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A bank is a credit institution that performs cash flow-related activities such as capital mobilization, payment, and treasury,… All data related to these activities must be collected and processed carefully and precisely. That is also why a bank accountant plays a very important role every bank needs. In this article, we will learn about the position of bank accountant – duties and current job opportunities!
1. What is bank accountant?
- A bank account is a person who performs the processing and analysis of accounting and financial operations and provides necessary information related to the bank’s financial activities following the provisions of the bank’s regulations law.
- So what is the difference between bank accounting and bookkeeping? That is accounting, including banking accounting. And the bank accountant only specializes in working for the bank, fully understanding the regulations and operating methods of the bank and related parties.
2. Bank accountant characteristics
- Generality and high sociality: A bank is an intermediary financial organization where transactions and financial activities occur regularly and continuously between organizations, businesses, and individuals. Therefore, a bank account must work with many individuals and organizations in various industries. In addition, they must also summarize and reflect all financial transactions such as payment, credit, and currency, …
- Handling transactions according to strict procedures: Because it is an organization that does work directly related to cash flow, sometimes with huge sources of money, the bank’s working process must be very strict. All operations of each department and position must always follow the bank’s standard procedure, including the position of corporate accountant. In that chain, the work of the bank’s accountants will affect almost all other activities and departments, so they must handle it closely and in the fitting process.
- Up-to-date and highly accurate: A bank’s two critical factors are capital sources and capital turnover in the monetary fund. When new operations are related to these two activities, bank accountants must collect and record accurately and without errors. In addition, they must update capital sources on time so that the bank can adequately identify the available capital at each time and take appropriate actions.
- The volume of documents is large and complicated: The transaction activities between the bank and customers, organizations, and enterprises are very diverse and occur regularly and continuously. As a result, the volume of documents, statements, and verification… is enormous and complicated. Therefore, bank accountants must deal with a large volume of related papers and relatively troublesome work. That is a job characteristic that a bank account must know and get used to.
3. Objects of bank accountant
ank accounting includes three main objects, reflecting the entire operation of a bank and providing important accounting information in each period. Specifically, the three objects are:
- Assets are classified according to their form of expression and current status: assets with capital use, the capital.
- The source of asset formation (representing the source of assets and cash flow in the bank) is capital or liabilities.
- The movement of assets between banks in the same or different systems.
4. Basic Accounting Principles
- Accrual basis: All financial accounting operations of an enterprise, such as assets and liabilities, should be recorded in the accounting books at the time of arising, not based on the actual time of receipts and expenditures. Cash or cash equivalent. The financial statements are prepared on this principle to present the financial position at each specific time.
- Going concerned: All financial statements should be prepared to assume that the business is in business and will continue for the foreseeable future. In cases where the reality is different from the assumption, it is necessary to give and explain the new basis for making the report. In addition, the provisions set up must follow the principles. Not overvalued assets and income, nor undervalued payables and expenses. Revenues, incomes, and costs are only recognized when there is specific evidence of the possibility of obtaining economic benefits and the possibility of incurring costs.
- Cost: All enterprise assets must be recorded at cost (the price paid by the enterprise to acquire those assets). Cost is calculated based on the number of cash equivalents paid or payable or the asset’s fair value determined when the investment is recognized. Accountants are not allowed to arbitrarily adjust the historical cost of this asset unless expressly provided for in the accounting law or accounting standards.
- Match: The recognition of revenue and expenses must be consistent. When revenue is recognized, there must be a corresponding related expense (the expense of the previous period, the cost related to the revenue in that period). This principle helps enterprises accurately analyze and calculate their taxable income as a basis for calculating corporate income tax payable to the State.
- Consistency: The accounting policies and methods enterprises have chosen must be consistent. If there is any accounting policy or method change, it must be added to the report’s notes and explain the reason and its impact on the competent authorities.
- Caution: Careful consideration and consideration should always be given to making accounting estimates under conditions of high uncertainty. More specifically, do not make too large provisions, do not overvalue assets and income, and do not underestimate the value of payables and expenses. Revenue and expenses are recognized only when there is solid evidence of the possibility of obtaining economic benefits and incurring costs.
- Materiality: The lack of information or information with a low accuracy may misrepresent the financial statements. So even minimal information becomes important in some specific cases. The materiality of information needs to be considered both qualitatively and quantitatively.
This article gives you a better understanding of the role of a bank accountant. Hopefully, the information shared by CPA Nashville will help you better prepare if you intend to become a bank accountant in the future.