Question

why do accountants need to understand the organisational structure of the business

Answer 1

Organisational Structure helps to understand the manage the responsibilities and functions of an individual in order to achieve the organizational Objectives; Its Necessary for accountant to understand the Organisational Structure of the business so that he can come to know the operations of the company which has to shown same in the accounting books, Also it helps to know the approval process of Purchase order, release of Payment, contract signing etc, so while before book any entry in the books he should be aware whether it has been followed correct approval process.