Financial Accounting Definition – Financial accounting helps to classify, analyze,summarize, and record financial transactions of the company.
The main objective of financial accounting is to showcase an accurate and fair picture of financial affairs of the company. To understand the fundamentals of financial accounting well, first, we should start with double entry system and debit & credit, and then gradually should understand journal and ledger, trial balance, and four financial statements.
FINANCIAL ACCOUNTING CAREERS
Financial accountants work in a wide range of industries, from corporate to nonprofit, and their responsibilities vary based on the type and size of the organization. Primary duties include preparing financial statements and reports, advising company leaders on investment practices and strategies,
communicating a company’s financial status with external audiences, and staying current on the latest economic trends affecting financial decisions.
SPECIALIZATIONS
Financial Analyst
Advise senior managers and clients on investment decisions.
Maintain awareness of economic, social and political factors affecting financial decisions in the company or client’s industry.
Provide detailed data analysis and reports that track financial trends and forecast future needs.
Controller
Oversee all accounting functions, such as accounts payable and accounts receivable
Maintain and monitor financial data related to investments
Establish internal accounting policies and procedures
Create financial reports and statements
Ensure compliance with tax requirements
Manage a team that may include accountants and assistants
Financial Accountant
Maintain financial records
Assist with tax filings in accordance with related laws and regulations
Prepare monthly, quarterly and annual financial statements
Collect, analyze and report financial statements.
Assist with budgeting and auditing tasks
Financial Manager
Advise senior company leaders and clients on financial goals and decisions
Create financial reports, statements and projections
Ensure compliance with financial laws and regulations
Manage projects and functions of a team of accountants and assistants
Communicate complex financial analyses to company leaders and external audiences
AN OVERVIEW OF FINANCIAL ACCOUNTING
Financial accounting professionals are responsible for the public reporting of a company or organization’s financial status. This work involves collecting and maintaining data, detecting trends and forecasting future needs. In addition, financial accountants prepare detailed statements and communicate financial information to company leaders and audiences that do not have an extensive accounting background.
Auditing and managerial accounting are related to financial accounting, but differ in several ways. Auditors usually work with companies to review the reports created by financial accounting offices.Management accountants are primarily focused on providing the accounting services and communication within a company, such as accounts payable, accounts receivable and payroll.
Anyone interested in a financial accounting career will want to gain a solid understanding of several industry standards. The Generally Accepted Accounting Principles (GAAP) are a widely-accepted set of guidelines that assist with reporting procedures. The International Financial Reporting
Standards (IFRS) help accountants create consistent and comparable financial statements for businesses across the globe. Skills with multiple types of financial reports are also required, including the ability to create accurate balance sheets, profit and loss statements and cash flow forecasts.