Different Types Of Accountants Explained

In Australia, there are a wide variety of accounting specialisations available. There are many different kinds of accountants, and each of them specialises in a different field and may provide clients with a different set of services. If you are searching for assistance with your accounting, it is essential to have an understanding of the many types of accountants available so that you can select the one who is most suited to your requirements.

In Australia, there are a wide variety of accounting specialisations available. Which option is most suited to your needs? This post will assist you in making a decision. There are accountants who work for the public sector, the private sector, and the government. The majority of public accountants are employed by accounting companies.

Accountants in private practise provide their services to either individuals or enterprises. Accountants working for the government are known as government accountants. There are distinct areas of expertise that are associated with each sort of accountant. Which option is most suited to your needs? Let's find out!

Which Specialisation in Accounting Is Best for Me?

No matter what it's called—service line, business area, division—your possible future employer will ask you where you'd like to specialise in the workforce if they hire you.

The field of accounting provides a wide variety of job opportunities. Prior to submitting your application for graduate positions, one of the first and most crucial considerations you'll need to make is what area of specialisation is most suited to you.

It is possible that certain areas of specialisation are off limits to you based on the education you received and the courses you choose to take while you were in school. These factors will have an impact. For instance, if you are interested in pursuing a career in auditing, having a strong academic foundation in business studies can be useful.

Doing one of the "self-selection tests" that many accountancy firms put on their websites to assist potential graduate employees in determining which areas of the business they are best suited to is a good idea once you have determined which specialisations are realistic options.

These tests can be found on many different websites. Last but not least, if you're interested in doing things the old-fashioned way, you can always try to find someone who already fills the post you're interested in and ask them for their perspective on what it's like to work there.

Assurance

Those with a solid academic history, above-average communication skills, and abundant self-confidence will find this to be a rich ground for career advancement. According to the definition provided by the CPA, assurance refers to professional services that are "designed to strengthen the confidence that users can place in a specific subject matter or information." It entails examining a company's financial data and procedures to guarantee that decisions are being made on the basis of high-quality information and that the money contributed by shareholders is being used in an appropriate manner.

You will also be giving potential investors the knowledge they require to decide whether or not to put money into a firm after you have presented it to them. E-commerce, mergers and acquisitions, internal controls, inventory, fixed assets, accounts payable, and system reliability should all be on your to-do list (basically anywhere information needs to be compiled to make a smart business decision).

Commercial Finance

Do you have a firm grasp of analysis and a good sense of business? Commercial finance is at the centre of the business world and is mostly concerned with consumer dealings. You might find work in areas such as retail, manufacturing, the fast-moving consumer goods industry, or even the leisure and hospitality industry. You can anticipate to be tasked with evaluating the efficacy of the goods or services offered by your employer and putting up suggestions designed to increase profits.

Corporate Finance

You'll need confidence that cannot be shaken, unimpeachable communication and numeracy skills, and a hunger for long hours and high-stakes scenarios in order to succeed. You will bring the most value to companies that are currently engaged in mergers and acquisitions activities, as well as fund raising and capital restructuring.

There are a variety of roles that need to be filled, ranging from lead advisers, who act as project managers for the process of raising capital, to reporting accountants and auditors, who are accountable for ensuring that the target companies' books are in proper order. No matter what job you play, one of the most important aspects of evaluating and managing risk from a strategic, tactical, and financial viewpoint will be on your shoulders.

Corporate Treasury

Have a superior understanding of business and economics, first-rate analytical abilities, and a flair for doing effectively under pressure? If so, read on. Given that it is the responsibility of the corporate treasurer to ensure that there is sufficient cash on hand to pay outgoings, this position is an extremely important one in any organisation. This primarily entails keeping an eye on the amount of liquid assets held by the organisation. You will also need to be aware of any developments in the company that pose a risk, and you will need to have made the required financial preparations to ensure the continued viability of the organisation in the event that a risky endeavour fails.

Financial Accounting

People that are analytical, curious, have top-notch communication skills, and are prepared to challenge an organisation to improve the way it functions should strongly consider this option. Financial accountants analyse and report on a company's financial transactions (via financial statements such as the balance sheet, income statement, and cash flow statement), which helps provide essential data about the success of a corporation.

The main distinction between financial accounting and management accounting is that financial accountants prepare reports for parties that are located outside of the organisation, such as investors and regulatory bodies, while management accountants prepare reports for the purpose of assisting managers working within the organisation in making decisions.

As a financial accountant, you will occasionally be required to explain complicated financial issues to individuals who are not professionals in the field; therefore, having strong communication skills is essential.

Insolvency

This is a field of expertise that is best suited for people who have an insatiable interest about the various ways in which businesses operate, good negotiation skills, the capacity to handle complex financial information, and a dash of sensitivity. You will be tasked with the onerous responsibility of doing everything in your power to ensure that the creditors, suppliers, and employees of failing firms are provided with the best possible outcome. Therefore, you will need to have excellent relationship-building abilities if you want to be successful in this industry, as specialists in this field are typically appointed through referrals from banks, lawyers, and accountants.

Internal Audit

You won't be as far off from the people you're being paid to keep an eye on as you would be if you worked as a forensic accountant, but you will be much closer to them. Internal auditors, as their job title suggests, investigate vital facets of the companies for which they work and then submit their findings to higher-ups in the organisation.

Your primary responsibility will be to alert management in the event that any of the company's divisions are managed in an ineffective, financially dangerous, or dishonest manner. It is a delicate job that is best suited for people who not only have the capacity to grasp the wider picture but also have an eye for the details. Internal auditors are required to have a comprehensive understanding of how firms are operated as well as the ability to communicate effectively, frequently under stressful conditions.

Risk Evaluation

Do you have a critical, logical attitude that allows you to hone in on problems and find solutions? ability to think creatively in order to devise answers to those problems? Confidence and abilities to interact with others? If this is the case, you might be interested in risk assessment. It is all about assisting organisations in comprehending risk, prioritising it, and effectively managing it so that issues can be avoided and opportunities can be capitalised on. This makes it possible for customers to achieve their objectives, which may include expanding their businesses, outperforming their competitors, or safeguarding their brands.

Tax

This is a subfield that, for reasons that should be self-explanatory, offers a wealth of chances for promotion and the possibility of substantial financial reward. In order to differentiate yourself from the other candidates, you will need to be gifted in the areas of analysis and problem solving, have exceptional numeracy abilities, and be able to establish and keep trustworthy working connections. It goes without saying that prudence is another requirement. Tax consultants may be retained on an as-needed basis by companies or wealthy individuals in the capacity of consultants to provide one-time solutions to specific tax issues. Alternatively, they could be employed on a continuous basis, with the purpose of guaranteeing compliance and providing cost-effective answers to taxes demands placed on their customer.

What Kinds Of Accountants Are There?

The term "accountant" is one that is frequently used in the context of the business sector. If you have any engagement in the business world, you are probably aware that the vast majority of companies will, at some point, find it necessary to make use of one.

However, if you are uncertain about the differences between the various sorts of financial wizards that we call accountants, you are not the only one who feels this way, and a chartered accountant can be the ideal professional to meet your requirements. You may also want to think about approaching a successful entrepreneur with previous business ownership, who is able to provide valuable advice and suggestions on how to define and accomplish your company's goals.

It might be difficult to determine which kind of accountant would be best suited to meet the requirements of your company. You and your company have access to a wide variety of accountants and home service professionals; the following is a brief overview of some of these distinct sorts.

Bookkeepers

Bookkeepers may be the most entry-level level of accountants, yet their role should not be minimised in any way. ​

They will record all of the financial activities that occur in your company, such as sales, receipts, purchases, and payments. Because the correctness of their work is the foundation upon which all subsequent accounting data is built, it is essential to hire a bookkeeper who has a meticulous eye for detail.

Chartered Accountant (CA)

When it comes to competence, becoming a Chartered Accountant is a significant step forwards. After earning a Bachelor of Science degree in accounting and business, candidates are required to complete postgraduate studies and a three-year programme while working under the supervision of a mentor who has been approved by the CA. CA members have high-level skills in a range of areas of accounting, including tax, auditing, financial reporting, and management accounting, and they are recognised internationally for their expertise in these areas. If your accountant has a CA certification, you can feel confident in their abilities.

Certified Practicing Accountant (CPA)

A Certified Practicing Accountant is someone who has not only earned a bachelor's degree in accounting but also has post-graduate experience in the field. They must complete three years of practical experience while working closely with a recognised mentor in order to develop high-level abilities in accountancy, much like CA members do. This is a requirement in order to become a CA member. Members of the CPA profession are also proficient in a diverse range of accounting specialisations.

Certified Public Accountant Specialising in Bankruptcy Matters

When a company is unable to continue making payments on its debts, it is considered to be insolvent. When a company runs into severe financial challenges, it may be necessary to enlist the assistance of an insolvency accountant.

An insolvency accountant will typically assist a company that is having trouble making ends meet by determining whether assets can be liquidated, renegotiating the terms of any current financial arrangements, and elaborating on any applicable regulations. Businesses that are having trouble making ends meet may be able to pull themselves out of financial distress with the assistance of an insolvency accountant.

Working in the field of insolvency accounting will put you in contact with companies and individuals that are frequently undergoing exceptionally trying circumstances. Because of this, in addition to having strong financial skills, you will also need to have excellent communication skills and a high level of emotional intelligence.

Tax Accountant

As is evident from the name of the profession, a tax accountant is someone who specialises in the field of taxation. If you have trouble navigating the complex world of taxes, your best bet is to hire a professional tax accountant rather than wasting time and energy attempting to figure things out on your own.

Administration Accountant

A management accountant is responsible for analysing important financial data so that it can be used in the decision-making and planning processes of a company. A management accountant is able to handle the company's finances, including funds, cost analysis, and stock holding, among other things. Think about whether or not you require assistance with the management of your company; such services are typically utilised by organisations that are medium to large in size.

You'll need to have excellent decision-making abilities, a wealth of business acumen, and the ability to communicate complex financial information to staff members at varying levels in a manner that is understandable. Management accounting is all about providing information and reports that can assist in the process of decision-making within a firm. This is the main focus of management accounting.

Management accountants acquire a broad range of abilities, including planning, management, and strategy, in addition to an in-depth understanding of the industries in which they work (in addition to the standard accounting competencies). Once management accountants have obtained the aforementioned skill set, knowledge, and experience, they are in a position to provide useful, specialised, and industry-specific advise.

Management accountants evaluate an organization's current financial situation and make recommendations for how it might be improved. Their tasks and responsibilities include supervising the accounting staff, preparing the budget, submitting the external financial reports, managing the risks, and conducting profitability evaluations.

Management Accountants are frequently in charge of supervising other workers, and because part of their job is communicating essential financial information to members of the management team, they are required to have excellent communication skills.

Investigatory Accountant

Are you in difficulty with the law as a result of monies that went missing or differences in your accounting? You need the assistance of a forensic accountant. They collaborate with people and businesses who have been accused of committing financial crimes, such as evading taxes, engaging in fraud, or stealing from their employers, among other offences.

Forensic accountants are professionals that investigate white-collar crimes using investigative abilities that combine those of an accountant and a detective. Searching for monetary anomalies is the primary method used by forensic accountants, who have specialised training in the area of fraud and embezzlement detection.

If you're the type of person who gets a kick out of a good mystery novel, you might want to think about a career as a forensic accountant, in which you assist customers with issues such as suspected wrongdoing, fraud, and disputes.

You will conduct investigations to discover important facts about the individual or organisation in question and assess the losses that have been incurred as a result of these actions. You will need to have a mind that is naturally curious in addition to having the communication skills necessary to explain complicated issues to people who are not specialists.

They may find employment in public accounting firms, consulting firms, law firms, law enforcement agencies, insurance businesses, and other related fields. Because forensic accountants collaborate so closely with law enforcement, the quality of the work they produce is held to an exceedingly high standard because it may be presented as evidence in legal proceedings.

This is a highly specialised position that would be appealing to someone who has a strong ability to think analytically as well as an acute eye for detail.

​Financial Accountant

A financial accountant will come along once you have logged all of your financial transactions so that they can transform this information into financial reports. After doing so, they will examine the records in order to offer you insightful guidance concerning the financial planning of your company. These reports can also be used by third parties from outside your company to determine the value of your company.

Consultants

A tax counsellor clarifies the meaning of the information in your accounting records for you. They might be utilised for the management of numerous facets of your company's operations. By examining the financial data of your company, they are able to assess whether or not your company is profitable, pinpoint the areas in which your company is making and losing money, assist in the generation of projections, restructure your company, and do other tasks. Isn't it a pretty good resource?

This is merely a high-level overview of some of the several categories of accountants that are accessible to you. They are important to the successful operation of the financial aspects of your company. Pick and choose wisely because it's likely that you won't require each and every one of them.

Investment Accountant

Investment accountants are required to have a solid foundation in accounting in addition to a solid working knowledge of investment prospects.

Investment accountants are employed by a wide variety of funds, including mutual funds, regulated unit trusts, superannuation funds, and hedge funds, among other types of funds. In most cases, they are employed by an investment brokerage or a firm that specialises in asset management.

An Asset Manager or a Broker will typically be hired to handle the management of a portfolio that is comprised of stocks, bonds, and currencies valued at multiple millions of dollars. In order to process the investments and maintain track of any activity involving third parties, the Investment Accountant will collaborate closely with the aforementioned professions. Additionally, they could offer consultation and advise in financial matters.

Auditor

Auditors are responsible for conducting investigations into the financial records of businesses, both in the public and private sectors. Audits are another name for these kinds of examinations.

Examining a company's payroll, expense reports, accounts payable and receivable, inventories, and tax payments are all part of the process of investigating the company's financial records.

In addition to scrutinising a company's financial records and compiling reports, auditors are expected to be able to articulate their findings in a manner that is both clear and concise. These findings concern the legitimacy of a company's financial statements.

Where Can An Accountant Find the Highest-paying Job Opportunities in Their Field?

Do you have aspirations of reaching the very pinnacle of the accounting profession?

You could work your way up to the position of Chief Financial Officer if you put in a lot of effort, are ambitious, and possess the appropriate kind of management skills (CFO).

In your role as chief financial officer, you will be responsible for managing the company's finances in their entirety. As a result of the fact that you will be responsible for the well-being of a diverse group of people, it is imperative that you possess excellent leadership and communication abilities.

The position of chief financial officer (CFO) consistently ranks among those that offer the highest remuneration in the financial industry. According to Indeed, the annual compensation of a chief financial officer in Australia averages $156,258.