Financial statements

Financial statements are the final product of accounting process. They provide information on financial condition of the company. Two common financial statements are the balance sheet and the income statement. The balance sheet shows the financial position of a company at one point in time while the income statement the financial performance of the company over a period of time. Financial statements allow interested parties to compare one organization to another and/or to compare accounting periods within one organization.

JOB OPPORTUNITIES IN ACCOUNTING

Accounting jobs can be grouped into major categories. Four major ac­counting job categories are used in this text.

1. Persons who plan, summarize, analyze, and interpret accounting infor­mation are called accountants.

2. Persons who do general accounting work plus some summarizing and analyzing are often called bookkeepers.

3. Persons who record, sort, and file accounting information are often called accounting clerks.

4. Persons who do general kinds of office tasks, including some accounting tasks, are called general office clerks.

Accountants

Accountants plan, summarize, analyze, and interpret financial informa­tion. They also prepare various accounting reports and assist owners and managers in making financial decisions. Accountants also supervise the work of other accounting workers, which includes checking the accuracy of recorded financial information.

Some accountants work as members of accounting firms that sell ac­counting services to other businesses. For example, a small gasoline station owner may not need a full-time accountant. The station owner or an em­ployee may do the day-to-day accounting tasks. These tasks include record­ing and summarizing basic accounting information. The owner may hire an accounting firm to help plan the accounting system and to analyze, report, and interpret the accounting information. A business selling accounting services to the general public is called a public accounting firm. Public accounting firms provide a variety of accounting services to other businesses and individuals. These accounting services may include all accounting tasks as well as planning an accounting system. Accounting firms may periodically check the accuracy of a business' records and prepare monthly or annual statements and reports.

Some accountants, known as private accountants, are employed by a single business. The work of private accountants is similar to that done by public accounting firms. However, a private accountant works for only one business.

Bookkeepers

Bookkeepers do general accounting work plus some summarizing and analyzing of accounting information. In some businesses, bookkeepers may supervise accounting clerks. In small to medium-size businesses, bookkeepers may also help owners and managers interpret accounting information. Many of these small to medium-size businesses may also employ a public accountant to plan an accounting system. However, a bookkeeper may do all of the remaining accounting tasks.

Bookkeepers in small firms may do additional general office work. Many businesses require that bookkeepers have filing and typing skills. These two office skills are needed for storing accounting records and preparing accounting reports.

Accounting clerks

Some businesses have large quantities of day-to-day accounting tasks to be done. These businesses will not want their highly trained accountants and bookkeepers doing the routine work. Instead, accounting clerks are assigned the day-to-day accounting tasks.

Accounting clerks record, sort, and file accounting information. Accounting clerks' job titles often show the accounting records on which they work. For example, a clerk working on payroll records is sometimes known as a payroll clerk. Other common job titles are accounts receivable clerk, inventory clerk, and vouchers clerk. These clerks usually work with only a small part of the total accounting activities. However, accounting clerks who know the total accounting system will understand the importance of the work being done. With accounting knowledge and some experience, accounting clerks may earn promotions to more responsible accounting positions.

General office clerks

General office clerks generally do some work related to accounting. A secretary may be in charge of a small cash fund. A typist may file accounting records and type accounting reports.

Accounting tasks performed by general office clerks must be done according to basic accounting concepts and procedures. All persons performing some accounting tasks need to understand a business' accounting system. General office clerks with knowledge of accounting will understand better the importance of the accounting tasks they do.