Accounting is a broad field that encompasses many different disciplines. Accountants, on the other hand, are responsible for recording, analyzing, and reporting financial information. They play a vital role in businesses of all sizes and government and non-profit organizations. However one common cause of confusion is trying to understand the different types of accountants out there and what they do. Here are some of the most common types of accountants and all you should know about them.
Several Branches of Accounting
Accountancy encompasses a wide range of specialities that cover the broad needs of all industries. Accountants frequently specialize in accounting areas that fit their professional interests and goals. Three primary accounting sectors comprise accounting:
- Private Accounting: Industry and Business
- Public sector: accounting for various government departments, NGOs, and charities.
- Education: Academic accounting study conducted by professors, authors, and researchers
Private accounting entails working for an organization and establishing numerous internal procedures to record and monitor transactions for financial statements, whereas public accounting entails using independent third parties to assist other organizations with their accounting requirements.
What does an accountant do for a living?
The everyday responsibilities of a public accountant include creating and checking financial records, organising finances, and conducting budget analyses. They also frequently work with clients on consulting, bookkeeping, and auditing projects. These, however, are merely the general duties of a public accountant. Many field experts focus their attention primarily on one area of specialisation.
Salary for Public Accountants
The pay for public accountants varies according to their experience, education, and level of certification. However, the typical yearly pay is close to $78,000.
Public accountants starting wages are around $48,000.
On the other hand, the average salary for a senior public accountant is $110,000.
Types of Accountants
Many accountant’s specialities include forensics, government, auditing, management, and more. Most people associate accountants with taxes. Although many accountants’ professions still require tax preparation, the accounting industry encompasses many positions.
An accountant’s regular responsibilities include producing financial forecasts, conducting risk analysis, preparing and maintaining financial reports, ensuring the accuracy of financial documents, assessing financial results of operations, recommending best practices, and preparing and filing tax returns.
11 Types of Accountants You Should Know
There isn’t a single accounting position that fits all. Accounting positions focus on a wide range of duties, responsibilities, and areas of expertise, making them almost as diverse as those who hold them. There is no comprehensive list of accountant types, but the following work in businesses, nonprofits, public accounting firms, government agencies, and other organisations.
#1. Tax Professional
Tax accountants analyse, interpret, and research tax legislation to ensure businesses file annual reports per the relevant tax laws. This position needs meticulousness to guarantee that tax returns are appropriately prepared before deadlines. They also assist businesses in making financial plans for the future by developing tax strategies that reduce tax liabilities and offering advice on indirect taxes like VAT and customs preparation.
#2 Auditor
Auditors are responsible for checking the correctness of financial records and compliance with applicable tax laws, regulations, and other accounting standards. The auditor must ensure that a company’s financial data is reasonably accurate and devoid of “material” errors. “Material” in a huge corporation might be equivalent to “millions of dollars.” An auditor can identify inconsistencies and provide advice on how to fix them. Additionally, they analyse the fraud prevention measures in place for firms and offer recommendations to improve operational effectiveness.
#3. A Certified Public Accountant (CPA)
They are accounting expert who has satisfied specified licensing requirements in one or more U.S. states. To obtain that professional title, one needs a bachelor’s degree in accounting, practical accounting experience, and passing the Uniform CPA Exam. The test is the same worldwide and includes four topics: auditing and attestation, business environment and principles, financial accounting and reporting, and regulation. However, the specific qualifying conditions for taking the test differ from state to state.
Civil service members in public finance accounting oversee government agencies’ resource allocation and financial planning. Their responsibilities also include performing internal audits, predicting the expenses of new projects, and ensuring that money is spent ethically across public sector organisations.
#4. A Bookkeeper
Bookkeepers typically do internal work for businesses or work directly with individuals. The earliest step in the accounting process is thought to be bookkeeping. Balancing accounts, processing invoices, payments, and receipts, processing and amending cash flow statements, and finishing VAT returns are typical tasks that overlap with an accountant’s. Additionally, bookkeepers are in charge of organising financial records and creating bills for Inland Revenue.
#5. Management Accountants
Senior managers must evaluate the financial health of their organisations and consider how various decisions could impact them while making strategic business decisions. A management accountant assists corporate leaders in achieving this goal by carrying out activities including budgeting and planning, profitability analysis, risk management, and financial reporting to internal stakeholders. Given that they must organise information and deliver it to business leaders in an easily understandable way, management accountants need to be able to speak effectively and simply.
#6. Finance Accountants:
Financial accounting produces reports and suggestions for an organisation after an internal or external audit. Additionally, financial accountants review financial data to provide month-end and annual reports for senior management. They can affect corporate profitability through analysis by forecasting and making recommendations. They also ensure the company complies with auditing requirements and pertinent legal obligations.
#7. An Investment Fund Manager:
Managing financial accounts for clients is a component of investment and fund management. Among the responsibilities is overseeing a client’s resources and finances. Working with financial consultants, money managers, trustees, bankers’ insurance agents, accountants, and other professionals is a typical aspect of investment management. They handle the financial aspects of trust funds, investments, private equity, debt, pensions, and real estate. They are required by law to prioritize the needs of their clients over their own.
#8. Criminalist Accountant
A criminal accountant examines financial documents to check for fraud, mistakes, or omissions and to ensure they comply with state and federal laws. Forensic accountants can work for companies that focus on this specific area of accounting, on their own, in the legal sector, or for the government. Forensic accountants must conduct additional studies and investigations into the material supplied and evaluate financial records to confirm true information. Due to their expertise in deciphering and explaining complicated financial difficulties and significant sums of money, those with this specialisation are in high demand to testify as expert witnesses in court cases.
Auditing, cost accounting, risk management, forensic accounting, managerial accounting, and taxes are subjects people interested in becoming forensic accountants would benefit from. Most forensic accountants pursue certification as certified public accountants (CPAs) or fraud examiners (CFEs). A forensic accountant makes, on average, $66,311 a year, according to PayScale.com. The remuneration for most forensic accountants grows with experience and holding a CPA or CFE.
#9. Chartered Accountants (CA)
As commerce becomes more international, American businesses are becoming more adept at navigating the rules and regulations of other nations. Enter the highly skilled worldwide accountant, a chartered accountant or CA. “CA” is a professional title that, like “CPA,” calls for particular education and experience. The International Financial Reporting Standards (IFRS), which are accounting guidelines intended to make financial statements for businesses clear, uniform, and comparable worldwide, are well-known to chartered accountants. 120 countries have ratified IFRS, the non-American equivalent of GAAP. CAs can assist organisations operating abroad in adhering to local requirements by grasping how tax laws and business regulations vary throughout nations. CAs specialise in four areas of accounting: management accounting, taxation, applied finance, and financial accounting and reporting.
#10. Payroll Supervisor
The work of the payroll team is supervised by payroll managers, who may also guide tax and employment rules about compensation. They guarantee that businesses abide by employment regulations and minimum wage requirements and perform compensation calculations considering employees’ overtime and holiday pay. To maintain the department’s efficiency, they create payroll procedures and issue BACS payments to employees. Auditing the department and processes is essential to ensure payroll complies with legal requirements, safeguarding the organisation.
#11. Financial Consultants
Financial consultants can have a rewarding and successful career with their accounting degree if they are searching for something different to do with it. Both people and corporations can benefit from financial advisors’ investing and financial planning services. A financial advisor’s objective is similar to a CPA’s: they want to help their client’s financial situation. Financial advisors have conversations with their customers, develop plans to help them reach their financial objectives, and follow up with them over time to modify the plans as necessary. Business financial advisors will review the firm’s financial accounts and other data to decide how to best enhance the company’s financial status.
Risk management, taxation, corporate finance, supply chain management, financial management, and managerial accounting are all topics that those who want to work as financial advisors should study. Additionally, they might need to receive particular licenses to practice as a financial counsellor. A financial advisor makes an average pay of $58,078 per year, according to PayScale.com. Additionally, they can be qualified for commissions and incentives.
Who is the Highest Paid Accountant?
Vice President of Finance at a company is the accounting position with the highest salary. Of course, being a V.P. of Finance requires many years of arduous work. A master’s degree is typically also necessary. Alongside a company’s president and/or chief executive officer, vice presidents of finance are employed.
What are the 8 Branches of Accounting?
- Financial management.
- Cost management.
- Auditing.
- Administrative accounting.
- Information systems for accounting.
- Taxes.
- Investigative accounting.
- Trust accounting.
Who is the Lowest Paid Accountant?
A: In 2021, the average annual compensation for accountants ranged from $47,970 for the lowest paid to $128,970 for the most paid.
Can You Make 6 Figures in Accounting?
Yes!
A CPA’s income typically ranges from the upper five to six figures, and senior CPAs in management can make even more.
Is CPA Harder than the Bar?
The CPA and Bar exams are famously challenging tests that require months of intensive study while covering a wide range of topics. The CPA exam is harder, with a 14–20% pass rate, if you only include test takers taking it for the first time.
How Many People Fail CPA Exams First Time?
A little more than half of people who take the CPA Exam fail it the first time around. The AICPA estimates that the pass percentage is 45–55% nationwide. According to the AICPA’s cumulative pass rates for 2021, FAR had the lowest pass rate at 44.54%, and BEC had the greatest pass rate at 61.94%.
Conclusion
Contrary to popular belief, an accounting career can entail far more varied labour than simply compiling mountains of receipts or processing tax forms all day. The accounting world has expanded, so pursuing a career as an accountant doesn’t necessarily mean you’ll spend every year calculating people’s deductions (although managing tax returns is still very important for most accountant positions). If filling out tax forms doesn’t appeal to you, that’s good news. This industry is expanding and offers those interested the chance to work in fascinating sectors with many employment opportunities.
- HOW TO FINANCE A MACBOOK: Quick and Easy Methods
- WHAT IS A CLOUD ENGINEER: Duties & How to Become One
- TOP 10 BEST UBER COMPETITORS & ALTERNATIVES 2023
- DATARAILS: Overview, Features, Pricing & Competitors 2023
- TECH JOBS THAT PAY 200K A YEAR: 2023 Updates
References
