The Accountant in the Business Environment - Coursework Example

The Accountant in the Business Environment Table of Contents Introduction 3 Role Of Accountant In The Business Environment 3 Response Of The ManagersTowards Incorporating The Roles Of Accountant In Their Business Environment  6 Ways to Develop the Roles of Accountant 7 Conclusion 8 References 9 Introduction An accountant is regarded as an individual who draws the financial position of a company. There lay certain roles that play by accountants in the respective business environment. In this regard, such roles can be ascertained as preparing the different financial statements in an effective manner and ensuring that no loopholes are persistent within the prevalent transactions (Glusman & Ciociola, 2008). Notably, every business organisation possesses or follows a pattern of quality management and functional structure. This structure also entails the concepts that are related to research along with development, production, marketing, accounting and finance (Gelinas & Dull, 2009). It is worth mentioning that internal and external environments are the two particular forces that could change the business settings at large. In this regard, internal environment of an organisation gets associated with events, factors, people, systems, structures and prevailing conditions. On the other hand, the factors concerning organisations’ mission statement, leadership style and corporate culture fall under external environment (Cieślińska, 2007). In accordance with the above stated forces, it is to be affirmed that accounting is regarded as an information system, which tends to measure the activity of a business and processing valuable data of the same into reports (Montana & Charnov, 1993). With this concern, the essay intends to analyse and discuss the role play by an accountant in the business environment towards structuring and managing the internal as well as external influences of business organisations. Role Of Accountant In The Business Environment The accountants mainly perform the role of analysing the financial position of the organisations. The base of their respective works generally gets derived from varied sorts of financial transactions and the segregation of accounting information system into two parts including financial and management accounting. In this similar context, financial accounting tends to provide information to the external members including the potential shareholders and lenders among others. Conversely, the notion of management accounting focuses on making internal decisions by the managers belong to different companies (Heravi, 2015; Pearson, n.d.). In a business organisation, accountants and managers both require playing certain imperative roles in structuring, managing and governing the internal along with external influences. In this regard, such roles are reckoned as relating financial along with non-financial information with the cost of utilising resources in an organisation and making effective short as well as long run planning in terms of making relevant financial decisions (Slideshare Inc., 2010; Duska, 2007). Accountants generally perform the function of preserving methodical records of various business transactions. An organisation could not work effectively without recording all transactions properly. Every organisation should know about their profit and loss in one financial year for ascertaining future profitability. For future planning, every organisation should possess adequate knowledge about their respective financial positions. An accountant could help in providing a clear idea to the business organisations regarding future prospect or maintaining greater financial viability. An accountant also plays a decisive part in making effective decisions relating to finance related matters. It is obvious that without taking into concern past records, future planning would be difficult for any business organisation. Co-ordination is also important for an organisation. Specially mentioning, keeping proper records in books would help in integrating the information associated with production, purchase, finance and sales (Roper & et. al., 2011). Planning and controlling both would be the main functions of an accountant to perform in the global business settings. Apart from the above stated roles, forming communication between the major stakeholders and the management team is also viewed to be a major function of an accountant, which eventually results in structuring along with managing different external and internal influences With the help of analysing the present financial picture and evaluating the past finalised financial reports, accountants with the help of business or operational managers determine the path of future progression of business (Sunarni, 2013). Apart from the above stated roles, the accountants are also observed to perform varied significant activities. These activities mainly encompass better management of financial data, improved analysis of the financial reports, preparing financial statements with minimum level of errors and complying with every financial regulation. Apart from these, the accountants must ensure that all the deadlines associated with financial reporting are met within a specific time and regular monitoring is being made on taxation related issues. It is to be affirmed in this regard that the above stated roles that play by an accountant mainly manages and governs the external along with internal influences in the procedure of demonstrating quality communication skills. The key principles of leadership associated with the roles play by accountants in the respective business settings mainly include solving varied problems, adopting effective decisions and managing employees in diverse situations among others. By taking into concern the planning skills as well as problem solving approaches, it could be affirmed that the business organisations could reap several significant benefits in future. In this regard, such benefits can be ascertained as improved profitability in terms of controlling costs by having proper examination of financial records and also determining future sustainability (Baddeley & James, 1990). Response Of The Managers Towards Incorporating The Roles Of Accountant In Their Business Environment  An accountant could point out where the success or fault lies and likewise instructs the managers about how to overcome any sort of odd phase and determine the way of success. Responsible managers would start from the beginning of managerial proceedings. In this regard, initially, managers should introduce an auditor as well as an accountant to their respective business organisations. This might assist them in making plans for expansion of business, recognising new possibilities, devising effective strategies with the help of accountants and incorporating financial information within the business or operational procedures. It is worth mentioning that managerial and accountants’ actions often get correlated within any business organisation. Based on this notion, various important factors including research and development, design for various product and/or services, process of production, marketing and distribution of products along with customer service must be considered by the managers so that greater level of customer value could be generated (Cieślińska, 2007). It must be mentioned that the incorporation of different roles that perform by an accountant in the respective business environment certainly enables the business managers to reap several significant benefits. These benefits may include controlling operational costs, maintaining operational efficiency, managing the employees in an efficient way and taking effective decisions. Apart from the above discussed benefits, the managers could also get benefitted in terms of promoting innovation and more importantly ensuring better planning as well as control among others (Bharathiar University, n.d.). Thus, based on the above discussion, it is to be affirmed that the managers of different business organisations must reveal positive response towards incorporating the roles play by accountants in diverse business settings. This might result into supporting the managers to clearly determine the future prospect of the organisations relating to finance and emerge with innovative ideas towards performing significant functions. These functions may entail controlling costs, increasing revenues, lessening capital expenditures and ensuring long-term sustainability in the competitive business environment. Ways to Develop the Roles of Accountant Stagnancy is deemed to be crucial for any sort of business, as this aid in affecting its overall performance from short along with long-term perspective. Thus, development in the roles of every business or operational aspect including accounting in the global domain is required to be performed. Specially mentioning, immobility in the practices perform by the accountants could impose adverse impacts on the overall performance of any business organisation. In this context, the roles of an accountant may get developed in the form of various ways including building effective cooperation with the involved stakeholders and working upon developing short as well as long-term financial transactions among others (Collins, 2010). It must be mentioned in relation to the above context that the development in the accountant roles would certainly aid in developing various planning skills towards the attainment of long-term objectives. These objectives may entail improvising leadership competencies and managing employees among others. More importantly, it is projected that the progression in the diverse roles of an accountant not only aids the business organisations to prepare different financial reports efficiently, but also handles several intricate finance related details. These aspects certainly lead the business organisations to ensure future growth as well as long-term sustainability (Breuer & et. al., 2013). Conclusion In relation to the above analysis and discussion, it can be ascertained that the role of accountants in business organisations should be incorporated within the overall business or operational procedures for the purpose of ensuring future sustainability. From the discussion, it became much apparent that the firms of this present day context get structured, managed as well as governed relating to their respective external along with internal influences by incorporating the roles of an accountant within the operational procedures. This can be justified with reference to the fact that effective integration of an auditor or an accountant in a business organisation lays the potentiality of creating more transparency in the relations persisting between the management and the potential stakeholders. Proper financial reporting would certainly create a translucent picture of past records of business transactions, which might result in developing the procedures of problem solving and most vitally determining appropriate planning skills. References Baddeley, S. & James, K., 1990. Political Management: Developing the Management Portfolio. Journal of Management Development, Vol. 9, No. 3, pp. 42–59. Bharathiar University, No Date. Cooperative Societies. Nature and Scope of Business, pp. 1-188. Breuer, A. & et. al., 2013. Field of Managerial Accountancy. The Role of Management Accounting In the Decision Making Process: Case Study Caraş Severin County, Vol. 15, pp. 355-366. Collins, K., 2010. Fields of Accounting, Exploring Business, Vol. 1.0. Cieślińska, K., 2007. Notion of Manager. The Basic Roles of Manager in Business Organization, pp. 2-12. Duska, R. F., 2007. Contemporary Reflections on Business Ethics. Springer Science & Business Media. Doucette, 2014. 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