THE 5 MOST RELEVANT FUNCTIONS OF A PUBLIC ACCOUNTANT - CULTURE VOCABULARY - 2025

The functions of a public accountant are to declare taxes, audit, generate financial statements and create payroll. They are the professionals in charge of keeping the accounts and expense ratio of an institution, administration or person.

Accounting graduates exercise their functions in different areas; for example, in government institutions, in banks or in business administration.

The role of the public accountant in a company is to be the communication link between it and the environment.

Through this link it is sought that the accounting information serves the managers to make decisions and manage the company in the best possible way.

The 5 most important functions of an accountant

1- Create financial statements

They are summary reports on the use of the funds of the companies and the situation in which they are.

The analysis of the financial statements allows the granting of loans, the financing of companies and the management of investments, among other actions.

These financial statements are used to evaluate the gains or losses in a given time.

2- Carry out audits

This function is synonymous with examine and verify. It consists of reviewing and verifying the accounting documents, which contribute to reinforcing the credibility of the financial information.

The purpose is to create a report that reflects whether the audited information is true to the company that was audited.

In ancient times, an auditor was one who heard the accountability of public officials and agents, who due to lack of knowledge could not present the reports in writing.

3- Declare taxes

The declaration is made before the tax administration. The statement shows the amount of income earned in a particular year.

Likewise, the public accountant has among his functions to complete the form that will be presented before the Government, and he does it from the information that the taxpayers give him.

4- Prepare payroll

Payrolls are the documents where the days worked are recorded, as well as the wages received by workers.

These include salaries, bonuses and deductions. The types of regular payrolls can be divided into weekly, biweekly or monthly.

5- Carry out cost accounting

Cost accounting is a technique for measuring and analyzing the results of business activity.

It is a tool that will help in the decision-making process of business leaders.

It can also be known in other ways, such as exploitation analytics accounting or industrial accounting.

Its main objectives are the setting of sale prices, determination of the cost of products, inventory control, among others.

References

1. WetFeet, “Careers in Accounting,” WetFeet Insider Guides Series: Financial Services Careers, 2008.
2. Grupo Planeta, "The interpretation of financial statements: a guide for professionals

   Business Management and Control", Martin S. Fridson, 1997.

3. “Financing Words: A Guide to Money and Taxes for Authors,” Pavarti K. Tyler 2016.
4. ISEF Fiscal Editions, "Comprehensive Study of the Payroll", CP Luis Angel Orozco Colín, 2017.
5. Profit Editorial, Alfredo Rocafort Nicolau, Vicente Pedro Ferrer Grau “Cost Accounting Title”, 2012.
6. Editorial Paraninfo, “Audit, a practical approach”, De la Peña, 2012.