Role of an Accountant in a Business Organisation :
Accountant occupies an important position in a business organisation. He plays an important role in the organisation. He performs a number of functions in a business organisation.
The various functions of an accountant of a business organisation :
1.Traditional function
2. Finance function
3. Planning function
4. Control function
5. Other functions
1. Traditional function:
He collects financial information about the business and presents the same to the owners of the business at the end of the accounting period.
2. Finance function:
He ensures that the funds required for the business are obtained at the lowest cost, and they yield the highest return on their investment.
3. Planning function:
He plans and takes important decisions. His planning covers investment on capital projects, budgeting of expenses, maximisation of profits, etc.
4. Control function:
He controls the operations of the business. He controls the operations:
(a) By making the various departments and the persons aware of their respective responsibilities.
(b) By assisting the various departments and the individuals in achieving their tasks.
(c) By co-ordinating the activities of the various departments and individuals.
(d) By evaluating the performance of the various departments and the persons.
(e) By ensuring that the actual performance of the various departments and the persons agree with the standard performance expected of them.
5. Other functions:
He performs a number of other functions also. They are :
(a) He determines the tax policies and procedures of the concern.
(b) He supervises and co-ordinates the preparation of various reports required to be submitted to the Government.
(c) He carries out continuous appraisal of Government policies, economic conditions and social forces and interprets their effects on the business.
(d) He ensures the physical protection of the assets of the business through adequate internal control and proper insurance coverage.
Accountant occupies an important position in a business organisation. He plays an important role in the organisation. He performs a number of functions in a business organisation.
The various functions of an accountant of a business organisation :
1.Traditional function
2. Finance function
3. Planning function
4. Control function
5. Other functions
1. Traditional function:
He collects financial information about the business and presents the same to the owners of the business at the end of the accounting period.
2. Finance function:
He ensures that the funds required for the business are obtained at the lowest cost, and they yield the highest return on their investment.
3. Planning function:
He plans and takes important decisions. His planning covers investment on capital projects, budgeting of expenses, maximisation of profits, etc.
4. Control function:
He controls the operations of the business. He controls the operations:
(a) By making the various departments and the persons aware of their respective responsibilities.
(b) By assisting the various departments and the individuals in achieving their tasks.
(c) By co-ordinating the activities of the various departments and individuals.
(d) By evaluating the performance of the various departments and the persons.
(e) By ensuring that the actual performance of the various departments and the persons agree with the standard performance expected of them.
5. Other functions:
He performs a number of other functions also. They are :
(a) He determines the tax policies and procedures of the concern.
(b) He supervises and co-ordinates the preparation of various reports required to be submitted to the Government.
(c) He carries out continuous appraisal of Government policies, economic conditions and social forces and interprets their effects on the business.
(d) He ensures the physical protection of the assets of the business through adequate internal control and proper insurance coverage.
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