News

Accountant in business

Good financial management is essential for growths and success of a business.  It also supports and tailors business ideas and investment intentions.  Financial management performed in a wrong way is very often a reason of business failure or even bankruptcy.  Financial management is to a significant extent based on accounting that provides information about past and current financial position, financial performance.  

.  Accounting also provides information for financial planning and investment appraisals.  Smart finance director realizes the importance of a good quality accounting and is aware of an important role of an accountant on the organization.  Accounting cannot be seen as being only a legal duty or a tool to calculate corporate income tax.  Accounting processed by a good and skilled accountant is a resource of valuable information, which are essential for managing a business.  Number of companies prepares their financial statements under IFRS.  Only competent accountant is able to analyze transactions and properly apply IFRS rules.  An accountant must also demonstrate a legal background (to analyze contracts), valuation background (to understand fair value principle), tax knowledge and also auditing knowledge (to understand auditor´s requirements).   Accountant should also represent moral values and he shall realize that to certain extent he acts in a public interest as the financial statements he prepares are subsequently published.  However, the statutory body is responsible for correctness of presented financial information.  Czech accounting legislation is being developed on an ongoing bases and it is no longer only a guidance for bookkeepers.  From 2016 the Act on Accounting has been amended which again emphasized the role of an accountant and also it has introduced several changes that bring the Czech accounting closer to IFRS.  Do not underestimate the role of accountant in your organization and make sure you employ a qualified professional accountant who is your partner for discussion of your business plans.  Together you can meet the targets.    

Author: Libor Vašek, Chairman of Chamber of Certified Accountants