Is an Accounting Degree Worth it?

If you aspire to a career in Accounting, you must have been wondering about its worth today.

You might feel, with the technological advancements and the rising age of AIs, that a degree in accounting be as rewarding as it was. 

Well, to help you with that, we have brought to you this article where we have tried to cover all the aspects and hope for your best judgment on the career.

In this article, we will be discussing the accounting degree, its types, job outlook, work environment, salary outlook, and some facts and stats to try to paint a comprehensive picture of the worth it still holds.

Let’s start –

Accounting Degree

An accounting degree trains professionals to examine and prepare financial records for businesses or individuals.

A degree in accounting is an academic qualification that covers concepts such as – statistics, business, economics, information technology, auditing, and financial accounting. 

It is designed to provide individuals with a solid foundation in accounting theory, financial reporting, analysis, taxation, auditing, and other related areas.

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An accounting degree can open doors to various career paths, including financial accounting, management accounting, auditing, tax preparation, forensic accounting, financial analysis, and more.

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What can you expect with an Accounting degree?

An Accounting degree makes you eligible for many types of careers, and the skills it instills in you are widely accepted.

Let’s take a quick look at what you get with an accounting degree –

• You are relevant in today’s business world.
• Many employers value hiring accounting majors.
• There are ample career growth opportunities.
• There are many career paths to choose from.  
• There is high job stability and satisfaction.
• There is a very high demand for the graduates.

Types of Accounting Degrees  

There are many ways you can acquire a degree in accounting and the way you choose is a type of degree. If you choose to get an accounting degree post your schooling then you can get it through an associate degree or a Bachelor’s degree.

If you already graduated, then you can choose the Master’s degree in accounting. However, you might be required to undergo some course prerequisites in Accounts or other subjects.

Then, if you aspire for advanced roles you might need to get some certifications or try to acquire a Doctoral degree. Also, you can acquire these degrees through online schools. 

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Let’s discuss the types of accounting degrees –

Associate Degree

Course Duration – 2 years

Course Credits – 60

Course Cost – $10,000 to $30,000

The Associate degree in accounting is the quickest way you can embark on a career in the field of accounting. Post the degree, you become eligible for entry-level roles in the field.

It offers the students the foundational concepts of accounting, finance, and business. Now, you can either continue your education and get your bachelor’s or master’s, or you can start earning by joining some entry-level positions.

Jobs – Entry-level – Accounting Assistant, Bookkeeper, Payroll clerk, etc. 

Bachelor’s Degree

Course Duration – 4 years

Course Credits – 120

Course Cost – $20,000 to $40,000

A Bachelor’s degree is the most popular degree among the students and the employers also prefer or seek it while interviewing and hiring.

With a bachelor’s degree, you’ll be well-equipped in the field of accounting, and by honing the required skills you are ready for the role. 

Post-completion of this degree you become eligible for some mid-level roles in the vast field of accounting.

Jobs – Forensic accountant, Auditor, Financial Advisor

Master’s Degree

Course Duration – 2 years

Course Credits – 30-36

Course Cost – $20,000 to $40,000

A Master’s degree is for those who seek to advance their careers and want to pursue higher-level roles.

Also, if you wish to gain some certifications then you are required to get a Master’s degree in accounting for your certification eligibility.   

Jobs – High-level positions – Management analyst, Financial manager, Senior auditor

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Certifications 

Now, the certifications are those that you achieve after your baccalaureate or Master’s in accounting depending on the requisites.

The common certifications are –

• Certified Public Accountant (CPA)
• Certified Financial Analyst (CFA)
• Certified Management Accountant (CMA)
• Certified Internal Auditor (CIA)
• Certified Information Systems Auditor (CISA)

Job Outlook

As per the 2021 data by BLS, the employment of accountants and auditors is projected to grow by 6% in this decade – 2021 to 2031.

It also predicts 136,400 job openings each year over the decade – 2021 to 2031.

Most of the openings are expected from various factors like – retirement, career switch, and exit from a job.

The high demand is due to many factors like – a growing economy, globalization of businesses, and technological changes affecting the tax and regulatory environment.  

Work Environment

Let’s take a look at the workplaces that require an accountant and auditors to lend their services.

Workplaces with their salary data –

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

Annual Average Salary: $91,140

Management of Companies and Enterprises

Annual Average Salary: $87,780

Local Government, excluding schools and hospitals

Annual Average Salary: $75,870

Real Estate

Annual Average Salary: $82,210

Management, Scientific, and Technical Consulting Services

Annual Average Salary: $89,980

Other Investment Pools and Funds

Annual Average Salary: $87,200

Office Administrative Services

Annual Average Salary: $86,380

Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers

Annual Average Salary: $144,780

Web Search Portals, Libraries, Archives, and Other Information Services

Annual Average Salary: $121,930

Software Publishers

Annual Average Salary: $115,400

Salary Outlook

As per BLS data 2022, the annual average salary of accountants is $86,740 with the highest 10 percent earning more than $128,970 annually. This will only increase after you gain sufficient experience and expertise in your area of work.

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-> Requirements for Accounting Degree

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Top 5 paying states in Accountants and Auditors

Here are the top 5 highest paying states in the U.S.A for Accountants and Auditors –

District of Columbia – Annual Average Salary: $110,750

New York – Annual Average Salary: $110,320

New Jersey – Annual Average Salary: $102,040

California – Annual Average Salary: $96,210

Massachusetts – Annual Average Salary: $95,830

Facts and Stats You Should Know

An accounting degree is a very lucrative and rewarding career in the world of finance and business. There is no doubt about it.

But with changing times, does the degree hold the same worth that it used to, is the real question, we all have.

To help you make an informed decision we have compiled some of the facts and stats.

Let’s explore them –

CEOs and Higher Roles

Did you know that 1 in 4 Fortune 500 CEOs are from a background in accounting? This underscores the strong leadership skills and financial acumen that an accounting degree can instill.

Certified Management Accountants (CMAs) play a pivotal role in business strategy, with 74% of CMAs holding positions as CFOs or vice presidents of finance.

Salary Data

As per the 2021 data by BLS, the annual average salary of an Accountant is $ $77,250, with the highest 10 percent earning more than $128,970 annually. This will only increase after you gain sufficient experience and expertise in your area of work.

Employment Data

The employment data for accountants and auditors is projected to grow by 6% in the next decade.

Global Career Opportunities

With the International Financial Reporting Standards (IFRS) becoming widely adopted, accountants with knowledge of both Generally Accepted Accounting Principles (GAAP) and IFRS are in demand internationally. This provides a unique advantage for professionals seeking global career opportunities.

Financial Fraud Detection

Accountants play a critical role in detecting financial fraud. In fact, they are responsible for identifying 28% of occupational fraud cases, showcasing their ability to safeguard businesses.

CPAs

Becoming a Certified Public Accountant (CPA) can significantly boost earning potential. CPAs earn 10-15% more than non-CPAs, demonstrating the tangible value of this certification.

During Financial Crisis

During economic downturns, the role of accountants becomes even more pronounced. During the 2008 financial crisis, accountants were at the forefront of assessing financial stability and helping businesses navigate challenges.

Job Satisfaction

A survey by the American Institute of CPAs found that 93% of CPAs reported feeling satisfied with their career choice, highlighting the fulfilling nature of accounting professions.

Tech Careers

The role of accountants in business analytics is on the rise. Accounting professionals who can analyze and interpret data are highly sought after, given the 41% increase in demand for data-driven skills.

Diverse Employment

Interestingly, there are around 1,099,751 accountants that are working in the USA. Out of those a whopping 61.8% are women, while only 38.2% of accountants are men. 

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In Conclusion

We have discussed and revealed almost everything from the course cost, to judge the ROIs. The course duration to calculate the time investment. And the benefits with the outlook and various other facts to paint a comprehensive picture.

But, we should also add that, choosing Accounting as a career depends on your personal goals, interests, skills, strengths, and weaknesses. You should conduct a self-assessment and then try to reach a final decision.

Ultimately, if you love playing with numbers, are detail-oriented, and are drawn to the world of business then a career in accounting could be the best-suited option for you.

So, we hope our efforts are sufficient to help you make an informed judgment. But, if you want ours, then, considering all of these stats and data, it only goes on to suggest that a degree in accounting is absolutely worth it.

But, we leave the final call up to your conscience and your finest judgment skill.