The role of accountants in an organization.
Different businesses across the world are run majorly for profits and this has been the norm. Realignment of any business to be profitable requires a qualified accountant who deals with the measurement, analysis and final communication of the finical position of the organization. Before any financial report of a business or corporate organization is declared publicly, it takes a thorough check and great work by a qualified accountant who verifies and processes the necessary documents to support this. Most of the top management of different organizations depend on their accountants to give direction after a business period before they can brief the shareholders on the progress made.
The art of accountancy traces its origin from an Italian Luca in 1494 and has today become a common practice across the world. Through the accountants, all the economic activities run by the business are brought together, balanced to give the final organization financial position. Accountants are seen as the harmonizers of the business since they have great influence on what they give to the organization.
Being an accountant requires a high level of integrity and transparency since you will be accountable for a great number of people who have an interest in the organization. In every organization, the financial report that is prepared by the accountants will influence the decisions of the creditors, investors, regulators, and management in a positive or negative way. Accountancy is therefore viewed as a larger field hence has been divided into several segments to enable specialization and effectiveness in the processes.
Some organizations may have a single accountant handling all the segments around accountancy while others may separate the role according to the specialization of the accountant. The common categorizations of accounting that are majorly used by corporate organizations and others established businesses include:
Financial accounting: This majorly focus on financial reporting and provides a transparent report on the organization’s financial position to the internal and external users.
Auditing: Majorly works in an organization to verify the authentic business processes and verification of books of accounting once they are prepared.
Tax accounting: Focusing majorly on the preparation process of tax and tax returns in relation to the organization economic activities and government regulations to make sure all the processes are followed without compromise.
Cost accounting: Monitors on the cost to be incurred in relation to the benefits or support of the continuity of the business to avoid any gap of mismanagement.
Management accounting: Works to relate the economic activities, financial statements and the general analysis of the organization to support the internal decision making by the management.
Technology has boosted the effectiveness of accounting processing and management through the introduction of different support software. Under the accounting information system, different abilities have been brought together to make the work of accountants easier and very efficient.
Most of the operations in accountancy have been standardized in a way that ensures set rules and regulations are followed by different accountant across the world. There are different accounting organization and professional bodies that work on the accepted principals of accounting before they are approved and adopted.