Chief accountant

What it means

The chief accountant heads the accounting department and is responsible for accurate books, the annual financial statements, tax returns and meeting deadlines. They set accounting policy and internal procedures and are the contact for auditors and the tax authority.

In larger companies they lead a team of accountants, payroll accountants and receivables and payables staff, organise the month-end close and prepare reports for management. In smaller firms an outside accounting firm often fills this role.

In Slovakia the chief accountant role is not tied to a statutory licence, but employers expect relevant education and experience. A voluntary way to demonstrate expertise is the title of certified accountant awarded by the professional chamber.

How it works in practice

The chief accountant prepares the financial statements and materials for the audit, liaises with the auditor and deals with findings. In a tax audit they represent the company, prepare requested documents and explain the procedures used.

An important task is internal control: setting up invoice approval, segregation of duties, account reconciliations and regular balance checks. Well-designed procedures reduce the risk of errors and fraud and speed up closings.

The chief accountant is also a partner to management, preparing reports, flagging the tax consequences of decisions and helping with planning. In smaller companies without a finance director, they often take on some of those tasks too, such as cash flow management or dealing with the bank.

What to watch out for

By law, responsibility for the accounts lies with the reporting entity and its statutory body, not with the chief accountant. A director therefore cannot shift responsibility onto the accountant even if they employ them, although the chief accountant may be liable to the employer for damage they cause.

If the chief accountant leaves without handing over access, procedures and work in progress, the company can be paralysed for months. Documented procedures, a deputy and a thorough handover when the person changes, including electronic mailboxes and signing rights, are worthwhile.