With more number of enterprises coming up in the industry, the demand for an accountant is very high. Today the role of an accountant is not restricted to updation of the expenses and income, but is diversified to be a strategic financial planner. With the experience gained from business operations, an accountant should be able to handle complex business decisions face by an organization. There are various transactions which occur in a day with an enterprise. All of these need to be effectively updated and evaluated.
Accountant as a Catalyst
A feasibility report is necessary that can relate the decision taken by the management is apt or not. An ideal accountant should alert the management about any discrepancies happened to any of the operations within the company. This is the right and whistle blowing activity to be done by an accountant while scrutinizing the financial transactions. It happens that there may be inappropriate accounting of transactions. As a normal course of action, you need to ascertain what the necessary steps are to rectify such error.
To err is common. As a matter of fact, one has to understand that there may be circumstances where misappropriation of accounting can happen. This has to be justifiably corrected with proper time. Any sort of omissions or errors that are committed by a processor needs to be immediately identified and once noticed has to be rectified. If it postponed for another day, one may forget leading to mismatches in the accounting. This can seriously affect the operations of the business. Fictitious amounts can sum up to cause wrong interpretation of the business. Therefore, an accountant needs to be very careful and vigilant while providing value to each of the account head.
How it helps for Critical Review of Performance
It has to be a practice to note down the priority accounting operation ever day. This can help in ascertaining that all of the activities are done end of the day before leaving the office. As a strategic financial planner, an accountant needs to critically assess the operations of the finance function. When considering the functions of an organization, all the activities somewhere has to be accounted into the books of account. Therefore it is necessary to analyze about the reason for entering the transaction.
An accountant has to critically examine the particular amount expensed. He need to seek clarification with the process head if he brings up particular bill for getting claim or reimbursement. The role of accountant does not limit to mere updation or reimbursement of the expenses. It is his duty to safeguard the interest of the company. So in case any reimbursements are to be done to any staff, the accountant need to see if the expense the staff has claimed for is genuine.
From Adhering Accounting Standard to Cost Controlling
Finance function is a crucial task in an organization. There are a lot of expenses that occur in an organization in a particular day. All of these transactions have to be updated on daily basis in adherence to the accounting policies and standards. A professional accountant can analyze what sort of expense or income is a particular transaction. Based on the knowledge gained from accountancy certification, it is updated. This helps the management to extract the financial report with respect to the specific purpose and requirement.
An accountant can ascertain if any particular process of a company has exorbitant cost. If such abnormal increase in expenditure is noticed, the accountant can escalate the matter to the reporting manager or to the internal audit department of an organization. Besides, it is the duty of the accountant to analyze if the expense is justifiable and has a valid cause for the same. It is also the responsibility of an accountant to enter particular receipt for a financial transaction in the books of account.
Help in Effective Decision Making
This ensures that the firm has properly accounted income for a particular period. With the help of accounting data, the management can take important decisions to go ahead. It reflects the performance of various functions of an enterprise. An accountant is a point of contact for an enterprise to ensure that all statutory regulations are complied with.
If you are a small sized firm or an entrepreneur, you can seek the services of an accountant consultancy by proving a reasonable cost. They can provide you with necessary accounting services along with statutory compliance activities at reasonable cost. A reliable accountant will also act as a mentor to guide you in taking wise decision to prosper. Therefore, the scope of accounting consultancy is much wider as a perpetual function for an enterprise at all times.