The fuel for running all the engines of the society is money. Every penny and every dollar count. That’s where the work of an accountant comes in. In the simplest sense, the job of an accountant is to keep records of every transaction that involves money. However, this job requires multiple skills and abilities to ensure that there is no room for error.
Accountant as an occupation
One of the most in demand jobs in the market is that of an accountant. A good accountant not only knows how to keep records, but can also communicate the right suggestions to ensure the smooth financial operations of the organization. Thus, the profession demands accurate observations and monitoring skills. The work of an average accountant is regarded to be fairly stressful. But on the average pay, it is better compared to other occupations.
Different duties of an accountant
For those who wonder what does an accountant do, we have compiled some of the many tasks of an accountant:
- Recording transactions
An accountant records the transactions of the income and expenditure of a business enterprise. Through the use of invoices and bills, it’s the duty of the accountant to keep accurate and up-to-date information regarding all the sources of income and all the expenses incurred.
Either by following the policies of the organizations or by self-calculation, an accountant has to ensure that the expenditures of the organization are set within definite budget limits. If there is a situation where expenditure exceeds the set budget, then the accountant has to report it to the concerned authorities and set provisions to ensure that in a definite period the expenditures are balanced.
- Payroll release
One of the most common assignments of an accountant is to release the payroll of the staffs of the organization. After proper calculations of taxes and expenses the accountant has to release the amount that needs to be paid to the employees. In emergency cases the accountant also needs to look at the bank balance to ensure that the checks delivered to the employees don’t bounce because of the lack of balances.
- Internal auditing
To ensure that the accounting records are up-to-date and accurate, the accountant needs to look into the books of accounts in a periodic manner to check for errors and mistakes. A good internal audit will ensure that the external auditors will approve the books of accounts at the end of the financial period.
- Financial planning
The financial planning is done by the accountant in coordination with the heads of the organization. Basically financial planning ensures that the short and long term cash balance of the organization is maintained.
- Cash collections and payments
An accountant also needs to collect cash from the customers and grantees and give the proper receipts to them. Besides this, he also needs to disburse the payments to the concerned parties with cash or checks.
- Inventory management
The accountant has to keep the record of all the supplies present in the organization. Besides recording the stocks and inventories, it is also the job of the accountant to ensure that there is enough supply of inventories by giving a purchase order.
- Asset management
The accountant also has to keep the records of all the current assets like daily cash reserves and fixed assets like office properties. Timely valuation and depreciation also needs to be calculated by the accountant. In case the office needs assets the accountant has to ensure that there are enough funds for the procurement of the same.
- Maintaining Confidentiality
Financial information about the organization often requires very sensitive handling because it is prone to abuse and misuse. Thus the accountant also needs to ensure that the financial data is only available to the concerned authorities and is confidential.
Besides the above mentioned, there are other duties of an accountant depending upon the nature of the organization. Accounting as an occupation that requires carefulness, tactfulness and even creativity. To become a certified accountant, there are several courses offered in the market ranging from courses of 6 months duration to even those of 5 years. Experience is also highly valued by organizations seeking accountants.
Now that you know what does an accountant do, are you interested in pursuing an Accounting career?