Question

5. What are the general duties or responsibilities of a person who is an accountant for a business? (be sure to mention different types of accountants in your answer)

6. In your own words, what is the difference between a person who is an accountant, versus someone who is a financial manager for a business? Would it be appropriate for the same person to do both roles in a business? Explain.

Answer 1

Accountancy incorporates a wide variety of dutiesand responsibilities. While accountants may share key attributes such as robust financial skills, attention to detail and a clear understanding of business ethics, the profession includes several different specialisms. These range from preparing tax returns and carrying out independent audits to investigating fraud and guiding companies through periods of difficulty.

Whatever an accountant’s area of expertise, robust knowledge and respected qualifications are a must. Achieving a respected qualification such as ACA, ACCA or CIMA takes time and dedication, but this is just the beginning: throughout an accountant’s career, there is a strong emphasis on the enrichment of skills and knowledge through annual continuing professional development (CPD).

n Accountant is one who is skilled in keeping accounts and books of accounts correctly and properly. An accountant makes the keeping or examination of accounts his profession[i]. Accountant, design and control the systems of accounts required for records of various transactions of business, trade, and finance.

Different types of accountants include:

• Auditors
• Forensic accountants
• Public accountants
• Tax professional
• Financial advisor
• Consultants

Both accountants and financial managers have a similar education in business or accounting and have a role in the company's finances. These occupations differ, however, in that financial managers already possess accounting and finance experience and have more of an impact on long-term decision making and leadership, while accountants can find work new to the field and focus more on day-to-day transactions and reporting. Both occupations have a favorable job outlook with positions available in many industries; however, financial managers tend to have the most generous earnings regardless of how much experience they have.

Shared duties for accountants and financial managers include creating financial reports, offering advice to improve the company's finances and performing financial analysis. One major difference is a financial manager's role is more strategic and focuses on helping the company make decisions that cut costs and improve the company's value while providing leadership over other financial employees. In contrast, an accountant's work focuses on computing and recording day-to-day financial calculations, ensuring compliance with accounting regulations, preparing taxes and checking financial records for errors. Both occupations require someone who can think analytically and mathematically, stay organized, communicate clearly and have an attention to detail.

Whether you work as an accountant or a financial manager, you will generally work in an office setting. However, there are many differences in working conditions of accountants and financial managers. Accountants generally work a 40-hour week, though tax accountants may work longer hours during tax season. Financial managers commonly work 50 or more hours in a week. Many accountants are self-employed, often working for individuals and companies on a contract basis. However, financial mangers work almost exclusively as an employee of a company, government agency or other organization. Both accountants and financial managers may travel frequently to other offices or to meet with clients.

In this Accounting vs Financial Management article, we have seen both Accounting vs Financial management play a crucial role in any organization. Accounting is a necessary input for the financial management function of any businesses. Good financial management is important for the effective utilization of economic resources of the organization. Accounting restricts up to reporting and summarizing of financial transactions for the external and internal users whereas financial management is about planning, directing, monitoring, organizing and controlling of the monetary resources of an organization to achieve the objective. Every person or business gets involved in some kind of economic activity. All business carries some kind of economic/financial activities. Accounting and Financial management are related to the extent that accounting is an important input in financial decision making. Still, they differ in the treatment of funds and with regards to decision making. Accounting involves preparing and examining past financial records whereas, financial management involves planning to achieve its various financial objectives.