Accountants' role and influence

Influence on organisations:

The influence of the accountancy profession on organisations is potentially very significant.

This is largely due to the range of services that accountants can provide, including:

– Financial accounting 

– Audit 

– Management accounting 

– Taxation advice 

– Consultancy. 

Limitations on influence:

The influence of accountants is limited regarding ethical and other areas by the following factors:

– The extent of organisational reporting, particularly with regards to organisations in financial difficulties.

– Conflicts of interest in selling additional services

– Long-term relationship with clients

– Overall size of accountancy firms

– Focus on growth and profit.

Influence in society :

Accountancy can be seen as a profession involved with accountability. 

– It is seen, at least by accountants, as being able to act in the public interest.

– Although the profession has the skills and knowledge to assist in the development of new initiatives, it may not be trusted fully due to past failings.

– Barriers exist with the accountancy profession that lead to accountants avoiding change and maintaining the status quo.

– But the accountancy profession does have the knowledge to become involved in new initiatives. 

– an example of new public interest work is CSR reporting. 

Influence on power and wealth distribution :

 –Accountants have specialist skills and knowledge which can be used in the public interest.

– Society may have the objective of obtaining a more equal distribution of power and wealth.

– Given their abilities, accountants can probably advise on how that power and wealth can be distributed.