A lot of people don’t realize what an accountant does. They think of accountants as just bookkeepers that do the boring tasks and just do the basic calculations using things like ppf interest calculators. But in reality, accountants are many different things and solve a wide variety of – often complex – problems for their clients. Accounting is a hard and challenging job. This is why there are many different types of accountants with different specializations. It is important to understand how accountants work before making important decisions about hiring one for your business or nonprofit organization. Below we list different types of accountants and describe what each type does.
Chartered accountant (CA)
A chartered accountant refers to those who have completed their degrees and passed the Chartered Accountancy exam, which is required for practising as an accountant in most countries. They specialize in providing financial advice for large companies or public entities and manage the financial affairs of these organizations.
An auditor is a person who conducts an audit to verify the accounts of a company, organization or individual to issue a report on the financial accounts, and if necessary, make recommendations for improvement. Internal auditors ensure that the company’s internal control mechanisms are operating effectively and that financial reporting complies with accounting principles. External auditors provide independent assurance on the financial statements using a variety of techniques, including direct observation and testing.
Government accountants are members of government who are responsible for preparing annual statements that describe revenues and expenditures in their jurisdiction. They also provide advice on policies and procedures related to budgeting, financial management, and other administrative matters.
Tax accountants are accountants who specialize in preparing tax returns for individuals and businesses. They have to follow all the rules and regulations of the tax department, which can be complicated. They are also responsible for ensuring that their clients pay the correct amount of taxes during the year.
Financial accountants are responsible for managing financial resources and assets of both small- and medium-sized companies as well as large corporations. They prepare budgets and cash flow forecasts, analyze financial reports, monitor investment plans, evaluate risk management strategies and make strategic decisions regarding investments.
Financial controllers help oversee the finances of their companies by keeping an eye on all aspects of a company’s operations, including accounting systems and data security measures, as well as monitoring cash flow and expenses.
A management accountant is a professional who provides financial and management expertise to an organization. They are often hired by the CFO or controller of a company or organization, but they can work for any business owner. Management accountants can be responsible for everything from gratuity calculation to analyzing the financial data of a company to providing reports that help manage the operations and growth of the company.
Management accountants perform a wide range of tasks related to accounting and finance, including:
- Preparing financial statements for internal use as well as external auditors (e.g., banks, investors) during annual review periods
- Preparing budgets for companies, either individually or as part of a team
- Conducting monthly and quarterly reviews of internal controls over cash flow and other accounting procedures