Businesses often fail to meet the ever-changing accounting and tax standards.
Sometimes, they are difficult to understand, and at other times, busy schedules limit accounting practices.
But the government at local, state, and federal levels doesn’t give an ear to your accounting problems.
Therefore, hiring different types of accountants per your business needs is highly recommended.
However, hiring them all at once is nearly impossible, and this blog post shares which accountant serves what roles in businesses.
Table of contents
- Who is an accountant?
- What are the different types of accountant, their roles, and salary?
- Conclusion
Who is an accountant?
An accountant is not a legally bound name, and anyone with little knowledge can call themselves accountants.
However, these professionals have qualifications from a renowned institute and hold a CPA certification. Additionally, those who complete the CPA exam acquire a license to practice accounting.
They need to renew their license by continually demonstrating a certain number of hours spent in their professional development.
Regardless of the types of accountants you hire, make sure you check their qualifications and licenses.
What are the different types of accountant, their roles, and salary?
Listed below are a few types of accountants and their salaries.
1. Public accountants
A public accountant is a specialist who works for a public accounting firm and handles accounting, tax, auditing, and consulting duties.
A bachelor’s degree in accounting and finance or related fields and Certified Public Accountant (CPA) certifications are prerequisites for working as a public accountant.
These accountants are responsible for day-to-day accounting tasks in an organization.
It mainly includes preparing and verifying financial documents, analyzing budgets, and financial planning.
They also offer consulting services, bookkeeping, and auditing tasks.
However, these are only the general responsibilities of a public accountant, and they can differ due to numerous factors.
- Salary
The salary of a public accountant is around $78,000 yearly. It varies depending on the level of education, certification, and experience.
An entry-level accountant starts at around $48,000, while a senior-level accountant can earn around $110,000.
2. Tax accountants
It is one of the main 3 types of accountants that focuses completely on companies and individual taxes.
A tax accountant is in charge of ensuring their clients are paying liable taxes and staying compliant with the regulations at all levels.
Some of the duties include determining tax strategies, preparing tax returns, arranging audits with tax authorities, interpreting regulations, explaining any changes regarding tax, etc.
- Salary
The average tax accountant’s salary is around $57,000 per year. However, it depends on their experience level, company position, and tax complexities.
An entry-level tax accountant can start at around $44,000, while a senior tax accountant can expect up to $76,000 annually.
3. Auditors
These professionals are responsible for verifying and validating your company’s financial statements.
They check for fairness and accuracy in your financial records and compliance with the standard laws.
Additionally, these professionals ensure your taxes are paid timely and inspect your accounting books and systems for efficiency.
Auditors then create a report on their evaluation of your company and submit it to the government, stakeholders, investors, or higher management.
- Salary
The median salary range of an auditor is around $57,000, where an entry-level auditor starts around $41,000, and a senior auditor can expect up to $83,000.
4. Cost accountants
Out of different types of accountants and what they do, cost accountants are responsible for reducing your company’s financial waste and improving your profits.
They work closely with management so that they can fulfil your financial objectives.
These professionals are responsible for determining the original cost of a product or its manufacturing cost, budget preparation, analyzing profitability, and scrutinizing your organizational expenses, etc.
- Salary
Cost accountant’s average salary annually is around $56,000, where an entry-level accountant gets $43,000 and senior officials receive $78,000.
5. Financial accountant
These professionals are unique due to their analytical and organizational skills. Financial accountants are responsible for overseeing companies’ financial statements.
The duties often include recording, maintaining, and classifying financial records, and reconciling billing vouchers, etc. They also make your financial statements go public whenever needed and help you gain a reputation and trust from the public.
- Salary
The median salary of these accountants is around $55,000 annually. This number varies depending on position, qualification, experience, and financial complexity.
An entry-level accountant can start at $41,000 and go up to $79,000 for a senior financial accountant annually.
6. Forensic accountants
A forensic accountant is responsible for examining your financial documents to ensure no fraud, mistakes, or omissions. Additionally, they ensure your records comply with local, state, and federal regulations.
These professionals can work for forensic agencies, be self-employed, government agencies, independent contractors, and legal firms.
Due to their expertise in comprehending and resolving intricate financial matters and large sums of money, these individuals are highly in demand to testify as expert witnesses in court.
- Salary
Cost accountants can receive an average salary of around $56,000 per year. An entry-level accountant can start with $43,000; an experienced accountant can go up to $78,000 annually.
7. Government accountants
The government hires such professionals to manage public funds, look into white-collar crimes, and conduct system audits across every government level.
They know company legislation, tax regulations, and other laws related to the public and private sectors.
Government accountants can assist localities with budgeting and assessing the feasibility of utilizing public funds for community infrastructure projects.
They collaborate with Federal and local regulatory agencies like the Internal Revenue Service.
- Salary
These accountants earn an average salary of around $75,000; entry-level employees earn $55,000; certified government accountants receive $110,000 annually.
Conclusion
Accountants play a vital role in corporate and government agencies. Each accountant has unique qualifications and experience to help you in multiple ways.
Before hiring either of them, you must understand these types and their roles.
Don’t forget to check their salaries to ensure you pay them fairly and keep working with top-notch professionals for longer.
