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. Managers of organization have proved to be the main users of information provided by the accountants. Manager have been classified as users of financial records by making decisions which are based on what the financial information portray. Individuals who lend the organization through loans and credits are also interested in the financial information provided by the accountants. 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. The practice of accounting is carried out to almost all organization as financial records are very important when it comes to decision making. 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 rules which govern the practice of accounting are referred as principles of accounting. The principles of accounting include prudence, consistency and materiality.
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. The mentioned bodies are charged with responsibilities of certifying organizations and individual 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 have not yet qualified in accounting can also work under the guidance of qualified accountants in a given organization. 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 is carried out to determine the tax liability of a given organization. The second role off accounting involves cost accounting which refers to how much is used during the production process. Auditing involves giving credibility to financial information.