Showing posts with label Accounting. Show all posts
Showing posts with label Accounting. Show all posts
Pursuing a Career in Accounting
| Accountants are the people who are delegated the responsibility of auditing and accounting the financial activities of a business. Some of the accounting activities they undertake include payroll, tax compliance, overseeing books and others. If you believe that you are good with numbers, then consider taking accounting courses. It could just be the start of a lucrative and an exciting career path. Accounting courses include a study of the all aspects of accounting including auditing, cost accounting and such topics as corporate and individual taxation. It will also be necessary to hone one’s skills in the use of accounting information systems. If you are thinking of a career in this direction, it will require you undertake a four-year degree or even more to be a certified public accountant. Today however, there are many accounting courses online programs that allow you to take even one or two years of online account coursework and get you ready for a para-professional accounting position in either taxation or in auditing. One of the accounting courses that are available is book keeping. This involves keeping track of financial records that includes such things as debited and credited accounts and updating the company’s general ledger. Book keeping is essential since it ensures that the trial balance document balances with the debit and credit balance accounts. Before the company’s account can prepare any financial statements, these two documents must tally. Book keeping also involves keeping track and preparation of invoices and the updating of inventory accounts. Another of the accounting courses available is a specialized branch of accounting called financial accounting. This coursework allows one to keep track of a company’s financial transactions. These transactions are then summarized and presented in a financial statement. Financial statements are usually issued on a routine schedule and are considered external since they are widely circulated among the primary as well as the secondary recipients. These statements provide enough information to help others assess the value of a company. Other accounting courses include payroll accounting, managerial and cost accounting. Payroll accounting courses include the study of payroll-related accounts such as salaries, wages, bonuses, social security costs, state income taxation among others. Since payroll accounting includes items that are subject to state and federal laws, a study of certain laws is necessary as part of the accounting courses. There are many online accounting courses being offered and many organizations recognize them just as traditional certifications. Check out what they have to offer and you may just be on the road to an exciting career in accounting. |
| Author Resource:- p>Gary has been writing articles for about 6 months now. If the subject is something he likes, he writes about it. You can also check out his latest website on Water Cooler Dispensers |
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Why Financial Accounting is Neither Simple Nor Precise
| Financial accounting strives to answer two basic questions: how did the business do last year, and what did the business own and owe at the end of the year? The answers to these questions are summarized in two basic statements, the income statement and the balance sheet. If you have even a passing knowledge of business and economics, answering these questions might not seem that difficult. In fact, determining a firm's economic performance and condition often is very difficult. Unfortunately, financial statements rarely are able to give completely definitive and precise answers to what seem to be simple economic questions. Why would this be so? Accounting's measurement problems derive primarily from three factors. First, it is difficult to pin down exact criteria for measuring economic performance and economic condition. Second, accounting uses money as its fundamental measurement unit, and money's unit value is not stable over time. Third, accounting rule makers have to allow for the fact that business managers often are motivated to distort economic reality rather than reflect it accurately. What is Economic Performance and Economic Condition? In terms of economic performance, our simplest criterion for doing well surely involves looking at cash flows. A business does well if it brings in more cash than it spends and vice versa. But for all but the very simplest of businesses such a measurement approach can be very problematic. Negative cash flow is not necessarily equivalent to poor economic performance and vice versa. Because of these problems, accountants have had to develop a more abstract concept of economic profitability, which creates its own problems. Accounting encounters even more difficulty in trying to pin down a firm's economic condition. To determine economic condition we want to find out about a firm's assets and their values. But there is more than one standard of value. Should accountants use current market values for assets owned or the original cost incurred to acquire them? Rarely are these values the same and there are advantages and disadvantages to both standards. There also is legitimate controversy about what should be counted as assets on the balance sheet. For example, should the value of personnel or intangible assets, such as patents, trademarks and goodwill, be measured and included? If so, how do we measure their value? Money: Accounting's Unstable Measurement Unit In accounting the unit of measurement is money. Money is a medium of exchange that has value only to the extent that it can be traded for goods and services. But, money is not a stable unit of measurement, because its exchange value varies with time. What one dollar buys today in goods and services is almost never the same as what that same dollar purchased last year or will purchase two years from now. The practical ramifications of this instability of money as a measuring unit are pervasive. If a company had net income last year of $100,000, was its economic performance the same as it was five years ago when its income statement also showed a $100,000 net income? Decidedly not, if the purchasing power of the dollar changed significantly in the intervening five years. Questions about economic condition are also affected by the instability of money as a measurement unit. For example, consider two companies each with $800,000 of assets and $500,000 of liabilities. In the case of one company, all its debt must be repaid within one year, while the other company's debt does not have to be repaid for ten years. Are the economic conditions of the companies the same? Again, decidedly not, because the purchasing power of the dollar will change over the next ten years. Accounting rule makers have struggled greatly with the questions of how and when these changes in the value of money should be reflected. Measurement Error: Management's Motivation for Mendacity Measurement error is unavoidable. But it would be nice if we could assume that almost everybody involved in the accounting measurement process was highly motivated to avoid errors. Sadly, this is not the case, because business managers often wish to avoid accurate measurements if such accuracy would lead to significant damage to their career and finances. Facing such ruin, managers will be strongly tempted to avoid fair and accurate measurements. Managers will seek to "cook the books". There are two important ramifications for accounting stemming from this motivational bias. First, in order for financial reports to have any credibility at all, they have to be verified by independent auditors. This is an expensive and often imperfect process. Second, in formulating accounting rules, the rule makers have to carefully consider how any proposed measurement procedures might be subverted by managers intent on providing a skewed view of economic performance or condition. The practical consequence is that the accounting rules that might be most logical and simple are often not adopted because these rules also tend to be the easiest ones for managers to distort. |
| Author Resource:- Michael Sack Elmaleh is a Certified Public Accountant and Certified Valuation Analyst. His book, "Financial Accounting: A Mercifully Brief Introduction", has received wide critical acclaim. He has nearly 30 years of accounting and 10 years of teaching experience.His web site is understand-accounting.net |
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Accounts: Reviews on Basic Principals and Personal Accounting
GAAP is the gold standard for preparing financial statement. Not disclosing that it has used principles other than GAAP makes a company legally liable for any misleading or misunderstood data. These principles have been fine-tuned over decades and have effectively governed accounting methods and the financial reporting systems of businesses. Different principles have been established for different types of business entities, such for-profit and not-for-profit companies, governments and other enterprises.
GAAP's in accounting are not cut and dried. However they're guidelines, and as such are often open to interpretation. They are estimates have to be made at times, and they require good faith efforts towards accuracy. You've surely heard the phrase "creative accounting" and this is when a company pushes the envelope a little (or a lot) to make their business look more profitable than it might actually be. This is also called massaging the numbers. This can get out of control and quickly turn into accounting fraud, which is also called cooking the books. The results of these practices can be devastating and ruin hundreds and thousands of lives, as in the cases of Enron, Rite Aid and others.
Personal accounting
On personal accounting, you balance your checkbook to note any charges in your checking account that you haven't recorded in your checkbook. Some of these can include ATM fees, overdraft fees, special transaction fees or low balance fees, if you're required to keep a minimum balance in your account. You also balance your checkbook to record any credits that you haven't noted previously. They might include automatic deposits, or refunds or other electronic deposits. Your checking account might be an interest-bearing account and you want to record any interest that it's earned.
Income - any money you've earned from working or owning assets, unless there are specific exemptions from income tax.
Standard deduction - some personal expenditures or business expenses can be deducted from your income to reduce the taxable amount of income. These expenses include items such as interest paid on your home mortgage, charitable contributions and property taxes.
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Figuring Out an Accounting Career
What You Can Count On: Job Security
For the 2007 fiscal year, Microsoft reported an annual revenue of $51.2 billion. Behind any company's revenue numbers--big or small--are accountants and financial managers who balance the books. In 2002, the Sarbanes-Oxley Act added further scrutiny to corporate procedures. Between government regulations and the thousands of companies that need to manage finances, the immediate benefit of a career in accounting is a reasonable amount of job security. Additionally, the Bureau of Labor Statistics (BLS) predicts strong growth for accountants and auditors through 2016.
What You Can Take to the Bank: Strong Earnings
Another benefit for an accountant is that the median annual salary for accounting, tax preparation, bookkeeping, and payroll services is $57,020. Going further into the financial services industry, you could become a financial manager for a major corporation and earn in the neighborhood of $105,410 a year according to the BLS. You can also work your way up the corporate ladder to financial director, corporate controller, or even chief financial officer (CFO).
What Education You Need: Accounting Degree and Certification
A college degree and certification are almost essential for advancement and a long term career in accounting. A bachelor's degree in accounting or a finance related topic is a solid start, and earning a Certified Public Accountant (CPA) credential furthers your employability prospects. You can even take it a step-further by earning a specialized certification such as a Certified Management Accountant (CMA), Certified Internal Auditor (CIA), Accredited Tax Advisor (ATA), or other credential. The American Institute of Certified Public Accountants reports on a survey finding that candidates with a professional certification can earn 10% more than other accountants. A graduate degree can also help you stand out from the crowd.
If keeping track of the nickels and dimes is your passion, then accounting may be what you can count on for a career.
About the Author: Kelli Smith is the senior editor for www.Edu411.org. Edu411.org lists colleges and career institutes that offer Accounting programs and CPA training. Schools listed offer free information packages and admissions consultation.
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Accounting Programs
There was a time when small businesses, especially mom and pop stores could get away without maintaining accounts of any sort. In fact, the sole reason why they were classified as mom and pop stores were because the business was run in an ad hoc manner. But with increasing number of people opting for small businesses and the entrepreneurial initiatives being fostered by governments worldwide, these businesses to have come to represent a large part of the gross domestic produce of countries worldwide. This is where the need for complete accountings programs surfaced and which is why, it has become a big issues for all businesses.
There are various accounting programs structured to cater to the needs of all kinds of businesses. While the smaller stores use standalone accounting programs and smaller, single user license versions of the more popular accounting programs; the larger stores need to use a comprehensive suite of accounting programs. Be that as it may, the fact remains that all businesses, large or small, need to use accounting programs of some sort in order to streamline their operations and to comply with governmental regulations.
One of the simplest accounting programs available in the market today is Microsoft Money. While most computers bought in the United States of America come pre loaded with this accounting program, it is applicable only for personal finance calculations or maybe small business needs. But as accounting programs go, it is fairly well designed to cater to the needs of smaller businesses. Which explains its popularity in terms of number of users who use it as their primary accounting program.
A slightly more evolved accounting program is something that has come to be branded and sold as Tally. Like the name reveals, this is an accounting program that caters to the needs of smaller businesses, where the accounting operation is primarily a function that tallies stock (either available or sold) with the cash available in the machines at the counter. That's not all. An accounting program like Tally comes with a customizable interface making it scalable for a variety of business operations. So smaller businesses even in the services sector are able to use it to streamline their processes.
Today, the wide array of accounting programs available in the market make it easier for businesses not only to organize themselves, but also to comply with local, national and global requirements. Every business thus can adopt and deploy the best practices that make globalization beneficial to one and all.
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The Nitty-Gritty Of Accounting
Accounting is as ancient as man's attempts to transact with fellow human beings. With the predominance of money measurement in economically useful activities, accounting became the most vital tool. At the center of all accounting principles is the urge to ensure accuracy and consistency. This takes the form of double entry system of accounting. The 15th century Italian mathematician, Frater Luca Pacioli, first extolled about the features of the system.
Double entry method offers a convenient and accurate format for recording transactions. Put simply, all transactions have two aspects. Therefore, omissions or numerical errors would automatically stand out. Thus, it acts as a self-correcting mechanism.
The basic aspects of accounting relate to correct classification of transactions. There are four major accounting heads: assets, liabilities, revenues and expenses. At any given point of time, the firm's assets should equal its liabilities. This is the accounting equation. If they do not match, there is an apparent error in the accounting process.
The enterprise's assets represent the productive resources used by it. Plant and Machinery, building, stock of raw materials and stores, debtors or accounts receivables, cash and bank balances are some of the assets. Liabilities are the sources that finance the assets. Owner's capital, long-term loans, short-term bills, sundry creditors and other financing are the liabilities.
When revenues exceed expenses, the firm makes a profit and in the reverse it is a loss. Ultimately, profit or loss reflects in the financial position or the values of assets and liabilities on the given date. An increase in assets or decrease in liabilities means profit and decrease in assets or increase in liabilities mean loss.
Profit is the driver in any business enterprise and no wonder entrepreneurs seek to maximize it. More critical than profit is the measure of profitability because the latter reveals the firm's efficiency in utilization of financial resources. Return on Investment is the most common profitability ratio. The claim over profits of a business depends on the organizational type. In ownership or partnership firms, the owner or partners have total claim over the profit. In joint stock companies, the stockholders are entitled only to the dividend as declared by the board of directors.
The work of an accountant is crucial as he reports the performance of the enterprise to the management and the owners. Based on the figures supplied by him, important decisions like capacity expansion, make or buy, retaining or hiving off unprofitable lines of business and employee incentive computation are taken.
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What is accounting fraud?
--Not listing prepaid expenses or other incidental assets
--Not showing certain classifications of current assets and/or liabilities
--Collapsing short- and long-term debt into one amount.
Over-recording sales revenue is the most common technique of accounting fraud. A business may ship products to customers that they haven't ordered, knowing that those customers will return the products after the end of the year. Until the returns are made, the business records the shipments as if they were actual sales. Or a business may engage in channel stuffing. It delivers products to dealers or final customers that they really don't want, but business makes deals on the side that provide incentives and special privileges if the dealers or customers don't object to taking premature delivery of the products. A business may also delay recording products that have been returned by customers to avoid recognizing these offsets against sales revenue in the current year
The other way a business commits accounting fraud is by under-recording expenses, such as not recording depreciation expense. Or a business may choose not to record all of its cost of goods sold expense fore the sales made during a period. This would make the gross margin higher, but the business's inventory asset would include products that actually are not in inventory because they've been delivered to customers.
A business might also choose not to record asset losses that should be recognized, such as uncollectible accounts receivable, or it might not write down inventory under the lower of cost or market rule. A business might also not record the full amount of the liability for an expense, making that liability understated in the company's balance sheet. Its profit, therefore, would be overstated.
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How is accounting used in business?
It's important not to confuse profit with cash flow. Profit equals sales revenue minus expenses. A business manager shouldn't assume that sales revenue equals cash inflow and that expenses equal cash outflows. In recording sales revenue, cash or another asset is increased. The asset accounts receivable is increased in recording revenue for sales made on credit. Many expenses are recorded by decreasing an asset other than cash. For example, cost of goods sold is recorded with a decrease to the inventory asset and depreciation expense is recorded with a decrease to the book value of fixed assets. Also, some expenses are recorded with an increase in the accounts payable liability or an increase in the accrued expenses payable liability.
Remember that some budgeting is better than none. Budgeting provides important advantages, like understanding the profit dynamics and the financial structure of the business. It also helps for planning for changes in the upcoming reporting period. Budgeting forces a business manager to focus on the factors that need to be improved to increase profit. A well-designed management profit and loss report provides the essential framework for budgeting profit. It's always a good idea to look ahead to the coming year. If nothing else, at least plug the numbers in your profit report for sales volume, sales prices, product costs and other expense and see how your projected profit looks for the coming year.
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How is accounting used in business?
It's important not to confuse profit with cash flow. Profit equals sales revenue minus expenses. A business manager shouldn't assume that sales revenue equals cash inflow and that expenses equal cash outflows. In recording sales revenue, cash or another asset is increased. The asset accounts receivable is increased in recording revenue for sales made on credit. Many expenses are recorded by decreasing an asset other than cash. For example, cost of goods sold is recorded with a decrease to the inventory asset and depreciation expense is recorded with a decrease to the book value of fixed assets. Also, some expenses are recorded with an increase in the accounts payable liability or an increase in the accrued expenses payable liability.
Remember that some budgeting is better than none. Budgeting provides important advantages, like understanding the profit dynamics and the financial structure of the business. It also helps for planning for changes in the upcoming reporting period. Budgeting forces a business manager to focus on the factors that need to be improved to increase profit. A well-designed management profit and loss report provides the essential framework for budgeting profit. It's always a good idea to look ahead to the coming year. If nothing else, at least plug the numbers in your profit report for sales volume, sales prices, product costs and other expense and see how your projected profit looks for the coming year.
Accounting Basics 1- Where did Accounting Come From?
Financial Accounting ACG2021 Spring 2008 Chapter 1 Crosson
From Boring Accountant to Dynamic Accounting Artist
The accountant is widely considered to be a human computer without a personality. They often the target of vicious jokes in publications, e-mails and discussions. Accounting students at colleges are for the most part considered a “nerdy class”.
Many people consider a career in accounting , for the financial rewards, not the career itself.
The rigorous studying and training could have something to do with this “boring” perception. But also the conservative clubs and societies that accountants are compelled to belong to. A host of laws governing the profession removes the accountant at times, from reality.
After the collusion in fraud at Enron, WorldCom and other corporate failures, the word “crook”, also comes to mind. So the accountant might be sought after for his number crunching and tax skills. But in the minds of most people, businesses and the man on the street, alike, they are not respected.
Accounting degrees vary, but very few of them include proper communication skills in their courses. A common critique of accountants is that they cannot convey the highly technical accounting information to the laymen. The users of accounting information incur high fees to make critical decisions about their businesses and organizations.
A stiff culture permeates many accounting firms, regimented by practice rules, accounting standards and even government ordinances. Accountants complain about “compliance” issues, but are oblivious to the fact that their inputs, at tax workshops, contributed to all these laws, which they claim to detest.
Some salient points need to be addressed beyond the funny nerdy images of accountants.
They are:
· Greed, very high fees for a simple report or short consultation.
· Lack of communication skills (common perception)
· Critical of fellow professionals
· Low quality work (for high fees)
With so many clients at some firms, accountants are pushing through poorly prepared financial reports. This also ties into the greed, raking in as much hours/fees as possible. No wonder, accountants are seen as the scum of the earth.
The Accounting Artist: An artist loves what he does, whether he gets paid or not. If the accountant views every report or assignment as a “work of art”, that requires diligent time and attention. Or better still, he sees his assignment, as a creative process, fewer reports would be returned for correction or clarification.
By creating professional files for every client, and preparing “working papers” for every assignment, not- just- audits, the accountant will enjoy his assignments more.
Building blocks and safeguards are also put in place, since every relevant detail, from the clients phone number to his banks statement are placed on file. Lead schedules connecting information to accounts are clearly referenced. After all the notes are concluded, a financial statement, cash flow forecast or business plan is produced. Just like a Picasso produced a painting. Accountants should shy away from auditing/ working paper software. Retain the manual process. Painters don’t use software. Other software tools such as spreadsheets, is imperative. But accountants rush through some reports, (using auditing software) after years of repeating the cycle; they get bored, and also become boring in the process.
Fewer, but high profile assignments can be taken on. A client would not hesitate to pay a higher fee, for a quality report.
The accounting artist using all the tools at his disposal , will not produce fraudulent financial statements.
About the Author:
Sean Goss
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Careers and Prospects in Accounting and Finance
Do you enjoy the challenge of working with numbers on a daily basis? Then an accounting finance career is right for you. With the tools that were taught in school, you will be able to help a company or a business run efficiently.
What is a CPA - CPA is the statutory title of qualified accountants who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.
Primary Function of a CPA - CPA can attest to the validity of financial information. This means that they can audit financial statements and report on whether they are accurate or not. Certified Public Accountant (CPA) are licensed by law.A CPA attest to the reasonableness of disclosures, the freedom from material misstatement, and the adherence to the applicable generally accepted accounting principles (GAAP) in financial statements.
Career Opportunities in Accounting and Finance - Career opportunities in accounting and finance are endless. You can earn a degree in accounting and become a general accountant, but this is just one of the options you can follow. Some of things that you can get into include actuaries, auditing, banking, chartered accounting, corporate finance, corporate recovery, stock broking and taxation management. There are also specialist areas you can pursue, such as auditing, management policy and taxation.
If you have either a CPA or CA license with you, it is possible for you to work for a large firm that has offices both here and abroad. Given that every company needs ones, it will not be that hard to find a job.
Career Prospects - One report shows that employments prospects for these professionals is quite high over the past 5 years and this is expected to continue until after 2010. You will also be handsomely rewarded with a good salary but long hours come with the territory especially when companies and individuals have to file their income taxes and towards the end of the financial year.
Average Annual Income - Just to give you an idea, newly grades who work in banks earn an average of $35,000 to $50,000 annually, while financial managers earn almost double that amount. Professionals who soon become partners for the bigger firms earn more than $100,000.
Career Development - In order for you to get a higher position, you will also need to go back to school. Most financial experts pursue an MBA after a few years in the corporate world. While some return to their employers, others apply elsewhere.
Before you can see yourself up there, you have to work from the bottom going up. While some decide to make it big in Wall Street, you too can also succeed wherever you decide to apply.
Market Research - The first thing to do is conduct some research. This will make you understand how things work and how news in business affects the industry, the country and the world as a whole.
Networking -If you want to get the job, aside from being knowledgeable, you need to have connections that are already there so you are given the position instead of someone else. This means building your network from school and then using it to your advantage. Associating yourself with those who have done well may give you pointers so you too can be just as successful as them.
Start Early - But you shouldn't wait until graduate before you start looking at the various career opportunities in accounting and finance. The best way to get your foot in the door is to apply for a summer position or an internship because most companies hire those who have worked with them for a short period of time compared to those that sent in their resumes. Believe me; you already have an edge right there as you already have an idea about the internal workings of the company.
Prepare Your Resume - Just in case the company you worked for does not have an opening right now, you should prepare your resume and yourself for interviews with other companies that do similar activities with what you used to do during your internship.
The average professional who works in either accounting or finance leaves after 2 years. They may apply for reassignment to another department or find employment doing something else. When this happens, there are job openings around for fresh graduates as well as those who already have experience in this industry.
Indeed, there are career opportunities in accounting and finance. You just have to build your network and get it.
About the Author:
Paul Hata is active in various social and community programs aimed at providing equal access to education,health and jobs to all.Paul has over 10 years experience in managing a multi-million dollar advertising company.Paul can be reached at - TradePlanets.com
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obs: Searching for an Accounting Job
, and continue to improve your character to be a step ahead with other job seekers. Source: Free Articles from ArticlesFactory.com
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3 Business Accounting Principles that Make or Break You
Business accounting is the art of analyzing the financial position and operating results of a business from a study of its sales, purchases, overhead, etc. In other words, each department of a business gathers the results of their processes to understand how the company is doing financially and how to improve those figures.
Contrary to popular belief, accounting in business is not a science, but an art-form. It is not always black and white, adding and subtracting. There are decisions to be made according to preferences of the business operations.
Relevance and Reliability are the 2 main reasons why accounting is so important for decision makers of a business.
Relevance in accounting pertains to how useful a bit of information is to a company. The potential uses will depend on the type of company and each company may be looking to learn something different.
Accounting information that is relevant has a predictive value that helps the business make sound predictions about the future direction of the market and their company. The information can give valuable feedback as well by confirming theories and examining why events took place.
Timeliness is an aspect of relevance, which deals with having information available to decision makers when that information still has significance to sway the decision.
Reliability is determined by how verifiable and accurate the accounting measurement is in the business. The neutrality of information also plays a role in how useful accounting figures are for determining reliability.
Verifiability is a type of double checking the accuracy of calculations. Multiple people or groups will use the same method of calculation and agree that the measurement originally taken is correct.
Accuracy is known when all the numbers check out. Accuracy is high when each part of an equation confirms that the answer is correct and it represents the company's resources.
Neutrality means not worrying about the outcome of the calculations, but concentrating on the information being reliable and relevant.
Comparability, which includes consistency, is the third quality that interacts with relevance and reliability to contribute to the usefulness of business accounting as well.
Comparability looks at the similarities and differences of two different companies, markets, or time periods. Information about a particular enterprise is very useful when compared with similar information about other enterprises. It can also be useful to one business for comparison of different time periods. Comparability between enterprises and consistency in the application of methods over time increases the informational value of comparisons of economic opportunities.
Studying these business accounting principles and qualities can prove to be very valuable for an enterprise. But an extensive study is required to effectively use these principles.
Because of the importance and the intricacy of these operations, most businesses do not want to take the time to learn these calculations themselves. This is when it is wise for a company to invest in accounting software.
At the end of the day business accounting can greatly assist owners to make decisions. If the business accounting is done well, the results of decisions are more profitable. But, if it is done poorly
Source: Free Articles from ArticlesFactory.com
Author:
Joe Coffee is a consultant for the online marketing firm, Web Shepherd. Visit www.AccountingAndYou.com for tips about leading methods of accounting and small business accounting options.
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Accounting Degree Benefits for Businesses and Firms
Now that you've finished your studies you are looking for accounting degree employment. Theoretically, you should not have too much trouble in this search. There are many unorganized businesses out there which could use a professional accountant. A certified public accountant does just that: keeps track of financial transactions and records in the business.
The majority of business owners ask themselves if they should hire an accountant or not. Having an unorganized business is not an option, because that would lead to bankruptcy. Of course there is also the possibility to use an accounting software, but not anyone can use that either. The best thing to do is to look for a person with an accounting degree.
The first obvious choice for a business owner would be to look for a professional in an accounting firm. This has the advantage that you can find accountants who are well trained and experienced. This is not mandatory though, and you can as well hire an accountant who works on his own. This should be your own decision based on what type of accounting job you need.
How can one become certified public accountant? In America, you need to meet a few requirements, as in most of the countries worldwide. Usually, you need about 150 accounting college hours. You will also have to pass an exam. But this is only if you want to become a certified public accountant.
If you, however, are at the other end of the deal, meaning a business owner, you have more than one option when hiring an accountant. You can do it as a long term arrangement, or, as some business owners do, with the only purpose of him paying the taxes. But why hire a professional accountant with the sole purpose of paying taxes?
The answer is simple. Accountants are the ones who know best how to increase business deductions and maximize profit. You could be familiar yourself with some of these procedures but accountants are those who know them all. In the end, it's your choice whether you permanently want to hire an accountant, hire one for short periods of time, or even learn accounting yourself.
If you decide that you want to hire an accountant make sure you check his qualifications. You can work with a local accountant or look for one in an accounting firm.
Whatever you decide, you have to make sure that the respective person has an accounting degree. And hiring a professional to keep your financial situations in order is a very wise thing to do. You need to have the correct tax returns if you want not to get in trouble with the law. After all, there are many professionals out there who are looking for accounting degree employment.
Source: Free Articles
Author: benjamin
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How You Know an Accounting Career is for You
Some of the benefits of being an accountant include:
- Constant work and little chance of losing your job - Plenty of opportunity for career advancement and pay rises - Many areas of expertise to choose from - Ongoing study options - Great salary - Ability to understand finance in detail which can benefit your own personal finances - Option to become self employed
Self Employed Accountant vs Employed Accountant
Accountants are fortunate in that they can either choose to work for themselves or work for someone else. In general, a self employed accountant will deal mainly with personal income tax and possibly corporate tax. They can also become auditors and other roles. In general, self employed accountants are limited in the work they can do unless they have extensive experience in a corporate environment before undertaking self employment.
The employed accountant on the other hand has many options and a great capacity to gain more skills and experience. It is not uncommon for accountants to be both employed and self employed at the same time, meaning income is increased. They key is to be able to balance the work load of both roles.
All accountants must become certified by undertaking an accounting degree at a university or college. Here you will learn all the skills required to be good at your job as well as life skills like communication and attention to detail. You can choose to focus on one aspect of accounting after you have been studying for some time. This could be tax accounting, auditing, corporate accounts, payroll and many more fields.
Anyone can become an accountant but it helps to have an interest in finance and numbers. Analytical skills are vital as is a high attention to detail, as mistakes in accounting can often cause major problems for companies. You can choose to work in the public or private sector, with there being benefits in both. Does a career in accounting sound interesting to you? Learn everything from the types of accounting careers to where to get accounting career training. It?s all available at http://www.careertoolkits.com/
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Accounting as a Career - The Skills You Need in Order to Pursue Accounting as a Career
Are you good with numbers, have a keen interest in business management, meticulous, analytical and organized? Then, you might be one of the possible candidates pursuing accounting as a career in your near future. However, simply being good with numbers is not exactly the only requirement to succeed as an accountant.
So what are the other skills you need in order to pursue accounting as a career?
One of the common responses that most employers will look out for candidates applying for accounting as a career will be 'having a strong motivation and the right attitude for the job'.
Besides that, someone who is keen on taking on accounting as a career also need to take into consideration that interpersonal and team working skills are vital on the job. Both oral and written and communication skills are also rated as very important.
You will also need to show that you are able to learn new skills and be an analytical problem solver. The role of an accountant today has far progressed beyond the traditional and stereotypical image of accountants as 'bean-counters'. As such, pursuing accounting as a career will also mean that you have to update yourself in the technology surrounding the business management world.
Although having a high mathematical ability is a plus, however it is not critical that you are highly proficient in mathematical concepts such as trigonometry, calculus and such. It is fairly important to note that you have to be comfortable working with numbers if you decide to pursue accounting as a career.
Accounting as a career can prove to be one of the better career choices for youths to be adaptable to the volatile nature of business management. With a solid accounting background, you will encounter more opportunities to move your career forward in different directions.
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You can also find out more resourceful information and the latest news on Accounting as a Career by visiting our Career Guide website.
Article Source: http://EzineArticles.com/?expert=Ray_Baron
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Why Financial Accounting is Neither Simple Nor Precise
If you have even a passing knowledge of business and economics, answering these questions might not seem that difficult. In fact, determining a firm's economic performance and condition often is very difficult. Unfortunately, financial statements rarely are able to give completely definitive and precise answers to what seem to be simple economic questions. Why would this be so?
Accounting's measurement problems derive primarily from three factors. First, it is difficult to pin down exact criteria for measuring economic performance and economic condition. Second, accounting uses money as its fundamental measurement unit, and money's unit value is not stable over time. Third, accounting rule makers have to allow for the fact that business managers often are motivated to distort economic reality rather than reflect it accurately.
What is Economic Performance and Economic Condition?
In terms of economic performance, our simplest criterion for doing well surely involves looking at cash flows. A business does well if it brings in more cash than it spends and vice versa. But for all but the very simplest of businesses such a measurement approach can be very problematic. Negative cash flow is not necessarily equivalent to poor economic performance and vice versa. Because of these problems, accountants have had to develop a more abstract concept of economic profitability, which creates its own problems.
Accounting encounters even more difficulty in trying to pin down a firm's economic condition. To determine economic condition we want to find out about a firm's assets and their values. But there is more than one standard of value. Should accountants use current market values for assets owned or the original cost incurred to acquire them? Rarely are these values the same and there are advantages and disadvantages to both standards.
There also is legitimate controversy about what should be counted as assets on the balance sheet. For example, should the value of personnel or intangible assets, such as patents, trademarks and goodwill, be measured and included? If so, how do we measure their value?
Money: Accounting's Unstable Measurement Unit
In accounting the unit of measurement is money. Money is a medium of exchange that has value only to the extent that it can be traded for goods and services. But, money is not a stable unit of measurement, because its exchange value varies with time. What one dollar buys today in goods and services is almost never the same as what that same dollar purchased last year or will purchase two years from now.
The practical ramifications of this instability of money as a measuring unit are pervasive. If a company had net income last year of $100,000, was its economic performance the same as it was five years ago when its income statement also showed a $100,000 net income? Decidedly not, if the purchasing power of the dollar changed significantly in the intervening five years.
Questions about economic condition are also affected by the instability of money as a measurement unit. For example, consider two companies each with $800,000 of assets and $500,000 of liabilities. In the case of one company, all its debt must be repaid within one year, while the other company's debt does not have to be repaid for ten years. Are the economic conditions of the companies the same? Again, decidedly not, because the purchasing power of the dollar will change over the next ten years.
Accounting rule makers have struggled greatly with the questions of how and when these changes in the value of money should be reflected.
Measurement Error: Management's Motivation for Mendacity
Measurement error is unavoidable. But it would be nice if we could assume that almost everybody involved in the accounting measurement process was highly motivated to avoid errors. Sadly, this is not the case, because business managers often wish to avoid accurate measurements if such accuracy would lead to significant damage to their career and finances. Facing such ruin, managers will be strongly tempted to avoid fair and accurate measurements. Managers will seek to "cook the books".
There are two important ramifications for accounting stemming from this motivational bias. First, in order for financial reports to have any credibility at all, they have to be verified by independent auditors. This is an expensive and often imperfect process. Second, in formulating accounting rules, the rule makers have to carefully consider how any proposed measurement procedures might be subverted by managers intent on providing a skewed view of economic performance or condition. The practical consequence is that the accounting rules that might be most logical and simple are often not adopted because these rules also tend to be the easiest ones for managers to distort.
Article Source: http://www.ArticleStreet.com/
About the Author
Michael Sack Elmaleh is a Certified Public Accountant and Certified Valuation Analyst. His book, "Financial Accounting: A Mercifully Brief Introduction", has received wide critical acclaim. He has nearly 30 years of accounting and 10 years of teaching experience.His web site is understand-accounting.net![Reblog this post [with Zemanta]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sq4iaIg2nqxxXHnfnyJk6EoXF4vX8lQsDBM9PT6BfI-ol3hfBLpZtXf4DkmNxdzsbW1OzVRylPFFwlIv2R2hgQfzXMWZ9s7EugbpuRBB31GQzmCvcXjKnw6UqWmBGNRi5uQnLKchFLPa8T61vVLf8=s0-d)
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