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Corporate Accounting Roles

Career in Accountancy: 4 Corporate Accounting Roles

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Corporate accounting is where analytical skills meet strategic business insights. It involves maintaining financial records for the purpose of influencing business decisions and direction.

Corporate accounting is for you if you like numbers and love discovering the stories they tell and the insights they provide about enterprises. If corporate-sector accountancy as a career appeals to you, consider studying for the Association of Chartered Certified Accountants (ACCA) exams and earning the ACCA professional designation.

The ACCA program combines applied knowledge, applied skills, and strategy to produce well-rounded accounting and financial professionals. It will prepare you for a range of corporate accounting roles, including the following:

1.    Payroll Accountant

Payroll accounting is a specialized area within the finance department of a company, focused on managing employee compensation. This role is crucial as it directly impacts employee satisfaction and compliance with various legal requirements.

Payroll accountants are responsible for accurately calculating and distributing wages, including salaries, bonuses, overtime, and deductions for taxes, social security, and other benefits. They maintain precise payroll records to ensure every employee receives their due pay correctly and on time. As such, payroll accounting involves meticulous record-keeping and requires excellent attention to detail.

Payroll accounting also involves managing payroll taxes. Additionally, payroll accountants reconcile payroll data, prepare reports for management, and sometimes assist with audits. They also often handle queries from employees regarding their salaries and deductions.

2.    General Ledger Accountant

General ledger accounting is a fundamental aspect of financial management in any business. It involves maintaining the general ledger, the primary accounting record of a company, containing a complete record of all its financial transactions.

General ledger data goes into balance sheets, income statements, and other reports that business analysts and executives use to gauge financial health. They also form the basis for assessing a company’s tax liabilities.

General ledgers typically have five sections:

  • Assets: Assets pertain to anything of value that the business owns, including machinery, real estate, cash, and inventory. Thus, if a business has $200,000 in the bank, machinery worth $60,000, real estate valued at $500,000, and inventory amounting to $150,000, the company’s total assets are $910,000.
  • Liabilities: Liabilities represent a company’s debts and obligations. If a business owes its suppliers $55,000, has a credit card debt of $16,000 and a loan of $180,000, it has a total liability of $251,000.
  • Equity: Company equity is the difference between its assets and liabilities. An asset of $910,000 and a liability of $251,000 means an equity of $659,000.
  • Revenue: Revenue refers to income. It’s the money a company earns or generates through sales, service fees, royalties, interest payments, and dividends.
  • Expenses: Expenses refer to the costs the company incurs in producing and distributing its products or in providing and delivering its services. They also include fixed costs, such as rent, utilities, and salaries.

General ledger accountants are responsible for recording and categorizing all financial transactions into the relevant section of the general ledger according to established accounting standards. Their specific tasks include posting debits and credits, producing financial statements, and reconciling ledger accounts to prevent and identify discrepancies. They play a crucial role in closing the books at the end of each accounting period and preparing the balance sheet, income statement, and other financial reports.

In essence, general ledger accountants ensure that a company’s financial data is accurate, up-to-date, and in line with legal and regulatory requirements. This role is vital for maintaining the financial integrity of a business.

3.    Business Analyst

Business analysis involves evaluating an organization to identify the areas that need to and can be improved and proposing the adjustments and changes that can bring about these improvements.

This task requires strategic thinking aligned with what you’ll learn in the advanced financial management and advanced performance management topics of the ACCA program.

For example, a business analyst working for a supermarket chain can look at sales, customer behavior, and general industry data to identify top food trends. After that, they can propose changes, projects or programs that will enable their company to capitalize on these trends.

Business analysts may perform the following key activities:

  • Data analysis: Delve into business and accounting data, using business analysis tools and methods to identify trends, anomalies, and opportunities. Dissect financial reports, sales data, expense reports, and other relevant financial information to glean business insights.
  • Budgeting and forecasting: Assess past performance and estimate future scenarios to aid in effective budget allocation and planning.
  • Performance reporting: Generate performance reports that provide a snapshot of an organization’s financial health.
  • Strategic planning: Make project and program recommendations based on insights gained from their evaluation of a company’s financial data and operations.
  • Stakeholder communication: Report to company executives. Communicate findings and recommendations to other stakeholders.
  • Process improvement: Identify and recommend improvements in financial processes and systems.

4.    Financial Analyst

Financial analysis typically pertains to investment and investment decisions. A financial analyst looks at macroeconomic and microeconomic conditions to predict what will happen in industries and sectors, particularly those relevant to their organization.

Whereas business analysts focus on analyzing operations to make process improvement recommendations, financial analysts specialize in financial planning and analysis. They employ data analysis, forecasting methodologies, and strategic thinking to guide organizations in making sound financial and investment decisions.

Financial analysts may perform the following key activities:

  • Data analysis: Rigorously analyze financial data, including revenue, expenses, and cash flow to identify trends, evaluate financial performance, and provide insights on the financial health of the company.
  • Financial forecasting: Forecast future economic outcomes. Use historical data, market trends, industry analysis, and financial modeling to predict market trends, future revenues, costs, and profitability.
  • Investment analysis: Evaluate investment opportunities, assessing risks and potential returns. This can involve the analysis of new projects, capital expenditures, or potential acquisitions.
  • Reporting: Prepare reports on a company’s investments and investment opportunities and present findings to management and stakeholders.

A Career in Corporate Accounting

Accounting professionals have excellent career prospects. In the corporate sector, an accountant can fulfill many different roles, including that of payroll accountant, general ledger accountant, business analyst, and financial analyst.

There are more corporate accounting roles available. They include that of financial accountant, management accountant, group accountant, company treasurer, compliance officer, and even chief financial officer.

If you want a fulfilling career at the intersection of financial data and strategy, become an accountant. Get started by earning the ACCA qualification.

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TEM

The Educational landscape is changing dynamically. The new generation of students thus faces the daunting task to choose an institution that would guide them towards a lucrative career.

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