What does an Accountant do?
You may not realise it unless you have studied accounting or worked in a large business, but accounting is about more than your yearly tax return.
Accounting forms the basis of the world's financial and economic system.
Indeed, accountants play a big role in all types of businesses and organisations. From sales that are made through a cash register, to financial markets and farming.
In Australia, a registered tax agent is most often an accountant, who can advise you on your requirements under the law and help you prepare and pay your taxes.
In addition, some tax accountants are also financial planners. That means, they can detail your tax requirements and design and implement strategies for you and your family.
In addition to tax accountants, we have:
- Management accountants. In a company, management accountants help make high-level decisions like strategy and forecasts. Every company has a 'Chief Financial Officer' (CFO) who is behind the financial decisions made by the CEO and Directors. Because there is a CFO in every big company, accountants can find themselves climbing the corporate ladder very quickly!
- Financial Accountants. Financial accountants are great with numbers. They help to 'balance the books', prepare financial statements and keep the company moving.
Ultimately, accounting is more than just numbers. It is the language of the financial world. Therefore, it is important for everyone to have an understanding of basic accounting.
As a bonus, it might save you a lot of money!
Test Your Knowledge
Are all accountants just tax accountants?
Accountants come in all shapes, sizes and roles. Tax accounting is just one field. Some of the other positions they fill are in financial accounting, helping to balance the books; and management accounting, using numbers to make company decisions.
My Mum would say, "French is the language of love." But, Dad (an accountant) always says, "money talks". Is accounting more than just numbers?
Accounting might seem like intimidating mumbo-jumbo at first, but it is the language of business and economics. And while some people might call it the second language of love, the truth is -- money talks!
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