Accountants must also decide on a prescribed system of accounts and choose which ones show and are most capable of arriving at a comprehensive view of how the company is doing. They must show a true evaluation of the business and how it is doing and where it is going. This is done through the writing up, study and keeping of a number of financial records including profit and loss accounts, receipts, fiscal measures and other devices.
Accountants also use cost accounting to show actual cost over periods of time of particular services or departments. This is done to look for improvements, profitable areas as well as for finding areas that are not efficient and are loss making.
Accountants are also reporters of fiscal reports. They analyse financial data and report back in understandable language the areas of good and bad financial performance and offer solutions to the business. Accountants can balance the cost of something against what it is worth and then advise the business to make changes or keep doing something.
Accountants are also business partners and understand the daily operation of a business. They observe and report on what is going on and going right or wrong in everyday business. They also look for cost effective strategies to save the business money as well as make decisions on labour, and current and capital expenditure.
Accountants are fundamental to the success of a business and offer a wide array of specialities that can really help an organisation develop.