General accountant plays the role of assessing business assets and liabilities, analyzing financial statement data, estimating tax payments, developing financial statements, maintaining financial institution reports and performing internal control functions. General accountants also prepare and keep accounting records that are used by auditors and others as evidence in legal proceedings. Accounting is generally divided into three primary segments: internal control over financial reporting (ICF), external controls, and business processes.
General accountants can specialize in a number of areas. One such specialization is that of an audit specialist. An audit specialist can focus on one particular area of business or on the process of preparing and maintaining the financial records of that business. An auditor expert on financial and management practices, management systems, financial reporting policies and regulations, accounting rules, accounting principles and practices, financial planning and forecasting.
General accountants also have the opportunity to obtain certification. There are many certifications available, including the Certified Public Accountant (CPA) and the Certified Management Accountant (CMAA) certifications.
It is important to understand that general accounting has no connection with the business operations, which are managed by managers and employees of the business. However, when dealing with finances, financial documents should be prepared in accordance with the laws, rules, and regulations of the jurisdiction where the finances are managed.
General accounting involves the following activities: identifying the financial assets and liabilities of a business; preparing the balance sheet; preparing the statement of income; and establishing the statement of cash flows. General accounting also includes the preparation and maintenance of books of accounts, the preparation of financial forecasts and reports, providing advice to management and auditors, preparing financial statements and auditing financial information.
General accounts are essential to maintain the accuracy of financial reports and to support the determination of the cost of doing business. A company is considered to be in deficit or surplus if it has a positive net worth or positive assets and a negative net worth if it has a negative asset value. General accounts are maintained to facilitate accounting control of the cash flows of the company and to make accurate accounting comparisons.
General accounting involves a number of principles and practices and may include the use of various methods. Some of the practices involved in general accountancy are: financial statement preparation, control of financial resources, preparation of reports, bookkeeping and financial statement interpretation, preparation and maintenance of financial statements and bookkeeping standards, preparation and maintenance of financial instruments. In addition, general accountants are expected to follow certain guidelines, which include being familiar with the tax laws, maintaining an effective and up-to-date books and records, maintaining financial institutions and financial records, and understanding and adhering to accounting rules and regulations.
General accountancy professionals are required to have excellent communication and interpersonal skills, as well as good knowledge and experience of the accounting procedures of their particular discipline. This includes the ability to use computer software to perform financial analysis, be able to understand and interpret financial information, and be able to communicate effectively and accurately in written, oral, and visual forms. General accountants must also be familiar with business law, especially accounting laws, rules, and regulations.
General accountants are usually licensed by their states to practice. A license is required of any person that wishes to become a certified public accountant. The CPA exam is also required for this exam.
General accounts professionals should have a thorough understanding of the concepts involved in the area they are working in. The basic accounting principles and methods are essential to the preparation and maintenance of the balance sheets and financial reports.
General accounting is an important aspect of any company’s operation. Without a thorough understanding of general accounting practices, the management will not be able to plan, control and/or oversee the proper and effective use of its funds and resources.