Accountant’s Role in the Organization

Accounting is within every entity regardless of the type, size, or industry. Generally, accounting refers to the language of business due to its role in maintaining and processing all relevant financial information for managing and reporting purposes. Accountants ensure the data accumulation and recording are completed within an accurate and ethical manner. In order to be successful, accountants have impacts on accurate accounting, create best accounting practices, identify and avoid common accounting mistakes, and make certain new accounting hires are effective.

The single biggest positive impact that accurate accounting can have on an organization is reliability. Accountants identify, analyze, record, and accumulate facts, estimates, forecasts, and other data necessary to translate data. Reliability ensures the records are accurate, comparable, and measurable. Accurate accounting information aims at producing information useful to investors and creditors (Financial Accounting Standards Advisory Board, 2004). Maintaining the information creates the need to have accounting practices.

Just as reliability is essential for an organization, so are the practices necessary to maintain accurate data. Managing practices to ensure internal controls require standards. Standards will vary depending on the type, size, or industry the company is operating; however, some commonalities will exist.

One such practice is developing the conceptual framework. Understanding the flow within the organization will ensure recording appropriate data. The conceptual framework is a coherent system of interrelated objectives and fundamentals that lead to consistent standards and financial reporting. This constitutes a standard setting process that allows meeting accounting standards. Furthermore, this practice provides a frame of reference for resolving accounting questions and allows for interpretation of data.

Another such best practice is creating a budget. Regardless of the type...