What Do Accountants Do?

by admin on April 28, 2011

As the world economy is experiencing ups and downs nowadays, the role of keeping track of cash flows becomes all the more important. This is what Accountants do. They have the responsibility of watching not just the flow of money, but to safeguard the interests of their clients.

The clients can be anyone, from individuals to Corporations to Government Organizations. It is their responsibility to make sure the numbers are right always. It’s a complicated job, and you need to have the knowledge of different business protocols and tax regulations.

For this purpose, you should have the required qualifications to their job in the right way. To be a recognized accountant, you need to have at least a bachelor’s degree in accounting or a related field. If you want to take your accounting career to a higher level, it’s preferable that you try for a master’s degree in accounting, or an MBA with a concentration in accounting. It can be better, if you can obtain certification to become a Certified Public Accountant (CPA).

After getting the required qualifications, the accountants can get good job prospects. In an accounting job, they would have various responsibilities to fulfil. The primary job is off course watching the financial records of their organization. It may look easy, but it isn’t. These records need to be absolutely accurate and in accordance with all the regulations and laws.

Another of their jobs is to calculate the taxes to be paid by their clients or organizations. They also need to prepare and file the tax returns. Also, they need to prepare financial statements of their clients. For this purpose, they should have necessary knowledge about the financial assets of the clients.

The accountants need to have all types of knowledge to do their work. If there is any job to be done, it is the duty of the accountants to procure all information, which is needed to get the work done. After getting the information, they would have to analyze the date to bring out the most important details and information. Finally, the accountants need to process all the data and information.

The accountants don’t just have to get and understand the information; it is their job to explain the meaning of this information to other people. Everybody is not equipped to understand the accounting terminology and budget complications. So the accountants would need to learn explaining complex information to others in an easy to understand manner.

Another one of the tasks of accountants is to judge the value of different elements. The accountants should have the ability to predict the value of different objects or services. They should be able to judge their importance for the prospects of the company. Similarly, they also need to judge prospective clients.

Some accountants also have the added responsibility to draw up budgets for their firms. While doing budget, they need to keep several factors in mind. They also need to estimate different factors like sizes, quantities, time, cost, or materials needed. They also have to estimate the costs of operation, and risk factors associated with investing the money.

They need to estimate the profit and loss before embarking on a new project. It also comes under their responsibilities to make sure that company’s budget runs along fine, without going into losses.

The accountants have an additional job of analyzing the contracts of their firms. They need to look at very close details. There are small clauses which can go against the interests of their company. If the accountants don’t look at each and every contact with due care, the loss will theirs and that of their company.

Similarly, they have to analyze the purchase orders and keep a track of everything they buy. It comes under the domain of their work that they control and monitor the use of all the resources. It is their task to prevent any wasteful expenditure.

The accountant’s jobs are many. An important part of their responsibilities is that they have to deal with different individuals, and give the necessary information of their company’s accounts when needed.

It is important for an accountant to keep in touch with different officials and executives of his company. For doing his job, he needs to communicate with his peers to make sure all the work is being done effectively. It is important for all the accountants to communicate with each other.

The accountants are answerable to their supervisors, and it’s one of their jobs to communicate with them and provide them all the information and figures, whenever needed. Similarly, the accountants need to communicate with their subordinates to keep tab on their work. It is the responsibility of the accountant to guide his subordinates to work effectively.

Many a times they would need to deal with outside auditors, who visit to check if the accounts of the firm is in place or not. It’s a tough job. For this purpose, the accountants need to keep their accounts organized at all times, so that they would not have any difficulty dealing with the outside inspectors or auditors.

If you continue to do good work as an accountant and gain recognition for your good work, you can start providing professional financial advices and consultations to your clients for a nice fee. You will advice your clients on ways to manage their personal fortunes, assets and properties. You can give consultation on best ways to invest money. For corporate clients, you will give advices in relation to keeping the budget of their company going along smoothly.

As accountants have so many jobs and responsibilities, their primary task becomes to organize all these tasks. At times, they would have too many jobs on their plate that it would be difficult to handle them. They should know which one of jobs has a higher priority, and do their work accordingly.

The best accountants are the ones, who are able to plan and organize their work in the best manners.

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