Role and activities of an accountant, Accounting Basics

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Having discussed the possibility of accounting and its emerging function, we are currently in a position to illustrates as to who is an accountant. In an attempt to reply this question we regenerate below several statements in this regard as:

a) An accountant is a functionary who aids control.

b) An accountant is one who is engaged in accounts-keeping.

c) An accountant maintains the conscience of an organization.

d) An accountant is a professional whose main responsibilities are concerned along with information management for internal as well as external use.

e) An accountant is a fiscal adviser.

f) An accountant generates a balance sheet and an income statement for an accounting period and maintains all supporting evidence and classified facts which cause the last accounting statements.

g) An accountant authenticates, certifies and verifies the accounts of an entity.

Tell us regarding your reactions. Perhaps you do have your own concepts but our thinking is as each of the foregoing statements includes some truth in it as it highlights several aspects of the functions of an accountant, except one statement that presents a somewhat comprehensive view. Can you classify this statement? We will assist you in doing this.

Statement (a) explains a person who continues accounts. Statement (f) echoes approximately a similar notion but extends his responsibility to the production of financial statements. The work shown in these statements is of score-keeping and the person performing that activity is termed as a financial accountant or maintenance accountant.

Statement (b) is regarding the role that an accountant can play in the management control process. This is concerned along with attention-directing and problem-resolving. The functionary may be designated like management accountant or a controller as in the United States (US).

Statement (e) underlines a narrow, exact role of an accountant, even if of critical importance. In view of elevated incidence of taxes on business in India, tax planning presumes a very important role in fiscal management. Through planning the operations of the enterprise in an exacting manner, the tax adviser attempts to minimize the responsibility of the firm through availing the concessions and incentives given for in the applicable tax laws.

Statement (g) stresses the 'audit', 'certification' or 'watchdog' role of the accountant who is not a worker of a business but who acts an external verification of accounts. That a functionary is a trained and qualified professional who, as any other professional, has an educational position and an agreed code of conduct. In India chartered Accountants, in England-Wales and Certified Public Accountants in USA belong to such category of accountants.

Statement (c) shows the accountant like a conscience-keeper. He is seen like a person whose mission is to defend and promote the interest of the employer in a positive way. He is there to notice to it as none of the staff of the organization carries on such work in an unethical manner or in a manner prejudicial to the long-term legitimate interests of the firm.


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