Who is an Investment Accountant, and What Do They Do?

June 10, 2021 | Written by: Sohail Afzal

What is an Investment Accountant

Accounting is a broad spectrum of financial management services. All of the services that come under accounting vary with each business function. And when we combine these business functions and their financial management, a consolidated business process is created. Usually, a senior or supervisor accountant is a person in any organization responsible for overlooking all sorts of financial activities of the business process.

An important area of accounting, where an accountant keeps track of the assets, cash investments, and other investments, is called an investment accountant. An investment accountant differs from regular accountants in various ways. For example, investment accountants tend to have different qualifications, experience, and functions than typical accountants or bookkeepers.

There are many similar functions between different fields of accounting as well. For example, a tax accountant can be responsible for financial planning for a company. On the other hand, an investment accountant can sometimes be referred to as a financial planner for a company.

How can an Investment Accountant Help Mortgage Brokers?

Investment accountants are accountants with a specific set of skills and experience related to investment management. Mortgage brokers are the people who have everything to do with investments. Their entire business is based on the investments made by their clients. But, then there are some internal investments to look after as well. This is where an investment accountant comes in. So, an investment accountant can help both individual mortgage brokers and mortgage companies by bookkeeping, maintaining investment records, etc.

How Investment Accountants line up with Asset Management Companies

Asset management companies take into consideration all types of assets for their clients. These assets are not limited to properties. This is why they may need an investment accountant to line up their day-to-day tasks and long-term financial management. An investment accountant can also serve as the account manager to look over all the accounting activities. From payroll management to direct clients’ asset management. An investment accountant can be utilized for all sorts of accounting areas in an asset management firm.

The Key Differences between an Investment Accountant and Financial Planner

Most people use the terms investment accountant and financial planner interchangeably. To some extent, there is no problem with such usage of these terms. But when it comes to core functionality, an investment accountant has a prompter job than a financial planner. Financial planners usually have to take care of the long-term goals for their employer or the end-consumer. A typical long-term financial planning goal may include wealth management, asset management, retirement plans, etc. But investment accountant will be responsible for financial forecasting, compiling financial statements, audit work, and other day-to-day accounting tasks.

The Take-Away

So, investment accounting can be excursively a particular job. Or it can be an acting role that you can assign to your regular accountant. The condition remains that if you are a business where the main product is related to the investments, such as mortgage brokers, asset management companies, etc., then you will need a pure investment accountant. These specific investment accountants may help a company establish the guidelines for their Automatic Investment Plan (AIP).

Contact GTA Accounting if you need help with your accounting.

Sohail Afzal CPA Toronto

Sohail Afzal, CPA, CMA, MBA

Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.

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