Accountants & Bookkeeping in Los Angeles CA

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Four differences - financial activities of any enterprise can be divided into three main areas: accounting and taxes, management accounting and budgeting, financial analysis and financing of the enterprise. So, an accountant by definition, can not directly coordinate the three areas. His other entity, other tasks and even a different type of thinking. And this time not in any way can not put the blame to the latter. Just a financial manager and accountant - they are different people, different positions and different functions. This - an axiom which, by virtue of the same historical features of the development of our country, demanded proof. Consider the differences between the financial manager and accountant in detail.

Thus, professional competence. Accountant - a specialist working on the accounting system in accordance with applicable law. His task - on time and properly pay taxes on time and properly accountable to the public authorities, customers and partners, monitor the status of the enterprises and reduce the balance to a single indicator. This is - not an easy job, which requires serious training and expertise. Especially in this context, when the law changes with enviable regularity.

Finance Manager, in turn, should manage a company's working capital, cash flow planning and budgets for the enterprise, to develop financial strategies while constantly analyzing the real economic condition of the company, comparing it with national and even international market situation, and in time to make certain financial decisions to optimize the situation. In addition to those listed on the finance director is also required to provide reliable information about the current state of the company, forecast the future state of business and action plan for further development of the enterprise managers. The accountant simply unable to do so, because he did not have the right information.

Information competence, probably can be distinguished as a separate item the difference between an accountant and financial manager. The first forms the accounting and tax records on the basis of raw data and tax laws. These figures - the results of the enterprise for the period. That is, the figures yesterday. Forecasting future financial performance of companies on the basis of such data requires additional handling and special methods of analysis, knowledge of which does not lie in the area of competence of accountants.

Finance Manager works with document management accounting. That is in possession of information about the value resulting from the daily activities of the company, cash flow, sales, production and procurement, on business conditions in the context of the individual businesses, the strategic position of companies in the market and, most importantly, the current value of the company for the founders and owners. These data formed the basis of forecasts, budgets and strategies of the enterprise. And it is interested in the information manager of the company.

A simple example: a specific instruction from the accountant knows that a certain date the company is obliged to pay a certain amount. It is - its main job: to know when and how much should be transferred to the enterprise has not had any problems with the law. Chief Financial Officer, in turn, has information about the condition of the company to date, as well as future plans of the company, for example, take the credit. Therefore, it can decide: Does it make sense to pay that amount now, or are there options for extending the term to optimize the financial situation within the company. The latter, incidentally, can also be attributed to the distinctive feature of financial director: he is acquainted with the economic law, and may propose alternatives to the financial statements of the service, if that is necessary for the company.

Naturally, a man who worked as an accountant in the company may undertake the collection and analysis of management data and more. But this way he will have two large and equally important activities. In addition to the need for new education, a person needs more and a huge amount of extra time and energy. Specialists who fulfills both functions equally well, deserve respect, but, unfortunately, such a unit.

Objectives - the third feature of accountants and financial managers. The purpose of accounting is transparent and clear - that the financial activities of the enterprise tax legislation. Modern financial management, in turn, sets itself a global challenge - the financial manager should seek to maximize the market (economic) value of the company through growth in return on capital of the enterprise. Business - Wednesday post-Soviet space because of many factors yet to be fully confronted with the need for orientation is a priority for this purpose, but Western fund managers have long been working in this direction. Trend of development of the domestic economy also suggests leaving the stated objective of the financiers to the fore in the near future.

The difference between goals drags another important point which distinguishes the accountant of the financial manager - the type of thinking. Finance Manager, as people focused on financial results and maximizing the market value of the company, is constantly faced with the need to evaluate alternative capital market. To direct the company's resources in the most advantaged, it must make financial or investment decisions only taking into account all the risks and be sure to assess the potential profitability of alternative investments.

Bookkeeper do not need a score of alternatives. Rather, important for his quality work can be called pedantry and punctuality. Again, the fact that the accountant does not have an alternative way of thinking, in any case not a "minus". People performing different tasks in different ways think that is absolutely normal.


Ideal scheme - so, the axiom is proved. The functions of financial manager and accountant of the company, operating in a dynamic market economy, should be separated. One person could theoretically do both work, but it would involve considerable difficulties for him, and will not provide leaders the opportunity to obtain all the necessary information.

As mentioned above, the financial activities of the company is divided into three areas: accounting and taxes, management accounting and budgeting, financial analysis and financing of the enterprise. So, the ideal may be called the following scheme for the management of these areas: the chief accountant is engaged in accounting and taxes, planning, accounting and control assumes the financial manager and financial director manages funds across the enterprise based on analysis of data provided by managers and accountants. Often companies did not include a financial manager - chief financial officer is engaged in two directions. This - not so important as the separation of the accountant and financier.

Separation of the two functions, in addition to the needs of the enterprise, and the market demands. The importance of functions performed by the CFO is large enough to claim - from the quality of their performance depends on the situation of the company in the market. That is why CFOs in fact only one of the functional heads of departments of the company usually consists of the board of directors. And for business owners not engaged in enterprise management, financial director - the main person responsible for the profitability of his company. Therefore, a better person who performs such important functions, to deal exclusively with them.