Characteristics of an Accountant

Every accountant worthy of their certification should be expected to thoroughly analyze and report financial records, but the most essential characteristics of an accountant extend beyond the bare minimum demands of the job. In addition to being financially literate, top-notch accountants must also possess a number of personal characteristics to ensure that they can provide the best possible quality of service.

1. Service-oriented Mindset

No matter how many numbers may be involved in the job, accounting is still primarily a people business. Accountants must not only be comfortable with financial calculations, but they must also have a certain level of finesse and enthusiasm in dealing with their clients as people. Accountants should look forward to directly interacting with their clients in order to build rapport while learning as much as possible.

In addition to being fully aware of all of the economic and industrial factors, accountants must also be fully invested in their client to learn as much possible; not only will this demonstrate genuine care for the client’s needs, but it will also make the accountant far better equipped to determine what courses of action will be the most relevant for their client’s specific needs.

2. Innovativeness

Just because an accountants trade is primarily in numbers doesn’t mean that there isn’t any room for creative thinking. The best accountants will never settle for cookie-cutter methods if there is an opportunity to develop a better solution.

Competent accountants will have the skill to implement unconventional yet effective approaches to problems that demand more than the textbook approach. The ability to intuitively formulate an out-of-the box strategy to deal with unique situations must first be developed with experience, but before that, an accountant must at least be willing to practice and strengthen their innovative capabilities.

3. Reliability and Trustworthiness

The intimate details that clients share with their accountants must never be leaked to third parties, neither intentionally nor accidentally. The client must be able have well-placed trust in their accountant’s ability and willingness to keep vital information confidential at all times; this is both a matter of professionalism and basic ethics. The impression that an accountant leaves on their client will likely color the impression that future clients have on them as well, which means that trustworthiness is essential for both the client’s safety and the accountant’s career.

4. Strong Organizational Skills

The best accountants will always be characterized by strong organizational skills. Every single bit of data and paperwork must be accounted for at all times, no matter how minor it may seem. Poor organizational skills will be the Achilles’ heel of even the most naturally brilliant and well-intentioned accountants in the field. Being well-organized ensures that accounts are always capable of quickly accessing any material they need, which optimizes productivity and frees up more time for the most important tasks at hand.

5. Vigilance

The state of the economy and nuances of tax law are subject to change at any time, so it is essential for an accountant to always be aware of the latest amendments. The fact that the field is constantly in flux is one of the primary reasons why an accountant’s expertise is necessary in the first place.

Even if the accountant is fully confident in their awareness of all of the fine details, they must always keep current with the field in order to ensure that their knowledge is still relevant and applicable. What might have been an airtight strategy months ago may no longer be viable in the current time, and a high-quality accountant must always be able to react to this scenario before it becomes an immediate problem.

The most important characteristics of an accountant are what will drive them to go above and beyond the call of duty. Innovativeness, reliability and organizational skills are what separate bare-minimum accountants from true professionals.

The exceptional accountant must possess two vital characteristics above all else: a genuine passion for their field that compels them to constantly keep up to date with the latest news, and a strong focus on providing each client with even better service than they expect. For the best in the industry, over-delivery is standard policy in accountancy.

Benefits of Becoming an Accountant

Pursuing a career as an accountant might be one of the best ways of investing in your education. All too often, graduates have celebrated their milestones of completing their associates, bachelors, masters, and even Ph.D. degrees without knowing whether or not the degree that they’ve worked so hard for will render a return on their investment.

Pursuing a career as an accountant might be one of the best ways of investing in your education. All too often, graduates have celebrated their milestones of completing their associates, bachelors, masters, and even Ph.D. degrees without knowing whether or not the degree that they’ve worked so hard for will render a return on their investment.

Getting a degree in accounting from FNU has many advantages. Here benefit of accountant :

Accountants Have a Better Understanding of Finances

After years of studying the art of managing money, accountants gain the type of knowledge many people are happy to pay for. Earning an accounting degree at FNU offers students a wide array of knowledge beyond ledger management and financial reporting; the FNU accounting curriculum also includes courses in areas such as micro and macroeconomics, business and tax law, corporate finance, spreadsheet analysis, banking and finance, management, and supervisory skills. These skills are applicable to any job profession, and this means that employers would greatly benefit from job candidates who possess these skill sets. Accounting skills can also be applied toward other professions such as financial planners, fund managers, banking specialists, and others.

The Growing Demand for Accountants

As previously mentioned, there are no guarantees that anyone will land a job once they have earned their degree, but it is worth noting that the demand for accountants consistently ranks high. Since accounting essentially entails managing money, it can be considered to be a major driving force of our economy. Every business needs at least one accounting professional to handle their finances; in some cases, large corporations will employ accounting departments with hundreds of employees at offices around the world. It is safe to assume that significant demand for accountants will continue in the 21st century and beyond.

Everyone needs accounting; the demand is always constant, spanning across all business and industrial sectors, thus creating job security along with career longevity. It is up to prospective accountants to take the first step and learn more about what FNU has to offer. The Bachelor of Science in Accounting program can be fully completed online; however, you can also take a blended approach that combines classroom education with internet courses. Students with full-time jobs can take evening classes at FNU campus locations in Hialeah and Miami, and they can also apply for financial aid. For more information about this FNU program, get in touch with one of our academic counselors.

Opportunities for Advancement

With the right kind of networking connections, an entry-level accountant may increase his or her salary potential within a year. With the right combination of college accounting skills plus continuing professional education, accountants can expand their options by pursuing specialized positions such as Budget Analyst, Auditor, Controller, Tax Accountant, Payroll Clerk, Certified Public Accountant, and even a Corporate Financial Officer. Additionally, the combination of accounting with other business skills will create an attractive resume that employers will certainly notice.

Having general knowledge of accounting principles provides a good foundation for advancing into higher positions. With positions such as Cost Accounting and Financial Planning and Analysis, it is important to know how reported figures are generated. Modern financial statements and reporting are more than just PowerPoint presentations; the finance sector is under pressure to become more strategic because this is what shareholders demand. Companies expect their accounting and finance departments to analyze, explain, and take action.

The Pay Range for Accountants is Competitive

Because of the nature of their profession, accountants typically begin their careers at enticing salary levels. The Bureau of Labor Statistics reported that the median annual wage for accountants and auditors was $70,500 in May 2018. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $43,650, and the highest 10 percent earned more than $122,840. These salary figures may vary depending on one’s regional location, whether the company is privately owned, public, or operated by the government. It is also likely that higher-paid salaries are offered in bigger metropolitan areas.

The Ability to Start Your Own Business

It is not uncommon for accounting professionals to become entrepreneurs; this often happens after years of on-the-job experience when accountants have developed a good amount of business contacts. Accountants may feel more comfortable after years of networking to use the contacts that they’ve developed to start their own business. Whether it’s consulting or specializing in tax accounting and representation, the options are endless when it comes to financial affairs.

Forbes magazine often lists accounting as one of the best for prospective college students, and this is likely because it is the type of profession that can hold its own in today’s job marketplace, and it is often recommended for people who live with disabilities because of easy accommodations. Even as a self-employed accountant, there is good potential to earn a great deal of income just because of the steady demand for money management.

Gaining a Better Understanding of Taxation and Business Law

A good accounting degree curriculum will include courses on business law as well as taxation, and this is what the FNU Bachelor of Science in Accounting program offers. Because of the personal, legal and business repercussions of breaking or neglecting tax laws, accountants must acquire some taxation knowledge. As part of FNU’s commitment to serving the South Florida community and maintaining its degree-granting accreditation with the Southern Association of Colleges and the Florida Commission for Independent Education, courses and programs are regularly evaluated for freshness and relevance; in the case of accounting, making sure students learn about taxation and business law topics is crucial.

What is a CPA and what do they do?

CPAs are many things. They are chief financial officers for Fortune 500 companies and advisors to small neighborhood businesses. They work for public accounting firms, both small and large. They are well-respected strategic business advisors and decision-makers. They act as consultants on many issues, including taxes and accounting.

A CPA, or Certified Public Accountant, is a trusted financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals. Whatever those goals-saving for a new home, opening a new office, or planning a multi-billion dollar merger-CPAs can help.

Getting your CPA certification opens the kinds of doors that can fast-track you into influential jobs in every industry. Whom do you think the FBI recruits to investigate criminal fraud? What profession is often a stepping-stone to holding positions like Chief Financial Officer (CFO) and Chief Executive Officer (CEO)? Who helps rock stars manage their money, and avoid going broke? View the career opportunities section.

What Are Recruiters Looking for in Accountants?

According to recruiters in the accounting industry, the most desirable candidates have experience working in public accounting for a large firm. But if you don’t have that, don’t let it deter you! There are many other skills and experiences that you can demonstrate to set yourself apart.

When interviewing for accounting roles specifically, it’s important to demonstrate a healthy mix of both technical acumen and soft skills. One of the biggest myths I hear about accountants is that they sit behind a computer for hours, looking at numbers and ridiculous formulas in Microsoft Excel with no human contact, ever. On the contrary: Accountants must demonstrate skills in a variety of areas to be successful in the job hunt, such as communication, client engagement, data analysis, and time management.

Here are the five main skills that I found most valuable as a recruiter:

• Written Communication: Hiring managers will want to know that your writing skills are on point—after all, you may be drafting audit reports, creating workpapers, developing and editing financial statements, and providing updates to your internal or external clients as needed.

• Verbal Communication: Strong verbal communication skills are important to your success in accounting as you’ll be speaking with clients, internal or external, in just about every aspect of your work.

• Time Management and Prioritization: Accountants take on a great variety of tasks, especially during month-end, quarter-end, and year-end accounting. Just in one day, you may be in and out of client meetings, drafting workpapers, reviewing financial documentation, and walking through your clients’ accounting processes. It’s important to be able to work well when there are many things going on at once and know how to organize your work so your tasks get done on time.

• Technical Experience: There’s no doubt that accounting is a pretty technical role. Aisha Holt, a corporate accounting recruiter at Tradesmen International, makes sure to gauge candidates’ experiences with various accounting tools and software. Accounting programs are used to prepare financial statements, make journal entries, perform account reconciliations, and complete other important accounting procedures. You’ll find yourself working with these tools every single day, so recruiters want to see that you’re knowledgeable and up-to-date on the latest emerging technologies of the profession.

• Attention to Detail: Maintaining accurate reporting with zero errors is crucial in accounting. Can you imagine the financial implications if an account was overstated or understated by $1 million dollars and an auditor didn’t pick up on the error? The work of an accountant is to maintain high integrity, as the public is dependent on ethical reporting, and there are also a slew of regulations that accountants must uphold. As such, candidates need to show that they do sweat the small stuff and aren’t likely to make or miss an error that leads to a massive loss.

How do you avoid payroll errors?

Managing payroll can be one of the most time consuming and error-prone challenges facing business owners today. With labor regulations and litigations on the rise, payroll errors can also be costly to the business.

So, what can businesses do to avoid making mistakes on their payroll?

Ensure correct employee data

Payroll mistakes are just that — mistakes. And sometimes they occur because of incorrect employee onboarding information.

This is an easy fix. Create verification processes for both employees and managers to confirm that new staff have correctly entered their name, social security number, bank account deposit number, deductions for benefits), and have accurately filled out their information on their tax forms.

If you have the budget, an employee self-onboarding software can help your new employee complete paperwork electronically before the start date. And thanks to e-signatures, you’re able to ensure the employee has verified the information.

One reminder: Your employees might have life changes during their tenure, so have a process for staff to update their information. Things like changes in an employee’s address, marital status, or tax deductions can all impact payroll so build this into your plan.

Work with a compliance-first mindset

It’s late at night and you’ve had a long week. You just ran payroll and you’re struggling to reconcile taxes, employment regulations, and new requirements. How much advance notice were you supposed to give your employees of scheduling changes again?

Sound familiar?

Staying on top of all the laws can be tough, but it’s critical to eliminate unnecessary payroll mistakes.

Before a new team member starts their first shift, provide an estimate of where, when, and how often they’ll work. When schedules need to change, use compliance tools that automatically record schedule amendments, calculate the required predictability pay, and capture employee consent to the change.

Additionally, don’t forget to check with outside council if you have any questions about the complexities of your local, state, and federal mandates.

Eliminate human error

Common payroll mistakes are just human errors that any business owner can. Maybe you give an employee a bonus gift card and forget to record it on payroll. That well-intentioned award can actually negatively impact your employee if not listed in their pay. Manually processing payroll isn’t just time-consuming.

Think about all those hours spent pulling information from various sources, like your spreadsheets, timesheets, and banking information. Manual payroll can lead to miscalculations, oversights, and even missing key data. Plus, that makes record keeping and organization even harder.

Instead, use your favorite popular payroll software and integrate it into your time tracking software. With just a few clicks, you can run an accurate payroll. As an added bonus, these tools significantly reduce the time spent on managing employee schedules, timesheets, and payroll from hours to minutes per month.

Empower your employees

Preventing payroll mistakes (and potential future litigations) can be as simple as giving your employees the tools and processes needed to communicate with you and your managers about any payroll inaccuracies.

If your employees catch payroll discrepancies, have a formal process in place so they can report these issues and more importantly, you can quickly resolve the discrepancy before they become bigger problems. Use an easy communication tool or payroll discrepancy form where they can notify you or your managers on any timesheet or payroll errors.

Time and attendance tools can also allow your employees to review and verify their hours worked when they clock in and out which provides a layer of attestation protection for the business.

Increase security

As a manager, you’re looking for ways to keep both your staff and your business safe. And security is a big issue when it comes to payroll. Manually payroll leaves your business vulnerable to payroll fraud, like identity theft and misappropriation of funds. Fraudsters from an outside source can also steal employee tax and salary data if the business doesn’t have proper safeguards in place.

Using cloud-based solutions for time tracking integrated with payroll services can mitigate security risks, as these providers have advanced security measures in places such as two-factor authentication, data encryption, and security certifications to ensure your data is properly stored and protected. Additionally, most payroll providers have built-in security features that can alert your business of payroll fraud.

Not Checking Timecards for Mistakes

When employers are in a hurry to process payroll, they might neglect to do one very important thing before running the numbers: check timecards for mistakes. Incorrect timesheets is a very common payroll error and an easy one to avoid. Overpaying employees can, of course, be costly but underpaying employees can be too. According to the DOL, it is the employer’s responsibility to pay employees accurately.

Not Paying Employees for All the Time They Work

Some employers don’t realize that travel time and waiting time are compensable. This can turn into a big problem if employees do this frequently. Compensable means that it must be paid. Even though employees may not be doing their normal job during these times, they are “suffered to work” by their employers and must be paid for the time. Employers can pay employees minimum wage during this type of work time.

Missing deadlines

It is important to mark your payroll calendar and report and deposit and payroll taxes to federal and state agencies on time. Late deposits can result in hefty penalties and interest charges.

How to Fix It: Automating your payroll allows you to never miss a payday and lets you set pau schedules ahead of time so your payroll taxes are always on time so you avoid late payment penalties that add to big bucks and strain your already heavy workload.

Miscalculating overtime pay

Specific guidelines must be followed when determining overtime pay and miscalculations can be costly. Employee litigation has been a rising trend in recent years where workers have claimed to be misclassified and treated as “exempt” employees and therefore not entitled to overtime.

How to Fix It: When tracking work hours through our time and attendance platform all hours (including overtime) are recorded and collected on organized timesheets that make calculating hours simple. Our integrated, All-in-One platform unifies time tracking and payroll so everything is connected and nothing is ever missed.

Poor record keeping & data entry

Mismatched names and social security numbers are so common that the Social Security Administration set up a special telephone # to verify them. Every year, sloppy record-keeping and data entry mistakes, cost companies millions of dollars in both overpayments and government penalties.

How to Fix It: The Fingercheck self-onboarding features let new hires enter their personal information, so you don’t have any data entry whatsoever). This ensures employee data to be accurate. you simply enter all important records and data such as SSN# one time and save them securely on the cloud for easy, anytime access. Furthermore, our software is integrated with our Time & Attendance platform for all work hour records that are neatly organized and always accurate. Now that’s an All-in-One solution!

How Much Do Payroll Errors Cost A Small Business

Entrepreneur.com reports that payroll mistakes can cost approximately $4 to $9 each pay period. This does not include the amount of money that you may be overpaying your employees. Let’s say that you have an employee that make $15/hr and this employee is somehow gaining an additional hour of pay each week. With 52 weeks in a year, this increases that one employee’s salary by $780 per year. Keep in mind that this is only for one employee… this could be happening for all of your employees. You are basically giving away this money for free.

Then you have the trickle down effect. Your small business plans, schedules, purchases, hires, and has other investments that are set to a specific budget. If you are dipping into your payroll budget then guess what, you start to dip into other budgets as well. Everything will have to decrease in order for you to makeup for the payroll errors that are taking place. This could have been going on for years and you just don’t know it yet.

What Is a Tax Advisor and How Do You Choose One?

A tax advisor, also known as an enrolled tax agent or certified public accountant, is an accounting professional who specializes in the complex U.S. tax code, and who uses that knowledge to help taxpayers minimize their tax burden to Uncle Sam

Enrolled agents: Specially trained enrolled tax agents must pass a rigorous test and meet annual industry regulatory requirements to meet and sustain their professional credentials. Enrolled agents are licensed by the federal government, and are fully approved to represent clients before the I.R.S. They also provide general consumer and business tax services like preparing income taxes and offering specialized tax planning advice.

Certified public accounts (CPA): A certified public accountant shares many of the same attributes as an enrolled agent, but with a key distinction. While enrolled agents are licensed by the federal government, a CPA is licensed by the state where they set up shop, and must complete 150 hours of undergraduate and/or graduate school study and clear a CPA test given by the American Institute of CPA’s.

Professionally credentialed tax advisors can work in a variety of business models. Some run their own offices, some work for large corporations and tax-preparation chains, and some branch out to become certified financial planners. Most tax advisors who work with the general public charge by completed tax return, or on a service-by-service basis (like after handling an estate case or helping a customer start a small business.)

How to Find a Tax Advisor

No matter which type of tax advisor you choose, finding one isn’t difficult. You can either opt for word-of-mouth (asking co-workers, neighbors, family and friends for recommendations) or through industry trade groups.

Need someone to prepare your tax return?

There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don’t have a professional credential. You expect your preparer to be skilled in tax preparation and to accurately file your income tax return. You trust him or her with your most personal information. They know about your marriage, your income, your children and your social security numbers – the details of your financial life.

What kind of tax preparer do I need?

Anyone can be a paid tax return preparer as long as they have an IRS Preparer Tax Identification Number (PTIN). However, tax return preparers have differing levels of skills, education and expertise

How can I check a tax preparer’s credentials?

Our Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help you find preparers in your area who currently hold professional credentials recognized by the IRS, or who hold an Annual Filing Season Program Record of Completion. You can also check the professional organizations many tax preparers belong to.

What if I have a complaint about a tax preparer?

Tax return preparer fraud is among the list of common tax scams. The IRS provides tips on avoiding unscrupulous tax preparers  and is committed to investigating paid tax return preparers who act improperly.

Tax Planning for Beginners

Your tax refund is based on how much tax you pay in excess of the tax you owe. Basic tax planning strategies aimed at reducing the amount of your taxable income may increase the gap and thus your refund. In some cases, these strategies benefit you in other ways, offsetting future costs for health care or providing for retirement. Though some aspects of tax law can be complicated, even a beginner can focus on taxable income reduction

Planning your deduction method

When completing your tax return, you have a choice between standard or itemized tax deduction methods to determine taxable income. The standard deduction is a dollar amount set by the government that you can claim without accounting for the expenses that typically make up a taxpayer’s allowed deductions. Itemized deductions are actual expenditure you make for deductible expenses. Your actual deductible expenditures in a tax year may amount to more than the standard deduction amount. If that’s the case, you’ll likely pay less tax or get a larger refund using the itemized deduction method. However, the itemized method requires support in the form of receipts and other documents to demonstrate these amounts were actually spent. Consider a filing system to save receipts. Even if you choose to claim the standard deduction, having receipts on file will help you make an informed choice at tax time.

Retirement savings strategies

“Savings plans such as qualified individual retirement arrangements save you tax in the current year, investment earnings grow tax-free year to year, and provide income for retirement, when you may be taxed in a lower bracket,” says James Windsor, certified public accountant from Ann Arbor, Mich. Many taxpayers turn to retirement plans for both the tax reductions now and income later. With a tax rate of 25 percent, for example, contributing $15,000 to a retirement plan may save you $3,750 on your current tax return. Investment earnings on money in your account are not taxed until withdrawal. Maximizing your annual contributions to retirement accounts may be an effective cornerstone for your basic tax planning strategy.

Other tax-sheltered savings

While the size of allowable contributions to retirement plans is attractive to many taxpayers, there are other savings plans that also defer tax and, in some cases, help you avoid tax altogether.

Using tax credits

Another way to reduce the tax you owe is to use tax credits that apply to your situation. Refundable tax credits not only reduce your tax but can be used to create a surplus, resulting in a refund

mistakes to avoid when choosing a financial or tax adviser

If you have the knowledge to do your own financial planning, tax preparation and/or investing, you can choose whether or not to do it yourself. Part of that decision is determining the highest and best use of your time. Doing the job of a financial or tax adviser, at least doing it well, requires a significant commitment of time and energy, both of which are limited and precious. Most people would rather spend that time on family, travel, hobbies, or volunteer work. If you’re in that camp, and need to find a financial or tax adviser, here are some common mistakes people make—and how to avoid them.

Not making a decision

Indecision—i.e., choosing not to make a decision—is like selecting “none of the above” on a test question, and can often be an impediment to financial success. This is as true when choosing an adviser as it is to sound investing. Many people let too much money sit in cash, or fail to rebalance their investment portfolios periodically, because they are waiting for the “right” time to make a change. Indeed, an inability to act (due to procrastination or indecision) is one reason many people choose to hire a professional financial adviser, who can eliminate the emotional element and use a disciplined approach to make decisions and take action as needed.

A professional financial adviser or planner will actually help guide you through the decision-making process, assisting you in determining the approach and allocation that best suits your needs, circumstances and goals. Once you agree together on risk and strategy constraints, you can choose whether or not to delegate day-to-day purchase and sale decisions to that adviser (or firm) by giving them “discretionary” authority. Either way, they should help you quantify your needs, decide on a plan of action…and set it in motion.

Not asking for referrals

If you are serious about hiring a financial professional, ask for recommendations from people you respect, such as work colleagues, friends, and professionals in related industries (e.g., an estate-planning attorney or insurance agent). If the idea of asking for a referral makes you uncomfortable, here are some questions to help you get the information you need

Assuming what a title or credential means

While no one can call themselves a “CPA” without considerable education and testing, literally anyone licensed to sell financial products (insurance, mutual funds, etc.) can call themselves a “financial adviser” or “wealth manager.” Similarly, certain credentials can be obtained by simply spending a few hours or a weekend taking a course, whereas others, including “CPA” (Certified Public Accountant) and “CFP” (Certified Financial Planner practitioner), require many months or even years of study, rigorous testing, and ongoing continuing education.

What Is a Tax Advisor? Attributes to Look For

Since Betterment isn’t a tax advisor, we often suggest that customers see a tax advisor regarding certain issues or decisions. Who exactly is a tax advisor and how should you think about picking one?

Anyone with an IRS Prepare Tax Identification number can be legally paid to file tax returns on behalf of others. But merely having this number doesn’t tell you much about the tax preparer; tax preparers have different experience, skills, and expertise.

Tax season is now upon us. Now that you’ve probably received all of your tax forms, you may be facing a choice for how to proceed with filing: do it yourself with tax software or hire a professional tax advisor?

Although it certainly will be more expensive than using tax software, hiring a tax advisor makes sense for certain individuals, depending on their financial circumstances

Here are two important factors to consider when deciding if a tax advisor is right for you:

Time: Even with tax software guiding you, filing your taxes yourself can be time consuming. You’ll need to make sure that you’ve entered or imported the data from your tax forms correctly, which often takes at least several hours. We’ve written before about valuing your time here.

Complexity: The more complicated your financial situation, the more a tax advisor may be able to help you. Have partnership income, or income from an S corporation? Been subject to alternative minimum tax in past years? Received or exercised stock options this year? Tax software can handle these issues, but it will take time, and the risk of mistakes (and even an audit) increases.