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Learn to become an investment accountant

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Investing is all about thinking ahead to the future. Standard bank accounts grow only by as much as you continue to put into them, with the exception of a tiny bit of interest you may earn. But by investing your money into accounts associated with some risk, you could reap the proportional rewards. Factor time into the mix and the chances of you losing this money—and there is always a chance—go down significantly. By making your money work for you, it can help save for big-time purchases down the road, like a down payment on a home or paying for a child’s college tuition.  

…by investing your money into accounts associated with some risk, you could reap the proportional rewards.

There are many different areas of finance that accountants can specialize in, including investments. With so many investment options out there, it can be helpful to work with a finance professional that understands these options and can help clients figure out which works best for them and their financial goals.

In this article

Who are investment accountants?

Investment accountants are accountants who provide investment-related services to their customers, which may be organizations or individuals. Like all accountants, they are regulated by each state’s accountancy board. Many accountants choose to pursue to licensure as a Certified Public Accountant (CPA), which involves satisfying certain education and experience requirements and passing an exam administered by the Association of International Certified Professional Accountants (AICPA).  

“Some CPAs are also certified by the AICPA as personal financial specialists (PFSs), which means they have met AICPA’s education requirements for providing financial planning services, including assessing your overall financial situation, developing a budget, setting goals for saving and investing, and developing a plan for monitoring your progress and reaching your goals,” said the Financial Industry Regulatory Authority (FINRA).  

Related professionals

Investment accountants are not the same thing as investment advisers, which are a separate but related type of investment professional.  

“An investment adviser is an individual or company who’s paid for providing advice about securities to their clients,” FINRA said. “’Investment adviser’ is a legal term that refers to an individual or company that’s registered as such with either the Securities and Exchange Commission (SEC) or a state securities regulator. Common names for investment advisers include asset managers, investment counselors, investment managers, portfolio managers and wealth managers.” 

“Financial planner,” on the other hand, is an umbrella term that encompasses numerous different financial professionals including accountants and advisers. It is not a regulated job title, meaning someone who calls themselves a financial planner could be a professional accountant or they may lack any professional credentials at all.  

The duties and job scope of investment accountants, hedge fund accountants, investment advisers and financial planners have a lot of overlap, but it is important to understand how they differ.  

What investment accounting is all about

“Investment accounts are those that hold stocks, bonds, funds and other securities, as well as cash,” FINRA said. “A key difference between an investment account and a bank account is that the value of assets in an investment account fluctuates and can, in fact, decline. In exchange for this risk of loss, investments tend to offer the potential for greater reward, especially over the long term.” 

Because investment accounts are typically meant to accrue wealth over a longer period of time, they are often utilized to save for specific long-term goals like retirement or paying for a child’s college education. If the client is a business rather than an individual or family, these investment goals may vary as they usually pertain to profitability and growth.  

As an investment accountant, you may help clients formulate a variety of investment accounts based on their particular goals and financial means. FINRA said the major types of investment accounts are retirement accounts, college savings accounts, ABLE accounts and brokerage accounts.

Retirement accounts—Retirement accounts can be split into two categories: employer-sponsored accounts (including 401(k), 457(b), 403(b) and others) and IRAs. In most employer-sponsored accounts, the employee allocates a certain portion of their salary (which may be matched by the employer) to be deducted from their salary and put into the account. “Employer-sponsored plans not only provide a mechanism for saving but also allow the money in your account to compound tax-deferred. That means that the earlier you begin to participate and the more you contribute, the greater chance you’ll have of amassing a substantial retirement nest egg,” FINRA said. In most cases, IRAs are retirement accounts that you contribute to on your own. “IRAs provide a flexible way to set aside money for your retirement. You can put money into your IRA every year you’re eligible, even if you’re also enrolled in another kind of retirement savings plan through your employer. If both you and your spouse earn income, each of you can contribute to your own IRA up to the annual limit.” 

College saving accounts—College savings accounts do just that—they save for a college education. “The good news is that there are a number of college savings options that offer tax advantages, such as earnings that grow tax-deferred and tax-free withdrawals on qualified educational expenses. In addition to the federal tax benefits of many college savings options, there may also be state tax benefits.” Examples of college savings accounts include 529 plans, Coverdell Education Savings Accounts and savings bonds.

ABLE accounts—These accounts allow people with disabilities to save for disability-related expenses without losing their eligibility for public benefits programs like Medicaid and Supplemental Security Income (SSI). Plus, these accounts provide tax advantages.  

Brokerage accounts—Brokerage accounts allow you to buy and sell many different types of investments, such as stocks, bonds, annuities, crypto assets and more. The two main options for investors are cash accounts or margin accounts. As the name suggests, when you buy securities with a cash account, you must do so using cash, paying for the purchase in full. If you want to buy $1,000 worth of stock, you must have $1,000 in cash in your account before your buy order settles, which is generally one day after you place the order,” FINRA said. “A margin account allows you to borrow money from a brokerage firm to buy securities. This is also the only type of account in which investors can engage in short selling. In a margin account, you deposit a portion of the purchase price of the security in the account and borrow the rest from the firm.”

Where investment accountants work

Investment accountants may work for accounting firms, within the finance department for companies and organizations or offer their services as self-employed individuals. According to the U.S. Bureau of Labor Statistics (BLS), some of the top employer industries for financial and investment analysts are:  

  • Securities, commodity contracts and other financial investments and related activities 
  • Professional, scientific and technical services 
  • Management of companies and enterprises 
  • Credit intermediation and related activities 
  • Insurance carriers and related activities  

Requirements to be an investment accountant 

Becoming an investment accountant is not much different from becoming a general accountant in terms of education and licensure. The key lies in what comes after—the jobs you take and who you work for. With a clear goal in mind and by pursuing some investment-specific certifications, you can establish yourself as a knowledgeable investment professional in time.  

Education

You can expect to need at least a bachelor’s degree in order to become an accountant, but many also have master’s degrees because of the education needed to become a CPA. This is because many states require that you complete at least 150 college credits to qualify for licensure, but a bachelor’s degree typically only consists of about 120 college credits. 

If you know you want to be an investment accountant, try to ensure you take college courses that explore what investing is all about. Though it’s likely you’ll learn about investment accounts in most accounting programs, take any applicable electives if they’re offered.  

Licensure

Though not necessarily required for everyone, many accountants eventually seek to get licensed as a CPA. If you want to work as an investment accountant for a business or corporation, they may require this. It can also be a good idea if you intend to be self-employed by upping your credibility.  

Each state sets its own requirements to become a CPA, but in most places, you must satisfy the following:  

  • Pass the CPA exam administered by the AICPA   
  • Complete 150 semester hours (credits) of higher education with sufficient coursework in accounting 
  • Have some applicable work experience, typically about one year 

Certifications for investment accountants

In addition to becoming a CPA, you may want to pursue other certifications for financial professionals such as:  

  • Personal Financial Specialist (PFS) from the AICPA   

For a more exhaustive list of the different financial credentials available, check out FINRA’s website.

How much do investment accountants earn?

Pinning down your earning potential as an investment accountant can be challenging. The BLS does have salary data for accountants in general, but not for this specific niche. Plus, it’s always imperative to bear in mind that factors such as location, education level, experience, credentials and more all affect an individual’s salary.  

According to the 2024 Occupational Employment and Wage Statistics from the BLS, the median annual salary for accountants and auditors is $81,680. The states with the highest median salaries tend to be concentrated on the East and West Coast. Depending on their job scope and where they work, it’s possible that investment accountants may be considered personal financial advisers or financial and investment analysts. According to the BLS, these professions have a median annual salary of $102,140 and $101,350, respectively.  

By looking at all these job categories holistically, it can give you a better idea of what you could make as an investment accountant.  

Final say

If you’re drawn to the idea of helping people and/or businesses reach their long-term financial goals through wise investment practices, a career as an investment accountant could be a great fit for you. A bachelor’s degree in accounting or something similar lays the foundation for a career in finance, and many choose to pursue additional education if they wish to become a licensed CPA. Hit our Find Schools button to find programs near you today.  

Published: January 5, 2025

kendall upton

Written and reported by:
Kendall Upton
Staff Writer and Editor