Financial ServicesISCO 2411
Accounting analyst
An accounting analyst is a person who evaluates the financial statements of businesses and establishes whether the figures in them have been arrived at properly.
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Rate 5 of the 18 essential skills of this occupation (European ESCO data). No account needed.
monitor financial accounts
analyse business processes
identify process improvements
draft accounting procedures
create a financial report
About accounting analyst
The analyst assesses the complete set of statements: the income statement, the balance sheet, the cash flow statement and the notes explaining individual items. These are read together and the figures compared with the previous year and with other companies in the same industry.
The analyst also interprets and implements new accounting systems and procedures, and determines whether a proposed arrangement complies with accounting principles and will give users the information they need. Procedures are drafted for the accounting department, and accounting operations and ledger entries supervised.
The accounting analyst controls documentation, oversees finances and prepares statements. They know the international financial reporting standards, which matters in groups of companies where a subsidiary keeps its books under national law and reports to its owner under international standards. The rules for keeping accounts are set in law, and statutory audits of financial statements are carried out by licensed auditors.
Key Work Functions
Core areas of responsibility for a accounting analyst.
1
Financial Statement Analysis and Interpretation
- Evaluate income statements, balance sheets, statements of cash flows, and supporting notes to assess financial position and performance
- Interpret financial statements and explain accounting records to stakeholders including management, auditors, and investors
- Analyze financial performance of a company by comparing historical data, industry benchmarks, and trend analysis
- Identify and analyze financial risk factors that may impact organizational stability and profitability
2
Accounting System Implementation and Compliance
- Interpret and implement new accounting systems and procedures to improve financial management and operational efficiency
- Ensure accounting systems comply with international financial reporting standards (IFRS) and national generally accepted accounting principles (GAAP)
- Draft and document accounting procedures and policies to standardize financial processes across the organization
- Analyze whether proposed accounting systems conform to regulatory requirements and meet user information needs
3
Financial Record Verification and Accuracy
- Check accounting records for accuracy, completeness, and compliance with accounting standards and company policies
- Monitor financial accounts on a regular basis to ensure transactions are recorded correctly and accounts reconcile
- Identify and correct accounting errors, discrepancies, and irregularities in financial records
- Create audit trails and maintain documentation for all accounting entries to ensure transparency and accountability
4
Process Improvement and Reporting
- Analyze business processes and financial department processes to identify inefficiencies and opportunities for improvement
- Create financial reports that present data clearly, including variance analysis, trend analysis, and key performance indicators
- Identify process improvements and make recommendations to enhance financial controls, reduce costs, and improve reporting accuracy
- Supervise accounting operations and coordinate with accounting staff to ensure consistent application of procedures and policies
European Skills Framework
Skills and knowledge areas required for this occupation based on European classification.
Essential (18)
financial department processesfinancial department processesThe different processes, duties, jargon, role in an organisation, and other specificities of the financial department within an organisation. Understanding of financial statements, investments, disclo...international financial reporting standardsinternational financial reporting standardsThe set of accounting standards and rules aimed at companies listed in the stock exchange which are required to publish and disclose their financial statements.national generally accepted accounting principlesnational generally accepted accounting principlesThe accounting standard accepted in a region or country specifying the rules and procedures to disclose financial data.monitor financial accountsmonitor financial accountsHandle financial administration of your department, keep the costs down to only necessary expenses and maximise the revenues of your organisation.analyse business processesanalyse business processesStudy the contribution of the work processes to the business goals and monitor their efficiency and productivity.identify process improvementsidentify process improvementsIdentify possible improvements to operational and financial performance, in order to increase productivity, efficiency, quality, and streamline procedures.draft accounting proceduresdraft accounting proceduresLay down standard methods and guidelines to regulate bookkeeping and accounting operations, including determining the bookkeeping system used to record financial transactions.explain accounting recordsexplain accounting recordsProvide additional explanation and disclosure to staff, vendors, auditors, and to any other instance about the way accounts were recorded and treated in the financial records.create a financial reportcreate a financial reportFinalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.supervise accounting operationssupervise accounting operationsCoordinate, commission, and monitor operations in accounting departments in order to ensure the accurate record and eventual reporting of the financial operations of the company.accounting department processesaccounting department processesThe different processes, duties, jargon, role in an organisation, and other specificities of the accounting department within an organisation such as bookkeeping, invoices, recording, and taxing.accounting entriesaccounting entriesThe financial transactions recorded in accounting systems or books of a company together with the metadata linked to the entry such as the date, the amount, the accounts affected, and a description of...check accounting recordscheck accounting recordsRevise the accounting records of the quarter and year and ensure that the accounting information reflects with accuracy the financial transactions of the company.accounting techniquesaccounting techniquesThe techniques of recording and summarising business and financial transactions and analysing, verifying, and reporting the results.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...
Optional (21) — show
treasury management systemtreasury management systemThe system for managing treasury processes by centralizing cash flow data linked to treasury operations. It involves managing the liquidity as well as money market instruments of an organisation.liquidity managementliquidity managementThe theory and practices around the management of liquidity in a company with the aim of facilitating meeting obligations with thirds parties without compromising the smooth functioning of the company...stock marketstock marketThe market in which shares of publicly held companies are issued and traded.investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...public offeringpublic offeringThe elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.perform stock valuationperform stock valuationAnalyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.perform forensic accountingperform forensic accountingPerform audits and evaluations of financial information, accounts, financial products, and stewardship of companies. Exert financial investigations with different emphasis such as insurance claims, fr...provide cost benefit analysis reportsprovide cost benefit analysis reportsPrepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment i...review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.forecast account metricsforecast account metricsMake predictions on the movement of account measurements and data which give insight into an organisation's financial state in order to aid analyses and evaluate potential risks.prepare financial statementsprepare financial statementsCollect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five p...evaluate budgetsevaluate budgetsRead budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.liaise with shareholdersliaise with shareholdersCommunicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.ensure compliance with accounting conventionsensure compliance with accounting conventionsExercise accounting management and abidance by generally accepted accounting conventions such as recording transactions at the current price, quantifying goods, separating personal accounts of manager...ensure compliance with disclosure criteria of accounting informationensure compliance with disclosure criteria of accounting informationRevise the accounting information of the company to make sure it meets the commonly agreed criteria for its disclosure such as understandability, relevance, consistency, comparability, reliability, an...identify if a company is a going concernidentify if a company is a going concernAnalyse financial statements, financial information and the outlook of the company in order to determine the going concern of the company.manage accountsmanage accountsManage the accounts and financial activities of an organisation, supervising that all the documents are correctly maintained, that all the information and calculations are correct, and that proper dec...make strategic business decisionsmake strategic business decisionsAnalyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the o...global standards for sustainability reportingglobal standards for sustainability reportingThe global, standardised reporting framework that enable organisations to quantify and communicate about their environmental, social and governance impact.follow the statutory obligationsfollow the statutory obligationsUnderstand, abide by, and apply the statutory obligations of the company in the daily performance of the job.
Related Occupations
Occupations that need many of the same essential skills, so the move between them is shortest.
accounting manager13 shared essential skillsaccountant10 shared essential skillsfinancial manager9 shared essential skillsfinancial auditor7 shared essential skillsbudget manager6 shared essential skillsaudit supervisor5 shared essential skillsbank manager5 shared essential skillscorporate treasurer5 shared essential skills
Frequently asked questions
What does an accounting analyst do?
Accounting analysts evaluate the financial statements of clients, usually companies, which include the income sheet, the balance sheet, the statement of cash flows and additional notes to other financial statements. They interpret and implement new accounting systems and accounting procedures and will analyse and determine if the proposed systems conform to accounting regulations and meet user information requirements.
What skills does an accounting analyst need?
An accounting analyst needs 18 essential skills, including financial department processes, international financial reporting standards, national generally accepted accounting principles, monitor financial accounts, analyse business processes.
Will AI replace accounting analyst jobs?
The AI disruption score for accounting analyst is 81/100 (very high risk). Skills most exposed to automation: financial statements, accounting entries, prepare financial statements. Most resilient: make strategic business decisions, liaise with shareholders, international financial reporting standards.
AI Replacement Risk
81/ 100
Very High Risk
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Skills most at risk from AI
Skills resilient to automation
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