An accountant is a person whose responsibility is to keep and inspect the financial accounting of an organization or business.
If you are new, obviously you will conscious of what is financial accounting? Here is the answer:
Financial accounting helps to classify, analyze, summarize, and record financial transactions of the company.
So, the accountant’s responsibility bookkeeping, collection, business financial presentation, department financial operation with highly accuracy ration.
In small businesses or organizations, an accountant’s role may primarily bookkeep, financial data optimization financial entries and report generation.
But, in the middle and large size companies, the accountant plays the role of a financial adviser and financial interpreter.
Accountant and Accounting Roles in Business Operation
In our earlier discussion, I have defined the accountant’s role. Here I’m going to elaborate on the accounting role in business operations.
Accounting: In 1994, Luca Pacioli, an Italian monk, first time introduced the system of double-entry bookkeeping. He laid the foundation for the modern system of accounting.
There are some roles in accounting within a business, including:
- Accounts (both financial and management)
- Tax returns
- Financial reports, etc.
Companies have to comply with the regulatory body in their country. Information such as financial statements and register of directors have to submit to the supervisory body,
Companies have to comply with applicable law. For example, in the UK, the Companies Act is:
There are numerous requirements of the Companies Act, including submitting an account, which is “true and fair.”
The responsibility for preparing statements lies with the directors, although they can delegate the preparation to a suitable person.
as well as professional bodies, such as ACCA that regulate their members there is also the (IASB)
International Accounting Standards Board, which looks at harmonizing accounting standards around the world.
Standards produced by the IASB are called IFRSs (International Financial Reporting Standards).
Read more full forms and meaning of other financial or economic terms.
I tried to figure out the accountant and the role of accounting in business. So, If you feel any weakness about this article, let me know in the comment below.