ROLE OF ACCOUNTANT :
The role of accountant may be summarized as under:
(i) Maintenance of Books of Accounts: The primary role of an accountant is to offer his services for maintaining systematic records of financial transactions in order to ascertain the net profit or loss for the accounting period and the financial position as on a particular date.
(ii) Statutory Audit: Every limited company is required to appoint a chartered accountant as an auditor who is statutorily required to report each year whether the financial statements have been prepared in accordance with the generally accepted accounting principles, accounting standards and legal requirements and that they show a true and fair view of the financial position and profit and loss.
(iii) Internal Audit: In addition to statutory audit, a big company employs its own staff to conduct internal audit to ensure that the transactions are recorded, classified and summarized in accordance with the established accounting procedures to ensure that instructions of the management are being followed throughout the company.
(iv) Budgeting: Budgeting means the planning of business activities before they occur. On completion of the actual activities for a given period, the planned activities are compared with the actual activities to find out the variation, if any.
(v) Taxation: An accountant can handle the taxation matters of a business and can represent before the tax authorities and settle the tax liability under the prevailing statute. He also assists in reducing the tax burden by proper tax planning.
(vi) Investigation: Accountants are often called upon to carry out investigation to ascertain the financial position of the business for the information of interested parties.
(vii) Management Advisory Service: An accountant is largely responsible for internal reporting to the management for planning, controlling, decision-making on matters for long-term plans. He provides management consultancy services in the areas of management information systems, expenditure control and evaluation of appraisal techniques.
(viii) Other Activities: Accountants among many other duties perform duties of arbitrator registrars for settling of disputes, liquidators, cost accountants, etc.