Director of Accounting Career and Salary Profile
Experience and education can help you rise through the ranks in a successful accounting career and attain a challenging and rewarding position as director of accounting. Organizations of all types and sizes – from insurance and financial service firms, to manufacturing and high-tech companies, to healthcare facilities and government agencies – need qualified finance and accounting professionals with up-to-date skills and advanced knowledge to oversee their finances. If you aspire to become director of accounting for a top employer, an MBA program with a specialization in Accounting and Finance can help you achieve that goal.
Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), employment of accounting professionals will grow much faster than other occupations. Job growth will occur as more complex financial reporting requirements spur demand for qualified directors of accounting who can oversee an organization’s financial strategy. Certified Public Accountants (CPAs) and those with advanced degrees should have the best prospects for high-level accounting careers.
Director of Accounting Job Duties
The director of accounting typically provides consultant-level services to an organization’s controllers and finance personnel. Collectively, their goal is to fulfill revenue objectives and adhere to accounting and reporting policies. Common job duties for directors of accounting include reviewing and analyzing finances, ensuring compliance with regulations and refining reporting documentation.
At the director level, responsibilities also include verifying the integrity and accuracy of financial operations, safeguarding organizational assets and developing efficient business processes to record revenue.
In some firms, the director of accounting is responsible for overseeing certain contracts as well as computer hardware and software system acquisitions, particularly those affecting financial reporting. Others support company initiatives by directing stock option accounting, leading strategic planning for accounting policies or maintaining internal controls over financial transactions.
Depending on company size, the director of accounting typically manages personnel, which can range from a small staff to one or more departments. Professionals in this role also serve as liaison between accounting and other department heads as well as external advisors.
A director of accounting usually works in a comfortable office environment. Depending on the size of the company, travel to satellite offices or industry conferences may be required. At certain times of the year – such as quarter-end and year-end reporting periods – directors of accounting may put in extra hours to meet important deadlines.
Director of Accounting Salary Potential
According to national salary data on PayScale.com, as of December 2010, directors of accounting had a median total income of about $102,906 per year, with those in the 25th to 75th percentile earning between $73,233 and $132,578 in total pay.
PayScale.com data also indicated that directors of accounting with a master’s degree can earn significantly more than those with only a bachelor’s degree. In fact, based on 75th percentile salary figures, graduates with an MBA earned $134,347 per year while those with a BA in Accounting earned $104,278 per year – a differential of nearly 29%.
With additional experience, directors of accounting can move into roles of increasing responsibility, resulting in much higher potential annual pay. A sampling of executive accounting positions on PayScale.com in December 2010 revealed the following salary ranges:
| Executive Accounting Salary Ranges by Job | |
|---|---|
| Finance Director | $71,669 to $143,065 |
| Chief Financial Officer | $85,687 to $169,954 |
| Vice President of Finance | $103,979 to $193,532 |
The data shows that the top salaries generally go to those with solid experience and the advanced education employers need to remain competitive in a changing global business environment.
Education and Training
Most director of accounting positions require at least a bachelor’s degree in accounting. However, competition is keen for high-level positions with leading companies, and preference is often given to candidates with a master’s degree. In addition, director-level roles generally require a number of years of experience, as well as CPA status.
Accounting professionals who wish to advance into a director of accounting position can improve their career prospects by enrolling in an MBA program with a specialization in Accounting and Finance. Coursework typically includes managerial economics, investment management, financial management policy and strategic cost management.
Employers can be confident that professionals who have earned an MBA with a specialization in Accounting and Finance are able to:
- Apply modern theories of leadership, management and negotiation to real-world business challenges.
- Use critical thinking to effectively solve problems.
- Manage financial risk through the use of statistics and economic data.
- Lead operations, personnel and financial initiatives that contribute to growth and profitability.
- Leverage advanced skills and knowledge to succeed as a director of accounting.
Would You Thrive as a Director of Accounting?
Aspiring to become a director of accounting is an attainable goal for individuals with strong technical accounting knowledge and proven management abilities, as well as a comprehensive understanding of the role accounting and finance play in today’s business environment. If you possess excellent problem-solving, communication and leadership skills, an MBA with a specialization in Accounting and Finance can propel your career to the next level and help you attain a rewarding director of accounting position.
