- Since the beginning of time, there have been accountants. They helped keep track of the riches and debts of early societies and wealthy families. Financial records exist from many thousands of years ago. It wasn't until the time of the Renaissance, however, that accounting as a profession began to be recognized as a noble career. During this time, an increasingly wealthy European society was doing trade all over the world, and kept careful records of imports, exports, income and debts.
- Accountants serve two basic functions. There are public accountants who are available for hire by the public, government, or businesses. These professionals will prepare personal and corporate income taxes, perform audits, and help with bookkeeping, payroll, and corporate taxes. The second major group is the private accounting industry. These are individuals hired by independent firms to control that company's finances only. They will work with the company year round to maintain all financial records and reporting.
- Hiring an accountant offers a tremendous advantage over attempting to complete complex financial tasks on your own. First, these professionals are well versed in tax laws and corporate financial transparency laws. They can keep your personal or business taxes, payroll, and income taxes filed and organized, and can keep you from making mistakes that could result in audits or worse. In addition, they offer an outsider's stamp of confirmation that the financial information you are reporting is indeed true and correct. For corporations, this independent audit is required by law.
- There are many types of accountants who play many different roles. The most common is likely the income tax specialist, who is responsible for helping individuals and businesses compile, format, and report their tax information to the IRS. Another common type is the payroll specialist, who helps businesses pay their employees while properly maintaining income taxes, unemployment insurance, employee benefits and withholdings. Finally there is the auditing specialist. These individuals will confirm that financial data released by a business or corporation is indeed true and properly documented.
- The biggest misconception about accountants lies in the use of the word. In the classic sense, an accountant is one who has been certified to practice the trade by their country's governing body. In the US, accountants must pay an exam called the CPA exam. It requires vigorous preparation, often lasting several years, and only after completion can successful applicants use the title of "Certified Public Accountant." Many people who have not taken this exam are better described as bookkeepers or income tax preparers.
