Increasing Role of Consultants in the Era of Globalization

By Shwetank Mishra, Manager(Accounts, Tax, Cost), Steamline Industries


Shwetank Mishra, Manager(Accounts, Tax, Cost), Steamline Industries

As we see the rapidly changing environment and the cut throat competition everywhere in this era of globalization, the importance of Accounting and Tax Consultants can no less be considered.

They have a wider scope of work and responsibility, than is generally considered. Right from keeping a check on the accuracy to analyzing the financial operations, consultants need to be attentive every time.

The reason why consultants may help better than the regular employees having same line of knowledge about the subject matter, is that they (consultants), being new to the working environment of the organization, look at the situations, from a different perspective altogether. Since, they have a diversity in their way to approach, they get to see more opportunities and come out with an option, which proves to be more fruitful to the company. Besides, due to their thorough study in the fields of accounting and taxation, they are well aware of the consequences that may take place after the application of a certain option.

The necessity for a consultant by an individual or organization structure depends on their needs. Where, his services may be required to fix or improve a particular component of business, he may also be hired to get advices, make recommendations for problem solving.

Talking about the success of any organization, we consider factors like sales, profit margins and other financial reports. Since, the financial data gives us the information on how the organization has been performing, we figure out the success on that basis.

However, the proper interpretation of the financial statements is far more important job, which rests with the accounting and tax consultants. With their knowledge and strong analytical skills, they not only bear this capability to ensure smooth functioning of the association, but also take preventive measures, to avoid any loss, through their far sightedness.

Accounting consultants have a vigorous job of deciding the kind of orders to be placed, bills payments to payroll. Besides, their advice is required in issues related to revenue and expenditure, financial commitments, future expectations in terms of revenue generation, etc. Moreover, they have to handle many intricate financial details, on a day to day basis, including the analysis of financial data so that any discrepancy and irregularity that may arise in the business may be resolved. Also, their recommendations for developing efficient resources and procedures, for sorting specific financial problems, is highly important for the successful working if the organization.

A simple issue on whether to go for a merger or not needs a comprehensive learning about its pros and cons. The management may have gone through the prospective outcomes, but still, as it has an already set perception, it may not be able to evaluate things properly. Here, consultants play their part. Validating the benefits, costs, saving and whatever that can be obtained through a proposed merger is analytically examined by the consultant, from every possible angle, to give the best possible advice.

The management may get influenced in passing a proposal, but as the opinion of an advisor is unbiased, being an outsider, he does not find it difficult at all, to present the unpleasant realities.

Tax consultant or tax advisor, having expertise and training in tax laws, help in the verification of balance sheets. Tax consultants play an important role in minimizing taxation, and understand the complicated tax details. He educates the clients on tax options, including legal ways to lower the tax liability, compute tax on the basis of investments made, and the adjustments that can be made as per the financial situation.The enormous activities of any enterprise, are in themselves very difficult to manage. And, to file the tax returns, to understand the tax related rules, is another complex task. Since, the management strives to achieve success, it definitely cannot afford to commit mistakes and get involved in legal complexities. The tax consultants take over the load of looking after all such legal matters, through technical expertise.

Consultants, apart from advising on the tax, and accounting matters, to get desired results, also may be hired to find out the reasons, for the failure of a certain project or decision. He, with the use of his deep knowledge in the concerned matter, has the ability to recognize the factors responsible for the breakdown. After his detailed study, on what went wrong in the implication process, he helps the management to identify the problems and understand what all points need to be kept in mind in future, if a similar situation appears.

To conclude, Accounting and Tax Consultants are like brain of the organization, which receive and send signals, according to the business environment around and lead to the success of the enterprise, by suggesting right measures at the right time. Not only they help in the minimization of cost and the burden of taxation, but also, share the knowledge they have with the management, so that necessary steps can be initiated for the smooth and successful running of the organization, in the long run.

Current Issue