Roles Played By Finances In A Business Unit.
Business organization has occurred to be in need of financial services which are meant to cater for the financial details in these institutions. The occurrence of finances have made it necessary for business units to carry out various finance related procedures such as financial analysis that is meant to help an organization to know its current position and also to enable it to take informed plans that are achievable at all times. These financial analysis information provided is meant to help organizations to be financially stable and very capable of tackling future changes which are likely to arise as a result of financial changes which are not catered for. Finances are an important at all times to any business unit and for this reason there have been the establishment of financial accountants who are skilled in what they do. An organization’s finance is left in the hand of the accountants.
The term accountant is used to refer to a personnel who play the role of measurement, disclosure and providing credible financial information to the managers of a given organization. Accountants provide information which Is very useful o various departments and users in the organization. Managers of organization have proved to be the main users of information provided by the accountants. Managers have proved to use the information provided by accountants to make key decisions in the organization. Individuals who lend the organization through loans and credits are also interested in the financial information provided by the accountants. Lenders use financial information record to assess the performance of their capital and the possibility of increase in the interest recorded.
Accounting is governed by principles which are require to be adhered to. The chattered accountants, chartered certified of accountant or certified public accountant are some off the bodies established in order to ensure compliance to the set rules and laws on accounting. The mentioned bodies are charged with responsibilities of certifying organizations and individual accountants. These bodies also play the function of punishing individuals who carry out professional negligence and unethical practices such as providing wrong financial information with an aim of acquiring a given benefit.
Accounting demands a lot of qualification which is proved by passing qualification events and profesional attachments which are assessed by the certified institute of accountants. Accountants who have not yet qualified in accounting can also work under the guidance of qualified accountants in a given organization. The liability of the non-qualified accountant are handled by the qualified accountants.
With ethical financial accountants, one can be sure that their resources will are in safe hands at all times. Finances are very important but they required to be directed for one to make the most out of them.