It is a famous phrase that says the world works on money and who is a better individual than an accountant whose entire workspace revolves around money. Individuals who have a keen interest in learning about how to manage not just their own expenses and transactions but also help large organizations with their large transactions and accounts, aiming to become an accountant might be the ideal choice for you. In this article, we will discuss who is an accountant and how you can pursue a career in this field: the qualifications and skills required, the salary paid for this profession, etc. Below you will also find a sample Accountant Employment Contract Template, which can be used by the human resources department as a reference to form their own contracts after tweaking it to their requirements.
Who is an accountant?
An accountant is an individual who is responsible for taking care of all the financial aspects of a firm by recording and maintaining ledgers, journals, balance sheets, profit and loss statements, share and debenture cash flow statements, etc. of the firm. The job of an accountant also requires them to audit financial statements, file tax returns, and review bank documents to help the firm allocate their expenses and profits fruitfully. They also study the company’s financial documents to facilitate forecasting for the firm to help the stakeholders get the maximum returns and profits from their respective firms.
Accountants are required to provide accurate details of all financial-related activities as the firm’s future depends on the proper usage of its assets. Any fault in these documents can gravely impact the smooth working of an organization or an institution. Individuals working as accountants in the United States are required to adhere to all the rules and principles written in the Generally Accepted Accounting Principles (GAAP). Their duties also include doing the odd bank jobs like making payments made and received, maintaining passbooks for the top senior management, fund allocation for a specific cause, etc.
How to become an accountant
An accounting aspirant is required to complete the following to pursue this job field:
- Complete your bachelor’s in finance, accounting, or any other related field and obtain a degree in the same with reputable marks.
- Score well in the national exam conducted for all aspiring accountants to get the status of a verified accountant in order to work at reputable firms.
- Gain a working experience of 2-6 years in the field of accounting or finance through lower position jobs, working as interns, etc.
- The individual should be equipped with working knowledge of accounting software.
- An individual should pay attention to details.
- The aspirant should have adequate analytical and critical thinking skills.
- The candidate should have proper communication skills.
- The aspirant should be a mathematical intellectual.
- Individuals should have knowledge of general accounting documents like ledgers, journals etc.
- They must develop proper interpersonal skills to function well in a diverse organization.
According to indeed.com, the average salary of an accountant in the United States amounts to 55,803 American dollars per year. However, please note that the range of the salary differs from an individual’s experience, skills, etc. The average salary range for this career field amounts to 51,741 American dollars to 64,249 American dollars annually. Along with tangible income, an accountant may also be provided with additional benefits like disability insurance, parental leave, etc. Presently, Washington Dc is paying the highest to their accountants at 100,276 American dollars per year, whereas the Department of Homeland Security is the highest paying company, paying a sum of 102,835 American dollars.
A Sample accountant’s employment contract template:
Date of start:
Contracting for the job title: “Accountant” (Mention the grade)
Tasks to be performed:
- perform the task of maintaining subsidiary ledgers and other general customary accounting duties.
- Calculate and double-check your worksheets before posting and balancing the general ledger. Accounts in the general ledger must be reconciled.
- Prepare statements for the month and year-end.
- Formulate financial statements profit as well as expense-centric statical reports and statements and present them to the respective top management.
- Analyze the various trends as well as operating results in terms of cost profits
- Prepare accounting statements using ratio analysis
- Provide assistance to the company to help understand their tax reviews and fix any tax-related issues for them with the help of the appropriate procedure for it.
- Prepare appropriate financial data and managerial reports to help in forecasting by presenting them to the managers in the form of accounting statements.
- Review other companies’ accounting information and suggest improvements to the home company to make better financial decisions.
- perform the task of auditing for the firm.
- Perform the duty of documenting supporting accounting activities.
- Prepare for fixed asset management reporting.
- Formulate the monthly journal by putting correct entries of transactions whenever they occur.
- Perform all the activities necessary for filing taxes for the companies. That is the qualification needed to file tax.
- Support the financial software whenever needed for managerial purposes.
Rules and policies of the organization:
Additional benefits provided:
Additional employee details and clauses:
- Termination of employee: (Reasons and notice period details)
- Meal intervals:
- Wage: (detailed information about the salary)
- Hours of work:
- Number of leaves provided:
- Family responsibility leave:
- Number of sick leaves provided:
- Maternity leaves provided:
- Count of public holidays:
- Special details:
Employee signature: Employee signature and date:
*Here, the company is required to mention a cautionary note for the potential employee to read the terms and conditions carefully before signing and agreeing to any contract made by the company*
Above is a brief collated list of all the information one might require on the surface level to take interest or just gain more knowledge one might need about this profession before actually pursuing this career field. Being an accountant requires a high level of dedication and patience, along with appropriate calculus and interpersonal skills, so an aspirant must work with focus to achieve success in this prestigious field.