Accounting is probably the most misunderstood but one of the most important professions in the world. The question “What do accountants do?” sounds simple. However, the answer is multi-dimensional, evolving and exciting. Accountants perform various functions ranging from being the financial manager of a small business to being the consultant of a billion-dollar corporation.

What is Accounting?

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions. This is very important in order for business managers to understand their financial position when making decisions.

Accounting answers:

• How much revenue was earned?
• How much expenses were incurred?
• What is owed by the company?
• Is the business making a profit?

Whether you are starting a new business or working for a multinational, accounting is the language of business.

What is an Accountant?

An accountant is a trained professional who reviews and prepares financial records. Accountants make sure the accounts are recorded accurately, tax is collected and committed properly and on time, and the business remains financially viable.

Accountants will also give advice, either directly or indirectly, to clients about how to minimize costs, maximize revenues or improve margins.

What Does an Accountant Do?

Here is a list of accounting functions that accountants generally perform:

• Bookkeeping: recording transactions on a day-to-day basis.
• Preparing Financial Statements: balance sheets, profit and loss statements, cash flow statements.
• Submitting Tax Returns: submit tax in a timely manner and be in compliance each period.
• Payroll: Organizing pay, taxes, bonuses, and employee benefits.
• Budgeting and Forecasting: Assisting organizations with planning and allocating resources.
• Audit Preparation: Compiling reports and responding to audits.
• Strategic Financial Advice: Aiding business leaders to make better financial decisions.
• Compliance: Following accounting rules and regulations at the national and international level.

What Does a Tax Accountant Do?

A tax accountant specializes in capitalizing on financial strategies to help individuals or businesses reduce their tax liability, prepare returns, and stay in compliance with the latest tax laws.

Tax accountants often work with individuals during busy tax seasons, while also having the opportunity to represent clients during tax audits.

What is an Auditor?

An auditor is a financial professional who examines and verifies the financial records of an organization for accuracy and compliance.

What Does an Auditor Do?

• Review internal controls and systems
• Assess if companies are in compliance with financial laws
• Identify risks and suggest improvements
• Detect and investigate fraud (forensic auditing)
• Prepare audit reports

How Much Do Auditors Make?

Salaries vary based on region and experience:

• Entry-level auditor: $45,000 – $60,000/year (US); ₹4L-₹7L in India.
• Experienced auditor/forensic auditor: $80,000 +; ₹12L-₹25L +

What is an Audit?

An audit is a formal examination of an organization’s financial statements by an independent auditor. It is beneficial for verifying accuracy, discovering possible fraud, and instilling trust to stakeholders.

Audits are common in public companies, non-profits, and government entities.

How Much Do Accountants Make?

One of the most common questions: How much does an accountant make a year?

United States:

• Entry-Level: $50K – $60K
• Mid-Level/CPA: $70K – $100K
• Senior/Finance Director: $120K+

India:

• Fresher B.Com: ₹2.5L – ₹5L
• CA/CPA/ACCA qualified: ₹7L – ₹25L+
• Big 4 Senior Manager: ₹35L+

UK:

• Part-qualified: £25,000 – £35,000
• ACCA/CIMA qualified: £40,000 – £75,000
• Finance Controller: £90,000+

Yes, accountants tend to earn good salaries — especially if they have international professional certification.

Can Anyone Be An Accountant Without a CPA?

Yes! You can be an accountant with a degree in accounting or finance. However, if you are certified e.g., CPA or ACCA or CIMA, you can increase credibility, expected compensation, and job opportunities.

What Are ACCA, CIMA, and CPA?

All are global certifications for accountants.

1. ACCA (Association of Chartered Certified Accountants)

• Based in the UK, recognized in 180+ countries

• Common in India, UAE, Africa, Europe
• Accra best for auditor, tax, public practice.
• Program duration is 3-4 years.

2. CIMA (Chartered Institute of Management Accountants)

• Based in the UK; focus on management accounting.
• Has a partnership with AICPA regarding CGMA.
• CIMA is a better choice if you want to be a CFO or work in strategy/finance.
• Program duration is 2-3 years.

3. CPA (Certified Public Accountant)

• Based in the US.
• Required to practice public accounting in the US.
• Focus on GAAP, US tax law and auditing.
• Best if you work with clients who are US based or multi-national companies.

What Degree Do You Need to Be An Accountant?

• Bachelor’s degree in accounting, commerce, or business are the most commonly pursued.
• Some pursue master’s in accounting, MBA (finance) or PG diplomas or certificates.

What Jobs Can You Get with an Accounting Degree?

• General Accountant
• Financial Analyst
• Tax Advisor
• Auditor/Internal Auditor
• Cost Accountant
• Budget Analyst
• Forensic Accountant
• Controller/Finance Manager
• CFO (with experience)

Are Accountants in Demand?

Sure are! As long as funds exist, accountants still will be needed According to the Bureau of Labor Statistics, The accounting career field is expecting increases of 4–6% (probably 5%) through 2032.

Digital transformation has provided new connectivity faces in FinTech, Data Analytics, and ESG Accounting.

Do Accountants Work from Home?

You bet! So many accounting roles are fully remote or hybrid following post-COVID.

Jobs such as:

• Virtual bookkeepers
• Tax preparers
• Financial analyst
• Remote auditors

This is due to software programs that are cloud-based like Xero, Quickbooks, Zoho Books, and Freshbooks.

Is Accounting a Good Job?

Yes, for many reasons:

• Job Security – Businesses need accounting people
• Great Salary Potential – Once experience is gained and credentials earned, six-figure salaries are the norm.
• Global Opportunities – If you have ACCA, CIMA, CPA, you will have more global mobility with your qualifications.
• Flexibility in Career Path – You can work in private sector, public sector, or not-for-profit (or freelance).

What is Accounts?

In accounting, “accounts” refers broadly to financial records maintained by a business. For example, accounts may relate to:

• Accounts payable: What a business owes to others
• Accounts receivable: What others owe to a business
• Chart of accounts: A categorized list of the accounts a business uses
• Bank accounts: Financial storage of a business

How Do I Become an Accountant?

To become an accountant, do the following in order:

• Graduate with a degree in accounting or a related subject
• Choose a specialization (tax, audit, cost, etc.)
• Obtain a certification (e.g. CPA, ACCA, CIMA, CMA or CA).
• Gain experience through internships or training
• Develop tech skills (Excel, Tally, QuickBooks, SAP)
• Engage in continuous learning using CPD and available professional courses

How to Become an Auditor?

Auditing is an exciting and well paying niche, to do this:

1. Graduate with a bachelor’s in accounting or commerce
2. Gain 2 to 3 years’ experience in an accounting firm or audit firm
3. Apply for relevant certifications: ACCA (audit specialization), CPA, CIA (certified internal auditor)
4. Like accounting, if you want to specialize, you may want to obtain advanced qualifications for areas such as forensic auditing, compliance or IT audit

How much do CPAs make?

Certified public accountants typically earn:

1. $70K – $130K in the USA
2. ₹10L – 35L in India (MNCs)
3. Up to £90,000 in the UK

How many CPAs are there in the US?

According to AICPA data, as of 2024, it is estimated there are about 650,000+ licensed CPAs in the US.

Can I Be An Accountant For Rich People?

Yes, this is called private accounting or wealth accounting.

You would assist high-net-worth individuals in the following:

1. Tax strategy
2. Investment planning
3. Estate and trust accounting
4. Offshore structures

Professional firms (and auditors) such as PwC Private, Deloitte Private or boutique firms hire professionals for this role

Conclusion

Accountants are more than number crunchers; they are analysts, advisors, auditors, and strategists. In a time of globalization, automation, and changing tax regulations, the need for accountants has never been greater.

Whether you pursue ACCA, CPA, or CIMA, or prefer to work from home doing tax returns, there is a niche for everyone.

So the next time you are asked, “What does an accountant do?” you can confidently say, “Just about everything to keep the financial world functioning.”

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