Question

How is the role of accountants connected with the Predictive Accounting?

Answer 1

First of all whenever accounting comes, the role of accountant is directly understood.
Accountant is the one who have knowledge about the accounting and understands the role of accounting in a business entity.
Accountant prepares all the accounts of the business and helps in the representation of financial statements of any business entity.

Now, predictive accounting is said to be projection of accounting in future. It is related to accounting of future, using the past performance data.
Basically predictive accounting is done keeping in mind that the business is a repeatable i.e business will be the same in future also.

It can also be said that role of accountants is connected with predictive accounting as :

• Accountants can do business analysis much more accurately as compared with any other person.
• Accountants have knowledge about the business accounting and understands business accounting.
• Accountants can easily manage business accounting and can do predictive accounting accurately.