Whenever the word accountant appears in our mind, we always think about a person doing calculations of accounting stuff. Well, it is true in some way but there are many other tasks as well that they perform daily. Due to their efficient calculation and skilled behaviors, many businesses provide a special place to their roles. In this guide, we are providing you the purpose of an accountant like what duties they perform, what are their key functions and how a business becomes incomplete without their presence.
We will learn in-depth about their purposes, aims, and roles. So that you can enhance your business growth by including some accountants into business functionalities. They will not only help you in classifying, summarizing, and recording data but also in some other key areas that we will discuss later. It is just a little glimpse of an accountant. If you want to know more about them then keep following this guide. Also, don’t forget to go through other topics placed on the website. They might help you in your business expansion and you can witness some significant growth in your enterprise. Now, let’s get into the article and learn in-depth what is the exact role of an accountant.
What is the Purpose of an Accountant?
An Accountant is far more than we knew. They have certain responsibilities and duties that cannot be assigned to anyone else. Their key responsibilities involve not only just preparing the profit and loss sheet but also tax returns, making independent audits, guiding companies through difficult time periods, and investigating fraud.
Like any other profession, an accountant is also required to have key knowledge, experience, and skills of his work. As it helps in business expansion. Without an accountant, there will be no business and no organization. So, it becomes mandatory to include a skillful accountant in business. Well, there are some other functions that they perform which more signifies their purpose. You can read below to know about them.
Functions of an Accountant
The concept of accountancy is wide so there need many key functions to be performed. These functions and responsibilities create the difference between an accountant or any other man. If anyone thinks that a normal man can perform the essential responsibilities of an accountant then it is totally wrong because an accountant is more than that. Now, let’s consider their functions.
1. Maintain Books of Accounts
Every business needs an accountant to maintain systematic records of financial transactions. Maintaining a book of accounts is a key responsibility of an accountant. It is manifested in the accounting policies and law that every accountant needs to conduct this thing. So, whatsoever service you seek from an accountant, maintaining a book of accounts is their priority. With your balance at the end of a specific year, you can get a plan for the future of business expansion. So, if you also have some plans for your organization then make sure to give your books of accounts to accountants.
Budgeting enables business owners to think of several businesses transaction and activities before their occurrence. Accountants do budgeting as their key responsibilities and help to make plans and ideas to provide an equal balance of business expenses and incomes. Whatsoever the result, it then compared with the budget to figure out the variation. An accountant is really essential to prepare the budget.
3. Manage Advisory Services
Management of Advisory Services comes under the major purposes of an accountant. In this service, they provide their best in various activities such as advisory related to the business operation, internal controls to management, and long-term plans. An accountant can keep you and your business secure with his duties towards the work.
Taxation is yet another purpose of an accountant. You can have various services from an accountant that will help you in every manner. For instance, you can get a quick glimpse of the tax liabilities of your enterprise. Also, they will provide you assistance in different matters like file returns, managing the tax matters of an entity, settle the tax liabilities of an entity, make representations before tax authorities. Moreover, an accountant also offers investment and various tax planning advice.
5. Internal Audit
Most of the time big-sized entities involve accountants and internal staff in an internal audit. There required a law to bring an internal audit that helps in recording, classifying, summarizing all the accounting transactions associated with the particular accounting year. Not only this but it also enables the organization to verify all other instructions are followed or not.
6. Statutory Audit
According to the law, a chartered accountant is responsible for auditing the books of the entities like firms, Limited companies, etc. They take care of the entities that make the financial statements according to the legal considerations, accounting principles, and standards. Moreover, they assure to provide a fair and true view of the financial position.
Accountants can also bring an investigation to get the knowledge of the financial position of other groups. They can do it on their own or by providing a payout to some external professionals to hire them. You need to be aware of the fact that external professionals are more confidential than the internal staff because they help in enhancing confidentiality.
8. Other Tasks
The accountants can perform some other tasks as well like cost accountant, liquidator, an arbitrator for settlement of disputes, and many more. With all these different activities, an Accountant becomes a relevant figure in the accounting world.
Through the guide, we have brought up all the essential roles that an accountant plays in any business. He is one of many sources that lead to business growth. I hope we get success in including the purpose of an accountant. If you have still some query then let us know in the comment section.