Every business aims to earn money. But how do you know if you’re in fact earning? That’s where accountants come in. They use the language of accounting to match your assets, and liabilities, with your income and expenses.
In return, it tells you a snapshot of your company’s state and what to do next. Today, it’s heavily digitalised with accounting software for faster processing and access. And Xero is one of the financial software that accountants use all over the world.
What is Xero?
Xero is an accounting software that makes your financial transactions digital. It has numerous features like paying bills, connecting your bank accounts, and even tracking expenses per project.
If you’re trained in traditional accounting, you can take a few courses to equip yourself with the know-how in this program.
And with its popularity, you might want to consider applying as a Xero accountant. As one of the best accounting software in the world, more and more businesses are hiring with this specialization, making it an in-demand online job today.
Xero accountants roughly 25,000 PHP to 80,000 PHP, depending on their skill level. Do you want a career in this field? Here are 7 essential skills to become an in-demand Xero accountant.
Knowledge About Accounting Standards and Principles
Accounting is not merely addition and subtraction. It’s knowing what to add and subtract based on the current accounting standards and principles.
You should know this by heart because every transaction has a financial treatment. And for more complicated transactions like finance leases, hedging, and even crypto investment, you should be at least familiar with it just in case you encounter it with your client’s business activities.
There are also unique laws in specific countries that can result in different financial treatment. For example, differences in tax laws and accepted accounting standards can create tax assets or tax liabilities.
A country can tax business when cash is received, but the accrual principle in accounting would recognize it when services are rendered, which results in deferred assets tax assets/liabilities.
Master this to ensure your client that your recording is in line with the standards acceptable by your client’s country.
Now that you know the standards, it’s time to discern what is relevant to your client’s business. And your analytical skills will come into play in this scenario.
You should be able to analyze transactions and apply the right treatment in recording them.
Not all information is handed out on a silver platter. Sometimes, you have to analyze and solve problems to get the data you want.
For example, there is specific inventory lost after the count. What can you do to derive how much is lost and where it probably went?
Or maybe, there’s an erroneous entry in the company’s records. How can you find the right one? Your problem-solving skills will come in handy in the accuracy and timeliness of the data presented.
The purpose of financial reporting is to make decisions that will move the company forward. If you’re asked, “what can we do to improve?” What’s your answer?
You should have the business acumen to understand your client’s operations. And then suggest what can be done to improve it.
Knowing how to operate a computer is already a given. With all the digitalised records, it’s a must to know how to arrange and analyze data with the aid of software. With this, you can match the data and use Xero effectively in recording such transactions.
You will not be alone in this job. You will be working with a team and probably most of the departments across your job. After all, every department has a cost behind it.
You should have the collaboration skills to work well with different people. Understanding their concerns should be second nature. By doing this, you can record transactions accurately. And probably think of solutions to bridge financial targets to their department’s needs.
With changes in technology, political climate, and financial instruments, accounting practices and standards are bound to change rapidly.
Let’s just take the pandemic as an example. There is a big risk in continuing operations during these trying times. That’s why companies are now required additional disclosures that can affect their going concern.
Another is cryptocurrency. The valuation of these assets is now changing as more and more companies adopt holding them.
The question is, are you up-to-date with these changes? As an in-demand Xero accountant, you should be in the loop with the latest in your company’s industry and financial holdings. In this way, you are sure to be relevant in the days to come.
Ready to take advantage of this industry? Become a Xero Accountant with the following skills and watch your income grow online for you and your family.
Are you looking for career opportunities in this field? Check this link for more information. Cheers!