What does an accountant do?
I'm considering changing my major to accounting and i still have some questions about what a accountant specifically does. I know they handle money that comes in and out of a company, but i know there's is more to it than that. So what does a accountant do?
- FreefromdramaLv 77 years agoBest Answer
Describing A Company's Health Using Numbers
Accountants are highly trained in math, accounting, law and finance so that they can describe the health of an individual, company or nonprofit organization using numbers and financial statements. Using standard practices, accountants analyze profit and loss. Their work provides the information that investors and others need to evaluate how a company is doing over time. The information forms the basis of a company's annual report and legally mandated filing reports. Accountants also do audits to verify the data that a company provides. If the accountant is on staff at the company, the audit is an internal audit. Outside accounting firms perform external audits.
One important reason to conduct an external audit is to get outside consultants to check a company's financial records to ensure that nothing fraudulent is happening. During an audit, an accountant compares all of the receipts, invoices, purchase orders and the documents of other transactions against the records. It's the same kind of investigation that the Internal Revenue Service does if it audits your tax return. Assuming that you followed the rules, an audit won't reveal any new information. However, if there are mistakes or if anything illegal is being hidden, an outside audit by an accountant will probably discover it.
Giving Financial and Investment Advice
Accountants help people to navigate the frequently changing financial, investment and tax laws so that they can keep as much of the money they earn as possible. Many companies, nonprofit organizations and individuals pay an accountant or a certified public accountant who they trust to give them shrewd advice whenever they're considering a decision that has any financial consequences.
Some accountants are directly involved in preparing an organization’s financial statements. This is likely to include maintaining the general ledger and supervising some employees.
Other accountants work with a corporation’s management in analyzing costs of operations, products, and special projects. Usually this will also involve budgeting and preparing reports which highlight any variances.
Some accountants work as a corporation’s internal auditor while many accountants are independent certified public accountants (CPAs) who audit the financial statements of many corporations and other organizations.
Some accountants and CPAs choose to have their own accounting firm and may focus on assisting small businesses with their accounting systems, financial statements, income tax returns, tax planning, investment decisions, etc.
The above examples illustrate the variety of opportunities that accountants have available. Accountants can also use their formal college education with many types of businesses and organizations such as manufacturers, retailers, financial institutions, accounting firms, government agencies, nonprofit organizations, and more. Many accountants also use their knowledge and experience to become executives and business owners.
- manojLv 43 years ago
great version, i know the blonde version of that humorous tale, she dyes her hair brunette and counts the sheep and the farmer bets that he can guess her organic hair colour for his dogs back.