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What Does an Accountant Do? Role, Duties, and Specialties
An accountant records, analyzes, and reports on financial activity so businesses and individuals can meet legal obligations and make informed decisions. Day to day, that means preparing financial statements, filing tax returns, reconciling accounts, running audits or reviews, building budgets and forecasts, and advising on financial strategy. Duties vary by specialty and by whether the accountant works in public practice, industry, government, or a nonprofit.
The U.S. Bureau of Labor Statistics counted about 1.6 million accountants and auditors in 2024, with a median annual wage of $81,680 (BLS, May 2024). The role sits between raw transaction entry (bookkeeping) and high-level financial leadership (controller, CFO).
What Does an Accountant Do Day to Day?
An accountant’s daily work centers on turning transaction data into accurate records, compliant filings, and useful analysis. Common tasks include reconciling bank and ledger accounts, preparing or reviewing financial statements, calculating and filing taxes, testing controls, and answering questions from managers, lenders, or the IRS. The mix depends on the specialty and employer.
Typical recurring duties:
- Record and classify transactions, then reconcile accounts to source documents (bank statements, invoices, payroll registers).
- Prepare the three core financial statements: income statement, balance sheet, and cash flow statement.
- Calculate tax liability and file returns such as Form 1040, Form 1120, Form 1120-S, or Form 1065.
- Support month-end and year-end close, including accruals, depreciation schedules, and adjusting entries.
- Build budgets and forecasts, then compare actual results to plan (variance analysis).
- Perform or support audits, reviews, or compilations under professional standards.
- Advise on entity structure, tax planning, and internal controls.
Most accountants specialize. A tax accountant may spend filing season deep in returns and IRC provisions, while a management accountant focuses on cost analysis and forecasting year-round.
Core Accountant Duties by Function
Accountant duties cluster into five functions: recordkeeping and reporting, tax, assurance, advisory, and controls. Each maps to different standards and deliverables. The table below shows what an accountant does in each function and the typical output.
| Function | What the accountant does | Typical output |
|---|---|---|
| Recordkeeping and reporting | Maintains the general ledger, reconciles accounts, prepares statements under GAAP | Balance sheet, income statement, cash flow statement |
| Tax | Computes liability, files returns, plans to reduce future tax within the law | Form 1040, 1120, 1120-S, 1065; tax projections |
| Assurance | Tests financial data for accuracy and compliance | Audit opinion, review, or compilation report |
| Advisory | Analyzes results, models scenarios, recommends actions | Budgets, forecasts, entity structure memos |
| Controls | Designs and tests processes that prevent error and fraud | Control narratives, testing workpapers |
Reporting standards depend on context. Public and many private companies follow U.S. GAAP as set by the Financial Accounting Standards Board (FASB). Governments follow GASB standards, and nonprofits apply GAAP with sector-specific rules tied to Form 990 reporting.
Types of Accountants and What Each Specialty Does
Accounting splits into distinct specialties, each with its own duties, employers, and standards. The main categories are public accounting, management (corporate) accounting, government accounting, tax accounting, auditing, and forensic accounting. Which one an accountant chooses shapes their daily work far more than the shared “accountant” title suggests.
Public accountants work at firms serving many clients. They perform audits, prepare taxes, and advise businesses. The largest are the Big Four (Deloitte, PwC, EY, KPMG), but most public accountants work at smaller regional and local firms.
Management accountants (also called corporate or cost accountants) work inside a single company. They handle budgeting, cost analysis, internal reporting, and forecasting to support operating decisions.
Government accountants manage public funds, audit agencies, and enforce regulations. Many work for the IRS, GAO, or state and local governments, often applying Yellow Book (GAGAS) standards.
Tax accountants focus on compliance and planning. They prepare returns, research IRC provisions, and structure transactions to manage liability. Enrolled Agents (EAs) and CPAs can represent clients before the IRS.
Auditors examine financial records for accuracy and compliance. External auditors issue independent opinions; internal auditors report to management and the board on risk and controls.
Forensic accountants investigate fraud, quantify damages, and support litigation. Many hold the Certified Fraud Examiner (CFE) credential and apply the fraud triangle framework.
For a closer look at when to hire each credentialed professional, see CPA vs EA vs tax attorney.
Accountant vs Bookkeeper vs CPA: What Is the Difference?
A bookkeeper records transactions, an accountant interprets and reports on them, and a CPA is a licensed accountant who can perform work reserved by law, such as signing audit opinions and representing clients before the IRS. All three can overlap on routine tasks, but scope, licensing, and liability differ sharply.
| Role | Typical education | Can do | Cannot do |
|---|---|---|---|
| Bookkeeper | High school diploma; optional certificate | Enter transactions, run payroll, reconcile accounts | Sign audits, represent clients before the IRS |
| Accountant | Bachelor’s degree in accounting | Prepare statements, file taxes, analyze, advise | Issue an independent audit opinion (unlicensed) |
| CPA | 150 hours (or state pathway) plus exam and experience | Everything above, plus audits and IRS representation | N/A within scope, subject to state license |
Only a licensed CPA can issue an audit opinion on financial statements. Any accountant can prepare a tax return, but only CPAs, EAs, and attorneys have unlimited practice rights before the IRS. For a full pricing comparison, see how much a CPA costs for a small business.
How to Become an Accountant
Most accountants hold a bachelor’s degree in accounting or a related field, which qualifies them for staff and corporate roles. Becoming a CPA requires additional education, a four-part Uniform CPA Exam, and supervised experience. The credential path an accountant chooses depends on the specialty and career goal.
Common credentials:
- CPA (Certified Public Accountant): Historically 150 semester hours plus the exam and about one year of experience. Beginning in 2026, many states offer alternative pathways, such as a bachelor’s degree plus two years of experience, in place of the extra 30 hours.
- CMA (Certified Management Accountant): Bachelor’s degree, the two-part CMA exam, and two years in management accounting or financial management. Focused on corporate roles.
- CIA (Certified Internal Auditor): Any bachelor’s degree plus the exam and experience. Administered by The Institute of Internal Auditors for internal audit roles.
- EA (Enrolled Agent): No degree required; earned by passing the IRS Special Enrollment Examination. Grants unlimited IRS representation rights.
The 150-hour rule has been loosening across jurisdictions. See the state CPA licensure tracker for current pathway status by state.
Where Accountants Work and What They Earn
Accountants work in public accounting firms, corporate finance departments, government agencies, and nonprofits, with pay varying by specialty, location, credential, and experience. The BLS reported a median wage of $81,680 for accountants and auditors in May 2024, though senior and specialized roles pay well above that.
Employment of accountants and auditors is projected to grow 5% from 2024 to 2034, in line with or slightly above the average for all occupations, with about 124,200 openings projected each year over the decade (BLS). Demand is tied to economic growth, a complex tax and regulatory environment, and the ongoing CPA pipeline shortage, which has tightened supply of licensed professionals. For detailed compensation ranges, see the accounting salary database and the CPA industry report.
Frequently Asked Questions
What are the main duties of an accountant?
An accountant records and reconciles financial transactions, prepares financial statements under GAAP, calculates and files taxes, supports month-end and year-end close, builds budgets and forecasts, and advises on financial decisions. In assurance roles, an accountant tests records for accuracy and compliance. The exact mix depends on the specialty and employer.
Is an accountant the same as a CPA?
No. Every CPA is an accountant, but not every accountant is a CPA. A CPA has met a state’s education and experience requirements and passed the Uniform CPA Exam. That license lets a CPA sign audit opinions and hold unlimited IRS representation rights, which unlicensed accountants cannot do. Many accountants work capably without the CPA.
What is the difference between an accountant and a bookkeeper?
A bookkeeper records day-to-day transactions, runs payroll, and reconciles accounts. An accountant takes that data further: preparing financial statements, filing taxes, analyzing results, and advising. Bookkeeping is largely recording; accounting is interpreting and reporting. Many small businesses use a bookkeeper for daily entry and an accountant at tax time or for reporting.
How much does an accountant make?
The median annual wage for accountants and auditors was $81,680 in May 2024, according to the BLS. Pay varies widely by specialty, location, credential, and experience. Entry-level staff earn less, while controllers, partners, and specialized advisors often earn well into six figures. CPAs generally earn more than non-licensed accountants in comparable roles.
What education does an accountant need?
Most accountants hold a bachelor’s degree in accounting or a related field. That degree qualifies them for staff and corporate positions. Becoming a CPA has historically required 150 semester hours, the exam, and about a year of experience, though many states began offering alternative pathways in 2026. Credentials like the CMA, CIA, and EA have their own separate requirements.
What types of accountants are there?
The main specialties are public accounting (audit, tax, advisory for clients), management or corporate accounting (internal budgeting and cost analysis), government accounting (public funds and agency audits), tax accounting (compliance and planning), auditing (external and internal), and forensic accounting (fraud investigation and litigation support). Each has distinct duties, employers, and applicable standards.
Do all accountants do taxes?
No. Tax is one specialty among several. Many accountants never touch a tax return, focusing instead on financial reporting, auditing, management accounting, or advisory work. Tax accountants, CPAs, and Enrolled Agents handle returns and IRS matters. A business may use different professionals for its books, its audit, and its tax filings.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.