Careers for Accounting Majors: They're a Lot More Diverse than You Think Pt. 3

In the previous post, I discussed environmental accountants. In this segment, I'll be exploring the law and order-centric world of the forensic accountant.

Forensic Accountant

In addition to being one of the fastest-growing law enforcement professions, forensic accountancy is one of the more inherently interesting and satisfying branches of accounting. If you enjoy solving puzzles and a good mystery novel (and if you're also proficient with numbers), financial forensics might be the career for you.

Some of the most famous criminal cases in the United States have hinged upon the work of forensic accountancy. The Lindbergh baby kidnapping was solved by Treasury Department agent Frank Wilson; he recorded serial numbers from the ransom money and distributed those numbers in a booklet, ultimately leading to the discovery of the cash and the kidnapper. This same numbers-cruncher also helped to get Al Capone prosecuted and convicted for tax evasion.

Roles/Responsibilities

Forensic accountants scrutinize financial, tax, and business records of individuals and organizations in order to uncover fraud or illegalities that may be pertinent to civil or criminal cases. Money laundering, tax evasion, and embezzlement all fall under the purview of the forensic accountant; occasionally, financially-motivated homicide prosecutions depend upon the work of the forensic accountant.

Education

The level of education necessary for the forensic accountant will depend upon the agency (local, state, or federal). At minimum, the candidate will require a Bachelor's degree in accounting as well as the appropriate public accounting certification. The ideal prospect will also have had extensive coursework in criminal investigation.

Because giving expert court testimony is an essential part of a forensic accountant's duties, all forensic accountants must receive specialized training that will prepare them for court appearances, as well as techniques in financial investigation, and knowledge of state and federal laws. The ability to issue clear and effective written communications is also critical.

Salary

Salaries for forensic accountants average $65,940 per year.

In the next installment, I'll be discussing auditing.

Lewis Daidone is a Certified Public Accountant and a consultant to financial services and technology companies.

Careers for Accounting Majors: They're a Lot More Diverse than You Think Pt. 2

It may come as a surprise that there are accounting jobs that suit nearly every personality type and area of interest. If you have a strong social and/or environmental consciousness, consider environmental accounting.

Environmental Accountants

The strong social and governmental focus on sustainable environmental practices has led to a plethora of local, state, and federal regulations. Additionally, public opinion demands that every business conduct its practice with an eye towards ecological responsibility. The environmental accountant must balance conserving company resources and eliminating waste with ensuring a positive environmental impact.

Roles/Responsibilities

The environmental accountant integrates conservation practices and principles into standard reporting, that includes cost/benefit analyses. He/She monitors all activity along the supply chain, including administrative and operational requirements (office supply usage, electricity, etc.). Environmental accountants must also have a keen understanding of the regulations that govern the environment in which the company operates, in particular those monitored by the Environmental Protection Agency, the federal oversight agency for all public and private business entities.

Since consumer interest regarding environmentally friendly practices is now at an all-time high, it is important to demonstrate a company’s commitment to maintaining a green work environment. So everything from green packaging and sustainable manufacturing to paperless offices come under the purview of the environmental accountant to ensure the most efficient and cost effective means of maintaining an ecologically responsible workplace.

Education

Environmental accountants must possess a Bachelor's degree; acquiring a Certified Professional Environmental Auditor's credential is essential for career growth and maximizing earning potential.

Salary

The mean salary varies depending upon location. In New York, the mean salary is $85,000—in Texas, it is $68,000. Texas, New York, and California employ the highest number of environmental accountants.

In my next post, I'll discuss forensic accounting.


Lewis Daidone is a Certified Public Accountant and a consultant to financial services firms and technology companies.

Careers for Accounting Majors: They're a Lot More Diverse than You Think Pt. 1

If you're looking for a fascinating career that is also in-demand, consider accounting.

According to the United States Department of Labor, accounting professionals—including budget analysts, forensic accountants, senior accountants, auditors, and controllers—are projected to be increasingly in demand well into the next decade. Accountants and auditors in particular may grow approximately 11 % faster than all other occupations on average. It is estimated that the increasing complexity of tax laws, the robust health of the economy, and enhanced regulations within the financial sector are all contributing factors to this accounting boom.

So, what's so diverse about different levels of accounting? If you've never considered a career in accounting, you might be somewhat confused as to what makes, for example, an auditor different from a controller. Don't they all deal with numbers?

They do, in a macro sense. However, there are a great many variations across industries and sectors. In this series of posts, I'll be discussing different accounting professions, what sort of personalities might find them appealing, and what kinds of specific projects the professionals can expect. First, I'll start with…

Budget Analyst

Also called a financial analyst, a budget analyst monitors and organizes the finances for his or her organization. This includes working across departments to determine budgetary needs, drafting proposals for funding, making financial projections, and drawing up budgets for any special projects. This can be either in the public or private sector, as well as in nearly any industry (health care, tech, arts and entertainment, travel, food and beverage, etc.) 

People who enjoy and excel at cross-functional collaboration would thrive as budget analysts.

In the public sector, budget analysts require a comprehensive understanding of legislative measures and regional demographics in order to effectively map out budgetary requirements and projections. People who are passionate about social issues and who would like to have a positive affect on the community are exceptionally suited to careers as public sector budget analysts. 

Salaries for local government budget analysts (with Master's degrees) begin at approximately $44,000. The average salary for federal government budget analysts is $71,220.

In the private sector, the possibilities are limitless. For example, a budget analyst working for a major network or film studio would not only perform organizational budget proposals, funding requests, and financial analysis, but also work closely with production teams for various projects. 

The average salary for budget analysts in the arts and entertainment industry is $92,370.

In my next post, I'll discuss environmental accountants!

Author Lewis Daidone is a Certified Public Accountant, and currently consulting with financial services and technology companies.

Keeping An Accurate Accounting Record

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It can be argued that accountancy can make or break a business. Governmental Agencies, mom and pop businesses and the most sophisticated financial organization realize the importance of keeping accurate accounting records. Not only to properly understand the economic state of their business, but also to help to make intelligent decisions regarding how to grow and where to deploy resources. Surprisingly, while this point of view is widely maintained, it lacks in its execution more than it should. Each Organization should design its own record-keeping system, but certain basics should always be factored into the design. Some examples regarding basic records that should be considered when designing an accounting record keeping system are listed below:

Accounting and tax records can consist of a lot of data and be very extensive. However, there are many business accounting software packages that can help consolidate all of that information. These applications require a basic knowledge of accounting and are well worth the cost of implementing based on the time, effort and resources that can be saved in the long run.

Contracts: Contracts are the building blocks to most corporate relationships. Businesses that provide services use contracts to identify the services to be provided, the means of delivery and the acceptable standards associated with the service, its delivery and the related costs. Similarly, enterprises that produce products draw up contracts establishing similar parameters for the products that they produce and sell. Employment contracts are also used extensively in business and govern the relationship between the employee and employer. In short, Contracts stipulate the terms of the business relationship, and identify the responsibilities of each party.

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While these represent just two aspects to consider when developing a robust recordkeeping system, they represent the building blocks for almost every type of business entity.

Lewis Daidone is a CPA known for his integrity and wide ranging experience working with Boards and other professionals helping entrepreneurial companies achieve success.. For more information, subscribe to this Facebook page.

Asset Management

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Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible assets such as human capital, intellectual property, and goodwill and financial assets. Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.

The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others. These include, for example, investment managers that manage the assets of a pension fund. The asset management industry has undergone major changes over the last 25 years. From the early 1990s until about 2008, assets under management (AUM) skyrocketed due to the high liquidity in the global financial markets and ever-increasing personal asset valuations (i.e., think housing bubble). This phase also witnessed the formation and increase in the prominence of hedge funds.

Recently, the asset management industry has undergone major changes. After the credit crisis, the sector has shrunk remarkably, as financial markets all over the world contracted, and liquidity, once abundant, became either highly restricted or non-existent. Hedge funds that were once pervasive have closed at ever expanding rates.

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Today, many of the largest asset managers have seen their AUM drop 30–40%, not only because of a decline in asset prices, but also because of clients who withdrew their money either out of necessity or due to concerns regarding the financial health of their asset managers. The crisis also brought regulatory failures to light, such as the Bernie Madoff Ponzi Scheme.

Lewis Daidone is a certified public accountant currently working as a consultant for BlackRock, with a specialization in investment management. For more on his credentials, visit this LinkedIn profile.

Identifying The Distinct Roles Played By Accountants And Financial Planners

On the surface, accountants and financial planners are two distinctly different occupations. On the one hand, accountants focus on recording, summarizing, analyzing and reporting on a business's financial transactions and are a virtual requirement for publicly traded entities. Financial planners, on the other hand, specialize in tax planning, portfolio management, and retirement planning. 

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Both certified public accountants and certified financial planners have their own degree requirements and sets of tests before certification; accountants, however, need to hold an advanced degree to certify, whereas financial planners can qualify for certification with an accredited bachelor's degree. 

There are, however, plenty of overlaps between financial planning and accounting. Whether through taxes or investments, both are heavily geared toward providing their client with a big picture perspective of their finances and to maximizing potential cash flows and revenue streams. While the need for certified public accountants may be reserved for high net worth individuals, certain tax situations that become complex enough to need a certified public accountants may also require the assistance of a financial planner. 

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In response, many certified public accountants have themselves decided to diversify and become certified financial planners themselves, owing to the ease with which the skills from one field transfer to another. People who are both certified public accountants and financial planners are often active at tax time when the former specialization is more prominently needed. 

There are benefits and drawbacks to all-in-one personnel. Hiring one particularly competent person may be serendipitous for some individuals, allowing them to cut back on the costs of maintaining a financial team. Likewise, a single person handling everything may not be able to perform competently in all disciplines, leading to minor slip-ups that could add up over time. 

A certified public accountant, Lewis Daidone works as a consultant for BlackRock, specializing mainly in investment management. For more updates on accounting, subscribe to this blog.

Resilient Portfolio: Investing Strategies for the Disciplined Investor

How you invest your hard-earned money, obviously, is an important decision; and how you go about making your investment choices is even more important. Asset allocation, diversification and dollar cost averaging are proven, time honored and successful ways to help you to achieve your investment goals.

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Asset allocation
Asset allocation is about not putting all your eggs in one basket. It's the ultimate protection should things go wrong in one investment class or sector, as is likely to be the case from time to time. Asset allocation attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to your risk tolerance, goals and investment time frame.By keeping things carefully balanced, you'll be able to endure market fluctuations without losing sleep.

Diversification
Diversification is a risk management technique that combines a wide range of investments to potentially minimize investment risk.  Finance blogger Ken Faulkenberry defines investment diversification as "a portfolio strategy combining a variety of assets to reduce the overall risk of an investment portfolio.“ A basic, diversified portfolio might include several investment categories such as stocks, bond and cash.

Dollar cost averaging
Often considered the best friend of the ordinary investor, dollar cost averaging is a strategy whereby you allot fixed investment amounts at predetermined times (monthly, quarterly, semi-annual, or annual), regardless of the movement in stock or bond prices. As a result of buying a fixed dollar amount of a particular investment on a regular schedule regardless of the share price, more shares are purchased when prices are low, and fewer shares are bought when prices are high.

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Lewis Daidone  is an investment operations consultant currently working at BlackRock. His wide ranging experience includes mergers and acquisitions, successful start-up and exit strategies and  business process re-engineering. . Know more about him on LinkedIn.