The Importance of Accountants To A Given Organisation
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 play a major role in the organization as the information they provide are used by various departments and individuals in the organization. Managers of organizations have proved to be the main users of financial information.
The Managers of a given organization use the provided information to make key decisions. Other users of information provided by an accountant are the creditors and the lenders of the organizations capital. Other users of financial information include the tax authority, employees and potential investors require the accountants report so as to assess the returns of their investments in order to enable them know if they will inject additional investments or draw the current investments.The tax accounting role has led to the accountants penrith being branded with a new title of tax agents penrith.
There have been establishment of business organizations which mainly focus on providing accounting services to interested clients at a significant cost. An example of such established organizations include the tax accountant penrith. The act of accounting is practiced in almost all organizations as financial records are maintained by all organizations.
The judiciary is also equipped with accountants who are referred as 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 certified public accountants penrith are responsible for setting principles of accounting which govern how the practice of accounting should be carried out and to ensure that no given accountant is violating the already set rules. Some of the principles of accounting include prudence, consistency and materiality which act as assumptions of how preparation financial records should be prepared.
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. Bodies which are responsible for setting the principles of accounting has also been endowed with the function of certifying qualified accounting organization and accountants. The bodies set also play the role of carrying out corporal punishment to individuals and organizations which carry out unethical practices and abuses accounting power with the aim of gaining advantages in terms of cash and bribes.
The practice of accounting involves carrying out tax accounting, cost accounting, managerial accounting and auditing of financial records. Tax accounting is meant to determine how much taxes a given organization should pay as per the requirements of the law.
The second role off accounting involves cost accounting which refers to how much is used during the production process. Auditing of financial records involves independent examination of financial accounts in order to give credibility to what he records indicate.
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 non-qualified accountants are directly liable to the qualified accountant who supervises them.