Accountants engage in a wide variety of activities, which included preparing financial statements such as income statements, balance sheets and cash flow statements. Accountants are required to determine a company's profit and loss balance, and to audit the company's books at the end of the year. Some accountants are also required to keep track of a company's inventory. A common accounting method for most accountants is accrual basis accounting, which reports expenses when they are incurred. Cash basis accounting reports expenses when they are actually paid.

