In the growth & development of present day economy, one of the major players are the accountants. There are multiple certifications for accountancy nowadays. ACCA and CA are most prevalent among all these. Primary concern of accountancy is to save cost and resources. It is aimed at careful monitoring of such resources with proper management and multiplication. Following are some important aspects of importance of accountancy in present day economy:
INVESTMENT APPRAISAL
Economy of any country can neither grow nor develop without potential investments being made. A way for evaluating the investment options is investment appraisal. One need to consider financial plus non-financial concerns before making any investment. Accountants especially CA and ACCA are capable of performing such evaluation without major resource utilization.
FINANCIAL STATEMENTS
Business owners are required by law to prepare statements representing financial performance and financial position of their businesses. These statements are collectively known as financial statements. These statements tell about activities of any business with regard to expenditures, income, general cost and investments etc. Accountants handle the process to prepare such statements. Accountants namely auditors also audit such accounts. Auditing gives legal credibility to such financial statements.
COST SAVING
Cost must be minimized in order for the economy to grow. Knowledge and experience of accountants help them to manage resources leading to cost saving regarding investments, necessary acquisitions, personnel costs, business expenditures, etc.
FINANCIAL SERVICES
Financial services are provided by accountants to the businesses and community members. These services are crucial for economic growth.
FIGHTING FRAUD
Misappropriation and embezzlement are main hurdles within any economy. The role of accountants in this regard is quite important. They are trained in accountancy, auditing, law, IT and advisory skills. With their knowledge in respective fields with special training they establish and monitor internal & external controls for preventing fraud.
Accountants are an integral part of any economy that manage economic matters from scratch to accomplishment. Without them an economy can never be stable and prosperous.
Conclusion:
Accountants are indispensable to the economy due to their role in maintaining financial transparency, facilitating decision-making, ensuring regulatory compliance, supporting financial planning, and contributing to economic development.
Their expertise helps businesses and organizations operate efficiently, make informed choices, and navigate complex financial landscapes. As the economy continues to evolve, the importance of accountants in driving growth and stability will remain paramount.