Technical accounting is a field of accounting that specializes in monitoring, inputting and analyzing the financial data and transactions of a company into its internal systems. It entails applying technical skills to efficiently process financial transactions. It also involves identifying processing problems and executing corrections and changes.
Technical accounting revolves around being knowledgeable of field-specific accounting laws and accounting standards, and being able to recommend modifications to management based on changes in the law or on inputting inefficiencies that they may discover.
What Does a Technical Accountant Do?
A technical accountant is responsible for tracking the financial processes of a company, monitoring accounting laws and practices and ensuring that the company’s financial practices and inputting systems are up to date. They therefore require specialized knowledge in both local accounting standards, such as the US’ Generally Accepted Accounting Principles (GAAP,) and International Financial Reporting Standards (IFRS.)
Some Tasks of a Technical Accountant:
- Analyze, categorize and input data into a company’s internal systems
- Identify and clarify discrepancies
- Coordinate the financial reconciliation of any discrepancies in a company’s financial records
- Liaise with other departments and clients
- Provide timely responses to technical accounting queries
- Assisting with daily operational needs
- Liaise with external auditors and CPAs when needed
- Identify and correct inefficiencies in financial data flow within a company
- Automatize and digitize financial processes to improve efficiency and accuracy
- Prepare financial statements
Technical Accountant vs Accountant Vs Auditor – What’s the Difference?
A technical accountant is more specialized than a basic accountant, but not as specialized as an auditor. A technical accountant is more focused on staying up to date on any changes in financial reporting requirements according to a country’s accounting standards and implementing these changes, whereas a basic accountant is more focused on collecting and inputting data related to the day-today processes and overall financial goals of a company. Auditors, on the other hand, Investigate the accounting and financial records of a company to ensure that they comply with taxation regulations and that their financial records balance and are up to date.
|Internal to the company||Internal to the company||External to the company|
|Requires degree in accounting and finance, as well as a few years’ experience in a related role||Usually requires a degree in accounting or finance||Requires licensure to practice, as well as a year or two of experience in a related role|
|Ensures company’s accounting policies are compliant with the country’s accounting standards||Ensures the company financial data is inputted and stored according to the company’s accounting policies||Ensures company is compliant with a country’s auditing standards|
|Works internally to the company||Works either internally or externally to the company||Usually works independently or as part of firm|
|Prepares financial statements and SEC filings to ensure they are compliant with the country’s accounting standards||Maintains financial records of a company to assist with preparation of financial statements||Evaluates prepared financial statements to ensure they are compliant with the country’s auditing standards|