Accounting
An accountant is a common career choice for those with an analytical mindset and a desire to work with a business or personal financial data. An accountant primarily provides in-depth analysis and accurate reporting on financial records, most often completed as a supporting role to a chief financial officer (CFO) or a company’s finance department. Accountants also work directly with individuals to review financial records for tax filing for individuals or businesses. An individual trained as an accountant has the opportunity to work in a small, medium, or large company in either the public or private sector, as an independent in their own firm, or as a consultant or contractor to companies or nonprofit organizations.
Accountants are interested in specific and exacting details, day-to-day operations, financial accuracy, and taxes. For example, an accountant describes the present reality of a company or an individual’s finances.
Credentials are extremely important to accountants and financial analysts. Entry-level accounting jobs may require a recognized professional title, but advancement certainly depends on it. Pursuing a degree in accounting is the most obvious undergraduate course of action for a future accountant.
Each career choice has one dominant professional certification. For accountants, it is the title of Certified Public Accountant (CPA), which is bestowed by the Uniform Certified Public Accountant Examination and established by the American Institute of Certified Public Accountants. This is probably the most widely known and recognized professional designation in the financial industry.
Auditing
Auditors come in behind accountants and verify the work they do. They examine the financial statements prepared by accountants and ensure they represent the company’s financial position accurately. Auditors verify that these financial statements, particularly the ones of public companies that are required to be released annually, are assembled in accordance with generally accepted accounting principles (GAAP).
Like accountants, an auditor can work internally for a specific company or for a third party, such as a public accounting firm, to audit various businesses. Additionally, many auditors are employed by government and regulatory bodies, most notably the Internal Revenue Service (IRS).
Accounting vs. Auditing: An Overview
Accountants and auditors work with a business’s financial statements and ensure they are accurate, up-to-date, and in compliance with various regulatory standards. Accountants prepare these financial statements, which include the balance sheet, income statement, and statement of cash flows.
Beyond this, there are myriad additional duties that an accountant might perform, such as bookkeeping, tracking expenses and revenues, forecasting future profits and cash flows, and tax preparation. An accountant could be a dedicated employee of a company or work for a third party hired by businesses to manage their books and prepare their taxes.
