1. Maintenance of Accounting Books: An accountant is able to maintain a systematic record of financial transactions entered into during a period and to state the financial position of the concern as at a particular date. For the fulfillment of the twin objective of ascertaining the profit earned or loss suffered and the financial position, it is necessary that all transactions be recorded in a systematic manner, which can be done only by an accountant. Appropriate maintained accounting books assists management in planning, decision making, and controlling functions.
2. Audit: Every limited company is required to appoint a chartered accountant as an auditor who is statutorily required to report every year whether in his opinion the balance sheet shows a true and fair view or the state of affairs on the balance sheet date, and the profit and loss account shows a true and fair view of the profit or loss for the year.
3. Taxation: An accountant can handle taxation matters of a business or a person and he can represent that business or person before the tax authorities and settle the tax liability under the statute prevailing. He can also assist in avoiding or reducing tax burden by proper planning of tax affairs. Accountant also have social obligation to express their views on broad tax policy, on the effect of tax rate on the economy in general and on all other aspects of taxation in which they have knowledge superior to that of the general public.
4. Consultancy services: Accountant performs an advisory function. He is largely responsible for internal reporting to the management for planning and controlling current operations, decision making on special matters and for formulating long range plans. His job is to collect, analyze, interpret and present all accounting information which is useful to the management. Accountant provides management consultancy services in the areas of management information system, expenditure control and evaluation of appraisal techniques for new investments and disinvestment, working capital management, corporate planning etc.
