Role of Accountant in Business
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1.
Financial Data Management:
One of the primary
roles of an accountant usually involves the collection and maintenance of
financial data, as it relates to a company or firm. The accountant ensures that
financial records are maintained in compliance with lawful and accepted
procedures and policies on the corporate level.
2. Analysis and Advice:
As analysts, accountants may perform
certain types of analysis using financial data that is used to assist in making
business decisions. From deciding which kinds of supplies to order, payment of
bills to payroll, the accountant handles many intricate financial details on a
daily basis. Advising on business operations can include issues, such as
revenue and expenditure trends, financial commitments and future revenue
expectations. The accountant also analyzes financial data to resolve certain
discrepancies and irregularities that may arise.
3. Financial Report Preparation:
Accountants typically prepare financial
statements that may include monthly and annual accounts based upon the
financial information that is compiled and analyzed. The preparation of financial
management reports can include accurate quarterly and year-end closing
documents. Reports compiled may be used in connection with the continual
support and management of budgetary forecast activities.
4. Compliance:
An accountant may also be responsible for
ensuring that all financial reporting deadlines are met, internally and
externally. For example, quarterly, semi-annual and annual reports all have
specific deadlines, as well as some tax implications. Monitoring and supporting
taxation issues and filings can also be a responsibility of an accountant. The
accountant also usually coordinates the audit process by assisting with
financial data preparation.
5. External
Business Affiliations:
Often, accountants must work with
financial professionals from the four major fields of the industry: public,
management, internal auditing and government accounting. Accountants may
provide data to a public accountant, who acts as a consultant, auditor and tax
service professional. Corporations, nonprofits, organizations and governments
use management accountants to record and analyze financial information of the
businesses in which they are employed. They usually advise company executives,
creditors, stockholders, regulatory agencies and tax personnel. Accountants may
also work with government officials who are examining and maintaining the
financial records of the private business for whom an accountant is employed,
in connection with taxation and government regulations.
6.
Planning and controlling:
Accountants makes plans and policies for a
desired objective and then take action for its achieving. For this purpose
accountant take different measures which may say be its limits or controls.
7.
Monitor/Performance Evaluator:
Accountant monitor the activities of sale
and marketing and purchase department. Accountant in some organization also
play the role as like internal auditor and senior accountant as well.
8.
Business Decisions:
Outside parties may
decided to invest in a company based on its economic performance as shown on
the financial statements, but there are other ways to use the financials
statements to make business decisions. By carefully reviewing the financial
statements companies can make best use of their assets.
Companies can use
the statement of cash flows to make sure they are collecting all
the cash they are due. Companies can also choose to delay major purchases or
the retirement of equipment based on the affect that transaction would have on
the financials statements.
9. Ethics and
Approach:
It is the responsibility of an accountant to
ensure they’re working within the law at all times. For example, an accountant
might give advice on how a person could reduce their tax bill, but they
shouldn’t be advising a person to do something illegal, such as deliberately
misinforming the relevant authority about business revenues or earnings, for
example.
An accountant should also notify the relevant
authorities if they become aware of a person or business that is breaking the
law within their financial affairs.
10.
Impartiality:
It is crucial that
accountants maintain their impartiality; their role is to advise clients and
act as they’re instructed, not to try to sell services. Yes, accountants will
naturally tell clients what additional services they provide and how they might
benefit from using them, but they shouldn’t be pushy or insistent while doing
so.An Accountant’s Job Role Accountancy is one of the most detailed and diverse roles in the finance industry and as such accountants are required to be competent in a number of areas.
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