The Accounting Department: its Function and Roles in an Organization
The respect and reputation gained by an organization came from the effectiveness of its internal department. The efficiency of a department differs on the level of knowledge and skills carried out by the people working within it. There are many important departments that an organization keeps in their system. Most of the departments are enumerated as the human resource department, research and development department, innovation and technological department (if any), the customer services department, and the accounting department. However, all of the departments are not given such importance because of the ...view middle of the document...
The people under the accounting department can be the organization’s strategists for they are the one who will have the access in accounting practices and calculations. By providing the necessary data, an accountant can be one of the organization’s human assets to draw for a conclusion and contribute in the long-term profitability (Lundberg, 2009).
Accounting department has a role in bringing sound information that can generate to the management’s decision making processes. By ensuring that all the information are valid, reliable, and justified, then there is a clear indication that people under this department should be responsible in controlling their own system (Siegel, 2000).
Accountancy has its own objective that particularly contributes in the organizations aim for success. With the help of the new financial services and computation, there is a strong accounting department. Organizations can recognize the accounting department as their business partners because of the promising and broad opportunities such as creating the business initiatives (Sinclair, 2006).
Ignorance on Accounting Department
From giving the importance of accounting department and the practice of accountancy, still there are companies that took accountancy as a simple department and without the capacity to excel. Organizations that misunderstood the importance of accounting department might experience the inability of the department to produce a more sensible business and financial reports. The ineffectiveness of the accounting can affect the capability of the organizations to perform well in the international. On the other hand, organizations might find the accounting department inefficient because of the management’s comprehension regarding the data provided. Therefore, the accounting managers should explain the alternatives or other formula for computation that they utilized to achieve the most desirable results (Siegel, 2000).
Changing of calculations only proves that the department understands the complexities and difficulties in the business environment that with the use of the...