Table of Contents Expand Table of Contents What Is an Accountant? Evolution of Profession Essential Duties & Skills Ethical Guidelines & Standards FAQs The Bottom Line What Does an Accountant Do? By Julia Kagan Full Bio Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Learn about our editorial policies Updated November 02, 2025 Reviewed by Amy Soricelli Reviewed by Amy Soricelli Full Bio Amy Soricelli has over 40 years working with job candidates and has honed the art of the job search in all areas. She offers one-on-one session interview preparation skills or constructs resumes for job seekers. She conducts workshops and seminars on all aspects of the job search and is a consistent contributor to HBCU Career Connection. Learn about our Financial Review Board Fact checked by David Rubin Fact checked by David Rubin Full Bio David is comprehensively experienced in many facets of financial and legal research and publishing. As an Investopedia fact checker since 2020, he has validated over 1,100 articles on a wide range of financial and investment topics. Learn about our editorial policies Part of the Series Guide to Accounting Accounting Explained With Brief History and Modern Job Requirements Accounting Basics Accounting Equation Asset Liability Equity Revenue Expense Current and Noncurrent Assets Accounting Theories and Concepts Accounting Theory Accounting Principles Accounting Standard Accounting Convention Accounting Policies Principles-Based vs. Rules-Based Accounting Accounting Methods: Accrual vs. Cash Accounting Method Accrual Accounting Cash Accounting Accrual Accounting vs. Cash Basis Accounting Accounting Oversight and Regulations Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) IFRS vs. GAAP US Accounting vs. International Accounting Financial Statements Understanding the Cash Flow Statement Breaking Down The Balance Sheet Understanding the Income Statement Corporate Accounting Accountant CURRENT ARTICLE Financial Accounting Financial Accounting and Decision-Making Corporate Finance Financial vs. Managerial Accounting Cost Accounting Public Accounting: Financial Audit and Taxation Certified Public Accountant (CPA) Chartered Accountant (CA) Accountant vs. Financial Planner Auditor Audit Tax Accounting Forensic Accounting Accounting Systems and Record Keeping Chart of Accounts (COA) Journal Double Entry Debit Credit Closing Entry Invoice Introduction to Accounting Information Systems Accounting for Inventory Inventory Accounting Last In, First Out (LIFO) First In, First Out (FIFO) Average Cost Method Joules Garcia / Investopedia Close Definition An accountant reviews financial records, tracks income and expenses, and provides insights for financial decisions, often requiring certification and ethical compliance. What Is an Accountant? An accountant maintains and analyzes financial records for companies or individuals. They keep track of income, expenditures, and tax liabilities, and their range of tasks includes auditing, project cost analysis, and tax planning. A bachelor's degree is usually required to pursue a career in accounting, and most accountants require certification to advance in their profession. Accountants must also adhere to ethical standards and principles. International Financial Reporting Standards (IFRS) and generally accepted accounting principles (GAAP) guide accountants in their work. The Industrial Revolution established the accounting profession as essential for business operations. Key Takeaways Accountants maintain and analyze financial records, track income and expenditures, and assess tax liabilities for businesses and individuals.The CPA designation is considered the gold standard in accounting, requiring state-specific education and exams.Accountants can work for firms, large companies, or have private practices, taking roles in auditing, tax planning, and project cost analysis.Ethical standards such as IFRS and GAAP guide accountants' practices, ensuring honesty, transparency, and accountability.Accountants have a fiduciary duty to clients, and can be held liable for negligence, misrepresentation, or breach of contract. The Evolution of the Accounting Profession The American Association of Public Accountants was formed in 1887, and CPAs were first licensed in 1896. Accounting grew during the Industrial Revolution. This growth was driven by complex businesses and the need for financial proof from shareholders and bondholders. After the Great Depression and the formation of the Securities and Exchange Commission (SEC), all publicly traded companies were required to issue reports written by accredited accountants. This change further increased the need for corporate accountants. Today, accountants are essential in every business. More Duties An accountant may also work in project planning and financial decision making. Some specialize in tax preparation. Essential Duties and Skills for Accountants Accountants work with companies, governments, and nonprofits, or run private practices. They may perform account analysis, review financial statements and other reports to ensure they are accurate, conduct routine and annual audits, review financial operations, prepare tax returns, advise on areas that require efficiencies and cost savings, and provide risk analysis and forecasting. An accountant's duties depend on their education and designation. Most accountants have bachelor's degrees and may need certification to advance in a company. Certification requirements vary, with some roles requiring additional educational requirements above the bachelor's degree and successful completion of rigorous examinations. Accountants can have more than one designation. The most common are the certified internal auditor (CIA), certified management accountant (CMA), and certified public accountant (CPA). Many accountants choose to become CPAs because the designation is considered the gold standard in the accounting profession. In the United States, certification requirements for accountants vary from state to state. But one requirement is universal: passing the Uniform Certified Public Accountant Examination. This exam is written and graded by the American Institute of Certified Public Accountants (AICPA). Important There are 653,408 certified public accountants in the U.S. as of August 2025, according to the National Association of State Boards of Accountancy. Ethical Guidelines and Standards in Accounting Accountants must follow the ethical standards and rules where they work, like IFRS or GAAP. IFRS is a set of rules issued by the International Accounting Standards Board. These rules promote consistency and transparency in financial statements. GAAP is a set of standards that accountants must adhere to when they complete financial statements for publicly traded companies in the U.S. Certified public accountants have a fiduciary duty, meaning they must be honest, trustworthy, and avoid negligence. Their work can impact clients, companies, employees, boards, and investors. Accountants can be held liable under common law if they: Are negligent in their duties Misrepresent themselves or their clients Commit fraud Are guilty of breach of contract, which occurs when a professional doesn't fulfill their obligations as per the agreement They can also be held liable under statutory law by state or federal securities regulatory bodies. This happens when an accountant fails to provide their clients with appropriate services or gives them bad advice. How Much Money Does an Accountant Make? The median annual pay for an accountant in the U.S. was $81,680 in 2024 (the most recent data available), according to the U.S. Bureau of Labor Statistics (BLS). What Is the Difference Between an Accountant and a Certified Public Accountant? Accountants and certified public accountants are two different types of professionals. While all CPAs are accountants, not all accountants are CPAs. Accountants typically have a degree in accounting and don't necessarily require a license to practice their profession. They are usually responsible for account reconciliation, analyzing financial statements, budgeting, and reporting financial transactions. CPAs, on the other hand, are licensed professionals. This professional must adhere to standards and codes of conduct and must maintain continuing educational requirements. In addition to some of the duties of the accountant, a CPA must also conduct audits and file reports with the SEC, among other duties. How Do I Become a Certified Public Accountant? A certified public accountant is a professional who has passed a four-part examination known as the Uniform CPA Examination, conducted by the American Institute of Certified Public Accounts with input from the National Association of State Boards of Accountancy and state boards of accountancy.Accountants need both a bachelor's degree in accounting or finance and experience in the field to take the exam. The exam is tailored to each state's requirements and is administered by the state boards of accountancy. The Bottom Line The essential role of accountants is maintaining and analyzing financial records. This helps in tracking income, expenditures, and tax liabilities for companies and individuals. Accounts require a diverse set of skills, including cost analysis, financial decision making, and project planning. Accountants may need certification to advance in their field, and the CPA designation is regarded as the gold standard in their profession. While accounting grew with the Industrial Revolution, it was after the Great Depression and the establishment of the SEC that all publicly traded companies were required to issue reports written by accredited accountants. Accountants must follow ethical standards and guiding principles, like IFRS or GAAP, which help them maintain their fiduciary duty to clients. Accountant certification requirements vary by state, but passing the Uniform Certified Public Accountant Examination is universal and vital. Accountants are in demand across various sectors, including businesses, governments, and nonprofits. Their U.S. median pay was $81,680 in 2024, according to the BLS. General accountants differ from CPAs in that the latter have additional duties and responsibilities, such as audit conducting and SEC reporting. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Association of International Certified Professional Accountants. "History." Roberts, Diane. "Follow in Footsteps: the First CPAs of 1896-1897 and Accounting Occupation Adoption by the Next Generation." Accounting Historians Journal, vol. 49. no 2., Winter 2022, pp. 73-89. American Institute of Certified Public Accountants. "Everything You Need to Know About the CPA Exam." National Association of State Boards of Accountancy. "How Many CPAs Are There?" Congressional Research Service. "Introduction to Financial Services: Accounting and Auditing Regulatory Structure, U.S. and International." Professional Insurance Advisors. "Accountant’s Liability: How It Works and What It Means for You." U.S. Bureau of Labor Statistics. "Occupational Outlook Handbook: Accountants and Auditors." American Institute of Certified Public Accountants. "CPA Licensure." National Association of State Boards of Accountancy. "What Is the Uniform CPA Examination?" Compare Accounts Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Part of the Series Guide to Accounting Accounting Explained With Brief History and Modern Job Requirements Accounting Basics Accounting Equation Asset Liability Equity Revenue Expense Current and Noncurrent Assets Accounting Theories and Concepts Accounting Theory Accounting Principles Accounting Standard Accounting Convention Accounting Policies Principles-Based vs. Rules-Based Accounting Accounting Methods: Accrual vs. Cash Accounting Method Accrual Accounting Cash Accounting Accrual Accounting vs. Cash Basis Accounting Accounting Oversight and Regulations Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) IFRS vs. GAAP US Accounting vs. International Accounting Financial Statements Understanding the Cash Flow Statement Breaking Down The Balance Sheet Understanding the Income Statement Corporate Accounting Accountant CURRENT ARTICLE Financial Accounting Financial Accounting and Decision-Making Corporate Finance Financial vs. Managerial Accounting Cost Accounting Public Accounting: Financial Audit and Taxation Certified Public Accountant (CPA) Chartered Accountant (CA) Accountant vs. Financial Planner Auditor Audit Tax Accounting Forensic Accounting Accounting Systems and Record Keeping Chart of Accounts (COA) Journal Double Entry Debit Credit Closing Entry Invoice Introduction to Accounting Information Systems Accounting for Inventory Inventory Accounting Last In, First Out (LIFO) First In, First Out (FIFO) Average Cost Method Read more Careers Partner Links