Accounting technicians scheme west africa
D.7 The Accounting function
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| D.7 The Accounting function The Accounting function entails identification, measuring, and communicating of economic information for the purposes of generating informed judgments and decisions by the users of the information. Information that is primarily sourced is primarily financial related, often measured in monetary terms. Situating the accounting function into organic functions of management, then, can be said to be a measurement and communication process used to report on the activities of nonprofit and profit-seeking business organizations. For every profit-seeking business entity that operates for economic gain by applying economic resources, such as money, machinery and buildings, accounting information (to be provided and implemented by accountants) is important to their survival. To a layman, who interchangeably uses Accounting and Bookkeeping, the accounting functions may not be properly understood. Meanwhile, while bookkeeping is a mechanical process that records the routine economic activities of businesses, accounting on the other hand includes bookkeeping, but goes well beyond it in scope. D.8 Primary Functions of an Accounting Function Accounting as a major functional area of management is very crucial to the survival of the firm, considering the primary functions being performed by the Accounting Departments of organisations (often headed by qualified accountants) these functions include a) Keeping records of the organisation’s financial transaction b) Analysing and interpreting financial information c) Preparation of financial statements d) Management of the organisation’s funds 274 e) Designing accounting systems f) Preparing special business and financial studies for accountants-in-training g) Preparation of organisational forecasts and budgets h) Providing effective custody of the organisation’s assets i) Provision of tax services D.9 Strategic Functions of an Accountant By their placement in the organisational chart, accountants are expected to perform the following strategic functions (in chronological order i) Observe events within organisations ii) Identification of events that have economic values iii) Measuring economic events in financial terms iv) Recording measurements v) Measurements classifications vi) Measurements summary vii) Reporting on economic events in financial statements and other financial related reports viii) Interpreting the contents of financial statements and other reports Download 3.37 Mb. Share with your friends:
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