What does an ACCOUNTANT do?

Well, an accountant must exercise due care, and must follow established conventions and standards to present a 'true and fair view' of the financial position of an entity. They owe these ethical and professional obligations to the management, stock holders, investors, creditors and regulatory and taxation authorities. An accountant describes the health of a company, organization or individual, by using their skills in math, accounting, law and finance. They analyze profits and losses, providing information that investors and business owners need in order to evaluate how a company is doing over a period of time. This information forms the basis of a company's report and legal filing reports. The following are some of the duties that an accountant may have to perform:

• Determines payroll requirements; maintains payroll data; prepares and processes monthly payrolls.
• Interacts with internal and external auditors in completing audits.
• Explain billing invoices and accounting policies to staff, vendors and clients.
• Prepare and review budgets, revenue, expenses, payroll entries, invoices, and other accounting documents.
• Analyze and review budgets and expenditures for local, state, federal and private funding, review contracts and grants.
• Prepare profit and loss statements and monthly closing and cost accounting reports.
• Analyze revenue and expenditure trends and recommend appropriate budget levels, and ensure expenditure control.
• Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions.
• Supervise the input and handling of financial data and reports for the company's automated financial systems.
• Resolve accounting discrepancies.
• Establish, maintain, and coordinate the implementation of accounting and accounting control procedures.
• Recommend, develop and maintain financial data bases, computer software systems and manual filing systems.

Types of Accounting:

Public Accounting 

This would be an accounting service to the general public, and is considered to be more professional than private accounting. Certified and non-certified public accountants can provide public accounting services.

Private Accounting 

 

This would be accounting that is limited to only a single firm, where an accountant receives a salary on an employer-employee basis. This term is used even if the employer is in a public corporation.

National Income Accounting 

Rather than the usual business entity concept, national income accounting uses the economic or social concept in establishing accounting. This type of accounting is responsible in providing the public estimates of a country's annual purchasing power. The GNP (gross national product) refers to the total market value of all the goods and services produced by a country, usually within a calendar year.

Fiduciary Accounting 

Fiduciary accounting is used when setting an estate and disturbing its assets. Trusts must be administered using fiduciary accounting. Fiduciary accounting is also used when assets are managed on behalf of minor children until they reach the age of majority. Fiduciary accounting is used when managing assets for the disabled.

Fund or Governmental Accounting 

This type of accountant will work for a non-profit organization or a branch or unit of any level of government. The double-entry system of accounting with journals and ledgers is used, the same as conventional accounting. The services of private or public accountants can be used, like any business entity. Special funds accounting is used for control, since profit motive cannot be used as a measure of efficiency.

Forensic Accounting 

Forensic accounting is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation. "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work. Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial. All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, construction, or royalty audits.

Investment Accounting 

Investment accounting, portfolio accounting or securities accounting - all synonyms describing the process of accounting for a portfolio of investments such as securities, commodities and/or real estate held in an investment fund such as a mutual fund or hedge fund.