Every year around April 15th, one profession in the United States comes into the spotlight more than any other. If you are an accountant, you are undoubtedly at the center of this sudden attention. The early part of the year up to mid-April is a busy time for an accountant as everyone prepares federal and state tax returns to send in to the government. But was does an accountant do for the other eight months of the year?
Accounting is a broad term that includes a wide variety of tasks and specialties, a much wider variety than just taxes. There are also a few different kinds of accountants who deal with different aspects of the financial world. The most common type of accountant is a Certified Public Accountant or CPA. A certified public accountant is licensed in the state of the CPA's residence to provide accounting and auditing services to the public and may be employed by a public accounting firm or self-employed.
A public accountant may also offer services including financial advisory, litigation support, tax services, government regulation advisement including things like arbitrage rebate regulations, etc. In order to receive a CPA license, a person must pass an exam given by the American Institute of Certified Public Accountants.
Another form of accountant is a Certified Internal Auditor or CIA. A certified internal auditor is certified by the Institute of Internal Auditors and their job is to verify the accuracy of a company's record keeping and accounts. They may also perform operational audits. In most cases internal auditors are employed by the company they are auditing.
A Certified Management Accountant is also another certification that an accountant may achieve. The certificate is given by the Institute of Management Accountants, which requires applicants to pass a rigorous four-part exam in order to meet the requirements for a certificate granting that person status as a certified management accountant. In most cases, a certified management accountant is employed directly to advise one company on financial planning, budgeting, corporate spending, and taxation compliance. A CMA does not often work with the public and therefore differs from a CPA.
An Accredited Business Accountant or ABA is another type of accounting. This accreditation is granted by the Accreditation Council for Accountancy and Taxation after the candidate passes a rigorous eight hour test. An ABA deals with small and mid-size businesses. They may also advise families and individuals.
Year round, each of these types of accountants helps manage the numbers that keep companies and individuals on the right financial course.