Different Types of Accountants
Accountants perform different types of accounting functions like audit, financial analysis, tax return, consulting and advisory services, etc. They either practice individually or independently or be employed by an accounting firm or a multinational company. Accountants have to pass a national level certification course in each country, although non-qualified accountants also work either under other accountants or independently. It is the legal responsibility of qualified accountants to be honest, and avoiding negligence of their duties.
Top 8 Types of Accountants
Accountants perform multiple functions in their capacity in an organization or even when they practice accounting independently. Below are some different types of accountants, and their functions and duties are also listed herein:
#1 – Auditors
AuditorsAuditorsAn auditor is a professional appointed by an enterprise for an independent analysis of their accounting records and financial statements. An auditor issues a report about the accuracy and reliability of financial statements based on the country's local operating laws. are the accountants who help the organization comply with all the financial regulations and help them in the correct recording of their books of accounts. They review financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels., books of accounts, internal accounting systems, and fiscal records. They also help the organization in dealing with issues, if any, concerning accounting. They issue their audit report containing a summary of their observations and their impact on the financial statements and affairs of the company. Companies or large organizations are asked to perform at least one external audit a year.
#2 – Forensic Accountants
Forensic accountantsForensic AccountantsForensic accounting employs a mix of accounting, auditing, and investigative acumen by recording accounting documents, preparing reports, and performing financial analysis for use in legal proceedings. Thus, it provides an accounting analysis from a litigation perspective. practice audit, investigative skills to help the courts in legal matters. Forensic accountants review and analyze financial records to identify any error, frauds, and apart from this, they also check whether the records are as per state and federal laws. These accountants investigate white-collar crimesWhite-collar CrimesWhite-collar crimes are non-violent crimes. The principal intention is to make financial benefits through illegal routes. Such white-collar criminals use their position of power or prestige to conceal, deceive or violate trust for their gains. Such crimes result in financial losses of millions of dollars every year. like securities frauds, bankruptcy, embezzlement, etc.
#3 – Public Accountants
Public accountants are ones who perform day-to-day accounting activities like auditing, tax planningTax PlanningTax planning is the process of minimizing the tax liability by making the best use of all available deductions, allowances, rebates, thresholds, and so on as permitted by income tax laws and rules imposed by a country's government. It contributes to better cash flow and liquidity management for taxpayers, as well as better retirement plans and investment opportunities., consulting, and advisory services, whether through their own practice or while working in an accounting firm. Certified professional accountant (CPA) is a statutory credential provider in the US, and the Association of Certified Chartered Accountant (ACCA) is a statutory credential provider in the UK for qualified accountants.
#4 – Tax Professional
These accounting professionals are generally trained in the taxation field. They help individuals, partners, and large organizations file tax returns and provide consultancy and advisory services in tax-related matters.
#5 – Cost Accountants
Cost accountantsCost AccountantsCost accounting is a defined stream of managerial accounting used for ascertaining the overall cost of production. It measures, records and analyzes both fixed and variable costs for this purpose. help in maintaining the cost efficiency of the company. They help in budgeting, planning, and forecasting functions. They also help in analyzing variances in budgeted and actual numbers and reporting the reasons causing variances. Their overall purpose is to identify areas in the organization that needs improvements and makes them cost-efficient.
#6 – Investment Accountants
Investment accountants work in investment bankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc., i.e., in investment brokerage firm or asset management firm. They are responsible for compliance of the organization to all the regulations in the investment banking industry. They also help in improving the organization’s strategy.
#7 – Financial Advisor
Financial advisors help their clients (individuals and large organizations) by providing investment and financial planningFinancial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process. services to them. Their overall purpose is to improve the client’s financial position and future investment planning. For this, the first try to understand the client’s risk appetiteRisk AppetiteRisk appetite refers to the amount, rate, or percentage of risk that an individual or organization (as determined by the Board of Directors or management) is willing to accept in exchange for its plan, objectives, and innovation., and then they create an investment plan or portfolio for them and keep following up with them to make adjustments in the plan in the future.
#8 – Financial Consultants
Financial consultants are the accountantsAccountantsAn accountant is a finance professional responsible for recording business transactions on behalf of a firm, reporting the firm’s performance and issuing financial statements. Thus, an accountant plays an important role whether it is a small domestic entity or a large multinational company. who are skilled in finance and provide consulting services to their clients and help them make sound financial decisions. They may perform different kinds of accounting activities like they can review the client’s financial statements and comply with regulations. On a high level, they can help businesses in all of their financial needs.
Accountants are the ones responsible for major financial activities in the organization but honestly accounting job is more than just reviewing piles of receipts, posting day to day entries, and dealing with tax returns all the time. Though tax returns are still an important aspect of the accountant’s life, this profession’s roles and responsibilities are growing continually and, therefore, helping accountants worldwide work in more diverse profiles where their knowledge, interest, and skills can be exploited more efficiently than ever.
This has been a guide to Different Types of Accountants and its definition. Here we discuss the list of top 8 types of accountants with detailed explanations. You may learn more about financing from the following articles –