What Is an Accountant and How Do They Help?

An accountant is an experienced and skillful person who monitors books and financial statements of an individual or an organization to interpret the financial status and suggest remedies for negative cash flow positions. The governmental bodies lay down rules and regulations revolving around taxes, but small business accountant can provide expert advice and timely assistance regarding how to save money and gain profits on tax returns. Experienced in maintaining records, they can give wise and safe options to invest your money for growth. An accountant, like any other professional is bound to a set of universal rules that govern the quality of record-keeping and financial statement construction. The universal standards that an accountant should be concerned about are IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles). There are various accounting designations like Chartered Accountant, Certified Management Accountant, Certified Internal bookkeeper and Certified Public Accountant. An accountant can do more than one task and provides quality information regarding your company or personal financial health. There are various elements in finance that an accountant is concerned about, they are:

Ø  Bookkeeping

Ø  Financial statement analysis

Bookkeeping is the evaluation of financial statements of a company to ensure that there no discrepancies in transactions that are represented. Bookkeeping can also be done internally by employees, but it is advisable to outsource bookkeeping to external professional like accounting firms that will give a neutral report. Bookkeeping is done to detect omissions or misinterpretations which are commonly called “basic errors” and those that jeopardize the fairness of financial statements called “Fundamental errors.”

Financial statement analysis is a close examination of balance sheets to interpret the company’s financial progress and can help investors, managers, clients, and stakeholders to enable or enhance their decision making. Accountants carry out various tasks that help one focus on their business, leaving the determining arithmetic work in their hands.

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Created on Nov 21st 2020 06:17. Viewed 161 times.

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