Although most people know that accounting involves number crunching, fewer understand the full depth of an accountant’s responsibilities. In reality, working with financial data only makes up part of an accountant’s workload. They must also leverage assets, manage budgets, achieve financial efficiencies, and maximize investments. Here, John Savignano, CEO of Savignano accountants & advisors, explains the job description of an accountant, their responsibilities and skills, and their career outlooks.
Accountant Definition
An accountant keeps and interprets financial records and completes an array of finance-related tasks. They may complete these tasks for individual clients, businesses, and other organizations of all sizes.
“There's a lot of competition with the small, medium-size markets because small practitioners can only go after the small- to medium-size clients,” John Savignano says. “Part of my practice is we have global organizations, multinational organizations. I have a client base that others don't have.”
Types of Accountant
Some people confuse accountants with bookkeepers and use these terms interchangeably. However, accounting and bookkeeping are different professions. While bookkeepers typically earn at least an associate degree and record financial transactions, accountants typically earn at least a bachelor’s degree in accounting and not only gather financial information but interpret it too.
There are three main types of accountants: public accountants, management accountants, and government accountants. Each of these focuses on different elements of the accounting profession. Some accountants are also certified public accountants (CPAs) — accountants who have passed the CPA exam and meet state licensing requirements.
As different accountants specialize in different areas, prospective clients should carefully select an accountant that is well-positioned to serve them.
“If the clients have an issue that I can't handle, I have enough business partners in my network that we can work together and help the client solve the problem,” John Savignano says. “It's not only about making money. If I can't make money on that particular project and if I bring in someone who helps them, I know my client will always consider us to solve their problems. Whether it's me directly or through somebody else indirectly, we're here to help.”
Accountant Responsibilities
Every accountant has different responsibilities that depend on their position and the company they work for. However, some of the most common accountant responsibilities include:
- Ensuring that financial documents are accurate and comply with relevant legislation.
- Evaluating financial operations to identify issues, recommend best practices, conceptualize solutions, and ensure organizations run efficiently.
- Preparing tax returns and checking that taxes are paid correctly and on time.
- Preparing and maintaining financial reports.
- Completing forecasting risk analysis assessments.
- Guiding clients on revenue enhancement, cost reduction, and profit maximization.
What Does an Accountant Do on a Daily Basis?
Lots of people think accountants have to be good at math. However, although math skills are useful when it comes to analyzing, comparing, and interpreting data, these skills aren’t essential to the accountant’s role. Instead, accountants typically possess the following technical and soft skills.
- Business acumen — accountants need to understand the basic functions of a business to analyze and interpret financial data effectively.
- Computer literacy — accountants need to be proficient in advanced accounting software and technologies to work efficiently. “I like the technology because it frees me up to spend more time with clients,” John Savignano says. “And I encourage my staff to use the technology as much as possible.”
- Data and analysis — collating and interpreting financial data are integral to an accountant’s role and are key to identifying patterns and unveiling potential issues. Applying data analytics in the accounting field is a new trend in the industry that will likely have a bigger impact in future.
- Attention to detail — accountants are responsible for maintaining accurate, organized financial information. Therefore, they must pay attention to detail when analyzing data to ensure they don’t make mistakes, which can translate into large problems later.
- Communication — accountants must work closely with clients, managers, and stakeholders. Therefore, they must listen carefully to gather facts and figures accurately and then clearly articulate the results of their work in written reports.
Demand for Accountants
Accounting is an in-demand career, and accountants tend to enjoy high salaries and job growth. Data from the Bureau of Labor Statistics (BLS) suggests that the employment of accountants and auditors will rise by 7% between 2020 and 2030. And the 2019 Accounting and Finance Salary Guide reveals that accountants with 1-3 years of experience can earn an annual salary of $51,500-$96,500. Meanwhile, those with at least five years of experience can earn up to $129,250 per year.
Location can dictate an accountant’s earning potential because of factors like the cost of living and scarcity of talent in a particular region. For example, data from Robert Half shows that those who work in professions across Boston, New York City, and San Francisco earn an average of 34%, 40.5%, and 41% more than the national average, respectively.
Pursuing a Career in Accountancy
If you’re looking to pursue a career in accountancy, you will likely need at least a bachelor’s degree in accounting or a related field, like finance and accounting management. Additional certifications will improve your chances of securing an accounting role. You might consider completing the Association of International Certified Professional Accounts’ licensing process or researching specific accounting careers and securing certifications for these.
About John Savignano
As the CEO of Savignano accountants & advisors, John Savignano CPA is a certified public accountant under the American Institute of Certified Public Accountants and New York State Society of Public Accountants. He is also a chartered global management accountant under the joint venture owned by the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants. Before pursuing a 35-year career in accountancy and financial services, he completed an MS degree in Taxation at Pace University and a BS degree in Accounting at St. John’s University.
