What are the 3 Types of Accountants in a Company
Before going to discuss the types of accountant you should know the definition of accounting. Accounting is the process of recording the general entries to the analysis of reports.
As Per Business dictionary: Practice and body of knowledge concerned primarily with methods for recording transactions, keeping financial records, performing internal audits, reporting and analyzing financial information to the management, and advising on taxation matters.
It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm’s assets, liabilities and owners’ equity.
Accounting provides information on the
- resources available to a firm,
- the means employed to finance those resources, and
- the results achieved through their use.
What are Types of Accountants
There are mainly two categories of Accountant
- By Type of Authority
- By Type of Activity
Types of Accountants by Authority
General Accountant: These are clerical types of an accountant, which almost every organization has. Their role is related to bookkeeping, to update the books of accounts, like Daybook, General Ledgers
Charted Accountant: Who passed the professional certificate from the charted accountancy bodies. They have the authority to pass the financial statements and accounts as per defined the legal relevant authority.
Types of Accountants by Activity
There are mainly 3 types of Accountants
- Charted Accountants
- Management Accountants
- Cost Accountants
As you know there are mainly three types of accounting ie Financial, Managerial and Cost Accounting. So the main accountants are also of 3 types. However by designation, there are some other accountants are too, whose detail will be share later.
Charted Accountant:
These accountants are related to the preparation of financial accountants as per the governing authority of the government. Who passed the exams from charted accountancy bodies like, ICAP, ICAEW ETC. Their Role is certifying the Financial Statements of the organization at the end of the fiscal year. They play a vital role in the organization from bookkeeping to the auditing of books of accounts. But their working boundaries are from translation to preparing the financial statements as per IRFS.
They are bound to follow the rules and regulation, standards, pattern and time framework. A qualified Charted account has the authority to pass the books of accounts.
Cost Accountant:
Their role is related to the cost of the product, stock inventory maintained for reducing the cost. The accountant who is involved in the cost of goods sold or the cost of goods manufactured is called a cost accountant. They have to pass the exams under CIMA, COST ACCOUNTANCY, ICMA as per governing authority of the country. Valuation of the product is the pure purpose of these accountants.
Management Accountant:
Management accountant is involved in business managerial level activities. Analysis of the financial reporting, costing, taxation matters. Overall they are looking at the working of Financial accounts, Costing of products or services, tax and other legal matters related to accounts.
Management accountants – otherwise known as cost, managerial, corporate, industrial or private accountants –record and analyze the financial information of the companies where they are employed. They also provide performance evaluations, as well as budgeting, asset and cost management.
Many management accountants choose to pursue an Accounting MBA to help enhance their careers. Management accountants often play an important role in their organizations. Acting as strategic partners, management accountants analyze and interpret information to provide the data that managers and corporate executives need to make sound business decisions.
Other responsibilities include providing forecasting information, performing variance analysis and reviewing and monitoring costs. Management accounting duties also include preparing financial reports for creditors, stockholders, tax authorities, regulatory agencies and other groups.
Management accountants may work in a variety of areas within the accounting departments, including planning and budgeting, cost accounting and financial analysis.
Public Accountant
A public accountant is a general accountant who performs a wide range of duties, including accounting, auditing, tax, and consulting for a variety of clients. A public accountant’s clients will usually be corporations, nonprofit organizations, governments or individuals.
Public accountants can own their own accounting firms or work for public accounting firms that offer their services to the public for a fee.
In addition to having a college degree, most public accountants are Certified Public Accountants (CPAs). The industry is always changing, so public accountants must continually educate themselves on new tax laws and accounting techniques.
Recent accounting scandals have increased restrictions on public accountants and put renewed focus on proper accounting training. They are now limited in the non-auditing services they can provide to their clients, and accounting firms can no longer provide both audits and advice on technology, investment banking, legal matters or human resources to the same client. They can, however, still advise on tax issues.
Careers in public accounting will no doubt be challenging, but ultimately rewarding and refreshing as the changing nature of the industry demands continual learning.
Government Accountant
Have you ever wanted to work for the IRS? A career in Government Accounting may be for you.
Government accountants and auditors are the watchdogs of the accounting world. They work in the public sector, maintaining and examining the records of government agencies and auditing private businesses and individuals whose activities are subject to taxation or government regulations.
Government accountants can work for Federal, State and local governments, where they must ensure that revenues are received and expenditures are made in accordance with laws and regulations.
In terms of options, government accountants working in the federal government enjoy the flexibility to work as Internal Revenue Service (IRS) agents or in financial management, financial institution examination, or budget analysis and administration.
Internal Accountant
Internal auditors are efficiency masters and help their organizations run a tight fiscal ship. They use their keen skills of observation, interpretation and analysis to uncover inefficiency and then determine how to help things run more efficiently.
If there’s any waste, mismanagement, or fraud happening within an organization, it is the internal auditor’s job to uncover it, evaluate it and then make recommendations as to how to improve the organizations’ processes. Internal auditors must also closely study and evaluate their organization’s financial and information systems, management procedures, and internal controls to ensure records and data are accurate.
Internal auditing also involves reviewing company operations to ensure they are in compliance with corporate policies and government regulations.
