What are the functions of head of account in a business

The head of account function is a broad one and involves the overseeing of all accounting and finance aspects of a business. A good knowledge of accounting is necessary for this position including having a minimum of five years experience in relevant areas such as auditing and compliance. This article dive into ten functions of the head of account of an organization.

1. Who is the head of account

The head of account (HOA) of an organization is the staff responsible for the accuracy of the accounting system and other related financial areas of the organization. He is also referred to as the chief accounting officer (CAO) who works closely with the chief financial officer (CFO). In an organization without the HOA, the chief financial officer takes that responsibility. 

2. Functions of the head of account

2.1 Accurate accounting information

The head of account ensures the accuracy of accounting information. From invoicing to recording down to the preparation of management reports. Note that accurate accounting information aids good decision making. 

2.2 Manage the entity accounting system

The overall accounting system of the organization is managed by the HOA. He/she ensures the smooth running of the system. He is responsible for any issue arising from it And must take necessary steps to correct them.

2.3 Supervise the accounting and finance staff

This management staff supervises the accounting and finance staff of the entity. This is true for large organizations. As the head of his department, he is responsible to the staff under him and ensures they are well motivated to carry out their routine. 

2.4 Ensure compliance on related accounting processes

It is the duty of compliance officers to ensure that the accounting procedures are strictly followed. But that's not all. With the help of the internal control team, this can be achieved.

2.5 Prepare monthly management report

The head of account prepared the monthly management report for the organization. The report helps the entity's directors to know if the organization is meeting their objectives.

2.6 Present annual report of the entity

He also prepares and presents the annual report of the entity. This includes the profit or loss statement, balance sheet, statement of cash flow and changes in equity. 

2.7 Have access to all accounting documentation

He should be able to assess all accounting documents at any time and without hindrance to ensure reporting accuracy and transparency.

2.8 Involved in the preparation of budget and budgetary control

HOA prepares the annual budget of the entity and ensures budgetary controls are in place to monitor compliance to the budget as well as measure performance. 

2.9 Prepare the tax return of the entity

It is the duty of the head of account to prepare the tax return of an entity. This includes the payroll, Withholding, VAT, company income tax, stamp duty and any other taxes as required by the law. He may also delegate some of the activities to subordinates. 

2.10 Analyze the entity financial statements

The head of account may be called upon to clarify the financial statements of the entity. In that case, he will analyze the statements using various metrics such as ratios and percentages to help the directors in their understanding of the report.

3. Conclusion

In final words, the head of account of an organization is the individual in charge of the accounting system of an entity. He/she is involved in various functions such as budgeting, control and compliance. Another name for the head of account is the chief accounting officer.