The Role and Functions of Accountants Record keeping
- Slides: 8
The Role and Functions of Accountants
�Record keeping for financial transactions is important for: • • • Accountability; Budgeting Taxation Financial Statements Annual Reports
Accountability � Ensuring employees are responsible and explain losses or discrepancies with regard to money � Bookkeeping business. � Invoices records transactions for a include bills for goods/services bought by or sold to the business, bank statements, and cheque records.
Budgeting �Allocating money to various areas of a business for estimating sales and expenses �Use records for same time period in previous years to help with budgeting.
Taxation � Paying � All taxes on profits/earnings business transactions must be recorded � Income statements ( profit/loss) must be generated at year-end and included with tax forms. � Capital Gains is money you earn as a result of stocks/shares that were purchases. Tax must be paid on this.
Financial Statements �Summarize financial performance of business � 3 • • reports ( 4 for a corporation): Balance Sheet Income Statement Cash-Flow Statement of shareholder equity*
Annual Reports �Presentation �Summarizes of financial reports activities, achievements, and future outlook
Class Work �P. 179 #1, 2 a, 3 abc
