How many types of Accountants in Business
Table of Contents
What are Types of Accountants
Before going to discuss the types of accountant you should know the definition of accounting. Accounting is the process from recording the general entries to 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.
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 Day book, 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 accounting ie Financial, Managerial and Cost Accounting. So the mainly accountants are also of 3 types. However by designation there are some others accountants are too, whos detail will be share later.
Charted Accountant: These accountants are related to 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 Financial Statements of the organization at the end of the fiscal year. They play 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 frame work. A qualified Charted account have 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 cost of goods manufactured is called cost accountant. They have to pass the exams under CIMA, COST ACCOUNTANCY, ICMA as per governing authority of the country. Valuation of product is the pure purpose of these accountants.
Management Accountant: Management accountant are involved in business managerial level activities. Analysis the financial reporting, costing, taxation matters. Overall they are looking the working of Financial accounts, Costing of products or services, tax and other legal matters related to accounts.