What is Accounting?

Do you love to manage your finances? Does a list of your favorite words include "budget," "fiscal," and "money"? You'd probably make a fantastic accountant.

But what is "accounting"?

An accountant keeps track of money--a company's, individual's, non-profit's or the government's. Most accountants either work in-house at a large company for an accounting firm that handles individual and/or corporate clients, or for themselves, as contractors who work with clients on a freelance basis.

Accountants usually have an area of expertise and fall under one of the following six professional categories:

1. Public accountants do accounting, auditing, tax and consulting work with clients, which can include corporations, non-profit organizations and government agencies.
2. Certified Public Accountants (CPAs) have passed the rigorous Uniform CPA Exam and are eligible to file reports with the Securities and Exchange Commission (SEC).
3. Forensic accountants examine fiscal activity to make sure that it's legal. These accountants sometimes work with law enforcement agencies or lawyers, particularly during money-related investigations.
4. Management accountants usually work in-house at a corporation or business, and are responsible for managing and analyzing the financial transactions of their workplace.
5. Internal auditors also work in-house at a corporation or organization, monitoring internal financial transactions to make sure that company money is not being wasted, stolen or used suspiciously.
6. Government accountants and auditors might be employed by federal, state or local governments, monitoring and managing their financial records. They might also be responsible for auditing people or businesses, who are subject to taxation or regulation.

According to the Bureau of Labor Statistics, accountants are in growing demand. Job opportunities are expected to grow by 22 percent between the years 2008 and 2018. The median annual wage of an accountant was $68,960 as of May, 2010. Salary will vary depending upon your location, level of experience and education, and the type of organization that employs you.