Accounting is critical for different entities including individuals, companies and communities. Organizations rightfully spend large sums of money on day-t0-day booking needs. Such entities also go further to pay internal and external editors to conduct different financial management and reporting activities on their behalf. Even businesses that make losses still spend significantly on accounting due to the fundamental essence of information for decision making. Businesses appreciate the essence of valuation and identify with their financial positions as at a particular time. Accounting activities are the basis for sound decision-making as well as conceptualizing appropriate investments.
The Accounting Profession
The accountant handles the day-to-day and periodic bookkeeping and financial management needs for others. The professional may be appointed by persons, organizations or even that state. The employment status may be contractual or permanent depending on the existing need. However, most accountants serve on a permanent basis with different companies due to the fact that their services are required at least every week (Barth et al. 476). The demand for book-keepers has seen the rise of accounting firms that offer comprehensive consultation service. A company or individual may work with such agencies especially where there is a need to raise the bar on reliability and professionalism. Accounting firms exist out of a track-record embodying trust and commitment. As a service-oriented profession, it is imperative to develop a firm image and engage with the clientele at a personal level.
Accountants are on the highest demand than any other time across the years. The huge competitiveness in various industries is the central rationale for greater transparency and accountability. Firms appreciate the need for sound operational and financial soundness in making different investment decisions. An accountant does not only study and establish the situation of an enterprise as the present time. On the contrary, most qualified professionals are hired to assess certain possibilities in the future. Many companies have risked major investments even at a situation of bankruptcy due to essential financial forecasts. While it may not always work in favor of organizations primarily due to the unpredictability of the market, making a financial forecast is increasingly an inevitability in the modern world of business. The fact that companies can easily access information regarding the competition, demand and supply leave out internal controls as the unique alternatives. The firm move regards making informed financial decisions that either improve the running of the organizations or enables great investments. It may also be necessary to move to a different industry deemed to result in a better output.
Accounting students also receive more consideration on the basis of greater work ethics taught in the profession. One does not get to handle the financial interest of the organization only because they have landed the job and have to meet the day-to-day responsibilities (Mulford, Charles and Comiskey 24). In addition, the professional denotes certain critical values that must be exemplified by every employee. Firstly, the workers protect the interest of the accounting profession as much as they address those of the employers. For instance, individual employees get to raise the bar on reliability due to an inherent belief in the essence of financial management. An accountant knows that they have to be answerable whether their bosses ask for it or not. An organization will also prefer to partner with accountants due to its overemphasis on ethics. The fundamental values include respect and professionalism that defines the accountant as a person and as a professional.
A qualified accountant is versed with the fundamental concepts, principles and terminologies regarding the practice. It facilitates not only the performance of various financial management actions, but also communication with other professionals both locally and internationally. The practice uses multiple universal rules such that companies can be compared based on various financial indicators such as revenues and losses. The practice uses the basic rule of linking incomes with the expenditures such that individuals and companies can fully justify the use of their resources. The accountant does not necessarily influence the performance of a business. It is upon the management to act on the financial information provided. However, the professionals may work alongside auditors to define the most suitable investment actions and timelines. Other critical terms include expenses, assets and liabilities that define the financial situation of a company as at a given time.
The accountant prepares different kinds of statements beginning with the balance sheet. It gives an actual situation of the entity such that the management can quantify its assets, liabilities and capital. The professional also eases the process of recognizing different aspects of the business. For instances, it may be advisable to limit the liquidation of assets to a particular extent. Accountants also prepare the income statements mostly on monthly, semi-annually, and annually basis. Business requires the professionals to define both the net and gross revenues for a given accounting period especially for different investment decisions.
Accountants earn different depending on multiples factors such as the categories of their jobs. The immediate employees will normally earn the lowest basis minimum remuneration although it is often higher compared to other professions in similar job categories (Stedham, Yvonne, and Yamamura 107). The salary is anything between $ 10,000 a year to as high as $80,000 annually depending on the level of work. Those on contractual employment will normally earn higher than the permanent works, while establishments such as accounting firms have evolved to attract the best-rewarded professionals.
I have always been enthusiastic about accounting both as a profession and a personal attribute. The career offers limitless opportunities for the individual especially those that aspire to serve in the service sector. The job is highly decent and earns respect for the first instance due to an inherent association with high standards of ethics. Accounting is synonymous with trust and accountability. I grew up trying to define the best practices for utilizing my time and resources fully. It always felt bad not to account for certain expenditures or timeframes fully. The discovery of the basic formula of accounting changed my life. I can easily relate any inflow with the outflow, paving the way for more productivity.
I have had different opportunities to manifest the importance of accounting to different individuals and group both at school and beyond. I have been a treasurer for various groups and got to demonstrate the rationale or reliability. It made me and the members realize the numerous problems that can be resolved through accounting. Many organizations and also the state grapple corruption and mismanagement of funds. While those in authorities hold the powers address such issues, accounting ensures comprehensive articulation of all financial transaction. It enables an organization to identify individual actions and persons responsible for every deal as at a particular time.
Barth, Mary E., Wayne R. Landsman, and Mark H. Lang. “International accounting standards and accounting quality.” Journal of accounting research 46.3 (2008): 467-498.
Mulford, Charles W., and Eugene E. Comiskey. The financial numbers game: detecting creative accounting practices. John Wiley & Sons, 2005.
Stedham, Yvonne, and Jeanne H. Yamamura. “Research Note: Gender and Salary: A Comparative Study of Accountants in the US and Australia.” Asia Pacific Journal of Human Resources 38.3 (2000): 104-116.