Accounting is crucial for companies to measure their performance in terms of profits and debts. There are various accounting roles, including clerks, staff accountants, supervisors, controllers, and bookkeepers. The highest position is the controller, who sets accounting policies and oversees all other roles. A formal degree is not always necessary, but some roles require professional accounting degrees or licenses.
Accounting is the way most companies keep track of their operating performance. Instead of using subjective measures to gauge performance, accounting allows for a direct measurement in terms of profits earned and money owed. There are many accounting roles in the business environment. Clerks, staff accountants, supervisors, and controllers are the most common roles in an accounting office. These people handle tasks such as accounts payable and receivable, posting journal entries, signing books of account and journals, establishing accounting policies, and creating financial directives for the company.
Working as an accountant does not necessarily require a formal college degree. People can obtain a position as a bookkeeper or accountant, which are often the lowest positions within an accounting office. Accounting clerks may post entries, review invoices, handle customer inquiries, reconcile accounts, or manage journals in the ledger. These accounting functions often need direct supervision by an individual who has a professional accounting degree and/or license. Bookkeepers and bookkeeping clerks may not be able to handle complex bookkeeping tasks because they do not have the educational background for this process.
Personnel accountants are the next level in terms of general accounting roles. Most organizations employ staff accountants to handle most of the financial transactions. Personnel accountants may post journal entries, create reconciliations, prepare financial statements, close the ledger, and prepare or complete any ad hoc projects given by supervisors and managers. While these tasks are very similar to those of an accountant, the difference comes from the perception between accounting roles. During an external audit, companies will graduate staff accountants and have a better chance of answering any questions related to their accountants’ ability to handle financial transactions.
Accounting roles also require a mid-level manager to oversee the accountants. Supervisors will often oversee bookkeepers and accounting clerks, while accounting managers will oversee an entire division of accountants. For example, a senior personnel accountant may act as a supervisor over personnel accountants, bookkeepers, or employees. Accounting managers will oversee an entire group or division of accountants, such as accounts payable, general ledger, fixed assets, or treasury analysts.
Controllers are often the highest position in an accounting office. A controller will set accounting policy for the office and oversee all actions of the other accounting roles. This position is also the link between internal and external communication. Auditors reviewing the company’s financial information will work with the controller to create the schedule and complete the process. Executives and higher level management will also report to the controller to prepare and review the financial statements of the organization, which represents the financial health of the company.
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