For those who are looking forward to joining the world of banking and finance there is a big confusion. Before joining the world of money matters, they find it difficult to understand which way to go. Either it should be accounting, or it should be auditing. This question haunts many people who want to enter the world of finance. To understand the difference, it is important to understand that work they do and how they perform their duties. Once this difference is clarified the situation can become easier to handle. Here we have added some important points that would let you understand what the both doing are.
The job of the accountant is to handle the daily financial matters of any organization. He is responsible for doing several tasks whether it is estimating the taxes, or it is the matter of the outgoing payments, it is the accountant who is ultimately going to do this. The other jobs included in his description include payroll fixation, cash implementation, tax deduction, payments to the clients, and tallying the account books at the end of the fiscal year. There are further classifications of the accountants too according to their jobs and assignments. A general accountant is the one who can handle all accounting related tasks.
It can be stated that auditor is the manifestation of the accountant. Their responsibilities but are considerably different from the accountants. Many companies hire a single person to perform these duties but, in some organizations,, there are two people doing the tasks separately. The financial statement auditors Melbourne must go deep inside the money matters and find the wrongdoings, errors and the blunders that may occur in the financial setup.
After learning about the ins and outs of the two professions we can see the following differences in the two professionals.
- Accountants are usually properly hired members of the team. They are the members of an organization. On the other hand, in many cases the auditor can be hired from some external agency for an audit. An external auditor is more reliable and trustworthy. The financial experts suggest that an auditor without any connections with the organization can do the task more impressively. The accountant from the organization is better because he knows all the financial matters and the organizational needs as well. Hence, he would come with a far better solution.
- The accountants must perform their job on a regular basis. The auditor’s task is carried out after a set time period. It can be after certain number of months or at the end of the banking year.
- The accounting and auditing standards are different from one another. These standards are set internationally.
- A business cannot run without an accountant but getting an SMSF audit services Adelaide on hiring is an optional thing.
- Accountants make the financial profile and the auditors do the scrutiny of the financial records to make the things look better for the organization.
- The task of an accountant is limited to its parent organization while the auditors work for multiple clients.