As a new controller, reply to this comment by a manager. “As I see it, our accountants may be needed to keep records for shareholders and Uncle Sam, but I don’t want them sticking their noses in my day-to-day operations. I do the best I know how. No bean counter knows enough about my responsibilities to be of any use to me.” Why are accountants valuable to the organization? What responsibilities do managers have in understanding financial information?
Given the knowledge and experience possessed by plant managers, managers may underestimate the importance of accountants in business. However, this does not give managers the ability to despite and undermine the role that accountants play in improving and facilitating business operations. Accountants play a significant role that are reflected in the overall performance of a firm. This paper aims to explain the value of accountants to a firm apart from the usual “bean counting” roles assumed by the general public. The paper will also discuss the manager’s responsibilities in understanding financial information. Accountants save time for managers and business owners. Even if managers or business owners may have good knowledge of financials paperwork or they may have employed the use of accounting software. It would still cost them more time to compute and keep a record of financial information. If however, they choose to employ an accountant, they would be left with more time to concentrate on other business aspects, as the accountant take care of accounting aspects (Collier, 2015). Accountants provide year-round financial advice to managers and owners. Accountants share critical financial information and advice to management that is helpful in decision making at different time periods. In addition, since most accountants have worked for more than one company, accountants provide valuable insights learned from previous companies. They have good knowledge of ideas that either worked or failed in previous companies.
The managers might improve the performance of a firm by employing best practices shared. Just like other users of financial information, managers have a responsibility towards understanding financial information. Managers have the responsibility that financial information provided by accountants is objective and honest. Managers also have to ensure that the internal control systems established are intended to give reasonable assurance that the firm’s assets are protected from unauthorized use or loss, and their aim is to provide reliable accounting data to prepare financial statements (Collier, 2015).
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.