Introduction
Making good business decisions is a process. It just does not happen overnight. Two roles that are important in many companies are that of the accountant and the financial manager. Both are what some would call ¡§numbers¡¨ people but they have very different responsibilities. This paper will focus on the role of the accountant versus the role of the financial manager and how they work hand in hand to contribute to a business being successful.
The Accountant
The primary responsibility of the accountant is to gather and present financial data. The accountant ¡§evaluates records drawn up by the bookkeeper and shows the results of this investigation as losses and gains, leakages, economies, or changes in value, so as to reveal the progress or failures of the business and also its future limitations and possibilities¡¨ (¡§Role of the Accountant¡¨, 2005).
The accountant¡¦s role also includes the following:
?X Performing daily accounting functions for the company. Ensuring integrity of financial reports by reconciling various balance sheet accounts and advising management of problems as necessary.
?X Preparing variance analysis of income and expenses monthly to provide management with an explanation of variances to the prior month and budget.
?X Preparing monthly journal entries for assigned duties to ensure accurate financial reporting in accordance with GAAP.
?X Preparing analyzing and compiling various financial statements such as the blance sheet, profit and loss statements, reports and tax reports. The balance sheet will show how the company is doing at a particular time and lists the companie¡¦s owner equity, liabilities and as ...