RE: Roles of an accountant
An accountant is a very important person with a company. It is important to note that an accountant always perform all financial related roles within an organization. The main objective of an organization is to maximize its profits. This objective can be achieved well if the organization accounts for most of its funds. The responsibilities of an accountant can be explained coherently as follows:
Financial data management
Financial data management is very important to any company. Any organization always deals with funds that must always be accounted for. Such data needs to be managed properly to ensure that transparency is achieved. An account will therefore ensure that financial data is kept according to stipulated laws and accounting principles. It is also important to highlight that a company should have a vibrant accounting system that will ensure that financial data is well managed.
The financial data of the company are always very fundamental in determining its performance. The data can be kept in form of financial statements that may include the balance sheet, cash flow statements, income statements, profit and loss accounts, among others. A strong financial database should therefore be developed within an organization to ensure that an accountant has easy work.
Analysis and advice
Accounts are always mandated to carry out an analysis of an organization. This analysis is always done to portray the performance of the organization. An accountant always uses financial statements to carry out a vibrant analysis. Such analyses are always done in an annual basis. After a thorough analysis has been done, an accountant will have to advice the company on how to improve its performance.
For instance, an accountant will have to compare the total assets and total liabilities of the organization to ascertain whether the company is highlighted indebted to the outside world. It is important to highlight that an accountant can also analyze the profitability of the company. This can be done by calculation of profit margins. The accountant will then have to advice the company on the performance and issues that can be put in place to ensure that its performance is improved to meet stipulated levels. An accountant can also carry out analysis that is aimed at solving the discrepancies that exist within the financial status of the company.
Preparation of financial reports
An account always prepares financial reports. The reports are always prepared in quarterly, semiannually, and annual periods. These reports are always very important for the company. This is because the company always use them to compare the performance of ye company in different periods. It is therefore important to highlight that an accountant must prepare a good report that gives a true reflection of the performance of the company. Financial reports should therefore be prepared with a lot if keenness. This will ensure that the discrepancies that always exist in such reports are significantly reduced. It is also important to highlight that the reports prepared by the accountants must always undergo a thorough scrutiny to ensure that they are accurate. It is therefore the ultimate responsibility of the accountant to ensure that all required aspects are captured in the financial reports.
It is important that compliance with stipulated rules of the company is a very significant issue for its development. An accountant therefore has the responsibility to comply with all the terms and conditions of the company. For instance, an accountant must always ensure that he complies with the deadline given for submission of the reports. It is also important to highlight that an accountant has a responsibility to ensure that he complies with the set accounting standards.
In addition, an accountant must always ensure that he adheres to the financial periods as stipulated by the company. For instance, if the company requires that financial reports be given in quarterly manner, he must ensure that he adheres to that without fail. This will ensure that there is consistency in the way financial reports are done within the organization.
Coordination wit the external affiliations
An accountant will always ensure that it cooperates with external affiliations to ensure that he delivers some important reports to them. For instance, in case financial reports of the company are needed by external auditors, an accountant will be required to provide them. An accountant is required to provide very liable and true documents that pertain to the company upon request. It is also important to highlight that the financial institutions may also require to be supplied with relevant financial statements. These can only be done by the accountant. It is important to note that the performance of any company can only be known when accounts give very credible information to the external affiliations.
An accountant may also advice, creditors, and shareholders about the performance of the company. It is clear to highlight that most creditors and shareholders always desire to know how a company performs. This always assures them of return on their capital. An accountant also has the mandate to advice the tax personnel as well as the government officials by pertinent issues within the organization. Briefly, an accountant is always rusted to deliver very important financial information about an organization.