is often referred to as ‘the language of businesses’. The role
of a financial accountant is to handle the financial records of the company
and the preparation of financial statements, organised for the big decision
makers of the company in question. For publically owned companies, this
sort of information is typically accessible by the public.
The primary requirement for financial accounting is to diminish the principal-agent
problem by monitoring reports, sales and an individual performance from
within the company.
The information found on these specific details and
figures in order to present to the higher management team who are not always
involved in the day to day running of the business. In order to achieve
this, the role of the financial accountant includes:
• Record financial transaction-recording profits, wages and any other
• Preparation of financial information-forecasted cash-flows, cost
investigation and profit/budget targets.
• Financial statements-balance sheets, cash-flow statements and bank
• Profit and loss accounts-specific periods of trade.
• Tax returns
• Supplier information-giving the business trade credit.
• Sales ledger-customers who use your company through credit, due/outstanding
All businesses vary and the uses and priorities chosen by the decision makers
inside the company are different within every corporation but the main role
of the accountant is to organise all of the money which comes in and out
of the company and coordinate the figures into a easy to understand format
which can illustrate the key successes and weak points of the corporation.