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Professional Insights

What does an accountant do? Exploring key tasks, career paths, and earning potential

Nov 07, 2025 · 6 min read · AICPA & CIMA Insights Blog

Behind every organization is a team of accounting professionals who make sure finances run smoothly, taxes are filed on time, and sound financial decisions are made.

Accountants are much more than number crunchers. They work as trusted advisers and strategic partners in businesses, government agencies, not-for-profits, and much more.

As an accountant, managing records and ensuring compliance is only part of the picture. You will also have the flexibility to shape your career path across different organizations, such as tech startups, global corporations, and accounting firms.

This guide will walk you through the responsibilities, specializations, and earning potential available within the accounting profession. Discover the many opportunities to make an impact and grow your career.

Types of accounting careers

Accountants are crucial for maintaining transparency and trust in financial systems. Without them, businesses would struggle to track performance, create growth plans, and meet legal obligations.

A career in accounting can look different depending on your chosen area of expertise.

Some of the most common career paths include:

  • Public accounting: Accountants who work for certified public accountant (CPA) firms serve multiple clients, preparing taxes, auditing, financial records, and offering advisory services.

  • Management accounting: Also known as corporate or private accounting, this type of accounting includes professionals who work within organizations to manage budgets, costs, and performance metrics.

  • Governmental accounting: Accountants who work for governmental entities ensure public funds are used responsibly and transparently.

  • Internal auditing: Internal auditors evaluate an organization’s internal controls, risk management, and governance processes.

  • Forensic accounting: Specialists in this field investigate financial discrepancies and support legal cases involving fraud or theft.

  • Not-for-profit accounting: Accountants in not-for-profits manage finances; help measure programmatic outcomes and sustainability; ensure compliance with regulations; track donations and grants; and prepare reports for stakeholders, including donors and nonprofit evaluators.

Job responsibilities as an accountant can include:

  • Bookkeeping: Recording day-to-day financial transactions

  • Preparing financial statements: Compiling balance sheets, income statements, and cash flow statements

  • Tax preparation and planning: Calculating taxes owed, filing returns, and suggesting tax-saving strategies

  • Auditing: Reviewing financial records for accuracy and compliance

  • Budgeting and forecasting: Supporting organizations in planning for the future

  • Advisory services: Offering guidance on business decisions, investments, and risk mitigation

A closer look at not-for-profit accounting

One example of a professional who has found a meaningful career path as an accountant within the not-for-profit sector is Amy West, CPA, CGMA, executive vice president and CFO of AHRC NYC.

AHRC NYC is a not-for-profit organization that supports people with intellectual and developmental disabilities; its core values center around advocacy, humanity, reimagination, and change.

The organization, which has an operating budget of approximately $380 million, employs 5,000 people and operates 150 sites throughout the five boroughs of New York City.

West initially aspired to be a Broadway dancer, but her career path led her to become a CFO. Her story exemplifies how people from many backgrounds can find opportunities in accounting.

“I realized that dancing and auditioning were not the ideal career path for me and made the difficult decision to walk away from my dancing and musical theater aspirations. I took a job at the New York Public Library ... It was working at the library when I realized that I could wed my passion for the arts with my aptitude for accounting and math,” she said.

West went back to school, earned a degree in accounting, and was recruited by EY’s Health Care and Not-for-Profit Group. She became a CPA and, before joining AHRC NYC, held leadership roles at UNICEF USA and the Guggenheim Museum. Her story shows that accounting careers can begin in unexpected places and lead to meaningful work in many sectors.

At not-for-profits, the key responsibilities of accountants comprise:

  • Managing and mentoring staff

  • Creating and implementing organization-wide policies and procedures

  • Risk assessment

  • Compliance

  • Contracts, insurance, real property, and procurement

  • Board and board committee reporting

  • Interaction with major donors, vendors, and other external partners

  • System selections and implementations

  • Special projects, as needed

Serving clients with expertise: Specializing in tax accounting

Tax is one of many exciting and challenging areas of accounting. Elizabeth Young, director of Tax Practice & Ethics at the Association of International Certified Professional Accountants, shared what drew her to specialize in tax.

“I loved that tax focused on analytics and problem solving ... Tax law is intellectually challenging and constantly evolving. Tax also has a direct strategic impact, and I thought influencing business decisions and financial outcomes would be very worthwhile.”

With more than 18 years of experience in tax, Young noted that a typical day for a CPA in tax can vary significantly.

“[A day] can include reviewing both internal organization and external client emails, monitoring updates related to law changes, team check-ins, preparing or reviewing tax returns, researching issues, or drafting memos. There are also meetings, both internal and external, with clients or with regulators. A lot of time is spent on doing work surrounding documentation, compliance, and tax-planning-related activities,” Young said.

Tax accounting offers a range of career opportunities for accountants, making it an exciting field to explore.

Accounting career paths as a tax professional:

  • Public accounting

    • Roles: Tax associate, senior tax accountant, tax manager/senior manager/director, tax managing director, tax partner

    • Employers: CPA firms of all sizes (Big firms like Deloitte, PwC, EY, and KPMG, regional firms, boutique firms)

    • Focus: Compliance, planning, advisory services for individuals and businesses

  • Corporate tax

    • Roles: In-house tax analyst, tax manager, director of tax, VP of tax

  • Employers: Corporations across industries (e.g., finance, tech, manufacturing)

    • Focus: Internal tax strategy, reporting, and compliance

  • Government and regulatory

  • Roles: IRS agent, tax policy analyst, compliance officer

    • Employers: Federal, state, and local government agencies

    • Focus: Enforcement, policy development, public interest work

  • Personal financial planning

    • Roles: CPA financial planner, estate planner, wealth advisor

    • Employers: CPA firms, financial advisory firms

    • Focus: Tax-integrated financial planning for individuals and families

  • Academic

    • Roles: Tax educator, professor, research fellow

    • Employers: Universities, think-tanks, professional bodies (e.g., the AICPA)

    • Focus: Education, thought leadership

Tax professionals are also taking on more strategic advisory roles. As tax laws become increasingly complex and clients want more integrated financial planning, tax services are expanding into broader financial advice. Technologies like AI and data analytics are also changing how tax work gets done, and regulatory changes increase the focus on tax planning.

Tax professionals face distinct ethical challenges due to the nature of their work, which often involve complex regulatory environments, confidentiality and data protection, AI and automation risks, and the need for proper documentation.

Young advised young professionals to hone skills in communication and adaptability, as well as in technical and accounting areas.

Essential skills for success as a young professional include:

  • Strong communication skills: Being able to communicate clearly and confidently, both in writing and in person, is essential. Clear communication enables professionals to share ideas, ask questions, and build trust with colleagues and clients.

  • Integrity and ethical awareness: In fields like tax and accounting, ethical conduct is nonnegotiable. Young professionals must understand and apply standards like the AICPA Code of Professional Conduct and Statements on Standards for Tax Services.

  • Adaptability: The accounting profession is evolving, and it’s crucial to be able to adapt and stay current with the changes. Every day is dynamic in the accounting profession.

How much does an accountant make?

Salaries for accountants vary based on education, license, accounting specializations, and location.

According to the U.S. Bureau of Labor Statistics, in 2024 the median annual wage for accountants and auditors was $81,680.

Entry-level positions may start at a lower salary, while experienced CPAs or those in specialized roles often earn more.

West noted that becoming a licensed CPA and CGMA designation holder, having public accounting experience, and demonstrating career growth within a specific sector can all influence earning potential and career advancement.

Specializations within accounting can significantly affect both career growth and salary. For example, transitioning from compliance roles to strategic advisory roles can increase compensation and offer additional career opportunities, according to Young.

“Specialty roles can provide for broader influence and the ability to move into higher-level roles. Specialization typically leads to higher earning potential because niche skills are in high demand. Holding a credential can also lead to skills that are compensated at a premium,” Young said.

Examples of credentials you can attain as a CPA include:

Steps to becoming a CPA

In precise terms, a CPA is an accounting professional who has met specific education, examination, and experience requirements, as set by state boards of accountancy.

CPAs offer a range of services, including auditing, tax planning, and financial consulting, and are often required for roles that involve public reporting or regulatory compliance.

You can explore the road map to the CPA Exam and becoming a CPA for a complete overview of the steps you need to take.

Accounting is an impactful career that can open doors to exciting opportunities in every sector. As an accountant, you can make a meaningful difference in any organization.

Resources are available to support you

Mari Sagedal, M.A.

Mari Sagedal is a senior content writer at AICPA & CIMA, together as the Association of International Certified Professional Accountants.

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