Reliable accounting helps in building the financial status and different records of a company effectively and results in achieving desired goals. A company requires comprehensive accounting solutions for sustainable growth and one such type is – Corporate Accounting. Indecent accounting of a company leads to financial obstacles and affects the financial status of the company shortly.
In this article, you will learn the significant role of corporate accounting in the growth of a business. Stay with the article.
What is Corporate Accounting?
What is corporate accounting? In reality, it is a particular type of accounting that contains the financial transactions of a company. For a particular period, it traces the different income sources, sales, expenses, and purchases of a particular company.
As a result of this procedure, individuals get numerous financial statements, including balance sheets, cash flow statements, and income. In other ways, it is a distinct branch of accounting that helps to unveil the company’s money movement in a broader view.
Significance of Corporate Accounting
Corporate accounting is essential to a company for its uninterrupted functions. Here are some amazing facts about corporate accounting that every business owner should know.
· Corporate accounting is assumed as the base of accounting management of a company or business that instructs managers to make worthy business decisions.
· It assists in establishing business communication with different stakeholders.
· It also helps registered businesses to work as per business laws and present their comprehensive finances to the concerned regulatory body (in India, it is SEBI)
· Corporate accountants help business owners in managing important financial statements such as balance sheets, and cash flow statements as per the industry’s laws and compliances.
What are the differences between Corporate Accounting and Public Accounting?
Do you know what is Public accounting? It refers to an individual accountant who provides services for numerous clients, which can be individuals or large corporations. Here are the consequential differences between a corporate accountant and a public accountant.
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A corporate accountant works for a single client in a specialized sector whereas a public accountant works for an accounting firm or large corporation.
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A corporate accountant is experienced and well-versed in the requirements of the industry where they work, whereas a public accountant needs to have a diverse range of skills and knowledge to accomplish the needs of their numerous clients.
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A corporate accountant can obtain the position of Chief Financial Officer (CFO) for a company whereas a public accountant can gain the position of a partner or owner of the firm.
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A corporate accountant gets different resources to attain the company’s needs and has the authority to change the process, whereas a public accountant has to work with limited resources and cannot amend the process.
What are the responsibilities of a corporate accountant?
A corporate accountant manages a single client or a company and is responsible for the following responsibilities–
· Analyzing finances and advising future endeavors
· Payroll management of employees
· Managing comprehensive accounting services, including accounts payable and accounts receivable
· develops and manages the budget of companies
· Generates detailed reports
· General bookkeeping services
For additional information regarding corporate accounting and its features, visit the Accounting Byte portal.
