Some help with homework?

you know too much. how do we know you are not managing the numbers you are reporting?

Well, the first thing is that I am audited every year by an outside auditor. The second thing is that every entry made has a paper trail that can be verified by outside sources. The third thing is that we have controls in place which call for numbers in the accounting software be reconciled with other records of which the accountant has no part in generating.

control. Making suggestions to management on how to improve operations while reducing expenses can cause an accountant to be considered invaluable.

You DO know that all accountants are not also auditors, don't you? Heck, one designation accountants can have is called a CFM. This stands for Certified Financial Manager. Their chief objective is to offer advice to management. An accountant is not just an historical record keeper anymore. Accountants can be a viable part of the management team as the profession learns to look ahead.

Cash flow management is a necessary part of some accountants jobs; however, it is not the numbers which are managed but, rather, the actual flow of cash. I am not going to make an investment or make a(n optional) balloon payment on a loan, for instance, if it would cause us to be out of covenance with our banking line of credit. I have to decide whether we will be able to take the discount on a 2% 10 net 30 invoice... and sometimes have to wait for payments from customers given what I know has to be paid for the remainder of the month.

Learning on the job is fine, but it often takes much longer than school learning which jump starts the whole process and can give one a very good foundation depending on the school. Note that having a diploma in hand does not replace on the job learning.

The other issue is that many places like to see some formal accounting education with a diploma in a candidates background. It looks good on the resume to show you had enough focus, commitment and drive to attain that paper in the end... which paves the way to higher learning adventures should you chose that route.

A good attitude and willingness to learn (life-long learning) are very important. I very much hesitate in using the term "expert" to describe anyone, since that sets up expectations of all-knowing.

I am not going to fake an investment or make a(n optional) balloon payment on a loan, for instance, if it would cause us to be out of covenance with our banking line of credit.

well, if you are managing finances, then daresay you are not an "accountant" per se, and certainly you have no business auditing your own decisions. You should classify yourself as being in the "financing activities" department.

Since the books measure your own performance, if you audit yourself, the c*ck is in the chicken's nest.

Mixing financial activities with accounting is what got enron into trouble in the first place -- not enough controls on the financial people who were cooking their own books.

econd thing is that every entry made has a paper trail that can be verified by outside sources. The third thing is that we have controls in place which call for numbers in the accounting software be reconciled with other records of which the accountant has no part in generating.

the outside auditor is usually some kid fresh out of college, in any case, because he is "outside", he doesn't know where the goods are hidden, and has to rely on the inside accountants to tell him. if the inside accountants are sneaky and very good at it, then most outside auditors won't catch anything small unless they are Columbo. And if they are smart as columbo, they wouldn't be wasting their time being an auditor, would they?

Most outside auditors are there to put in their face time, bill their hours, and do whatever checklist they have to do. they won't catch much in your "paper trail" unless it is obvious and gigantic. A couple of fudged expenses and depreciation schedules here and there -- which $40,000/yr kid is gonna catch that?