documents, read reports or work on the computer for many hours. As a result, they may get physically exhausted and unable to perform their duties well.
Working in an office environment may also give accountants and auditors less exercise than other professionals such as doctors and engineers who do physical labor daily.
9. Lack of work-life balance
Because accountants and auditors must spend long hours at work, they may not have time to spend with their families. This is especially true if they are single or married but don’t have children yet. They may also not be able to make time for hobbies or other recreational activities as much. As a result, accountants and auditors may feel they don’t have a good work-life balance.
10. Errors and frauds
Accountants and auditors are less likely to make mistakes in their jobs. This is because they are highly trained professionals with experience in the field. However, this does not mean that there is no room for error. Most accountants and auditors will make mistakes on an occasional basis. As a result, they get accused of making mistakes that they didn’t actually do when they do so and receive penalties or even be fired from their jobs if this happens often enough.
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While accountants and auditors may have positive and negative aspects to their jobs, they have more favorable aspects. As a result, they should be able to keep up with their life’s expenses while performing their jobs well. Other professionals in the labor market also respect accountants and auditors. They are very likely to find a good job if they successfully complete their career training.