Roles and Importance of Accountants to Businesses - Accounting and Finance Assignment Help

Assignment Task:

1.Roles and importance of accountants to businesses:

A). Under management and decision making

a. Accountants help in generating information regarding the financial position of the business where accountants will mostly relay on financial statements which helps in showing the performance of a business and its cash flows. We have four types of financial statements which include; income statement it enables accountants to explain the position of an organization for the rest of the reporting period. For example, it begins with sales subtracting from all the expenses that have been incurred during that period; by doing so, the account is in a position to tell whether it’s a loss or it’s a profit. In addition, in a situation where a company is publicly held, earnings per share are added to the financial statement. Secondly, we have a balance sheet that shows the financial position of an organization. The information provided is basically classified into assets, liabilities and equity. They are however classified according to their order of liquidity. Thirdly we have a statement of cash flows that helps in showing the inflows and outflows of an organization that it experiences during the reporting period. The cashflows are broken down into three categories, the operating, the investing, and the financial activities respectively. Lastly, we have the statement of change in equity, which reports all the changes in equity as per the reporting period. And the changes include the losses and profits incurred, the purchase of shares and also the dividends that have been issued (Elliott, et al. 2007, p 15).
 
b. When looking at creating a competitive edge in line with shifting customer demand, accountants play a very important role in ensuring that customer's needs are well catered for, and this is achieved when accountants are well equipped with what the customers want. Accountants maintaining a good reputation and openness with customers encourages customers to be flexible. And they will ensure that the business is more attractive to customers and are entitled to make sure that the services they offer are the best.

B). Business and operations planning.

Accountants will work hard to ensure that a company uses minimal cost and be able to increase profits and operate without any difficulties. This is achieved by choosing cost-cutting targets wisely. For example, one might consider cost-cutting in marketing strategy as the business environment changes one is able to concentrate only on what the customers want and leave alone what they don’t want, by doing so, it is going to reduce the cost of production and also marketing. The accountant will have to make a good decision before undertaking this action so as not to risk in crippling the company’s’ development. And this will ensure that the business is operating without any problem ahead.

C). Management organization of the business.

Expanding the management efficiency in financing business operations will set the ground for transparency and accountability in an organization. This will ensure that proper decision is made when trends in the market change. When the demand is so high, the services being offered should shift upwards, giving and organization an opportunity of investing a lot of resources hence meeting the consumers’ needs but when the demand is so low, the management will reduce its financing to as to avoid overspending the misuse of resources. When the management is good full of professional accountants and managers, the business is not going to be at risk.
Business coordination is the process of binding all the managerial functions together. In business, we have two types of coordination; internal coordination which deals with establishing a relationship with all the employees and departments and external coordination is all about establishing a relationship between the employees and the outsiders. For any business to be in good books with authorities, there must be legal compliance with all the laws and regulations set for that business to run. Without that, then the management and the entire business is not going to run as intended since there will be a lot of controversies on the legality of the business and this will affect its operation and planning.

D). Duty of accountant to the general public.

Accountants play different roles to the general public, and they help in preparing and confirming dynamic financial documents, scrutinizing budgets, and preparing finances (Thomas, et al. 2009, p 6). They give advice and provide basic financial information to different clients, from individual levels to corporations. In addition, accountants provide auditing tasks, consultancy and also bookkeeping. However, accountants vary with there area of specialization where others might have concentrated on tax issues and others in forensic accounting. The public is able to enjoy a variety of services from different accountants.

2.fields of accounting responsible for business costing and market retention

a. Managerial accounting is the process and measures where documents and reports are prepared to facilitate management in the policymaking process of running the company. Managers use managerial accounting to measure the success or failure of the business and its goals. However, most of the management is into cost-cutting and production output. It mostly used internal purposes; it focuses on departments, projects, and processes. Managers are able to improve business processes; they are able to weigh on costs and the market demand, which will help in production purposes. Moreover.

b. financial accounting is a division of accounting that deals with tracking of a company’s financial transactions. Companies issue financial statements on the routine timetable; moreover, the statements are considered external because the information is given to people outside the company where the first recipients are the owners and lenders.

3.Consequences of poor accountancy and lack of accounting services

Irregular costs of business operation will directly affect the company’s ways of operation; they wouldn’t be able to budget and plan for future projection since the market trends, and production costs will not have consistency hence affect the company’s ways of making decisions. Maintaining customers' tastes and preferences is very important for a company (Weygandt et al., 2015, p 110). This will help in cutting costs during production but when a company loses touch with the customers' demand, this will create a room for the business to offers services that customers don’t need hence making a company work at a loss. Fraud and illegal accounting practices in the accounting field are more likely to affect the company’s performance since the auditing and the financial reports that will be generated will not account for the total resources used in the running of the operations. The figures given will either in the wrong or overrated and the management will not make good decisions once they relay on the financial reports that are doctored.

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