A career in finance can benefit you with financial stability, job security, and social standing. Partnered with analytical and mathematical strengths, strong interpersonal skills will also benefit you in each of these three financial career paths worth considering. Read more about these careers paths and reflect on whether one of them is the right path for you.
Financial Analyst
Financial analysts work for shareholders and shareowners to utilize their income to increase company wealth. This involves the study of marketing trends, including microeconomic and demographic variables. The financial analyst will look at a company’s short-term and long-term wealth investment goals. After examining these trends and goals, the analyst will provide the company with advice for smart investments, such as bonds and stock.
Financial Officer
Financial officers can work adjacent to or separate from financial analysts. Their main role is to oversee accounting departments, budgeting, and reports. They create financial statements to stay compliant with state and federal laws. In the event of an audit, a financial advisor reports findings and makes recommendations accordingly.
This role is the backbone of a successful company; in fact, it’s one of the highest roles out of these three financial career paths worth considering. Reaching this career will take time, continued education, and professional mentorship. But its job security and pay are well worth the effort.
Accounting
There are several different accounting career paths you can take:
Financial Accounting
Financial accounting involves the documentation, briefing, and reporting of financial statements for a business. Each of these things is legally required for all registered businesses and should be included in annual reports for every company. These reports enable management to analyze and correct financial issues and to prevent future issues. Typically, if there’s an IRS audit, an analysis of these statements is first on a financial accountant’s to-do list.
Cost Accounting
Cost accountants analyze and report cost structure, showing a company where it has lost money and where it can save money. Cost accounting can include indirect costs and variable costs. Indirect costs occur when money is allocated to things such as electricity or water for a working building. It does not primarily focus on a product. Variable costs involve any the cost of materials needed to create a product.
Auditing
Auditing is the examination of a company to make sure it’s compliant with legal requirements. It determines whether a company has honestly stated its financial activity or whether that statement contains any errors. Auditors follow specific criteria of the US GAAP (Generally Accepted Accounting Principles), which the US Securities and Exchange Commission adopted. All publicly traded companies are independently audited at least once per year.
