Understanding Corporate Accounting Services:

Introduction
What is corporate accounting?
A corporate accountant
Duties of a corporate accountant
Difference between corporate accounting and financial accounting
What are the benefits of a career in corporate or public accounting?
How do I start?

Introduction

As an accountant, looking to switch fields, or just curious, it’s important to define corporate accounting and corporate accounting services. You should understand that accountants who work in the corporate or private sphere, are employed by non accounting firms instead of accounting companies. Understanding Corporate accounting services will position you to work in any small local offices, as well as national corporations or international firms.

What is corporate accounting?

Corporate Accounting is a special kind of accounting which has to do with accounting for companies, preparing their final accounts, cash flow statements. As well as analyzing and interpreting of companies’s financial results and accounting for particular events. Such as absorption, amalgamation, preparing of consolidated balance sheets. A public company basically is regarded as a company that is allowed to offer its registered securities (like stock, bonds, etc.) for sale to the general public. This is typically done through a stock exchange, but equally might include companies whose stock is traded over the counter (OTC). That’s via market makers who are using non-exchange quotation services.

This meaning of a public company orginated from the practice of public ownership of assets and interests by and for the people as a whole. This is the less common meaning in the United States. The advantage here is that it is well able to raise funds and capital through the sale of its securities. That is where a corporate accountant comes into the picture, who will handle the corporate accounting services of the public company. This is the very reason why public corporations are so important together with corporate accountant. Before their existence, it was very hard to be able to obtain large amounts of capital for private enterprises. In addition to not only being able to easily raise capital, public companies might issue out their securities as compensation for those that will provide services to the company.

A corporate accountant

Basically, corporate accountants can work in a team or a department under the instructions of the CFO (Chief Financial Officer). Instead of to help a wide range of clients, corporate accountants will just work for a single company. Develop an impressive deep knowledge into the industry or niche. They might basically choose to stay in that particular industry, to gain specialized knowledge. Some corporate accountants even do work their way up to CFO.

Therefore, accountants are qualified professionals who are employed by organisations or private clients to audit their accounts. As well as to record their business transactions, prepare their annual reports and financial statements and to offer financial advice. They might equally be involved in the creating processes within an organisation and offer advise on tax laws and investment opportunities. Their key objective is to make sure that companies are operating efficiently and more effectively.

A corporate accountant employed in an industry will basically focus on ensuring that the corporate accounting services of the company are correctly recorded. As well as controlled and monitored with the management having the necessary information to make business decisions. They might have different responsibilities, but are they are commonly involved in the preparation and monitoring of the financial records of the company. Together with financial planning and analysis, provide management information and ensure compliance with laws, regulations and the company’s policies.

Responsibilities

Responsibilities might vary, but examples include the following:

• To prepare annual statutory accounts and to manage annual audits
• Manage the monthly end process, prepare and present monthly management accounts
• Providing their commentary on financial performance
• Prepare budgets and equally monitor expenditures
• Analyze finances to be able to determine risks and create forecasts
• To analyze data to assist with decision making
• Submit quarterly VAT returns
• To carry out bank reconciliations
• Maintaining and updating the company fixed asset records
• Manage cash flow and bank balances
• Offer advice to the senior management team and shareholders

Why are they important?

Corporate accountants play a very important role in running a business because they will help the company with their corporate accounting services. They are there in the company to track income and expenditures and ensure statutory compliance. A corporate accountant will make sure that all financial information is very visible and organised. Also they will provide investors and management with financial information which might be used in strategic planning and business decisions.

Skills needed for this role

Corporate accountants are required to have excellent analytical and organisational skills, together with the ability to manage deadlines. They need to have a good commercial awareness skills with strong communication and interpersonal skills.

Duties of a corporate accountant

This depend on the size and scope of the business, a day in the life of a corporate accountant might look very different. Basically, this type of accountant do works a 9 to 5 job in a corporate setting. They might work individually as well as in teams, that depend on the CFO. Let’s look at some of the primary duties a typical corporate accountant might carry out:

Basic bookkeeping

Like any other accounting job, there’s bound to always be some reconciliation and categorization. This depends on the size of the company, there might be a team of entry level bookkeepers for their basic accounting tasks.

Report creation

A corporate accountant has the responsibility to create the financial reports that executives will use to make strategic business decisions. He will need to carry out some research to be able to gather data from different departments. As well as divisions and even locations in order to provide a correct and up to date representation of the corporation’s financial standing.

Financial analysis

Many corporate accounting teams will always lend their insight to the business financial analysis. Their work is to make sure that capital is being used effectively and advise on investments and projects that will grow the company.

Budget planning

The work of a private accountant will be to prepare and plan budgets for the year. They will be to routinely run audits to make sure departments stick to their budgets and meet their spending and profit goals.

Business forecasting

Forecasting in business actually means a decision making tool that will help a company prepare for the future by optimizing their operations. Because corporate accountants are more knowledgeable about the numbers that drives a company’s success or failure. They will be very critical in data driven decision making.

Payroll processing

You should understand that it’s not uncommon for accountants to run payroll processing. Although this responsibility can be shared with the HR department in a bigger company. Payroll accounting include the following:

• Calculating staff salaries
• Handling employee taxes
• Retirement account distributions
• Overtime compensation

Expense management

In addition to handling the payroll, accountants that work for a corporation often handle their corporate accounting services. From approving the expense requests, process invoices to inventory tracking and absorption costing. Private accountants will have to keep a keen eye on the company spending.

Receivables tracking

While some companies might have a team solely devoted to bring in money. Oten times, accountants will be there to manage accounts receivables. Corporate accountants will be required to handle some due payments from clients. And equally work with collections agents to be able to improve cash flow.

Difference between corporate accounting and financial accounting

Financial accounting

It is an accounting system that deals with preparing the financial statement by aggregating the financial statement and transaction that took place. The major intention of financial accounting is for the accountant to keep proper records of financial data. As well as to explore the possible means to find profitable ways in terms of finance. Often people tend to opt out of the outsourced financial accounting. In a way for them to get rid of the worries and hassles involves in the accounting sections.

Corporate accounting

An accounting system, that is done by an organisation to regulate a business revenues and expenses. Also, corporate accounting will help to regulate and equally forecast the business operation based upon the financial status of a business. Many companies prefer outsourcing corporate accounting services to be done by professionals. It is a cost effective thing to be done by any company.

Difference between corporate accounting and financial accounting

1. Financial accounting requires an expert auditing to evaluate the results of a company. While corporate accounting does not require any audit or to be publishes it for internal use.
2. Financial accounting is very important for all entities. While corporate accounting is truly optional, it is purely focused on predicting or forecasting the financial status of the business.
3. It is carried out within a specific period, while corporate accounting is done monthly or quarterly, yearly.
4. Financial accounting being a type of accounting is carried in a specific set of format. While on the other hand, corporate accounting does not in any way have any format for performing accounting.

Therefore, both financial and corporate accounting will help any organisation or business in different ways. However, financial accounting is meant to record the financial transactions. While corporate accounting is done to analyze the financial performances of a company.

What are the benefits of a career in corporate or public accounting?

Before we look in to the benefits of a career in corporate or public accounting. First let’s understand the difference between a corporate accountant and a public accountant.

1. The major difference between corporate and public accountants is who they are working for. That is a single corporation or the general public.
2. Public accountants are working in public companies that sells accounting services, while corporate CPAs work at organizations that sells something other than accounting services.
3. Many recent graduates always choose to start in public accounting to build a solid foundation for later work in the corporate sphere. Public accounting has the advantage to provide a breadth of knowledge, while corporate accounting provides a greater depth in accounting.
4. Work life balance might be a beast during the tax season in either position. However, private accountants might find out that they have a more stable schedule year round, while public accountants will tend to see more fluctuation. Fortunately, some accounting firms are lessening the required hours in the summer. To be able to offset the strain of the busy season and be more competitive in their hiring.

Corporate accountants might start out with a higher pay, though the opportunities for promotion might be leaner. In any accounting firm, on the other hand. It is believed that progression will be quick and there’s always room for the accountant to become a manager or partner.

Benefits of working in corporate or public accounting

Everyone has a different accounting journey. But that doesn’t really determine whether public or corporate accounting is the right choice for you. You’ll really need to do some serious self reflection. For instance, Craig Lewis, a Tax Associate at Haynie and Company, loves to work in public accounting. Because of the variety it brings and the meaningfuf client relationships, one develops with his/her clients.

The benefits of working in corporate or public accounting include the following:

• Work life balance: The busy season might still be taxing but the difference in hours isn’t as dramatic during the non busy period.
• Specialization: Accountants with specialized experience will appeal to niche industries. Such as big retailers and government agencies.
• Consistency: The comfort of a daily routine, central location, and dependable salary are there.
• Incentives: Aside from the accountant’s salary, large corporations are known to ooffer competitive compensation packages. Such as sock options, bonuses, pension, etc.
• Job Satisfaction: Not just working for their clients, they are more invested in the company and actively contributing to the bottom line. Which is providing corporate accounting services to their clients.

Understand that while there’s no rule that says you can’t switch between corporate and public accounting, it might be difficult. Many accountants say that it’s relatively easy to switch over to corporate accounting after you must have worked in the public sphere. But it’s more difficult to go from corporate to public. For this reason, many CPA tax advisor start in a public accounting position in order to get some foundational experience.

How do I start?

To be either a public or a corporate accountants. Your first step is will be to get a Bachelor’s Degree and that will likely be in accounting or finance.

While in school, you should get some experience, is very important. Positions like entry level bookkeeping don’t require any degree. But it will give you invaluable insight into the field you are about to pursue as your career. While an official internship at any accounting firm will look great on your resume, you could equally consider to do freelance bookkeeping. Some accounting software companies often provide a discounted package to bookkeepers. Who are very much interested to build up their client base.

Also you need to get used to the software that’s out there. Start by playing around with the bulk reconciliation or auto-categorization. Once you’re fully ready to find some clients, do everything within you to streamline communication and make your potential clients’ lives very easy. For instance, with some software like ZipBooks Accountant. You can easily send a text directly from your dashboard when you have a question about a certain transaction. Your client will receive your message on their phone and will be able to respond immediately. Being able to work very fast and improve your client relationships will give you an edge in modern bookkeeping.

Consider a Masters program

Once your undergraduate studies is finished, you might consider getting a Masters Degree. Especially when you want to specialize in tax or administration. For you to become a licensed Certified Public Accountant, you equally need to pass the CPA exam. Passing the CPA exam is not a joke, several times it’s been compared to the California Bar Exam because of how difficulty it is. So don’t be surprised or discouraged if you happen to take the test more than once.

Research companies you really want to work for (this might vary for both public and corporate accountants). You need to critically consider your career path. Probably you’re hoping to work for one of the Big 4 accounting firms, you need to look for a public accounting career in a huge corporation. Tax advisers and bookkeepers basically go the CPA route. But you might equally pursue governmental or management accountant or even consider being an auditor.

Accounting career to consider

Have this in mind that there will always be accounting positions in high demand. Consider to start your job search with one of these accounting careers:

• Bookkeeper
• Staff accountant
• Auditor
• Controller
• Financial analyst
• Budget analyst

Whichever field you want to enter into, you need to be a more competitive candidate if you have some real world experience first.