Accounting as a discipline has far too many branches that support its study and corporate accounting is one of the most essential. It is that area of accounting that deals with all of the company’s financial activities, from the preparation of final accounts analysis to interpretation of financial results and cash flow statements. Interestingly, the job description of a corporate accounting manager is the same whether in a public or private company, albeit the salary may differ.
If you’re in a position to apply for a corporate accounting job as your dream job, then this piece is for you.
In addition to describing what corporate accounting is, this article would teach you the job description of a corporate accounting manager and how much they earn as salary in the US. So, join us as we set the ball rolling.
Overview
Corporate accounting deals with the maintenance of an organization’s financial records in order to ensure that the rules are effectively followed. Again, it ensures that the working procedures are held within the limits of the organization’s rules, regulations, and policies. It benefits not only the company but also the executives in making financial decisions. Accountants who handle all of this work are also known as Management Accountants.
This branch of accounting uses the double-entry book-keeping system, which means that every transaction reflects in two accounts: the debit and the credit account. Furthermore, it entails preparing and consolidating financial statements and ledgers for an organization.
Every year, efficient planning and an adequate working structure must be established in order to meet financial goals. This is made possible by the corporate accounting manager. They create budgets to allocate funds and resources for various expenses in the company’s departments.
Aside from financial tasks, Corporate Accounting also includes auditing, which determines whether or not organizations meet their goals each year.
What is Corporate Accounting?
Corporate accounting is a subset of accounting that deals with the accounting for businesses, including the preparation of their final accounts and cash flow statements, the analysis and interpretation of their financial results, and the accounting for specific events such as amalgamation, absorption, and the preparation of consolidated balance sheets.
Thus, corporate accounting incorporates elements of bookkeeping, transaction classification, and report analysis in such a way that these reports can be used for decision making.
From the above explanation, it’s evident that this branch of accounting is indeed a special one
Corporate Accounting Manager Qualifications
Corporate Accounting clearly requires the knowledge of:
- Accounting Principles and Conventions
- Accounting Standards
- Shares and Debentures
- The issue of and Forfeiture of Shares
- Issue of Debentures
- Redemption of Preference Shares
- Redemption of Debentures
- Valuation of Goodwill
- And Company Amalgamations,
To qualify for a job in corporate accounting, many employers require a bachelor’s degree in finance or accounting. Some employers may also require them to be a Certified Public Accountant. This is a smart thing to get regardless, as it can increase the number of job opportunities for those who have it.
Corporate Accounting Job Description
In general, the industry has two main functions, which are as follows:
Accounting- This deals with daily operations, such as tracking revenue and expenses, balancing the books, paying all bills, and executing payroll.
Finance, on the other hand, analyses expenses and revenue to ensure efficient use of capital, advises businesses on project costs, and makes capital investments.
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Accountants are in charge of keeping financial records and can specialize in a variety of areas of finance and accounting.
They specialize in corporate accounting and maintain the organization’s financial records to ensure full compliance with the organization’s regulations, laws, and policies. As a result, any department in the organization that wishes to make a large expenditure must first consult with the finance department to ensure that funding is available. However, the job description of a corporate accounting manager includes assisting job executives in making sound financial decisions.
Corporate Accounting’s Primary Functions
Corporate accounting typically requires a team of professional accountants. They are tasked with managing their company’s financial situation under the supervision of a Chief Financial Officer (CFO) or a comparable executive. According to the accounting pdf, accountants are responsible for a variety of tasks related to financial account maintenance and the overall financial reporting system. The following are some of the activities of corporate accountants.
#1. Accounts Payable Management
Corporate accounting is in charge of receiving and processing invoices that come into the company. Following that, the accountants involved proceeds to making payments to contractors or suppliers in accordance with the indicated means of compensation. Bank transfers, checks, credit card payments, and electronic wire transfers are examples of these. Corporate accountants typically focus on inventory entering the firm when handling accounts payable. They can, however, concentrate on loan payments, taxes, and premise maintenance costs.
#2. Accounts Receivable Management
Accounts receivable are also handled by this type of bookkeeping. This is where client payments are processed on a regular basis. Aside from that, corporate accountants handle any cases of default. Corporations can assemble large teams of accountants to handle delinquent accounts. Smaller teams, on the other hand, can collaborate with specialist collections agents to handle defaulting cases.
#3. The Establishment and Upkeep of Accounting System
Corporate accountants inherit the responsibility of creating, installing, managing, and maintaining a company’s accounting system. In today’s world, it is a software platform that spans the entire company. Following installation, accountants create separate accounts to manage business elements such as equity, assets, income, liabilities, and expenses. They then assign general-ledger codes to each account and configure the overall system to automatically record specific transactions into the corresponding account.
Furthermore, advanced corporate accounting entails the regular production of a variety of internal reports. These reports are created with the most recent data and information. Additionally, financial statements for the company are created for regulatory bodies to verify.
#4. Payroll Processing For Employees
Corporate accounting is responsible for calculating employee salaries. Corporate accountants perform this task by calculating employee wages based on various work periods. This can be done once a week, twice a week, or once a month. Corporate accounting provides payroll checks or direct deposits into employees’ bank accounts.
#5. Financial Statements and General Ledgers
A corporate accounting manager is responsible for preparing and consolidating a company’s general ledgers and financial statements as part of his job description. He also gathers financial reports and ledgers from divisional offices and prepares financial statements for company executives. More importantly, a corporate accounting manager ensures that all divisions of the company contribute to the company’s revenue.
#6. Budget Planning
Every corporation’s goal is to meet all of its financial targets each year. To do so, they will require the services of a professional corporate accountant. As a result, part of a corporate accountant’s job description is to be in charge of budget preparation so that each department has enough spending money. Ultimately, this can cover costs such as investments, department needs (such as supplies), or hiring.
Additionally, the corporate accounting job description requires the manager to conduct audits to ensure that each department adheres to its financial budget and that the organization’s goals are met each year.
Corporate Accounting Salary
As you may know, unemployment is frowned upon in America, which is why there are more job opportunities for everyone to earn a decent living. Having said that, the average annual salary for a corporate accounting job in the US is $64,709 USD. With this kind of money, one may not have to worry about any kind of financial crisis.
Furthermore, some states in the US reportedly pay higher wages to corporate accountants in their region. For example, in New York, a corporate accounting manager earns $74,732 as his annual salary. Similarly, in Dallas, Austin, Huston, and Denver, a corporate accounting manager earn an annual salary of $66,587, $66,040, $64,746, and $64,796 respectively.
The Benefits of Corporate Accounting Job
Corporate accounting ensures that professionals can hone their skills in an area they enjoy. They may have a better work-life balance than those in public accounting, despite the fact that these firms are actively addressing this issue as they compete more and more with the private sector. It also generates employment opportunities. Some specialization opportunities, such as major retailers, government agencies, manufacturers, technology firms, biotechnology companies, and environmental organizations, frequently require new accounts for their teams.
Furthermore, areas such as business valuation, information technology, and forensic accounting are in high demand. A corporate accounting manager has a unique opportunity to contribute directly to the company’s main goal by working in positions that help support business growth, such as business system analysts and financial analysts. If you want to be a high-ranking executive in a specific industry or firm, then it’s best to gain that specialized experience quickly in a corporate setting.
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Corporate accountants report the financial results of the company for which they work, which means they may be more satisfied with their job description than public accountants who work for clients. When it comes to having more personal flexibility, corporate accounting comes out on top. Billable hours are the primary focus in public accounting, whereas there is no need to track hours in private accounting because the primary focus is on making money for the company every day.
Lastly, when it comes to accounting jobs, there are often fewer instances of overtime. During tax season, however, it’s common for an accountant to work six days a week. For many people, knowing you have a specific job and a set place to do it each day is reassuring, as having a regular routine reduces stress.
Is corporate accounting hard?
Accounting does need for a complicated set of talents and abilities, as well as superb attention to detail, but it actually isn’t that much more challenging than many of the other popular disciplines of study that provide excellent chances for lasting careers.
Is corporate accounting tough?
Accounting is complicated, there is no other way to phrase it. To become fluent in the business language, it will take a lifetime plus two years. The fun doesn’t have to stop there, though. After you graduate, there are countless prospects in addition to a high pay scale.
Why do we study corporate accounting?
Accounting is essential to any business since it offers data on both past and present financial activity. This enables businesses to do financial forecasting that is grounded in prior performance, reducing guessing and potentially resulting in more educated financial strategy.
Is corporate accounting stressful?
An accountant’s workplace and the details of their roles have a significant impact in these unpleasant encounters. It’s safe to assume that the pressure you experience at work will increase with how important your position is and how much money you work with.
What are the 5 basic accounting?
Although there are many rules for accountants, the creation of financial statements and accounting procedures are supported by five major concepts. They are the following: the accrual principle, the matching principle, the historic cost principle, the conservative principle, and the principle of substance over form.
What are the 4 types of corporations?
A sole proprietorship, a limited liability company (LLC), an S-Corporation (S-Corp), and a C-Corporation are the four main forms of corporations in the United States (C-Corp)
What do you do in corporate accounting?
Executives use financial reports produced by corporate accountants to guide their strategic business decisions. To offer a precise and current picture of the company’s financial situation, they will need to collect information from a variety of divisions, departments, and even locations.
What are 3 duties of an accountant?
By gathering, monitoring, and making necessary corrections to the company’s finances, an accountant assists organizations in making important financial decisions. Financial audits, bank statement reconciliation, and ensuring that financial records are accurate all year long are under their purview.
Conclusion
As promised, we have given you the important information you need as a prospective corporate accounting manager. So, you may now go ahead apply for your dream job.
Good luck!
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FAQ’s On Corporate Accounting
What is corporate accounting and its objectives?
The primary goal of accounting is to keep a systematic record of financial transactions in order to gain knowledge about business.
What are the four kinds of accounting?
- Corporate Accounting
- Public Accounting
- Forensic Accounting
- Government Accounting
What are the five basic corporate finance functions?
Financing (capital raising), capital budgeting, financial management, corporate governance, and risk management are the five basic corporate functions. These functions are all interconnected; for example, a company requires financing to fund its capital budgeting decisions.
What qualifications do you need to work in corporate accounting?
Analytical, organizational, interpersonal, and communication skills, as well as time management abilities, are required for the role of corporate accountant. A bachelor’s degree in accounting or a related field is required. A master’s degree in business administration, on the other hand, is a significant advantage.
What is the role of a corporate accountant?
Corporate accountants typically specialize in business accounting and are experts at ensuring financial records are in accordance with various regulations, laws, and policies. Furthermore, the corporate accountant may be in charge of overseeing the work of the divisional and regional accounting groups.
