Description of Accounting Industry - Essay Example

The accounting Industry is a very important service industry and has a strong growth potential. The Accounting Industry has grown steadily in the past five to ten years and is "expected to grow faster than average for all occupations through the year 2014 (U.S. Department of Labor Bureau of Labor Statistics)." The growth of the economy will increase new businesses will increase the need for accountants to handle the financial affairs of those businesses. Employees in the accounting industry set to retirees or changing careers will also increase jobs in this industry.

One major trend that will increase jobs in the Accounting Industry is due to accounting scandals. Accounting scandals have lead to changes in laws and regulations, which in turn will increase the number of jobs in the industry. "In response to accounting scandals, new federal legislation restricts the non-auditing services that public accountants can provide to clients. If an accounting firm audits clients' financial statements, that same firm cannot provide advice in other accounting areas such as legal matters, investment banking, and human resources (U.S. Department of Labor Bureau of Labor Statistics).

" These regulations are to help prevent scandals and fraud in the accounting industry. . Department of Labor Bureau of Labor Statistics). A large cause of the growth of this industry is the services provided by the industry. The Accounting Industry provides a variety of services to individuals and companies who retain monetary gains either from sale of goods and services or from receipt of wages. Almost everyone in the country has finances and monetary gain. The increase in individual and even business wealth causes an increased need for financial advisors, insurance providers, tax preparation and advice services, and other accounting services.

There are four major fields of the accounting industry in which the provided services can be broken down. The first field is the Public Accountants, which include the Certified Public Accountants. Public Accountants provide auditing, accounting, tax, and consulting services for corporations, governments, nonprofit organizations, and individuals (U.S. Department of Labor Bureau of Labor Statistics). Public Accountants concentrate in one specific field of accounting for example, Tax Accounting or Financial Analysis.

Another major field of accountants are the Management accountants, which include cost, managerial, industrial, corporate, and private (U.S. Department of Labor Bureau of Labor Statistics). These accountants record and analyze financial information for corporations in order to provide accurate information in which the company can make accurate business decisions based on financial data (U.S. Department of Labor Bureau of Labor Statistics). A major responsibility in this field is to "prepare financial reports for the stockholders, creditors, tax authorities, and regulatory agencies (U.S. Department of Labor Bureau of Labor Statistics).

" The third field is the Government Accountants and Auditors and