In the corporate world, project accounting is a unique specialty area that focuses on creating financial reports specifically for tracking the monetary aspects of projects. Project accountants play an important role in helping project managers and other company executives monitor the financial status of the corporation’s various operations. Sometimes referred to as cost accountants, project accountants typically work on a project-by-project basis for private corporations in virtually all industries to ensure projects stay on budget. Project accountants work hard to accumulate all of the project’s financial data in an effort to minimize extraneous production costs and maximum the company’s profitability. Below we’ve created a detailed job profile to explain what accounting professionals can expect from becoming a project accountant.
Salary
According to the Bureau of Labor Statistics, all 1.18 million accountants working across America earn an average yearly wage of $73,670, which is equivalent to around $35.42 per hour. In particular, Robert Half 2015 Accounting & Finance Salary Guide shows that the average annual salary range for project accountants in corporate accounting is between $66,750 and $69,750.
Beginning Salary
When just starting out in project accounting with less than a year of experience, accountants can expect a beginning annual salary from $44,750 to $57,750. However, it’s important to remember that project accountants with more experience and managerial responsibilities often break the six-figure salary mark by bring home up to $116,500 each year.
Key Responsibilities
Project accountants are given the overall responsibility of tracking the financial progress of projects to provide helpful information that business managers can use internally to improve profitability. On a typical day, project accountants may be involved in maintaining project-related record systems, approving project expenses, performing cost assessments, authorizing the transfer of expenses, reviewing invoices or time sheets, investigating project variances, facilitating the billing process, creating tax returns, and compiling data for auditors. Project accountants typically report directly to management to give essential advice on a project’s cost-effectiveness, expenditures, projected profit, and remaining funding. Duties can vary for each project accountant depending on the specific aspects of the company’s business plans.
Necessary Skills
In order to be successful, project accountants must have good oral and written communication skills to effectively convey financial information to managerial professionals leading the project. Having analytical skills is essential for project accountants to quickly identify any issues in a project’s expenses and suggest effective solutions to management. Being detail-oriented with organizational skills is important because project accountants must play close attention to the numbers to accurately track the project’s progress. Project accountants should have decent math skills to analyze and interpret every fact and figure involved in a project. Using accounting software and computer applications to create spreadsheets is common, so project accountants should also have a certain level of technical proficiency.
Degree and Education Requirements
Before jumping into the fast-paced field of project accounting, it’s generally required that individuals hold at least a bachelor’s degree from an accredited business school. Most aspiring project accountants earn their four-year undergraduate major in accounting, but it’s also possible to unlock this career with a degree in business administration, mathematics, statistics, finance, or economics. For the best job preparation, make sure you fill up your course schedule with courses in cost accounting, auditing, taxation, financial reporting, managerial accounting, project management, assurance, and risk management. Project accountants can also advance their careers more rapidly into senior-level leadership by returning to graduate school for a Master of Accounting (MAcc) or Master of Business Administration (MBA) in Accounting.
Pros and Cons of the Position
Project accounting can be a rewarding career choice for individuals who thrive in working closely with members of a team and solving some challenging financial problems. Project accountants benefit from above-average salary potential, plenty of areas for advancement, steady job stability, and a range of employment opportunities in various sectors. Project accountants may have the ability to work up to management accountant, treasurer, or even chief financial officer with time. On the flip side, project accountants have a typical office job with no actual heavy lifting other than their briefcase. Tracking finances can become monotonous and tedious after all without much excitement. Many project accountants will work long hours beyond the normal 40-hour week and on weekends, especially when project deadlines are approaching.
Getting Started
While you’re still enrolled in your degree program, you can get started on your ambitions in project accounting by completing an internship, landing a part-time entry-level accounting job, or even volunteering your accounting skills for a certain project. Build your resume with relevant work experience that will show future employers that you possess the know-how, skills, and attributes needed for project accounting. Your bachelor’s degree will then qualify you for taking on your first project accountant job right out of college. Although being a CPA isn’t necessary to work in project accounting, you may want to consider this added credential for advancement later on. Eligibility requirements can vary, but you’ll likely need to have a master’s degree and at least two years of accounting experience to take the Uniform CPA exam. Some project accountants also benefit from the Certified Management Accountant (CMA) credential too.
Future Outlook
As our country’s economy finally reaches solid ground again, it’s expected that there will be a rather large demand for project accountants to help manage the finances on the newest business ventures of companies in nearly all industries. Project accountants will be needed for using their accounting expertise to keep projects on budget, ensure compliance with stricter government regulations, and help the business thrive in our competitive global market. In fact, the Bureau of Labor Statistics predicts that the employment of project accountants and other accounting professionals will grow slightly faster than average at 13 percent before 2022. Project accountants can expect the best job prospects with a master’s degree at manufacturing companies, private corporations, non-profit organizations, and other business enterprises.
Overall, companies spend millions and billions of dollars annually to complete internal projects, such as building a new facility, implementing new software, or devising a new product. Project accountants work with project managers to carefully monitor the monetary details of these projects to ensure the company is making good financial decisions. If you choose to specialize your career as a project accountant, you’ll work behind the scenes to make certain that actual project costs align with the budget plan to maximize profitability.
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