CHAPTER ONE
INTRODUCTION
Background of the Study
The role of an accountant, describes
ways in which information support mechanisms used to promote sustainable
development and the challenges and opportunities for accountant that these
present. The report takes a market based approach, starting from the fact that
individual, societies and governments are interested in the environment and
that professional accountant in business and in practice are likely to have an
increasing role in meeting those concerns.
Over the past few decades, the
concept of accounting and role of accountant have witnessed tremendous
revolutionary change. Accounting has developed from a mere records system to an
information system. The role of an
accountant has also grown from that of mere record-keeping to now include
rendering of wide range of services to society e.g. auditing, taxation and
financial services. The accountant is now seen as a highly respected
professional to be consulted for a wide range of business related services.
Chukwu (2004).
According to Igben (2009) an
accountant is a person who undergone a formal or professional training in the
process of accounting and who belong to at least one of recognized professional
accountancy bodies such as institute of Chartered accountants of Nigeria
(ICAN).According to Prof. Kumar (2013) An accountant is a very important person
in any business organization because he is responsible for maintaining the
accounting records, he calculate and gives information to his employers about
the revenue and financial position of the organization and about the business
net profit. Thus, if any accountant is appointed in any company, then he has to
calculate encase, VAT and income, tax amount and also file return of the above
duties and tax as this representing officer of company.
Accountants are business partners who
understand the daily operation of a business they observe and report on what is
going right or wrong in everyday business. They also look for cost effective
strategies to save the business money as well as make decisions on labor,
current and capital expenditure. However, successes of a business offer a wide
array of specialties that can really help an organization develop. They are
also reporters of fiscal reports. They analyze financial data and report back
in understandable language the areas of good and bad financial performance and
offer solutions to the business. Accountants can balance the cost of something
against what it is worth and then advise the business to make change or keep
doing something.
Lagos State Transport Corporation
is one of Transport Corporation in Ikeja local government of Delta State.
It was established in 17th December 1996 when the state was created by a
military commandant WALTER FEGHABOR with 8 bed ford buses, 32 setter and 91
staff. The first general manager was late Mr. Isaac Ibe. The corporation is
made up of five departments: Administrative department, finance department,
operation department, and mechanical department.
In April 2001, another general
manager emulated and it was during this period that Governor Sam Egwu gave the
company 20 Toyota buses and the staff increase to 137. Then, in October 2001,
another manager emulated late Sir, D.O. Nwode. In his period, the staff
increased to 187 and another department was established which was percentage
insurance manifest. Also the car added were 4 Luxurious buses, 2-14-14 (Mecedez
608) 22 Toyota, computerized buses,4, ford, one station wagon, one Peugeot saloon car and one 911.
Nevertheless, the major aim of every
businesses organization or company is to make profit and to ascertain this
profit in an organization there must be an involvement of an accountant who
keeps record of financial transaction and analysis it for effective
performance.
According to Ayoade (2006) one major
step of effective performance of any organization is book-keeping or record
keeping as it is being used interchangeably. The importance of an accountant in
any business organization is to provide information on business financial
result. This information is usually used for decision making.
According to Brunecci (2006) an
accountant creates and analyses financial report as well as designed and
manages the financial system which book keepers use to record transaction. Every business whether
trading or transport need an accountant to record and analyze its financial
transaction for effective and efficient result. The important of accountant is
very necessary because of its professional training in performance of amounting
function. However, this research study will be examining critically the role an
accountant play in every organization.
Statement of
Problem
The main reason of setting up
business organization is to make profit. There is no business organization that
would like to maximize loss than profit even though is a charity organization.
For business organization to ascertain its profit, an accountant would have to
keep its financial record and analyze them whether quartering, monthly or
yearly.
According to Prof. Kumar (2013) an
accountant is a very important person in business organization, he is
responsibly for maintaining the accounting record and for calculating the net
profit. He gives information to his employer about revenue and financial
position of the organization. Accountant is a person who has a requisite skills
experience in establishing and maintaining accurate financial record for
individual or business organization. The duty of an accountant may include
designing and controlling system of record, planning of financial statement and
auditing books. An accountant gives information or profitability and
performances of business organization. According to Igben (2009) an accountant
is a person who has undergone a formal or professional training in the process
of accounting and who belongs to at least one recognized bodies such as Institute
to Chartered Accountant of Nigeria (ICAN).
The increasing rate of failure among
business organizations as a result of negligence of accountant by business
management and inability of the accountant to render true and fair information
in business organization in Ikeja local government area of Lagos State.
Most Business Organization Management do
not give importance to accountant, they feel that recording of financial
transaction, analyses and preparation of financial report are not necessary in
business organization. Some of the business organizations do not have
accounting department; the reason behind this is because of their dubious and
fraudulence attitude because they feel accountants are policemen behind their
backs.
More so, some business managers do not
appreciate the role of accountant in assisting the management. Accountants also
are incompetent to work in accordance to the ethical guideline of accounting
in every business organization the inability of some accountant to stand by
this guideline as to render true and fair information has made managers of
business organization to disregard them. The effect of these has cause
ineffective and inefficient performances of business organization and has also
given room to fraud. All this now calls for the reason for this study to
critically analyze the role of an accountant in an organization.
Purpose on the
Study
The main purpose of the study was to
analyze the role of accountant in an organization. Specifically, the study
sought to:
- Identify the role of accountant in Lagos State Transport Corporation?
- Determine to what extent an accountant will assist management in achieving organizational effectiveness in performance/operation.
- Determine to what extent an accountant will assist the management in achieving organizational efficiency in the budgeting process.
- Ascertain the extent an accountant will assist Lagos State Transport Corporation to achieve its goal.
- Ascertain strategies for improving the effectiveness and efficiency of an accountant in Lagos State Transport Corporation.
Significance of
the Study
The importance of the study is to
analyze the role of accountant in a business organization, particularly Lagos and (EBOTRANS)
Ebonyi State Transport Corporation. This study will also contribute to the
knowledge of students, lecturers and entire public at large it will also
encourage the management of organization to appreciate the importance of
accountant in an organization. Also the study will encourage a better business
relationship between mangers and accountant of business organization.
Finally, specifically, the research
study will create more knowledge of role of accountant to the managers, public,
including the accountant towards the survival, growth and sustainability of
business organization.
Research
Questions
1. What are the roles of an accountant in Lagos State Transport Corporation?
2. To what extent does an accountant assist the management of an organization in achieving organizational effectiveness in performance/operation?
3. To what extent does an accountant assist the management of an organization in achieving organizational efficiency in the budgeting process?
4. To what extent does an accountant help an organization to achieve its organizational goal?
5. What are the strategies of improving effectiveness and efficiency of an accountant?
Scope of Study
This research work is limited to Lagos State Transport Corporation Ikeja. In Ikeja local Government Area of Lagos State.
THE ROLE OF AN ACCOUNTANT IN LAGOS STATE TRANSPORT CORPORATION IKEJA
THE ROLE OF AN ACCOUNTANT IN EBONYI STATE TRANSPORT CORPORATION ABAKALIKI
THE ROLE OF AN ACCOUNTANT IN DELTA STATE TRANSPORT CORPORATION WARRI
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