What is the work of an accountant in a company? Famous Job in [current_date format=’Y’]

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Accountant Work in Tally 2022 : Friends, if you are learning Tally or you have done B. Com and now you want to become an accountant but you do not know what is the work of an accountant? Which Entries an Accountant has to post in Tally, then you must read this article till the end because today I am going to tell you what is the work of an Accountant? Come let’s know the complete details.

What is the job of an accountant in a company? 

If you want to take an Accountant’s job in 2021 but you do not know which Entries an Accountant or Tally Operator has to post in the job, then friends, for detailed information about all these, I will give you a video and some Point is providing below, you follow them.

accountant

If you want to know how to become a successful accountant, then you can read this article- How to become an accountant by  learning Tallycomplete information

1:- If you are an accountant, then the first entry you have to post in Tally in Company or Firms is that of Sale and Purchase, yes friends, how much sale is done in 1 month, their entry in Tally I post and at the same time whatever Goods Purchase is done in the month, you post its entry in Purchase Voucher. 

2: – Now you have to do all the entries of Paymets, Receipts, etc made in Bank Statements in Tally, which you call BRS. 

3:- Maintaining Stocks/Balance Sheet etc is also the job of an Accountant.

4:- If you want to know more detailed accounting work, then watch this video completely, you will understand everything.

What work is done in CA Firm? let’s go

If you have learned Tally and now you want to take this knowledge that what is the work in a CA Firm? What kind of clients’ accounts do you maintain here at CA, then read this article for all its information, whose link I have given below.

How to apply online for accounting job?

Friends, if you have done Tally Course in 2021 , and now you are searching for a job related to Accounting, but you are not able to understand from where and how to search for Jobs? How to apply online job, then the best option you have for this is to do job search. Indeed

Yes, with the help of Indeed, you can easily search for jobs like Accounting, Tally Operator , Assistant Accountant etc types. To search for Jobs and apply online, read the article given below and follow all the steps mentioned.

What is Company?

There are many forms of business in which company is also one. The business organization which is formed and operated according to the rules mentioned in the Companies Act and whose capital is divided into small shares is called company business.

In other words, we can also say that the business which is formed by law, runs by law and is also closed by law, is called company business.

It is formed and registered under the Indian Companies Act 1956.

A company is an artificial person created by a statute having its own legal existence.

Company business is formed where the requirement of capital is high and the risk is also high.

There are four types of people involved in this:

  • Promoter
  • Director
  • Shareholder
  • Liquidator

What is accounting and its importance!

What is accounting?

his is a process that keeps records of financial aspects. The process of accounting keeps written information about the financial transactions happening in any organization or business.

Accounting is as much science as it is art. It records money transactions, classifies them, and prepares their summaries and presents them in such a way that they can be analyzed or interpreted.

Accounting sorts all the transactions related to a particular head. Account refers to a summary record of transactions relating to any person or thing. For example: When an entity transacts with different suppliers and consumers, each of the suppliers and consumers will have a separate account.

accountant

The account can be related to any tangible and intangible things such as – land, buildings, furniture, etc. The left hand side of an account is called the debit (‘Dr’) side, while the right hand side is called the credit (‘Kr’) side.

What are Main Three Types of Accounting?

There are three main types of accounting:

Personal Account (Personal Account)

The accounts which are associated with any person, organization, company are called Personal Account . For example, a temporary account of a person named Mohan will be called personal account (eg. – Mohan’s account. Personal account includes the following accounts:

  • someone’s account
  • Bank account
  • Capital account
  • Supplier या customer account
  • Financial और institution account
  • Drawing account
  • XYZ limited account etc.

All such accounts come inside the personal account from which we get to know from whom how much money is to be taken or how much money is to be given to whom. Rule of Personal Account:  

  1. Debit is receiver.
  2. Credit is the Giver.

Real Account (Real Account)

Real account or real account is that which is related to the object or property. Through the real account, information related to assets (goods and services) and liabilities i.e. loan or debt is available. Real accounts are of the following types:

Tangible Real Accounts:

These include assets that have a physical existence and can be touched. For example –

  • Land account
  • Building account
  • Machinery account
  • Furniture account
  • Vehicles account

Intangible Real Accounts:

These assets have no physical existence and cannot be touched. However, these can be measured in terms of money and have value. For example – 

  • Goodwill account
  • Patent account
  • Copyright account
  • Trademark account etc.

Real Account rule:

  1. Debit is what comes into play.
  2. Credit is what goes out of business.

Nominal Account

Information about income and expenses is available in Nominal Account. Nominal Account keeps the information related to our profit or loss. 

Nominal Account rule:

  1. Debit is all business expenses and losses
  2. Credit is the income and profit of the business

Nominal accounts are of the following types:

  • Discount account
  • Salary account 
  • Purchase account
  • Interest account
  • Wages account
  • Commission pay or receive account
  • Sales account etc
  • Insurance account

Apart from these three accounts, there are some other types:

  • Cash Account:

This account is used to keep records of payments made by cash, withdrawals and deposits.

  • Income Account:

The purpose of this account is to keep a record of the income sources of the business.

  • Expense Account:

This account tracks business expenses.

  • Liabilities Account:

If there is any loan or debt then that amount comes under liabilities.

  • Equity Account:

If the account is an investment of owner or common shares, retained earnings, then these come under Equity.

Accounting terms (Important terms used in accounting)

It is important for traders to understand some special terms of accounting such as:

1. Accounts Payable (AP)

It includes all the expenses that a business has incurred but not yet paid for. This account is recorded as a liability on the balance sheet because it is a debt owed by the company.

2. Accounts Receivable (AR)

This includes all sales provided by a company, but payment has not yet been collected. This account is on a balance sheet, recorded as an asset that will be converted to cash in the coming days.

3. Accrued Expense 

An expenditure which has not been paid but is described by the term Accrued Expense.

4. Asset (A)

Anything owned by the company that has monetary value. These are listed in order of liquidity from cash (most liquid cash) to land (least liquid cash).

5. Balance Sheet (BS)

A financial statement that reports on all assets, liabilities and equity of a company. This can be determined by a balance sheet equation-

<Assets = Liabilities + Equity>.

6. Book Value (BV) 

As soon as an asset is depreciated or depreciated, it loses value. Book value refers to the original value of an asset.

7. Equity (E)

Equity represents the value left over after liabilities have been removed. Remember its equation – Assets = Liabilities + Equity. If you take your assets and subtract your liabilities, you are left with equity, which is the portion of the company that is claimed by investors and owners.

accountant

8. Inventory 

Inventory is a term used by a company to classify assets it has purchased and sold to customers that remain unsold. The inventory account will decrease as these items are sold to customers.

9. Liability (L)

All the debts that have been paid by the company till date are referred to as liabilities. Common liabilities include Payable, Payroll, and Loans.

10. Expense (Cost)

Expense is any cost incurred by the business.

11. Cost of Goods Sold

The expenses related to the product or service of goods are called cost of goods sold. Not included in this category are costs that are necessary to run the business.

12. Gross Margin (GM)

A percentage calculated by taking Gross Profit and dividing it by Revenue for the same period is called Gross Margin. It shows the profitability of a company after deducting the cost of goods sold.

13. Gross Profit (GP)

Gross profit indicates the profitability of a company, without taking into account overhead expenses. It is calculated by deducting the cost of goods sold from the cost of goods sold for the same period.

14. Net Income (NI)

Net Income is such an amount that has been earned from profit. This is calculated by subtracting all Expenses such as COGS, Overhead, Depreciation, and Taxes etc. from Revenue to Us provision.

15. Net Margin

Net Margin is the amount that reflects the profit related to the revenue of a company. Its calculation is done by taking net income and dividing it by revenue for a given period.

16. Revenue (Sales) (Rev)

Revenue is any money earned by the business.

Advantages of Accounting:

1. It is difficult for a person to remember everything and it also increases the chances of making mistakes. Thousands and hundreds of transactions take place daily in business, many things are traded. These can be both cash and credit. Wages, salary, commission, etc. are paid in kind. It is not possible to remember them all. Accounting removes this deficiency.

2. Many news related to accounting business reaches us easily like:

  • Profit and loss information
  • credit balance information
  • Assets and loan information
  • business turnover, economic conditions etc. information of

3. Accounting records can be presented as evidence in the court of law if there is a problem related to payment from other merchants in the money transaction process.

4. It helps in the calculation of problems related to salary, bonus, allowances, etc. of the employees.

Why should your company adopt accounting software?

NTRO: Earlier people used to manage all these things manually due to which there was a risk of system loss due to mistakes i.e. account work or calculation errors. System loss due to paper maintenance has been reduced after the introduction of accounting software . Everyone has now started using accounting software in their small or big business.

Accounting software solutions can help businesses in many ways, and today we will give you solid reasons why and how you should start using it to grow your business. First it is important to understand what is accounting (What is accounting?)

Learn what is accounting

The process of managing the financial system of the business is called accounting . In the financial system, it is difficult to handle the information related to the amount of transactions, auditing and all kinds of financial reports etc. Also, these calculations are very complicated, in which there is unnecessary loss of time. 

Types of accounting

There are three main types of accounting:

Personal Account:

The account associated with any person, organization or company is called personal account or personal account.

Real Account

Those which are related to the object or property are called real account or real account .

Real accounts are of two types:

  • Tangible Real Accounts: Assets that have a physical existence and can be touched
  • Intangible Real Accounts: Assets that have no physical existence and cannot be touched. However, these can be measured in terms of money and have value. 

Rule of real account:

  • Debit is what comes in business 
  • Credit is that which is spent by the business

Nominal Account

Information about income and expenditure is available in the nominal account which manages the information related to our profit and loss. 

There are many types of nominal account such as Discount account, Salary account, Purchase account, Interest account, ages account, Commission pay or receive account, Sales account, Insurance account etc.

Nominal Account का rule:

  • Debit is all expenses and losses in business
  • Credit is the income and profit of the business.

Apart from this there are some other types like Cash Account, Income Account, Expense Account, Liabilities Account and Equity Account.

What is accounting software and what does it do? 

Accounting software is an application software that does everything that is needed in an accounting business but does it in a digital way. Accounting software evaluates and takes care of the financial position of a business. 

This software manages some important accounts and documents related to your business like an accounting information system:

accountant
  • Your accounts: Taking care of accounts is the main function of accounting software . It takes care of accounts payable and accounts receivable, helps you with banking related work, gives you all the expenditure, income, liabilities, etc. at a given time frame. and shows assets.
  • Invoices and Bills: Bills and Invoices are another major financial part of a business. Accounting software helps you provide invoices to customers and generate bills for them.
  • Tracking Sales: With invoices and bills, the system tracks total sales.
  • Payroll Management: Accounting software also manages employees . It takes care of their salary, wages, bonus and every financial compensation.
  • Inventory Management: Inventory management is very essential for the business. Stock management becomes even better by implementing this solution.
  • Reporting Tax: It takes care of tax management, apart from creating an overall report on the finances.
  • Helps in budgeting: It analyzes the documents in hand and compares with the previous ones and helps in making new budgets.

5 benefits of adopting accounting software

Accounting software provides many benefits by making the daily calculations of your business easy such as:

  1. A good accounting software system saves a lot of time as compared to manual bookkeeping.
  2. Manual accounting calculations increase the possibility of errors. Accounting software minimizes mistakes.
  3. Leading accounting software system offers advanced features such as salable database and sophisticated customization. Accounting software is very beneficial for startups and small businesses to meet their growing needs and demands as they expand. 
  4. Computerized solutions like this software are very easy to learn, not much time is spent in learning it. With this you can create digital invoices, manage cash flow according to your needs and even keep track of all your inventory very easily.
  5. Accounting platforms can calculate the tax amount that needs to be paid on each invoice. This makes tax reporting easier. 

How To Choose Accounting Software For Your Company? (How to choose accounting software for your business?)

With the fast changing times, many solutions are coming in the market. All accounting softwares have their own advantages and disadvantages. So while choosing any software system for your company, it is very important to do research and take a better decision – online or offline – which accounting software is right for you.

What is better between offline accounting software and online accounting software (What is offline accounting software and what is online accounting software?)

On the basis of technology, accounting software are of two types :

Offline: A traditional PC based technology, can be installed from a CD, as

Online: Advanced technology, cloud and internet based, providing online access anytime, anywhere.

Offline softwares are set with a default and if they have to be changed then the entire configuration has to be changed, which reduces the flexibility. To know better what are offline and cloud based accounting software, we should understand online and offline accounting software more deeply.  

What is the disadvantage or disadvantage of offline accounting software? What is the disadvantages of offline or basic accounting softwares? 

Here are 8 disadvantages that can help you make a better decision:

  1. The installation charges of an offline accounting software or an ERP system are costly. And ERP consultants are very expensive and take up to 60% of the budget.
  2. For accounting on such software, it is necessary for your company to have such employees who are well versed with the software. If it is not, it can be a failure or add to the cost of training employees to acquire the skills.
  3. To work with such offline and traditional software, if employees of different departments are apprehensive about sharing the information of their department with any other department and such information is not complete.  
  4. Need to download every time there is any change in GST rules
  5. POS and accounting are not linked in such softwares. 
  6. Sales Management (CRM Invoices etc) are not linked.  
  7. There is a risk of losing data in Basic offline accounting software because the data is saved in the computer without any backup, if by chance there is a problem with the PC or the PC fails, then the data will be lost.
  8. Once the password is set and if you lose it, the chances of data loss are high. And once the data is lost you will not be able to retrieve it. (In cloud based accounting software the data is saved in the cloud. 

Conclusion

In today’s article, I told you that what is the work of an accountant in a company Know the complete details of Accounting Work in Tally ERP 9 and Tally Prime Hindi 2021.  If you face any kind of problem in Tally, Busy Accounting Software, you can contact me and ask.

I hope that you would have liked this article, if you liked this article, then definitely share it with your friends on social media, so that they too can get this information.

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