Roles Played By Accountants.
The term accountant is used to refer to a personnel who play the role of measurement, disclosure and providing credible financial information to the managers of a given organization. Accountants provide useful information which is meant to be used by various users in the organization. The main users of thee financial information provide by accountants are the managers. Managers have proved to use the information provided by accountants to make key decisions in the organization. Other users of information provided by an accountant are the creditors and the lenders of the organizations capital. Lenders use financial information record to assess the performance of their capital and the possibility of increase in the interest recorded.
There have been establishment of organizations which are staffed with accountants who are hired at a cost in order to provide accounting services. An example of an already established organization is the penrith tax accountant which focus mainly on tax accounting. All organizations require accountants as financial information is required in all aspect of decision making whether it is based on capital, stock and labor is all very much related to financial records. The judiciary is also equipped with accountants who are referred as judge accountants. Certified public accountants is a body which has been established to control and govern the practices of accountants to prevent misconduct or abuse of powers. The term used to describe rues and regulation which govern how financial practices should be practices is principle of accounting. Some of the principles of accounting include prudence, consistency and materiality which act as assumptions of how preparation financial records should be prepared.
Accounting is governed by principles which are require to be adhered to. The chattered accountants, chartered certified of accountant or certified public accountant are some off the bodies established in order to ensure compliance to the set rules and laws on accounting. Bodies which are responsible for setting the principles of accounting has also been endowed with the function of certifying qualified accounting organization and accountants. These bodies also play the function of punishing individuals who carry out professional negligence and unethical practices such as providing wrong financial information with an aim of acquiring a given benefit. Accounting has been known to demand qualification through which is only proved by passing tests given by the certified institute of accountants. Accountants who are not yet qualified can still work for qualified accountants by acting on minor issues. The actions carried out by unqualified accountants are the responsibility of the qualified instructor.
Accountants play different accounting roles which include tax accounting, cost accounting, audit and managerial accounting. Tax accounting involves the determination of an organizations tax liability and the amount of tax which an organization should pay. The second role off accounting involves cost accounting which refers to how much is used during the production process. Auditing of financial records involves independent examination of financial accounts in order to give credibility to what he records indicate.