What You Need to Know About an Accountant

An accountant is a key player in any business whether it is a large company or a small business.  An accountant is expert in the field accounting and finance, so he can help in preparation of final accounts and tax calculations. He can prepare all types of budget and can guide you over monthly expense and bills. We don’t hire an accountant to just file our tax return, but he can do more than that like he keep records of our books of account. He may choose to work for private individuals or government entities. When you are going to start a new business then you are recommended to hire an accountant. He helps with the money-related issues, financial decisions, tax returns and more. So, who is this an accountant.

Who is an Accountant:

An accountant is responsible for keeping a record of the business transactions and financial statements. It is his job to ensure that all financial transactions are legal and within the current guidelines He not only keeps a record of the business transactions but also reports company performance and issues financial statements.  The accountant monitors the financial health of any business or company by analyzing the profits and losses. Reports made by the accountant help the company to evaluate its progress and financial stability and growth.

  

Here are some of the duties that an accountant:

• Maintain and prepare monthly payrolls

• Interact with internal and external auditors

• Prepare and review invoices and other accounting documents

• Analyse and review budgets and expenditures for public and private funding

• Formulate profit and loss statements

• Analyse revenue and expenditure trends to ensure expenditure control

• Recommend appropriate budget levels and supervise financial data

• Explain accounting policies and billing invoices and to staff dealers, and clients

• Develop and maintain financial databases

• Resolve any accounting discrepancies 

An accountant is responsible for recording different business transactions, produce a number of reports and create different processes within a business.

Different Types of Transactions:

An accountant is responsible for different tasks related to business transactions and monitors the inflow and the outflow of cash.

• Issue invoice to a customer to record a sale.

• Get an invoice from a supplier to recording an expense.

• Issue a salary to record wage payment to a worker

• Reconcile a bank statement to adjust the cash account

Different Types of Reports:

The accountant is also responsible for making Financial reports and issues those financial statements are to the business owners. These reports include:

• Financial reports comprised of the statement of cash flows, income statement, balance sheet.

• Management reports customized to the needs of each entity, and cover the sales of certain product lines, sales returns, and cost variances.

• Tax reports provide details related to property taxes, sales taxes, income taxes, and are issued to government entities. 

Different Processes within a Business:

The accountant is also involved in the formation of different processes within a business, with the purpose of ensuring that assets are being properly managed. These various processes involve:

• Making shipments to customers

• Getting receipts from suppliers

• Receiving cash receipts from customers

Besides the above-mentioned roles and responsibilities of an accountant, there are many sub-fields that an accountant can specialize in. He could become tax accountants, payroll clerk, cost accountant, inventory accountant, general ledger accountant, billing clerk, and collection clerk.  The higher level of specialization raises the efficiency of certain tasks involved in accounting. You can check with business tax accountant bondi.

Based on the kind of duties and responsibilities, an accountant may be involved in different types of accounts such as Public Accounting, Private Accounting, National Income Accounting, Forensic Accounting. There are various certifications, and professional designations followed in the accounting profession. You may come across terms like a certified financial manager, certified management accountant, certified public accountant, certified internal auditor, certified financial planner, enrolled agent, certified government financial manager more.

For those planning to become an accountant, should have the ability to communicate with people and develop good problem-solving skills, besides leaning the skills of accountancy.