There is this misconception that Accounting is relatively straightforward and easy, yet in reality, Accounting is a critical business function that involves a substantial amount of problem-solving. Our team of professional accountants outline a few points to help individuals understand the role of an Accountant.
What is an Accountant?
Accountants are fluent in a language that allows them to understand the business culture as a whole. An accountant compiles, analyses, verifies and prepares financial records for a company. They are responsible for interpreting and explaining their findings in financial reports. Their conclusions should suggest ways to reduce costs and improve profits.
The term accounting is extensive and brings with it a level of confusion on the meaning behind an accountant. An accountant can specialise in the following sectors;
Financial accounting
A company’s financial transactions are tracked, summarised, and financial reports are then created. These documents will provide insights for shareholders to assess the value of a company.
Managerial accounting
Relevant and crucial information is tracked for the management of the company to be able to make strategic decisions.
Cost accounting
The analysis of records and depreciation of data, allows cost accountants to determine the costs of products and services.
Tax accounting
Government, state or local tax returns are prepared according to prescribed rates, laws and regulations. Tax accountants can further specialise in corporate, individuals income or property tax.
Government accounting
Accountants at the government level, investigate the white-collar crime or manage public funds. Accountants at state and local levels, work to control the use of local revenues, investigate fraud and perform lower-level audits.
Non-profit accounting
Here, accountants assess the organisation’s financial situation to minimise costs and maximise their service.
Forensic accounting
These are individuals classified as investigatory accounting professionals who are changed with uprooting questionable financial data and uncovering fraud, embezzlement, money laundering and other financial misconducts.
International accounting
Accountants in this sector work with companies or organisations that conduct business internationally. their role is to recast financial statements to align with their country’s principles and to determine what the reports reveal.
Accounting information system services
These individuals aid companies to develop accounting information systems, assess the data within the systems or make it available to other accounting professionals.
Auditing and assurance services
Individuals here, review documents to certify they are correct. Individuals in assurance may work with financial or non-financial documents, whereas auditors work with financial records. Auditors ensure an organisation’s financial records are accurate, complete and compliant to the law.
Roles and responsibilities
In a nutshell, an accountant’s most common tasks and responsibilities include;
Ensuring the accuracy of financial documents, as well as their compliance with relevant laws and regulations
Preparing and maintaining critical financial reports
Preparing tax returns and ensuring that taxes are paid correctly and on time
Evaluating financial operations to recommend best-practices, identify issues and strategise solutions, and help organisations run efficiently
Offering guidance on cost reduction, revenue enhancement, and profit maximisation
Conducting forecasting and risk analysis assessments
Accounting and automation
With the digitalisation in society, many industries have faced a change in the advancement of procedures, and the accounting field is no different. Various automation software is being implemented amongst the workforce. The ability to automate specific tasks will allow individuals to focus less on manual tasks and instead, invest their time in more meaningful jobs. It will make room for a more effective workforce.
Myths vs reality
As previously outlined, the term accountancy brings with it various associations which lead to questionable matters on myths and reality. Following are three myths broken down on accountants.
Being an accountant is boring.
An accountant’s role is like any other’s, there are parts which are dull or monotonous, whilst others are interesting.
“When you get to the good part of accounting you are dealing more with people, processes and business partnership,”Prather explains.
Accountants don’t need to communicate.
Many believe that accountants spend their day behind a screen looking at spreadsheets to only emerge for coffee breaks; however, accountants rely on their communication skills to be successful. Interaction with colleagues and clients is a must regularly.
Accountants are all math whizzes.
Necessary mathematical skills are required for such roles; however, Microsoft Excel does most of the work when it comes to numbers. Though most individuals in accounting have an appreciation for mathematics, they are not obsessed with it.
Why GCS Malta?
GCS Malta’s Accounting experts offer a full range of accounting and support services which are necessary for the maintenance of a company’s accounting records. Our experts have years of experience and passion towards their line of fields to offer clients a level of work that projects high quality. Get in touch today for all your accounting needs.
