Key Functions of Your Accounting Department PDF

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Key Functions of Your Accounting Department...

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Key Functions of Your Accounting Department Who is watching your bottom line? The functions of the accounting and finance department in any business can get a little confusing. Entrepreneurs tend think and move quickly, so it is a key to your success that the accounting department becomes one the anchors of stability in your company. Over the next few articles, we’ll discuss how you can clearly define roles and responsibilities of your accounting department, starting with the basics. What are the Key Roles of the Accounting Department? While opinions vary and specific details of each position can be all over the board, the essential roles and duties of virtually any accounting department should include the following:     

Money out – making payments and keeping the bills paid Money in – processing incoming payments Payroll – make sure everyone gets paid (including the government) Reporting – preparing financial reports, e.g. P&L, Balance sheets and budgets Financial Controls – to avoid errors, fraud and theft Accounting Department Responsibilities in Detail 1. Accounts Payable (money out) – Ensuring that everyone is paid on time is critical in order to preserve positive relationships with vendors. The accounting department's responsibilities include keeping an eye on cost-cutting opportunities, such as evaluating whether there are any discounts or incentives available for paying particular vendors sooner. At the very least, AP should be timed so that the smallest amount of money is sent out per payment, i.e. no late fees! 2. Accounts Receivable and Revenue Tracking (money in) – Account for and track receivables, including unpaid bills and any required collection efforts, is another important responsibility of the accounting department. The department of accounts receivable is in charge of creating and tracking invoices. Customers must pay their invoices on time, which necessitates the use of a polite reminder system. 3. Payroll – Payroll is an important aspect of the accounting department's job, as it ensures that all employees are paid correctly and on schedule. Furthermore, accurate tax assessments are made and tax payments are made on schedule to state and federal government organizations. 4. Reporting and Financial Statements – The fundamental objective for effectively collecting data in your accounting software is to generate financial reports for budgeting, forecasting, and other decision-making processes. Furthermore, these and other reports are required for communication with investors, banks, and other professionals involved in your company's growth.

5. Financial Controls – Financial controls include reconciliations, delegating responsibilities, and adhering to GAAP accounting standards, all of which are applied with the goal of preventing fraud and theft. The Controller's job is to make sure that protocols are in place to ensure that the process runs smoothly. These are only a few of the primary tasks and functions of the accounting department in firms; the accounting department is responsible for many more responsibilities and subcategories. Those will be determined by the kind of your business. Inventory control and tracking, government paperwork and tax filings, and fund raising are just a few examples of important areas of concentration for your accounting department. It is critical for your company to define those obligations. While the particular tasks may differ from company to company, one thing is certain: if your accounting staff fails to perform these critical functions successfully and efficiently, you could be in for some unpleasant (and costly) shocks. The good news is that if these duties are adequately handled, your accounting department will serve as a stable foundation and the most significant measurement tool for your entire business.Staff Accountant: Job Description, Duties and Requirements Accounting businesses, public companies, non-profit organizations, and government agencies employ staff accountants. They prepare tax returns, monthly reports, and financial statements, among other paperwork. Employers prefer candidates with an accounting bachelor's degree and prior accounting experience. Job Description for a Staff Accountant A controller, director, or certified public accountant oversees the work of staff accountants (CPA). They generate and analyze budgets, maintain financial reports, records, and general ledgers, and execute general bookkeeping. Many staff accountants are also in charge of billing functions like accounts payable and receivable. Many accountants prepare tax returns, which might result in overtime during tax season, so expect a 40-hour workweek.

Responsibilities

Staff accountants also help with administrative tasks such keeping schedules, answering phones, filing, typing, and creating paperwork. If the accountant works for an accounting firm, he or she may have extra tasks. Accounting firms help clients in concerns concerning their financial affairs in addition to drafting tax returns and financial statements. It is usually the role of the staff accountants to meet with clients to discuss their financial concerns, such as real estate, equipment, and tax liability.

Requirements for a Staff Accountant

A bachelor's degree in accounting plus one year of accounting experience, either through an internship or previous work, are typical qualifications for the role.

Requirements for Education

A bachelor's degree in accounting is a four-year program that prepares students in accounting, business, management, information technology, and ethics. Courses including as macroeconomics, corporate communications, computer applications, statistics, and accounting information systems may be included in the curriculum.

Other Prerequisites

Basic mathematic skills, the capacity to analyze data, understanding of accounting principles, and outstanding verbal and written skills are all required of potential staff accountants. They must be able to multitask, set priorities, and arrange themselves effectively. Computer skills and experience with accounting software are also required. Some employers may need a criminal background check as well as a written test during the application process.

Job Prospects and Salary Information

According to the US Bureau of Labor Statistics (BLS), accountants and auditors should see a 16 percent increase in employment throughout the decade 2010-2020. (www.bls.gov). Staff accountants earned a median salary of $44,415 in 2013, according to PayScale.com. Staff accountants with less than a year of experience made $31,145 to $50,825 per year on average....