Applicants must have a bachelor’s degree in accounting, finance, or business to work as a private accountant. Other qualifications, such as a master’s degree or certification as a Certified Public Accountant (CPA), are beneficial but not required. Strong communication skills, basic accounting ability, organized work methods, proficiency with necessary computer programs, and knowledge of applicable laws are all required of private accountants.
In contrast to a public accountant, who works for multiple clients, a private accountant is hired a single company to manage that company’s finances. He or she examines the company’s finances, creates budgets, audits the books, and issues financial reports. Accountants in larger companies have specific responsibilities, such as taxes and budgets. In a small business, a private accountant may handle all aspects of accounting as well as some bookkeeping.
A bachelor’s degree in accounting, finance, or business is often the only requirement for becoming a private accountant, but many larger companies will only hire an accountant who is a CPA or Certified Management Accountant (CMA). An applicant must pass an exam and meet certain educational requirements to obtain either certification. The requirements differ depending on the region.
Many people begin their careers earning a master’s degree in accounting (MAcc) or business administration (MBA) (MBA). The MAcc degree prepares students for careers as accountants, whereas the MBA prepares students for careers as accountants or other business professionals. These degrees aren’t required to work as a private accountant, but they can help you get better paying jobs. To complete either master’s degree, you’ll need about two years of full-time study.
Communication skills, both verbal and written, are essential. An accountant must be able to comprehend the financial situation of the company and clearly communicate it to other employees, customers, suppliers, and regulatory officials. He or she is frequently called upon to summarize a financial situation for people who are unfamiliar with financial terminology.
To work as a private accountant, you don’t need advanced math skills. Instead, he or she must master fundamental accounting and organizational skills, as well as a working knowledge of accounting software. A private accountant must enter numbers into the correct fields of a computer program in a methodical manner.
A private accountant should also be familiar with the legal aspects of accounting. He or she must be familiar with all applicable laws, including tax and commercial law. Accounting for nonprofit organizations, for example, necessitates a special understanding of the applicable nonprofit laws. A private accountant must stay current because laws are constantly changing. An accountant is also required to keep much of the information he or she has access to private.