What are the major functions or activities performed by accountants in a private industry?
http://www.bls.gov/K12/money01.htm
Accountants in a private industry have various functions and activities. Here are some major ones:
1. Financial Record-keeping: Accountants maintain accurate and up-to-date financial records for the company. This includes recording transactions, categorizing expenses, and keeping track of income.
To perform this function, accountants use accounting software and tools like spreadsheets. They enter data such as sales, purchases, payroll, and other financial information to ensure that the records are complete and accurate.
2. Financial Reporting: Accountants prepare and analyze financial statements, including the income statement, balance sheet, and cash flow statement. These statements provide insights into the company's financial performance and help in decision-making.
To generate financial reports, accountants compile data from various sources, reconcile accounts, and perform necessary calculations. This involves understanding accounting principles, regulations, and standards.
3. Budgeting and Forecasting: Accountants assist in creating budgets and forecasts for the company. They analyze historical data, market trends, and business objectives to estimate future revenues, expenses, and cash flows.
To develop accurate budgets and forecasts, accountants collaborate with various departments and gather information related to sales projections, capital expenditures, operating costs, and other financial factors.
4. Internal Controls: Accountants establish and monitor internal control systems to safeguard company assets, prevent fraud, and ensure compliance with legal and regulatory requirements.
To implement internal controls, accountants assess risks, design policies and procedures, perform periodic audits, and conduct regular reconciliations. They also identify control weaknesses and suggest improvements for better financial governance.
5. Taxation and Compliance: Accountants handle tax-related matters, including the preparation and filing of tax returns, ensuring compliance with tax laws and regulations, and minimizing tax liabilities.
To fulfill these responsibilities, accountants keep abreast of tax laws and regulations, maintain accurate tax records, calculate tax liabilities, and communicate with tax authorities as needed.
These functions are just a few examples of what accountants in private industries typically do. The specific duties may vary depending on the size and nature of the organization, industry requirements, and the accountant's role within the company.