Lots of companies' owners ask questions about the need of an accountant. They usually say, they have invested thousands of dollars on buying a computer and also they have heard from someone reliable that they can do their accounts on the computer, instead of hiring accountants. In the past, when there is no computer, accountant collects all their invoices, statement and entered all the information into the ledgers and prepared financial statement. As we know, entering all the financial information into the ledgers is called book keeping. Now we have computer for all that. It doesn't mean accountant stop at book keeping. Having a computer to do book keeping helps, but a lot of work has to be done manually.
ACCOUNTANT:
Accountant is the backbone of any business, because accountant has to handle the financial records of the company and preparing the financial statements, which is organised for the big decision maker of the company. Accountant also needs to monitor reports, sales and an individual performance with the company.
The role of the accountant includes;
Record financial transactions
Recording profits
Wages
Pay roll
Preparing cash flows, cost investigation
Preparing profit/ budget target
Profit and loss account
Tax return
Supplier information
Business transactions
Record creditors/ debtors
The accountant has to make sure that all the expenses of the company is used in the right place, and classified mainly in tax reason. A good accountant will always have a good knowledge of which expenses that, which expenses are useful and which are not. Accountant also knows that profit taxable and the profit that's in companies account are different.
Accountant may also give advise on tax issues regarding the business, and may be able to show some ways of tax saving. Usually accountants are not tax specialists; they are just saving their client money.
Now day's accountants are also giving advice to their clients on managing business in a right way. They also help business in preparing accounts for the bank. Some companies need loan form the bank, so bankers certainly have to check the companies account, if accountant is satisfy and giving a fair picture to the company that they are satisfy with your account transactions, then banker will easily feel to consider their loan application.
Accountant also helps companies on preparing their annual cash flow forecasting or budgeting, as well as arrangement for finances. They will also help companies' info casting cash that how much companies can get in the coming months and where they have to invest it, which can give extra income to their business.
ROLE OF AN ACCOUNTANT:
There are some examples of different accountants, who are working in different sectors.
CHARTERED ACCOUNTANT;
They are responsible for financial reporting, taxation, forensic accounting and corporate finance. Chartered accountants play a important role by providing professional advice for maximizing profitability. They work in different firms including, public firms, industry, public sector and government.
PUBLIC ACCOUNTANTS:
Public accountants are responsible for auditing, tax and consulting their clients, usually they are from governments, corporation, organisation and individuals.
Example:
Public accountants concentrate on tax matters, such as advising companies on advantages and disadvantages of tax. They are advising on employee health care benefits, controlling safeguards assets and preparing financial statements.
Public accountants generally have their own accountancy business. Some public accountants are specialists in forensic accounting. They are investigating and interrupting such crimes as securities fraud, bank reptiles and money laundering. Forensic accountants have knowledge of accounting and finance with law and investigative techniques. They generally work with law enforcement personal and lawyers.
MANAGEMENT ACCOUNTANTS:
These accountants are responsible for recording and analysing financial transactions, budgeting, performance evaluation, cost and assets management. Usually management accountants are part of executive team. They analyse and interpret the financial statement that corporate executives need to make like sounds business decisions. They also prepare financial reports for non management groups. Like creditors, regulatory agencies, stock holder. They may work in planning and cost acting.
GOVERNMENT ACCOUNTANTS:
These accountants works in a public sectors maintaining and examining the record of government accounts and record of government accounts and auditing private businesses and individual. Whose activities are subject to government rules & regulations or taxation?
Government accountants employed by federal, state and local governments. There responsibility is to guarantee that revenues are received and expenditures are made in accordance to rules and regulation. Those who are employed by federal government may work as revenue service agent or In financial management or in budget analyse.
INTERNAL AUDITORS:
Internal auditors are responsible for auditing internal records and check for miss management waste or fraud in an organisation. Internal auditing is increasingly important area of accounting and auditing. Internal auditors check and evaluate firm, their financial and information system, management procedures and internal control to ensure that records are realistic and controls are adequate to protect their fraud and waste. Internal auditors review company operations, evaluating their efficiency, effectiveness, corporate policies and procedures, laws and government regulations.
There are many types of highly specialized auditors, and working in different sectors like engineering, legal, government, bank and organisations auditors. Internal auditors also control organisation computer system to ensure the reliability and integrity of the data.
