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Accountant-contractor vs cost accountant

The differences between accountant-contractors and cost accountants can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an accountant-contractor and a cost accountant. Additionally, a cost accountant has an average salary of $60,528, which is higher than the $56,906 average annual salary of an accountant-contractor.

The top three skills for an accountant-contractor include reconciliations, general ledger accounts and payroll taxes. The most important skills for a cost accountant are reconciliations, variance analysis, and GAAP.

Accountant-contractor vs cost accountant overview

Accountant-ContractorCost Accountant
Yearly salary$56,906$60,528
Hourly rate$27.36$29.10
Growth rate6%6%
Number of jobs60,02439,925
Job satisfaction--
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 77%
Average age4444
Years of experience44

What does an accountant-contractor do?

An accountant contractor directly manages a customer's business. The contractor works exclusively on the company and organizes all its financial reports. The accountant contractor controls, inspects, and encodes all the company's financial transactions, ensuring that everything is well-accounted for and adequately documenting its activities. The contractor must be licensed, have expert skills in accountancy, be well-organized, have a high level of communication skills, and work under pressure.

What does a cost accountant do?

A cost accountant specializes in determining the total cost incurred by a company from producing goods and services. Through the various financial data they collect, the cost accountant will devise plans and strategies that will be a vital factor in the next budget and marketing preparations of a company. Aside from this, a cost accountant is responsible for various tasks such as conducting research and analysis in different areas, keeping financial records and inventory, producing financial reports involving profitability and expenditures, and proposing a budget and other financial plans.

Accountant-contractor vs cost accountant salary

Accountant-contractors and cost accountants have different pay scales, as shown below.

Accountant-ContractorCost Accountant
Average salary$56,906$60,528
Salary rangeBetween $44,000 And $73,000Between $45,000 And $81,000
Highest paying CityNewark, NJEdison, NJ
Highest paying stateNew JerseyNew Jersey
Best paying companyBroadridgeGoogle
Best paying industryEnergyEnergy

Differences between accountant-contractor and cost accountant education

There are a few differences between an accountant-contractor and a cost accountant in terms of educational background:

Accountant-ContractorCost Accountant
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 77%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Accountant-contractor vs cost accountant demographics

Here are the differences between accountant-contractors' and cost accountants' demographics:

Accountant-ContractorCost Accountant
Average age4444
Gender ratioMale, 43.8% Female, 56.2%Male, 52.6% Female, 47.4%
Race ratioBlack or African American, 8.9% Unknown, 4.0% Hispanic or Latino, 11.2% Asian, 12.1% White, 63.3% American Indian and Alaska Native, 0.5%Black or African American, 8.7% Unknown, 4.0% Hispanic or Latino, 11.0% Asian, 12.2% White, 63.7% American Indian and Alaska Native, 0.5%
LGBT Percentage7%7%

Differences between accountant-contractor and cost accountant duties and responsibilities

Accountant-contractor example responsibilities.

  • Manage and monitor accounting procedures for compliance with Sarbanes-Oxley and coordinate and facilitate external audit requirements.
  • Assist in preparing tax returns and financial statements and record various transactions in QuickBooks
  • Recommend processes and tasks to prepare SOX reviews and questions.
  • Assist CPA with all require tax documents, reports and follow up.
  • Assist in ACH process of setting up new vendor for direct deposit.
  • Consult with CPA on behalf of business presenting all financial materials to prepare for end-of-year taxes.
  • Show more

Cost accountant example responsibilities.

  • Manage ledgers and perform month end journal entries.
  • Manage the payroll with ADP system and account receivable.
  • Manage costing control as well as accounts payable (A/P) and accounts receivable (A/R).
  • Prepare internal financial reports for treasury manage accounts include in external compliance reports.
  • Prepare raw material and WIP inventory reconciliations.
  • Develop tracking of GAAP inventory valuation for all inventory inherit from the bankrupt former company.
  • Show more

Accountant-contractor vs cost accountant skills

Common accountant-contractor skills
  • Reconciliations, 14%
  • General Ledger Accounts, 9%
  • Payroll Taxes, 5%
  • Balance Sheet Accounts, 5%
  • Account Reconciliations, 5%
  • Purchase Orders, 4%
Common cost accountant skills
  • Reconciliations, 9%
  • Variance Analysis, 6%
  • GAAP, 4%
  • Account Reconciliations, 3%
  • Cost Analysis, 3%
  • Financial Analysis, 3%

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