Trending February 2024 # 5 Reasons For Intercompany Accounting Automation In 2023 # Suggested March 2024 # Top 11 Popular

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Intercompany accounting is an accounting practice of reconciling payments between two subsidiaries of a parent company. During the financial close manually

Sorting through transactions

Cross-matching transactions

Eliminating duplicates and erroneous transactions

Can be time-consuming and erroneous, especially if there’s limited visibility into them.

According to a survey done by Deloitte, 54% of the 4,000 accounting professionals surveyed manually processed their intercompany reconciliations, with limited counter-party visibility to support reconciliation and elimination.

In this article, we plan to have an in-depth look into what intercompany reconciliation is, how it’s done, and how can automation of the procedure help companies reconcile their balances more transparently and efficiently.

What is intercompany accounting?

Intercompany accounting is sorting through, identifying, and eliminating, off of the parent company’s balance sheets, the transactions that made between subsidiaries.

For instance, Mars Inc. owns M&M’s and Snickers. If M&M’s and Snickers make a transaction between each other, that should neither show as a revenue nor a cost on Mars Inc.’s balance sheet. As far as Mars is concerned, money has gone from one pocket to another, and it should be identified, matched, and reconciled as such.

However, it doesn’t mean that intercompany transactions should not be recorded nowhere. If M&M’s had paid Snickers $100, that amount will show up on the former’s account payables and the latter’s receivables.

Note that these transactions should be reconciled off the parent company’s financial documents, regardless of the direction of the transaction (i.e. from subsidiary to parent company, vice versa, or between two subsidiaries).

Why is intercompany accounting important?

According to Statista, the number of mergers and acquisitions (M&A) has been growing since 2010 (Figure 1). This means there is a growing number of subsidiaries sprouting up around the world, which calls for increased accurate and transparent accounting.

Figure 1: A sustained growth in the number of M&A deals globally. Source: Statista

ICR is important because it eliminates intercompany’s transactions from the parent company’s balance sheet, only keeping external transactions.

Double entries (i.e., entries made on the subsidiary and the parent company’s accounts) would give the impression that the parent company has had more volume of transactions and economic activity than it has had in reality. That raises the risk of overstating revenues, or cooking the books.

How is intercompany accounting done?

For relatively smaller companies, this can be done manually. The accountants will:

Look at the list of all transactions

Identify intercompany transactions

Verify the nature, amount, and date of the intercompany transactions

Eliminate intercompany transactions

But for larger companies with increased dependency and transactions on each other, sorting through, identifying, and eliminating intercompany transactions can be error-prone, time-consuming, and tiresome.

Why should businesses automate intercompany accounting?

Intercompany accounting should be automated because it has the following benefits to the bookkeeping of a company:

Intercompany accounting automation solutions are integrated with different business systems (e.g. CRM, purchasing software). Therefore, they can extract sales data from different platforms and keep a single version of the truth in a centralized data warehouse. This means that the risk of overlooking transactions is minimized.

2. Settling accounts

Let’s say subsidiary A is in the U.S., and subsidiary B is in Europe, with A having paid $100 to B. You can leverage web scrapers to automatically extract and apply exchange rates, to see if the deposited euro sum matches $100. Otherwise, RPA bots can alert the user of the discrepancy. This will increase the accuracy of payments and increase the resilience of the accounts.

Intercompany accounting software will automatically settle international transactions.

3. Faster close

Especially for large companies, having the benefit of working with clean data will make for a quicker close.

This means accountants do not have to waste their time first identifying the removable transactions. Intercompany accounting uses RPA and machine learning to identify and eliminate recurring and periodic transactions between two subsidiary companies.

4. Viewable dashboards

For accountants to report intercompany transactions at the parent company, there needs to be constant communication and transparency. Doing this manually over calls, emails, and messages takes time and is error prone.

But cloud-based accessibility of automated solutions means all concerned personnel will be able to see which transactions have been cleared off, and why (i.e. looking at each transaction’s invoice and information).

5. Integration

Adjacent to reconciliation, if there are any lapses in payments or receivables (see point 2), the software uses orchestration to connect with other automated procedures, such as account receivable automation software or account payable to streamline the collection/payment process until the debt is settled.

For more on financial close

We have prepared some articles for you to read to acquaint yourself more with the other technologies for the financial close process, read:

If you think your business would benefit from a financial close solution, we have a data-driven list of vendors prepared.

For broader accounting use cases, we have data driven list of vendors for automated accounting software solutions.

Go through them, and we will help you pick the best ones tailored to your needs:

He primarily writes about RPA and process automation, MSPs, Ordinal Inscriptions, IoT, and to jazz it up a bit, sometimes FinTech.

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Medical Record Automation For Healthcare Providers In 2023

Medical record automation is a growing field in the healthcare industry that has the potential to revolutionize patient data management. With the increasing adoption of electronic health records (EHRs) and other digital tools, healthcare providers are able to automate the process of collecting, storing, and sharing patient data. 

However, the integration of EHR systems in healthcare networks has not met initial expectations as they are perceived as inflexible, difficult to use, costly to customize, and built on older technologies. 

In this article, we will take a closer look at medical record automation and its features, benefits, and how better technologies could be implemented in healthcare organizations to address these issues and improve the overall effectiveness of EHR systems in healthcare networks.

What is medical record automation?

Medical document automation is  the use of technology to automate the creation, management, and distribution of medical documents. This can include 

In 2023, it was reported that doctors spend an average of 16 hours per week on administrative tasks such as paperwork.

Each year, healthcare organizations allocate approximately $2.1 billion towards managing data that is prone to errors and lacks efficiency. This is due to the high percentage of inaccuracies found in medical records, with 35% of the information being either missing or containing errors, 28% of records being duplicates and 15% having wrong or missing patient information.(Figure 1.)

Figure 1. Provider data Source: LexisNexis

The implementation of more comprehensive medical record automation solutions has been shown to result in significant cost and time savings for healthcare organizations. It is estimated that healthcare organizations can save up to $14 billion by implementing full automation for their administrative processes.

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There are plenty of technology solutions available to assist healthcare organizations in addressing the challenges posed by large amounts of digital data. According to our research mostly preferred ones include:

1. Automated charting software

Automated charting software helps to visualize data by automatically pulling relevant data and creating charts. The software uses algorithms to process and analyze the data, and then generates charts that provide insights and information. The process of pulling data and creating charts is the main intersection of automated charting software as the software is designed to streamline the process of visualizing data by automating the process of extracting, organizing, and presenting information in a clear and concise manner. The process of recording patient information is automated by using data from

Electronic health records

Laboratory results

Pharmacy records

This helps to reduce the time healthcare professionals spend on documentation and allows them to spend more time on patient care.

2. Robotic Process Automation (RPA) 

Gartner’s research predicted that by 2023, half of all U.S. healthcare providers will have invested in Robotic Process Automation (RPA).

This highlights the growing recognition of the potential benefits and efficiency gains that RPA can bring to the healthcare industry. Indeed, today most organizations prefer RPA which utilizes software bots to automate repetitive tasks such as

Automating Patient Registration and Appointment Scheduling: This includes the automation of inputting patient data, updating patient records and medical history, moving it to patient files, and scheduling relevant appointments in the EHR system. To achieve this, Natural Language Processing (NLP) is utilized to understand and interpret unstructured medical text, such as patient notes and medical reports, and convert it into structured data that can be easily analyzed and used by healthcare organizations.

Digitizing medical records: Intelligent document processing (IDP) allows for the preparation and integration of various documents, including health records and insurance claims, into a centralized storage system for future use.

Automating report management: RPA automates reporting  for billing payments and submissions. These reports can be used to track payments by provider, insurance carrier, and patient. RPA can be used to monitor payments and bills on a monthly basis, providing insight into the overall industry trends.

Compliance management: The implementation of RPA enables monitoring and documenting all regulatory processes, keeping them in an organized manner. This allows for quick and easy access during any unexpected or external audits.

3. Machine learning

AI can detect patterns in data to improve efficiency. For example, machine learning software can 

Alert potential errors in patient records 

Predict potential health risks or complications for individual patients, and alert healthcare providers to take preventative measures. 

Improve the accuracy of diagnosis by analyzing large amounts of data from patient records and identifying patterns that might be missed by human analysis alone. 

Benefits of medical record automation

Healthcare leaders can leverage medical record automation to achieve the following:

Streamline administrative tasks and cut costs by automating repetitive and time-consuming manual processes.

Accelerate processes such as triage by automating routine tasks.

Improve data accuracy, task consistency, and reporting in clinical settings by minimizing human error and implementing best practices.

Improves accessibility for patients and healthcare providers in case of a provider change, ensuring continuity of care. 

Boost staff productivity by automating low-level tasks, allowing them to focus on more complex activities.

Enhance patient care and experience by providing more accurate decisions, reducing costs, and increasing visibility across the entire patient record.

If you have any additional queries regarding medical record automation you can check our in depth article on intelligent automation in healthcare.

Do not hesitate to get in touch with us:

This article was drafted by former AIMultiple industry analyst Kübra İpek.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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5 Of The Top Reasons You Ought To Make An Ap Automation Investment

Generally, the abbreviation AP in business means accounts payable. This is usually different than the accounts receivable department, though some smaller companies can successfully combine the two.

Accounts payable is an area to which you need to dedicate significant resources because the IRS will look at it closely when tax time comes around.

These days, you can set up automated AP services if you have the right software. Usually, that’s SaaS, or software as a service. You pay a monthly fee to use a particular suite with some different useful features.

The other option is to keep things on paper. Companies are getting away from that model more and more, though. In this article, we’ll give you five compelling reasons you should consider switching over to AP automation.

You Won’t Have Any More Lost or Late Invoices

If you’re unsure how useful AP automation is, consider the lost or late invoice problem. If you’re still working with paper invoices, it’s easy to:

Misplace an invoice

Infuriate a customer because you can’t locate the invoice they gave you

Losing an invoice sends a customer the wrong message. It tells them you’re not as professional as a similar company. With AP automation, this situation is virtually impossible.

Also read: 7 Best Woocommerce Plugins to boost your Store you must know

AP Automation Makes Your Business Crisis-Proof

There are all kinds of crises that can take place that might harm your business. You could have:

A fire at your office complex

A malfunctioning sprinkler system that ruins all your paper files

It is this type of disaster that will make you think twice about retaining your paper filing system, both in your accounts payable department and elsewhere.

When you look at how devastating this sort of thing can be, it makes automation in as many areas as possible a no-brainer.

Your workforce might need to recover if something like this happens, but your records will be secure and untouched.

You Can Afford the IRS Total Transparency

There are likely going to be times when the IRS will need to look at your finances. In the past, before automation, that often meant a great deal of work on your part.

If you ever faced an audit because of some mistake you made, you’d have to come up with stacks and stacks of paper invoices to try and prove you were not doing anything underhanded.

With automated AP, things are so much easier and neater. You can track all the money that’s going out and account for every dollar. There should be no discrepancies, and if there are, you can track them down and account for them in much less time.

The IRS will appreciate this improved oversight, and you should be able to stay on good terms with them.

You May Not Need Brick-and-Mortar Offices Anymore

Gradually, more businesses are getting away from retaining physical locations. The pandemic has shown that many individuals can work from home, and remote work coupled with automation has been a hit with lots of companies.

If you automate your accounts payable along with as many of your other departments as possible, you might reach a point where you don’t need to rend or purchase office space at all.

Also read: How to Start An E-commerce Business From Scratch in 2023

You Can Stay Compliant

Depending on which business you’re in, you may want or need to keep your accounts payable records for several years after they’re relevant. If you haven’t automated yet, that means paper files taking up space in some physical location.

Technology has rendered this system obsolete. When you automate, all those files go into the cloud. There, you can easily access them if you need them for some reason.

In certain niches, you have to retain your financial records to stay compliant with various governing bodies. If you automate, all of that is going to be so much easier and simpler.

The amount of money and headaches you can save with AP automation make this something you should look into immediately if you haven’t done so already. Several companies offer software suite options, so find the one that will fit you best.

Susan

Susan is an avid writer, traveler, and overall enthusiast.

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Top 7 Benefits Of Warehouse Automation In 2023

In this article, we outline 7 reasons/benefits why warehouses should automate their processes through warehouse automation software that leverage process automation tools, such as RPA, NLP, and OCR. Specifically, we discuss how warehouse automation can lead to quicker order processing, more efficient inventory management, timely financial reporting, and more.

1. Quicker order processing

Integration between the warehouse and the company’s various digital sales channels (i.e., email, website, e-commerce platforms, etc.) could ensure a faster order processing. That is because the customer could place an order online, and thanks to RPA and API, the order’s data could be automatically exchanged with an inventory management or inventory control software that the warehouse uses.

A typical, rule-based steps for an automated order processing, thus, could look as such:

2. Seamless payment processing

For an order to be processed and the shipment to be initiated, the customer’s payment must first be cleared and the company’s financial books be reconciled.

Accounts receivable automation software streamlines the processing of payments and the issuing of invoices. In addition, the software automatically enters the data into the company’s accounting system. Finally, thanks to RPA, the software can be programmed to send a notification to the warehouse, saying that the customer’s payment has been processed and the item can be shipped.

The automation of payment processing takes all the guess work out of approximating:

When the receivables for a good can be collected

How much cash should be allocated to cover the DSO

Whether an item has been paid for before it’s shipped.

3. More transparent customer communication

Whether:

The item ordered is out of stock

The shipping is delayed

The customer’s payment has not been received

Or some other matter that requires a transparent and timely B2C or B2B communication

RPA bots can gather the information relevant to the case at hand. They will then immediately forward it to the customer in the form of a push notification or email.

The benefit is that the customer care representatives do not have to worry about handling such tasks manually, and can focus their attention on more value-driven tasks. Moreover, there will be no misunderstanding between the company and the customer, as the information relayed to the latter comes from the automated data that has been generated on a rule-based basis (i.e., “if payment for X is not cleared, then notify Y”).

4. Accurate scheduling

Scheduling the incoming and outgoing intermediary goods and finished articles can be automated. On the production side, precise scheduling for intermediary goods can result in an uninterrupted and smooth production process.

For instance, Toyota, the giant Japanese automotive company, orders its assembly parts on the “just-in-time” principle: The intermediary goods arrive at the production plant just in time to be assembled onto the cars’ chassis. In other words, Toyota keeps no excess inventory, and the continuity of its production is dependent on timely delivery.

For manufacturing companies that have a high and quick turnover rate of intermediary goods, an accurate scheduling timeline is of the utmost importance when it comes the company upholding its reputation and business continuity framework. Companies can automate the scheduling of the shipment of the intermediary goods and the products. Coupled with inventory management mentioned in point #5, RPA bots can monitor and report on the status of the shipments in pre-determined intervals.

Learn more about bill of materials (BOM) automation.

5. Efficient inventory management

An inventory management solution leverages RPA to take care of the following procedures:

It automatically double-check that the ordered good is in stock.

It automatically notices that the ordered good is not in stock. From there on, it sends an automated message to the customer relaying on the information to them, and places an order restock to the original vendor.

Whenever the inventory threshold for a certain item is low, it can automatically, and preemptively, place a restock order, thus avoiding the scenario in point #2 entirely (i.e., “if stock count for X is below Y, send restock order to vendor Z for W amount.”)

Lastly, by being integrated into the shipping schedules of the incoming orders from vendors, it can provide the business and the customers alike an accurate estimated time of delivery for the goods.

Learn more about inventory management.

6. Preemptive predictive maintenance

IoT sensors and RPA can be integrated holistically to undertake predictive maintenance of the pieces of equipment in the warehouse. For instance, the IoT sensors would note that the temperature of a pallet stacker has risen above the usual amount. It would then send a signal to the main IoT software, and thanks to the leveraging of RPA, the issue would then be relayed to the appropriate personnel, such as the foreman. Then the machinery would be tended to before its issue got worse and led to its decommissioning.

7. Timely reporting

We’ve previously discussed in length the use cases of RPA in reporting. In warehouses, RPA can be leveraged to create automated reports of the happenings within. Whether it’s the average time it took for an order to be processed, the customer complaints the company received, or any other matter that could be turned into action-driven insight, automated reporting can help analytics by automatically creating the appropriate reports.

The benefit of automating the reporting is that the reporting software will take care of the collecting and presenting information, and allows your employees to spend their time making sense of, and analyzing the data.

For more on RPA

We have curated a list of RPA use cases across other industries:

To get a comprehensive overview of RPA, download our whitepaper below:

And if you believe your business would benefit from adopting RPA, head over to our RPA software hub, where you will find data-driven list of vendors.

We will help you choose the right RPA tool for your business:

He primarily writes about RPA and process automation, MSPs, Ordinal Inscriptions, IoT, and to jazz it up a bit, sometimes FinTech.

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5 Reasons Why Celebrities Love Vaping

Lindsay Lohan, Johnny Depp, Katherine Heigl, Leonardo DiCaprio, and Katy Perry are just some of the celebrities who have been spotted with vapes in their hands in recent years, so below, we thought we’d put together some of the reasons why celebrities love to vape…

It’s better for their health

Perhaps the most obvious benefit to vaping is that it’s better for your health than traditional cigarettes which are packed with tar that can cause lung and other cancers. Research from the FDA suggests that vaping does 95% less damage than traditional tobacco – which is great for celebrities who are obsessed with their health but still want to get their smoking fix. The main reason is that there’s no burning, and so harmful substances are not released.

For musicians like Katy Perry, vaping is important for maintaining a career. We all know that smoking can make your voice raspy, scratchy and rough as well as decrease your singing range and cause breathiness, weaken your voice and reduce pitch and accuracy. That’s a lot of downsides! Vaping is considered much safer than smoking with less of an effect on your voice, which is great for singers who want to light up quickly before they take to the stage!

It’s cheaper

Okay, so this point won’t affect celebrities as much as it will us ordinary people, but we know that some of our favorite singers are frugal with their money.Smoking is an expensive habit, and the average price of a packet of cigarettes has been increasing year on year as brands pass on taxes and falling to consumers.

Vaping, on the other hand, is considerably cheaper and allows you to get your fix without dropping $20 every couple of days.Indeed, a single pod of e-liquid is equivalent to around two packs of cigarettes but costs just a fraction of that.

It’s natural and doesn’t smell

When you purchase e-liquid from companies such as MOTI, you can benefit from high-quality natural ingredients such as natural fruit and vegetable glycerin, which are not only much healthier than harmful toxins and chemicals but much better for your nose! For celebrities who are always out on public appearances or meeting fans at a meet and greet, vaping means that they don’t have to worry about freshening their breath or spraying more perfume to mask the smell of cigarettes – vaping is a cleaner habit without the nasty smell.

What’s more, vaping does not cause yellowing to your teeth or fingers, which is another common side effect amongst those who smoke. You won’t find tar, carbon monoxide, and suspended particulates in your favorite vaping liquid – the ‘enemies’ of any vain celebrity! But you will find delicious fragrances and flavors!

Sophistication

Nothing says glamor like someone sucking on a cigarette. Not! We’ve all seen the memes – the truth is that smoking is a pretty dirty habit, and people who smoke often age prematurely and look unsightly when they’re lighting up. Smoking can also be a major turn-off, which is not good news for celebrities who are trying to impress record executives or find a new date at an awards show.

Vaping is the more sophisticated way to smoke – and for celebrities who care about their appearance and the way they’re portrayed to the world – that’s important. Perhaps one of the best things about vaping is that you can put your vape in your pocket or purse and smoke whenever you feel the need. And as vaping is allowed in some indoor venues (particularly behind the scenes for celebrities), it’s a super convenient way to smoke.

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Top 8 Types Of Accounting And In

blog / Finance Top 8 Types of Accounting: What are the In-Demand Jobs in this Field?

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Around 136,400 job openings in financial accounting are projected annually in the U.S., and that is not surprising. After all, accounting is a crucial and fundamental business function that involves all financial transactions and activities, such as classifying, recording, and summarizing relevant information to provide accurate reports. According to the United States Bureau of Labor Statistics (BLS), the employment of auditors and accountants is expected to grow by 6% from 2023 to 2031. That is why it is necessary to have a clear understanding of the types of accounting to leverage different job opportunities. Let’s dive deeper into the importance of accounting, its different types, and the career paths you can follow in this field. 

Why is Accounting Important?

Accounting is important because it plays a significant role in the functioning of different organizations, businesses, and governments. Here is a breakdown of points that will further help you understand the relevance of accounting. 

Record-Keeping

Accounting is responsible for maintaining accurate records of financial transactions. It ensures compliance with laws and regulations, and provides a clear picture of the company’s financial status. It also helps ensure that a company can effectively manage its finances and make informed business decisions.

Planning and Budgeting

Accounting information is used to develop plans and budgets for the future. It helps businesses identify their strengths and weaknesses and make informed decisions while investing their resources.

The process also helps forecast and allocate financial resources to achieve organizational goals. It involves comparing actual results with the budget results and addressing the variances to overcome loopholes.

Tax Compliance

Accounting provides relevant financial information to accurately calculate and report taxes. It aids in tax compliance that involves the process of meeting all legal requirements for paying taxes to the government authorities. 

Decision-Making

The financial information can be used to make important business decisions about revenue, expenses, and investments. It allows managers to identify opportunities for growth and improvement, and make strategic decisions about resource-allocation.

The Different Types of Accounting

Accounting is a broad field, and you can choose from a variety of options based on your interests and career goals. The most common types of accounting include:

Financial Accounting

Definition 

Financial accounting records and monitors transactions through relevant statements. 

Explanation 

Financial accountants prepare financial statements such as balance sheets, income, and cash flow statements to perform this type of accounting. 

The process is conducted as per the Generally Accepted Accounting Principles (GAAP) rules set by the Financial Accounting Standards Board (FASB).

The primary importance of financial accounting is to provide an authentic overview of company performance to attract investors and stakeholders from outside the organization.

Principles 

Accrual:

All costs should be recorded as incurred instead of linking the costs to cash flow.

Full disclosure:

The company’s financial reports must contain all pertinent information.

Conservatism:

All liabilities and expenditures should be declared as soon as possible. 

2. Government Accounting

Definition

Government accounting aids in recording, analyzing, and interpreting financial transactions of the local, state, and federal governments.

Explanation 

This accounting type involves complying with the rules set by the Governmental Accounting Standards Board (GASB) for local and state governments.

For the federal government, the policies are set by the Federal Accounting Standards Advisory Board (FASAB).

A government accountant keeps track of public funds entering government accounts and makes necessary adjustments to the government’s budget proposal for efficient fund allocation. 

Principles 

3. Cost Accounting

Definition 

Cost accounting refers to the process of determining the net cost generated by an organization after evaluating all of the company’s assets and obligations. 

Explanation 

The primary aim of cost accounting is to identify key business areas where costs can be reduced to increase profitability.

Cost accountants are responsible for analyzing costs, developing cost estimates, and creating budgets. 

By monitoring variable and fixed costs, these professionals align the final output with the cost to produce the product. 

Principles 

Charge of cost only after its incurrence:

The unit cost should reflect expenditures that have actually been made. For instance, while an item is being produced, unit costs should not be included in selling costs.

Unusual costs should be excluded from cost accounts:

All costs incurred for unusual reasons (such as theft or negligence) shouldn’t be taken into account when calculating the unit cost.

Public Accounting

Definition 

Public accounting refers to the practice of offering accounting, taxation, and audit consultancy services to different clients such as individuals, commercial businesses, and government agencies. 

Explanation 

The goal of providing public accounting services is to ensure transparency and accuracy of the client’s financial statements.

Public accountants must clear the Certified Public Accountant (CPA) examination to obtain the license needed to practice public accounting in the U.S. 

Principles 

Going concern concept:

If the financial reports are prepared by adhering to the principle of going concern, then businesses can continue to function for a limited time period, usually 12 months from the start of operations.

Matching principle:

This governs how expenses and revenues are reported and reflected in the same financial statements.

5. Tax Accounting

Definition 

Tax accounting refers to the process of preparing tax returns and ensuring compliance with tax laws and regulations for businesses.   

Explanation

Tax accounting differs from other types of accounting in the sense that it takes government credits, revenue, and deductions into account when calculating a company’s taxable income.

Taxable income is always fluctuating and is primarily dependent on the company’s revenue. 

The primary responsibility of tax accountants is to ensure that businesses remain compliant with the Internal Revenue Code (IRC) while filing tax documents annually. 

Principles 

Consistency in accounting standards:

Proper consistency in accounting methods should be maintained for all taxpayers.

Tax-related transactions:

This ensures that all transactions that are taken into consideration are tax related.

Government-regulated year of assessment:

The year of assessment to be followed while filing tax documents is set forth by the government.

6. Managerial Accounting

Definition

Managerial accounting involves providing financial information to internal stakeholders, such as managers and employees, to help them make informed decisions. 

Explanation

The primary responsibility of ​​managerial accountants is to analyze and create a budget to meet the short- and long-term goals of the organization.

They also monitor the past financial performance of the company in order to make predictions about future performance. 

Principles 

Principles of analogy:

This principle offers insights that help make forecasts and business-related decisions. 

Principle of casualty:

Model business expenditures based on the relationship between the input and output of the resources used to create products and services.

7. Forensic Accounting

Definition 

Forensic accounting refers to the process of investigating the financial records of individuals and companies.

Explanation 

The goal of forensic accounting is to compile all relevant financial documents to accurately and comprehensively account for all transactions in financial statements.

Detect financial fraud and resolve disputes related to situations such as divorce, money laundering, and gambling. 

Principles

Independence and neutrality:

A professional in forensic accounting must be independent and unbiased in appearance and mentality.

Integrity and objectivity:

They must be accurate, ethical, and fair in all decisions.

8. Auditing

Definition 

Auditing is essentially a financial check-up where an auditor investigates the financial records of a business.

Explanation

The primary goal of auditing is to ensure that all the financial records of a business are accurate and compliant with applicable regulations.

The benefit of conducting audits is that it provides investors reasonable confidence in a company’s honesty and integrity 

Principles

Audit evidence:

It is the auditor’s duty to compile enough information to back up their conclusions in the audit report.

Confidentiality:

Auditors must maintain confidentiality if they encounter sensitive information about organizational finances and clients during the auditing process.

ALSO READ: What is Financial Analytics? Why is it Useful for Businesses?

Career Paths in Accounting

Some of the most common career paths in accounting include:

1. Staff Accountant

Staff accountants are responsible for performing routine accounting tasks, such as preparing financial statements, reconciling accounts, and filing tax returns. They can work in-house at a private company or a public accounting firm.

Average annual remuneration: $60,134

2. Financial Analyst

Financial analysts implement accounting standards to help businesses make informed decisions. They can work in-house at a company or at a financial institution and specialize in areas such as budgeting, forecasting, or investment analysis.

Average annual remuneration: $76,605

3. Audit Manager

Audit managers are responsible for leading teams of auditors in performing independent financial audits. They can work at a public accounting firm or at the internal audit department of a business.

Average annual remuneration: $114,779

4. Financial Controller

Financial controllers are responsible for the overall financial management of a business or organization. They manage budgets, financial planning, and financial reporting.

Average annual remuneration: $136,935

5. Chief Financial Officer

Chief Financial Officers (CFOs) are responsible for designing the financial strategy of an organization. They conduct financial planning and analysis, budgeting, and financial reporting.

Average annual remuneration: $176,329 

6. Tax Professional

Tax professionals are responsible for preparing and filing tax returns and ensuring compliance with tax laws and regulations. They work in-house at a business, at a public accounting firm, or as self-employed consultants.

Average annual remuneration: $43,145

7. Forensic Accountant

Forensic accountants use accounting and financial analysis techniques to detect and investigate financial fraud. They work in-house at a business, at a public accounting firm, or as part of a government agency.

Average annual remuneration: $67,952

Note: All salaries are specific to the U.S.

ALSO READ: Explore These Top 8 In-Demand High-Paying Jobs in Fintech

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By Rupam Deb 

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