The simplest description of an accountant is the professional who performs financial functions related to the collection, recording, analysis and presentation of a company or organizations operations. Depending on the type and size of the business, the accountant may also have a variety of administrative roles. The following are some of the roles of accountants in business.
Financial data management
The financial aspect of a business is one of the most important to its operation. Without finances, the business is unable to progress. One of the major roles of an accountant is to collect, update and keep the company’s financial data safe. The accountant ensures that these financial records are in accordance with the law and policies of the company. This financial information is used in operating and managing the business and that is why it should be protected and well maintained. The accountant may be further responsible for managing financial databases, and establishing and monitoring control procedures.
Accounts also operate as analysts. They can analyze financial data and give advice or recommendations when making business decisions based on these analyses. The accountant may give their financial perspective on who the best suppliers to order supplies from are, the best ways to pay employees and other intricate financial details that affect daily business operations in the organization.
Some of the analyses carried out by accountants include revenue and expenditure trends, revenue expectations in the future and financial commitments, among others. Their advice and recommendations include developing new ways to make efficient use of resources or strategic recommendations for difficult financial situations.
Preparing financial reports
Accountants prepare financial statements and reports such as monthly or annual accounts. These reports are based on the compiled and analyzed daily financial information from the business’ operations. The accountant has to create accurate end-year closing documents that may be used in continued support and management of the business’ budget and even forecast future activities. These financial reports are useful to each department in the business as it helps each sector of the business develop and implement new financial practices for the best of the organization in general.
There are some legal requirements that all businesses should meet in their operations. Besides the legal, there are also internal policies and deadlines that the financial aspect of business should meet for proper business operation. Besides the internal business policies, there is also external pressure to meet deadlines for quarterly and annual financial reporting and filing tax returns that the business is held accountable for. Through the accounting docket, internal audits can also be performed on the business.
Business affiliation with external organizations
Accountants work with many other business professionals in performing their duties. When it comes to financial matters, the accountant is the external link to other industry players and government accounting among other organizations. The accountant is the individual who presents the business tax records to the tax authorities. The accountant also works with government officials to ensure the business meets taxation and government regulations in its financial operations.
Leorna Smith is a CPA with an accounting firm. Visit our website to be connected to accountants in your area.