The Role and Functions of Accountants

1. The Role and Functions of Accountants

2. Record keeping for financial transactions is important for: • Accountability; • Budgeting • Taxation • Financial Statements • Annual Reports

3. Accountability Ensuring employees are responsible and explain losses or discrepancies with regard to money Bookkeeping records transactions for a business. Invoices include bills for goods/services bought by or sold to the business, bank statements, and cheque records.

4. 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.

5. Taxation Paying taxes on profits/earnings All 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.

6. Financial Statements • Summarize financial performance of business • 3 reports ( 4 for a corporation): • Balance Sheet • Income Statement • Cash-Flow Statement • Statement of shareholder equity*

7. Annual Reports Presentation of financial reports Summarizes activities, achievements, and future outlook

8. Class Work P.179 #1, 2a, 3abc