Role of an Accountant
What is the role of an accountant?
The role of an accountant is generally described as someone who handles the financial records of the business and prepares the financial statements for them. There are different types of accountants though, and this essay looks at what roles these are in particular, looking at how they are similar and how they differ from each other. This essay will look at the role of the accountant in smaller businesses, like family businesses, and the wider business environment, showing how it affects and affected major issues of today’s business world, for example the credit crunch. The difference between the roles of a present accountant will also be explored briefly, comparing to older roles of an accountant towards the end of the essay. All the various roles will be brought together towards the conclusion.
The role of the accountant is one that belongs to the business environment. There are two main types of accounting – management accounting (internal) and financial accounting (external).
A management accountant role deals with recording and analysing financial records for the companies for which they work. These records are then taken into account with business decisions. These decisions relate to the manufacturing and to the selling of the companies’ goods and services. According to Wood and Sangster, management accountants are likely to maintain a budget system that helps managers plan and control activities. The budgets are prepared frequently, for example monthly (2008, p655). These budgets can also help motivate workers and meet objectives of the business.
Financial accounting is all the other roles that management accountants don’t do. These are for external users and have to provide annual statements, unlike management accounting. One example of financial accounting is Government accountants. These accountants work in the public sector and their role is to maintain and examine the records of government agencies.
The role of an accountant is generally described as someone who handles the financial records of the business and prepares the financial statements for them. There are different types of accountants though, and this essay looks at what roles these are in particular, looking at how they are similar and how they differ from each other. This essay will look at the role of the accountant in smaller businesses, like family businesses, and the wider business environment, showing how it affects and affected major issues of today’s business world, for example the credit crunch. The difference between the roles of a present accountant will also be explored briefly, comparing to older roles of an accountant towards the end of the essay. All the various roles will be brought together towards the conclusion.
The role of the accountant is one that belongs to the business environment. There are two main types of accounting – management accounting (internal) and financial accounting (external).
A management accountant role deals with recording and analysing financial records for the companies for which they work. These records are then taken into account with business decisions. These decisions relate to the manufacturing and to the selling of the companies’ goods and services. According to Wood and Sangster, management accountants are likely to maintain a budget system that helps managers plan and control activities. The budgets are prepared frequently, for example monthly (2008, p655). These budgets can also help motivate workers and meet objectives of the business.
Financial accounting is all the other roles that management accountants don’t do. These are for external users and have to provide annual statements, unlike management accounting. One example of financial accounting is Government accountants. These accountants work in the public sector and their role is to maintain and examine the records of government agencies.