Corporate Accounting (A Complete Guide) 

August 3, 2022

Corporate Accounting (A Complete Guide) 

Corporate accounting is one of the many specialties of accountants. It involves maintaining and managing financial records, tracking assets and liabilities, as well as other processes to ensure that a company is operating in accordance with its policies and objectives.

If you're interested in taking up a career in accounting or simply want to know more about corporate accounting in general, then this article will help you get started.

In this guide, we will go over everything you need to know about corporate accounting. We’ll give you a corporate accounting definition, explain what corporate accounting is, what corporate accountants do, and much more.

What is Corporate Accounting?

Corporate accounting is the process of keeping track of and reporting the financial activities of a company. It helps companies manage their assets, track their debts, and report their financial performance in a way that helps them stay in compliance with corporate policies and laws.

Because it involves managing a company’s assets and liabilities, it is similar to the process of small business accounting. In fact, the main difference between corporate accounting and small business accounting is that corporate accounting is done by accountants who are usually not involved in the management of the company itself.

Why Do Companies Need Corporate Accountants?

Companies need corporate accountants because they provide a number of services that help companies track their assets, liabilities, and financial performances.

For example, they might keep a record of all assets the company owns and track their current location. They might also keep a record of all liabilities that the company has and track their current location. They might also be responsible for reporting financial activities to the government or other organizations.

This can be important if you want to open a new business or expand your existing one. It is also important if you want to apply for loans or receive investments from other companies or investors. In fact, many corporations use corporate accountants to help them manage their finances, open new businesses, and apply for loans.

What Do Corporate Accountants Do?

Before they open their own practice, some corporate accountants might work as auditors, auditing a company’s books to make sure that they are accurate and in accordance with corporate policies.

After they open their own practice, some corporate accountants might focus on audit work, where they review financial records to make sure that they meet certain standards, such as being accurate and complete.

Others might specialize in financial planning, where they help companies determine the best course of action for the future, or in asset management, where they make sure that companies have good records of their current locations and can locate assets quickly and accurately if necessary.

What are the Different Types of Corporate Accounting?

There are a number of different practices that corporate accountants may be involved with depending on the size of the company and their specific role within the organization. Here are a few of the most common types of corporate accounting.

1. Financial Accounting: This type of accounting tracks the financial activities of a company, including assets, liabilities, revenues, expenses, and profits. 

 

2. General Management Accounting: This type of accounting tracks the management activities of a company, including decisions about asset management, employee salaries, and investments.

 

3. Investments and Financing: This type of accounting tracks the process of making investments, as well as the different sources of funding companies, might use.

 

4. Internal Control: This type of accounting refers to a type of auditing that looks at how well a company’s records comply with corporate policies, as well as how well the company’s records are managed.

There are certainly other types of corporate accounting functions, but these are the principal roles that corporate accountants typically find themselves engaged in when working with larger organizations.

What are Some Examples of Corporate Accounting?

There are many different examples of corporate accounting in practice. For instance, when a company buys and sells goods and services, purchases physical assets, and incurs expenses like the rent and operation of a building. It makes profits, incurs expenses, and incurs debts. All of this information needs to be recorded and reported.

Also, if a company is a start-up, it might not have many assets or debts, so it might be unprofitable. But over time, it will earn revenue and incur expenses; all of this needs to be recorded and reported to the IRS by a corporate accountant.

Another example would be if a company manufactures or sells products that are sold to consumers or other businesses. Depending on the type of business, the company may be engaged in wholesale, retail, or direct sales activities; again, this all falls into the domain of a certified corporate accountant.

Generally speaking, whichever type of business a company is engaged in, the process of recording and reporting its financial activities will be very similar and will require a corporate accountant to keep track of everything so that all of the records are accurate and available to investors and the IRS at tax time.  

Getting a job in Corporate Accounting

Before you can get a job as a corporate accountant, you’ll have to take some accounting courses at a community college, a two-year college, or a four-year college. You’ll also have to pass the Uniform Certified Public Accountant exam, which is offered by the American Institute of CPAs.

Once you've completed these requirements, you'll be eligible to apply for a job as a corporate accountant. Depending on the specific firm you're applying to, you may also have to pass a background check and complete other specific requirements, such as taking a course on the company's policies or having a certain amount of experience working in accounting.

Conclusion

Corporate accounting is a complicated field that involves managing assets, tracking liabilities, reporting financial activities, and reporting on compliance with corporate policies and laws.

After completing some accounting courses, you can enter the field of corporate accounting and make a career out of helping businesses comply with laws, manage their assets and liabilities, and report their financial activities.

To get a job in corporate accounting, you’ll first have to become certified as an accountant. You’ll also have to complete some courses, pass a test, and pass a background check.

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