Accounting is one of those languages that translate across all the firms in the whole world. It is true that there are many things to focus on while running a business but you can never skip the aspect of accounting while running a business since accounting is the root of finance and there is no way you can make your business successful without managing your accounts. Many firms have a strong aversion to accounting but if you continue with this approach then you are going to end up slowing down the growth rate of your business. And since accounting is the root of business finance, an accountant should be well aware of his role in the firm.
Well, just like all other professions, the role of accountants has also changed throughout the years. There used to be a time when the role of accountants was limited and this is why most of the people considered accounting to be boring, dull, and repetitive but that is not the case now as now, we have moved to a new era of accounting where accountants have to perform many different tasks.
There is no denial in the fact that technological advancement has played a major role in transforming the way we deal with accounting and it has also affected the roles of accountants. But at the same time, there are many other factors that have further widened the roles of an accountant. Now, if you want to succeed as an accountant then you will need to take care of many things instead of just focusing on bookkeeping.
This is why, in this blog post, we will look at some of the most common roles of an accountant in modern businesses.
We are not only going to discuss what are the changed roles of accountants in modern business in this blog post, but we are going to discuss all the roles that an accountant has to play in modern businesses. This will help accountants to know what they need to work on and on which part of their accounting they need to work. This is one of the main reasons why we have started with traditional accounting being the most important role that an accountant has to play while providing services in a modern firm.
Traditional accounting simply means controlling the finance of a company and when it comes to controlling the finance of a company then it all depends on the size of the firm. On the basis of the size of the firm, this role can range from data collection and simple bookkeeping entry to organizing, reporting, and recording every aspect of financial operation.
Nowadays, accountants are no more limited to dealing with books only as they play much more important roles in an organization. You should know that the modern day accountants providing service in modern businesses also take part in the decision making process of the business. Whether you are running a small business or a giant firm, you must include accountants in the decision making process otherwise, the chances of your business becoming successful will keep on decreasing. This is one of the main reasons why modern businesses look for decision making skills of an accountant while providing services.
Since all the decisions taken by the company are based on the financial status or we can say the financial health of the firm, you have to make sure that you are taking suggestions from your accountant while taking any type of decision. In addition to this, you will also have to ensure that you are testing all the accountants applying for your firm on their decision making skills.
All the ideal accountants have impeccable analytical skills and this is one of the main reasons why all accountants can easily filter the success and failures of a firm on the basis of their past outcomes and endeavors. If you are sure that you have hired an ideal accountant then they will surely take a comprehensive assessment of your finances and help in building a forecast through the year. This approach used by all the expert accountants will help you in keeping your business in a healthy and prosperous state. And this is the main reason why accountants playing the role of a business consultant is really necessary for your business.
Along with the personal knowledge of the business and their own skills, accountants are able to deliver a pragmatic approach to all the business operations and strategies. And this is what is going to help your business in grabbing the right opportunities and making ideal investments while staying away from any type of losses.
Another important role that is played by almost all the accountants out there is internal auditors. But you should know that the role of big four accountants firms acting as external auditors for most of the large UK-based firms has been questioned in the past couple of years.
You should know that it was in the year 2018 when the CMA proposed that audits must be performed more frequently for all the businesses out there. But the main aspect of this proposition was the choice of auditors should never be left down to the businesses. It was noticed by CMA that businesses were picking those with whom they have the best chemistry instead of sticking with those who have the toughest scrutiny and this is why the proper audit was not being provided.
But an accountant plays the role of an internal auditor as well and this is why if the business falls into the crossfire of a harsh audit, the businesses can stay prepared. Since accountants have analytical minds and they can use methodical business acuity, they can act as an ideal auditor for your business and keep your business away from the crossfire of harsh audits.
Nowadays, most of the accounting operations are being carried out on modern day accounting solutions like QuickBooks desktop hosting and therefore all the accountants out there need to be good at using technological solutions as well. Gone are those days when using pen and paper was enough for all the accountants as it has been long since accountants have moved from pen and paper to desktop installed accounting software and from there, now they have moved to cloud hosted accounting solutions.
If an accountant will not be good at using these technological solutions then there is no way he or she can make the business thrive on the modern-day technological solutions. This is one of the main reasons why you always have to focus on the technological aspect while hiring an accountant for your firm. Otherwise, you will have to deal with many issues.
The roles and responsibilities of accountants will keep on changing with time and therefore, you will have to keep tabs on the changing aspect of accountants and hire accordingly. So, keep the above mentioned roles in mind while hiring an accountant for your firm and then, you will be able to thrive on your decision instead of facing limitations because of the accountant.
Accountants are responsible for the accuracy of a company’s financial records, including the creation of financial statements and keeping track of its accounts receivable and payable. They may also work on tax issues, such as the completion of tax returns or the preparation of tax-related financial statements.