What Is an Accounting Flowchart?
An accounting flowchart is a graphical representation of an accounting information system. In other words, it’s an illustration of a financial report. Businesses and accounting firms use this flowchart to visualize bookkeeping processes and standard procedures.
How to Design an Accounting Flowchart
According to the Bureau of Labor Statistics, the number of American accountants is expected to rise by 2028. Indeed, the competition is tight, but being systematic can help you stand out. One way is by using a flowchart to illustrate workflows. Tips are laid out below to help you make an effective accounting flowchart.
1. Fully Understand Flowcharts
Most people already know what flowcharts are. If you’re trying to make one, it’s important to fully understand what this diagram is and how to go about with the content and design. Before making this finance flowchart, do some research and gather as much information as you can about it.
2. Identify the Main Topic or Idea of the Flowchart
All business flowcharts start with the main topic before it branches out to the different processes and activities. Before talking about accounts payables, accounts receivables, or income statements, make sure to identify the primary idea of your flowchart.
3. Use the Standard Symbols or Shapes for the Content
Flowcharts use symbols, but not just any symbol, these are standard shapes to represent various aspects of the diagram. For example, ovals are used to represent the start and end of the charts, while rectangles are used to represent the steps. To learn more about these, refer to the FAQ section below.
4. Keep Everything Together in One Page Only
Don’t overwhelm yourself or your audience with a massive flowchart, keep it concise, and make sure not to go over one page. If you still need to discuss matters but your simple chart won’t allow it, it’s best to prioritize and get rid of details that are not that important.
5. Add Colors or Any Enhancement to the Design
Lastly, give some life to your flowchart by adding some simple graphics to it. We would recommend that you use colors on the symbols that contrast with the colors on the background. This will bring more attention to your flowchart than if you leave it dull and unappealing.
What is the purpose of flowcharts?
- Flowcharts help define the company’s processes.
- Flowcharts aid in detecting business issues and finding solutions.
- Flowcharts provide clarity and transparency of the workflow.
What are the standard symbols used in flowcharts?
- Oval - Symbolizes terminators (beginning and end).
- Rectangle - Symbolizes processes, steps, or activities.
- Diamond - Symbolizes decisions made.
- Parallelogram - Symbolizes action plans.
What are the major accounting areas?
- Financial accounting.
- Cost accounting.
- Management accounting.
What are the responsibilities of accountants?
- Explains financial details by gathering and analyzing data.
- Prepares balance sheets, income statements, and accounting reports.
- Settles financial discrepancies through data collection and analysis.
- Suggests action plans for the management.
- Records all accounting transactions.
How much has the accounting services grown in recent years?
According to the website, IBISWorld, the accounting services have grown by 2.4% from 2015 to 2020. Additionally, it is expected to grow even further in the next 5 years.