Accountants and their Functions to Businesses
An accountant in any firm is responsible for all the financial activities that a company or business undertakes. This includes but is not restricted to financial analysis, generation and management of financial reports, accurate recording of business finances and various kinds of administrative functions within the business.
Handling and maintenance of financial data is one of the most important roles of accountants. While small sized organizations primarily use accountants for financial upkeep and data handling, medium to large businesses also employ them for financial analysis, interpreter and advice. Accountants often also deal with other parties such as vendors, suppliers, and sometimes even customers. Some of the various roles played by accountants in all types of businesses are mentioned below.
Financial Analysis and Advice
Financial advisers take into account all the financial data and the current business status of the company and offer key strategic advice on business issues. Accountants form a key part of such teams. Accountants here play numerous roles such as keeping track of bills and earnings, advising on business operations, projecting revenue expectations, prioritization of processes and handling all kinds of financial records and data. Such analysis of financial data reveals irregularities, errors and inefficiencies in business operations.
Preparation of various Financial Reports
Accountants prepare various kinds of financial statements and records of earnings and losses. After analyzing all kinds of financial data accountants identify areas where there is inefficient utilization of capital or sectors that are proving to be loss generators. Such financial reports not only play a vital role in determining the health of the organization, but also provide visibility in the direction in which the company is headed. Monthly accounts and year-end closing statements are both vital reports that are necessary in daily operations.
Ensuring Compliance and Regulations
One of the most important roles that accountants play involves them ensuring that the organization follows all the business regulations and norms set by the government. This includes, paying of taxes, ensuring proper payment of wages and generating accurate quarterly and annual financial reports. The earnings and profits of the company must be clearly communicated along with the amount of inventory that the company owns. Ensuring that all of the regulations are followed along with proper accounting of taxes is one of the most vital jobs performed by accountants. This makes them important units in any financial organization or business.
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