1.3.1 Stewardship

Accountants today use their skills and knowledge to help managers, such as Peter (Activity 1.3), to keep proper records and to report on the assets they have been entrusted with.

A steward was an agent or manager who looked after money and resources on behalf of an owner. 

Part of their responsibility was to provide accurate and up-to-date financial info so the owner could have a reliable record of how their resources were managed. 

• Peter is accountable for how he has managed the business and has to face the consequences of poor decisions. Sarah is reliant on accurate accounting records and reports and that Peter has managed her business as her steward. 
• Sarah is also like a steward, her primary accountability is to the government as a business owner who is liable for any taxes due. She is accountable to the bank lenders and personally reliable for all debts incurred. This is likely to make Sarah very conscious of her vulnerability if anything adverse happens to the business. 
• It will be in Sarah's interest to ensure proper accounting records and reports are keep to meet her tax and other legal obligations as a business.