Contrary to the common perception of what an Accountant does, an Accountant is not only a financial advisor, putting emphasis on his or her professional accounting skills. A Professional Accountant (PA) is an independent business advisor/counselor who actively participates in the selection of strategic management options and also performs a wide array of additional functions as follows: Creation of asset value. Business consultant. Promoter of small business loans.
A Professional Accountant or PA also assist with internal audit, providing budget analysis, preparing internal reports, and advising clients with respect to business strategy and planning. The responsibilities of a Professional Accountant also include the preparation of internal financial statements, preparation of balance sheet, the valuation of the company, and identification of assets, liabilities, and ownership among other things. As you can see from the above responsibilities, a professional accountant plays many important roles. As a result of this he or she is highly skilled in his or her field. As a result, most accountants are well known for their skills. However, there are different kinds of accountants, for instance cost accountants or sales accountants.
Cost accountancy is the most common kind of accountancy and is the definition of the term professional accountant. This kind of accountancy is primarily concerned with financial statement preparation and minimization, utilizing the best available costing methodologies, and evaluating the financial statement results of an enterprise. In this process, an individual would require adequate knowledge about the specific procedures to be followed. As a result, it is necessary to gain practical experience. Practicing cost accountants usually have at least five years of practical experience in an area where they have responsibility for providing accounting services.
On the other hand, auditing is the second definition of a professional accountant and refers to the examination and inspection of financial records that are used for planning purposes. An individual who is qualified to audit is one who has a master’s degree in accounting or any other relevant field, or is a CPA (Certified Public Accountant). The person qualified to audit is not necessarily an accountant, but an individual who has completed the training requirements to become certified as an accountant. Auditors will review financial records and perform an assessment of the business’s cash flows, the internal control system, the internal policies and procedures, and the risks associated with financing and transactions. An individual audited by a professional accountant can produce financial statements that show the results of the evaluation and provide recommendations for policy and procedure modifications.
One must keep in mind that any professional accountant is only qualified to examine financial statements. He or she is not qualified to make recommendations regarding remedial action. Therefore, before hiring an individual to examine financial information, it is important to confirm that he or she has ample knowledge in matters concerning accounts receivable and accounts payable.
A person should always hire a professional accountant who carries out his or her tasks with extreme care and competence. Since the task of an accountancy firm is to scrutinize financial information and conduct an audit, it is important that they carry out their duties with extreme care. Since it is impossible to predict what the result of an audit will be, every company should ensure that it hires an individual who is qualified, trained, and competent in his or her line of work. With these considerations in mind, it is very likely that you will make the best decision and hire the most competent accountant in your region.