The most worthwhile question for businessmen who intend to forge a viable tax strategy is what does an accountant do rather than toying with numbers? A large number of accountants carry out tasks related to finances which incorporate figures, numbers, and statistics. Calculations are at the heart of an accountant’s job but typically the primary responsibility of an accountant is to ensure that the financial documentation of an individual or an organization is complete. Generally, their duties are dictated by their specialization and particular job sector. There are different kinds of accounting jobs such as those mentioned in the US Department of Labor handbook including forensic, management, government accountants, sports accounting, etc. Most accountants perform the following tasks:
Bookkeeping
If you have been wondering what does an accountant do, then bookkeeping is the most important of tasks performed by an accountant. It pertains to appropriate maintenance of an entity’s financial records and involves management of accounts payable, accounts receivable, payroll, development of balance sheets, and other tasks related to credit and debit. Bookkeeping helps an accountant keep track of the revenue of an organization in relation to its expenses. These figures are of vital significance for business owners since any miscalculations can lead to failure of epic proportions for an enterprise. An accountant needs to be detail-oriented and should be well-versed with mathematics and statistics since the volume of data to be reviewed is significantly high and complicated formulae may have to be employed to get to handy conclusions.
Tax preparation
Still not clear about what does an accountant do? Well, according to US News and World Report, preparing taxes is another main task of an accountant. He or she has to determine the tax liabilities of an individual or a company and prepare the tax return. The accountant is responsible for ensuring that the taxes are filed appropriately and in time so that no legal sanctions are faced by their client or employer. Accountants can also assist their employer or client in forging formidable tax plans to minimize tax liabilities within the confines of the law. Tax accountants may work for individuals, businesses, or governmental organizations.
Auditing
Monetary resources can be kept on close watch by businesses by hiring auditors. They are responsible for unearthing any fraudulent practices and embezzlement of company funds and also ensure that the financial resources are not wasted. Veteran accountants can serve as financial advisors to company executives by offering strategies to reduce costs and enhance the company’s return on investment.
General administrative work
Finally, all accountants have to participate in conducting daily organizational and administrative tasks. This may include collecting documents and maintaining electronic records, sorting paper documents and maintaining electronic databases, filing, typing up reports, forging financial spreadsheets, printing and copying.
What does an accountant do?
Accountants are essential to the efficient financial functioning of any entity whether it is a restaurant, an individual, or a non-profit organization. Reckless and poor financial management can lead to inevitable doom for any business or enterprise. Accountants are a detail-oriented, passionate, and dedicated bunch who are great at keeping a close watch at even the minutest of affairs. If you are intending to pursue a career in accounting, then it is important that you know what does an accountant do? You also need to be acquainted with the skills and knowledge required to perform the assigned tasks whether you are looking to run your own tax preparation business or get employment in a government department as an auditor.
