Accounting is the art of controlling a business by keeping accurate book-keeping records. Furthermore, accountants use the information in these records to measure and interpret the financial results of the business. Finally they are communicating the results to management and other interested parties.
How a good accountant can help the business?
Managers of a business need the most information for the reason that they need to plan and make decisions. Hence, having that ‘special’ access to information about the business is essential for their success in leading the company.
Managers have to find accountant that will give them that ‘special’ access to information by allowing the managers to ‘create’ the type of report they need. These can be for example about the costs and profitability of individual products, or different part of their business or about any other part of the working that is provoking financial transactions.
The accounting function is part of the broader business system and does not operate in isolation. It handles the financial operations of the organization, but also provides information and advice to other departments.
Users of accounting information:
- Managers of the company
- Shareholders of the company
- Trade contacts
- Providers of finance to the company
- Public Revenue Office
- Employees of the company
- Financial analysts and advisers
- Government and their agencies
- The public
As you can see other parties besides managers are using the accounting information. Thus, the accountant is important participant in creating the image of the company.
Above all, what makes a good accountant?
Good accountant should give relevant, comprehensive, reliable, complete information on time. Furthermore, this information should be objective and very important comparable. It should give you possibility to compare on a relevant basis this year’s with last years’ information, to help you anticipate trends, detect consequences and find solutions for adjusting.
Do you have this kind of accountant?