Job Profile Accounting Director

Finance gurus looking to rise through the ranks into management may set their sights on the role of accounting director. Also called accounting supervisors, accounting directors are upper-level managers who oversee the financial reporting functions of their organization. Whether in the public or private sector, accounting directors implement the controls that ensure the agency’s assets are properly protected. Accounting directors are typically experienced CPAs who are experts in analyzing finances for compliance with SEC and GAAP standards. They report directly to the senior executive team and present analysis reports on the company’s performance. Accounting directors share the common purpose of making certain organizations earn sufficient revenue or sales for growth.

Salary

Based on survey statistics on Salary.com, the median yearly salary for accounting directors in the United States is $155,838.  When benefits like bonuses, pensions, insurance plans, and vacation are factored in, the average total compensation for accounting directors is $240,582 each year.

Beginning Salary

Newly hired accounting directors typically land in the bottom 10th percentile of earnings with a yearly income of around $125,193. More experienced accounting directors can see their annual base salary increase to above $192,156. Those in the coveted position of Chief Accounting Officer (CAO) reach the upper echelon and bring home over $220,000 annually.

Key Responsibilities

Accounting directors have the primary responsibility of overseeing the staff in the accounting department, including:

  • accountants
  • auditors
  • budget analysts
  • bookkeepers
  • payroll clerks

Directors will develop the organizational policies that staff uses to analyze and report accounting data. Typical daily duties for accounting directors include:

  • reviewing finances
  • confirming the accuracy of ledgers
  • refining reports based on industry standards
  • maintaining internal finance controls
  • creating efficient accounting information systems

Some may oversee certain client contracts to strategically plan smart financial strategies. Accounting directors spend considerable time collaborating with other department heads and executives. HR tasks like interviewing, hiring, training, and firing accounting staff are also common.

Necessary Skills

Positively contributing to the organization’s accounting vision requires many skills. Accounting directors must possess the technical skills to compile and examine large amounts of financial information. Analytical abilities are essential to quickly identify any errors or signs of fraud and correct them according to SEC regulations. Successful accounting directors have strong leadership skills to effectively motivate, manage, and discipline accounting staff. Communication skills are a must for clearly conveying reports to executives either verbally or in writing. Basic mathematical skills are important for accounting directors to accurately analyze numbers on business performance. Directors must be confident, innovative, ambitious, and experienced to develop high-performing accounting teams.

Degree and Education Requirements

All director of accounting positions will require candidates to hold at least a bachelor’s degree from an accredited, four-year business school. Undergraduate majors in accounting and finance are preferred, but business administration is also acceptable. Since competition is intense for accounting directors, attending graduate school is encouraged. Job prospects are improved for professionals holding a Master of Accounting, Master of Finance, or MBA in Accounting and Finance. Master’s degrees will also satisfy the 150-hour requirement for becoming a Certified Public Accountant (CPA) in most states. For good preparation, take courses in:

  • managerial accounting
  • financial reporting
  • ethics
  • auditing
  • strategic planning
  • risk management

Pros and Cons of the Position

Accounting director is a job many finance majors strive for but be prepared for both rewards and challenges. On the positive side, accounting directors make a lucrative six-figure salary that can grow towards the quarter-million mark. There’s room for advancement into roles like Chief Accounting Officer (CAO), Chief Finance Officer (CFO), and even Chief Executive Officer (CEO). There’s diversity in where accounting directors can work, from healthcare to industry and government. Unlike some accounting jobs, directors also handle more than just crunching numbers to successfully shape the company’s financial growth. However, accounting directors must invest heavily in their education and licensing. Extensive experience is required before even advancing into the position. Accounting directors usually compete with many other applicants for their promotion. As upper-level managers, they’re put under the stress of keeping all accounting processes running smoothly and accurately. Accounting directors work beyond the 40-hour week with tight deadlines, especially around tax season.

Getting Started

Although earning the right degree is important, having the right experience is more important. Begin building your resume in college by taking summer internships and part-time jobs in accounting firms. Working as a bookkeeper or auditing clerk while studying is valuable. After graduation, you can start applying for staff accountant jobs. Most accounting directors need at least five to seven years of experience for their role. Pursuing your master’s degree part-time or online while working in accounting is advised. Anyone filing financial reports with the SEC is required to have CPA credentials. According to the AICPA, most states mandate having a fifth year of schooling to take the Uniform CPA examination. You’ll need to pass all four parts within 18 months at a certified testing center. The average pass rate is under 50 percent, so taking the Becker CPA Review course or an equivalent is best. Some accounting directors also become Certified Management Accountants (CMAs).

Future Outlook

The globalization of today’s economy is fostering a steady demand for accounting jobs, according to the Bureau of Labor Statistics.  The outlook in public accounting is particularly sunny thanks to an increasing number of organizations going public. Accounting directors will be key in keeping companies in the financial sector in accordance with stricter regulations. The Bureau of Labor Statistics reports that accounting jobs will grow by six percent from 2018 to 2028 for around 90,700 openings. Accounting directors stand on the top ladder, so positions are less numerous. Aspiring directors could find prospects in:

  • accounting firms
  • payroll services
  • government agencies
  • financial institutions
  • manufacturing firms
  • nonprofits
  • corporations.

Accounting directors leverage their advanced skills to direct the creation of financial initiatives that spark company profitability. It’s their duty to lead the accounting department to success by promptly resolving money-related business challenges. Accounting directors ensure that the accounting staff is qualified to meet corporate objectives for revenue growth.

Becoming an accounting director will place you at the helm of coordinating policies for monitoring accurate, positive financial records.

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