Accountant Play in Business Operations †MyAssignmenthelp.com

Question: Discuss about the Accountant Play in Business Operations. Answer: Introduction: Hiring of an accountant is no more limited to only book-keeping. An accountant has a very significant role to play at the various stages of a companys growth. The fact about learning about risk and return is important as they have a major contribution to make from the time a person or a group of people plan to set up a business to the application for loans to audits. Globalization has also contributed towards diversifying an accountants role. Organizations can no more wait for the year to end so as to know the complete picture about the performance due to increase competition. They continuously require a complete, honest, noticeable and accurate data about their performance which needs to be assessed on a regular basis. All this helps them to take quick decisions. Accounting is the fundamental instrument with which the companies evaluate their financial performance and additionally makes tactical choices(Vitez, 2017). Risk is a part of any business organization and is indispensable by nature. It causes the company to face various perils. Due to same, it is a necessity to examine the level of risk which a company is ready to accept so as to conduct its business profitably. Some of the common kinds of risks being faced by a company is strategic, financial, operational and compliance related. But of the four, financial related risks is the most dangerous. It is the duty of an accountant to identify the level of financial risk a company is facing while dealing with the accounting of the same (Davis, 2016). Globalization has made it mandatory for an accountant to take into account foreign exchange as well as interest rate risks. The fact that an accountant simply provides an over view of the expected risk a company may be facing basis the accounts that it handles cannot be denied. It cannot give a clear estimation of the probable hazards even though learning about the risks faced by any organization is a must for an accountant today. Further to this, he is also expected to check upon the returns being generated by the company. The relationship sandwiched between risk and return is a chief aspect that aids an investor in making good investment decision. Putting in money into different fiscal instruments is agreed upon by many as a remarkable accounting practice. It is the duty of an accountant to keep a tracker for all the instruments which are debt related and maintaining a risk and return with regards these instruments would lend a helping hand to the accountant for making right and more trustworthy accounting decisions(Blokhin, 2015). It is the duty of an accountant to accumulate, document, inspect and converse information about the financial activities of a company. The main job of an accountant is to monitor and arrange accurate and complete financial proceedings. They accomplish synopsis of the monetary performance of the company. Appropriate investigation of financial records by preparing assets, liabilities and reviewing capital of the company is what an accountant does (Fontinelle, 2017). His liability extends till ensuring exactness of the financial trading undertaken by a company along with undeterred observance to the rules and regulations laid down by the institutes. Since an accountant is accountable for the appropriate recording of the finances of an entity, it is very important for an accountant to evaluate the risks and returns connected with the said entity. Further depending upon the accounts prepared by an accountant, the auditors of a company both internal as well as external determine about the truthfulness of the data published, thereby giving an insight to the various investors and those who intend to invest in the company with regards its performance. Depending upon the report submitted by these auditors the monetary status is understood which in turn has a long lasting implication on the market value of the company (Solution Matrix Limited., 2015). The owners i..e the shareholders and the promoters of an entity are able to take decisions with regards what, how and when to undertake a strategy for improvement and development, all revolves around the details provided by an accountant in the financial statements of the dealings undertaken along with the analysis with regards the risk and return. The accountants also undertake financial ratio analysis which acts as a tool in the hands of the organization to compare and contrast with the competitors. Thereby it is very clear that studying of the risk and return is of equal importance for an accountant in the present scenario(Isiavwe, 2016). Talking further in the same, the accountant is one who helps to prepare the accounts and present the summary in such a format which enables the organization to avail loans easily. Hence it is indispensable for any accountant to be aware of the expected financial gains; a data which is very useful in the context of application for loans. Conclusion On a summarizing note, the above discussion makes it clear that an accountants position in any entity is of utmost importance. He plays a pivotal role in execution of all finances such as preparation of accounts and communication of the same in various forms and with various analysis to the people who require it such as financiers and investors. Knowledge is crucial but along with the same, an accountant is expected to be hard working, honest, dependable and ambitious. Superior logical expertise along with possessing the potential to examine the risks with regards the entity which would in turn entail to take good and sound decisions for budgeting as well as external financing and to project the future prospects for the company is important in the present modern, composite and energetic business background. References: Blokhin, A., (2015), Why Is It Important for an investor to understand business accounting, Available at https://www.investopedia.com/ask/answers/042715/why-it-important-investor-understand-business-accounting.asp (Accessed 05th October 2017) Davis,S.S., (2016), What Role Does An Accountant Play In Business Operations? Available at https://smallbusiness.chron.com/role-accountant-play-business-operations-411.html (Accessed 05th October 2017) Isiavwe,D., (2016), The role of the Accountant in Modern Business Organizations, Available at file:///C:/Users/E-ZONE/Downloads/The%20Role%20of%20Accountants%20in%20Modern%20Business%20Organizations.pdf (Accessed 05th October 2017) Fontinelle,A., (2017),What Management Accountants Do, Available at https://www.investopedia.com/articles/professionals/041713/what-management-accountants-do.asp (Accessed 05th October 2017) Solution Matrix Limited., (2015), Accountant and Accounting Explained. Definition and meaning in business. Available at https://www.business-case-analysis.com/accountant.html (Accessed 05th October 2017) Vitez, O., (2017), Role of Accounting in the Modern Business Environment, Available at https://smallbusiness.chron.com/role-accounting-modern-business-environment-4010.html (Accessed 05th October 2017)