Accounting Consultant Meaning, Role, Pros & Cons of Hiring

A person tasked with assisting a company’s accounting department is known as an accounting consultant. The accounting consultant also assists organizations in adhering to state and federal legislation’s legal regulations. An accountant consultant is a professional who provides strategic guidance and financial expertise to businesses, leveraging their knowledge of accounting principles.

While there are many benefits to hiring an accounting consultant, businesses must also consider the costs. They are well-versed in the latest financial regulations, accounting practices, and industry trends, ensuring businesses can operate efficiently and comply with all necessary rules and regulations. One of the key benefits of hiring an accounting consultant is the specialized knowledge and expertise they bring to the table. This analysis helps the consultant identify areas of strength and weakness within the company’s finances, which can guide strategic planning and decision-making.

Cons of Being an Accountant Consultant

It is also through the accounting consultant’s help that improvements in the accounting process are proposed, the determination of problematic areas in the workflow, possible issues in the future, and everything that needs upgrading. The accounting consultant also helps businesses conform to legal policies set about by State and Federal legislation. To become an accountant consultant, you need a solid educational foundation in accounting, professional certifications, practical experience, and a diverse skill set. Another advantage to working for a staffing or consulting services firm is that they offer benefits, such as health insurance, vacation time, bonus pay, and, in some cases, even free CPE. Independent consultants would need to secure health insurance and similar benefits on their own. When working with a staffing or consulting services firm, you register and are interviewed and onboarded, and the firm will match you with potential employment opportunities.

• These professionals ensure smooth financial operations, regulatory compliance, and strategic financial planning.
• Many CPAs who have made the leap to consulting, whether on their own or working with a staffing company, have found it to be a rewarding career move.
• The difference in salaries amounts to general ledger accountants earning a $4,264 lower average salary than accountant/consultants.
• Their work in this area might involve detailed evaluations of financial statements, identifying risks, detecting inefficiencies, and assessing overall financial performance.
• These consultants are typically accredited accountants with a comprehensive understanding of business and finance, and they use this knowledge to offer expert advice and provide valuable services to their clients.
• If you’re selling your consulting services through an accounting firm or management firm, you may not have to look very far for consulting clients.

Ashley Donohoe started writing professionally in 2010 about career, business and technology topics. She has a Master of Business Administration degree from Western Governors University along with eight years of experience managing all aspects of her small business. Some other places where her business writing appears include JobHero, LoveToKnow, PocketSense, Bizfluent and Study.com.

Access to Expertise and Specialized Knowledge

They can provide their services as needed, allowing businesses to adjust their use of accounting services as their needs change. The results of this analysis are often presented to the client in the form of detailed financial reports. Accounting consultants play a crucial role in the financial success of businesses. Preparing and evaluating financial documents, recognizing chances for expansion in the financial industry, optimizing accounting systems, and projecting future earnings are among their responsibilities. The role of an accounting consultant is multifaceted and of paramount importance in the business world.

Additionally, accountant/consultants earn the highest salaries in the finance with average pay of $68,479 annually. On average, senior accountant analysts earn a $12,452 higher salary than accounting consultants a year. As a senior accountant analyst, your main role is to provide professional guidance to a company. You need to have excellent preparation skills to create financial reports that clearly state the expenses and forecast the company’s financial future. Moreover, as a senior accountant analyst, you are supposed to give general operational assistance to the company’s management.

Provide Budget Management and Financial Forecasting

Spending time in various accounting roles—be it in a small firm, a large corporation, or independent practice—provides the valuable practical experience needed to understand the intricacies of the job. They might be independent professionals, members of an accounting firm, or key players in the finance departments of large corporations. Many CPAs who have made the leap to consulting, whether on their own or working with a staffing company, have found it to be a rewarding career move. Consulting can be a way to finish up your career until you’re ready to retire from work altogether, or serve as a steppingstone at times when you are between permanent employers or need greater flexibility. If you set up a home-based office and plan to have business-related professionals come to your home, you will need to determine what type of business-related liability and/or property insurance to obtain. If you have homeowner’s or renter’s insurance, you should inquire with your insurance company to determine what is covered.

• Generally speaking, certified public accountants are paid $12,395 higher than accountant/consultants per year.
• They also produce and file financial reports and tax paperwork, conduct tax research, and offer ways to improve financial reporting systems in collaboration with business leaders.
• Accounting services firms pay $83,000 on average, while management consultancy services firms offer $80,840 on average.
• By handling complex financial tasks, consultants allow businesses to focus on core operations, increasing productivity and efficiency.
• For comparison, accountant/consultants earn the highest salary in the finance industry.

By taking over complex financial tasks, consultants allow businesses to concentrate on their core operations, which can lead to increased productivity and efficiency. Accounting consultants use specialized knowledge to assist companies in managing financial resources, ensuring legal compliance, and making strategic decisions based on accurate financial information. If you’re looking for a way to gain better financial control of your rapidly growing business, and you think outsourced accounting services may be one way to do it, consider how accounting consultants can help.

Careers Related to Accounting

Though organizations are seeking consultants with more general skill bases, the most in-demand accounting consultants are those with specialized skills (see “The Most Sought-After Skills for Consultants,” below). “That’s not to say that if you’re just a good controller, you can’t find a job,” Plato said. “But if you’ve been doing SEC reporting for the last 15 years, for example, you’re going to be our go-to more than a controller that’s just dabbled in it.” Since so few accountants are unemployed, open positions are going vacant for longer, and organizations are likely to consider hiring consultants on a short-term basis, said Maureen Hoersten, COO at Chicago-based staffing firm LaSalle Network. It can take three to four months to fill a high-level vacancy, such as a CFO or controller position, and organizations may hire a consultant in the meantime. They may also seek consultants because they are expanding or relocating and need someone to assist during a transition or to help implement software.

As a consultant, you can leverage your accounting skills and knowledge to help businesses improve their performance, efficiency, and compliance. However, finding consulting work can be challenging, especially if you are new to the field or lack a strong network. In this article, we will share some tips on how to prepare, market, and deliver your accounting consulting services. An accounting consultant provides clients, such as companies and individuals, incorporate your business online with services that help them analyze financial information so that they can make important business decisions. Their responsibilities involve creating and analyzing financial documents, looking for financial areas needing improvement, optimizing accounting procedures and forecasting future profits. Accounting consulting jobs require a strong background in financial controls, regulations and accounting procedures to tailor services to the client.