Accountant refers to a person who practices accounting or accountancy. Accountancy refers to the measurement, disclosure or provisions regarding financial information, which will enable managers, investors, tax authorities to make a decision regarding the allocation of resources. The accountant works for the financial area of the organization which involves collecting, recording, analyzing and presenting about the financial operations of the company. The role of accountant might vary based on the size and level of operation of the company. In the case of a small-sized business, the role of accountant might be limited to the collecting of financial data, entering and recording the data into the system. In the case of a middle-sized or large-sized company, the role might be beyond the conventional one. It might include the duty as an interpreter of financial information, adviser in decision making and communicator of financial data to stakeholders outside the organization. The accountants also handle third parties like customers, financial institutions, governmental body, etc. The accountants need to perform their roles based on certain standards without which their performance will not be correct and can harm the reputation of the entire organization.
Financial Data Management
Financial Data Management is one of the primary roles of an accountant which includes the collection and analysis of financial data of the company. The accounting structure of the company also plays a vital role in its operation. The role of the accountant is to safeguard financial data and record them based on the legal and accepted procedures and policies. Such information of the company must be safeguarded and kept in proper area as it helps in managing the company. The financial data management also includes other duties such as development, implementation, and maintenance of financial database along with developing methods to monitor and control.
Analysis and advising
The other role of the accountant is also to analyze financial data and to provide advice while making business decisions. The accountant generates information and forecast from the financial data which will enable managers to decide on crucial issues such as choosing suppliers, paying bills, handling financial details on a regular basis, etc. With respect to business operation, an accountant can analyze issues such as revenue and expenditures, future revenue expectations, and financial benefits from investments. The data analysis also helps to discover the irregularities made during recording transactions or any information that has been ignored previously. The accountant also provides strategies for coping with financial problems or in crisis, allocating resources efficiently, etc.
Preparation of financial reports
The key role of the accountant is also to prepare financial statements which can be monthly, quarterly or annual based on the accumulated and analyzed financial information. The reports prepared by accountant can be used by management as a support in decision making like the forecast of the budget in the coming year. Such reports are further used in implementing financial software in today’s time period such as Hyperion, Excel, etc.
Compliance
The role of accounting also involves compliance with the deadlines and requirements of the business. It is the duty of the accountant to meet the deadlines of all financial reporting not only within the organization but also of external requirements. The reporting within the organization such as quarterly or annual reports also possess deadlines which need to be fulfilled by the accountant. Moreover, the taxation filings and issues need to be monitored on a regular basis. The audit process of the firm is also coordinated under the guidance of accountant which requires the preparation of financial data.
An accountant must also work along with other professional bodies such as public, management, internal auditing and government accounting. Accountants also supply information to public accountants who work as a consultant, auditor, etc. They also work with the government in need for examining the financial records of the private firm in which they work for the taxation and regulation purposes.
Public interest
The emerging role of accountants also includes the duty towards the general public. The accountants deal with wide range of issues which has a public interest in it. It is quintessential for the accountants to match with the acceptable standards such as GAAP and also to help the organization work ethically. The emerging issues with organizations are the lack of clear distinction between what is ethical and what is not. The accountants are trusted by the public, whose various decisions are interlinked with the information provided by accountants such as investments in shares, borrowing loan, finding employment, etc. It has a wide reach in society as well as in the capital markets. The confidence generated by the financial data produced by accountants lie at the basis of the public trust and value for the entire business.
Similar to the advancement in various fields, the roles, and responsibilities of accountants are continually challenged. The expectation of public is usually high. The value of accountants is judged based on the accountability towards the organization and to the public. Accountants are the vital players in an organization which helps to sustain growth. They need to fulfill their roles even in the drastic change of scenario in the external environment. The accountants provide quality financial reporting to the general public with reliable financial information.
