Are you an accountant or aspire to be one? Do you wonder what it is like to work in an IT company? How are the work environment, the work culture, the work process, and the work satisfaction?
If you are curious about these questions, you are not alone. Many people have misconceptions or doubts about the role and responsibilities of an accountant in an IT company. Some think that it is boring, stressful, or repetitive. Others think that it is easy, flexible, or lucrative. But, the reality is somewhere in between. Working in an IT company is not a walk in the park, but it is also not a nightmare. It is challenging, demanding, and rewarding. It is also fun, dynamic, and diverse.
In this blog, we will share with you some insights from people's experience as an accountant in an IT company, and hopefully answer some of your questions. We will also give you a glimpse of what a typical workday looks like for an accountant, and what are the tasks that have to be done regularly.
The Best Thing About Working in an IT Company
Before we dive into the details of my work, let us tell you the best thing about working in an IT company: the weekends are off!
Yes, you heard us right. Unlike many other industries, where accountants have to work on Saturdays and sometimes even Sundays, IT companies usually follow a five-day work week. This means that you can enjoy your weekends with your family, friends, hobbies, or whatever you like. This is a huge perk, as it helps me maintain a healthy work-life balance.
Of course, there are exceptions. Sometimes, you have to work on weekends if there is an urgent project or a deadline. But this is rare, and you get compensated for it. Most of the time, you can relax and recharge on weekends, and start fresh on Mondays.
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The Main Tasks of an Accountant in an IT Company
As an accountant in an IT company, you have to handle various tasks related to financial management, reporting, and compliance. You also have to work with different departments and teams within the organization and provide them with financial advice and guidance.
Some of the main tasks that you have to do are:
Invoicing
Invoicing is the process of billing the clients for the services or products that we provide. Invoicing is done based on the projections and the actuals of the sales team.
The sales team makes projections of how much sales they will generate in the whole year and then updates them monthly. The actual billing is tracked based on the projects and the resources.
Each project has a fixed amount, which is divided into sprints or milestones. A sprint or a milestone is a part of a project that has a specific deliverable and a deadline. As the work of each sprint or milestone is completed, the billing is done accordingly. This is called sprint-wise or milestone-based billing.
Sometimes, our resources are on-site, meaning they are working for another client at their location. In that case, the billing is done according to their schedule. For example, if a resource works for 8 hours a day, the billing is done for 8 hours.
The invoicing process is done using a system, where a team member makes the invoice, and another person verifies it. This is called the maker and checker facility, which ensures that there are no errors or discrepancies in the invoice. The invoice is then shared with the client, and the payment is received. The invoicing is done in both INR and USD, depending on the client and the project.
Invoicing is one of the most vital tasks of an accountant, as it directly affects the cash flow and the revenue of the organization. It also requires a lot of coordination and communication with the sales team, the project managers, and the clients. Invoicing is also one of the most satisfying tasks, as it gives me a sense of accomplishment and contribution.
Expense Approval
Expense approval is the process of approving the expenses incurred by the different departments or teams for their operations. For example, if the marketing team spends money on advertising, or the HR team spends money on training, or the IT team spends money on software, they have to get their expenses approved by the finance team.
The expense approval process is also done using a system, where the department or the team uploads the invoice, and the finance team approves it. The expense approval process mostly follows two cycles, the first and the fifteenth of every month. The payments are done in these two cycles, and the invoices are not directly emailed.
Expense approval is another necessary task of an accountant, as it affects the budget and the profitability of the organization. It also requires a lot of scrutiny and analysis, as you have to check the validity and the necessity of the expenses and ensure that they are within the limits and the guidelines. Expense approval is also one of the most challenging tasks, as it involves a lot of negotiation and justification with the different departments and teams.
Budgeting
Budgeting is the process of planning and allocating the financial resources of the organization for the year. At the beginning of every financial year, you have to prepare a budget for the whole organization, as well as for each department and team. The budget is based on the previous year’s performance, the current year’s goals, and the expected market trends.
The budget is then presented to the management and the stakeholders for approval and feedback. Once the budget is finalized, it is communicated to the different departments and teams, and they have to follow it throughout the year. The budget is also monitored and reviewed periodically, and any deviations or changes are reported and justified.
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Budgeting is one of the most strategic and creative tasks of an accountant, as it involves a lot of forecasting and decision-making. It also requires a lot of collaboration and alignment with the management and the stakeholders, as well as with the different departments and teams. Budgeting is also one of the most rewarding tasks, as it helps you to shape the vision and the direction of the organization.
Ready to Live it?
These are some of the main tasks that you have to do as an accountant in an IT company. Of course, there are many other tasks that you have to do, such as taxation, auditing, reporting, compliance, and so on. But these are the ones that you do regularly, and that give you a glimpse of the different aspects and functions of the organization.
Working as an accountant in an IT company is not easy, but it is also not boring. It is a mix of routine and variety, of challenge and satisfaction, of pressure and fun. It is a job that requires a lot of skills, knowledge, and experience, but also a lot of passion, curiosity, and learning.
If you are an accountant or aspire to be one, we hope this guide has given you some insights and answers about what it is like to work in an IT company!
