If you’ve been wondering how government agencies utilize taxpayer money, then you may want to ask a government accountant. Government accountants are involved in creating budget plans, tracking financial spending, analyzing publicly funded programs, and monitoring money being collected from citizens. Whether at the local, state, regional, or federal level, government accountants specialize their expertise in maintaining and examining financial records for the public sector. Accountants have various job options working for the Department of Treasury, Government Accountability Office (GAO), Internal Revenue Service (IRS), and even the Federal Bureau of Investigation (FBI). Government accountants play a prominent role in guaranteeing that government agencies remain transparent, efficient, ethical, and responsible in their spending habits to keep our nation’s financial system functioning smoothly.
Salary
According to the Bureau of Labor Statistics (BLS), the average annual salary for government accountants and other accountants in America is $72,500, or a mean hourly wage of $34.86. In particular, government accountants bring home an average of $57,880 in state government, $61,410 in local government, and $91,440 in federal government agencies annually.
Beginning Salary
When just starting a career in government accounting, individuals can expect to land within the bottom 10 percent of the profession with a yearly salary of around $40,370. While this may seem low, it’s important to remember that government accountants in senior-level positions with years of experience often break the six-figure salary mark earning over $113,740 each year.
Key Responsibilities
Government accountants are primarily given the responsibility of maintaining and assessing the financial records of government agencies. Many also will audit private corporations or sole proprietors whose financial transactions are controlled based on government regulations. On a typical workday, government accountants may be found examining financial statements, ensuring records comply with laws, computing taxes owed, inspecting accounting systems, organizing financial documentation, evaluating governmental financial operations, budgeting for public sector programs, and crafting recommendations to reduce spending. Government accountants work to guarantee that all revenue is received and spent in accordance with the country’s current regulations.
Necessary Skills
As one might expect, government accountants must possess strong mathematical skills for carefully analyzing, comparing, and interpreting numerical figures. Government accountants must have analytical abilities to quickly identify any problems in financial document and brainstorm effective solutions. Since government accountants often interact with officials and legislators, having strong interpersonal skills is important to clearly communicate financial data or concerns in an easy-to-understand manner. Most government accountants are working on multiple different projects simultaneously, so organizational and multi-tasking skills are a must to keep financial documents properly filed. Government accountants should also have great attention to detail when examining records to find any areas of inaccuracy immediately.
Degree and Education Requirements
For a career in government accounting, you’ll first need to earn at least a four-year bachelor’s degree from an accredited business school to build knowledge of essential accounting practices. Most aspiring government accountants choose to pursue an undergraduate major in accounting, finance, business administration, economics, or statistics. It can also be helpful to pair your accounting-focused major with electives in government, public administration, public finance, and political science to better understand the structure of government. In order to advance beyond entry-level, you’ll likely need to consider earning a Master of Accountancy (MAcc) or Master of Business Administration (MBA) in Accounting too.
Pros and Cons of the Position
Government accounting can be a rewarding career path for anyone with a mind for numbers looking for a stable job. Unlike the private sector, the government will never go out of business and accountants will always be needed to keep its financial records. Government accountants are able to more easily maintain a healthy work-life balance with traditional 9-to-5 hours, generous leave time, less overtime hours, and paid federal holidays. Government accounting also comes with a high salary and superior benefits. On the flip side, government accountants may find their job to become a bit monotonous and frustrating. All major and many minor decisions in government agencies have to go through formal approvals, so there’s a lack of control over finances. Although government accountants make good money, they are often paid less than their private sector counterparts with a capped earning potential too.
Getting Started
Starting in high school, you should take as many courses related to accounting, math, calculus, finance, statistics, and economics as you can. Try running for your class’ treasury position and practicing your accounting skills by creating a detailed budget plan for college. While earning your degree, you should begin sculpting your resume with accounting-related experiences in internships, part-time jobs, and volunteer/service learning programs. Head over to a local government agency and see if there’s any internships available in a financial capacity. After graduation, you can start applying for government accounting jobs. Some agencies prefer candidates who have become Certified Public Accountants (CPAs), but you can earn this certification by completing a master’s degree and passing an exam. You can also consider boosting your professional competency by becoming a Certified Fraud Examiner (CFE), Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP), or Certified Government Financial Manager (CGFM).
Future Outlook
As our economy continues to recover, government accountants will be needed to help improve the overall financial health of the country. Stricter laws are also being passed by many government agencies to avoid more financial instability and spending scandals, which means more government accountants will be hired to ensure compliance with the regulations. In fact, the Bureau of Labor Statistics predicts that the employment of government accountants and other accountants will grow faster than average at 13 percent before 2022. All levels will likely be hiring, but competition will be more competition in federal government agencies than local or state governments. Government accountants are more likely to unlock favorable prospects by earning their CPA license and having a master’s degree in accounting.
Unlike accountants in the private sector who wish to find ways to boost profit, government accountants have the unique focus of ensuring taxpayers’ resources are being used according to budget plans and legal regulations for attaining fiscal stability. From investigating white-collar crime and managing governmental finance audits to judging the effectiveness of workers’ compensation systems and predicting the impact of pending legislations, government accountants are crucial financial experts that keep our public sector running properly. If you decide to specialize as a government accountant, you’ll have the rewarding opportunity to advise elected decision makers on the best uses of available resources.
