Functions of an Accountant
Some jobs are of crucial nature and one such job is the job of an accountant. Accountancy is not everyone’s cup of tea as it takes time and a lot of study to master. An accountant performs various functions and some of the major ones are discussed below:
Maintaining Books of Accounts
Maintaining books of accounts is the most basic function of an accountant. He will keep up an efficient record of every monetary transaction of an organization. This enables the organization to prepare financial statements that help them to ascertain profit or loss . Also helps them to determine the financial position of an organization. In addition to this, maintaining books of accounts helps the management to take corrective decisions and to formulate future plans.
There are some organizations that shall be mandatorily audited by the auditor as per the law of statue. Moreover, if any organization exceeds the prescribed turnover limit, it is compulsory for them to carry out a statutory audit.
So it is the responsibility of the accountant to study the financial records of an organization properly. And further, use the best of his judgement to provide a true and fair view of such financial statements that may help the user to ascertain the financial position of the accountant.
Internal auditors or accountants are also responsible for internal audits in order to check the operational efficiency of an organization along with financial health. Statutory audit is done periodically to review the internal system and accounts of an organization.
It is the duty of an internal auditor to prevent the organization from any fraud and misappropriation. In addition to this, internal audits improve the accounting system efficiency and better control over the organization.
An accountant is likewise fit for dealing with tax assessment matters for a firm or a person. A chartered accountant can likewise represent his client in front of Tribunals and Courts to settle charge liabilities in the interest of them.
Another significant job of an accountant is that of a tax specialist. He has the learning and the information to prompt his customers on how they can save money on tax. So he can advise the customers in different ways through which they can handle their tax burden through improving the financial framework, investment and so forth.
An accountant can also do cost accounting for an organization to determine the cost-effectiveness. To do so they record, classify, summarize and classify the financial data related to cost. Then after analyzing the data, the accountant prepares a plan to control the excessive cost of an organization.
The Management accountant accomplishes more than calculating, he acts as an advisor in the administration of a business. They analyze the accounts of an organization and help the administration to make plans, decisions and so forth.
Accountants can also give consultancy services in their specialized areas. So to control the cost or to analyze the required working capital or any other accounts related work an accountant can help you as a guardian angel.
Accountants have across the board information and experience in numerous fields and businesses. So they are all around prepared to give their clients advice about finances, as for instance:
- They can advise whether to invest in a company or not.
- Helps the clients to choose the investment plans as per their requirement.
- They provide professional advice at the time of company expansion such as cost analysis of the project. Further, they also help the company to know the feasibility of such expansion.