Bank accounting includes the preparation of permanent records for each transaction. Thus, the bank statement presents an overview of bank accounts while the various accounting books provide a detailed analysis of the items.
In accordance with other areas, all banks are similar when it comes to bank accounting. Therefore, the same principles are followed in all banks regardless of their size or the nature of their control. All accounting books are part of the general books.
The fundamental principle of bank accounting is that for each debit there is a credit and vice versa. Therefore, the books should always be balanced. This means that every dollar of liability must be matched with a dollar of resources.
The bank accountant or the accountant of a bank performs almost the same functions as the accountant of any other type of business. Accounting is the classification and recording of financial transactions to enable users make decision. Moreover, it remains the fundamental responsibility of an accountant regardless of the type of organization for which he works. However, there are certain procedural differences in how a bank operates that make it different from other businesses.
What Is The Role Of A Bank Accountant?
The designations of these accountants are similar to those of other companies. The bank accountant is responsible for preparing accounting documents, posting to the general ledger, and posting journal entries. In addition, he or she is also responsible for recording the subsidiary ledgers and reconciling the general ledger accounts. Apart from this, the person also prepares the cash flow situation of a company on a daily, weekly and monthly basis.
Also Read: How To Become An Accountant Without A Degree
Furthermore, they must ensure that the bank has sufficient liquidity to carry out day-to-day operations. The accountant also prepares cash reports and ensures that the management reviews the reports.
The accountant also draws up or assists in the preparation of financial statements. The statements prepared include the balance sheet, income statement, statement of retained earnings and statement of cash flows. In addition, banks must also prepare a report that demonstrates changes in capital.
This statement is helpful for an investor who has the intention to follow the investment and credit activity of a bank. He is also responsible for closing all the branches account books at the end of each month. In the event of errors, he prepares and records the adjustment entries.
In addition to this, the person also ensures that the classifications, accounting practices and reports of the bank comply with regulatory and compliance standards. In addition, he must ensure compliance with government regulations and external auditors.
Bank Accountant Skills
Undoubtedly, accountants in banks must have exceptional mathematical skills as number data management is required on a daily basis. They should also pay close attention to detail to ensure that no mistakes are made. Other good qualities that bank accountants should have include:
- Demonstrate honesty and reliability
- Maintain the confidentiality of personal information they may come into contact with in the performance of their duties
- Demonstrate a commitment to keep pace with changes in the banking industry, such as new government regulations
- Communicate effectively with clients, colleagues and other bank employees Solve complex financial problems for businesses and individuals
Bank Accountant Job Qualification
What do you need to be a bank accountant? Job postings for bank accountants generally require applicants to have at least a bachelor's degree in accounting, finance, or a related field. Employers often prefer to hire people who have an undergraduate degree in accounting and have obtained an MBA. Bank accountants also often hold a Chartered Accountant's license. The specific requirements to become a CPA vary by state, but they all involve a combination of education, experience, and examination.
Bank Accountant Salary
What is the salary of a bank accountant? The Bureau of Labor Statistics shows that bank accountants, under the heading of "accountants and auditors," earn an average salary of $68,150 per year.