An Overview of Financial Accounting

[H. M. Nasim]

Financial accounting professionals are responsible for the public reporting of a company or organization's financial status. This work involves collecting and maintaining data, detecting trends and forecasting future needs. In addition, financial accountants prepare detailed statements and communicate financial information to company leaders and audiences that do not have an extensive accounting background.

Auditing and managerial accounting are related to financial accounting but differ in several ways. Auditors usually work with companies to review the reports created by financial accounting offices. Management accountants are primarily focused on providing the accounting services and communication within a company, such as accounts payable, accounts receivable and payroll.

Anyone interested in a financial accounting career will want to gain a solid understanding of several industry standards. The Generally Accepted Accounting Principles (GAAP) are a widely-accepted set of guidelines that assist with reporting procedures. The International Financial Reporting Standards (IFRS) help accountants create consistent and comparable financial statements for businesses across the globe. Skills with multiple types of financial reports are also required, including the ability to create accurate balance sheets, profit and loss statements, and cash flow forecasts.

FINANCIAL ACCOUNTING CAREERS
Financial accountants work in a wide range of industries, from corporate to nonprofit, and their responsibilities vary based on the type and size of the organization. Primary duties include preparing financial statements and reports, advising company leaders on investment practices and strategies, communicating a company's financial status with external audiences, and staying current on the latest economic trends affecting financial decisions. The following career profiles provide examples of financial accounting roles at all levels of employment.