Accounting consultants advise clients and help streamline accounting processes and procedures to comply with regulations and improve overall financial outlook. They also help clients understand financial data and how this data affects the overall business and profitability. Clients may be individuals and/or companies.
Traditional accountants collect historical information/data and produce report on it. While accountants charge for the time spent, accounting consultants provide upfront pricing based on different service types.
While some consultants choose to work in accounting, finance or business consultancy firms, others choose to set up their own business.
Education and Qualifications
- Bachelor’s degree in accounting or finance; business or economics majors are also considered.
- Master’s degree in accounting or finance (recommended)
- Certified Public Accountant (CPA) credential
- Strong background in and familiarity with financial controls, regulations, and accounting procedures
Responsibilities
While accounting consultant roles and responsibilities vary by client, project, or firm, there are some common services that could apply to most:
- Advising on configuring a general ledger, managing cash, and keeping track of accounts payable and accounts receivable
- Providing support in completing data processing or modification tasks; creating and designing financial reports or other documents
- Preparing, analyzing, and interpreting financial statements
- Projecting a financial forecast
- Evaluating financial health and providing recommendations
- Analyzing cashflow and profit/loss
- Advising on regulatory/compliance requirements
- Evaluating the accounting process and helping with system implementation
A Day in the Life
Most accounting consultants work full time, 40 hours/week. But during busy periods such as tax season, end-of-quarter, or the year-end, etc. they tend to work long hours to meet deadlines. The day-to-day activities of an accounting consultants vary based on whether he/she works for a firm or runs their own business. The following is a list of some routine activities:
- Documenting transactions accurately and bookkeeping
- Preparing various accounts for assets, liabilities, and capital
- Checking and fixing financial inaccuracies
- Preparing budget and forecast reports
- Preparing reports for performance improvements
- Preparing financial statements for the leadership team and advising them on various approaches for better cashflow and profitability
- Providing financial advice for making key business decisions
- Checking emails and responding to client inquiries
- Communicating with accounting colleagues
- Communicating with clients and professionals from other departments like sales, finance, etc.
- Keeping up with accounting, tax, and technology related changes
Other Necessary Skills
- Attention to detail and analytical skills
- Problem solving and solution implementation skills
- Drive for excellence
- Leadership skills
- Communication skills
- Organizational skills
- Customer service skills
Career Progression
- Entry level associate –> Senior associate –> Accounting manager –> Senior manager/director –> Managing director –> Partner
Salary
Average salary of accounting consultant: $79K
Total compensation (salary, bonus and other benefits) varies based on years of firm, experience, title, industry and location. The following is just a guideline:
- Entry level associate: $45 to $60K
- Senior associate: $60 to $110K
- Accounting manager: $100K to $135K
- Senior manager/director: $150 to 180K
- Managing director: $180K to $400K
- Partner: $300K to $3 million
Job Growth
Number of jobs: 1.4 million
Job outlook: 7% growth from 2020 to 2030
New jobs: 96K between 2020 and 2030
As every business has accounting and financial needs, job prospects are good for these types of consultants.
Summary
If you have good analytical skills and enjoy working with numbers, the accounting consultant career could be a suitable option for you. This is one of the more diverse careers and opportunities are available in every industry including both public and private sector. The industries that require financial/accounting consultants can range from aerospace to hospitality. You can gradually go up the career ladder, or move laterally from one role to another equivalent role, or even become your own boss by starting your own business.
