in simple terms, an accountant is the financial storyteller of a business or for an individual. their job is to track every dollar that comes in and goes out to make sure the story of the money is accurate, legal, and helpful for making decisions.
while many people think accountants only do taxes, their role is actually much broader.
## what they actually do
think of an accountant's work in three simple steps:
recording (the past): they keep a precise history of all financial transactions (buying supplies, paying employees, selling products).
reporting (the present): they organize that history into clear reports like balance sheets or profit & loss statements so owners know if they are actually making money.
advising (the future): they look at the data to warn about risks, find ways to save on taxes, and help plan budgets for the next year.
## the big three responsibilities
accuracy: making sure no numbers are missing and that the bank balance matches the company's records (this is called reconciliation).
compliance: ensuring the business follows government laws and pays the correct amount of tax on time to avoid fines.
strategy: helping a business understand where it is wasting money and how it can grow faster.
## accountant vs. bookkeeper
people often confuse these two, but there is a key difference:
bookkeepers are the recorders. they focus on the daily task of entering data and keeping receipts organized.
accountants are the analyzers. they take the data from the bookkeeper and interpret what it means for the health of the business.