What role does an ACCOUNTANT play in business operations?

An accountant performs financial functions related to the collection, accuracy, recording, analysis and presentation of a business, organization or company's financial operations. The accountant usually has a variety of administrative roles within a company's operations. In a smaller business, an accountant's role may consist of primarily financial data collection, entry and report generation. Middle to larger sized companies may utilize an accountant as an adviser and financial interpreter, who may present the company's financial data to people within and outside of the business. Generally, the accountant can also deal with third parties, such as vendors, customers and financial institutions.

• Financial Data Management

The accounting structure of a company is an essential component to business operations. One of the primary roles of an accountant usually involves the collection and maintenance of financial data, as it relates to a company or firm. The accountant ensures that financial records are maintained in compliance with lawful and accepted procedures and policies on the corporate level. The financial information for any organization should be kept in a pristine system because it is a key component used in operating and managing any business. Managing the financial data of an organization can also include more sophisticated duties, such as developing, implementing and maintaining financial data bases, as well as establishing and monitoring control procedures.

• Analysis and Advice

As analysts, accountants may perform certain types of analysis using financial data that is used to assist in making business decisions. From deciding which kinds of supplies to order, payment of bills to payroll, the accountant handles many intricate financial details on a daily basis. Advising on business operations can include issues, such as revenue and expenditure trends, financial commitments and future revenue expectations. The accountant also analyzes financial data to resolve certain discrepancies and irregularities that may arise. Recommendations may also involve developing efficient resources and procedures, while providing strategic recommendations for specific financial problems or situations.

• Financial Report Preparation

Accountants typically prepare financial statements that may include monthly and annual accounts based upon the financial information that is compiled and analyzed. The preparation of financial management reports can include accurate quarterly and year-end closing documents. Reports compiled may be used in connection with the continual support and management of budgetary forecast activities. The financial reports may be used by a financial director or officer for the development, implementation and operation of a company's financial software and systems, such as Hyperion, Excel and CODA Financial Management.

• Compliance

An accountant may also be responsible for ensuring that all financial reporting deadlines are met, internally and externally. For example, quarterly, semi-annual and annual reports all have specific deadlines, as well as some tax implications. Monitoring and supporting taxation issues and filings can also be a responsibility of an accountant. The accountant also usually coordinates the audit process by assisting with financial data preparation.

• External Business Affiliations

Often, accountants must work with financial professionals from the four major fields of the industry: public, management, internal auditing and government accounting. Accountants may provide data to a public accountant, who acts as a consultant, auditor and tax service professional. Corporations, nonprofits, organizations and governments use management accountants to record and analyze financial information of the businesses in which they are employed. They usually advise company executives, creditors, stockholders, regulatory agencies and tax personnel. Accountants may also work with government officials who are examining and maintaining the financial records of the private business for whom an accountant is employed, in connection with taxation and government regulations.

What kind of skills required?

Accountants and CPAs tend to excel at math. They also have excellent analytical skills and, because they have to communicate with others, often have good interpersonal skills. Though many of these individuals are already good with their finances prior to working as an accountant or CPA, a perk of the job is gaining even more financial knowledge, which can help accountants and CPAs with personal financial matters.

However, accountants need more than simply financial knowledge to do their jobs well. They must also have strong organizational skills and be extremely detail-oriented. Accounting records must be impeccable since businesses rely on them to make sound decisions. Sloppy records cannot only put a company’s financial stability in question; they may also have legal repercussions under corporate responsibility laws.

What does ACCOUNTING career entail?

Accounting Career Basics

On the most basic level, accountants and CPAs keep and inspect financial accounts for companies, government groups and individual clients. However, there is a huge range in what jobs accountants and CPAs actually take on. Some are self-employed while others work for large firms with offices across the nation.

While many accountants and CPAs work full-time, some work fewer hours throughout most of the year with long hours during tax season or the end of the budget year.

Accounting In-Depth

While associate degrees in accounting are available, most professionals in the field have at least a bachelor’s degree. Accountants with a four-year degree are able to complete most accounting duties. These include examining records, reconciling accounts, preparing financial reports and completing tax returns. In addition, these accountants may be called upon to evaluate business finances and make recommendations to improve efficiencies or reduce costs.

With more education and experience, accountants can become certified. Some financial documents, such as those submitted to the Securities and Exchange Commission, must be signed by a Certified Public Accountant. Individuals with certification may also find they have greater opportunities to advance their career to management positions or specialize in an area of interest, such as forensic accounting or taxation.

How to become an ACCOUNTANT?

HOW HOW HOW???

You will need a four year business degree to get a job as an accountant. It is imperative that you like numbers and are good in math as you will need to have a lot of math courses under your belt. Exceptional organizational and communication skills are a must, as well as operating a computer efficiently. Most all accountants now use a computer, very few still use a spreadsheet to do business.

You will need to be qualified and certified as a CPA (Certified Public Accountant in the US, or Chartered Accountant in Canada) by taking an exam, at which point you will get a license. If you pass your first attempt at the exam, then you can be licensed. If not, then you may have to go back for another year of school (Masters in Accounting) in order to attempt the exam again. After that, you can try as many times as you need, in order to pass.

A company may also require you to take even more training to be an accountant at their place of business. You can also become a member of the ACCA (Association of Chartered Certified Accountants) or the IFAC (International Federation of Accountants).

STEP TO BECOME AN ACCOUNTANT:

STEP 1: Decide between Accountant and CPA.

There is a difference between an accountant and a Certified Public Accountant. Accountants (also referred to as “public accountants”) are typically individuals hired to work in the accounting departments of businesses, but lack several of the qualifications of a CPA. Accountants, for example, may not possess state certification or license. Accountants can perform certain limited tasks, such as the preparation of financial statements. They may also prepare tax returns if they have passed the required IRS test or received a Preparer Tax Identification Number. They may not, however, conduct audits or review financial statements.

Certified Public Accountants must meet a number of specific requirements, including earning a college degree, passing all parts of the CPA exam, and working for a set number of hours (usually 1800) under the supervision of an actively licensed CPA. CPA’s can perform all of the same tasks as a public accountant, but additionally may conduct audits, review statements, and represent clients before the IRS.

In deciding which type of accountant career to pursue, an individual must honestly assess his or her personal goals and willingness to put in the considerable time and effort needed to become a CPA.

STEP 2: Earn the right Degree.

Although not required, most accountants attend college and earn a bachelor’s degree. However, a bachelor’s degree in accounting or a related field is considered the minimum education requirement for those who plan to become a CPA. Some states even require advanced coursework beyond the normal bachelor’s degree in subjects such as financial reporting, taxes, auditing and other non- accounting business areas. A total of 150 credit hours in accounting and related areas are commonly needed. Students interested in becoming a CPA should check the specific education requirements in their jurisdictions. Many CPAs also continue their post-secondary education and earn a master’s degree.

Five Popular Accounting Degrees:

Although CPAs have specific education and experience requirements, regular accountants do not. That means students have the opportunity to study in any number of related fields and still be eligible to fill accounting positions. Here are five popular degree options for accountants.

• Accounting

Accounting is the degree of choice for those who know they definitely want to go into the field. It goes by many names, including B.Acy, B.Acc, or B.Acc.Sci on the bachelor’s level. Degree programs range from associate to doctorate and cover financial record keeping and accounting principles in areas such as government, non-profit, management, income tax and more.

• Auditing

Although related to accounting, a degree in auditing is more specialized and usually offered at the graduate level. Programs and courses in auditing focus on the process of auditing financial information, ethics and responsibilities, document collect and organization of evidence.

• Business

Like finance, degrees in business may offer the opportunity to learn not only accounting but also other related skills. Business degrees provide students with knowledge in management, marketing and finance and that may qualify them for a diverse range of jobs after graduation.

• Finance

Depending on a school’s particular program, students earning a finance degree may have the opportunity to either become familiar with or learn basic accounting practices while also gaining broad knowledge about money management. Students majoring finance can specialize in any number of areas, including stock investing, money management, banking and more, all of which have varying ties to the accounting profession.

• Taxation

Degrees in taxation attract students who wish to gain a comprehensive knowledge of tax accounting, tax law, tax research and taxation procedures. In addition to serving as a degree for CPAs, master’s degrees in taxation may be good for consultants and attorneys.

Accounting degree programs are very popular and commonly available at colleges and universities throughout the United States, as well as through distance learning. Prospective students should always confirm that a program is fully accredited before beginning a course of study.

STEP 3: Pass the CPA exam.

All states require CPA candidates to pass all four parts of the CPA exam. Those four parts are: Audit and Attestation; Financial Accounting and Reporting; Regulation; and Business Environment and Concepts. The CPA exam is offered during the first two months of every quarter, and typically over the course of several days. Candidates may take the test parts in any order they choose, but once they have passed one part, they must successfully complete the other three parts within 18 months. Given its degree of difficulty and breath of subject matter, most CPA test candidates enroll in private test preparation courses.

STEP 4: Pick a Specialty.

Virtually all accountants and CPAs specialize in one or more areas of practice. The two general areas of specialization are public accounting and corporate or business accounting. A number of sub-specializations also exist, such as environmental accounting, internal auditing, managerial accounting and taxes. Often, the specialty you select coincides with the accounting degree you earned.