Responsibilities and Requirements
A chief accountant oversees financial reporting, coordinates audits, and ensures accounting compliance. They are required to have a bachelor’s degree in accounting, with some positions demanding a master’s degree, experience, and industry knowledge. Key skills include strong communication and presentation abilities, the ability to lead others, and being organized.
A chief accounting officer (CAO) manages all accounting operations, including bookkeeping, reporting, compliance, and strategy. Reporting typically to the CFO, the CAO focuses on the detailed accounting functions, whereas the CFO oversees forecasting, budgets, and high-level finance strategy. The CAO should have accounting degrees, a CPA license, and experience in delegating tasks and managing teams.
Reporting Hierarchy
Chief Accounting Officer (CAO)
The CAO reports to the CFO and is tasked with the day-to-day operations of the accounting department. Their responsibilities include ensuring the accuracy of financial records and managing staff.
Chief Financial Officer (CFO)
The CFO utilizes accounting information from the CAO to control business finances and plan strategically. Responsibilities of the CFO include managing budgets, forecasts, credit, taxes, and insurance. The CFO also often takes on larger roles in strategic planning, serving as an advisor, and handling communications with shareholders and the media.
Differentiating the Roles
While the chief accountant and CAO share similar responsibilities, certain skills set them apart. For example, the chief accountant needs expertise in "income statement," "sales tax," and "financial management." Conversely, the CAO’s skill set often includes "payroll," "oversight," "SOX," and "customer service."
Additional Duties of a Chief Accountant
The Chief Accountant is responsible for monitoring the budget and financing plan and establishes communication with banks for regular updates on financial developments. They also negotiate with banking institutions and coordinate with the Statutory Auditor for account audits.
Skills and Proficiencies
- Master accounting techniques (Local Gaap, statutory consolidation, payroll, etc.)
- Master accounting standards (IAS/IFRS, UK-US GAAP)
- Good knowledge of regulations