Categories: Education

What are the different types of accountants?

All accountants are not the same. If you are looking to build a career for yourself in the finance sector, then you must understand the different accounting roles and get an insight into what work each type of accountant performs in a day.

Some of the possible career routes that you can pursue under accountancy are as follows:

  1. Cost accountant

Businesses always aim to achieve cost efficiency to maximise the profit. Cost accountants are responsible for analysing every cost related to production, material, labour, shipping and administration. 

They assist the business in the preparation of a budget based on profitability analysis.

  1. Management accountant

Management accountants are responsible for analysing the financial standing of a business and providing the information related to the business financial health to the business owner. 

Based on this information, the board of directors and line managers can make sound and critical strategic decisions regarding the business’s future. 

Some of the functions that management accountants perform are:- 

  • Planning and budgeting
  • Variance analysis
  • Profitability analysis
  • Risk management
  • Organisation and presentation of management information
  1. Chartered accountant

A chartered accountant is the premium finance qualification. Attaining such a qualification usually requires a combination of work experience and passing examinations. 

Chartered accountants are based in every city, and you find an accountant near me by searching on google or using specialist services providers, like Experlu. 

Some of the responsibilities that chartered accountants have to fulfil are:- 

  • Providing financial advice
  • Advising on tax planning, treasury issues and business transactions (mergers and acquisitions)
  • Preparing the financial statements
  • Undertaking financial audit
  • Dealing with any financial irregularities that may arise
  • Overall responsibility of finance function
  • The Head of finance usually reports directly to the CEO
  1. Tax accountant

Tax accountants assist businesses to meet all the tax obligations by preparing and submitting tax computations and returns by the deadline and ensuring whether they are compliant with the laws and regulations or not. 

Tax accountants focus on liaising and negotiating with HMRC on behalf of their clients. 

Apart from this, they guide on minimising tax liability, indirect taxation (environmental taxes, custom planning and VAT), tax residence, and more.

  1. Auditor

Large businesses are required to conduct at least one external audit every year to verify the preciseness and accuracy of their financial records. 

This is where an auditor comes into the picture. An auditor is a specialist accountant responsible for scrutinising the accounting records and system and examining the business’s financial statements without any biases.

They provide counsel to the business to prevent future issues and ensure that they comply with all the financial laws and regulations.

After the audit, auditors provide an audit report to the shareholders. 

  1. Forensic accountant

Forensic accountants act as detectives in the accountancy sector. Their job is to analyse a company’s financial records to ensure that all the financial discrepancies, errors, and inaccuracies are taken care of. 

Forensic accountants may either be self-employed, work for the government, work in the legal industry, or in a particular type of accounting firm to verify that their statements comply with the standards and laws.

  1. Staff accountant

Staff accountants perform a variety of functions like: 

  • Preparing and analysing the financial reports of the business
  • Maintaining general and subsidiary accounts
  • Maintaining payroll records
  • Performing reconciliation of bank accounts
  • Supervising clerical employees
  • Creating a budget for the business

They usually report to the senior accountant; they are responsible for creating financial forecasts and verifying whether the organisation is compliant with financial laws and regulations or not.

  1. Investment accountant

Investment accountants usually work with asset management or investment brokerage firms to maintain their clients’ investments while heeding the state regulations. 

They also help the firm in developing and improving its financial strategy. Along with the basics of accounting, investment accountants need to have an understanding of the investment opportunities that the business offers.

  1. Project accountant

Project accountants work on a project-by-project basis to supervise all the aspects of a project. 

This includes preparation and collection of invoices, approval of expenses, planning and maintenance of budgets, verification of employees’ billable hours and ensuring timely completion of the project before the deadline. 

A project accountant needs to have strong interpersonal, teamwork and communication skills to have an excellent working relationship with project managers and other colleagues.

Project accountants are usually specialist in a specific International Financial Reporting Standard (IFRS). 

Arpita

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