Most people think of an accountant mainly when they want to do their taxes, but accountants do way more than just prepare and file taxes for businesses. An accountant also maintains the company’s financial records and prepares multiple reports that accurately depict the company’s financial status. An accountant will also help businesses comply with the various federal and state laws regarding taxes. Beyond this, accountants assist firms with the budgeting and forecasting process. Thus, it enables accountants to help businesses build and implement plans to meet the company’s financial goals.

What Is the Role of an Accountant?

An accountant’s primary responsibility is to manage the financial affairs of their employer and ensure the business receives accurate reporting on the financial data. They also provide businesses with valuable advice to support effective decision-making. Accountants record and classify financial transactions, as well as analyse the financial results produced by the business, to provide accurate information to create reports on the actual financial position and to provide insight into how best to plan for the future. A typical day for an accountant may involve:

  • Reviewing bank statements, invoices, and expense records to ensure timely and accurate invoices.
  • Preparing financial statements, including profit and loss statements, balance sheets, and cash flow forecasts.
  • Managing payroll, including calculating wages, deductions, PAYE and National Insurance compliance.
  • Managing tax obligations, such as preparing and filing VAT returns, corporate tax returns, and providing assessment guidance to exploit all available tax deductions.
  • Identifying and analysing trends, risks and growth opportunities through the evaluation of financial performance.

What Does an Accountant Do? Key Functions Explained

To fully understand what an accountant does, it’s important to look at their day-to-day responsibilities. Much of their work revolves around maintaining financial stability while supporting business growth. Their work typically includes a mix of financial management, reporting, and advisory services.

1. Financial Record Keeping & Bookkeeping

Accountants maintain financial records by recording transactions in accounting software and organising supporting documents. Accurate bookkeeping enables businesses to generate reliable financial reports and ensures compliance with regulations.

2. Preparing Financial Statements

Accountants prepare important reports for businesses, such as profit and loss statements, balance sheets, and cash flow statements, allowing others to see how well the company is financially and to determine how to grow their company appropriately.

3. Tax Planning & Compliance

Accountants assist businesses in reducing taxes through planning to comply with the rules and regulations concerning taxes while also fulfilling their respective goals. 

4. Budgeting & Forecasting

Accountants help determine what to include in a company’s budget and assist companies with forecasting revenues and costs. Forecasting expenses helps a company have a better understanding of its financial future. 

5. Financial Analysis & Advisory

Accountants provide analysis of the financial statements to give insight into a company’s financial health, regardless of whether the company is a single business or several companies within an industry, thereby providing an opportunity for increased growth and profits for the company.

6. Audit & Compliance Support

Accountants review the financial records of other employees as well as their own to ensure the records are accurate and complete and are compliant with applicable laws and regulations. They also often cooperate with the auditors from the IRS and other government agencies during audits.

7. Payroll & Cash Flow Management

Accountants manage companies’ payrolls, monitor cash flow, and determine when each business should pay its accounts payable.

Responsibilities of an Accountant

Depending upon the company, the duties of an accountant will differ. However, typically duties will consist of:

  • To preserve accurate records for all transactions.
  • To provide financial statements that comply with either UK GAAP or IFRS.
  • To file tax returns on time and advise on deductible expenses.
  • To determine how much an employee should be paid and what deductions to make from their paycheck, plus to create withholdings and W-2s for each employee at year-end.
  • To identify any possible risks affecting the company, including fraud or cash flow problems.
  • To use financial statements to identify savings, investment opportunities, or to improve efficiency in business operations.
  • To help external auditors and conduct an internal audit to assist with transparency in financial reporting.

Accountants are playing an increasing role in strategic planning rather than just doing routine accounting work.

Why Accountants Are Important for Businesses

The significance of accountants for companies is directly related to the amount of clarity and control that they provide in relation to the financial resources of a given business. Without good financial management, companies will experience many problems, such as poor cash flow, potential compliance violations, and bad business decisions. Accountants’ combination of technical skills and strategic guidance allows companies to achieve stability, efficiency, and growth potential. 

Why Choose Accountants from Reflex Accounting?

Selecting an accountant should go beyond compliance requirements. You want to establish a reliable resource for financial advice that will allow you to grow throughout your various phases of development. The focus of Reflex Accounting is on building pragmatic, results-based solutions that correspond to the real-world experiences of local businesses.

Through a combination of technical skills and knowledge, Reflex provides accurate and timely information, valuable insights, and ongoing assistance in order for businesses to comply with all of their legal obligations, make educated decisions, manage their growth successfully and ultimately, stay profitable over the long term.

Our Core Expertise

  • Keeping and Documenting Business Expenses So You Can Manage Your Finances
  • Strategies to Reduce Your Tax Burden While Remaining Compliant
  • Provide you with easy-to-understand, helpful reports to assist you in making informed decisions.
  • Coaching to Help You Grow and Expand Your Business. Assist in developing and growing your business strategically.
  • We provide you with a seamless payroll solution, streamlined VAT return process, and assistance with compliance.

Faqs:

What do accountants do?

An accountant performs the functions of managing the financial affairs of a company, generates reports based on that activity, ensures compliance with laws, and provides members with sound business advice.

Do accountants file tax returns?

Yes, your accountant will file your income tax return for you accurately and on schedule.

Can an accountant help reduce my tax bill?

Yes, your accountant provides services to ensure that you are taking advantage of all available resources to minimise your tax liability and develop a tax strategy that benefits you.

Do I need an accountant for a small business in the UK?

It is not a legal requirement, but hiring an accountant will greatly assist you with meeting regulatory requirements and further developing your small business.

Are accountants regulated in the UK?

Yes, most UK accountants belong to at least one of the professional accounting bodies, such as the Association of Chartered Certified Accountants and the Institute of Chartered Accountants in England and Wales.