What Are The Accountant’s Responsibilities And The Entrepreneur’s Tasks?

The accountant’s responsibilities are directly related to those of the entrepreneur or manager of a business. In other words, those developed by this professional are directly linked to the information provided by the company’s management.

Thus, we can say that both go hand in hand in running a business. Each with its administrative and legal responsibilities.The purpose of this article is to show the difference between the roles of each of these figures, as well as delimit their responsibilities and areas of activity in the company. Check out!

How Does A Company's Accounting Process Work?

An organization’s accounting is done by recording all the movement that exists within a business, as long as its equity situation has changed, whether or not there is money involved in the operation.

The purchase of a computer in installments is a clear example of a fact that changed the company’s equity situation without the presence of cash at the first moment and, therefore, is subject to accounting records.

These records are made through entries that transform the data existing in each purchase or sale document for an item into accounting information.

The accounting process is mandatory for almost all legally constituted corporations (except the individual microentrepreneur). Furthermore, it is an essential management and control tool for any type of business.

How Far Do The Accountant's Responsibilities Go?

The accountant’s responsibilities are divided into three: civil, criminal and tax. In this topic, we’ll detail each of them.

Civil liability is related to the effective practice of accounting techniques performed by the professional. For example, he is responsible for the correct issuance of the balance sheet and transmission of accounting obligations within the prescribed period.

If the accountant does not comply with the obligations inherent to its operating practices, it must respond to the client and to the courts, if it is called.

Criminal liability is that in which the accountant will be liable for the practice of actions before the Judiciary in the criminal sphere, and may even be required to serve sentences, depending on his conduct.

The accountant is responsible for controlling tax credits, applying rates and other issues that influence the issuance of guides for the payment of taxes by a company. However, the accountant’s responsibility starts with the receipt of the information correctly and at the ideal time by the client.

What Are The Entrepreneur’s Responsibilities?

In the scope of responsibilities, there is a very interesting issue called by experts and by the Law “solidarity”.

Joint liability means that those accounting obligations that we saw in the previous item on civil, criminal and tax liability are extended to the entrepreneur since the essential data and information for carrying out any and all accounting practices are part of it.

Thus, the entrepreneur is responsible for transmitting to the accountant the information regarding his business.

All those facts that changed the financial or equity situation of your organization must be informed to the accountant through specific documents, such as invoices, bank statements, pay slips, vouchers etc.

Why Shouldn’t I Hide The Counter Data?

It is very common to find entrepreneurs who try to “cheat” their own accountant, failing to present certain documents proving income. This practice is known as document evasion.

We know that there are many professionals who are aware of their responsibilities and who always look after their clients’ revenues, as they are the main factor that constitutes the basis for calculating a company’s taxes.

The businessman who practices document withholding is not only deceiving his accountant, but mainly himself. The consequences of this practice are quite serious and may, in the long run, be the reason for lawsuits in the civil and criminal areas.

Hiding data from your accountant can be compared to a marriage where the husband has many secrets and doesn’t tell his wife. Certainly, the relationship will be destabilized, and after a while, there may be a separation.

Is Accounting A Mandatory Service?

Every company, necessarily, must hire the services of an accountant or an accounting consultancy . Contrary to what many people imagine, even the MEI (Individual Micro entrepreneur) needs accounting in order not to be taxed.

What makes this service a requirement in every organization is related to the statements that are sent to the inspection bodies. They are bonds that must be issued and sent upon signature of an accountant duly registered with your class council.

It is impossible to comply with these requirements without an accounting professional. Not only because of the technical complexity that some of these obligations have, but also because of the need for signature they require.