Put simply, an accountant is someone who works with financial records, collecting and interpreting data, and making decisions based on their findings.
If you’re considering hiring an accountant, whether your business is trying to expand on a budget, or it’s nearing time for your self-assessment tax return, it’s important to have a full picture of what an accountant actually does, and how they can help you manage your finances.
So, if you’re wondering what an accountant can do for you, or what an accountant does for a business more generally, read on to find out.
Roles and responsibilities
A good accountant should integrate seamlessly into the day-to-day workings of your business. They will help manage payroll and any corporate finance, as well as provide expert advice on financial decisions, big or small.
Accountants aren’t just there for day-to-day help either. Year-end accounts can seem like an insurmountable task, but accountants work with your records to ensure that these accounts don’t become overwhelming. Our expert team manages your financial documents to make balance sheets, profit and loss accounts, and corporation tax returns a breeze.
Below are a couple of the key areas where your accountant will play a role.
Bookkeeping
One of the main responsibilities of accountants is bookkeeping. This entails keeping a business’s financial accounts up to date, by recording transactions and managing receipts.
Hiring an accountant to manage your bookkeeping can be very beneficial for your business. By tracking transactions, they can easily determine if you are accumulating any wastage and they can advise on an appropriate budget for your finances. Further, an accountant can use your books to identify any opportunities for your business to save money on taxes.
Tax
On the topic of tax, perhaps one of the most important roles an accountant can be responsible for is ensuring you are tax-compliant, whether you’re part of a small business or you are self-employed. Taxation can be stressful, particularly if you are new to the business world, and employing an accountant to be in charge of this is the easiest way to save time and reduce stress. At Archimedia Accounts, we are dedicated to keeping your accounts accurate, so that your taxes can be filed correctly and on time.
A day in the life of an Archimedia Accounts accountant
What skills and qualifications does an accountant need?
Skills
A common misconception is that accountants are simply ‘maths whizzes,’ but they must also excel in other areas in order to be successful in their role. Below we delve into some of the most important skills that accountants need to be proficient in, in order to give you a better understanding of the work they do behind-the-scenes.
Communication
Communication is the keystone of any workplace, and it’s just as important for accountants to demonstrate strong communication skills as any other team member.
Accountants need to be able to ask the right questions and listen closely to the answers so that they may build a complete picture of their clients’ financial needs. Similarly, they need to be highly skilled at expressing themselves, so that they may communicate tricky accounting concepts in a way that their clients feel caught up and on the same page.
Detail orientation
Accountants may be working with big budgets, but they need to have an eye for miniscule detail too.
In accounting, one small error can have a huge ripple effect, which means that accountants can’t afford to make mistakes. They should be naturally detail-oriented, able to focus on small details while keeping the bigger picture in check.
Technological literacy
Accountants use many different computer programmes as part of their day-to-day work, so they must be comfortable using these and learning how to use new technologies.
This is particularly important as the presence of AI in accountancy grows. The 2024 Generative AI in Professional Services Report (Thomson Reuters Institute) reported that 8% of accounting firms are already making use of generative AI, and 13% of firms are planning to integrate the technology, with a further 30% of firms in the consideration phase. These figures indicate the importance of technological literacy for accountants, especially as the industry ramps up its AI use.
Qualifications
To work as an accountant in the UK, one must have a level two qualification accredited by the Association of Accounting Technicians (AAT).
This specialist certificate has no particular entry requirements, so while many future accountants study courses such as maths or finance at university, this is not a prerequisite to complete the course.
Alongside the AAT course, there are five other popular qualifications which train accountants in different specialities:
- The Association of Chartered Certified Accountants (ACCA)
- The Association of International Accountants (AIA)
- The Institute of Chartered Accountants in England and Wales (ICAEW)
- The Chartered Institute of Management Accountants (CIMA)
- The Chartered Institute of Public Finance and Accountancy (CIPFA)
Conclusion
As this article has shown, accountants leverage a wide range of skills (including many outside of mathematics), including clear communication and keen listening skills, to deliver effective accounting advice and services to their clients.
At the minimum, an accountant must be accredited by the AAT, and many accountants will also hold qualifications from other additional respected accounting bodies and organisations.
If you are looking for a qualified accountant to help you with any of the areas discussed in this article, or any other area of accounting for that matter, please get in touch.
