What does an accountant do?

An accountant is a professional responsible for systematically recording, monitoring and evaluating a company’s financial transactions. The accountant’s main task is to ensure that all financial operations are documented accurately and in a timely manner, in order to maintain transparent and traceable accounting records. Accountants play a crucial role in a company’s financial health and help ensure regulatory compliance.

An accountant’s tasks:

1. Recording business transactions:

• Accountants document all of the company’s financial transactions, including income, expenses, investments and sales. This is often done using supporting documents such as invoices, receipts and bank statements.

1. Double-entry bookkeeping:

• Most accountants use the double-entry bookkeeping system, in which each business transaction is recorded in at least two accounts (debit and credit). This ensures a high level of accuracy and enables better control over financial data.

1. Preparation of financial reports:

• Accountants are responsible for preparing financial reports, such as the balance sheet and the profit and loss statement (P&L). These reports provide an overview of the company’s financial position and are crucial for internal and external stakeholders.

1. Cost and performance accounting:

• Accountants also conduct cost and performance accounting analyses to evaluate the company’s cost structure. These analyses help with budgeting, pricing and identifying potential savings.

1. Accounts receivable and accounts payable management:

• Accountants manage the company’s outstanding receivables (debtors) and liabilities (creditors). They ensure that invoices are paid and receivables collected on time to ensure the company’s liquidity.

1. Preparing the annual financial statements:

• At the end of a financial year, accountants are responsible for preparing the annual financial statements and providing the necessary information for the tax return. They often work closely with tax advisors to ensure that all tax requirements are met.

1. Complying with regulations:

• Accountants must comply with the applicable legal requirements and accounting standards (e.g. HGB or IFRS). They are responsible for ensuring that all financial data is submitted correctly and on time to the relevant bodies (e.g. tax authorities).

1. Consultancy and support:

• In addition to their accounting duties, accountants can also act as consultants to management. They provide support for financial decisions, budget planning and the strategic direction of the company.

1. Monitoring financial performance:

• Accountants regularly analyse financial data to identify trends and deviations. These analyses help to monitor the company’s financial performance and make adjustments if necessary.

Skills and qualifications of an accountant:

• Specialist knowledge: Accountants need in-depth knowledge of accounting, tax regulations and financial analysis.
• Attention to detail: precision and attention to detail are essential to avoid accounting errors.
• Analytical skills: the ability to analyse and interpret financial data is important to make informed decisions.
• Communication skills: accountants must be able to communicate complex financial information in an understandable way, both in writing and orally.
• IT skills: Knowledge of accounting software and common office applications is required to make bookkeeping efficient.

Conclusion:

Accountants play a crucial role in every company, ensuring that financial transactions are accurately recorded and evaluated. They contribute to the financial health of the company and support management in making strategic decisions. Through their expertise and analytical skills, accountants help to minimise risks and identify opportunities for the company.