How would you describe the roles of accountants and finance managers in your own country? You should give a preference and justification for the role you would prefer to have. You should also consider the ethical foundations for the accountant’s role.
Your response to the task Accountants and finance managers both playing vital roles in any corporation. Accountants are practitioners of accounting which is a system that does the research of financial activities and collects, analyzes and summarizes financial information that helps leader to make decisions. Finance managers are in charge of accounting departments.They lead and organize accounting work.
This essay aims to describe the different roles of accountants and finance managers in China and to give a justification for why I would like to be a finance manager. First, let us see the primary responsibilities of accountants in China. Chinese accountants need to prepare weekly, monthly, quarterly and annual financial statements, maintain the implementation of the accounting system and analyze and re-examine budgets and expenditures.
Also, they need to make sure that the accounting and related reports are accurate and complete by using financial data bases from automated and manual systems.The information must have the ability to influence decisions through predicting future events or confirming past events (Arrill, A. and Mclaney, E. , 2008). If the corporation is a listed company, it needs to disclose its income statement, balance sheet and cash flow statement quarterly and the reason why the financial situation of company has changed so much if necessary. There is an external auditing each year and accountants should work with the auditors in order to complete the audits well.Providing external assurance reports is also one of accountants’ roles and the need for assurance processes is evident (The Institute of Chartered Accountants in England and Wales, 2004). To become a good accountant, there are four ethical rules: relevance, reliability, comparability and understandability.
Relevance means that the supplied information must be presented in time to make decisions, can influences the decisions being made and either confirms what the users already think and/or helps them predict what might happen. Reliability requests financial information to be substantiality, neutrality, error-free, complete and prudence.Also, the information needs to have been prepared on a similar basis and it should be consistent over a period of time unless there is a good reason for doing so.
Finally, the financial statements should be understandable to those are going to use them (Oyson, J. , 2007). Finance managers in China also have a wide range of responsibilities.
Firstly, they have over all the responsibilities for the finance department’s daily management work and organizing and supervising staff. Secondly, they are responsible for organizing and preparing a company’s annual financial revenue and expenditure plans and supervising their execution.Also, finance managers need to organize companies’ cost management work by doing cost forecast, cost control and accounting analysis in order to reduce consumption, save costs and improve profit level. In addition, finance managers are supposed to supervise and control important economic activities which may cause companies to lose money.
Tax work is also included in the finance managers’ duties. They need to master tax policies and organize any tax that should be declared. Finally, finance managers should make full use of the financial data, analyze it objectively and honestly in order to provide a useful information for the decision makers.Furthermore, the internal users are by no means the only users. Commercial banks, investment banks and other co-operator partners may also need the information to decide whether to lend or invest money to the corporation, or purchase products or services from the corporation (Arrill, A.
and Mclaney, E. , 2008). I would like to become a finance manager instead of accountant in China. First of all, I did not learn much about accounting theories at university and it is a difficult job for me to record the data and make financial statements.
Secondly, I have been working as a corporate customer manager in the business section in the Agricultural Bank of China with responsibilities of credit operation and risk management and the finance managers are the customers who we most often talk to. My working experiences make me familiar with the duties of finance managers and will make it easier for me to accomplish the job. To sum up, although accountants and finance managers both are concerned with the financial aspects of decision-making, there is considerable overlap between the two subjects (Arrill, A. nd Mclaney, E. , 2008). In addition, accountants need to follow the ethical rules to accomplish their job.
By comparing the duties of accountants and finance managers, my choice of career would be the later one.Bibliography Arrill, A. and Mclaney, E. , 2008. Accounting and Finance for Non-specialists.
Prentice Hall. Oyson, J. ,2007. Accounting for non-accounting students. Prentice Hall.
The Institute of Chartered Accountants in England and Wales, 2004. Sustainability: the role of accountants.