5 Major Roles of accountants in a business

5 Major Roles of accountants in a business

We are used to hearing the term accountancy but might not understand the roles of the people involved. Accountants are one of the very crucial members of staff required in any business company and are mainly associated with financial operations of the company. They have a wide role of duties allocated to them as discussed in depth in the breakdown below.

1. Preparation of financial reports

In a business set up, the accountants are responsible for using financial information analyzed and compiled to prepare financial statements either on a monthly or annual basis. The financial reports processed are very important since they allow the operation of various activities in the business which include: Management of activities associated with budgetary forecast development, implementation as well as operations of the financial systems.

2. Financial data management

This is one of the core roles carried out by accountants in an organization. It mainly involves the collection and maintenance of financial data . In this case the accountant ensures is in charge of ensuring that financial records are maintained in accordance to lawful policies as well as procedures on the corporate level

3. Carrying out analysis and offering advice

Most of the decisions carried out in a business organization are reliant on analysis made on financial data associated with the organization. This kind of analysis on financial data is specifically carried out by the accountants. This kind of analysis is important in that it helps in deciding a couple of factors like the choice of supplies to order or payment of bills to payroll.

In addition, they can also advice on factors like: revenue and expenditure trends and future revenue expectations just to mention but a few.

4. Regulatory as well as reporting compliance

It is also the duty of accountants to ensure that both internal and external financial deadlines are met. Some of the factors which have deadlines are tax implications as well as either semi-annual or annual reports of the organization. Another role carried out by the accountants is coordinating the process of auditing by preparation of financial data.

5. External business affiliations

Being an accountant implies that you have to work with people from different fields in the industry ranging from government accounting, internal auditing and management just to mention but a few. They are responsible for working with government officials who are in charge of examining as well as maintaining financial records of the business in relation to taxation or government regulations.

They are also in charge of providing data to a public accountant who acts as a consultant, auditor as well as a tax service professional. Non profit organizations as well as governments also use management accountants for the role of recording and analysis of financial information of the business they are from.

From the breakdown above you can now understand some of roles played by accountants in any given organization. We can conclude that accountants therefore play a very major role in any particular company and can therefore be referred to as the backbone of the success of any given business organization.

April 2020