The Importance of An Accountant To A Given Organization.
Accounting professions involves having trained personnel’s who lay thee role of disclosing weaknesses and providing credibility to financial records through an comprehensive auditing process. Accountants provide useful information which is meant to be used by various users in the organization. Managers of organizations have proved to be the main users of financial information. Manager have been classified as users of financial records by making decisions which are based on what the financial information portray. Other users of information provided by an accountant are the creditors and the lenders of the organizations capital. lenders require the financial information reports so as to assess how their capital is being used and what levels of interest are they recording so as to determine whether to eject more capitals or draw the existing capital.
There have been establishment of business organizations which mainly focus on providing accounting services to interested clients at a significant cost. 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. Among organizations which require accounting services include the judiciary which is staffed with judge accountants. The practice of accounting is governed and restricted by statutes and rules which are set by bodies like the certified public accountants. 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.
The practice of accounting calls for compliance with the already set rules and principles. 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. This professionals are bodies are granted certain responsibilities by the statutes which include certifying organizations and accountants. This given professional bodies also impose punishments to individuals who practice professional negligence and misconduct. 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 liability of the non-qualified accountant are handled by the qualified accountants.
Accountants perform the function of tax accounting, auditing of financial records, cost accounting and managerial accounting. Tax accounting involves the determination of an organizations tax liability and the amount of tax which an organization should pay. Cost accounting as a branch of counting I used to determine the cost inquired during the production process. Auditing of financial record refers to a practice carried out in order to give credibility to thee available financial information.