Define Corporate Accounting: Everything You Need to Know
When people define corporate accounting, it refers to a specific accounting branch that handles accounting for companies.3 min read
2. What Are the Duties of a Corporate Accountant?
3. Financial Statements and Ledgers
4. Budget Preparation
5. Benefits of a Corporate Accounting Career
When people define corporate accounting, it refers to a specific accounting branch that handles accounting for companies, prepares their accounts and any cash flow statements, analyzes and interprets the financial results for the business, and looks at any events such as absorption, amalgamation, and consolidated balance sheets.
Qualifications of a Corporate Accountant
Many employers make it mandatory to have a bachelor's degree in finance or accounting in order to qualify for a job in corporate accounting. Some employers might also want them to have the Certified Public Accountant credential. This is smart to get regardless, as it can open up the number of employment opportunities for those who have it.
What Are the Duties of a Corporate Accountant?
Accountants are in charge of maintaining financial records and may specialize in several different areas when it comes to financing and accounting. Those who work in corporate accounting focus on business accounting and keep the financial records for the organization to make sure they're fully complying with the regulations, laws, and policies of the organization. Any department that wants to have a large expenditure needs to run it by the finance department first to make sure there's funding for it. It's the accountant's job to help the executives make smart financial choices.
There are two main functions in the industry, which include the following:
- Accounting - deals with daily operations, track revenue and expenses, balance the books, pay all bills, and execute payroll.
- Finance - analyzes expenses and revenue to make sure capital is being used effectively, advises companies on project costs, and makes capital investments.
Financial Statements and Ledgers
Corporate accountants are in charge of preparing and consolidating a company's general ledgers and financial statements. They collect financial reports and ledgers from the divisional offices and get the financial statements ready for company executives. These accountants make sure every division of the company contributes to their revenue.
Organizations have to make sure they meet all of their financial goals every year. The corporate accountant is in charge of preparing the budget so each department has enough spending money. This can go towards costs such as investments, department needs (like supplies), or hiring. These accountants often run audits to make sure every department sticks to their financial budget and the goals of the organization are met every year. The executives of the company will review and approve the budgets each year.
Benefits of a Corporate Accounting Career
Private accounting makes sure that professionals can work on their craft in the area they enjoy. They might have a great work-life balance than those who work in public accounting, but these firms are also actively addressing this problem as they compete more and more with the private sector. There are some specialization opportunities that often need new accounts for their teams, such as major retailers, governmental agencies, manufacturers, technology firms, biotechnology companies, and environmental organizations.
Areas such as business valuation, IT, and forensic accounting are also in high demand. These opportunities that help support business growth in businesses, such as business system analysts and financial analysts, give accountants a different opportunity to contribute directly to the company's main goal. If you want to be an executive that's high-ranking in a certain industry or firm, it's better to get that specialized experience quickly in a corporate setting.
Corporate accountants report the company's results for the business which they're employed, which means they may be more satisfied with their job compared to public accounting who works for clients. Private accounting also wins when it comes to having more personal flexibility. The main focus in public accounting is billable hours, while there isn't a need to track hours in private accounting since the focus is on making money for the company each day.
There are often fewer instances of overtime when it comes to corporate accounting. However, during tax season it can be normal for an accountant to work six days a week. It's comforting to know you have a certain job and set place to do it each day for many people, as having a normal routine decreases stress in many people.
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