Some may say that accounting is a boring job. However, if you’re someone who loves numbers, it’s a career that stimulates the mind and is essential for a business to function. You are essentially a puzzle solver!
If that sounds exciting, a career in accounting could be for you. But, you might be wondering what accountants actually do on a daily basis.
Here’s a snapshot of some of the responsibilities of an accountant:
5 Main Roles of an Accountant
1. Financial Data Analysis
Accountants work with a lot of data. They regularly review and analyze financial statements and reports. They assess the company’s financial performance to spot trends in the data.
Data analysis is critical for decision making within a company, and ensures the business’s financial health is in good shape.
2. Ledger Maintenance and Journal Entries
Accountants are the ones who maintain the general ledger. This is a document of all of the financial transactions of the company. You would need to make necessary entries for transactions such as:
Accuracy and timeliness are vital to the role of an accountant.
One of the most important tasks for an accountant is reconciling accounts. This means that they ensure the balances match with bank statements and other financial records.
Doing this helps to identify any discrepancies so they can be corrected quickly, and making sure financial statements are accurate.
4. Financial Reporting
In order to get insights into a company’s financial health, accountants prepare financial reports. These provide an overview of the business’s financial position. They are commonly prepared at the end of every month, quarter, or year, and can include:
- Balance sheets
- Income statements
- Cash flow statements
5. Budgeting and Forecasting
Accountants play a critical role in creating company budgets and forecasting future financial performance. To do this, accountants must understand company goals and analyze past performance in order to spot trends for the future.