A Career in Business Accounting: A Detailed Guide for 2023
In every business, ledgers, daily journals, Profit and Loss statements, Bank Reconciliation statements, and income and balance sheets offer an impartial picture of the financial position of an organization. They tell the correct situation about its cash sources, liabilities, feasibility of executive and investor decisions, and adherence to taxation and corporate laws. Further, accounting enables businesses to plan, control, and carry out their budgets and expenses, forecast revenues, purchase new assets, monitor financial health, make recruitment decisions and regulate economic growth. Thus, good Accountants are a necessity everywhere. Read on to learn about a career in business accounting.
What is accounting?
While discussing a career in Business Accounting, it is inevitable to explain what accounting is. Accounting is the procedure of recording the financial transactions of a company. The accounting process comprises summarizing, analyzing, and documenting these transactions to administrative agencies, regulators, and tax collection entities. The financial statements employed in accounting summarize economic transactions throughout an accounting period. These statements outline a company’s functions, financial situation, and cash flows.
Different kinds of accounting comprise financial accounting, management accounting, tax accounting, and auditing. Qualified accountants in numerous nations are designated Certified Public Accountants (CPAs).
A career in Business Accounting: What is an accountant?
An accountant is a professional liable for keeping and analyzing financial records. Most accountants are accountable for many finance-related duties, either for individual customers or for larger businesses and companies employing them.
We often discuss several other terms together with the phrase “accountant,” which can baffle us about the career. For example, “bookkeeper” and “accountant” are phrases that we use interchangeably. But there are many essential differences between these positions.
Generally, bookkeepers will have achieved an associate degree and concentrate on documenting financial transactions. Unlike bookkeepers, Accountants will have usually earned a bachelor’s degree in Accounting, and businesses entrust them with interpreting financial data rather than simply gathering it. In brief, accountants can be bookkeepers, but every bookkeeper cannot be an accountant.
Further, a certified public accountant (CPA) has cleared the CPA exam and has completed state licensing requirements. So, every CPA is an accountant, but every accountant cannot be a CPA.
Accounting is a general term that contains multiple job titles and roles within corps. There are three major types of accountants—management accountants, public accountants, and government accountants—all of which centre on different aspects of the job. External and internal auditors are also closely associated.
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A career in Business Accounting: Types of accountants:
The accounting domain provides various career tracks, allowing you to choose one that fits your interest. Here are six kinds of accountants:
Cost and management accountant (CMA)
These specialists help draft budgets and evaluate a company’s entire cost of manufacturing a product or delivering a service to estimate the break-even point and profitability. Cost accountants assist an organization in recognizing products, services, departments, and least profitable strategies. Also, using their financial wisdom, they suggest changes to procedures and policies to boost the organization’s cash flow.
To become a cost and management accountant, it is mandatory to complete a three-level CMA course provided by the Institute of Cost Accountants of India (ICAI). The three levels are as follows:
CMA Foundation: A person who has completed higher secondary education is eligible for this level. Graduates can exempt themselves from appearing for the foundation exam.
CMA Intermediate: after clearing the CMA Foundation exam, you can sit for the intermediate exam. Also, candidates with a graduation degree in any field other than fine arts are qualified to sit this exam. You can also apply for this level if you have cleared The Institute of Chartered Accountants of India (ICAI) Intermediate or The Institute of Company Secretaries of India (ICSI) Foundation. Nevertheless, before applying, you should complete Communication and Soft Skill (CSS) training and computer training.
CMA Final: candidates who clear the CMA Intermediate level can sit for the final exam. The final level also involves a seven-day Industry Oriented Training Program (IOTP) and fifteen months of practical training.
To succeed as a CMA, you should gain experience operating cost-estimating software. You should also develop a strong aptitude for accounting and mathematics and soft skills, such as research, problem-solving and analytical skills.
Chartered accountant (CA)
Chartered accountants are accountable for handling the finances, assisting with money management, and delivering financial advice. They also detail the economic performance of the business for making critical business decisions.
Education of higher secondary level or after your graduation or post-graduation.
- CA Foundation course
- Integrated Course on Information Technology and Soft Skills (ICITSS)
- CA Intermediate
- Articleship (3-year training)
- Advanced Integrated Course on Information Technology and Soft Skills (AICITSS)
- CA Final
Exams you need to clear with graduation or above as a qualification:
- CA Intermedia
- Integrated Course on Information Technology and Soft Skills (ICITSS)
- 3-year articleship
- CA Final
- Advanced Integrated Course on Information Technology and Soft Skills (AICITSS)
In both the above methods, you should register yourself as a member of the ICAI to be certified as a CA upon clearing the final exam.
CAs need specific soft skills like self-motivation and communication to excel at their position. Companies prefer employing candidates with strong commercial understanding, ethics, data analytics aptitudes, and knowledge of different accounting tools.
Forensic accountant:
A forensic accountant is liable for examining fraud and financial discrepancies. They often inspect financial records to ensure that their client’s economic activities abide by government regulations. Employing their financial expertise, forensic accountants may act as a witness in litigation.
To be a forensic accountant, you should first attain a bachelor’s or master’s degree in Accounting, Finance, or any related domain. After finishing your degree, you need to register for a specialized forensic accounting program. The Institute of Chartered Financial Analysts of India offers PG Diploma in forensic accounting. The ICAI also provides a certificate program in fraud detection and forensic accounting. Candidates with a bachelor’s degree and three-year experience are qualified to take this program.
Some soft skills required of a forensic accountant are critical thinking, problem-solving, attention to detail, communication, and analytical skills.
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Public accountant:
Public accountants are liable for completing taxes, consultations, and accounting and auditing services for public accounting firms and the government. They also audit financial statements and keep financial records for investors and banks. During consultations, they primarily help implement employee compensation packages and accounting systems.
Chartered Accountancy by the Institute of Chartered Accountants of India
Further, you can pass the US CPA (Certified Public Accountant) certification exam, recognized internationally but is not compulsory for public accountants in India. Having the CPA tag will help you work for global companies with branches in India.
Some skills of a CPA are analytical thinking, presentation, emotional intelligence, technical abilities, leadership, and people skills.
Tax accountant:
Tax accountants or tax consultants assist businesses and individuals file their tax returns for all financial years. This involves extracting data from their client’s financial records like mortgages, investment statements, wages, and employment.
Employers prefer graduates in taxation, accounting, or related domains. After graduation, you may pursue a post-graduation in your specific field or pursue the CA program.
A tax accountant should have strong mathematics, time management, decision-making, social awareness, problem-solving, and communication skills.
Auditor:
An auditor confirms that companies have a correct account of their financial data. They also study financial statements, accounting systems, and fiscal records and ensure compliance with financial rules. Employing their financial skillset, they help companies settle issues and confirm they do not recur again.
To work as an auditor, you need a bachelor’s degree in Accounting, but some organizations prefer candidates with a relevant Master’s degree or MBA. After your post-graduation, consider achieving certifications such as Company Secretary (CS) and CA.
Some of the most advantageous aptitudes include organization, analytical thinking, attention to detail, communication, and mathematics skills.
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A career in Business Accounting: What is business accounting?
Business accounting involves collecting and analyzing financial data on business activity, recording dealings, and making financial statements.
Business accounting is necessary for a combination of reasons. Monitoring your investments, liabilities, stock, and other records can help you protect your assets from theft, secure investors, and find ways to expand your company to the next level. The primary responsibilities of small business accounting are bookkeeping, organizing and filing tax returns, and preparing financial reports.
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What do accountants do in Business Accounting?
The roles and responsibilities of a business accountant form an inevitable topic in a career in business accounting. Business accountants finish day-to-day, weekly, monthly, quarterly, and yearly accounting tasks to keep a tab of the finances. The following are the accounting duties of a business:
Daily business accounting tasks:
In a career in business accounting, the day-to-day accounting tasks form the lightest part. Your daily business accounting duties consist of one primary task:
Check cash position:
Cash is the fuel of any enterprise. Begin your day by studying how much cash you hold. Equally important is to understand how much you anticipate receiving and paying during the forthcoming weeks and months.
Weekly accounting tasks:
Record transactions:
Record each daily or weekly deal like billing customers, receiving cash from buyers, and paying vendors, depending on volume.
Record and file receipts:
This part of the work involves maintaining copies of all invoices sent, cash receipts, and cash payments. Create a vendor file classified alphabetically for comfortable access. Make a payroll file arranged according to payroll date and a bank statement file categorized into months.
Standard practice is to toss all paper receipts into a container and try to interpret them at tax time. But, for a large volume of transactions, it’s better to arrange separate files for various receipts as you get them.
Review unpaid bills from dealers
Maintain a record of all of your vendors with billing dates, payment due dates, and amounts required. If vendors propose discounts for early disbursement, you may want to use the benefit.
Make payments to vendors and sign checks:
Follow your accounts payable and include funds saved to pay your suppliers timely to avoid late fees and annoyed associates.
Draft and send invoices:
Make sure to mention payment terms. Nearly all invoices are due within thirty days, cited as “Net 30” at the footing of your invoice. You will have more difficulty forecasting monthly income without a due date.
Study projected cash flow:
Controlling your cash flow is essential, particularly in the first year of your enterprise. Predicting how much cash you will require in the forthcoming weeks and months will enable you to reserve money sufficiently to pay bills and your workers and suppliers.
Further, you can arrive at more informed business judgments about spending your cash. You will need a cash flow statement indicating your current cash position, anticipated upcoming cash receipts, and due cash payments for this period.
Monthly accounting tasks in a career in business accounting
Balance your business checkbook
Reconciling your cash makes it more effortless to locate and correct any mistakes or omissions—either by you or the bank—in time to rectify them.
Review past-due receivables
Ensure to add an “aging” column to segregate “open invoices” by the number of days a bill is a past due. This gives you a glance at outstanding customer payments. As the fiscal year ends, you will consider the account again to decide on the receivables you need to write off for a deduction or send to collections.
Analyze inventory status
Save time while managing inventory to rearrange products by identifying those that sell quickly and those to be written off or marked down as they slowly.
Review or process payroll and approve tax payments:
After establishing a schedule to pay your workers, you should meet the payroll tax requirements based on local, state, or federal laws at different times. You should also evaluate the payroll summary before disbursing the payments to avoid alterations during the next payroll period.
Review actual profit loss vs. budget and prior period:
Comparing your profit and loss statement or an income statement for the month and year-to-date to your monthly or quarterly budget to identify where you are spending too much or not enough.
Evaluating the month-end balance sheet in comparison to a prior period:
You compare your balance sheet on a specific date to a balance sheet from a previous date to understand the handling of assets and liabilities. You try to understand which part is signing up or down and why.
Quarterly accounting tasks in a career in business accounting:
Prepare revised annual P&L estimate:
You prepare a revised annual P&L estimate to determine trouble spots and make adjustments to enhance sales and margins.
Review quarterly payroll reports and make payments:
The IRS and almost all states need any remaining quarterly payments and quarterly payroll reports.
Evaluate sales tax & make quarterly payments:
Complying and paying the sales tax in a state that requires it to avoid grave penalties to your company.
Calculate estimated income tax & make payments:
Review your year-to-date P&L to notice if you need to pay any estimated taxes for that quarter.
Annual business accounting tasks in a career in business accounting:
Review past-due receivables
Review past-due receivables to determine whether to mail past due bills to collection agencies or write them off for a deduction.
Review your inventory
Examine your current inventory to specify the value of items not sold. Write-downs of inventory translate to deductions on your year-end taxes.
How the BAT course by IIM Skills help you secure a promising career in Business Accounting:
An international leader in professional education, IIM Skills offers extensive training programs and courses in some of the most significant disciplines. The job-oriented programs here span between four and twelve weeks. Different learners like students, new job seekers, homemakers, professionals, and work-from-home professionals may find the courses beneficial. The institute offer placement assistance and guidance to create attractive resumes.
At IIM Skills, industry leaders with years of experience have expertly curated and designed explicit and exhaustive courseware in the disciplines of accounting and taxation. It has modules meeting industry standards to prepare students for real-world jobs as soon as they complete the program. This makes the BAT course by IIM Skills the best Business Accounting and Taxation Course in India. The following are the course details:
Course name: Master BAT course
Duration: three months
Fee: ₹ 49,900 +18% GST
Modules included in the course program:
Basics of Accounting and Accounting in Tally
- Business Accounting
- Advance Tally ERP 9 and Tally Prime
- Advanced Accounting in Tally
Basics of GST and GST in Tally
- Basics of GST
- GST in Tally
- GST Filing
Basics of TDS and TDS in Tally
- Basics of TDS
- TDS in Tally
- TDS filing
Payroll and Payroll with Tally
- Basics Payroll
- Payroll with Tally
Income tax with Tally
- Basics of Income Tax with Tally
- Income Tax E-Filing
Advanced Excel and MIS Reporting
- Advance Excel
- MIS Reporting and Financials
Key features of the Master BAT Course which make it the best program for a career in Business Accounting:
- Lifetime Support
- 100% Interview Guarantee
- Practical learning with tools
- Mentorship by leading CAs
- Community access to the alumni
- Lifetime access to live classes and recordings
- Live online BAT course for three months
- 120+ Hours Lectures
- Practical assignments for more than sixty hours
- Hands-on learning
- Internship opportunities
- Dedicated Placement Cell
- Globally accredited Master BAT certifications
- Full money-back guarantee
Tools you learn in the Master BAT course by IIM Skills:
- Quickbook software
- Advanced Excel
- Tally ERP software
- BUSY
What is the eligibility to join the Business Accounting and Taxation course by IIM Skills:
- You should have a bachelor’s degree in Commerce or a related field from an acknowledged and reputed university.
- You should have a fundamental knowledge of computers
- You should have basic verbal and written communication skills
Who is the course program for:
- Graduates holding a degree in B.com/ LLB/ BBA/ CMA
- Tax Experts
- Finance Professionals
- Entrepreneurs/Solopreneurs
- MBA aspirants/professionals
- Chartered Accountants and Company Secretaries
- Startups
To know more about the course program and a career in Business Accounting, you may contact IIM Skills at:
Phone: +91 9911839503
Email: [email protected]
Other course programs by IIM Skills:
- Content Writing Course
- Technical Writing Course
- Digital Marketing Course
- Advanced SEO Course
- GST Practitioner Course
- Investment Banking Course
Frequently Asked Questions:
Is Accounting a great career?
An accountant’s role in all businesses is of great significance. This significance makes it a promising career for someone wishing to work in an important position. Trained accountants earn high, making it an excellent career choice for someone wishing to maximize their earning potential.
What is the best career in accounting?
Accounting could be one of the best career choices for someone good with numbers. The following are some of the highest-paying Accounting jobs you might want to consider:
- Financial Controller
- CMA (Certified Management Accountant)
- Chartered Accountant
- Bank Branch Manager
- CGA (Certified General Accountant)
- Senior Accountant
- Financial Analyst
- Credit Supervisor
- Staff Accountant
- Bookkeeper
What are the three types of accounting?
A business must employ three different types of accounting to follow its revenue and expenses most accurately. These three types of accounting are cost, managerial, and financial accounting.
What type of accounting do small businesses use?
The two main accounting methods for small enterprises are cash and accrual basis. In cash basis accounting, you document income when received and pay the expenses. In accrual basis accounting, the recording of income happens when earned, and expenses happen when incurred.
What is a bad debt for a business?
Bad debt implies outstanding balances owed or loans that are no longer considered recoverable and are to be dismissed. This expense is the price of doing business with clients on credit. There is always some risk of defaulting inherent in offering credit.
Conclusion:
Accounting is a vital part of running both small and big businesses. Companies require skilled business accounting specialists for managing different accounts and tax filing in the enterprise related to vendors, clients, employees, inventory, etc. We hope this article helped you become adequately informed about a career in business accounting and answered most of your doubts. Let us know through your comments. Happy learning.
