What Does an Accountant Do?
It’s a good question.
Do accountants also take on responsibilities that are associated with bookkeeping? Are they able to provide you with assistance in comprehending financial ratios? Prepare taxes?
Even though most of the public’s attention is focused on accountants during tax season, these professionals are needed throughout the year and can act as the financial core of your firm. Even though the majority of the public’s attention is focused on accountants during tax season.
Accountants are responsible to educate their clientele on how to create goals, assisting their clients in planning out how to achieve those goals, and then assisting their clients in carrying out those plans in the most profitable manner possible. Accountants also have the responsibility of educating their clients on how to create goals for themselves.
Regardless of the path that brought you to this page, the information that is presented within it will be of benefit to you in developing a greater knowledge of everything there is to know about accountants. We will answer topics such as “What do accountants do?” and “Are there different sorts of accountants?” in the next section. After reading this essay, you should have a greater understanding of the responsibilities that come along with the activities that accountants undertake on a daily basis, as well as the tasks that accountants accomplish on a daily basis.
What is it exactly that an accountant is responsible for?
Accountants, at their most fundamental level, are trained financial specialists who are able to assist individuals and businesses with the myriad of financial challenges they face. This could entail a very broad variety of duties, such as performing analysis and reporting on financial information, along with the filing of tax returns and all of the paperwork that is related with them.
Accountants may help with more than just the execution of normal financial tasks and reporting; they can also act as a strategic advisor for businesses, which helps such businesses succeed. Accountants can also help with the performance of standard financial tasks and reporting.
If you require help with your accounting, you can give us a call on (03) 8568 3606 or email us on [email protected].
What kinds of things do accountants do on a regular basis?
Due to the fact that no two days are ever organised in the same manner, the field of accounting is never devoid of excitement or excitement-filled moments. Because every client and organisation is different and may require individualised assistance, accountants are typically required to complete a diverse range of obligations. This is due to the fact that accounting services are in high demand. In the following paragraphs, you will discover a concise explanation of some of the tasks that are placed on accountants on a daily basis:
- Offer advice on financial concerns, especially in relation to the current situation of the company’s finances.
- Analyse the statements of income and expenses, as well as the issues with cash flow, to find out what’s going on.
- Make certain that the filing of taxes is done in a timely manner, that they are done accurately, and that all of the responsibilities are satisfied before moving on to the next step.
- Take care of the invoices that are still outstanding.
- Inspections of the company should be carried out.
- Assistance with long-term planning in addition to planning for future expansion.
To repeat, an accountant’s work is never, ever, under any circumstances, the same from one day to the next in any way, shape, or form. However, there is a certain field of skill and accomplishment in which the vast majority of accountants tend to specialise and flourish, and that field is taxation.
Accountants and tax
One of the key roles of an accountant is to provide assistance to clients in the process of preparing and submitting their individual income tax returns. Everyone is responsible for adhering to the numerous laws and requirements that have been set by the Australian Taxation Office. This includes sole proprietors, freelancers, small enterprises, and profitable corporations (ATO).
Accountants are expected to stay current on the ever-changing tax landscape in order to provide their clients with the most up-to-date advice that is available. This is done so that accountants may serve their clients with the best service possible. An accountant’s key responsibilities include assisting customers in interpreting their potential tax deductions, assessing their potential write-offs, and computing their potential capital gains.
The Goods and Services Tax (GST) and the Business Activity Statement (BAS), in addition to payroll and super, can be a significant source of stress for new business owners as well as owners of enterprises that are expanding. This is one of the ways in which accountants can add significant value to the services they provide for their clients.
Even if you currently possess the necessary credentials, if you want to become an accountant, you will need to continue your education and learn new skills in order to stay up with the ever-shifting financial landscape and the evolving set of legal requirements.
A significant number of accountants are going to participate in training sessions that will teach them how to utilise cloud accounting software such as QuickBooks to communicate with their clients, monitor the success of their businesses, and complete their reporting. The most successful accountants are those that recognise the significance of maintaining a level of familiarity with the ever-evolving technical landscape that serves as the foundation for the accounting and finance businesses.
If you want to become an accountant, do you need to have formal training?
In order to work as an accountant, you will need to complete some form of formal education and training. In a similar vein, if you are the owner of a company and you are searching for an accountant, you will want to make sure that the individual you choose can present pertinent credentials confirming his or her position. In other words, if you want to hire an accountant, you will want to make sure that the person you choose can present pertinent credentials.
This section’s conclusion will touch on the topic of the several specialised sorts of accountants that exist, and it will do so in a quick manner. On the other hand, in the most fundamental sense, the various categories are represented by the three additional professional bodies that are as follows:
- The Institute of Chartered Accountants of Australia (ICAA)
- The Institute of Public Accountants (IPA)
- CPA Australia
In order to become a member of any of these organisations, you are required to hold a degree equivalent to that of a Bachelor’s. To be eligible for membership in the ICAA or CPA Australia, prospective accountants need to hold a bachelor’s degree in accounting or a degree that is academically comparable to a bachelor’s degree in accounting. That nearly always entails possessing a bachelor’s degree in some aspect of business.
The membership requirements of the IPA are a little bit stricter. The FNS50215 Diploma in Accounting is a prerequisite for membership in this organisation.
Even if you don’t fit into any of these categories, there’s a chance you might still work in accounting and be in charge of analysing data even if you don’t have a background in finance. If you intend to publish financial reports, and more especially if those reports are going to be evaluated by third parties, then you are legally obligated to be a member of one of these organisations. This is the only circumstance in which membership in such an organisation is needed. Certified Public Accountants are the only professionals who are qualified to prepare the many different kinds of financial statements, including balance sheets and other forms.
Training for bookkeeping
However, in order to carry out essential bookkeeping obligations, membership in either of these organisations is not required of you. Bookkeepers are primarily responsible for recording transactions in their ledgers and records. Getting some work experience in the field of accounting by accepting a position as a book-keeper can be a fantastic way to get started in the industry if you do not yet have a bachelor’s degree in the subject. If you are interested in pursuing a career in accounting, this is an important consideration.
To continue along this line of thought, if you are the owner of a small company that operates on a tight budget, you will probably find that hiring a book-keeper is more cost-effective than engaging an accredited accountant. You have the choice of registering for the QuickBooks programme and then looking for a book-keeper to take care of all of the management for you. Both of these options are available to you. QuickBooks is able to automatically generate financial documents on your company’s behalf. After that, you have the option of obtaining the help of a tax accountant in order to finish preparing your annual tax return.
Essential abilities required of accountants
An accountant must, in addition to having a great understanding of finance and the ability to work well with numbers, have high emotional intelligence and excellent interpersonal skills. The following is a list of characteristics that a good accountant ought to have and should be able to demonstrate:
- Foresight and vision
- Problem-solving skills
- Detail-oriented perspective
- Communication skills
- Time management skills
If you are interested in a career in accounting, you should make it your goal to make the lives of your clients as easy and stress-free as you possibly can. If you have good foresight and vision, you will be able to see difficulties early on, which will allow you to solve them before they become more widespread problems. If you don’t have good foresight and vision, you won’t be able to spot problems until they become more widespread problems. In a similar line, being able to solve difficulties will enable you to think creatively and find solutions to any challenges that may come up in the future.
In addition to this competence, accountants are required to have the capacity to pay close attention to the particulars. Because a single, seemingly little component could end up costing your client anywhere from hundreds to thousands of dollars, you’ll want to make sure that you’re always on top of your game.
In addition to this, you will need to have the ability to communicate sensitive themes with your clients in a clear and concise manner. You will need to have a firm understanding of exactly what it is that they want and how you can aid them in order to successfully complete this task.
If you want to be successful as an accountant, you need to be willing to put in the time. This is the last but not the least important requirement. There will be some late nights, and in order to successfully accommodate all of the customers, you will need to be able to properly juggle multiple tasks at once. However, if you are able to keep your dedication to the role intact, you will find that it is gratifying and has the ability to offer considerable chances for promotion. If you are able to do this, you will be successful in achieving both of these things.
The possibility of having a successful career in accounting is really intriguing. Working with customers and assisting business owners, both large and small, in staying on top of their finances and fulfilling their tax requirements may be job that completely transforms a person’s life. Working as an accountant can take many different forms, depending on whether you want to work for a large or a small company, or even if you want to start your own company.
Different types of accountants
Because it can be used to refer to such a large number of different careers, the term “accountant” is often used in a generic meaning. However, within the larger area of accounting, there are a great many specialised subfields that one can choose to work in. If you are interested in pursuing a career in accounting, you should definitely start thinking about the exact kind of work that you would like to complete at some point in your career.
Additionally, if you are the proprietor of a small company and are interested in hiring an accountant, you will want to make certain that you select the kind of accountant that is most suitable for your firm.
Examining financial records and gathering information on depreciation are two of the tasks that cost accountants perform in order to lend a hand in the process of determining the prices of goods and services.
A firm that hires a cost accountant receives aid in the measuring of its operating expenses, which subsequently enables the company to make decisions in the future that are more strategic in nature.
Cost accountants look at financial records and depreciation data to help determine the cost of goods and services. A cost accountant helps a business measure operating costs to make more strategic decisions in the future.
Managerial accountants are relatively similar to cost accountants; the primary distinction is that managerial accountants put more of an emphasis on management than they do on operations. Cost accountants focus more on determining the costs associated with running a business.
These are specialised accounts that are designed to offer support to individuals and companies in the process of filing their tax returns in compliance with the national and local norms and regulations.
It is important to note that in contrast to other kinds of businesses, the maximisation of profits is not the objective of a nonprofit organisation. They are more concerned with discovering means by which they can save costs. A professional accountant who works with nonprofit organisations can be of assistance in this matter.
Those who work as accountants for the government are quite familiar with the processes that it uses. Two examples of prospective occupations in this field are performing audits and investigations of white-collar crimes such as bank fraud. Other possible careers include working in corporate security.
Auditors are distinct from other professionals in that their work is typically characterised by a greater emphasis on reaction than on proactivity.
Auditors will look into a company’s books and financial records in order to determine whether or not there are any discrepancies or inaccurate entries.
Companies have the choice to either staff their own internal auditing team or contract with an external auditing firm. They have the ability to pursue one of these two courses of action.
How much do accountants earn?
A very lucrative income is possible to get through the pursuit of a job as an accountant.
According to Indeed, the typical annual salary for an accountant in Australia is $72,748. Those with a large amount of experience have the ability to quickly move into the six-figure range.
Do you think that a career as an accountant would be a good fit for you?
Consider being an accountant if you are the type of person that gets things done and enjoys dealing with numbers. This would be a great profession for someone like you.
A career as an accountant can be highly exciting due to the fact that the work is never the same from day to day and you get the opportunity to communicate with a diverse group of people on a daily basis.
If you are interested in pursuing a career in accounting, you should make certain that you have a comprehensive awareness of the educational and certification requirements that are involved with the subject.
Five tips to enhance your accounting skills this year
Those who are able to think creatively while also being able to draw conclusions from data are in great demand in the field of accounting.
The good news is that accounting professionals who are data-analytical, tech-savvy, and communicative and who offer the competencies businesses desire will be in high demand this year. The following is a list of activities that you can participate in to develop your career in accounting.
It hasn’t gotten any easier over the years to find qualified accountants, but it still can be challenging.
There is a significant demand across the industry for qualified accountants who possess the requisite skills.
You will, however, need to put in the proper amount of effort and keep a mindset that is open to change in order to gain these accounting capabilities. The following are some recommendations for actions that accountants can take to improve their chances of having a long and fruitful career in accounting.
1. Don’t fear technology
There is no denying the fact that having understanding of software is incredibly vital, and there is no way to get around this.
The ability to use software proficiently was formerly something that many businesses sought; however, these days, organisations view technological expertise more as something that should be expected.
This translates into familiarity with software that is specific to accounting, such as Hyperion or Xero, in addition to software that is utilised by a wide variety of professionals working for the organisation.
Accounting experts that are very adept in data-based apps and ERP [Enterprise Resource Planning] tools are highly appreciated, a lot of things are now cloud-based.
Accountants shouldn’t be terrified of the arrival of automation and technology, according to Rosie Cairnes, who works as the Regional Director for Australia and New Zealand at Skillsoft. Instead, accountants should welcome the introduction of automation and technology.
She claims that “automation frees up the talent pool” so that people may concentrate on “work that creates value” and “business insights.”
Cairnes contends that ambitious accountants need to have a natural level of curiosity in addition to the ambition that drives them.
She claims that the capacity for curiosity that is required of an accountant places them in an unusual position to seize the chances that are given by new forms of technology.
“The new technologies that are being developed in their company should also be investigated by accountants, who should look into what these technologies are. What kinds of tools may be employed so that there is an increase in production as well as an improvement in teamwork?”
2. Learn to analyse data
It is not sufficient to merely operate the systems that manage data; in addition, you are required to understand the information that is gathered from those systems.
This is of the utmost importance if you are now in the middle of your career or at the senior level, both of which are positions in which it is required of you to carry out a large amount of strategic analysis as part of your employment.
It is imperative that we emphasise how important it is to be able to effectively communicate the story that the data reveals.
This highlights the fact that the field of accounting places a significant emphasis on the use of analytical thinking skills. Do you just see a bunch of data when you look at a spreadsheet, or is there a deeper significant story behind those numbers? If the latter, how can you tell?
There is a significant need in the accounting industry for professionals who are imaginative thinkers and can draw conclusions from data.
We just are not able to place enough emphasis on the significance of “long-term planning and analysis.”
This is something that may also be applicable to accountants who are just starting out in their careers. Younger people and those who are relatively new to a profession should not have their capacity to provide novel ways of thinking discounted.
If you have a firm grasp on the aforementioned technologies and can provide sound guidance for businesses, this can give rise to an entirely new method of carrying out processes. People are scouring their imaginations for novel solutions to the challenges they face.
3. Hone your communication skills
In a future in which more commonplace tasks are being automated, accountants will need to offer skills that are tough for computers to duplicate in order to remain relevant.
This comprises the capacity to connect information to consumers who are not familiar with jargon and to display great writing and vocal communication skills. Additionally, this requires the ability to relate information to customers who are not familiar with jargon.
Right now, the customer experience needs to be elevated to a higher degree.
Regardless of how long one has worked in the profession of accounting, having great communication skills is essential to one’s success in the business.
Generally speaking, the skills that are most important for professional development, such as communication, are also the skills that are most in demand across a wide variety of business sectors.
It’s important to remember that communication encompasses more than just the words you choose to utter; it also pertains to your ability to take in information and understand what the organisation is all about.
4. Gain leadership skills
An accountant who possesses strong leadership abilities commands a high level of respect.
Because there is a great deal of literature on how ineffective leadership contributes to employee turnover and decreased productivity, being able to demonstrate strong leadership is a talent that will never become obsolete.
However, the kind of leadership skills accountants need has changed over the past two decades.
Because technology has changed the way we work, effective leadership now entails increased communication and better management of virtual teams.
Additionally, the hierarchical structures of our organisations have been significantly flattened, which means that practically everyone in the organisation, not just CEOs, will inevitably require some kind of leadership training.
Jotkowitz suggests taking management courses or finding a mentor if you want to improve your leadership abilities.
Put your name in the hat for that leadership post, and watch what unfolds from there. Continue to push yourself to your limits.
5. Seek experience in a certain industry
It has come to our attention that a sizeable number of companies are looking for accountants who have prior experience working in their particular field.
If they are recruiting in FMCG [fast-moving consumer goods, such as soft drinks and toiletries], then the company would seek individuals who have worked in that industry.
You need to be able to think strategically if you want to get a job in a competitive industry like pharmaceuticals, for instance.
Candidates who have previous expertise in a field that is pertinent to the one in which they are looking for a job are given a lot of weight by prospective employers. Candidates frequently have the misconception that their talents are transferrable to many different fields, but in the vast majority of instances, they are true.
Therefore, if you are working in the field of elderly care, it is beneficial to have past experience working in the elderly care field. It would indicate that this is the preference of the majority of individuals.
It is the responsibility of accountants to educate their clients on how to set goals for themselves. In addition to this, they are able to act as a strategic advisor for companies, which contributes to the growth and development of the companies in question.
If you require help with your accounting, you can give us a call on (03) 8568 3606 or email us on [email protected].
The basic functions of an accountant are to provide guidance to customers about the comprehension of any prospective tax deductions, as well as the calculation of any potential capital gains. The most successful accountants are those that recognise the significance of maintaining a level of familiarity with the ever-evolving technical landscape that serves as the foundation for the accounting and finance businesses.
The fact that there are so many sub-specialties within the field of accounting is something that will be discussed in more detail later. In order to work as an accountant, you will need to complete some form of formal education and training. Certified Public Accountants (CPAs) are responsible for producing a variety of financial statements, including, but not limited to, balance sheets and other forms.
Hiring a bookkeeper is less expensive than hiring an accredited accountant. If you run a small business, you have the option of signing up for QuickBooks and finding a book-keeper to handle all of the management for you.
Employing a qualified accountant is not only financially profitable but also has the potential to open up substantial career doors. Whether you wish to work for a major corporation or a small business, your job as an accountant can take on a variety of shapes, depending on your preferences. The annual salary of an accountant in Australia is approximately $72,748 on average. This year, employers will be looking for accountants that are skilled in data analysis, technology, and communication.