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Role Of Accounting On Business And Our Essay

Role of Accounting on Business and Our Society Financial statements play a key role in reporting the financial performance of a business besides helping managers to make better decisions. Business leaders often would interpret the different financial statements in order to understand the position of their business, the necessary risks that their businesses are facing, and the financial actions that should be taken to make the business to grow. All the financial statements developed for the operation of a business are critical in providing necessary information on the accounts. They allow business leaders to understand the business and take of necessary investment or controls needed for the success of the business.

Financial statements have unique roles since they are essential in determining the extent of success in an organization. A cash flow statement is helpful in analyzing the amount of cash available and those needed to meet the operating costs of the business. On the other hand, the income statement is a statement that helps organizations to keep accounts of the net deficits, after considering the activities in the last financial year. The assets account statement plays a key role in reporting the assets of the business against the liabilities of the business at the end of a fiscal year. The balance sheet statement also plays a key role in highlighting the overall performance of a company when a financial year closes.

The most important statement in communicating the financial health of an organization is the balance sheet. The balance...

It allows the business to look at its revenues and inflows whilst making comparisons with the expenditures/outflows. The balance sheet is important and is widely used by stakeholders in making key decisions on investing in a business. The sheet is important in reflecting the financial health of the business by comparing the revenues (assets) and expenditures (liabilities).
Question 2

Accountants and certified public accountants play a key role in financial reporting. The roles of a certified public accountant are diverse. They include preparing and filing the tax returns and carrying out other accounting services across the board. They also play a key role in conducting independent attestation and auditing services with various company accounts and statements. Certified public accountants also are involved in conducting accounting and reporting services for Government agencies. They are legally certified to conduct financial reporting for NGO's and not-for-profit organizations. Finally, they are involved in financial reporting within the context of the private and public companies.

An accountant carries out a number of general accounting roles in an organization. They are licensed to conduct general financial reporting activities. Their roles include the maintenance of financial books by making data entry processes. They are also involved in checking bills from suppliers before payments are made. Accountants also…

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References

Weygandt, J., Kimmel, P., & Kieso, D. (2013). Accounting principles, Volume 1 (11th ed.).

Hoboken, NJ: John Wiley & Sons.
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