Accounting is a field known for keeping track of a business’s finances and profitability. Besides balancing debits and credits, there are specific subjects that an accounting graduate can tackle. Here are five possible concentrations for an undergraduate accounting major.
1. Financial Analysis Concentration
Financial analysis is concerned with the comprehension and interpretation of financial statements and the results of business options. Since financial statements are made to offer data that is useful in the decision-making process, it is helpful to concentrate on analyzing investments, business options, and employee performance. Following this curriculum, a student develops skills like portfolio analysis and capital budgeting. This lays the foundation for graduate studies and prepares students to obtain jobs in public and corporate accounting fields.
2. Information Systems Concentration
Since accounting is at the center of an organization’s business systems, a concentration in information systems will be extremely useful. It targets the flow of financial and non-financial data between a business entity and its related partners. Information technology is used to process and analyze information, streamline activities, and protect assets.
While studying this concentration, a student learns how to secure control procedures and how to design management systems that uphold the integrity of data. This concentration offers great flexibility in career options. A student may continue in the accounting field or take a job in the IT industry.
3. Internal Auditing Concentration
Internal auditing is an independent activity, which adds value to a business’s operations. It helps a company reach goals by providing a disciplined approach to monitoring, evaluating, and improving the effectiveness of internal controls and risk management. Following this curriculum path, a student will develop planning skills. As an internal auditor, a person works in-house or as a consultant to keep track of finances, improve auditing policies, and facilitate exterior audits.
4. Tax Specialist Concentration
Tax accountants comprehend requirements of tax reporting and prepare returns for individuals and business entities. Also, individuals in this specialty area provide complex tax planning services. In this concentration of study, a candidate learns IRS defined tax accounting requirements, which include rules for expenses, revenues, and depreciation.
This concentration allows an individual to enter the small business sector, corporate environment, or international fields. A small business tax accountant utilizes independent practices to offer planning services to various clients. A corporate accountant usually works with one company and handles payroll tax accounting, property tax issues, and transactional returns. Companies in the United States that participate in international business have unique tax obligations and must work with accountants who understand tax laws inside and outside this country.
5. Managerial Concentration
Managerial accounting involves more than delivering financial information. It focuses on the implications of the information and how it impacts all aspects of business. This concentration deals with analyzing numbers to rate the supply chain and to evaluate a company’s processes and costs. Since it combines both accounting practices and business concepts, it is ideal for students who want to enter the business sector. In this field, a person will help plan what is sold, how much is sold, and the best prices to offer. Also, an individual will use relevant costing techniques to decide whether or not to begin new projects. Standard costing is used to measure a company’s performance as well.
Accounting is a vast field with a number of career opportunities. Depending on the path chosen, the above concentrations will help hone a persons interests so that he or she enters an area that brings the most benefits. Having an understanding of the possibilities will lead to fulfilling career choices.