Role of the Chartered Accountant in the corporate World

When you are running a business on a large scale, managing finances can be tricky. On top of that, if you are the owner, you also need to keep an eye on credits and debits. But, it becomes confusing and frustrating for you.

A correct timing and accurate records of finances will help you in knowing the financial position of your business. This is the reason why chartered accountants (CA) are needed so that they can handle all the financial situations of the company or the organization.

Before we get into the role of CA, it is essential to understand who is called a chartered accountant.

A Chartered Accountant

A chartered accountant is someone who has finished his postgraduate degree and has work experience under a good mentor for three years. Generally, the role of CA is different from that of other types of accountants. S/he has more opportunities to grab. The chartered accountant focuses on auditing, taxation, corporate finance and it is reporting. Later on, all the reports are being compared with the competitor.

Role of the Chartered Accountant in a Corporate World

The corporate world and chartered accountants always go hand in hand. One cannot gauge the financial situation of the corporation without financial guidance. Moreover, that is possible through the chartered accountant.

In Asian countries as well as Abroad, the significance of CA’s is increasing day by day. Apart from auditing and taxation, the aspiring CA’s perform many other responsibilities. They also perform good corporate governance and tax preparation ensuring that the company can achieve its financial goal.

There are many others roles that a chartered accountant can perform being in the firm.

  • As a stakeholder of a firm
  • As the employee of management of the firm
  • As an auditor both for external and internal field
  • As a member of the board of directors

These are the few roles chartered accountants have. Nowadays companies are looking for corporate governance more and how they can improve it. This is only possible through CA whose principal focus is the profitability of the company.

A chartered accountant holds a vital role in providing advice and required knowledge to the investors including the managing directors of the companies. Moreover, CA’s help in framing rules and policies regarding the investments.

The fundamental role of the chartered accountants is to maintain finance and bookkeeping. They help in preserving the financial records of the companies. Different books need to be updated on regular basis like the sales book, purchase books, payment books, receipt books and much more.

By the end of the quarter year, to create an income statement and the balance sheet these books will help in generating the final report.

Chartered accountants are not just for maintaining the books. In fact, the other responsibility of CA is to examine the data for different purposes. For instance, the analysis of the income statement will help in depicting the growth of the company whereas the balance sheet will help in knowing the position of the company.

Gradually as the company starts gaining shareholders, it is obligatory to get the accounts audited. A professional CA will perform all the tactics. By conducting the audit, it will prevent the violation from the economy.

Another role of the chartered accountant is taxation. All the business has to file the tax returns quarterly as well as annually for a successful and smooth running of the company. In addition to the tax returns the chartered accountant also need to confirm that there are no pending liabilities on the chairperson plus the members of the board of directors.

Apart from the basic functions mentioned above, the CA’s can also advise on based on their skills and knowledge.

  • Management accountant: it focuses primarily on providing financial and non-financial information, which assists the management in making decisions
  • Forensic accountant: Works in actions that derived from litigation or other issues. All the large and medium-size companies and organization use the service
  • Public accountant: Runs a private company or works in a private sector
  • Taxation accountant: expert in the field of taxation

A chartered accountant holds a vital role in providing advice and required knowledge to the investors including the managing directors of the companies. Moreover, CA’s help in framing rules and policies regarding the investments.

Another crucial role of CA’s is to avoid frauds and corruptions in the organizations. Furthermore, the chartered accountant takes actions to progress the financial statements of the company, which is also known as window dressing. The chartered accountant also has supervision over all the matters related to the financial health of the company.

Chartered accountants aim in attaining profitability in the business on behalf of employees and customers. The above-written blog will tell you about the superior role of the chartered accountant in the corporate world.

With an extensive knowledge of financial laws CA’s help the businesses to serve with transparency whenever they are dealing with the management of personal financial problems.

About the Author

Russell Crowe is working as a Business Analyst  and he is a freelance content writer. He likes blogging on topics related to technology, business strategies & home improvement. He graduated with honors from Columbia University with a dual degree in Accountancy and Creative Writing.

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