Guide To Accountants

What Is an Accountant?

An accountant is a professional practicing accountancy. The professional records business transactions, issues financial statements and prepares financial performance reports. The accountant works for individuals, professionals, businesses, organisations and other entities that have to keep their accounting records to meet the financial and tax obligations. The data tabulated by the accountant helps the clients take right decisions on financial matters. An accountant is trained in auditing, analysing and book keeping of accounts. The person advises businesses and people about tax laws. Some accountants advise investors on investment opportunities. xero accountants can perform accounting audit to find if everything is in order or there are discrepancies in the accounting record.

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How Can an Accountant Help a Business?

An accountant helps a business in various ways. The professional provides basic accounting and bookkeeping services. Businesses in need of help in the matters of finances and tax laws take help of an accountant. They seek this help to find their breakeven point. They learn about their business trends. The accountant defines financial goals that a company can achieve in the next few months or years. The key performance indicators of the business are audited and identified. It helps businesses find the projects that are delivering and worth investing as well as processes that are proving a drain on the finances. The projects not delivering the desired results can be shut down or modified based on the advice and guidance provided by the accountant. Businesses get to know their cash flow projections. They can compare their financial performance with their competitors and the industry benchmarks. Most importantly, they find out the real worth of their business. It allows them to seek the right level of investments and loans.


What Do Accountants Do?

Accountants offer comprehensive account and book keeping services. These records maintain data of expenses, incomes, debts and dues. The formats for the payrolls are established. Accountants can calculate gross wages, deductions, earnings, taxes and salaries of every employee. All sources that generate revenue are identified. The accounting department issues cheques after obtaining the signature of the authorised officer. In some organisations, accountants maintain records of purchase orders related to the procurement and inventory. Some of these items are purchased on credit, making the accounting record complex. Only a trained accounting professional can handle these tasks.


Why Do People Use Accountants?

It is mandatory by law for all businesses to keep records of their financial expenses and incomes. It is in their interest to maintain such records because they need to know where their money is going and from which sources the money is coming. Without proper record of expenses and earnings, they can make financial mistakes that will prove costly. Account records must be maintained in certain formats. Everyone is not an expert in accounting. The job requires use of accounting software and devoting time to account keeping. This job is better handled by a professional accountant.


What Are the Benefits of Using Accountants?

Accountants help maintain account records. This record helps comply with the financial and tax laws. Investors and bankers prefer dealing with companies that maintain their accounts properly. Errors can be avoided in payrolls, salaries, invoices, insurance payments, loan repayments and other payments.


What Types of Accountant Are There?

The different types of accountants include account keeper, auditor, financial advisor, tax professional, forensic account investigator and financial consultant.