Areas of Accounting

Question 1

\What are the 7 different areas of accounting?

Answer 1

Chartered accountant, financial accountant, Management accountant, auditors, tax accountants, cost accountants, accounting technician/accounts clerk

Question 2

Common responsibilities of a chartered accountant

Answer 2

• Provides financial and strategic planning advice
• helps with financial decision making,
• prepares tax and GST returns
• gives budgeting and financial advice on business structure
• analyses and interprets financial statements

Question 3

Common responsibilities of a financial accountant

Answer 3

• Raises finance for a business
• Manages cash flow
• Prepares financial statements for the business
• Reporting and analysing the finances of a business

Question 4

Common responsibilities of a management accountant

Answer 4

• looks after the day to day operations of the business such as preparing budgets and reporting to the management of the firm
• preparing reports (for use within the firm)
• preparing budgets
• Analysing the results of budgets

Question 5

Role of an auditor and responsibilities

Answer 5

They work for a separate company, other than the one being audited and they check that the accounting records of a business show a true and fair view (are accurate)
- Checks accounting methods and records

Question 6

Role of a tax accountant and responsibilities

Answer 6

Specialises in taxation. They help other people and firms with tax returns

• prepares tax returns
• Advises companies on relevant laws
• advises on most advantageous ways of reporting for business to minimise tax payments

Question 7

Role of a cost accountant and responsibilities

Answer 7

looks at the cost of production and how these can be reduced

• prepares cost analysis
• looks at ways to reduce the cost of various methods

Question 8

Responsibilities of an accounting technician/accounts clerk

Answer 8

• Supports the accountant by entering data in the computer or updating basic accounting records (journals/ledgers)
• establish, manage and monitor financial reporting systems
• give advice to clients and/or management on financial reporting systems and processes
• Maintain records of transactions made by the organisation or company they work for
• Prepare accounts statements