31 January 2018
Accountant’s professional behavior and its effect on decision making process in the companies
The accounting rules oriented to decision making process are issued, and are applied in according with the financial information needs of the company, establishing a challenge for accountants, that must have a good behavior to develop properly its professional practice. In recent years it has been observed a greater attention to the harmonization of accounting practice and to improve the quality of financial reporting, these are important decisions for the company where the accountant must assume a historic responsibility in interpreting and define the model of financial reporting using the best professional practices and fulfilling with the requirements of the new technical accounting frameworks.
To attend these challenges are needed accountants, that beyond of accounting decisions-making, in the most successful way the accountants have to handle administrative decision-making, these accounting professionals that check and produce specific reports, they must ability to prepare, analyze and interpret all the financial information of the company and thus there collaborate with the process of decision-making by management.
The new attributes demanded for the professional accountant are:
a) Proactive attitude in business organizations through initiatives that are beyond the task of preparing reports for tax purposes or legal compliance, and
b) In the generation of financial information, demonstrate knowledge of the financial business model and incorporate logical developments in the process of decision-making in the company.
The accounting professional that has these virtues and qualities, must be at the level of positions in corporate governance where the decisions are made.
The good financial performance of the company depends, largely on, of the proper direction that the accountant made of financial information. This professional must create the favorable environment for the decisions taken based on the information presented, this will contribute to get the common goals of the organization. To comply with the quality requirement of financial information, the accountant should take decisions that comply with this objective.
Introducing uniform and comparable information enables to evaluate the company and evaluate the distance in business terms with respect to other similar organizations. The decision-making process acquires special importance because the success and the fulfillment of projects are associated with the quality of the decisions made by executives, that decisions constitute one of the main points in the management of enterprises, where the financial information is a tool of main importance. Its mission is to supply bases appropriates to all levels that support the business decisions.
The accounting profession has a broad challenge, his professional behavior must be aligned to the new requirements of professional practice, and be aware of the impact of these practices in Colombia and the world. Avoid the temptation and seek the expansion of accounting and finance knowledge should be the guidelines of their professional act; the IFRS technical framework, offers opportunities for growth in the business area and allows to use the financial report as counselor for business development. The risk to avoid by the accounting professional part is when the organization detects that the prepared information is not favorable, order adjustments that divert the quality of financial reporting. To permit these practices, the professional accountant is wrapped in a series of accusations and replicas with the company’s managers and commissions that investigated the facts, being on trial its ethics and professional and personal moral.
Since in it is thought that accounting is a complex and technical process that only accountants, auditors and other professionals related to the economic and financial movements can understand of the organizations, it is work of the accountant within their professional behavior prepare simple and explicit financial report that complies with the technical requirements, so that it is understood by all levels of users of this information and facilitate decision making.
Hernando Ortiz Solano , Consulting partner Auren Colombia