Significance of Staff Accounting to an Organization
Staff accounting is the branch of accounting that encompasses application of accounting principles within a specialized field of accounting or an allocated group of funds. Ideally, a staff accountant can be considered the foundation employee of a firm who utilizes the accounting principles in a definite area of accounting.
This field of accounting also incorporates compilation of financial information, reconciliation of financial reports and data as well as processing the journal entries into various accounts. Moreover, it includes the preparation of records, reports, classification as well as summarization of financial transactions and events in consistency with the generally accepted accounting principles.
Staff accounting is not restricted to compilation of financial data. It also includes knowledge related to assessment of financial documents. These documents are usually evaluated on parameters such as completeness and compliance. Generally, this area of accounting provides knowledge in relation to maintenance of book-keeping and accounting records like journals, cash accounts, and payment of bills and reconciliation of monthly accounts. Apart from this, it includes the creation as well as maintenance of various financial statements like income statements, cash flow analysis, and balance sheets.
The scope of staff accounting applications is not limited to the premises of an organization. It is also useful for calculation of taxes, retention of documents as well as creation of standardized operating procedures. In a nutshell, these accounting functions are indispensable for running of an organization.
A thin line of difference exists between the work of an accountant and a staff accountant. An individual could start as Staff accountant with an accounting firm and might become a partner in that accounting firm. However, an accountant is a person who works with a private or public accountancy.