Role of an Accountant

Question 1

What are the duties of the financial accountant?

Answer 1

• Keeps accurate records of the daily financial transactions of the firm
• Checks the financial records to maintain accuracy and reduce fraud.
• Prepares periodic statements to show profit/loss statement of financial position etc.
• Prepares financial statements for auditing and publication as and if required.
• Reports to the owners of the firm the effect of managerial decisions on the performance of the firm.
• Ensures that the firm is operating within the rules laid down by legislation from government or professional bodies in relation to accounting matters and procedures.
• Carries out taxation calculations.
• Makes use of ratio analysis in order to compare performance from one year to the next and with competitors.

Question 2

What are the duties of the management accountant?

Answer 2

• Prepares budgets, break-even statements, charts etc.
• Provides management with information to enable decisions making eg which products should take priority for production if resources are scarce.
• Responsible for the collection, processing and classification of costs eg direct and indirect/allocation and apportionment.
• Supplies data to make the most efficient use of limiting factors eg machine hours.
• Provides management with date for internal use.
• Accountable for the planning and control of production.