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  • Role Of An Accountant In The Society – Commerce And Accountancy Notes – For W.B.C.S. Examination.

    There are many types of profession in the world which are held in high esteem in public eyes and there is no denying the fact that the accounting profession in one of them. At the core of all types of learned profession, there is the desire of public good and of finding the best way to serve society.Continue Reading Role Of An Accountant In The Society – Commerce And Accountancy Notes – For W.B.C.S. Examination.

    By the help of science of accountancy and the spell of its art, a dynamic pattern which assists business in planning its future is cane by accountants out of the inert mass on non-speaking silent figures. This makes their profession an instrument of socio-economic change and welfare of the society.

    An accountant with the help of his education, training, analytical mind and experience is best qualified to provide multiple need-based services to the ever growing society. The accountants of these days can do full justice not only to matters relating to taxation, costing, management accounting, financial lay out, company legislation and procedures but they can delve deep into the fields relating to financial policies, budgetary policies and even economic principles. The area of activities which can be undertaken by the accountants is not limited but it can also cover many additional facets.

    Functions of Accountant:

    1. Maintenance of Accounting Books: An accountant is able to maintain a systematic record of financial transactions entered into during a period and to state the financial position of the concern as at a particular date. For the fulfillment of the twin objective of ascertaining the profit earned or loss suffered and the financial position, it is necessary that all transactions be recorded in a systematic manner, which can be done only by an accountant. Appropriate maintained accounting books assists management in planning, decision making, and controlling functions.

    2. Audit: Every limited company is required to appoint a chartered accountant as an auditor who is statutorily required to report every year whether in his opinion the balance sheet shows a true and fair view or the state of affairs on the balance sheet date, and the profit and loss account shows a true and fair view of the profit or loss for the year.

    3. Internal Audit: It is a management tool whereby an internal auditor thoroughly examines the accounting transactions and also the system, according to which these have been recorded with a view to ensure the management that the accounts are being properly maintained and the system contains adequate safeguards to check any leakage of revenue or misappropriation of property or assets and the operation have been carried out in conformity with the plans of management.

    4. Taxation: An accountant can handle taxation matters of a business or a person and he can represent that business or person before the tax authorities and settle the tax liability under the statute prevailing. He can also assist in avoiding or reducing tax burden by proper planning of tax affairs. Accountant also have social obligation to express their views on broad tax policy, on the effect of tax rate on the economy in general and on all other aspects of taxation in which they have knowledge superior to that of the general public.

    5. Consultancy services: Accountant performs an advisory function. He is largely responsible for internal reporting to the management for planning and controlling current operations, decision making on special matters and for formulating long range plans. His job is to collect, analyze, interpret and present all accounting information which is useful to the management. Accountant provides management consultancy services in the areas of management information system, expenditure control and evaluation of appraisal techniques for new investments and disinvestments, working capital management, corporate planning etc.

    The practice of accountancy has crossed its usual domain of preparation of financial statements, interpretation of such statements and audit thereof. Accountants are presently taking active role in company laws and other corporate legislation matters, in taxation laws matter and in general management problems. 

     
    1. Maintenance of Accounting Books: An accountant is able to maintain a systematic record of financial transactions entered into during a period and to state the financial position of the concern as at a particular date. For the fulfillment of the twin objective of ascertaining the profit earned or loss suffered and the financial position, it is necessary that all transactions be recorded in a systematic manner, which can be done only by an accountant. Appropriate maintained accounting books assists management in planning, decision making, and controlling functions.
     
    2. Audit: Every limited company is required to appoint a chartered accountant as an auditor who is statutorily required to report every year whether in his opinion the balance sheet shows a true and fair view or the state of affairs on the balance sheet date, and the profit and loss account shows a true and fair view of the profit or loss for the year.
     
    3. Internal Audit: It is a management tool whereby an internal auditor thoroughly examines the accounting transactions and also the system, according to which these have been recorded with a view to ensure the management that the accounts are being properly maintained and the system contains adequate safeguards to check any leakage of revenue or misappropriation of property or assets and the operation have been carried out in conformity with the plans of management.
     
    4. Taxation: An accountant can handle taxation matters of a business or a person and he can represent that business or person before the tax authorities and settle the tax liability under the statute prevailing. He can also assist in avoiding or reducing tax burden by proper planning of tax affairs. Accountant also have social obligation to express their views on broad tax policy, on the effect of tax rate on the economy in general and on all other aspects of taxation in which they have knowledge superior to that of the general public.
     
    5. Consultancy services: Accountant performs an advisory function. He is largely responsible for internal reporting to the management for planning and controlling current operations, decision making on special matters and for formulating long range plans. His job is to collect, analyze, interpret and present all accounting information which is useful to the management. Accountant provides management consultancy services in the areas of management information system, expenditure control and evaluation of appraisal techniques for new investments and disinvestments, working capital management, corporate planning etc.

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