Accountants: What Do They Do?

On 28th February 2020 by Bryden Johnson to News

Financial management is often the most complex and confusing part of running a business. That is why accountants are so important. Statistics say that in 2018, 5.7 million businesses operated in the UK. At the core of these businesses are the accountants who ensure money is going in and out correctly.

If you want to take on this role, you need to obtain qualifications.

Below, we discuss the different functions and responsibilities that an accountant performs, as well as their importance to businesses.

An accountant’s primary obligation is to keep a record of an individual’s or an organisation’s financial transactions. By monitoring the flow of the money, a company’s financial objectives for budgeting, revenue projections and compliance with tax laws and regulations can be correctly addressed.

Specifically, accountants are often in charge of the following tasks:

Providing recommendations on the financial feasibility of investment opportunities, running costs and other expenses during budget planning meetings
Ensuring that the financial practices of the organisation they work for abide by internal and government regulations
Preparing financial documents
Preparing and paying tax returns for corporations
Keeping track of data about payables, taxes, profits and other transactions
Balancing accounts

In the UK, anyone can become an accountant. If a person is good at managing money, has an analytical mind and possess strong numeracy skills, accountancy is a good match.

Someone interested in becoming an accountant doesn’t need a degree in accountancy. They can graduate with any degree, or not have any university degree at all. There are a number of routes for an individual to take to achieve an accountancy qualification. For example, AAT, ACCA, ACA and CIMA.

What else do they do?

Accountants can also have a more holistic grasp of the business’ financial records to ensure accuracy and alignment with corporate strategy.

They can work in different aspects of an organisation’s financial management, but their primary roles are the following:

Managing an organisation’s financial systems and budgets
Liaising with clients to provide accurate and updated financial information or advice
Analysing a business’ financial system, identify risks and developing solutions with the management team
Advising on tax planning to minimise the company’s tax liability, and on tax issues related to corporate moves, such as mergers and acquisitions.
Undertaking independent financial audits and produce reports and recommendations based on the audit results
Arranging and preparing financial statements, such as monthly accounts, as well as financial management reports, which include planning and forecasting

Training to become an accountant is a rigorous process. And, depending on where candidates are in their accounting career, qualifying takes from three to seven years.

Bryden Johnson has been training accountants to both the ACA and the ACCA qualification throughout its history. Since 1897, we have helped companies in the UK take their business forward by offering financial services from experts in all aspects of financial management, from auditing to taxation.