Types of Accountants: Which One Should You Approach?

Accounting and finance are two inextricable parts of any business. That’s why hiring an accountant is inevitable to make sure that your accounts and finances are in order. An accountant is a professionally qualified and trained person who provides quality services, so your business keeps proper records of all its financial and accounting transactions and pays all relevant taxes on time.

In general, the accountant performs a vital function of the business or even serves an individual by way of public management accounting and internal audit services. Highly experienced accountants function in three major fields, but they must have the necessary qualifications for each.

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Public Accountants

They’re also known as a “typical accountant.” They perform a broad range of activities that include basic bookkeeping, taxation matters, auditing, and other associated consulting activities for his clients. This includes individuals, government departments, corporations, and non-profit organizations. Public accountants also choose specialised spheres such as tax matters or prepare and submit income tax papers of individuals. Then, there may be accountants who specialise in compensation or health benefits for employees or even design data processing and accounting systems. You can even get your financial statements audited by accountants to inform the authorities and investors that relevant financial statements have been filed properly. Public accountants usually have a CPA or Certified Public Accountant degree. They work independently or with firms that deal exclusively in public accounting matters.

Management Accountants

They record and analyse the entire financial data supplied by the client for whom they work. A management accountant’s principal responsibilities include budgeting, cost management, performance evaluation, and asset management. They’re also part of the strategic planning team or even involve themselves in developing new products, particularly in the analysis and interpretation of financial information and advising corporate executives to make the right business decisions. Their responsibilities also include preparation of financial reports for stockholders, regulatory agencies, creditors, and the tax authorities. A management accountant usually works in an accounting department, which is mainly responsible for financial analysis, budgeting, planning and cost control.

Internal Auditors

They check the internal records of the organisation and suggest ways to prevent mismanagement, fraud or waste. Their principal job is to evaluate their client’s information and financial systems, internal controls, and management procedures. Reviewing company operations for their effectiveness, efficiency and compliance with the company’s procedures and policies, prevailing laws as also government regulations are also part of an internal auditor’s responsibilities.