Role of Accountant: An accountant performs financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or company’s financial operations. An accountant has several roles and responsibilities to meet in their job, both in terms of their competence at carrying out accounting practices as well as their ethics and approach to the job.
In most cases, accountants use the financial records compiled by bookkeepers to prepare financial statements and reports and to perform financial analysis. An accountant is engaged in accountkeeping. In addition to playing this general role, different types of accountants perform different, specialized roles. Must Check Petty Cash Book.
Role of Accountant
The role of the accountant may be summarized as under:
(i) Maintenance of Books of Accounts: The primary role of an accountant is to offer his services for maintaining systematic records of financial transactions to ascertain the net profit or loss for the accounting period and the financial position as of a particular date.
(ii) Statutory Audit: Every limited company is required to appoint a chartered accountant as an auditor who is statutorily required to report each year whether the financial statements have been prepared following the generally accepted accounting principles, accounting standards, and legal requirements and that they show a true and fair view of the financial position and profit and loss.
(iii) Internal Audit: In addition to statutory audit, a big company employs its staff to conduct internal audit to ensure that the transactions are recorded, classified, and summarized following the established accounting procedures to ensure that instructions of the management are being followed throughout the company.
(iv) Budgeting: Budgeting means the planning of business activities before they occur. On completion of the actual activities for a given period, the planned activities are compared with the actual activities to find out the variation, if any.
(v) Taxation: An accountant can handle the taxation matters of a business and can represent before the tax authorities and settle the tax liability under the prevailing statute. He also assists in reducing the tax burden by proper tax planning. You may also like Rules of Debit and Credit.
(vi) Investigation: Accountants are often called upon to carry out investigation to ascertain the financial position of the business for the information of interested parties.
(vii) Management Advisory Service: An accountant is largely responsible for internal reporting to the management for planning, controlling, and decision-making on matters for long-term plans. He provides management consultancy services in the areas of management information systems, expenditure control, and evaluation of appraisal techniques.
(viii) Other Activities: Accountants among many other duties perform the duties of arbitrator registrars for settling disputes, liquidators, cost accountants, etc. Must Check Basic earnings per share.
