Financial accountants are specially trained individuals with the skills to take the accounting data of an organization and generate reports on financial performance. Among the duties that are usually conducted by financial accountants are preparing profit and loss statements, cash flow statements, and balance sheets which depending on the needs of the organization, can be generated at regular time periods. The value and purpose of such reporting and analysis is to establish a basis on which to judge the financial performance of an organization. The information compiled by financial accountants is commonly used by, banks, stock holders, and other interested parties outside the daily management of the organization to make informed business decisions about investment, risk, profitability, and other economic considerations.
In order to complete the task of measuring the financial performance of an organization, a financial accountant prepares reports in accordance with the set of industry guidelines called the Generally Accepted Accounting Principles, or GAAP. GAAP guidelines provide uniform standards of fairness and truthfulness in the accounting industry to help ensure that accounting professionals provide reports and analyses that accurately depict the financial performance of an organization. Through their skills and adherence to industry standards, accountants help determine whether resources are used efficiently and whether an organization is achieving its financial goals.
These important skills, however, are cultivated through education and in meeting the necessary qualifications to practice financial accounting.
An individual intending to pursue a career in financial accounting has a number of qualifications to meet before being able to practice in this profession. The two major qualifications include earning a degree through formal education in accounting and then passing the certification exam to obtain a license as a Certified Public Accountant, or CPA.
An aspiring financial accountant generally can pursue an education in this field in two ways, depending on individual career aspirations. First, an individual can decide to earn an associate's degree at a junior or community college. In terms of employment possibilities, an associate's degree, for example, will allow a graduate to obtain entry level bookkeeping positions. This option allows certain individuals to work in the accounting field and then work towards a bachelor's degree outside of work hours. However, while an individual holds an associate's degree, he or she is not eligible to take the certification exam to be a Certified Public Accountant since certification requires at minimum a bachelor's degree. As a result, most aspiring financial accountants choose to pursue a more direct route and earn a bachelor's degree in Accounting.
Lastly, in addition to formal university education, individuals wishing to obtain a CPA certification can find information with their state's Board of Accountancy. Each state Board of Accountancy will list the testing fees and the requirements needed of each CPA candidate in order to successfully apply and complete the certification process. It is important to note that CPA candidates are required to have completed a certain amount of semester hours in upper division business and accounting courses commonly alongside an approved ethics course.