What Does an Accountant Do?

It’s a good question. Do accountants only handle taxes, or do they offer more services? Can they help with bookkeeping or advise on financial ratios?

The answer is yes—they do all this and more. While accountants may get the most attention during tax season, their role extends throughout the year.

They often serve as the financial backbone of a business, guiding firms in setting goals, planning, and executing strategies to achieve those goals profitably.

This blog post will help you better understand what accountants do daily and the different types of accountants you might encounter.

Let’s get straight to the point

Accountants are financial experts who handle various tasks, including tax preparation, financial analysis, and business strategic advice. They help manage financial records, ensure accurate tax filings, and provide guidance on long-term planning.

Accountants can specialise in areas like tax accounting, cost accounting, or government accounting, and they play a crucial role in maintaining businesses’ financial health. A career in accounting requires formal education and offers diverse growth opportunities.

What Is an Accountant Responsible For?

Accountants are financial experts trained to assist individuals and businesses with various financial challenges. Their duties include analysing financial data, preparing reports, filing tax returns, and providing strategic advice.

Accountants do more than handle day-to-day financial tasks; they can also be valuable strategic advisors, helping businesses succeed.

What Do Accountants Do Regularly?

Every day is different for an accountant. Each client or business has unique needs, requiring accountants to perform various tasks. Here’s a look at some common responsibilities:

1. Provide Financial Advice

Accountants offer advice on financial matters, focusing on a business’s current financial health. They help identify areas where a business can save money or increase profits.

2. Analyse Financial Statements

Accountants review income and expense statements and examine cash flow issues to ensure everything is on track.

3. Ensure Accurate Tax Filing

It is crucial to file taxes accurately and on time. Accountants ensure all tax obligations are met and businesses take advantage of any available deductions.

4. Manage Invoices and Receivables

Another key duty is tracking outstanding invoices. Accountants ensure that payments are collected promptly to maintain a healthy cash flow.

5. Conduct Audits

Accountants perform audits to ensure that a company’s financial practices comply with regulations and industry standards.

6. Assist with Long-Term Planning

Beyond the day-to-day, accountants help businesses with long-term planning, advising on future growth and expansion.

Accountants and Tax

One of the main roles of an accountant is helping clients prepare and submit their tax returns. This responsibility applies to everyone, from sole traders and freelancers to large corporations.

Accountants must stay updated on ever-changing tax laws to provide the best advice. They help clients understand potential deductions, evaluate write-offs, and calculate capital gains.

Handling Goods and Services Tax (GST), Business Activity Statements (BAS), payroll, and superannuation can be overwhelming for new or growing businesses. Accountants add significant value by managing these tasks, reducing business owners’ stress.

Do You Need Formal Training to Become an Accountant?

Yes, formal education and training are necessary to become an accountant. If you’re a business owner looking to hire an accountant, you’ll want to ensure they have the relevant qualifications.

Accountants in Australia generally belong to one of three professional bodies:

• CPA Australia
• The Institute of Chartered Accountants of Australia (ICAA)
• The Institute of Public Accountants (IPA)

Each organisation has specific membership requirements, typically involving a Bachelor’s degree in accounting or a related field. For example, the ICAA and CPA Australia require a bachelor’s degree, while the IPA also accepts the FNS50215 Diploma in Accounting.

Different Types of Accountants

The term “accountant” covers a wide range of careers. Here are some of the main types of accountants you might encounter:

1. Financial Accountants

Financial accountants prepare and analyse financial statements. They also ensure that a company’s financial records are accurate and comply with regulations.

2. Cost Accountants

Cost accountants analyse financial records and depreciation data to help businesses determine the costs of goods and services. This information is crucial for making strategic decisions.

3. Managerial Accountants

Managerial accountants, like cost accountants, deal with financial data but focus more on helping management make decisions rather than just analysing costs.

4. Tax Accountants

Tax accountants specialise in preparing and filing tax returns and ensuring compliance with all relevant tax laws and regulations.

5. Nonprofit Accountants

Nonprofit accountants work with organisations that do not focus on profit-making. They help these organisations manage their finances efficiently, often focusing on cost-saving measures.

6. Government Accountants

Government accountants work for various government departments. Their roles might include auditing or investigating financial crimes, such as bank fraud.

7. Auditors

Auditors review a company’s financial records to ensure accuracy. They can work internally for a company or as part of an external auditing firm.

How Much Do Accountants Earn?

According to Indeed, the average salary for an accountant in Australia is between $70000 and $90000 per year. Experienced accountants can easily earn six figures.

Is Accounting the Right Career for You?

Accounting could be a great fit if you’re good with numbers and enjoy solving problems. It’s a career that offers variety—no two days are the same—and the chance to work with different people.

Ensure you’re prepared for the educational and certification requirements if you consider this path.

Essential Skills for Accountants

In addition to financial knowledge, accountants need strong emotional intelligence and excellent communication skills. Here are some key traits:

• Attention to Detail: Small mistakes can be costly, so precision is crucial.
• Problem-Solving: Accountants must think creatively to solve financial issues.
• Time Management: Balancing multiple tasks and meeting deadlines is essential.
• Communication: Accountants need to explain complex financial information clearly.

Conclusion

A career in accounting is rewarding and offers many growth opportunities. Whether you’re considering becoming an accountant or looking to hire one, understanding the various roles and responsibilities can help you make informed decisions.

Accountants play a vital role in the success of businesses, large and small, by ensuring financial health and compliance with regulations.

Frequently Asked Questions

What Qualifications Should An Australian Accountant Have?

Accountants in Australia should hold a degree in accounting or a related field and be certified by recognised professional bodies such as CPA Australia, Chartered Accountants ANZ (CA ANZ), or the Institute of Public Accountants (IPA).

How Do Accountants Help Small Businesses?

Accountants assist small businesses with tax compliance, BAS lodgment, payroll management, cash flow analysis, budgeting, and long-term financial planning.

What Is Bas, And How Do Accountants Assist With It?

BAS stands for Business Activity Statement, a document businesses lodge with the ATO to report GST, PAYG withholding, and other tax obligations. Accountants help ensure accurate BAS preparation and timely lodgment.

Can An Accountant Help With Superannuation?

Yes, accountants provide advice on superannuation compliance, managing self-managed superannuation funds (SMSFs), and retirement planning.

How Much Does It Cost To Hire An Accountant In Australia?

The cost varies based on the services required. Personal tax returns may cost $100–$300, while business services or ongoing financial advice could range from $1,000 to $5,000+ annually.