Want to be able to offer indispensable bookkeeping and accounting skills, or become an accountant someday? This is the course for you! It will equip you with knowledge and practical skills in bookkeeping, financial accounting, income tax, financial management, reporting standards, corporate strategy, management accounting and research.
Skills Academy offers the following ICB accredited financial accounting courses:
Financial Accounting Courses
What is meant by financial accounting?
Financial accounting is a specialised branch of accounting that keeps track of a company’s financial transactions. Using standardised guidelines, the transactions are recorded, summarised, and presented in a financial report or financial statements such as an income statement or a balance sheet.
Companies issue financial statements on a routine schedule. The statements are considered external because they are given to people outside of the company, with the primary recipients being owners/stockholders, as well as certain lenders. If a corporation’s stock is publicly traded, however, its financial statements (and other financial reportings) tend to be widely circulated, and information will likely reach secondary recipients such as competitors, customers, employees, labour organisations, and investment analysts.
It’s important to point out that the purpose of financial accounting is not to report the value of a company. Rather, its purpose is to provide enough information for others to assess the value of a company for themselves.
What are the duties of a financial accountant?
Financial accountants are essential in the business environment, their duties include but are not limited to:
- Review financial records and transactions
Financial accountants in smaller companies may physically make transactions to the books and records. However, in most situations, other employees record transactions, while the financial accountant reviews these entries for accuracy and proper account posting. After examining the actual transactions made over some time period, the accountant will then review the books and records to ensure they accurately reflect the operating results of the organisation. These accountants also organise company books and records in preparation for the annual outside audit of the organisation.
- Report to senior management
Reports to the senior management team are important responsibilities for all financial accountants. More than financial statements, these professionals create reports for all things financial that relate to the organisation. Most reports will also contain the financial accountant’s evaluation of the meaning and trends shown by the documents. Using graphs and text narratives to complement the reported numbers, financial accountants interpret the impact of the accounting results on all aspects of company operations, including HR, marketing, borrowing, investment and strategies.
- Advise management
After reviewing and analysing the company’s books and records, the accountant offers feedback and advice to senior management, particularly relating to asset quality, liability position, cash flow sufficiency, and revenue/expense issues. Experienced financial accountants also provide advice on the status and use of company resources, updates on the budget and results of projections in the business plan and the latest financial news that could affect organisations operations. Depending on the accountant’s experience level, this professional might also advise senior management on HR, strategic planning, better control of expenditures, and/or company investments.
- Tax issues
Financial accountants are experts on local, state and federal taxes as they apply to businesses, large and small. Their tax advice to management includes recommending action plans that reduce the tax liability, tax-deferred or tax-free investments, non-taxable asset swaps, and cash flow planning so as to remain liquid at tax filing/paying dates, usually quarterly. Financial accountants also either prepare all tax forms and reports or review the work of others to ensure that all tax filings are correct and timely.
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Last Updated: March 1, 2018