In this 1980 episode, Jobman Caravan explores the diverse world of accounting careers, focusing on two primary paths: public accounting and government accounting. Host Bill Terrell provides comprehensive information about the educational requirements, salary expectations, and day-to-day responsibilities of certified public accountants and government revenue agents, offering valuable guidance for those considering a career in the accounting profession.
The Role of a Certified Public Accountant (CPA)
The episode begins with an in-depth look at the multifaceted role of a certified public accountant. CPAs serve in several key capacities:
- Auditor - The primary function involves attesting to the fairness of financial statement presentations, providing an independent opinion on whether management-prepared financial statements accurately reflect an entity's financial position.
- Tax Advisor - Rather than simply preparing returns after year-end, effective CPAs work continuously with clients throughout the year for tax planning purposes. CPAs help clients make informed decisions about equipment purchases versus leasing arrangements and other financial choices based on their tax implications.
- Management Advisory Counselor - This role covers a broad spectrum of services, from helping clients transition from manual accounting systems to data processing systems, to providing better management information for day-to-day decision making.
- Bookkeeping Services - Some CPA firms offer "write-up services" for clients who lack the staff or resources to maintain their own books, though this varies by firm.
Educational Requirements and Career Path
Becoming a CPA in 1980 required meeting stringent requirements:
- A Bachelor of Science degree from a college recognized by the South Carolina Board of Accountancy
- Passing the uniform CPA examination administered nationally by the American Institute of Certified Public Accountants
- A minimum of two years' experience in public accounting
The episode emphasized that while entry-level salaries ranged from $13,000 to $15,000 annually (with adjustments possible for advanced degrees or exceptional academic performance), the real financial rewards came with experience and partnership advancement.
As one professional candidly advised: "Don't come into it with the expectations that you're going to initially make a lot of money and that you're going to not do a lot of work." The field was described as extremely demanding and competitive, particularly during tax season with its overtime requirements and constant deadlines.
Government Accounting Opportunities
The episode also explored federal government accounting positions, highlighting two distinct roles:
- Tax Auditor - These professionals serve as "fact finders," gathering information from taxpayers to determine the correct tax liability. They primarily work with individual tax returns from wage earners, professionals, and small businesses. Entry-level positions started at GS-5 ($11,243 annually) or GS-7 ($13,925 annually), depending on qualifications.
- Revenue Agent - These professional accountants handle more complex returns from higher-income individuals, corporations, and partnerships. They work independently, scheduling their own appointments and conducting audits primarily at clients' places of business. Most revenue agents were hired at Grade 5 ($11,200) or Grade 7 ($13,900) for those with exceptional academic achievement.
Both positions required taking the PACE examination and offered comprehensive six-month training programs combining classroom instruction with on-the-job experience under experienced mentors.
Essential Skills and Advancement
Government accounting professionals emphasized the importance of interpersonal skills, noting that success required the ability to "meet and deal with all kinds of people" from various educational and socioeconomic backgrounds. A certain degree of assertiveness was also necessary, balanced with the ability to make taxpayers feel comfortable despite the often intimidating nature of IRS contact.
For those interested in advancement, management positions such as group manager were available, overseeing multiple revenue agents and tax auditors while maintaining responsibility to both employees and the general public.
Career Outlook and Advice
Employment for accountants was expected to grow faster than average through the 1980s due to increasing pressure on businesses and government agencies to improve budgeting and accounting procedures.
For young people considering accounting careers, professionals recommend taking advantage of all available accounting courses and developing strong communication skills, both written and oral, as these "meet and deal qualities" were essential for success.
Side Notes
- The CPA license now requires 150 credit hours in most states
- Government GS pay scales continue with updated salary ranges
- Modern entry-level accounting salaries have increased significantly when adjusted for inflation
