What Is an Accountant?

An accountant is a financial professional who reviews and analyses financial records and keeps track of a company's or individual's income, expenditures, and liabilities. An accountant may also work in project planning, cost analysis, auditing, and financial decision-making. Some specialize in tax preparation and tax planning. Accountants may work for large companies or external accounting firms. They must meet state-specific educational and testing requirements and are certified by national professional associations.

History of Accountants

The first professional association for accountants, the American Association of Public Accountants, was formed in 1887, and CPAs were first licensed in 1896. Accounting grew as a profession during the Industrial Revolution. This was largely due to the growing complexity of businesses and the demands of shareholders and bondholders for evidence of the financiꦿal well-being of the companies in which they invested.

After the 澳洲幸运5官方开奖结果体彩网:Great Depression and the formation of the 澳洲幸运5官♒方开奖结果体彩网:Securities and Exchange Commission (SEC), all publicly traded co꧃mpanies were required to issue reports written by acc☂redited accountants. This change further increased the need for corporate accountants. Today, accountants remain a ubiquitous and crucial part of any business. 

Duties and Skills of Accountants

Accountants work with companies, governments, and non-profits, or set up private practices. They may perform account analysis, review 澳洲幸运5官方开奖结果体彩网:financial statements and other reports to ensure they are accurate, conduct routine and annual audits, review financial operations, prepare 澳洲幸运5官方开奖结果体彩网:tax returns, advise on areas that require efficiencies and cost-savings, and provide 澳洲幸运5官方开奖结果体彩网:risk analysis and forecasting.

An accountant's duties often depend on the type of educational background and designation they receive. Most professionals in the field possess bachelor's degrees and, if employed by a corporation, may require certification to move up within the firm.

Certification requirements vary, with some roles requiring additional educational requirements above the bachelor's degree and successful completion of rigorous examinations. Accountants can have more than one designation. The most common are the 澳洲幸运5官方开奖结果体彩网:certified internal auditor (CIA), 澳洲幸运5官方开奖结果体彩🐼网:certified manag⛄ement accountant (CMA), and 澳洲幸运5官方开奖结果体彩网🌳:certified public acc🌞ountant (CPA). 

Many accountants choose to become CPAs because the designation is considered the gold standard in the accounting profession. In the United States, certification requirements for accountants vary from state to state. But one requirement is universal—the passing of the Uniform Certified Public Accountant Examination. This exam is written and graded by the Ame💫💦rican Institute of Certified Public Accountants (AICPA).

Ethical Standards and Guidinꦑg Principles for Accountants

Accountants must abide by the ethical standards and guiding principles of the region where they practice, such as the Inter🍷national Financial Reporting Standards (IFRS) or 澳洲幸运5官方开ꦅ奖结果♐体彩网:Generally Accepted Accounting Principles (GAAP).

The IFRS is a set of rules issued by the International Accounting Standards Board. These rules promote consistency and 澳洲幸运5官方开奖结果体彩网:transparency in financial statements. GAAP is a set of standards that accountants must adhere to when they complete financial statements for 澳洲幸运5官方开奖结果体彩网:publicly traded companies in the U.S.

Certified public accountants have a 澳洲幸运5官方开奖结果体彩网:fiduciary duty to their clients. They are legally and ethically responsible to be honest and trustworthy and must avoid negligence in their duties. CPAs have real influence over their clients, which means their judgment and work can affect not just an individual but an entire company—incꩲluding its employees, its board, and its invest🤪ors.

澳洲幸运5官方开奖结果体彩网:Accountants can be held liable under the common law doctrine if they:

• Are negligent in their duties
• Mispresent themselves or their clients
• Commit fraud
• Are guilty of 澳洲幸运5官方开奖结果体彩网:breach of contract, which occurs when a professional doesn't fulfill their obligations as per the agreement

They can also be held liable under 澳洲幸运5官方开奖结果体彩网:statutory law by state or federal securities regulatory bodies. This happens when an accountant fails to ﷽provide their clients with appropriate services or givཧes them bad advice.

The Bottom Line

Accountants are always in demand because every company of any size needs one or more of them. They are the ones tracking, analyzing, and auditing the company's income and expenditures. They also have a key role in planning, decision-making, and forecasting, based on their ability to accurately estimate the cost of future projects.