Financial Accounting is a branch of Accounting that is dedicated to recording, controlling and analyzing the financial transactions of a company. Its main objective is to provide useful and reliable information for making financial decisions.
To be an accountant specialized in Financial Accounting, it is necessary to have an academic background in Accounting Sciences or related areas. The graduation course usually lasts four years and offers specific disciplines in the area, such as Financial Accounting, Analysis of Financial Statements, Auditing and Controlling.
After graduation, the professional can specialize even more in the area, taking postgraduate, master's or doctoral courses. It is important that the accountant is always up to date on changes in legislation and accounting standards to ensure the quality of work.
In practice, Financial Accounting involves recording all financial transactions of the company, such as income, expenses, investments, loans and payments. These records are made in specific accounting books, such as the Daily Book and the Ledger Book.
From these records, it is possible to prepare the Financial Statements, which are accounting reports that present the financial situation of the company in a given period. The main Financial Statements are the Balance Sheet, the Statement of Income for the Year and the Statement of Origins and Use of Resources.
In addition, Financial Accounting is also responsible for analyzing the Financial Statements and providing relevant information for making financial decisions. This information may include the company's profitability, liquidity, solvency and ability to pay.
In summary, Financial Accounting is a fundamental area for the financial management of a company. The accountant specialized in this area is responsible for providing accurate and reliable information for making financial decisions, ensuring the health and sustainability of the company in the long term.
