What Does an Accountant Do?
It’s a valid question.
Do accountants also undertake obligations related to bookkeeping? Can they assist you in understanding financial ratios? Prepare taxes?
Even though the majority of the public’s attention is focused on accountants during tax season, these professionals are in need throughout the year and can serve as the financial core of your company.
Accountants are responsible for educating their clients 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.
Regardless of what led you to this article, the information that is provided within it will be of assistance to you in building a deeper knowledge of everything there is to know about accountants. In this section, we will address questions such as “What do accountants do?” and “Are there different kinds of accountants?” After finishing this essay, you should have a better grasp of the tasks that accountants perform on a daily basis as well as the responsibilities that come along with them.
What is it exactly that an accountant is responsible for?
At their core, accountants are qualified financial specialists who offer aid to individuals and companies with their many financial concerns. This could include a wide range of activities, such as doing analysis and reporting on financial information, along with the filing of tax returns and all of the paperwork that is associated with them.
Accountants are not only able to assist in the execution of routine financial chores and reporting, but they are also able to serve as a strategic advisor for firms, which assists those firms in becoming more successful. In addition, accountants are able to assist in the execution of routine financial chores 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?
There is never a dull moment in the world of accounting because no two days are ever structured in the same way. Generally speaking, accountants are expected to accomplish a wide range of responsibilities because each customer and organisation is unique and may require individualised assistance. You’ll find a quick summary of some of the responsibilities that are placed on accountants on a daily basis in the following paragraphs:
- Offer advice on financial concerns, especially in relation to the current situation of the company’s finances.
- Examine the statements of income and expenses, and look at the problems with cash flow.
- Ensure that the filing of taxes is completed in a timely fashion, that they are completed accurately, and that all of the duties are met.
- Take care of the outstanding invoices.
- Carry out inspections of the company
- Planning for expansion and assistance with long-term strategy
To restate, no two days in the life of an accountant are ever the same in any way, shape, or form. However, there is a certain area of expertise and success in which the vast majority of accountants tend to specialise and excel.
Accountants and tax
Assisting customers in the preparation and submission of their tax returns is one of the primary responsibilities of an accountant. Everyone, from freelancers and single traders to small businesses and profitable companies, is required to adhere to the numerous laws and requirements that have been established by the Australian Taxation Office (ATO).
In order to provide their clients with the most up-to-date advice possible, accountants are obligated to remain current on the ever-shifting tax landscape. The primary goals of an accountant are to assist their clients in comprehending their possible tax deductions, determining their prospective write-offs, and calculating 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 already have your credentials, becoming an accountant calls for ongoing education and the development of new skills in order to keep up with changing financial conditions and legal requirements.
A large number of accountants are going to receive training on how to use cloud accounting software like QuickBooks to communicate with their clients, track their progress, and finish their reporting. The most successful accountants understand the importance of staying current with the ever developing technological landscape that underpins the accounting and finance industries.
If you want to become an accountant, do you need to have formal training?
You will require some sort of official education and training in order to operate as an accountant. In a similar vein, if you are the owner of a company and you are looking for an accountant, you will want to make sure that the person you choose can present pertinent credentials confirming his or her position.
There are many distinct kinds of accountants, a topic that will be covered briefly in the conclusion of this piece. However, in basic terms, the various categories are represented by the following three other professional bodies:
- The Institute of Chartered Accountants of Australia (ICAA)
- The Institute of Public Accountants (IPA)
- CPA Australia
In order to join any of these organisations, you will need to have at least a Bachelor’s degree. Accountants who wish to become members of the ICAA or CPA Australia are required to hold a bachelor’s degree in accounting or a degree that is academically equivalent. That almost always consists of a bachelor’s degree in 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.
If you are not a part of any of these categories, it is possible that you could still work in accounting and be responsible for crunching numbers. In a strict sense, the only time that you are required to be a part of one of these organisations is if you intend to publish financial reports, and more specifically if those reports are going to be evaluated by third parties. Only certified public accountants are qualified to generate various types of financial statements, such as balance sheets, among other types.
Training for bookkeeping
You do not, however, need to be a member of either of these organisations in order to carry out key bookkeeping responsibilities. The entry of transactions is the primary responsibility of bookkeepers. If you do not yet have a bachelor’s degree, getting some work experience in the field of accounting by taking a job as a book-keeper may be a great way to get started in the field.
In a same vein, if you run a small business with a limited budget, you will probably discover that hiring a book-keeper is less expensive than hiring an accredited accountant. You have the option of signing up for the QuickBooks programme and then finding a book-keeper to handle all of the management for you. QuickBooks is capable of generating financial papers on your behalf. After that, you could seek the assistance of a tax accountant to complete your annual tax return.
Essential abilities required of accountants
In addition to having a strong understanding of finance and the ability to work well with numbers, an accountant must also possess strong emotional intelligence and interpersonal skills. The following are some of the qualities that should be exhibited by a good accountant:
- Foresight and vision
- Problem-solving skills
- Detail-oriented perspective
- Communication skills
- Time management skills
When pursuing a profession in accounting, you should strive to make your clients’ lives as hassle-free as you possibly can. If you have good foresight and vision, you will be able to spot problems early on, which will allow you to address them before they become more widespread problems. In a similar vein, having the ability to solve problems will enable you to think creatively and discover answers to any problems that may crop up.
In addition to this ability, accountants have to be able to pay great attention to the specifics. Because one minor part might mean the difference between hundreds of dollars and thousands of dollars for your customer, you’ll want to make sure that you’re always on top of your game.
In addition to this, you will need to be able to effectively convey delicate topics with your customers. You will need to have a solid understanding of precisely what it is that they want and how you can assist them.
Last but not least, if you want to be successful as an accountant, you need to be willing to put in the time. There will be some late nights, and you’ll need to be able to multitask effectively in order to accommodate the various customers. However, if you are able to maintain your dedication to the position, you will discover that it is rewarding and has the potential to offer significant advancement opportunities.
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
The term “accountant” is typically used in a broad sense because it refers to a wide variety of professions. However, within the discipline of accounting, there are a great many subfields to specialise in. If you are interested in pursuing a career in accounting, you should probably start thinking about the specific kind of job that you would like to accomplish.
Also, if you are the owner of a small business wanting to engage an accountant, you will want to ensure that you choose the appropriate kind of accountant for your company.
In order to assist in the determination of the price of goods and services, cost accountants examine financial records and data on depreciation.
A cost accountant provides assistance to a company in the measurement of its operational expenses, which enables the company to make future decisions that are more strategic.
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 quite similar to cost accountants; the main difference is that managerial accountants put more of an emphasis on management than than operations.
These accounts are specialised to provide assistance to individuals and businesses in the filing of tax returns in accordance with national and local rules and regulations.
The goal of a nonprofit organisation is not to maximise profits, which sets it apart from other types of enterprises. Instead, they focus on finding ways to save money. This is something that can be assisted with by a nonprofit accountant.
Accountants employed by the government are quite familiar with its operations. Investigating white-collar crimes such as bank fraud or conducting audits are two examples of possible careers in this field.
Auditors are unlike other professionals since they tend to be more reactive than proactive in their work.
The financial accounts and books of a company will be examined by auditors in order to identify any anomalies and inaccuracies.
Companies have the option of employing an internal auditing team or using an external auditing firm. Both of these options are available to them.
How much do accountants earn?
Having a career as an accountant can result in a very profitable income.
Indeed reports that the average pay for an accountant in Australia is $72,748, with the potential to swiftly move into the six-figure area for those with a significant amount of experience.
Do you think that a career as an accountant would be a good fit for you?
If you are the type of person who gets things done and enjoys working with numbers, you should think about pursuing a career as an accountant.
A career as an accountant can be very interesting because the work is always different and you get to interact with a wide range of individuals every day.
If you want to pursue a career in accounting, you should make sure you have a solid understanding of the education and certification requirements associated in the field.
Five tips to enhance your accounting skills this year
Those with the ability to think creatively and derive answers from data are in high demand as accountants.
The good news is that tech-savvy, data-analytical, and communicative accounting professionals that offer the capabilities businesses want will be in great demand this year. Listed below are some actions you can do to advance your career in accounting.
It’s always tough to locate qualified accountants, and that hasn’t changed.
Accountants with the necessary skills are in high demand throughout the sector.
However, in order to acquire these accounting abilities, you will need to put in the necessary effort and maintain a mindset that is open to change. Here are some suggestions on what accountants can do to increase their chances of having a long and successful career in accounting.
1. Don’t fear technology
There is no getting around the fact that having knowledge of software is extremely important.
Back in the day, companies might identify software proficiency as something they coveted, but now days, technical prowess is more of an expectation.
This translates into proficiency with software that is unique to accounting, such as Hyperion or Xero, as well as software that is utilised by a wide variety of company professionals.
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.
Rosie Cairnes, who serves as the Regional Director for Australia and New Zealand at Skillsoft, believes that accountants should welcome the arrival of automation and technology rather than be afraid of it.
According to her, “Automation frees up the talent pool so that they can focus on business insights and work that provides value.”
Cairnes argues that ambitious accountants need to have a normal level of natural curiosity as well.
She says that an accountant’s capacity for curiosity puts them in an exceptional position to seize the opportunities that are presented by emerging technology.
“Accountants should also look into what the new technologies are that are being developed in their business. What kinds of tools for increased productivity and improved teamwork can be implemented?”
2. Learn to analyse data
It is not enough to operate the systems that manage data; you also need to interpret the information that is gathered from those systems.
This is especially important if you are in the middle of your career or at the senior level, both of which are positions in which you are expected to perform a significant amount of strategic analysis as part of your role.
We have to stress the importance of having the ability to convey the tale that the data offers.
This brings up the point that critical thinking is extremely important in the field of accounting. When you look at a spreadsheet, do you just see a bunch of statistics, or is there a more meaningful story behind those figures?
There is a great demand for accountants who are able to think creatively and derive answers from data.
We can’t emphasize the importance of “long-term planning and analysis” enough.
This is something that can be applied to junior accountants as well. People who are younger or relatively new to a profession shouldn’t overlook their ability to provide new ways of thinking.
This can create a new way of doing things if you have a good hold on these technologies and if you are coming up with solid business advice. People are searching for imaginative ways to solve their problems.
3. Hone your communication skills
In a world where more and more routine operations are being automated, accountants will need to offer talents that are difficult for computers to imitate.
This entails the capacity to relate information to customers who are not familiar with jargon and to demonstrate outstanding written and vocal communication.Customers require a higher level of service at this time.
Having strong communication skills is crucial to success in the field of accounting, regardless of how long one has been working in the field.
The talents that are most valuable for professional development, such as communication, are often the most in-demand across a variety of industries.
Communication does not only mean what you say; rather, it refers to your capacity to listen and comprehend what the organisation is all about.
4. Learn how to lead
An accountant with solid leadership skills is highly regarded.
There is a lot written about poor leadership and how it causes churn and lack of productivity, so strong leadership is an evergreen skill.
However, the kind of leadership skills accountants need has changed over the past two decades.
Thanks to technology changing how we work, leadership is more about collaboration and managing virtual teams.
Our organisational structures are much flatter, too, so inevitably it’s not just executives that need leadership skills, it’s almost everybody in the organisation.
If you want to brush up on leadership skills, Jotkowitz recommends management courses or seeking out a mentor.
Put up your hand for that leadership role and see what happens. Keep on pushing yourself.
5. Seek sector-specific experience
We have seen that a significant number of businesses are searching for accountants who have previous experience working in their industry.
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.
If you want to work in a field like pharmaceuticals, for example, you need to think strategically.
Employers place a high emphasis on candidates who have experience that is relevant to the area in which they are applying for a job. Candidates frequently believe that their skills can be applied in a variety of industries, and in most cases, they are correct.
So, if you have a role in aged care, it helps to have to have had previous experience in aged care. That appears to be the preference that people have.
Accountants are responsible for educating their clients on how to create goals. They are also able to serve as a strategic advisor for firms, which assists those firms in becoming more successful.
If you require help with your accounting, you can give us a call on (03) 8568 3606 or email us on [email protected].
An accountant’s primary goals are to assist their clients in comprehending their possible tax deductions, and calculate their potential capital gains. The most successful accountants understand the importance of staying current with the ever-changing technological landscape that underpins the accounting and finance industries.
There are many distinct kinds of accountants, a topic that will be covered later. You will require some sort of official education and training in order to operate as an accountant. Certified public accountants generate various types of financial statements, such as balance sheets, among other types.
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.
Hiring an accountant is rewarding and has the potential to offer significant advancement opportunities. Working as an accountant can take many different forms, depending on whether you want to work for a large or small company. The average pay for an accountant in Australia is $72,748. Tech-savvy, data-analytical, and communicative accountants will be in high demand this year.