Roles Played By Finances In A Business Unit.
There is an important resource in any business that is commonly referred as finance where you find that finance are meant to cater for the various operations in a business. The importance of finance to any given organization have made necessary for individuals to carry out activities related to finances in that you find organization carry financial analysis and also keep financial records for purposes of accounting to how this important resource is utilized in an organization. Financial analysis procedures are very important to any business unit as it helps organization to make informed plan and also to know their position at any given time. 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.
Accountants are individuals who carry out the role of measuring, disclosure and providing credibility to financial records. accountants play a major role in the organization as the information they provide are used by various departments and individuals in the organization. Managers of organizations have proved to be the main users of financial information. Managers have proved to use the information provided by accountants to make key decisions in the organization. Other users of information provided by an accountant are the creditors and the lenders of the organizations capital. lenders require the financial information reports so as to assess how their capital is being used and what levels of interest are they recording so as to determine whether to eject more capitals or draw the existing capital.
Accounting is governed by principles which are require to be adhered to. Bodies responsible for set the accounting rules included the chartered accountant, chartered certified of accountant or certified public accountant. Bodies which are responsible for setting the principles of accounting has also been endowed with the function of certifying qualified accounting organization and accountants. The bodies set also play the role of carrying out corporal punishment to individuals and organizations which carry out unethical practices and abuses accounting power with the aim of gaining advantages in terms of cash and bribes.
Accounting has been known to demand qualification through which is only proved by passing tests given by the certified institute of accountants. Accountants who are not yet qualified can still work for qualified accountants by acting on minor issues. 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 and with little management and governance, one can make most out of them.