Role Of Financial Accounting

FINANCIAL ACCOUNTANT

The major field that exist in financial accounting is financial accountant. Financial accountants work directly for companies and performing internal financially-related duties. The job responsibilities of financial accountant is supporting financial decision-making information such as collecting data, analyzing and variances investigating, summarizing information and trend, and reporting financial data. A financial accountant is responsible for ensuring the effective operation of accounting and financial activities within public sector organizations. The function of financial accountants have review the financial records and statement to check for accuracy, advising key bodies or senior management and controlling the budgets

Tax accountant is the accountant is responsible to provide advices and guidance about taxation, including how to manage the tax liability and compliance with current legislation. Tax accountant may at home or in an office set for individual clients at home or in an office, companies or government entities. The functions of the tax accountant are providing clients with statements summarizing their tax liabilities, maintain legislation materials by reviewing, interpreting and implementing new advised laws, and recommends tax strategies by researching federal, state, and local taxation issues. Tax accountant should provide client with statements summarizing their tax liabilities to fill out tax returns for partnerships and limited liability companies at a public accounting firm. Moreover, tax accountants must maintain legislation materials to review, interpret, and implement new or revised law. Tax accountant interpret and explain taxation legislation to a wide variety of client’s activities to ensure all applicable is complies tax laws or revised laws. In addition, tax accountant should recommend tax strategies to research the federal, state and local taxation issues. They often help their clients map out and create their business plan and individual financial plans to minimize tax liability at the international federal, state and local

Firstly, creditors use the income statement to make the decision on loans it might make to the company. For example, if the past income statement was experienced a loss, creditors would have considered or rejected the cooperation with this company. Furthermore, lenders also use the income statement to decide whether to provide the company with a loan because a company’s ability to repay a loan in a timely manner ultimately depends on its profitability. For example, if the company make a profit in the past income statement, most lenders will agree and willing to provide a loan to develop the larger scale of the company. Moreover, stock investors use these statement to make a decision about whether they want to invest the business because earnings underlie a company’s ability generate cash flows for dividends and growth. Owners also is one of the user of income statement. They use the income statement to make important long-term business decisions. For example, whether or not to continue or discontinue part certain equipment in the production of its goods. Lastly, accountants use these statement to prepare tax returns for both individuals and