Accountant: Curious about what an accountant does and why their role is crucial? An accountant is responsible for managing financial data, ensuring accuracy, and supporting strategic decisions.
From reviewing tax records to preparing audits, accountants handle many daily duties that keep businesses on track. Whether working in a small business or as a chartered accountant, they manage budgets, track expenses, and maintain financial health.
Here, we’ll explore the 10 functions of an accountant, the skills they need, educational requirements, and the average salary. Discover why accounting is an essential and rewarding career.
What is an Accountant?
An accountant is a professional who manages and analyzes financial records for businesses or individuals. They track income, expenses, and liabilities, ensuring accuracy and compliance with regulations. Accountants provide crucial financial insights that help businesses make informed decisions.
For example, a chartered accountant may advise a company on tax strategies or budget management. While bookkeepers focus on recording financial transactions, accountants interpret and analyze this data.
Accountants may work in various roles such as public, management, or government accounting, and are often responsible for audits, budgeting, and ensuring financial stability. Certified accountants have additional responsibilities, like certifying financial statements.
Also Read: Basic Accounting Terms
10 Functions of an Accountant
An accountant plays a crucial role in managing financial data, ensuring accuracy, and helping businesses make informed financial decisions. Below are the primary functions and responsibilities an accountant holds:
1) Managing Financial Records:
Accountants maintain accurate financial records, including balance sheets and income statements, ensuring compliance with legal standards. These records are essential for evaluating the company’s financial position.
2) Tax Compliance and Filing:
Accountants calculate taxes owed and prepare tax returns for individuals and businesses. They ensure taxes are filed accurately and on time, offering advice on how to reduce future tax liabilities.
3) Budgeting and Financial Planning:
Accountants create budgets, forecasts, and financial models to plan and allocate resources effectively. They ensure businesses stay on track financially by providing essential financial insights.
4) Auditing Financial Data:
Accountants conduct audits to verify the accuracy of financial records, ensuring adherence to regulations. They help identify discrepancies and suggest improvements for stronger financial practices.
5) Ensuring Compliance with Regulations:
Accountants ensure that financial operations comply with accounting standards, tax laws, and company policies. They stay updated on changes in regulations to keep the business in good legal standing.
6) Advising on Financial Strategies:
Accountants provide advice on cost reduction, investment strategies, and improving financial performance. Chartered accountants offer strategic insights that help businesses make informed financial decisions.
7) Monitoring and Managing Cash Flow:
Accountants monitor cash flow to ensure the organization has sufficient funds to cover its obligations. They manage incoming and outgoing cash to maintain financial stability.
8) Reconciliation of Accounts:
Accountants reconcile accounts payable and receivable, ensuring accurate recording of all transactions. They resolve discrepancies, keeping financial records in order and reducing errors.
9) Payroll Management:
Accountants manage payroll, including calculating wages, ensuring tax deductions, and making timely payments. They also handle employee time-off records and other payroll-related tasks.
10) Record-Keeping and Reporting:
Accountants prepare detailed financial reports, such as profit and loss statements, for management, investors, and regulators. These reports help stakeholders understand the company’s financial status and guide decisions.
Each function contributes to maintaining financial integrity and guiding business decisions. Whether working as a chartered accountant or in other roles, their expertise is essential to a company’s success.
Also Check: Objectives of Accounting and Its Importance
Qualifications and Requirements for Becoming an Accountant
To become an accountant, certain education, certification, and experience are essential. Here, we’ve mentioned the detailed information on the basic accountant requirements:
Educational Requirements:
Most accountants need at least a bachelor’s degree in accounting, finance, or a related field. This includes courses in areas like tax law, financial recordkeeping, auditing, and ethics. Some entry-level positions may require only an associate degree, but higher-level roles often need more education.
Certifications:
Accountants can pursue various certifications to boost their career prospects:
- Certified Public Accountant (CPA): This is a prestigious certification for accountants, which requires passing the CPA exam, consisting of four sections: Financial Accounting and Reporting (FAR), Auditing and Attestation (AUD), Taxation and Regulation (REG), and a choice of one discipline section like Business Analysis and Reporting (BAR).
- Chartered Accountant (CA): This certification is common for accountants in some countries, often requiring additional exams and work experience.
- Certified Management Accountant (CMA) and Certified Internal Auditor (CIA) are also valuable for those interested in specific areas of accounting.
Experience:
Work experience is crucial for becoming a skilled accountant. Many accounting jobs require candidates to have practical experience, which can be gained through internships or entry-level roles.
Moreover, some accountants pursue graduate degrees in accounting, which can lead to career advancement and higher salaries. For example, a master’s degree may be required for managerial or specialized roles.
Also Read: Is CA better than MBA in Finance?
Skills Required for Accountants
To succeed in the accounting field, an accountant needs a mix of technical expertise and strong interpersonal abilities. Here are the key skills required to thrive as an accountant:
1. Technical Skills
- Accounting Software Proficiency: Knowledge of tools like QuickBooks, Excel, and other accounting software is crucial for accurate financial reporting.
- Understanding of Accounting Principles: A solid grasp of GAAP and IFRS ensures accountants maintain accurate and compliant financial records.
- Mathematical & Analytical Skills: Accountants need strong numerical skills to analyze financial data, identify trends, and detect errors.
- Financial Analysis: Ability to interpret financial data and generate insights to support business decisions.
2. Soft Skills
- Attention to Detail: Precision is essential for identifying errors and maintaining accurate financial records.
- Communication: Clear communication is necessary for presenting complex financial information to non-financial stakeholders.
- Problem-Solving: Accountants must tackle financial challenges and discrepancies with creative and effective solutions.
- Time Management: The ability to handle multiple tasks and meet deadlines is key, especially during busy periods like tax season.
3. Organizational and Ethical Skills
- Organization: Accountants must manage large amounts of data, maintaining well-organized records and files.
- Ethical Integrity: Upholding ethical standards and ensuring financial accuracy and compliance with laws are crucial responsibilities for an accountant or chartered accountant.
Also Read: What is Accounting Principles?
By honing these core skills, accountants can provide accurate financial insights, ensure compliance, and effectively support organizational growth.
Accountant Salary in India
The salary for an Accountant in India can vary depending on factors such as location, experience, and industry. On average, accountants earn between ₹4,00,000 and ₹8,00,000 per year. In general, the estimated monthly pay for an accountant is ₹23,000, with the potential for additional income from tips, commissions, bonuses, or profit-sharing.
| Accountant Salary in India: City-wise Salary Comparison | |
| City | Average Annual Salary (INR) |
| Delhi NCR | ₹5,00,000 |
| Bangalore | ₹6,00,000 |
| Mumbai | ₹5,50,000 |
| Hyderabad | ₹4,80,000 |
| Chennai | ₹4,50,000 |
Accountants working for medium to large companies may also receive benefits such as retirement plans, health insurance, and childcare reimbursement. Independent accountants or consultants may earn more through a commission or fee-based income model, though they may not have access to employee benefits.
However, in comparison to international salaries, the median salary for an accountant in the U.S. was approximately $79,880 annually in 2023, with top earners reaching over $137,280.
Also Check: 20 Accounting Interview Questions & Answers for Freshers
Therefore, Becoming an Accountant offers strong career prospects with competitive salaries, especially in major cities like Delhi, Bangalore, and Mumbai. With the right blend of technical and soft skills, accountants can enjoy rewarding opportunities across various sectors and grow both professionally and financially.
Learn Finance, Tax & Accounting with PW Skills
The PW Skills Certification Program in Finance, Tax, and Accounting (CPFTA) is a 4-month online course, developed in collaboration with PwC India. This course provides comprehensive learning in finance, tax, and accounting to help you advance in the finance industry.
Here are some of the top highlights and features of the CPFTA Course:
- Industry-Relevant Curriculum: Stay informed about the latest trends, designed in collaboration with PwC India.
- Professional Certification: Receive a certificate from PwC India to enhance your credentials.
- Expert Guidance: Learn from seasoned professionals with extensive industry experience.
- Practical Learning: Apply knowledge through case studies and real-world financial scenarios.
- Finance Tools Training: Learn to use essential tools like Zoho Books and Excel to sharpen your skills.
Sign up for the PW Skills Accounting & Finance Online Course and take the first step toward advancing your career in finance!
Accountants prepare and assess financial records, pinpoint potential risks and opportunities, and offer solutions to both businesses and individuals. They ensure financial accuracy, evaluate risks, and ensure proper tax payments, supporting better decision-making. An accountant tracks, manages, and corrects financial records for businesses. They perform financial audits, reconcile bank statements, and ensure that financial records remain accurate throughout the year to support informed decision-making. A career in accounting typically requires a bachelor's degree in accounting or a related field. Additional certifications like CPA or CMA can enhance job opportunities. Gaining experience and continuing education are important for career growth. You can also consider our PW Skills CPFTA Course for further learning. A Chartered Accountant (CA) is a professional accountant specializing in financial management, taxation, auditing, and business strategy. They provide expert financial services to businesses and individuals and are highly trained and certified by professional bodies. An accountant’s daily duties include managing financial records, tracking income and expenses, reconciling accounts, preparing reports, and ensuring compliance with regulations. They also provide insights to improve financial efficiency and assist in decision-making processes.Accountant FAQs
What does an accountant do?
What are the roles & responsibilities of an accountant?
How do you become an accountant?
What is a Chartered Accountant (CA)?
What are the daily duties of an accountant?
