An accountant is a qualified person who prepares, audits, and finalizes the accounts of companies, individuals, and other entities. They prepare companies’ annual reports as well as financial statements.
Accountants also advise on investments, business strategies, and tax laws.
Academically, an accountant is more qualified than a bookkeeper.
No medium or large business can function and compete effectively in the marketplace without an accountant or a team of them. They also play an important role in most small companies. They record and monitor a business’ or organizations’ flow of money.
Accountants ensure the accuracy of every financial transaction. They also need to make sure that all transactions are legal and adhere to their country’s laws.
Accountants and their functions
An accountant describes the financial health of an individual, company, or organization by using accounting data and financial statements, which they prepare. They are experts in tax law, math, business finance, and personal finance. They are the people you need to talk to if you want to determine how profitable your company is.
They are the financial backbone of a commercial enterprise. Accountants help individuals, businesses, and other organizations define their goals and objectives. Many of them also help their clients or employers achieve them.
Types of accountants
There are many different types of accountants today. Let’s have a look at some of them.
CPA (Certified Public Accountant) or Chartered Accountant
A CPA in the United States is an upper-level accountant, i.e., the most highly qualified. A CPA-equivalent in the United Kingdom, Ireland, and many Commonwealth nations is a Chartered Accountant.
Although some of their work involves the nitty-gritty of accounting, they function more as advisers.
Auditors
Auditors examine financial statements, accounting systems, and other financial and fiscal records. Informally, we say they ‘check the books‘ to make sure everything is in order. They also point out what needs to improve and how.
Forensic accountants
In the world of accounting, these professionals are the detectives. They gather and analyze financial records to determine whether they adhere to local and national laws and standards. When the police or a supervisory authority suspects fraud, they may send in a team of forensic accountants.
Management accountants
Management accountants focus on how companies are and should be run, that is, from a financial and management viewpoint. They interpret financial data to help the directors make corporate decisions.
Their roles include a combination of management, finance, and accounting. Their aim is to help companies thrive.
Other types
There are also Cost, Government, Investment, Project, Fixed Asset, Tax, and Staff Accountants. In fact, across the world, there are literally hundreds of different job titles and qualifications for professionals who specialize in accounting.