Five of the Best Accounting Concentrations
- Personal Financial Planning
- Business Valuation
- Real Estate Accounting
- Managerial Accounting
Every modern-day business and activity involves money in some capacity, so a variety of lucrative accounting specializations have emerged to help navigate the financial rules and regulations of different industries. Choosing a concentration can help accountants market themselves and secure jobs within a particular accounting niche. Some organizations offer certification exams for different specializations and have requirements regarding prior experience and education. Examples of popular areas of accounting include the following.
1. Personal Financial Planning
This areas of accounting focuses on helping individuals and families achieve their financial goals. Financial literacy is not commonly taught, so some clients come from a less-than-perfect background and may even be considering bankruptcy. A personal financial planner evaluates the situation and explains all options as well as recommendations. Some commonly discussed topics include college funds, mortgage requirements, credit card debt, and retirement planning.
2. Business Valuation
This is an interesting specialization in accounting, and professionals can earn their Accredited in Business Valuation (ABV) certification to prove their expertise. Business valuation is the calculation of a business’s worth which is important when selling or applying for loans. Often, these professionals work on an independent team that is called in during mergers and sales. This process relies on complicated mathematics and predictive modeling techniques. When dealing with large corporations, the accuracy of this work can have significant ramifications on the economy.
Auditors work independently, as part of a larger firm, or for the government. This is an ideal accounting specialization for individuals who have a strong moral compass, pay attention to detail, and have the ability to spot inconsistencies in financial reports. Auditors protect consumers and investors, making sure that a company is accurately reporting their financial situation. There are also situations where a business might have been unintentionally mismanaged or unorganized, and an auditor can help new management understand the current financial picture.
4. Real Estate Accounting
The transfer of land can become a complicated ordeal, especially when dealing with more than one property at a time. Real estate accountants often team up with realtors to make sure large transactions are complete and valid. The Property Management Financial Proficiency Certification is a related credential that proves that an individual is skilled in managing land investments and has a working knowledge of all the relevant regulations and procedures.
5. Managerial Accounting
This is one of the most strategic accounting specializations as it combines business practices with accounting and statistics. These professionals prepare and analyze reports detailing a company’s financial standing and then make recommendations to minimize future risk while maximizing profits. As Forbes describes, managerial accounting involves a strong analytical mind and a thorough understanding of world markets because their job relies on their ability to predict what is likely to happen in the future.
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While all accounting involves mathematics and business skills, even if professionals are not particularly passionate about these subjects, they can choose concentrations that allow them to use their skills in a different field. Since all industries require financial resources, there are a wide variety of accounting specializations available.