Function of Accounting Professional: An accountant performs financial functions related to the collection, precision, recording, analysis and presentation of a business, organization or company’s monetary operations. Accounting professionals use the financial records compiled by bookkeepers to prepare monetary statements and reports, and to carry out financial analysis. In addition to playing this general function, various types of accountants perform different, specialised functions.
Role of Accountant
The role of accounting professional might be summed up as under:
( i) Upkeep of Books of Accounts: The primary role of an accountant is to provide his services for maintaining systematic records of monetary transactions in order to determine the net revenue or loss for the accounting duration and the financial position as on a particular date.
( ii) Statutory Audit: Every limited company is needed to designate a chartered accountant as an auditor who is statutorily needed to report each year whether the monetary declarations have actually been prepared in accordance with the normally accepted accounting concepts, accounting standards and legal requirements which they reveal a real and reasonable view of the financial position and earnings and loss.
( iii) Internal Audit: In addition to statutory audit, a big company uses its own personnel to carry out internal audit to make sure that the transactions are taped, categorized and summed up in accordance with the recognized accounting procedures to guarantee that directions of the management are being followed throughout the company.
( iv) Budgeting: Budgeting suggests the preparation of organization activities before they take place. On conclusion of the real activities for a given duration, the organized activities are compared with the actual activities to learn the variation, if any.
( v) Taxation: An accountant can handle the taxation matters of a company and can represent before the tax authorities and settle the tax liability under the dominating statute. He likewise helps in lowering the tax problem by correct tax planning.
( vi) Investigation: Accountants are typically hired to perform investigation to ascertain the monetary position of the business for the details of interested parties.
( vii) Management Advisory Service: An accountant is mainly responsible for internal reporting to the management for preparation, managing, decision-making on matters for long-term plans. He provides management consultancy services in the areas of management details systems, expenditure control and examination of appraisal techniques.
( viii) Other Activities: Accounting professionals among many other tasks perform tasks of arbitrator registrars for settling of disputes, liquidators, cost accountants, and so on
Recommended
- Accumulated Liabilities
- Limitations of Accounting
- Depreciation Assistance Note
- Capital Structure
- Book Keeping
- Interest on Capital
- Accounting Quotes
- Double Entry System
- Book Keeping
