Responsibilities of an accountant

In modem times traditionally, the accountant was expected to compile and present the financial information to the owners of the entity at the end of the accounting period. But with the advent of cost accounting, management accounting and financial management the responsibility and field of accountant's functions have grown enormously.

The function of accounting beyond the traditionally accepted double entry routines can be grouped under:

(a) Finance function
(b) Control function
(c) Planning function

Finance function

Every business faces the problem of raising and using the funds.

The responsibility of accountant under finance function is to ensure that-
(i) funds are obtained at the lowest cost and
(ii) funds are optimally used i.e. highest return is obtained.

The following types of problems are faced by the accountant while discharging finance function

What type of expenditure firms should commit?
Amount of funds committed by the firm on various projects ?
What sources should be used to raise the funds for a particular project?
Ways and means of getting maximum benefit out of the use of funds?
Method and time of repayment of funds borrowed?

Of course, the decision on the above-mentioned problems is taken in the light of management policy and objectives of the enterprise.

Control function

Accountant has to do the following to discharge his responsibility of being the controller

To communicate the goals as approved by the management to individuals in their respective fields.
To make all the managers and various other persons leading their units, aware of their responsibility and assist them in achieving their goals as efficiently as possible.
Look after the coordination of various activities of all the organizational units so as too optimize results.
Evaluate the performance and the degree of achievement of various responsibility centers as compared to the goals set for them and assets their efficiency.
Identify areas of unsatisfactory performance and assist in the formulation of corrective measures at both ends.

Planning function

The process of planning involves long term decision as well as short term actions. In the short- term decision has to be taken regarding:

Selection of one alternative out of many e.g.. bicycle manufacturer should decide whether to manufacture all the parts of the bicycle himself or purchase the parts and only to assemble.
Profit maximization or loss minimization.

For problems involved in planning function accountant has to depend not only on accounting information but also on outside information. As regards long term planning, the task is to plan for continuity and development of the firm.

Responsibilities of an accountant

Finance function

Control function

Planning function

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