Understanding the Basic Accounting Responsibilities of a Company

During the early stages of your company, it is understandable that you keep your employees at a minimum while the demand is still low. As you slowly expand your operations, that’s when you onboard more employees to help with the increasing workload – including employing various accountants for your company’s different accounting needs.  

As you shift from doing your own basic company accounting and bookkeeping to employing finance and accounting professionals to help you improve your financial health, being aware of the basic accounting needs and responsibilities of your company to its employees, stakeholders and the overall market and industry is essential.  

With this, we’ve outlined some of the basic accounting responsibilities of a company and the right kind of accountant for each function. 
  

Different Kinds of Accountants 

In general, the goal of having accountants or outsourced accounting support is to put your business in a better financial position. Their main responsibility is to make sure that your accounting processes are following all applicable domestic or international principles, laws, regulations, or standards. On top of this, they also provide valuable insights into your cash flow and bottom line.  

If you’re currently in the process of building or restructuring your company’s financial management or thinking of hiring outsourced accounting services and support, getting familiar with the different types of accountants lets you know the service and help them contribute to your business. 

Common Accounting Responsibilities and the Right Accountant for the Job   

Coinciding with the need to know the common accounting responsibilities to keep your company compliant comes the need to employ the right professionals who have the knowledge to not only perform these accounting tasks but perform it well.  

Staff Accountants and Company Payroll and Employee Management  

Hiring a staff accountant is a good start if you need assistance with basic accounting or bookkeeping duties. Staff accountants are expected to take on a variety of work such as: 

• accounts payable and receivable management, 

• budget creation,  

• bank reconciliations,  

• cash management,  

• payroll management,  

• financial statement preparation, and 

• maintenance of your company’s general and subsidiary accounts. 

Because of the scope of service they can provide, they are often considered generalists in the field. However, as your accounting becomes more complicated, you must consider looking for accountants who specialize in certain areas, such as the ones listed in the succeeding sections. 

Tax Accountants and Company Corporate Taxes and Regulatory Compliances 

Corporate taxes are complicated. With untrained eyes, you can miss important details that may lead to penalties. Getting a tax accountant helps you prevent this. 

Tax accountants have a good command of international, local, and state tax laws and regulations. With their help, you’ll be more confident of staying in compliance with annual tax codes. 

Depending on your needs, you can hire either an entry-level or a senior-level accountant. 

Entry-level tax accountants are new to this area but already have the necessary knowledge about how taxation works. You can entrust them with basic tasks such as filling out business tax returns, managing tax liability statements, calculating your clients’ earnings, and the like. 

Meanwhile, senior-level tax accountants serve as consultants. They can help you create financial plans to legally lower your tax liabilities. Moreover, they’re also in charge of ensuring you’re on top of all applicable tax laws and regulations. 

Management Accountants and Company Financial Planning 

Management accountants specialize in assessing financial information and using it to help you develop a well-rounded business strategy. There are several ways management accountants can add value to your organization. 

Some of the common management accountant key responsibilities are: 

• risk management, 

• profitability analysis, 

• external financial reporting, and 

• budgeting/financial planning. 

When you’re making strategic moves, consider seeking their insights. 

Hiring an accountant or outsourced accounting services and support is a worthy long-term investment. Not only can they take over your accounting duties, but they can also give you guidance in lowering your business expenses while maximizing your profits.

Need help in Managing your Finances? 

If you feel that you need more assistance in getting your finances in order, this is where we come in! With our trained experts, we can help you take the next step in managing your finances and plan for the success and longevity of your company. Schedule a free consultation today! 

You can also grab a copy of our whitepaper Outsourcing: How to Make it Work to learn how we can make outsourcing engagement work for your growing business.   

This post was first published on 18 March 2021 and edited 25 October 2024. Edited by: Aly Tagamolila