A professional tax accountant is a multi-tasker, as he supports the top management in taking some major decisions. In this way, he keeps the management on toes all the time by providing them the runtime and periodic information about the business, so they can change or update the business operations and activities during and at the end of the financial period. Overall, there are four major duties of a tax accountant NYC in a business firm, and we are discussing all of them briefly here.
Top Four Duties of an Tax Accountant
The following are the main duties of an tax accountant:
- Record-keeping and Bookkeeping Services: To keep the business operations and activities smooth and efficient, recordkeeping and bookkeeping are necessary, and an
tax accountant NYC has the major responsibility to manage this system with full command and control.
- Tax Compliance: Tax compliance is another major task, and the accounting department also takes care of it. The basic responsibility here is to keep the tax preparation as per the tax laws.
- Financial Reporting: It helps the management take necessary decisions according to the business internal situation and external factors that are also the responsibility of the chief accountant.
- Internal Audit and Risk Management: The fourth major task of an tax accountant is to keep an eye on internal audits, analyze it, identify risks, and manage them in such a way that the business operations keep running without disturbance. Another major role that is considered a pillar for an organization is management accounting.
It helps businesses take a clear picture of assets, liabilities, capital, cash, stock, and profit/ loss by implementing some tax accounting procedures and mathematical calculations. When the actual situation comes in front of the management, they can take immediate, and sometimes, bold decisions to control the situation.
However, the most important role of a professional tax accountant is to help an organization manage internal audits and prepare it to face uncertain situations that may arise in the future. Moreover, it is an accountant, who keeps them aware of an organization about some uncertain situations through his risk management skills.
It is an additional but compulsory requirement, as, without risk management, the management cannot oversee the actual situation of the business without taking necessary measures regarding the internal audit.
Risk Management Accounting as a Whole
Accessing all positive and negative risks in which the company’s business practices are involved, is risk management accounting. The objective of a risk management tax accountant in New York is to address these risks, minimize or eliminate them to control the damages, which can affect the company’s resources.
There are numerous types of business practices that may create uncertain situations. Maybe, these activities and operations look normal, but in many cases, the companies are encountering some unavoidable risks.
We are presenting all those business operations that can be risky at some level here:
Let us list down all Malfunctioning of equipment
➡Breaking down the equipment
➡Becoming a Loan Defaulter
Types of Risks:
While talking about the risks, there are two types, unavoidable and avoidable. The best tax accountants in NYC know that some of these risks are acceptable. We can find numerous reasons that allow us to accept these risks, but overall, the concept behind it is known as risk tolerance. However, when we decide to eliminate these risks, as an tax accountant in New York, we need to weigh opportunity and tradeoff costs. To identify all the types, discussed above, we need to break them into small categories. In the upcoming section, we are discussing these categories separately:
- Financial Risks: Under this category, we include all those factors that create financial stability. It is a general concept that the management decisions and practices are involved in it. Sometimes, the management decides to invest in those areas, where the chances of success are minimal. Some managements are poor in assigning resources for tasks. These practices may raise financial risks.
- Human Risks: In the case of finding judgmental and human errors during business activities or operational procedures, we will discuss them in human risks. The involvement of the human element is common in business, and management accounting keeps the parameters on to calculate them and control accordingly. These errors can affect the overall performance of the company, and sometimes, the company can face the loss of key workers or employees.
- Environmental Risks: The losses due to natural disasters are not in control of the company. Sometimes, thunderstorms, floods, earthquakes, and other natural disasters may spoil your efforts. In some cases, power outrage and accidental fire in the units may damage your business activities. To keep these outside influences under observations, the accountants discuss them under environmental risks. To achieve this target, they have emergency protocols and natural disaster plans. This planning help control the damages to the maximum level.
- Physical Risk: In the case of losing physical losses, the accountants consider them as physical risks. These losses can be in the form of any theft, drop in the prices of any land, building, or equipment, overall economic situations, and equipment miscalculation.
What does IFAS Expect From the Accountants?
According to IFAC, the accountants need to take responsibility for a few tasks. We can elaborate in two key points here:
- The first responsibility of the accounting team is to guide the management about their decisions in a fairway. They need to provide information about the leadership goals and objectives in such a way that they may get to know whether they can achieve them or not.
- They also give suggestions through which the leadership can get success in achieving the business objectives.
- The second responsibility is to forecast the chances of success or failure in implementing the strategy. They also have the responsibility to divide the strategy into phases and tell the leadership about the short-term goals as well.
- In this particular way, the CFO provides complete information about the strategy and tactics that need to follow in the future.
The best NYC tax accountants are also involved in developing this strategy because of their estimations regarding taxing and tax laws. It will clear the picture in monetary terms as well after submitting the tax.
The Overall Role of an Accountant in Risk Management
The key responsibility of a professional accountant is to develop an internal control program that is also helpful in reducing and managing risks.
In the case of having a team of accountants, some staff manages basic tasks. The accounting managers need to take care of risk management, internal auditing, monitoring of risk management activities, take necessary actions in a state of uncertain situations, and implementing new strategies for improving business operations in an organization.
The managers also need to organize training sessions for the lower staff, so they can develop a familiarity with the latest standards, technologies, tools, skills, rules, and languages that are necessary to manage all the financial operations and risk management processes. The tax accountant NYC are the frontline force that help leaders consider all the circumstances, uncertainty levels, and approach towards the target before taking final decisions.
In this way, they become the strategists to the top management to help achieve all organizational goals and objectives.
How to Become a Good Risk Manager?
For an accounting professional, you need to complete the professional training program. Most training programs related to accounting complete in four to five years. Under this training, numerous topics are covered like financial accounting, cost and management accounting, auditing, financial reporting, mathematics and statistics, corporate and major laws related to business, economics, management and marketing, business communication, monitoring and handling, risk management, cost-benefit analysis, international businesses, financial statements, capital management, management accounting, and decision making.
During these four years, you also pass through some general studies. However, you need to pass them in the first two years. After that, you study accounting strictly. After completing this training program, you can become an accountant. However, to become a professional risk manager, you need to go for a post-graduation program. Specialization in managerial accounting or business administration also helps you achieve your goal to become a risk management expert.
How to Prove Your Capability as a Risk Manager?
Professional experience helps you achieve your target. However, before that, you must have credentials that show your commitment to the field, you have chosen. Therefore, if you want to prove yourself as a risk manager, you must be a Certified Management Accountant. This qualification will prove that you have the skills to manage the internal audit. It also proves that you understand the management of resources as well. The most specific qualification for a risk manager is the certification regarding cost and management accounting.
Qualify for this Xertification
To qualify for this certification, the minimum qualification, which is required, is a Bachelor’s degree. In the past, the accounting profession was not as technical as it is today. Now, the accounting professionals not only crunch the numbers but also need to be a strategic planner.
They not only provide bookkeeping, payroll, and costing service, but also participate in anticipating future scenarios, suggesting policy and strategic changes, and taking part in decision making. Overall, the accountants are the strategic partners of the businesses because they become responsible for all the situations after suggesting changes in the policies and plans for business improvement.
What are the Benefits, an Organization Can Achieve with the Support of a Risk Manager?
As described earlier, risk management helps organizations identify the risks and find ways to manage them through policy, structural, and operational changes.
Identification of risks at all levels and types is the key responsibility of a risk manager. Moreover, if such a professional in your organization, you, as a business owner, can expect the unexpected.
Along with this identification, if you find the solution against the uncertain situations, it will be a huge boost to your organization. The risk managers will also keep you aware of all the unexpected and pretended results that may occur soon.
If you have information about all the future events that can damage your business devastatingly, you can prepare your business to face them.
Overall, by engaging risk management accounting in your organization, you are minimizing the probability, as you will find yourself ready to face unexpected losses. It is what your target for improving the organizational structure, business operations, and decision making. However, the most important thing is the decision of hiring such a professional.
An experienced and skilled candidate will be suitable. In the case of saving money by hiring a low-profile candidate, you should be ready to face huge losses that will be obvious due to the underdeveloped plans for managing risks.
Risk management requires an accountant to comprehend financial systems and procedures, think critically, pay attention to detail, and identify and assess risks. To communicate their findings and recommendations to management, they must have great communication skills.
An accountant assesses, plans, and controls financial risks for an organization. They can also evaluate financial systems and processes for hazards and advise on risk management policies.
An accountant engaging in risk management improves financial controls, increases financial risk awareness, and reduces financial losses and errors. An accountant can also help a corporation manage financial risks by providing risk management advice.