When you hear that various friends or family all work as an accountant, it’s easy to think they must all therefore do the same job. But in fact, accountancy is such an umbrella term for various types of jobs working with finances, so we take a look at how these different roles break down.

To start off with, not all accountants work for an accountancy firm. There are different types of organisations who all use accountants including corporations, independent businesses, governments as well as accountancy firms. Although they all use accountants differently, they do all help out with certain financial aspects such as cost analysis, budgeting and generally assessing the company’s finances.

Within these different companies there are five key areas of accountancy. Auditing is perhaps the most common and heard of out of them all. Inspecting the business’ financial records, an auditor is often seen as the bread-and-butter of the finance industry as their job is to check the records and to see where and how the business is making the most money. Then there are accounts who deal with cost management and budgeting analysis. For these types of accountants, there role is to deal with short or long-term business decisions and to check along the way how profitable they are.

Financial accountancy may sound like a fairly loose term, but their role is very important in business as they are involved in making some of the biggest financial decisions including mergers, acquisitions and long-term financial projections. Tax accountancy is another area businesses rely on when it comes to managing their finances, as they deal with managing expenses, filing tax returns and deferring taxes, all of which ensure that the business is not over or under-paying tax.

Finally there are management accountants who tap into all the types of accountancy mentioned, primarily budget analysis and financial accountancy. As important contributors to major business decisions, they not only have to deal with budgeting, contracts, managing expenses and projection forecasts but they also have to work alongside marketing and other finance departments to develop new business.

For accountants in Southport, look no further.

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