Every business operates with money and in order to get more financial benefits and monetary profit. So the money the backbone of every business. It’s very important for every business to make a record of every financial transaction along with the details of the purpose of the transaction. The art of recording all financial transactions is named as accounts while the person who performs the task of making accounts is called an accountant.
Accountant and auditors prepare accounts and make a detailed statement of each and every factor that somehow related to business. It includes creditors, debtors, sales, purchase, taxes, depreciation and many other things.
Accountant and auditor prepare a tax return and make sure that all the taxes are paid timely and accurately. They also review accounts, business assure accuracy and regulation compliance in financial statements. An Accountant also finds methods of cost reduction and tax saving in a legal way.
Duties of an Accountant
- Preparing and examining the accounting records, financial statements, and other financial reports in order to reach 100% accuracy in the account books.
- Computing taxes and filing tax returns, also finding ways to save tax. He is responsible for handling every matter related to the tax department.
- Accountant closely analyses the operation, costs, and revenues and suggest ways save money spend on expenses together with ideas of generating more revenue for the industry.
- He reports to a management if he found any extraordinary things or expense in the accounts.
- The accountant also develops and maintain budget together with periodic reports.
- The accountant provides internal and external auditing service to a business.
- The accountant is responsible to provide an update to management regarding any change in government policy regarding business or tax returns.
- The most important thing, an accountant can represent a client before taxing authorities and provide support during litigation.
Roles and Types of Accountants
There are different types of accountant for each specialized requirement.These are as follows:-
Chartered accountants: – These accountants are certified from the chartered account of India. These are hired by well-known companies. A chartered account has a deeper knowledge of accountancy and taxation procedure. He can advise companies about the financial matter and government rules and regulation regarding tax and accounts.
Company secretary: – Company secretary is account specialist who has acquired certification from ICSI. It’s important for all companies to appoint a company secretary who can look after their accounts and finances related matters. As per rules of regulations of Indian government and taxation authority, all the accounts of a company need to analyze by only a company secretary and should carry a stamp of company secretary in order to file a tax.
Management accountant: – A management accountant is that person who is hired by a management for making an account for that management. They work by recording company day to day financial records and maintain a ledger for a management.
Government accountant: – A government accountant is a person who is hired by any government authority for the task of making accounts.
The filing is required to work in the office. He should be fast enough to make the calculation and have knowledge of related software of accounting. As in today worlds, most of companies and business prefer to maintain their records over the computer so it’s important for an accountant to have proper knowledge of using the computer as he is likely to complete most of his tasks over the computer.
The work atmosphere of an accountant is very stressful because it involves financial matters. A little mistake could prove disastrous to a business. His mind is always full of Lots of numeric values and lots of calculation.
He needs to complete his work by a fixed deadline. Usually, the deadline means the last date of filing tax returns. And when it’s near to tax dates, he is pressurized to complete his task by the due date. Most of the time he works alone, but there can also be the team who works under the guidance of him.
He may have to travel to their clients in order to sort their queries.
How to become an accountant and auditors.
If you want to be certified accountants like chartered account or company secretary than you need to join their following institutes and courses. For becoming a chartered accountant you need to do chartered accountant course.
You need to clear the common proficiency test (CPT), which is an entrance level examination for the CA course.
You need to be passed out from 10+2 exam from commerce stream.
You need to clear 3-year article ship under a CA or CS for becoming a chartered accountant and company secretary.
You need to clear the final exam with minimum required marks to be passed out. After passing the final exam, you will be certified as a charted accountant or company secretary.
You need to be quick in the calculation as in exams you have to solve the many questions in a limited time.
You need to be well balanced and punctual about your study, because it’s not easy to clear the exams of CA.
As most of the accounts problems will be about analyzing the statement and finding the way to correct it. So you should have good analytical skills.
Most of the charted accountant normally gets pay between Rs 50,000 to 2,00,000 per month. Yet if you are well versed with your subject and good negotiation skills about the salary then you can get higher pay too.
The accountant has a very wide scope in every industry. It’s mandatory for every industry and company to make their accounts and pay taxes if there is any taxable income. Every company whether it’s private or public company it is required to hire an accountant to prepare their accounts. Only a certify accountant is authorized to make accounts of a company.
Besides all that, the tax is a complicated issue. An accountant can help us in assessing and paying taxes. He is well versed to deal to deal with every issue about taxes. Every year there has been seen a positive hike in demand for accountants.