An accountant prepares, analyzes, and reviews financial information so businesses and individuals can understand their finances, meet reporting and tax obligations, and make informed decisions. Accountants may work on financial statements, taxes, audits, budgets, forecasts, internal controls, financial analysis, or business advice, depending on their role. 

The phrase “what does an accountant do?” sounds simple, but the answer depends on where the accountant works and what they specialize in. 

A staff accountant in a small business may spend much of the day reconciling accounts, recording adjusting entries, and preparing reports. A tax accountant may spend most of the year researching tax rules and preparing returns. An auditor may test financial records and internal controls. A management accountant may work with budgets, costs, forecasts, and business performance. 

In other words, accounting is much broader than entering numbers into a spreadsheet. 

This guide explains what accountants do, their daily responsibilities, the difference between accountants and bookkeepers, major accounting career paths, education and certifications, salary information for 2026, career progression, the impact of AI and automation, and when a small business may need an accountant. 

What Is an Accountant? 

An accountant is a financial professional who records, examines, analyzes, interprets, and reports financial information for businesses, organizations, government agencies, or individuals. 

The U.S. Bureau of Labor Statistics describes accountants and auditors as professionals who prepare and examine financial records. Their work can include checking accuracy, evaluating risk, preparing taxes, reviewing accounting systems, and helping organizations operate more efficiently. 

An accountant may help answer questions such as: 

• How much money did the business make? 
• Why did profit change? 
• Are the financial statements accurate? 
• How much tax may be due? 
• Are expenses under control? 
• Which business areas are performing well? 
• What risks exist in the financial records? 
• Can the company afford a new investment or employee? 
• Does the company need better internal controls? 

The exact responsibilities depend on the accountant’s job, employer, industry, and level of experience. 

What Does an Accountant Do in Simple Terms? 

In simple terms, an accountant turns financial transactions and records into useful financial information. 

They may: 

• Review financial records 
• Reconcile accounts 
• Prepare financial statements 
• Calculate and prepare tax information 
• Analyze revenue and expenses 
• Prepare budgets and forecasts 
• Examine internal controls 
• Investigate unusual transactions 
• Explain financial results 
• Advise managers or business owners 

O*NET lists tasks such as analyzing accounting records, preparing financial reports, reconciling discrepancies, preparing tax returns, creating adjusting entries, investigating risks, and analyzing business trends and costs. 

What Does an Accountant Do on a Daily Basis? 

An accountant’s daily work usually combines financial record review, analysis, reporting, communication, and problem-solving rather than simply calculating numbers. 

A typical day could include: 

Morning: Review emails, accounting-system alerts, outstanding items, reconciliations, or client questions. 

Midday: Review transactions, investigate differences, prepare journal entries, update reports, or work on tax and compliance tasks. 

Afternoon: Analyze financial results, prepare budgets or forecasts, discuss results with managers or clients, and document findings. 

The daily schedule changes significantly by specialization. 

For example, a tax accountant during tax season may spend much of the day preparing or reviewing tax returns and researching tax issues. A management accountant may spend more time on budgets, cost analysis, and internal reporting. An auditor may spend more time gathering evidence, testing controls, and reviewing financial statements. AICPA & CIMA notes that accounting careers can involve tax, audit, financial records, budgeting, forecasting, advisory work, and specialized services. 

Common Daily Tasks for Accountants 

Common daily tasks include reviewing transactions, checking account balances, reconciling differences, preparing reports, analyzing financial data, and communicating financial findings. 

Depending on the position, an accountant may also: 

• Review accounts payable 
• Review accounts receivable 
• Reconcile bank and credit-card accounts 
• Prepare adjusting journal entries 
• Maintain fixed-asset records 
• Calculate depreciation 
• Review inventory 
• Prepare tax workpapers 
• Research accounting or tax questions 
• Assist with audits 
• Prepare management reports 
• Monitor budgets 
• Compare actual results with forecasts 
• Review internal controls 

• Investigate unusual transactions 

O*NET identifies account reconciliation, invoice processing, tax preparation, financial analysis, budgeting, compliance review, and financial reporting among the occupation’s tasks. 

What Are an Accountant’s Main Responsibilities? 

The main accountant responsibilities are maintaining reliable financial information, preparing reports, supporting tax and compliance work, analyzing results, and helping management understand the financial impact of business decisions. 

Maintaining Financial Records 

Accountants help maintain organized financial records by reviewing transactions and ensuring they are posted to the appropriate accounts. 

This may include: 

• Revenue 
• Expenses 
• Accounts receivable 
• Accounts payable 
• Payroll 
• Fixed assets 
• Inventory 
• Loans 
• Equity 

Bookkeeping is often part of the accounting workflow, although the scope of accounting extends beyond transaction recording. 

Preparing Financial Statements 

Accountants prepare or review financial statements that show a company’s financial position and performance. 

The major statements include: 

• Balance sheet 
• Income statement 
• Cash flow statement 

The balance sheet shows assets, liabilities, and equity at a point in time. 

The income statement shows revenue, expenses, and profit or loss over a period. 

The cash flow statement shows how cash moved through operating, investing, and financing activities. 

Accountants may also prepare supporting schedules, management reports, and other financial disclosures. 

Reconciling Accounts 

Account reconciliation means comparing two sets of records and investigating differences. 

Common reconciliations include: 

• Bank accounts 
• Credit cards 
• Accounts receivable 
• Accounts payable 
• Payroll 
• Loans 
• Intercompany accounts 

Reconciliation helps identify missing transactions, duplicate entries, timing differences, and other discrepancies. 

Preparing and Reviewing Tax Information 

Tax work is one part of accounting rather than the entire profession. 

Accountants may calculate taxes, prepare or review tax returns, organize supporting documentation, research tax questions, and help clients or companies plan for tax obligations. The BLS includes tax calculation and tax-return preparation among common accountant and auditor duties. 

Tax responsibilities vary by role and credential, and not every accountant specializes in tax. 

Budgeting and Forecasting 

Accountants may help businesses plan future revenue, expenses, cash needs, and investments. 

They can compare: 

Budget vs. Actual 

to identify where spending or revenue differs from expectations. 

They may also prepare: 

• Monthly forecasts 
• Annual budgets 
• Cash-flow forecasts 
• Department budgets 
• Scenario analysis 
• Cost projections 

For a deeper look at revenue forecasting, see our guide on how to forecast revenue. 

Financial Analysis 

Accountants analyze financial information to explain what happened and what it could mean for the business. 

Common areas include: 

• Profit margins 
• Revenue trends 
• Operating expenses 
• Customer profitability 
• Cost behavior 
• Working capital 
• Cash flow 
• Budget variances 
• Financial ratios 

The goal is not simply to report numbers. It is to explain them. 

Auditing and Internal Controls 

Accountants working in audit or internal-control roles examine financial information and processes for accuracy, compliance, and risk. 

An auditor may test whether: 

• Transactions are authorized 
• Supporting documents exist 
• Account balances are reasonable 
• Internal controls are operating properly 
• Financial statements contain material errors 

Internal auditors work inside organizations and focus on processes, controls, risk, and governance. External auditors are independent from the organization they audit and examine financial statements and related evidence. 

Business and Financial Advice 

Accountants can also act as advisers. 

They may explain: 

• Whether expenses are increasing too quickly 
• Why profit margins changed 
• How a new purchase affects cash flow 
• Whether a department is meeting its budget 
• What financial risks need attention 
• How a business can improve financial controls 

AICPA & CIMA describes accountants as working not only on compliance and records but also on budgeting, forecasting, advisory services, and business decision support. 

What Is an Accountant’s Job Description? 

An accountant job description usually combines financial-record management, reporting, analysis, compliance, reconciliation, and communication responsibilities. 

A typical accountant job posting may include duties such as: 

Financial accounting 

Record and review transactions, prepare account reconciliations, and support month-end and year-end close. 

Financial reporting 

Prepare balance sheets, income statements, cash-flow reports, schedules, and management reports. 

Compliance 

Follow applicable accounting rules, internal policies, tax requirements, and reporting procedures. 

Analysis 

Review trends, expenses, margins, variances, and financial performance. 

Tax 

Prepare tax information and supporting schedules or work with tax specialists. 

Systems 

Use accounting software, spreadsheets, ERP systems, reporting tools, and data systems. 

Communication 

Explain financial results to managers, clients, executives, auditors, vendors, or other stakeholders. 

O*NET lists financial analysis, preparing financial documents, examining records, reviewing discrepancies, tax calculations, budgeting, and communication with managers among the occupation’s work activities. 

What Is the Difference Between an Accountant and a Bookkeeper? 

The main difference is that bookkeeping focuses primarily on recording and organizing financial transactions, while accounting generally includes interpreting those records, preparing reports, analyzing financial information, and supporting financial or business decisions. 

A bookkeeper may: 

• Record transactions 
• Post debits and credits 
• Reconcile bank accounts 
• Handle invoices 
• Track receivables 
• Track payables 
• Assist with payroll 
• Maintain the general ledger 

An accountant may do some of those tasks but often goes further by: 

• Preparing or reviewing financial statements 
• Making adjusting entries 
• Analyzing financial performance 
• Preparing tax work 
• Reviewing internal controls 
• Building budgets 
• Preparing forecasts 
• Supporting audits 
• Advising management 

The BLS says bookkeepers often record transactions and post debits and credits, prepare financial statements and reports, handle invoices, payroll, and overdue accounts, while accountants and auditors have broader responsibilities involving analysis, reporting, tax, compliance, and financial review. 

For more detail on how transactions are recorded, see our guide to bookkeeping and double-entry bookkeeping. 

Can an Accountant Also Be a Bookkeeper? 

Yes, an accountant can perform bookkeeping work, but bookkeeping and accounting are not identical functions. 

A small business may use one professional for both jobs, especially when the accounting workload is modest. In a larger organization, bookkeeping, accounting, tax, audit, FP&A, and financial reporting may be handled by different people. 

The important difference is the scope of the work, not simply the job title. 

Do Accountants Only Do Taxes? 

No. Tax preparation is only one area of accounting. 

Accountants can work in: 

• Financial accounting 
• Public accounting 
• Management accounting 
• Tax accounting 
• Audit 
• Internal audit 
• Forensic accounting 
• Government accounting 
• Nonprofit accounting 
• Cost accounting 
• Financial reporting 
• Advisory services 
• Risk and controls 
• Corporate accounting 

AICPA & CIMA identify public, management, governmental, internal audit, forensic, and nonprofit accounting as major career paths and notes that accounting responsibilities can include bookkeeping, financial statements, tax, audit, budgeting, forecasting, and advisory work. 

What Are the Main Types of Accountants? 

There are several major types of accountants, and each focuses on a different type of financial work. 

Public Accountant 

A public accountant serves external clients through an accounting firm or independent practice. 

Public accountants may work on: 

• Tax returns 
• Audits 
• Financial statements 
• Accounting services 
• Advisory work 
• Consulting 

Public accounting can expose professionals to multiple industries and different types of client work. The BLS notes that public accountants perform accounting, auditing, tax, and consulting tasks for corporations, governments, individuals, and nonprofits. 

Management Accountant 

A management accountant works primarily inside an organization and uses financial and nonfinancial data to support internal decisions. 

Typical work includes: 

• Budgeting 
• Cost analysis 
• Performance reporting 
• Forecasting 
• Variance analysis 
• Planning 

BLS describes management accountants as working with financial information to guide internal business decisions and notes their involvement in budgets, performance evaluation, and business costs. 

Tax Accountant 

A tax accountant focuses on tax compliance and tax-related planning. 

Their work may involve: 

• Preparing tax returns 
• Researching tax rules 
• Reviewing tax positions 
• Preparing tax workpapers 
• Supporting audits 
• Tax planning 
• Communicating with clients or tax authorities 

AICPA & CIMA’s description of tax accounting includes return preparation, legal and regulatory research, documentation, compliance, and tax-planning activities. 

Financial Accountant 

A financial accountant focuses on financial reporting and accounting records intended for external or formal reporting purposes. 

Typical responsibilities include: 

• Closing the books 
• Preparing financial statements 
• Reviewing account balances 
• Managing reconciliations 
• Applying accounting standards 
• Supporting reporting and disclosures 

Internal Auditor 

An internal auditor evaluates internal controls, risk, governance, and business processes. 

The purpose is to help the organization identify weaknesses, reduce risk, and improve controls. 

BLS describes internal auditors as professionals who identify ways to improve processes and address waste, fraud, and other financial risks. 

Forensic Accountant 

A forensic accountant investigates financial information for potential fraud, disputes, litigation, or other investigations. 

The role can involve: 

• Tracing funds 
• Reviewing unusual transactions 
• Investigating financial discrepancies 
• Reconstructing financial records 
• Supporting attorneys 
• Preparing evidence 
• Appearing as an expert witness 

BLS notes that forensic accountants may investigate securities fraud, embezzlement, bankruptcy issues, contract disputes, and other complex transactions and may work with law enforcement and attorneys. 

Government Accountant 

Government accountants work with public-sector financial records. 

Their responsibilities may include: 

• Government financial reporting 
• Budgeting 
• Auditing 
• Public-fund accountability 
• Compliance 
• Management accounting 

BLS notes that government accountants help ensure revenues are collected and spent in accordance with applicable laws and regulations. 

Nonprofit Accountant 

Nonprofit accountants work with organizations that may depend on donations, grants, memberships, or program funding. 

Their work can include: 

• Grant accounting 
• Donor reporting 
• Budgeting 
• Financial statements 
• Compliance 
• Program-cost tracking 
• Board reporting 

AICPA & CIMA identifies nonprofit accounting as a distinct career area involving financial management, reporting, compliance, donations, and grants. 

What Is the Difference Between Public and Management Accounting? 

Public accounting serves external clients, while management accounting primarily supports internal decision-making within an organization. 

The BLS and AICPA both distinguish public accounting from management or corporate accounting based largely on whether the accountant serves external clients or supports internal management. 

What Skills Does an Accountant Need? 

An accountant needs a combination of accounting knowledge, analytical ability, technology skills, attention to detail, and communication skills. 

Accounting Knowledge 

Accountants need to understand areas such as: 

• Debits and credits 
• Double-entry accounting 
• Financial statements 
• General ledger 
• Reconciliation 
• Revenue and expenses 
• Assets and liabilities 
• Tax concepts 
• Internal controls 
• Accounting standards 

Analytical Skills 

Accountants frequently investigate why numbers changed rather than simply recording them. 

They may ask: 

• Why did gross margin fall? 
• Why are expenses higher? 
• Why does this account not reconcile? 
• Why did cash decline? 
• Which department exceeded its budget? 

O*NET identifies analyzing information, evaluating compliance, processing information, solving problems, and organizing work as important activities for accountants and auditors. 

Technology Skills 

Modern accountants commonly work with: 

• Excel 
• Accounting software 
• ERP systems 
• Reporting systems 
• Data-analysis tools 
• Cloud platforms 
• Automation tools 
• AI-assisted applications 

The BLS specifically notes that AI and robotics process automation can automate some routine tasks, allowing accountants to spend more time on analysis and higher-level responsibilities. 

Communication Skills 

An accountant may need to explain complex financial information to someone who does not have an accounting background. 

That could mean explaining: 

• Why profit declined 
• Why cash is different from revenue 
• Why a tax payment is due 
• Why an account needs correction 
• What a budget variance means 
• What a financial statement is showing 

BLS notes that accountants must explain their findings through written reports and meetings with managers and clients. 

What Qualifications Do You Need to Become an Accountant? 

A bachelor’s degree in accounting or a related field is the typical entry-level educational requirement for accountants and auditors in the United States. 

BLS reports that accountants and auditors typically need at least a bachelor’s degree in accounting or a related field such as business. It also reports that a bachelor’s degree was required for 91.3% of accountants and auditors in its 2025 Occupational Requirements Survey. 

Relevant degree subjects can include: 

• Accounting 
• Business 
• Finance 
• Economics 

Some employers prefer or value graduate education, especially for specialized or senior positions. 

Do You Need a CPA to Become an Accountant? 

No, you do not generally need a CPA license simply to work in an accounting job. 

A CPA is a professional license with requirements set by state boards of accountancy. It can be particularly important for professionals who perform work that legally requires a CPA license or who want to provide certain public accounting services. 

BLS says accountants who file reports with the SEC must be licensed CPAs and notes that CPAs are licensed by state boards of accountancy. 

The exact education and experience requirements can vary by state. Because CPA licensure rules are changing in some jurisdictions, candidates should check the applicable state Board of Accountancy rather than assume that one national requirement applies to everyone. 

NASBA notes that AICPA and NASBA updated the Uniform Accountancy Act model in 2025 to include a new 120-hour pathway alongside other model pathways, but state adoption and implementation can vary. 

What Is the CPA Exam Like in 2026? 

The CPA Exam currently consists of three Core sections plus one Discipline section selected by the candidate. 

The three Core sections are: 

• Auditing and Attestation, or AUD 
• Financial Accounting and Reporting, or FAR 
• Taxation and Regulation, or REG 

The candidate then chooses one Discipline: 

• Business Analysis and Reporting, or BAR 
• Information Systems and Controls, or ISC 
• Tax Compliance and Planning, or TCP 

AICPA & CIMA states that the exam has four four-hour sections and that all candidates must pass the three Core sections plus one Discipline section. 

A CPA candidate must also meet applicable state education and experience requirements. 

How Long Does It Take to Become an Accountant? 

Many people can enter accounting after completing a bachelor’s degree, which commonly takes about four years of full-time college study, although individual timelines vary. 

Becoming a licensed CPA can take longer because the candidate must meet the applicable state’s education, examination, and experience requirements. 

A typical path may look like: 

College → Entry-level accounting role → Experience → CPA exam and state requirements → Senior role → Management or specialization 

The exact timeline depends on whether the person wants to become a CPA, pursue graduate education, work part time, change careers, or specialize in a particular area. 

What Is the Typical Accounting Career Path? 

An accounting career often progresses from entry-level accounting work into senior, management, and executive roles, although the path varies by employer and specialization. 

A common progression is: 

Accounting Intern 

↓ 

Staff Accountant 

↓ 

Senior Accountant 

↓ 

Accounting Manager 

↓ 

Controller 

↓ 

CFO or Finance Executive 

People in public accounting may follow a different route, such as: 

Audit or Tax Associate → Senior → Manager → Senior Manager → Director → Partner 

Not everyone follows the same sequence. Some accountants move into FP&A, controllership, internal audit, tax leadership, consulting, finance operations, or other business roles. 

What Does a Staff Accountant Do? 

A staff accountant usually handles core accounting activities such as reconciliations, journal entries, account analysis, financial reporting support, and month-end close tasks. 

The role is often designed to build practical accounting experience across multiple parts of the accounting cycle. 

What Does a Senior Accountant Do? 

A senior accountant typically handles more complex accounting work, reviews account balances and reconciliations, supports the close process, prepares financial reports, and may review the work of junior staff. 

Senior accountants may also take ownership of specific accounting areas. 

What Does an Accounting Manager Do? 

An accounting manager generally oversees accounting processes, reviews financial results, manages staff, and helps ensure accurate and timely financial reporting. 

The position often combines technical accounting knowledge with team management. 

What Does a Controller Do? 

A controller generally oversees the organization’s accounting and financial reporting function. 

Depending on the organization, a controller may be responsible for: 

• Financial reporting 
• Month-end close 
• Internal controls 
• Accounting policies 
• Audit coordination 
• Budget support 
• Accounting systems 
• Accounting-team management 

What Does a CFO Do? 

A CFO operates at a broader financial and strategic level and is usually responsible for financial leadership across the organization. 

A CFO may oversee: 

• Financial planning 
• Capital decisions 
• Cash management 
• Risk 
• Financial reporting 
• Budgeting 
• Forecasting 
• Investor or lender communication 
• Finance strategy 

The CFO role is not simply a more senior bookkeeping job. It combines accounting knowledge with finance, strategy, risk management, leadership, and business planning. 

How Much Do Accountants Make in 2026? 

Accountant pay varies by experience, location, industry, specialization, employer, credentials, and job level, so there is no single salary that applies to every accountant. 

For U.S. accountants and auditors, the BLS reported a median annual wage of $83,680 in May 2025. BLS also projects 5% employment growth from 2025 to 2035. 

Indeed’s U.S. salary page, updated September 14, 2026, reported an average base salary of $68,540, based on 16.4k salaries from job postings over the previous 36 months. Indeed’s figure is an average from job-posting data, while the BLS figure is a median occupational wage, so the two numbers should not be treated as directly interchangeable. 

Actual compensation may differ substantially depending on experience, industry, location, employer, responsibilities, certification, and specialization. 

What Affects an Accountant’s Salary? 

The biggest factors affecting compensation include experience, specialization, industry, geography, employer size, professional credentials, and management responsibility. 

For example, an accountant working in a specialized technical role may have a different compensation structure from a junior staff accountant. A professional with management responsibility may also earn differently from someone in an entry-level role. 

BLS data shows that accountant employment exists across accounting services, finance and insurance, government, company management, and self-employment, illustrating the range of work environments in the profession. 

A CPA can also change the types of roles a person is eligible to pursue, particularly where a license is required. 

What Is the Job Outlook for Accountants in 2026? 

The U.S. Bureau of Labor Statistics projects employment of accountants and auditors to grow 5% from 2025 to 2035, with about 115,300 openings per year on average over that period. 

BLS says many of those openings are expected to come from the need to replace workers who leave the occupation, including those who retire or move into other occupations. 

BLS also expects technology to change how accounting work is performed. Routine tasks such as data entry may increasingly be automated, while analytical and advisory responsibilities can become more prominent. 

That means the accounting profession is changing rather than simply disappearing. 

Will AI Replace Accountants? 

AI is automating some accounting tasks, but current labor-market guidance from BLS describes technology as changing the work mix rather than eliminating overall demand for accountants and auditors. 

AI and automation can help with: 

• Data entry 
• Transaction classification 
• Reconciliation assistance 
• Anomaly detection 
• Document processing 
• Report preparation 
• Data analysis 
• Workflow automation 

Accountants still need to: 

• Validate information 
• Understand accounting rules 
• Interpret financial results 
• Review exceptions 
• Evaluate risk 
• Communicate conclusions 
• Apply professional judgment 
• Maintain controls and documentation 

BLS specifically states that technologies such as AI and robotics process automation may increase productivity and allow accountants to focus more on analysis and higher-level responsibilities. 

The result is an accounting job that increasingly combines accounting knowledge with technology and analytical skills. 

What Accounting Software Do Accountants Use? 

Accountants use a wide range of accounting and financial systems depending on the size and needs of the organization. 

Common tools include: 

• QuickBooks 
• Sage 
• Xero 
• Microsoft Excel 
• SAP 
• Oracle 
• Enterprise resource planning systems 
• Payroll systems 
• Expense-management tools 
• Data-analytics platforms 

The specific software matters less than the accountant’s ability to understand how transactions move through the system and how the resulting information supports financial reporting. 

A small company might operate primarily through QuickBooks and Excel, while a multinational organization could use an ERP system connected to payroll, procurement, billing, inventory, and financial reporting. 

Can Accountants Work Remotely? 

Yes, many accounting tasks can be performed remotely, although remote-work availability depends on the employer, role, industry, client requirements, and security policies. 

BLS states that most accountants and auditors work full time, that some work from home, and that some may travel to clients. 

Remote-friendly accounting work may include: 

• Bookkeeping review 
• Financial reporting 
• Tax preparation 
• Account reconciliation 
• Financial analysis 
• Forecasting 
• Client accounting 
• Virtual advisory services 

Auditing and certain client-facing roles may require more in-person work depending on the engagement. 

What Is It Like to Work as an Accountant? 

Working as an accountant usually involves structured deadlines, detailed financial work, software, analysis, documentation, and communication with other people. 

The work environment varies significantly. 

A public accountant may work with several clients. 

A corporate accountant may spend most of the time supporting one company’s finance department. 

A tax accountant may experience especially busy periods around filing deadlines. 

An auditor may spend periods of the year working on audits and visiting clients. 

BLS notes that accountants and auditors generally work full time and that longer hours are common during certain periods such as quarterly audits and tax season. 

Is Accounting Mostly About Math? 

Accounting requires numerical accuracy, but much of the work is actually about analysis, rules, systems, evidence, and communication. 

Modern accounting software performs many basic calculations automatically. 

The accountant’s role is often to determine: 

• What should be recorded? 
• Is the information complete? 
• Is the transaction classified correctly? 
• Does the result comply with applicable standards? 
• Why did the numbers change? 
• What does the result mean for the organization? 
• What action should management consider? 

O*NET identifies analysis, compliance evaluation, information processing, decision-making, and problem-solving among important activities in the occupation. 

This is why accounting can be a fit for people who enjoy structured problem-solving rather than only people who enjoy mathematics. 

Do Small Businesses Need an Accountant? 

A small business may need an accountant when financial transactions, tax requirements, reporting needs, or business decisions become too complex to manage confidently with basic bookkeeping alone. 

A small business may benefit from an accountant when it needs help with: 

• Financial statements 
• Tax preparation 
• Tax planning 
• Business formation 
• Payroll-related accounting 
• Forecasting 
• Cash-flow analysis 
• Reconciliations 
• Cleanup of old records 
• Internal controls 
• Business planning 
• Lender or investor reporting 

Not every small business needs a full-time accountant. 

A business with straightforward transactions may use a bookkeeper for regular transaction processing and bring in an accountant for tax work, financial statements, year-end review, forecasting, or more complicated issues. 

The best structure depends on transaction volume, business complexity, internal expertise, reporting needs, and budget. 

When Should a Small Business Hire an Accountant Instead of a Bookkeeper? 

A bookkeeper may be enough for routine transaction processing, while an accountant becomes more useful when the business needs analysis, tax work, financial reporting, or higher-level advice. 

Consider an accountant when you need help with: 

Complex taxes: Multiple entities, tax planning, unusual transactions, or specialized tax issues. 

Financial reporting: Formal financial statements for management, lenders, investors, or other stakeholders. 

Business decisions: Pricing, expansion, financing, acquisitions, hiring, or cost analysis. 

Forecasting: Revenue forecasts, budgets, cash-flow planning, or scenario analysis. 

Accounting cleanup: Large unreconciled balances, missing entries, historical errors, or complicated account corrections. 

Controls: Improved processes for reducing errors and protecting financial information. 

A business may also use both professionals together: the bookkeeper maintains the records while the accountant reviews, adjusts, reports, and analyzes them. 

Accountant vs. Bookkeeper vs. CPA 

An accountant, bookkeeper, and CPA can overlap, but they are not the same thing. 

A CPA is not simply another word for accountant. CPA is a regulated professional license, while “accountant” is a broader occupational description. 

BLS states that CPAs are licensed by state Boards of Accountancy and that licensing requires passing the CPA examination and meeting state requirements. 

How Accountants Help Business Owners 

Accountants help business owners understand the financial side of the business and use that information for planning and control. 

For example, an accountant might identify that: 

• Revenue increased but profit declined 
• One product has a weak margin 
• Accounts receivable is taking too long to collect 
• Payroll costs are growing faster than revenue 
• A large expense was classified incorrectly 
• Cash flow is tightening despite reported profit 
• A department consistently exceeds its budget 

This changes the role from “someone who handles the books” to a professional who helps explain what the numbers mean. 

How Accountants Help With Financial Statements 

Accountants help prepare, review, analyze, and explain financial statements so management and other users can understand the organization’s financial position and performance. 

Balance Sheet 

The balance sheet reports assets, liabilities, and equity at a specific point in time. 

Income Statement 

The income statement reports revenue, expenses, and profit or loss over a defined period. 

Cash Flow Statement 

The cash flow statement explains changes in cash from operating, investing, and financing activities. 

An accountant may also prepare supporting schedules, reconciliations, and disclosures needed to make the financial reporting process complete. 

How Accountants Help With Internal Controls 

Accountants can help organizations design and evaluate internal controls that reduce the risk of errors, misuse of funds, and unreliable financial information. 

Examples include: 

• Separation of duties 
• Approval requirements 
• Access controls 
• Account reconciliations 
• Review procedures 
• Expense policies 
• Audit trails 
• Supporting documentation 

Internal controls are especially important as a business grows because one person may no longer be able to perform every accounting task safely and accurately. 

Accountant Career Options by Interest 

Accounting can lead to different career paths depending on what type of work you enjoy. 

Prefer taxes? Tax accounting may be a fit. 

Enjoy investigations? Forensic accounting may be relevant. 

Like business strategy? Management accounting or FP&A may be appealing. 

Prefer compliance and assurance? External or internal audit may fit. 

Like financial reporting? Financial accounting and controllership offer that focus. 

Prefer technology and systems? Accounting systems, ERP, data analytics, and technology controls are growing areas of the profession. 

Want client variety? Public accounting provides exposure to multiple organizations. 

These paths use the same accounting foundation but can lead to very different day-to-day work. 

Accountant Career Case Study 

Consider a fictional small business owner, Maria, who runs a growing online consulting company. 

In the first year, Maria handled most financial tasks herself using accounting software. The business had a small number of transactions, so basic bookkeeping was manageable. 

By the third year, the company had: 

• More employees 
• Multiple revenue streams 
• Growing accounts receivable 
• Contractor payments 
• Higher monthly expenses 
• Quarterly estimated tax obligations 
• A need for financial forecasts 

Maria’s bookkeeping records were mostly current, but she was spending too much time trying to understand what the reports meant. 

An accountant could add value by: 

• Reviewing the existing books. 
• Reconciling major balance-sheet accounts. 
• Correcting classification and adjusting entries. 
• Preparing management financial statements. 
• Comparing actual results with the budget. 
• Reviewing accounts receivable and cash flow. 
• Building a revenue forecast. 
• Helping Maria prepare for tax filing. 
• Explaining the financial results in plain language. 

The lesson is that a business does not necessarily need an accountant simply because it has a certain revenue level. The need often appears when financial complexity and decision-making requirements become greater than the owner’s available time or accounting knowledge. 

What Are the Pros and Challenges of an Accounting Career? 

An accounting career can provide a structured professional path across many industries, but it also involves deadlines, detailed work, regulatory requirements, and busy periods. 

Potential Advantages 

Accounting offers several possible benefits: 

• Work exists across many industries 
• Multiple specialization options 
• Opportunities for advancement 
• Transferable financial skills 
• Potential for remote work in some roles 
• Opportunities to work in business, government, nonprofits, or public accounting 
• Ability to move from accounting into broader finance roles 

The BLS reports that accountants and auditors work across accounting services, finance and insurance, government, company management, and other settings. 

Common Challenges 

Accounting can also involve: 

• Tight deadlines 
• Heavy workloads during busy seasons 
• Repetitive tasks in some positions 
• Strict documentation requirements 
• Detailed regulations and standards 
• High expectations for accuracy 
• Constant technology changes 

Work conditions vary widely by employer and specialization. 

Is Accounting a Good Career in 2026? 

Whether accounting is a good career depends on a person’s interests, skills, goals, preferred work environment, and desired career path. 

Current U.S. labor data shows that accountants and auditors remain a large occupation, with about 1.6 million jobs in 2025, a projected 5% employment increase from 2025 to 2035, and about 115,300 openings per year on average over that period. 

The profession is also changing as automation and AI take over some routine work and accountants spend more time on analysis, controls, technology, communication, and advisory responsibilities. 

For someone considering accounting, it is useful to look beyond the word “accountant” and compare the actual work involved in tax, audit, financial reporting, management accounting, forensic accounting, and other specialties. 

How to Find the Right Accountant for a Business 

The right accountant depends on the type of work you need rather than simply the title “accountant.” 

Before hiring one, define whether you need: 

Bookkeeping support: Transaction entry, reconciliation, invoices, and routine records. 

Tax support: Tax preparation, tax planning, or tax research. 

Financial reporting: Monthly or annual financial statements and reporting. 

Business advisory: Budgeting, forecasting, profitability analysis, or planning. 

Audit: Independent or internal examination and assurance work. 

Specialized accounting: Forensic, nonprofit, government, cost, or industry-specific accounting. 

Ask prospective accountants about their experience with your business type, accounting software, reporting needs, and type of work. 

For small businesses, outsourcing can also provide accounting support without adding a full-time internal position. 

Accounts Confidant provides bookkeeping and accounting support, including services such as accounts payable, accounts receivable, bank reconciliation, balance-sheet reconciliation, and financial reporting. 

You can learn more about the company’s accounting and bookkeeping approach through Accounts Confidant. 

Final Takeaway 

An accountant does much more than enter numbers or prepare tax returns. 

Depending on the role, an accountant may maintain financial records, reconcile accounts, prepare financial statements, handle tax work, review controls, audit information, analyze business performance, build budgets, forecast future results, and advise managers or business owners. 

The profession offers multiple paths, including public accounting, management accounting, tax, audit, forensic accounting, government accounting, nonprofit accounting, and financial reporting. 

For someone considering accounting as a career, the current U.S. outlook includes about 1.6 million accountant and auditor jobs in 2025, projected employment growth of 5% from 2025 to 2035, and approximately 115,300 openings per year on average. 

For businesses, the important question is not simply whether they need “an accountant.” It is which financial tasks require routine bookkeeping, which require accounting expertise, and which require deeper analysis or advisory support. 

As accounting technology continues to improve, accountants are increasingly expected to understand software, data, automation, controls, and business decisions in addition to traditional accounting principles. 

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