What Does an Accountant Do? Roles and Responsibilities Explained

From global corporations to local startups, every business depends on accounting professionals to track financial health, ensure compliance, and guide strategic decisions. But what exactly does an accountant do every day? This guide explores the core responsibilities, types of accountants, required qualifications, and evolving career opportunities in the accounting field.

What is an Accountant?

An accountant is a financial expert who understands the financial side of businesses or individuals. Their main job is to keep accurate records of financial data and transactions. Accountants may also analyze this data to provide business insights, ensure compliance with rules and regulations, prepare financial statements, and provide advice for operational or investment decisions.

Key Responsibilities of an Accountant:

• Recording all revenue transactions and sales data
• Tracking business expenses and tax liabilities
• Preparing financial statements, tax documents, and reports
• Analyzing financial data, cashflow and budgets
• Providing reports and insight for decision-making
• Auditing or ensuring the accuracy of financial records
• Filing tax returns and other regulatory documents

Different Types of Accountants & Where They Work

There are many types of accountants based on their area of expertise. Typically, accountants study for a bachelor’s degree and then pursue other qualifications like a CPA (Certified Public Accountant) or a CMA (Certified Management Accountant).

The different types of accountants include:

• Public Accountants – Provide accounting, auditing, tax, and consulting services for corporations, governments, and individuals.
• Management Accountants – Work for private companies and focus on budgeting, performance management and strategizing.
• Government Accountants – Maintain documents and records for government agencies and audit programs.
• Internal Auditors – Assess a business’s internal controls, operations, fraud, and risk areas.
• Tax Accountants – Help companies and individuals prepare tax returns and ensure legal compliance with all regulations.

What Does a Small Business Accountant Do?

For small businesses, accountants are key to maintaining financial records. A small business accountant can:

• Set up business accounting systems or processes appropriate for the company
• Prepare financial statements like P&L statements, balance sheets, and cash flow
• Reconcile bank or credit card accounts
• Track income, expenses, assets and liabilities
• Prepare budgets and forecasts to guide business strategy
• Provide monthly, quarterly, or annual financial reports
• Manage payroll, including taxes, reporting, and compliance
• File quarterly and annual taxes
• Analyze financial performance to advise owners

Roles & Responsibilities of a Corporate Accountant

In mid-size to large corporations, accountants take on specialized roles across departments like accounts receivable/payable, expense accounting, general ledger, payroll, tax accounting, auditing, etc. Common responsibilities include:

• Daily posting of transactions and maintaining general ledger
• Month-end, quarter-end, and year-end accounting close
• Prepare journal entries and reconciliations for accounts.
• Ensure compliance with accounting principles and standards.
• Support the creation of budgets and forecasts.
• Prepare consolidated financial statements.

In-Demand Accounting Certifications

Beyond a bachelor’s degree, certifications allow accountants to specialize and demonstrate their expertise. Popular options include:

• CPA – Certified Public Accountant for public accounting roles involving audits, taxes, consulting, and financial reporting
• CMA – Certified Management Accountant for corporate or business accounting roles involving budgeting, financial analysis, decision support, and risk management
• CIA – Certified Internal Auditor for assurance and advisory roles focused on evaluating risk, controls, and governance
• CFE – Certified Fraud Examiner for investigating instances of fraud and white-collar crimes
• CFA – Chartered Financial Analyst for roles in corporate finance and investment banking

Skills Needed to Succeed in Accounting

• Proficiency in accounting software (e.g., QuickBooks, SAP)
• Advanced Excel and data analysis
• Knowledge of GAAP/IFRS standards
• Attention to detail and accuracy
• Time management and organizational skills
• Communication and problem-solving abilities

Accountant Salary Trends

According to the U.S. Bureau of Labor Statistics, the average annual salary for accountants is $73,560. Senior roles like Controllers, Audit Managers, and CFOs can earn well over $100,000. Factors such as experience, industry, location, and certifications heavily influence compensation.

Future Outlook: Is Accounting Still in Demand?

Yes. The demand for accountants is strong and expected to grow faster than the average for all occupations. While automation is transforming some repetitive tasks, strategic roles—like financial planning, analysis, and advisory—are increasingly valuable.

Conclusion

In today’s complex and fast-paced business landscape, the financial fluency and strategic mindset of accounting professionals will only grow more valuable. An accountant’s ability to track, report, and analyze financial data drives critical decision-making for organizations across industries.

FAQs on Accountant Roles and Responsibilities

Q: What qualifications does an accountant need?

Ans – Most accountants have at least a bachelor’s degree and often professional certifications like CPA, CMA, or CFA, depending on their specialization and career advancement aims.

Q: What skills does an account payable accountant need?

Ans – Key skills include double-entry accounting financial reporting standards, data analysis, attention to detail, Excel modeling, time management, and communication/collaboration as they interface with vendors and internal teams.

Q: What does a cost accountant do?

Ans – A cost accountant analyzes overhead and production costs, helps create budgets, calculates cost-benefit analysis for decisions, allocates costs to appropriate departments, analyzes spending variance, and looks for ways to reduce manufacturing, operational, or materials costs to save money.

Q: How much do accountants earn on average?

Ans – The average annual salary for an accountant in the US is $73,560, with the potential to earn six figures based on seniority, specialization, certifications, and specific roles like becoming an Audit Manager, Controller, or CFO.

Q: Is business accounting a dying field?

Ans – Business accounting is very much an in-demand field projected to grow faster than the national average for all occupations over the next decade. While AI and automation are changing some lower-level responsibilities, accountants’ financial analysis, advisory, and strategic skills will only increase in value for organizations.