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As a CEO or an executive, you may choose to hire a senior accounting consultant or a corporate financial advisor to assist you in the following: Accounting consultants can help with financial reporting, tax compliance, and other accounting tasks. In addition they can perform accounting reporting and financial forecasting. They can also create financial projections for the future. They can assist you in analysis of your company’s financial statements, their interpretation, and evaluation. They can also help you in the preparation of your company’s year-end reporting. They can help prepare financial statements for your company at the end of the year. Accounts have a pivotal role in tax compliance as well as other regulatory compliance. Accounting consultants can advise on how to comply with tax laws and corporate financial regulations. They can also help you understand the tax implications of your various business decisions. They are also priceless when it comes time for filing your corporate tax returns and time to ensure compliance with tax laws. Implementation of accounting systems within your organization is a task that requires the skills of a seasoned accountant.Such up accounting systems and processesAccounts payable analysis: Identify areas for cost savingsAudit preparation: Prepare for auditsOther accounting tasksFinancial health evaluation: Assess the financial health of a businessProfitability analysis: Determine the profitability of a businessReconciling accounts: Ensure accounts are accurate and reconciledYou might also consider hiring an accounting consultant to: Improve communication with investors and lenders, Identify opportunities to save money, Navigate mergers and acquisitions, and Replace team members on leave.

An accountant plays a really significant part in an organization, regardless of whether it could be a multinational company or a little, domestic one. The inflow and outflow of the company’s cash are closely checked by the accountant, who moreover makes sure that all financial transactions are legal, correct, which they went through the correct channels. They work closely with bookkeepers to ensure that the company’s financial statements are in order. Accountant Also, an accountant may also select to work for people and take charge of issues that are related to money, tax filing, and sorting tax returns. To learn more about Accounting careers, check out our career assets, which include common interview questions for accountants. Accountant vs Auditor It is common to find people who are not one or the other an bookkeeper nor an auditor to be able to differentiate between the two. Indeed, the two callings share a lot of similarities, but they both also come with several differences. Let us examine a few of these points within the following passages. Accountant vs Bookkeeper Once more, the two terms are regularly confused but their differences are clear-cut. A bookkeeper holds the key to a effective business because he or she does the following tasks: Makes a record of each financial transaction entered into by a company each single day. It is his work to prepare receipts, invoices, as well as payments, and make sure that everything is recorded down.Makes a record of all accounts receivable and accounts payable or, in simpler words, the money that goes into paying creditors and the money that comes in from debtors. For example, a client who owes the company a specific amount each month for six months can be put under accounts receivable. Processes the payroll. It is the job of the bookkeeper to keep up the payroll and make sure that each employee receives the exact amount that’s due to them.Keeps track of the company’s money, including all the costs it makes, as well as its profit, on a every day premise. The information is exceptionally important because, when compiled into reports, they describe the monetary health of the company, and errors can lead to destitute detailing and bad decisions. Duties of an Bookkeeper The duties of an accountant are various, and a few of them may cover with those of the bookkeeper. In a nutshell, the bookkeeper gets it and interprets a company’s financial health through the combination of his knowledge of numbers and accounting standards. Accountants look at the company’s losses and profits and display the figures in a detailed way to allow the administration to know about how the organization is doing.They deal and cooperate with auditors in making audits of the company by providing them with the necessary figures and data.Bookkeepers review budgets, especially towards the end of the financial year, and make sure that the expenditures will not deplete the organization’s coffers. They make sure that the company’s investing is under control.They manage the safekeeping and contributing of the company’s financial data into its frameworks. Any slight change from the original can jeopardize the entire company’s financial status.They recommend and apply the use of efficient and secure accounting software that will support the gathering and safekeeping of financial information and the creation of financial reports.A bookkeeper regularly occupies a position below the company’s accountant and reports to the accountant.

The history of accounting has been around almost as long as money itself. Accounting history dates back to ancient civilizations in Mesopotamia, Egypt, and Babylon. For example, during the Roman Empire, the government had detailed records of its finances. However, modern accounting as a profession has only been around since the early 19th century.1 Luca Pacioli is considered “The Father of Accounting and Bookkeeping” due to his contributions to the development of accounting as a profession. An Italian mathematician and friend of Leonardo da Vinci, Pacioli published a book on the double-entry system of bookkeeping in 1494.2 By 1880, the modern profession of accounting was fully formed and recognized by the Institute of Chartered Accountants in England and Wales.3 This institute created many of the systems by which accountants practice today. The formation of the institute occurred in large part due to the Industrial Revolution. Merchants not only needed to track their records but sought to avoid bankruptcy as well. The Alliance for Responsible Professional Licensing (ARPL) was formed in August 2019 in response to a series of state deregulatory proposals making the requirements to become a CPA more lenient. The ARPL is a coalition of various advanced professional groups including engineers, accountants, and architects.4 What Are the Different Types of Accounting? Accountants may be tasked with recording specific transactions or working with specific sets of information. For this reason, there are several broad groups that most accountants can be grouped into. Financial Accounting Financial accounting refers to the processes used to generate interim and annual financial statements. The results of all financial transactions that occur during an accounting period are summarized in the balance sheet, income statement, and cash flow statement. The financial statements of most companies are audited annually by an external CPA firm. For some, such as publicly traded companies, audits are a legal requirement. However, lenders also typically require the results of an external audit annually as part of their debt covenants. Therefore, most companies will have annual audits for one reason or another.5 Managerial Accounting  Managerial accounting uses much of the same data as financial accounting, but it organizes and utilizes information in different ways. Namely, in managerial accounting, an accountant generates monthly or quarterly reports that a business’s management team can use to make decisions about how the business operates. Managerial accounting also encompasses many other facets of accounting, including budgeting, forecasting, and various financial analysis tools. Essentially, any information that may be useful to management falls under this umbrella.

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.  Key Takeaways Understanding Accounting Accounting is one of the key functions of almost any business. A bookkeeper or an accountant may handle it at a small firm. At larger companies, there might be sizable finance departments guided by a unified accounting manual with dozens of employees.