Role Of Financial Accounting

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First and foremost, the major field that exist in financial accounting is financial accountant. Financial accountant performs many functions than a public accountant. They work directly for companies and performing internal financially-related duties. The jobs responsibilities of financial accountant is supporting financial decision-making information by collecting data, analyzing and variances investigating, summarizing information and trend, and reporting financial data. Most of the financial accountants work in local and central government and publicly funded organization or private accountancy firms. A financial accounting is responsible for ensuring the effective operation of accounting and financial activities within public sector organizations.…show more content…
Tax accountant is the accountant who are specialize in providing advice and guidance about taxation, including ways of managing tax liability and compliance with current legislation. Tax accountant may work at home or in an office setting for individual clients, companies or government entities. The functions of the tax accountant are providing clients with statements summarizing their tax liabilities, maintain legislation materials by reviewing, interpreting and implementing new advised laws, and recommends tax strategies by researching federal, state, and local taxation issues. Tax accountant should provide client with statements summarizing their tax liabilities. For example, a client who spends her days doing nothing but filling out tax returns for partnerships and limited liability companies at a public accounting firm. Moreover, tax accountants must maintain legislation materials by reviewing, interpreting, and implementing neo or revised law. Tax accountant interpret and explain taxation legislation to a wide variety of client’s activities to ensure compliance with all applicable tax laws or revised laws. In addition, tax accountant should recommend tax strategies to research the federal, state nd local taxation issues. They often serve as consultants, helping clients map out and create their business plan, trusts and individual financial plans to minimize tax liability at the international federal,…show more content…
If the revenue were higher than expenses, the company experienced a profit during the specific accounting period. The purpose of the income statement is to evaluate the current situation and make changes as needed of companies. In addition, income statement also shows managers and investors whether the company make a profit or lost the money during the period being reported. Income statement help investors and creditors determine the past financial performance of the company, predict the future performance of the company and assess the capability of generating future revenue streams through the reporting of revenue ad expenses. For example, if you want to open an account with a vendor, they may ask you to see these financial statement to verify that you are making profit in past financial statement, therefore the vendor is less likely to strike with unpaid

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