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What Is the Role of an Accountant? Trends, Role, and Responsibilities

Accounting may appear to be a simple profession at first glance—after all, it's just numbers, right? While working with financial data is an important part of the job, accounting is a critical business function that requires far more problem solving than you might think.

So, what exactly does an accountant do on a daily basis? We'll go over the roles and responsibilities, important skills, and career outlook for affordable accountants, as well as current trends affecting the field, in this section.

What exactly is an accountant?

Accountants are in charge of keeping and analysing financial records for their employers. Most accountants are in charge of a wide range of financial tasks, either for individual clients or for larger businesses and organisations that employ them.

Several other terms are frequently used in conjunction with the phrase "accountant," which can lead to misunderstandings about what this profession entails. For example, while the terms "accountant" and "bookkeeper" are sometimes used interchangeably, there are several key differences between these job titles.

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Bookkeepers typically have at least an associate degree and focus on recording financial transactions. Accountants, on the other hand, will have at least a bachelor's degree in accounting and will be tasked with interpreting financial data rather than simply gathering it.

1. To summarise, accountants can be bookkeepers, but not all bookkeepers can be accountants.
2. A certified public accountant (CPA) is an accountant who has passed the CPA exam and met the state licencing requirements. 
3. The effect of this is that while all certified public accountants are also accountants, this is not always the case.
4. Accounting is a broad term that refers to a variety of job titles and roles within organisations.
5.  Public accountants, management accountants, and government accountants are the three main types of accountants, each focusing on a different aspect of the profession.
6.  Internal and external auditors are also inextricably linked.

Responsibilities and Roles

Although an accountant's daily duties will vary depending on position and organisation, some of the most common tasks and responsibilities of accountants include:

Complying with applicable legal and regulatory requirements by verifying the accuracy of financial documents

Creating and maintaining critical financial reports

making sure taxes are paid on time and correctly preparing tax returns

Assisting organisations in running more efficiently by analysing financial operations, recommending best practises, and identifying and solving problems.

Providing cost-cutting, revenue-boosting, and profit-maximizing advice

Conducting forecasting and risk assessment evaluations

Accountants are also required by law to act honestly and to avoid negligence in their practises. As such, they are also accountable for ensuring that their clients' financial records are in accordance with applicable laws and regulations.

Important Capabilities

To be successful in their roles, all accountants must possess a number of skills. The following are some of the most important skills for accountants:

Accounting professionals must pay close attention to detail in order to keep information accurate and well-organized. It is easy to make mistakes with the amount of financial data that must be analysed; however, simple errors can lead to much larger problems if they are not caught.

• Business acumen: In order to accurately analyse and interpret financial data, an accountant must understand the basic functions of a business. A solid business foundation adds context to the financial data that accountants work with on a daily basis.
• Computer literacy: In order to work effectively, professionals in this field must be able to use advanced accounting software and other computer-based tools.
• Analytical abilities: A large part of accounting is collecting and analysing financial data, which is essential for identifying patterns and potential issues. In fact, applying data analytics to the accounting field is a new trend in the industry that is expected to grow in the future.

Accountants must be able to communicate effectively in order to accurately gather facts and figures from clients, managers, or other stakeholders. They must also be able to clearly articulate their work's results and present their findings in written reports.

• Mathematical abilities: It is a common misconception that you must be good at math to be an accountant. True, math skills are necessary for analysing, comparing, and interpreting data and figures; however, complex mathematical skills are not typically required to become an accountant. Prospects for the Future

Accounting is a high-demand profession with high pay and job growth.

According to the Bureau of Labor Statistics (BLS), the number of accountants and auditors will increase by 7% by 2030.

Accountants with one to three years of experience can earn between $51,500 and $96,500 per year, according to the 2019 Accounting and Finance Salary Guide compiled by Robert Half. Those with five years of experience or more can earn up to $129,250 per year.

Location is also a factor in determining an accountant's earning potential. The salary you can expect to earn in a given city or region is influenced by factors such as the cost of living and the scarcity of talent. For example, according to Robert Half data, people in all industries and professions who live in Boston, New York City, and San Francisco earn 34%, 40.50%, and 41% more than the national average, respectively.

Most employers require at least a bachelor's degree in accounting or a related field, such as Finance and Accounting Management. In many cases, additional certifications are also preferred; having these credentials can help improve a job seeker's prospects. As a result, many accounting professionals choose to become Certified Public Accountants, or CPAs, by passing the licencing exam administered by the Association of International Certified Professional Accountants.