In today’s fast-growing world, entrepreneurs are busy embracing technology and automating workflows. While some are expanding their product lines, others are ready to sail the boat overseas. In all this hustle-bustle, organizations need professionals to handle their money-related matters. After all, having a strong financial standing is every company’s utmost priority. You might have an eye for detail and familiarity with the numbers. Still, it is not enough to handle a company’s finances.
And that’s where accountants come into play. From maintaining financial records, ensuring compliance with sharing information with shareholders – accountants can apprehend finances inside and out. They create a sound tracking system for business’ assets, liabilities, expenses, and income to foster an informed decision-making process. A sound financial strategy also highlights where your company stands in terms of income and expenses.
Besides this, accountants can track business payables, handle payroll records, and take accurate financing decisions to save the company from drowning in losses. In short, they provide all financial data a company needs to succeed. If you don’t have an accountant on board yet, have a look below. Here we are listing different types of accountants and their role in an organization.
1. Tax Accountant
Are you well-versed with taxation protocols? At times, organizations are doing everything right, but their inability to fulfill tax obligations lands them into legal troubles. Do you know how to calculate taxes? Organizations hold diverse, complex, and wide-ranging financial portfolios that are not comprehensible by everyone. Therefore, consider hiring a tax accountant or learn the ropes yourself. You can pursue an online llm tax program to apprehend taxation regulations and plan for taxes.
Likewise, you will learn to analyze financial documents, calculate tax deductibles, and ensure timely tax payments. As a tax accountant, you can also perform a tax and income analysis to find ways for reducing taxable income. These professionals also demonstrate in-depth knowledge of accounting procedures and maintain the company’s tax database proficiently.
2. Cost Accountant
Every business wants to maximize profits, minimize costs, and cut back on expenses. You might think scaling down wages is the only way to reduce costs, but it impacts business productivity. Here, the need for a cost accountant arises. They utilize financial tools to determine the accurate cost of products and services. Similarly, they also analyze labor, production, shipping, and material costs to ensure cost-efficiency.
For instance, if imported raw material’s tariff is consuming a huge chunk of profits, they will find local products. In addition to eliminating the expense of tariffs, it would reduce the overall cost of sales. After all, local products are far cheaper than imports.
3. Forensic Accountant
Experts believe forensic accountants are the detectives of the financial world. They have the brains of a ‘numbers person’ with the curiosity of investigators. They analyze financial records and ensure compliance with regulatory bodies, common laws, and accounting standards. At the same time, they also offer investigation and litigation support. Besides legal help, they can serve as expert witnesses in court proceedings. Additionally, these accountants uncover hidden errors, omissions, and outright fraud in financial records. For instance, if there has been an omission of sales in the books, these professionals assess closing inventory to identify scams.
4. Management Accountant
We measure success in numbers in the business world – revenue growth, stock prices, expenses, etc. Do you know how to analyze these numbers? Management accountants evaluate the company’s financial standing and its impact on performance. They look into budgeting, external financing, reporting, and risk management to assess the company’s financial health. Similarly, they communicate all this information to business owners, helping them make key business decisions.
However, if you are cynical about hiring a management accountant, jump on the bandwagon yourself. You can complete an accounting degree online to develop a strategic blend of accounting and business skills. In addition to analyzing financial data, it will teach you how to make sound decisions regarding its future.
5. Certified Public Accountant
From loans, line of credits, long-term investments to T-Bills, organizations have their hand in every financial derivative. With such a complex financial infrastructure, you need upper-level accountants. Thus, look for a certified public accountant who can manage taxes, maintain accounting records, and prepare financial statements. They have in-depth knowledge of accounting procedures and calculation techniques. These accountants act as trusted advisors, helping organizations meet their goals. Similarly, they also assist executives in other fiscal matters such as litigation, audit, and reviews.
6. Project Accountant
Are you running a joint venture or working on consignments? Unsurprisingly, hiring a full-time accountant for projects can cost entrepreneurs a fortune. Hence, consider signing up a contract with a project accountant. He/she would oversee all money-related aspects of a project, such as prepare and collect invoices, validate billables, and approve expenses. Likewise, they will also plan and maintain budgets to ensure the profitability of the project.
Moreover, they create project accounts in accounting systems to maintain adequate records. If your project has debtors and creditors, accountants will review and approve all invoices. Lastly, they can also write-off all project-related billings and close projects upon competition.
7. Investment Accountant
In addition to profits, organizations have multiple investments to keep the income flowing in business. Since the markets are super volatile today, incurring profitable investment decisions has become challenging. So, why not hire an investment accountant? They are familiar with competent investment opportunities, helping organizations enjoy higher returns. If you are running a giant enterprise, these accountants will encourage you to invest in real estate.
Otherwise, they would put your money in financial securities like treasury bills, government bonds, commercial deposits, etc. Investment accountants are also well-versed with stock markets. They will assess your risk profile and refer high-performing stocks for investments.
8. Staff Accountant
Unsurprisingly, hiring a staff accountant is an incredible option for organizations that have a variety of work. Depending on the company’s size, they manage accounts payable and receivables to ensure smooth cash flow management. They schedule payments with the suppliers while aligning to debtors’ payments. Likewise, they also create monthly, quarterly, and annual budgets to outline their financial goals. Additionally, staff accountants ensure the organization’s compliance with financial regulations and international accounting reporting standards.
The role of accountants is increasing in today’s dynamic world. They fulfill the company’s technical, managerial, and advisory needs concerning finance. After all, organizations need experts to record, collect, and analyze their complex business models’ financial data. Before calling the shots, identify your financial needs to hire the best person for the job. In addition to bookkeeping and preparing financial statements, different types of accounts perform different specialized roles.