Being an accountant and auditor respectively comes with its set of specific skills and technicalities that you would need to master. Both professions have been known to be intertwined and linked all the time. But did you know that both professions vary in many ways even though it may seem similar to someone who is not so sure about the differences in both professions? In this article, we will be discussing the different ways that an accountant and auditor varies in their jobs and which you should contact for your different needs.
What do accountants do?
Before understanding the differences between accountants and auditors, you must first understand the job scope of an accountant and an auditor respectively. Accountants record, organise as well as conduct an analysis of all the financial matters and information of your business. Financial records such as your business transactions, revenue, expenses and all the profit that your company makes is managed by the accountant. An accountant is technically the first step that your company takes or engages to ensure that your financial records are in order.
An accountant also can help you with consulting chart of accounts and even go through your unaudited financial statements requirements as well. There are many things that you can discuss with your accountant different ways to organise your financial records in a way that is efficient for the auditor to look through in the future with your chart of accounts and many other ways.
What is an auditor’s job scope?
Although it may seem similar to an accountant, an auditor comes as the next step in your financial year journey as a company. After the accountant has done all the accounting for the year and it is completed, the auditor’s role is to ensure that everything is done legally and there are no shady transactions happening within the company. Auditors can detect discrepancies in a company’s financial audit and they can also tell the company in what aspects the company is thriving in.
An auditor can also help a company in other ways. Sitting down and having a conversation with your company’s auditor can really show you and teach you which aspects of your company seems to be doing well while also discussing about the areas that your company can work on during the next financial year. One of the key ways that auditors work is to look out for different policies and procedures that the company is carrying out during the financial year and making sure that everything is legal and in compliance with the law. They can also help you to improve the different processes that your company does and make it more efficient by discussing ways that your company is able to gain more revenue from in the event that your business might tanking in finances for that year.
Key differences between an accountant and auditor
One of the stark differences would have to be the role they play for the company. An accountant ensures that the financial records for the company are analysed properly and organised correctly as well. They also record all the different financial records for the company and make sure that everything is up to date before it goes through an audit. Specialised accountants would also have to go through a board exam to ensure that they are able to work in the finance industry.
Auditors have the role of making sure that all the financial records of the company are accounted for legally. They also help to make the processes that the company is currently doing and modifying it to make it more efficient so that the company is able to benefit and grow financially.
Although at first glance, there may be many similarities that come with being an accountant or auditor, there are many differences that cannot be seen at first glance. Both professions are skilled in different areas and you should understand what those differences are before engaging in outsourcing services.
Here at Tianlong Services, we provide outsource accounting in Singapore and bookkeeping services to small businesses and entrepreneurs. Contact us today and we will be happy to assist you and provide a consultation to discuss your business’ financial needs.