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Role and Responsibilities of a Bank Accountant

Bank accounting includes preparation of permanent records for every transaction. Therefore, the statement of bank shows a general picture of the accounts of bank while the different books of accounts offer a detailed analysis of the items. In consistency with other fields, all the banks are similar with regards to bank accounting. Consequently, the same principles are followed in every bank irrespective of their size or nature of control. All the books of accounts form a part of the general books.

The basic principle underlying bank accounting is that a credit exists for every debit and vice-versa. Therefore, the books of accounts always need to be balanced. This implies that every dollar of liability must be accounted for by a dollar of resources.

Bank accountant or the accountant for a bank performs almost the same functions as the accountant of any other kind of business. Accounting refers to the classification and recording of financial transactions. Moreover, this remains the fundamental responsibility of an accountant irrespective of the kind of organization for which he/she works. However, there are certain procedural differences in the working of a bank that makes them different from the other businesses.

The titles or designations of these accountants are similar to that of other businesses. The bank accountant holds the responsibility of preparing the journal entries, posting to general ledger as well as posting journal entries. Moreover, the accountant is also responsible for posting to subsidiary ledgers and reconciliation of ledger accounts.  Besides this, the individual also prepares cash position of an organization on daily, weekly as well as monthly basis. In addition, they must ensure that the bank possesses sufficient cash for making day-to-day transactions. The accountant also prepares cash reports and ensures that the reports are reviewed by the management.

The bank accountant also prepares or assists during preparation of financial statements. The statements prepared include the balance sheet, income statement, a statement of retained earnings and cash flow statement. Moreover, banks also need to prepare a statement demonstrating the changes in equity. This statement is useful to an investor who intends to follow the investing and lending activities of a bank. The accountant also holds the responsibility of closing the books of accounts of a branch at the end of every month. In case mistakes occur, he/she is prepares and post the adjustment entries.

Apart from all this, the person also ensures that bank’s classifications, accounting practices as well as reporting adheres to the regulatory and compliance standards. Moreover, he/she needs to ensure compliance with government regulations and external auditors.