Different Types Of Accountants List Of Top 8 Types Of Accountants

Different Types of Accountants

Top 8 Types of Accountants

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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.read more are the accountants who help the organization comply with all the financial regulations and help them correctly record 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.read more, books of accounts, internal accounting systems, and fiscal records. They also help the organization in dealing with issues, if any, concerning accounting. Finally, they issue their audit reportAudit ReportAn annual report is a document that a corporation publishes for its internal and external stakeholders to describe the company’s performance, financial information, and disclosures related to its operations. Over time, these reports have become legal and regulatory requirements.read more 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 auditExternal AuditExternal Audit is defined as the audit of the financial records of the company in which independent auditors perform the task of examining validity of financial records of the company carefully in order to find out if there is any misstatement in the records due to fraud, error or embezzlement and then reporting the same to the stakeholders of the company.read more a year.

#2 – Forensic Accountants

Forensic accountantsForensic AccountantsForensic accounting is the investigation of fraud and misrepresentation.read more practice audit and investigative skills to help the courts in legal matters. Forensic accountants review and analyze financial records to identify any errors or 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.read more like securities frauds, bankruptcy, embezzlement, etc.

#3 – Public Accountants

Public accountants 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.read more, consulting, and advisory services, whether through their practice or in an accounting firm. A certified professional accountant (CPA) is a statutory credential provider in the US. The Association of Certified Chartered Accountants (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.read more help in maintaining the cost efficiency of the company. They help in budgeting, planning, and forecasting functions. They also help analyze variances in budgeted and actual numbers and report the reasons causing variances. Their overall purpose is to identify areas in the organization that need improvements and make 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.read more, i.e., in investment brokerage firms or asset management firms. 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.read more services. Their overall purpose is to improve the client’s financial position and future investment planning. For this, they 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.read more, and then they create an investment plan or portfolio for them and keep following up with them to make adjustments to the plan in the future.

#8 – Financial Consultants

Financial consultants are 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.read more skilled in finance who 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. As a result, they can help businesses with their financial needs on a high level.

Conclusion

Accountants are responsible for major financial activities in the organization. Still, honestly, the accounting job is more than just reviewing piles of receipts, posting day-to-day entries, and dealing with tax returns. Though tax returns are still an important aspect of the accountant’s life, this profession’s roles and responsibilities are growing continually, helping accountants worldwide work in more diverse profiles where their knowledge, interest, and skills can be exploited more efficiently than ever.