Everything You Need to Know About Accounting & Finance Management

Accounting and finance planning is a discipline that studies the financial accounting and finance of business activities and financial transactions. The primary focus of accountants is to understand the movements of assets and liabilities and to forecast future financial performance. Financial accounting involves preparing financial statements, including changes in balances and debits and payments, profits and losses, debits and credits, expenses and revenues, and capital assets and liabilities. It must be based on reliable financial data from various sources. Accountants are responsible for reporting accounting and financial information to management, stakeholders, taxing authorities, shareholders, and the general public.

There are Two Types of Accountants

In the United Kingdom, accountants are required to be licensed by the accounting standards body of the United Kingdom. In general, there are two types of accountants. One is a financial advisor, the other a financial officer. Financial advisors advise company owners, managers, and employees on matters related to the company’s day-to-day operations. On the other hand, financial officers conduct economic research and analysis on behalf of their clients.

Three-Year Postgraduate Degree

To become a financial advisor, you will need to complete a three-year postgraduate degree at a university or college in England, Wales, Scotland, or Northern Ireland and pass the Certified Public Accountant (CPA) examination. After completing the exam, you can work as an independent financial advisor or for accounting firms and financial services companies. There are many accounting firms and financial services companies in the United Kingdom. Some accountants also work as consultants.

United Kingdom Tax Authority Exam for CPA

A CPA is an accountant who has passed the United Kingdom tax authority exam for CPA and the International Tax Expert (ITE) test. To become a CPA, financial planners must also complete a four-year university degree from an accredited university or college, pass the examinations for CPA, and be licensed by the Institute of Chartered Accountants of England and Wales (ICEA). The main reason financial planners become accountants is to apply for and take the CPA exam and become certified accountants. The CPA exam is globally known as the Professional Accountancy Examination.

Asset Management and Finance 

Asset Management and Finance refer to the business of buying and selling financial assets of different kinds. The accountants are responsible for valuing and installing property, inventories, equities, derivatives, financial instruments, and much more financial help to make profits. Their roles also include looking after the financial and accounting aspects of corporate restructuring. This process is known as the asset management accounting. Asset management accounting includes:

• Making investments and loans.
• Implementing financial solutions for businesses.
• Taking care of the company’s financial liabilities.

There is a lot of work involved in this process, and accounting graduates must have excellent mathematical skills, critical thinking, problem-solving skills, and the ability to communicate well.

Financial Analysis

Financial Analysis is concern with the systematic presentation of accounting principles and the methods by which these principles are arrive at. These principles are use to draw business decisions. The main areas that fall under financial analysis are General Ledger, Market Research, Business Plans, Economics, Debt and Finance, Personal and Commercial Capital Markets, Real Estate, and Risk. The top 10 accounting and finance certifications are BCS, CFA, CMA, FCA, MA, MSL, and AICPA. The four additional certifications are CFA Specialization in Global Financial Analysis & Policy, EBA Specialist, CMA Specialization in Dataflow Analysis, and AICPA Specialist.

Auditing 

Auditing is concerned with examining accounting and finance record and reviewing a firm’s procedures. The main objective is to detect accounting or financial problems and provide a system or method for correcting these problems. The major areas that fall under auditing are internal control measures, control standards, government regulation, fraud prevention, assurance programs, internal control for financial statements bookkeeping, and regulatory standards. The top 10 accounting standards are: PDS, IFRS-based Accounting Principles, U.S. GAAP (Generally Accepted Accounting Principles), ESG (Statistical Software International), GAAP (Generally Accepted Accounting Principles), IFRS-qualified accounting principles, ERP (Enterprise Resource Planning), RIA (Raymond Accounting), the U.S. generally accepted accounting principles, EU generally accepted accounting principles, Japan principles.

Financial Planner

A financial planner is a person who guides accountants in planning, organizing, managing, and analyzing their financial assets and liabilities. The planner’s function is to provide information to accountants for planning, organizing, managing, and investing the accountants’ clients’ financial resources. The financial planner performs the following functions:

• I am preparing the financial statements of an individual or a firm.
• We are maintaining the accounts and records of the economic activities of the client daily.
• Preparing the annual and the monthly balance sheet.
• Preparing the statement of cash flows for the financial year.
• I am preparing the forecasts of revenues and expenses.
• I am preparing the report of the client’s balance sheet and income and balance sheet.
• We are preparing the operating and capital expenditure plans of the clients.
• She is advising the accountants about client financing options.
• I am providing the accountant with the information needed for tax planning and preparing the annual financial reports.
• Advise the accountants about compliance requirements.

The duties of the financial planner also include giving timely notice to the accountants about their clients’ birth, death, or disablement. In addition, they must regularly evaluate the performance of the accountants and give their opinion on whether the accountant is managing the accounts properly.