Accounting can be stated as a big machine that puts the raw information of business into clean and organized records. Accounting is the process of recording and organizing your finances, making it easier for business owners to understand the financial information of your business easily.
Accounting tells you if your business is earning profits, it’s cash flow, and the value of your assets and liabilities. Accounting is the method that determines which part of your business is earning profits.
Accounting is a lot more than just organizing your finances. It helps you keep a track of your business and help you in other ways as well, like:
- Accounting helps you create plans for the growth of your business. Keeping financial records lets you create accurate goals for the future and achieve them.
- Keeping financial records through accounting helps you secure a loan for your business easily.
- Accounting also lets the business owners pay the right amount of taxes and not over or underpay them.
- Accounting strengthens the trust of investors in your business. As they have proof of how your business has been performing in the past.
The job of an accountant is to help you organize your raw financial data in organized and clean records. A good accountant can help communicate your business’s financial needs easily.
They can also help you with tax deductions and create a financial record of your business. This will help your business land investors and secure a loan in no time.
Most commerce graduates opt for accounting jobs after successful completion of their courses. There are a lot of accounting jobs available for commerce graduates and in today’s post, we will discuss what are the most popular ones.
Here are the most popular accounting jobs:
- Finance Manager
- Government Accountant
- Certified Public Accountant (CPA)
- Accounts Payable Specialist
- Internal Auditors
- Tax Accountant
- Forensic Accountant
- Public Accountant
- Budget Analyst
What Are the Different Types of Accounting Jobs?
Accounting jobs are just as varied as other jobs. They all come with a different set of responsibilities and expectations. But one thing is the same for all the accounting jobs, that is evaluation and interpretations of an organization’s financial data.
While an accountant helps to organize the financial data of a company, a tax auditor determines the amount of tax a company has to pay to the authority. The responsibilities may differ but interpreting and analyzing the financial data of a company is the same.
The accountants are the financial wizard of the company. They work on different projects and keep the finances of the organization on track.
The most popular accounting jobs are auditor, budget analyst, account payable specialist, tax accountant, and forensic accountant. Although being in the same field of accounting, every position is different from the other.
They all require different sets of educational and professional requirements. For some positions, candidates require additional certificates and advanced degrees, and for some positions, a bachelor’s degree is more than enough.
Before pursuing a career in accounting. It is essential to determine which kind of accounting role you want to build a career in. Although it’s not impossible to switch between two roles, however, it is a hindrance.
The requirements for each role are different, and the company’s expectations vary too. So before pursuing, make sure you have settled on one role, and you fulfill all the requirements for the said role.
Where Do Accountants Work?
The options for the accounting profession are unlimited. Every organization that wants to keep a track of its finances has to hire accountants. The jobs are available in the public and private sectors. An accountant can work anywhere in the country in different sectors.
An accountant might get to work in an exciting media conglomerate or other exciting organizations. As all of these organizations have an accounts department and opportunity for all accounting roles.
What Is an Auditor?
The role of the auditor is to prepare financial reports such as balance sheets, income statements, cash flow statements, and a summary of accounting policies.
The role of the auditor is to evaluate whether the reports presented by the company are true and reflect the financial status of the organization. An auditor look at the following details:
Whether the company has misreported or audited any capital assets.
Whether the workers or employees are not classified.
Whether the profits and gains of the organization are recorded accurately
The auditors can also evaluate the value of assets, communicate with the clients, and analyze the financial documents of the organization.
The main workload of the auditor peaks around January and March, like that, is the end of the financial year and the organization has to fill the audited statements at the end of the year.
According to Payscale, the average salary of an auditor is 485,000 a year. An auditor has to have a bachelor’s degree in accounting. But some companies prefer candidates with a master’s degree or an MBA. Some other advanced courses can be an added advantage when it comes to the position of auditor.
A professional course in computer accounting software or tally can prepare these candidates for a career in auditing. An auditor can work in the public and private sectors. They also have an option to build a career in an accounting consultancy.
The role of a budget analyst is to oversee the budget of a company or organization. A budget analyst is a professional who closely works with the managerial department to serve the company.
- Budget analysts maintain budgets for government officials and small cities. They also work for larger offices.
- Any huge department like schools, colleges, and even universities employ a budget analyst to keep their budgets in check.
- These analysts also work for retail chain stores. Their job is to maintain a budget for the branded products they sell in these retail chains.
- Budget analysts also work for Not-For-Profit organizations, managing their donations, expenses, and funding.
Normally, budget analysts work on making reports about smaller and bigger budgets, also determining if the budget should be approved, and on what grounds.
They track the spending plan for an organization. They approve proposals and combine smaller budgets into larger ones creating a working budget for a project or organization.
To make it a successful budget analyst one has to have strong math, accounting, and analytical skills. They should possess qualities like being highly meticulous, being organized, and have strong communication skills.
The analysts have to present explanations regarding the budgets and protocols of the organization. A budget analyst should have a bachelor’s degree in accounting, but a master’s degree in accounting or a similar field would make them a preferred choice by the company.
What Does an Accounts Payable Specialist Do?
A business or organization receives multiple bills and invoices daily a media company may receive invoices from photographers or editors asking for their dues. A law firm may get invoices from the freelance consultants and paralegals for the advice they provided to the clients.
The point is every business has to pay certain individuals in exchange for their products and services. This work falls under the supervision of an accounts payable specialist. An account payable specialist manages this kind of payment and small financial transactions that happen on a day-to-day basis.
A company maintains a small account called account payables. Under this, all the short term payments to the suppliers are kept. These are debts that a company has to clear in a given amount of time.
This head appears in the liabilities section of the balance sheet. These debts must be paid off in the given time frame to avoid any legal issues.
An organization or company is supposed to clear these short term debts in the given period if they fail to do so. The suppliers can file a legal suit or defaults against the organization. These short term payments differ from the long term dues.
These are small payments that are to be given to the suppliers or freelancers, whereas long-term dues are business loans, whether small or big an account payable specialist has to monitor these small invoices routinely, they are also supposed to prioritize the payments and guide the staff members to clear these dues.
Along with clearing these payments by directing the staff members, an account payable specialist has to create a meticulous and organized record of these payments. They have to be creative and analytical to determine which dues are to be paid first whilst keeping a record of the due payments and the ones that are cleared by the organization.
According to Payscale, the average salary of an account payable specialist is 394,246 a year. They ought to have a bachelor’s degree in finance and hands-on experience working in the finance field. Although a bachelor’s degree is enough.
Companies prefer candidates who have a master’s degree or MBA that specializes in finance. Along with these educational qualifications, it will be an added advantage if the communication and verbal skills of the candidate are strong.
The candidates who are preferred more by the company also have strong analytical and logical skills, along with being adept in MS Office or any other operating systems to record the day-to-day transactions.
How to Become a Tax Accountant
Taxpaying is not a big task, most people do it themselves. They record all of their information regarding their jobs and business throughout the year and deduct all the necessary deductions and obtain the tax value.
But it is not the same for a multinational company. As a company has various transactions they have to record every single transaction, working in different countries means tax value will be different for every branch.
They face some unique issues and this is why they need someone professional to help them with their tax payments. A tax accountant makes this process easier for multinational companies, they analyze financial documents and prepare organized records and statements to make sure that tax payments are done promptly.
A tax accountant takes into account all the income and expenditure of the company and then evaluates the amount of tax the company has to pay. A tax accountant focuses on all the transactions done by the business in a year by evaluating the statement and records prepared by the accounts payable specialist.
A tax accountant could handle this :
- Tax planning
- Tax law research
- Tax and income analysis
- Tax preparation
- Client meetings
The tax accountant’s services are often in high demand when the last date of tax payment comes close. In India, that’s from July to September. Tax accountants have to complete their work before these dates to make sure they meet deadlines.
Tax accountants are beneficial to create organized records and bookkeeping. Along with calculating taxes tax accountants also work all year round working on various statements and records that will help them calculate the taxes accurately.
Basic schooling and graduation in taxation and finance is a must to build a career as a tax accountant. But a master’s in the same field increases the chances of a candidate to be hired by a company.
A hands-on experience in managing the tax of a company works as an added advantage and sets a candidate apart from others.
According to Payscale, the average salary of a tax accountant is 290,076 a year. A tax account is essential for a multinational company. As they are an asset for companies who need to pay their taxes in different countries.
What Is a Forensic Accountant?
A forensic accountant’s job is to investigate the financial activities that are suspected. Many times even after several checks tax accountants can unintentionally file the taxes improperly. This discrepancy can be reported by the company.
Sometimes a company loses money, pays the extra tax due to miscalculations, forgets about the deductions, or just didn’t provide the right information about the income they earned that year. These activities are flagged by the police, and a forensic accountant investigates these transactions to get to the truth.
The professionals who dig deeper into the financial background of a company or individual are forensic accountants. They are the ones who determine the root cause of the issue, and they are trained to look beyond the numbers and deal with the business owners in real life.
Cases that forensic accountants can investigate include:
- Determining whether the individual or company deceived or withheld the information intentionally for their gain.
- Investigating whether the funds collected by the employees belonged to them or their employer.
- The cases of money laundering, whether a company or individual is using certain channels or methods to hide illegal cash flow.
- If a company or individual is evading tax payments.
A forensic accountant has an in-depth knowledge of accounting. They use their skills to figure out wrongdoing or illegal activities.
These accountants mainly work with the legal department to sniff out criminals or organizations involved in any illegal money-oriented activity. They work by taking notes of suspicious transactions and share their findings with the rest of the legal department.