Preparing and analyzing financial records, statements, and reports, as well as managing daily transactions like accounts payable and receivable and payroll
1. Recording
Systematically recording all financial transactions in chronological order.
This is often referred to as bookkeeping and ensures all data is accurately documented.
2. Classifying
Grouping similar transactions together into categories, such as expenses, revenues, and assets.
3. Summarizing
Compiling the classified data into concise financial statements, such as the income statement and balance sheet.
4. Analyzing
Breaking down financial data to understand the company's financial performance and position.
5. Interpreting
Explaining the meaning behind the analyzed financial data to make it understandable to users.
6. Communicating
Providing financial information to stakeholders, such as managers, investors, and creditors, through reports.
7. Controlling
Using financial data to monitor and manage the company's operations, which includes budgeting and protecting assets.