Properly managing your finances is a critical aspect of running a successful business. Some small business owners may manage their own finances. But many will hire a professional to assist with this process. When your business reaches a certain size, you may hire in-house accounting professionals to handle all financial and accounting efforts. Until then, you may outsource the work to a consultant or contractor. One of the positions that you may need to hire for is an accounting research manager.
After you learn more about what an accounting research manager does and how this position can benefit your business, you will see what you may need to start looking for an individual to fill this position soon.
What Is an Accounting Research Manager?
At the job title suggests, an accounting research manager is a highly trained and experienced individual who will conduct considerable financial research for the company. This knowledgeable individual will prepare financial statements for the company that have been thoroughly researched and documented. This way, they comply with government requirements for accounting practices. In some cases, the accounting research manager will oversee a full team of professionals who complete this work for the company. So the manager will be responsible for reviewing and ensuring the accuracy of the data that the team used.
Let’s say that the company is audited externally by the IRS or other entities. In this case, the accounting research manager will be the head person in charge of communicating with the auditors. He/she is also managing the audit from an internal standpoint. As you can see, the role of an accounting research manager is significant. So only the most well-trained and experienced accountants reach this pinnacle in their career. The accounting manager is also aware of the international accounting standards and which of them may impact your company.
Who Needs an Accounting Research Manager the Most?
All companies regardless of their size will have to file financial documents to the government. This is most commonly completed through the filing of a federal tax return for the company. However, if the company is publicly traded, the paperwork and reporting documents can become far more complex and significant.
With this in mind, publicly traded and larger corporations with more complex accounting documents need to hire an accounting research manager the most. These larger companies typically will use an in-house accounting research manager. Meanwhile, smaller and mid-sized companies may hire a consultant in most cases.
How Much Is Usually Spent on an Accounting Research Manager?
If you are thinking that you need to hire an accounting research manager, you may be wondering what the average compensation for this type of individual is.
- An accounting research manager in the United States typically earns approximately $104,000 per year.
- However, there are variations to this, and the minimum salary is approximately $90,000.
- Those on the higher end of the curve earn as much as $140,000.
5 Ways an Accounting Research Manager Can Benefit Your Company
If you are on the fence about your need to hire an accounting research manager for your company, you may want to learn more about how this professional can benefit your company. These are some of the more significant benefits that an accounting research manager offers to your company.
1. Thoroughly Researches Financial Data
All companies will need to prepare financial statements for their earnings and more. This includes even the smallest companies. To prepare these items, you will need to pull together all supporting documents.
Each number that you place in your reports or statements should have supporting documentation through accurate research to support it.
2. Prepares Accurate Financial Documents
It is not enough to simply pull together receipts and other supporting documents to prepare the financial statements that you need to file to the IRS and to the SEC. You also must use that data to create accurate financial statements that may become a matter of public record.
You simply cannot afford to make an error with these statements, such as entering data in the wrong field or miscalculating numbers. While mistakes can and do happen, the role of an accounting research manager is to ensure that they are not an issue for your company.
3. Manages the Internal Accounting Team
If your company is large enough, you may have a team of accountants working in your financial department. They must work together in different ways. So an accounting research manager typically will provide each accountant with direction and focus regarding projects.
He or she will also oversee their work and ensure that it is accurate before they compile it with data from other accountants in the company.
4. Verifies the Accuracy of Documents
The last thing you want is to file inaccurate statements and documents with the IRS or SEC. Doing so could result in significant issues that range from penalties to criminal charges in some cases.
You simply must have accurate documents filed. So the accounting research manager is fully responsible for verifying the accuracy of the documents your company files.
5. Works With External Auditors
There will be times when most companies are go through an audit. This process can take a considerable amount of time and energy away from other tasks. The role of the accounting research manager also includes working with the external auditors and facilitating their activities.
By having a knowledgeable professional assisting with the efforts of external auditors, you may enjoy the best possible outcome from these events.
Financial and accounting matters can grow more complex as your company grows in size. So it can become pretty confusing and stressful when your company goes public. However, despite this, you simply cannot afford to have errors in your financial and accounting practices.
You must take steps to ensure that your documents are accurate and fully supported with realistic data. Hiring an accounting research manager may be one of the best steps that you can take to ensure that this happens. If you have personal experience with accounting research managers or special tips that you can provide to others, please leave a message below.