Accountancy can very well be viewed as a profession with stature comparable to that of law or medicine or engineering. The rapid development of accounting theory and techniques especially after the late thirties of 20th century has been accompanied by an expansion of the career opportunities in accounting and an increasing number of professionally trained accountants. Among the factors contributing to this growth has been the increase in number, size and complexity of business enterprises, the imposition of new and increasingly complex taxes and other governmental restrictions on business operations.
Coming to the nature of accounting function, it is no doubt a service function. The chief of accounting department holds a staff position which is quite in contra - distinction to the roles played by production or marketing executives who hold line authority. The role of the accountant is advisory in character. Although accounting is a staff function performed by professionals within an organization, the ultimate responsibility for the generation of accounting information, whether financial or managerial, rests with management. That is why one of the top officers of many businesses is the financial controller. The controller is the person responsible for satisfying other managers’ demands for management accounting information and for complying with the regulatory demands of financial reporting. With these ends in view, the controller employs accounting professionals in both management and financial accounting. These accounting professionals employed in a particular business firm are said to be engaged in private accounting. Besides these, there are also accountants who render accounting services on a fee basis through staff accountants employed by them. These accountants are said to be engaged in public accounting.
Tags : Accounting For Managers - Basics of Accounting
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