Who is an Accountant? Myths about an accountant

Who is an Accountant ?   Myths about an accountant

We generally come across the need for an accountant in an business organisation.

But do we actually know who is an accountant?

There are certain certain Myths about who can be an accountant

1. Accounting is only about debit and credit, thus if any person can pass Debit or credit entry in Tally is an accountant

2. Accountant is one who can prepare the balance sheet that is both assets and liabilities side are matching with each other

3. Accountant is some one who comes to your office on an every weekly, fortnightly, bi-monthly, monthly to pass entries.

4. Accountant is one who prepares cheques, make cash / Bank voucher, prepares Bank reconciliation, creates Ledger accounts and other similar matter.

5. Accountant is one who deposit cheques in your Bank, withdraws cash from Bank?

Certainly, all of the above are myths. Rather accountant is the one who

1. Can prepare complete financial statement with proper groupings of expenses, debtors, creditor, and other and also classification in Books of accounts.

2. Can prepare complete management information system reports as per the needs to the business owners

3. Can understand the final Impact of any entry that is posted in Books of accounts

4. Can help the management in drafting all the response to the Notice that are received from any Statutory department

5. Can assist in Audit of Financial Statement at the time of Statutory audit and/or Tax Audit and/or any other Indirect Tax audit thus ensuring all the data being filed in correct.

Before we end, It is Important to understand the value of accountant. This is Indirect cost but helps in reduction of most of the other business cost if used Effectively and efficiently.

Thanks you,

Team Palankarta