Think of money as the blood of a business: without it, it will die. Simple, right? For the most part, it is. The hard part is keeping track of it all, but this is where revenue accounting will come in handy. For those not in the know, the revenue of a business is the income a company generates from their activities. This revenue is usually generated through sales. If you’re curious where you can find your revenue number, look at the first line of your income statement.
However, your revenue is not equal to your profits. Your profits are the extra money you make after balancing sales and spending. However, you’ll need your revenue numbers to calculate your earnings. Let’s take a look at the different kinds of revenues there are.
The two types of revenue you’ll run into are operating and non-operating. Operating revenue tracks the money you receive from business-related activities, like services and products. In contrast, non-operating revenue is money earned from side activities that are not related to your business’s usual activities, like investment profits or dividend income. Side activities that generate non-operating revenue are usually more sporadic than activities that generate operating revenue.
Does any of this excite you? If it does, you just might be an aspiring revenue accountant without even knowing it. Revenue accountants are usually senior accountants who work for large companies in specific industries, such as manufacturing, health care, and retail, to name a few. But how do you become a revenue accountant, anyway?
All accountants will need at least a bachelor’s degree, preferably in accounting or financial management. However, two years of experience and a couple of good references will sometimes get your foot in the door, too. Like most other office jobs, you’ll also need a robust set of both hard and soft skills. Hard skills include Microsoft Office skills, IT skills, and any other skills that may require training to learn. Soft skills include interpersonal skills that make you easy to work with, like empathy, genuineness, punctuality, and integrity.
Interestingly, this job suits analytical types quite well. It’s also great for those who excel at strategic thinking and multitasking. If you fit any of these descriptions, you might want to look into some accounting courses; it very well may be your dream career.
Duties of revenue accountant
Since accountants are in charge of the books and numbers within them, they’ll need to keep a close away on accounts payable and receivable. They also handle daily receipts, inter-company reports, spreadsheet files, communications to investors, and monthly revenue intake sheets. Furthermore, they need to record all monthly transactions accurately and help financial analysts update processing royalties and revenue tracking sheets. In essence, revenue accountants spend most of their time staring at and keeping track of a company’s sales numbers.
If you’re still reading, there’s a good chance you’re interested in becoming a revenue accountant. Visit COPAS to check out the revenue accounting boot camp program that can help you kickstart your career today.