If you’re mathematically minded and interested in finances, an accountant role may be the perfect career for you. An accountant is a professional who performs financial services such as preparing financial records, auditing, and tax services. In this article, we will discuss all things accounting, including typical accountant duties, the different types of accountants, and the essential skills of an accountant. If you’re wondering if accounting is a good job, we’ll also run you through the benefits of this job, including the average accountant’s salary.
Finally, we’ll explain how to become an accountant in Australia, starting with accounting qualifications and how to embark on your accounting journey. Read on if you’re ready to learn everything you need to know about accounting, accountants and everything in between.
Typical accountant duties
The main purpose of accounting is to create financial statements that others can use to make informed decisions about allocating resources. The three primary types of financial statements created and used by accountants are the balance sheet, income statement, and cash flow statement. The balance sheet provides an impression of a company's assets, liabilities, and equity at a given point. The income statement shows the generated revenue over time and how much has been spent. The cash flow statement is a tracker of the cash that goes in and out of a company's accounts.
There are two main types of accounting: financial accounting and managerial accounting. Financial accounting focuses on creating reports that investors or creditors can use to assess a company's financial health. Managerial accounting provides information that managers can use to decide on pricing strategies or investment choices.
Every day is different for an accountant. That said, their most common tasks include recording and maintaining transactions, preparing reports and tax returns, auditing financial statements, and advising on financial matters.
The daily tasks of an accountant can also include:
- Maintaining and preparing financial records - Preparing reports on the company's financial health and monitoring income and spending.
- Ensuring compliance with financial regulations - Making sure that the company is following all laws and guidelines.
- Conducting audits - Examining the company's books to ensure accuracy and completeness.
- Advising on tax matters - Providing guidance on how to minimise the amount of taxes the business owes.
- Providing management consulting services - Advising on how to improve operational efficiency and effectiveness.
- Financial forecasting and planning - Using historical data to predict trends in income and expenses to make informed decisions about budgeting and investments.
- Data analysis - Reviewing large data sets to identify patterns or relationships that can be used to make better business decisions.
As the daily responsibilities are varied depending on your role and company, being an accountant demands a high level of organisation and the ability to multitask. The profession also requires a detail-orientated personality and excellent problem-solving skills. Last but not least, you’ll need to be good with numbers.
All businesses rely on their accountants' expertise to track their finances. Banks and other financial institutions rely heavily on accountants to see where the company’s money is coming and going.
Good accounting is essential because the financial information accountants provide assists managers with business decisions and helps map out how resources should be allocated. It is also crucial for investors and creditors because it allows them to assess the risk of investing in a company.
Types of accountants: what do they do?
We keep referring to the general term accountant, but many different accounting roles exist. The main accounting varieties in Australia are:
- Certified Public Accountant (CPA) - A CPA is a professional designation awarded to accounting practitioners in Australia. Besides completing a tertiary qualification, these accountants must pass an ethics exam and satisfy ongoing professional development requirements. A certified public accountant typically works in public accounting firms but may also work in corporate accounting departments, government agencies, or as self-employed consultants. These accountants provide auditing, tax preparation, and financial consulting services.
- Management Accountant - A management accountant prepares financial reports that help managers decide how to run their businesses. They often specialise in cost accounting or budgeting and may hold positions like controller or treasurer. They usually work in business organisations but may also consult with clients on strategic planning or provide other services. Management accounting tasks can vary depending on organisation size but typically involve budgeting, forecasting, and analysing financial data.
- Government Accountant - Government accountants ensure that public funds are used appropriately and effectively. They may audit government agencies or contractors, evaluate financial systems and controls, prepare budgetary analyses, or manage payroll and benefits programs. Many government accountants work locally for city governments, school districts, or water districts, while others work at the state or federal levels. Some government accountants are employed by private companies that contract with governmental entities to provide specific services.
Essential skills for an accountant
We’ve briefly touched on the fact that accountants need to be organised and have attention to detail. There’s more to it than that. Here we expand on the types of skills that are essential for becoming a successful accountant.
The most necessary personal skills required to be an accountant are:
- Excellent mathematical abilities
- Strong analytical and problem-solving skills
- Attention to detail
- A methodical approach
- The ability to work independently
- Great communication abilities.
The technical skills demanded of accountants are:
- A thorough understanding of accounting principles and practices
- Advanced computer applications knowledge (especially spreadsheets)
- Proficiency in accounting software programs.
Is being an accountant a good job?
There are many reasons why accounting is a good career in Australia, including:
- The demand for accountants is high, and there are many opportunities
- The pay is high compared to other professions
- Accounting is a challenging and interesting profession that provides variety and intellectual stimulation
- Accounting offers good job security and prospects for advancement.
If you’re unsure if accounting is right for you, look at TAFE Gippsland’s article on the different personalities and communication styles that can determine your ideal career.
How to become an accountant in Australia
The most common route to becoming an accountant is to complete a tertiary qualification in accounting, such as a Bachelor of Commerce (BCom) with a major in accounting or equivalent. Once you have completed your academic requirements, you must register with the relevant professional body for accountants in your state or territory. To maintain your registration and adhere to continuing professional development requirements, you must stay up-to-date with developments in accounting practice and law.
While obtaining a Bachelor's degree is necessary, you can begin your educational pathway with a Certificate IV in Accounting and Booking and Diploma of Accounting at TAFE Gippsland to qualify you for further education.
Accountant qualifications
The minimum level of education needed is a Bachelor’s degree to become a certified practising accountant in Australia. You may pursue a Bachelor of Accounting or Bachelor of Commerce. Other recognised qualifications include the Master of Professional Accounting and the Graduate Diploma in Professional Accounting. There’s also the possibility of completing a Certified Practising Accountant (CPA) program. Once this level of education has been completed, you must register with the Tax Practitioners Board or other relevant regulatory body, depending on the state or territory where you seek employment.
Before enrolling in a Bachelor's program, the perfect first step to a career in the financial sector is the Certificate IV of Accounting and Bookkeeping course offered at TAFE Gippsland. Once completed, you’ll be qualified for financial service roles such as payroll and bookkeeping and eligible to apply for the Diploma of Accounting. This Diploma, which is also offered at TAFE Gippsland, will broaden your practical and analytical skills and introduce you to more complex financial practices. With this qualification, you’ll be eligible for future study and local financial sector roles in small business, health care, education and local government.
After completing a Diploma of Accounting at TAFE Gippsland, the future study opportunities are an Advanced Diploma of Accounting and a Bachelor of Professional Accounting. In some cases, TAFE Gippsland’s Diploma of Accounting will bestow credit points towards a Bachelor of Professional Accounting, shortening your course time.
Accountant salary: how much do accountants earn?
The average salary for an accountant in Australia is $77,602 per year. This figure can differ significantly based on a few factors, including experience levels and also depending on if you’re working in an urban or rural setting. For accountants working in Melbourne, the average annual salary is over $80,000.
Now is a great time to enter the industry as accountants are in high demand, and there is always a need for qualified professionals across Australia. In addition to a good salary, accountants enjoy job security and excellent career prospects.
Once you have the qualifications, there are many opportunities for accountants in Australia. If you’re ready to start on the path to an exciting career in accounting, contact TAFE Gippsland today!