Vital Roles of Accountants in Business Organizations
Accounting profession could be among the most disregarded professions because of its nature to cram numbers but it is among the most demanded profession in the field of business and finance worldwide. All organizations give their gratitude to accountants for their key role and responsibilities in ensuring stability and continuity of a business. Their roles range from preparation of financial statements to analysis of financial data making them the most important people in a firm. Unfortunately, many people confuse the role of independent auditors and accountants concerning financial data. Therefore, without public comprehension about accountants’ role in an organization, their value will be misinformed.
Roles of an Accountant
Financial Data Management
The key component in business operations and management is financial data. Improper management of these data could place a business into hot soup. Hence, people responsible in collecting and maintaining of these data are the accountants. They ensure that the data are in compliance with the lawful and acceptable procedures and policies.
Analysis and advice
As financial analyst, an accountant performs different types of analysis that helps an organization in decision making. These analysis make them end up deciding which supply order to make, payrolls and payment of bills. They offer advise concerning business operations such as future revenue expected, expenditure and revenue trend and financial commitments. They can also help in resolving irregularities that might occur whether due to errors or fraud.
Financial Report Preparations
The most important documents that determines an organizations continuity is financial statements. They are used by investors to confirm the financial position of a firm before arriving at a decision to invest in that particular company, by the government in taxation purposes, insurance firms in settling claims and by an organization in budgetary forecasting. They could be prepared quarterly, monthly, semi-annually or annually depending on business decision. It is therefore the role of an accountant to prepare these financial reports.
Compliance with deadlines
Preparation of financial records, either monthly, quarterly, semi-annually or annually, specific have deadlines that need to be met. Hence, it is the responsibility of an accountant to ensure that these deadlines are met without any delay. Moreover, they work with the auditors by providing them with relevant financial data necessary to be audited so as to present an opinion on their true and fair view.
Statistics reveals that employment opportunities of accountants is expected to grow by 13% from 2012 to 2022 because as the economy grows wider, accountants are needed to prepare and analyze financial records.