The role performed by an accountant is important in modern business. They help the organization to determine accurately the profits and losses from doing business at any given time. They are trained to measure and maintain the financial records with accuracy. The information presented in financial statements is then used to make informed decisions.
Here are the main roles of an accountant:
1. Evaluating records
An accountant has the responsibility of evaluating records as provided by bookkeepers for purposes of establishing whether the organization is progressing and the areas it lacks improvement. Using the records provided by the bookkeeper, they prepare they financial statements.
2. Makes decisions about the accounts
An accountant makes decisions pertaining to the systems of the accounts that show the status of the organization. They study the financial statements of any business in order to give advice that help to improve future profits. They play an important role in tracking down profits and losses, receipts, fiscal measures and taxes for purposes of creating accurate records of the money that flows in and out through the company.
3. Cost accounting
Cost accountants has the responsibility of managing the costs. This is achieved by keeping track of the costs and performance of different departments within the organization. This creates a need of foreseeing changes in different departments and how they affect the overall performance of the organization. They study the losses appearing in the overall performance of the organization in order to suggest methods that can generate profits.
4. Preparing reports
Accountants are responsible for the numbers behind every company. They play an important role in adding and subtracting sums of money to determine what a company spends or makes and presents reports pertaining to these transactions. Therefore, they play an important role in advising persons responsible for running the company, particularly management, regarding the financial aspect.
5. Predicting the cost of the company
One of the most important roles of the accountants entails predicting the cost of the company’s strategies and thus helps with the overall development of the business through technical skills and knowledge. In the process, they identify areas of wastage of resources and inefficiency in the organization.
6. Treasury functions
An accountant plays the function of treasury through cash management and raising finance. This role ensures the organization has sufficient funds at any given time to run effectively.
- Accountant’s Desk: AFSB