Accountancy incorporates a wide variety of duties and responsibilities. While accountants may share key attributes such as robust financial skills, attention to detail and a clear understanding of business ethics, the profession includes several different specialisms. These range from preparing tax returns and carrying out independent audits to investigating fraud and guiding companies through periods of difficulty.
Role of an accountant
An accountant designs the accounting procedures for an enterprise. He plays several roles in an organisation as follows:
(i) Record keeper
The accountant maintains a systematic record of financial transactions. He also prepares the financial statements and other financial reports.
(ii) Provider of information to the management
The accountant assists the management by providing financial information required for decision making and for exercising control.
(iii) Protector of business assets
The accountant maintains records of assets owned by the business which enables the management to protect and exercise control over these assets. He advises the management about insurance of various assets and the maintenance of the same.
(iv) Financial advisor
The accountant analyses financial information and advises the business managers regarding investment opportunities, strategies for cost savings, capital budgeting, provision for future growth and development, expansion of enterprise, etc.
(v) Tax manager
The accountant ensures that tax returns are prepared and filed correctly on time and payment of tax is made on time. The accountant can advise the managers regarding tax management, reducing tax burden, availing tax exemptions, etc.
(vi) Public relation officer
The accountant provides accounting information to various interested users for analysis as per their requirements.
