Financial accounting provides overall financial information for a company to outside stakeholders. This is particularly important following the 2002 passage of the Sarbanes-Oxley Act in response to the financial scandals that shook the nation at that time.
Financial accountants prepare and produce a company's financial statements, which determine the company's financial worth. This may be in the form of an annual report for shareholders, banks, and other key stakeholders, or in other forms as may be required by various regulatory bodies. These statements are audited by outside accountants and auditors.
In addition, financial accountants prepare financial information that a business then uses to plan, evaluate performance, and make key business decisions. This may include profit and loss statements, balance sheets, cash flow reports, and shareholders' equity reports. To produce the necessary information, financial accountants rely on data produced by a company's regular accountants.
In order to work in financial accounting, you will need excellent analytical skills, a keen attention to detail, a love of numbers, and good computer skills.
A Brief Auditor Salary Guide
Being an auditor can mean steady and secure work in any number of positions and industries. An auditor may work for one company in particular or on a work-for-hire basis. There are many companies that employ auditors the way staffing companies employ other temporary workers. They have various assignments to which they send auditors on a per-job basis.
There are also many companies that employ auditors full-time or part-time; they typically have several departments that need auditing consistently, especially when it involves new projects or processes. Audits are also typically done when new budgets are being calculated, or simply several times throughout the year as needed.
Below is a brief salary guide for most auditing positions, as taken from data culled in the year 2008 across all areas of the United States. (These numbers do not include bonuses and benefits.)
|Chief Financial Officer||$120 - 280K|
|Partner||$110 - 275K|
|Staff Internal Auditor||
$55K first 3 years
|Internal Audit Manager||$85K|
|Tax Staff||$51K first 3 years|
|Senior Auditor||$68K 3-6 years|
|Tax Senior||$62K 3-6 years|
|Audit Manager||$85K 6+ years|
|Tax Manager||$89K 6+ years|
|Financial Planning Analyst||$53K|
|Senior Credit Analyst||$59K|
|Senior Treasury Operations Analyst||$67K|
|Credit Analysis Manager||$71K|
Determining the compensation of an auditor is more complicated than simply reading from a short guide. Other factors to consider would include the additional education of an auditor, if any, as well as additional licenses they may have. A part-time employee may receive less per hour than the equivalent of a full-time employee, and an employee's years of experience are also a factor.
Additionally, a company may also take into account their benefits including bonuses, stock options, and the like. In some cases these benefits can add up to a cost that is approximately half the actual salary. A company with fewer benefits may consider having to pay the auditor a higher salary.
The location of a company may also determine the range of one's salary. Those living in larger cities typically earn more as a response to the higher cost of living. Smaller cities may mean lower wages across the board, and an auditor is no exception. And of course your own company may have its own ranges when it comes to salary levels, however, keep in mind that the best workers typically demand the best salaries even in today's tough job market.
An auditor's salary guide is meant to be just that – a guide. While you may want to keep your own salaries within this level, make sure that you are also being reasonable with workers in order to retain the best. The work of an auditor can mean saving yourself hundreds of thousands of dollars, if not even more, so certainly the best auditor is worth the best salary possible.