Accountants play an important role in the development and growth of an economy. Accountancy primary concern is that of saving costs, and resources have to be extremely carefully monitored, managed and preferably multiplied. Some of the most important functions of accountancy are listed below.
An economy is not able to grow or develop without investments being made. Investment appraisal is a process of evaluation. Factors to be considered include financial, as well as non-financial aspects of a possible investments. Accountants are able to perform this evaluation with minimum expenditure on resources.
Although the law requires business owners to prepare financial statements, documenting a business' activities in relation to expenditure, such as investments, general cost etc, and income, the process of preparing such statements is usually handled by accountants. This in turn results in another role for accountants, namely that of auditing accounts. Auditing of accounts is necessary in order to give them legal credibility.
Economies can only grow if costs are kept at a minimum. Accountants use their knowledge to supply management with the best ways of saving costs in terms of necessary acquisitions, investments and personnel costs.
Embezzlement and misappropriation are major stumbling blocks within an economy. Accountants play an important role in this through a combination of special training in law, accountancy and IT skills. Accountants use their acquired knowledge in these fields to establish and implement external and internal controls to prevent fraud.
Accountants provide essential financial services to businesses and other members of the community, without which economic growth would be near impossible.
Businesses are the main stimulant of growth and development within an economy. In particular at the moment, the role of accountants in ensuring businesses perform cost-effectively is of vital importance.
