The present day world of business is going through one of the most crucial phases in its entire history. It is happening for the first time that the world is coming together as a global village and business is playing a crucial role in it. And it is clear in no uncertain terms that the financial clout of any business plays a crucial role in establishing it as a force to reckon with in the market.
Hence it is also very much clear that the finance of the organization needs to be checked and kept under a strict vigil. The people who are responsible for the management of the finances are called accountants.
The field of accountancy can be described as a field that presents the information about the company to the concerned people in mathematical terms. All the activities that the company is involved in, and the profits and losses that the company is making, are shown in the financial terms, to the share holders, the investors and other entities. Even accountancy is further classified in various fields like the financial accounting, forensic accounting, management accounting etc.
The financial accounting is that branch of accounting that deals with the preparation of the financial reports that are meant solely for the external agencies. The reports that are prepared by the financial accountants are studied in detail by the people who have their vested interests in the company. Organizations like the banks and the investors, share holders and the auditing agencies are the readers of these financial reports. Quite unlike the other major field of accounting called the management accounting, the financial accounting and the financial accountants are generally concerned with the reports that would be scrutinized by the people who are not in any way associated with the company but have a keen interest in the financial reports of the company. Thus financial accountants play a very important role in the overall functioning of the organization.
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