The Role of an Accountant in a Third World Economy
The role of the accountant has become more important than ever as emerging economies are growing at a fast pace. The role of an accountant is to manage, audit, and inspect financial records of individuals or businesses and to prepare financial reports. Without the work of an accountant, modern countries would not know where they financially stand. Knowing one’s position is critical in surviving the ruthless global market. But where should accountants stand when dealing with companies in a foreign, low-income economy? What are their roles? Professional accountants must not stand idly by and use their roles as leaders to help build structure in an ethical environment.
Developing countries are areas with low-living standards, an undeveloped industrial base, and have not reached a degree of industrialization compared to other nations. Many problems are creating challenges for these economies. Low human capital, weak government regulations, child labor, and many others are plaguing the progress of these markets. Corruption runs rampant as billions of dollars are flowing out of businesses because of illicit activity, forged records, and trade mispricing. These challenges offer an opportunity for accountants to contribute.
While accountants have a variety of roles, they typically involve planning, evaluation, and improvement of governance in an organization. Business survival depends on the effective performance of the accounting profession. Decision-making by businesses are dependent on the financial information relayed by accountants. Therefore, accountants play a key role to business prosperity.
Supporting, encouraging, and promoting competitiveness and financial stability is a main goal that accountants relay to the markets in the emerging economies. Accountants must also facilitate the mobilization of domestic and international investments, create a sound investment environment, reduce corruption and mismanagement of resources, foster investor confidence, and strengthen enterprise competitiveness.
The contribution of professional accountants is demonstrated through strong financial management in both public and private sectors. It will also affect how funding is addressed to relate to national and local priorities. Reports will convey the availability of resources for investments and the cost-effectiveness of public services. The improvements will garner public trust in these growing organizations if there is a sense of accountability and transparency in the use of public funds.
Emerging, growing economies in low-income nations are in a delicate state. Acting in the capacity as leaders, accountants must use their roles with a high level of integrity. The roles of accountants must not be compromised and their leadership is vital in the success of businesses in third world countries.