What is Financial Accounting?

Written By Accounting-Degree.org Staff

Financial accounting is a specialized area of the field that focuses on storing and recording a company’s financial transactions. If you are studying to become an accountant or you would simply like to learn more about the branches that exist, learning about this branch and the specialized tasks that you can expect to perform is critical. Find out more about your roles and responsibilities, the settings you may work in, and the demand projected for financial accountants.

What Does a Financial Accounting Professional Do?

All companies are required to record their financial data, draft financial statements and issue these statements for review from creditors and stakeholders. In order to keep up with all of the financial transaction that occur internally, there is a need for a team of highly trained and experienced financial accountants. The role in which the accountant plays will depend on what roles are assigned. According to Accounting Coach, some of the various financial tasks that a specialist in financial accounting will be responsible for include:

1. Keep organized and well-maintained records of financial statements
2. Maintains accounts payable and receivable
3. Classify financial records
4. Reconcile billing
5. File taxes for the lowest obligation
6. Issue statements on schedule for presentation to stakeholders and owners
7. Supervise state and federal tax payments

What Setting Does a Financial Accountant Work In?

As a financial accountant, you can expect to work directly for the company where you are managing records or for an accounting firm. If you are an employee or you work independently you will still typically work in the same setting. You will spend a majority of your days in the office in the accounting department working with other accountants, managers, and executives. If you do not work with a private corporation and decide that you want to work for a government agency, you may also work to identify white-collar crime and criminal acts. This is an subset of financial accounting that is known as forensic accounting. You will need additional training and a CPA credential before being considered for this type of occupation.

What is the Projected Demand for Professionals in Financial Accounting?

As long as the Internal Revenue Service exists there will be a need for financial accountants. While there is highly advanced software being developed that eliminates the need for bookkeepers and some accountants, there is always going to be a need for the human eye and the professional who can make well thought out recommendations and assist with strategy.

If you would like to enter a branch of accounting where the pay is fair and there is security, you will happy to learn that demand is expected to skyrocket for professionals with skills in auditing, financial analysis, business systems and compliance, according to the Accounting and Financial Women’s Alliance. As baby boomers take the plunge to retire demand will only grow. You must develop skills in desirable areas of accounting in order to meet the needs of the top-ranked employers.

Accounting has been a top-ranked profession for decades. As more and more companies are focused on reducing cost and tax obligations, the focus on hiring specialized financial accountants will only grow. Be sure to check the in-demand positions and develop the desirable skills that you need. After you find a role in financial accounting that is high in demand, get started with a formal degree program.