7 Types of Accounting You Can Specialize In

Accounting offers a wide variety of paths you can specialize in. You could become a forensic accountant who traces financial transactions for law enforcement or a tax accountant who helps individuals and businesses file returns.

Accountants are needed across nearly every industry. Add to that a looming accountant shortage and faster-than-average projected job growth, and choosing an accounting specialization can lead to better job prospects and job stability.

Read on to learn more about the most common types of accounting you can specialize in.

In an academic setting, an accounting specialization usually refers to a course track focused on a particular area within this field.

For example, a specialization in a master’s of accounting program might include 9-12 credit hours of coursework focused on a particular topic, such as audits or taxes. This can help prepare you for more advanced or niche roles after graduation.

Keep in mind that you don’t need to choose a specialization during your undergraduate or graduate studies to break into that accounting specialty later. If you didn’t specialize while studying, you can still build expertise through on-the-job work experience or by pursuing professional certifications.

“Specializing [in an accounting area] will help you stand out in the job market and can be an excellent route to maximizing your earning potential,” says Colin Smith, certified public accountant (CPA) and financial reporting consultant. “At the top levels of the profession, specialities and deep expertise on in-demand topics are what can command the highest fees and ensure job stability.”

Here’s a list of common accounting specializations that you might consider during your studies or career:

Auditors work in both the public and private sectors making sure an organization’s finances are accurate, compliant, and managed properly.

Typical job responsibilities for auditors include:

Auditors can work directly for the organization they’re employed by. They can also do external audits, which means they’re hired by a third party to review financial records.

Auditing is a common concentration in accounting programs. It’s also usually covered in a degree’s core coursework, even if you don’t choose an auditing specialization track.

There are entry-level auditing jobs available, meaning you don’t need to specialize during your studies or have prior experience to get started. However, if you want to stand out, you can pursue professional certifications to boost your resume. Certified information systems auditor (CISA) and certified internal auditor (CIA) are both common professional auditing certifications.

Cost accountants focus mainly on cost efficiency, which means analyzing expenses to help organizations get the most value for their money when it comes to spending.

As a cost accountant, you’ll typically:

Most roles typically require a few years of accounting experience, but there are entry-level positions, like junior budget and cost analyst, that can be a great starting point.

Earning a professional certification, such as the certified professional cost accountant (CPCA) certification from the Global Association for Quality Management, can also boost your prospects.

Governmental accountants work in the public sector at the local, state, and federal levels. They help manage public funds, ensure compliance with regulations, and play a key role in how the state and federal government keep track of expenditures.

Common duties include:

Some schools, like Rutgers University, offer a master’s degree in government accounting with courses in government budgeting systems, ethics, and public sector auditing.

If you already have a degree but want to specialize in this area, the Association of Government Accountants offers a certified government financial manager (CGFM) certification.

Financial accounting focuses on recording and reporting an organization’s financial transactions. These statements are critical to understanding how a business is performing, so financial accountants are responsible for keeping their finger on the pulse of an organization’s overall financial health.

A financial accountant’s job usually entails:

A specialization in financial accounting can open up roles beyond traditional accounting jobs. Financial analyst roles, for example, are projected to grow at a faster-than-average pace from 2023-2033, as per the BLS.

Forensic accountants investigate financial crimes by tracking funds and uncovering fraud. They often work with law enforcement and government agencies tasked with identifying financial misconduct.

Forensic accountants typically:

Forensic accountants are typically highly experienced professionals with years of accounting background under their belts. They also often pursue a master’s in forensic accounting or professional certifications, like the certified forensic accountant certification offered by the American Board of Forensic Accounting.

Management accounting has an internal focus. Rather than preparing outward-facing financial statements for stakeholders and investors, management accountants focus on reviewing internal data to help leaders and managers make strategic decisions.

A management accountant’s job typically entails:

Management accountant positions are often available for early-career professionals. However, a master’s degree with a specialization in management accounting can improve your chances of landing a role.

A certified management accountant (CMA) designation is also useful, but you’ll need two years of continuous work experience to qualify.

Tax accountants help individuals and businesses prepare taxes and navigate tax regulations. They can work at major accounting firms, small businesses, or in personal advisory roles.

Their duties include:

Tax accountants who hold CPA certification can take on additional responsibilities, such as representing clients in official IRS proceedings.

You can specialize in tax accounting by taking tax-focused electives in college or by gaining experience in tax-related accounting roles.

These are some of the factors you should keep in mind when determining the right accounting specialization for you:

You should also think about your overall interests: Do you prefer investigative work (forensic accounting), financial strategy (managerial accounting), or compliance (tax and auditing)?

“Consider what it would be like to work at the top of your profession and whether that’s something you’d be interested in,” says Smith. For example, he mentions forensic accounting can be an interesting field, but these professionals are often called to testify in court, which might not appeal to everyone.