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Importance of accounting in society
Importance of accounting in society
The importance of accounting and finance in general
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Accounting is a systematic and comprehensive recording of transactions pertaining to a business; it also refers to the summarizing, analyzing and reporting these transactions (Investopedia, N.D.). This statement particularly refers to accounting being the soul and heart of the corporate world, because without accounting there would be no transaction and if without transaction, there would be no business to operate and money to generate. Accounting is based on such practices that would enable the users to be competitive with full honesty and integrity. The Generally Accepted Accounting Principles or GAAP is the basis of the accounting practices observed by accountants all over the world. This rulebook is said to impose regulations and standards on all accounting procedures, so that the transactions will be dealt genuinely and efficiently.
The demand of an accountant is not only felt by the world but by the country as well. Accountants are truly needed in the business industry, that’s why accounting firms are established to provide quality accounting services to the businesses all over the country. According to an iMoney Philippines, accountants belong to the top 5 in demand jobs in the Philippines. This statement also signifies the demand of accounting firms in the country. With this kind of demand, businesses or firms have the urgency to fight for the top spot in order to distinguish their firm to a whole lot of firms that have the same field of profession (Marketing Theory, 2006).
The top 5 accounting firms in the country are continuously fighting over the top spot of being the best accounting firm in the country. According to Audit Hotel Program Rate, the ranking are as follows, SGV & Co, Manabat Delgado Amper & Co, Isl...
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...– The Problem with Communication, The CPA Journal, chapter 2, p. 80
Prim offW. Grey R. Tucciarone J. Client-centered professional financial planning overcoming challenges and getting opportunities for the profession. The CPA Journal 2007, chapter 3, pp. 10-14
Stangeland Kristi CPA, Effective website for CPAs: Grow your practice and profits. The CPA Journal 2007, p. 17
Stangeland Kristi. Vital feedback for CPA firms, The CPA Jounal 2007, p. 13
Online Resources
Punongbayan & Araullo – The firm.
http://www.punongbayan_araullo.com/pnawebsite/pnahome.nst/section_docs/cd29312_30_5_03
BDO Alba Romeo & Co.
http://www.bdo.net.ph/
Isla Lipana & Co.
http://www.pwc.com/ph/en.
Manabat Delgado Amper & Company
https://www.deloitte.com/view/en_PH/ph/index.htm
SGV & Co. Philippines|Ernst & Young| Quality in Everything we do. Retrieved from
http://www.sgv.ph/aboutUS
Turner, Robert M. "Ethics and Professionalism: The CPA in Industry." The CPA Journal (1999). Retrieved on 18 September 2006 .
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
Brigham, Eugene F., and Houston, Joel F. Fundamentals of Financial Management. Second ed. Dryden, New York, © 1999.
Public accounting involves services such as auditing and tax-preparation. There are many ways CPA’s’ help businesses and individuals. CPAs help individuals and companies with financial planning, investments, taxes, mergers and acquisitions. Individuals, businesses, financial institutions, nonprofit organizations, and government agencies need CPAs to offer objective advice and assistance in both financial and strategic areas. CPA’s have broad range of duties to choose from, like environmental accounting to forensic accounting. Although opportunities are plentiful and varied for top-notch accounting graduates, many new entrants to the profession consider an entry-level job in public accounting to be an essential first stop on their career path. The reason is simple: a public accounting background is a huge resume-builder that confers instant credibility. Employers often prefer to hire candidates who have public accounting experience and have earned the always-in-demand CPA
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
Accounting is basically a service activity. Its purpose is to provide quantitative information that principally used by the managers, investors, tax authorities, and other decision makers to make the financial decisions within companies, organizations, and public agencies. Accounting is also widely known as the “language of business.” An accountant measures, communicates, and interprets financial activities. They prepare financial statements or reports for individuals, businesses, government agencies, or other non-profit organizations. They use the accounting systems to categorize the expenses and income to the typical groups. They also keep tract of the money received or paid out to see if the transactions are accurate and complete. Accountants are familiar with the computer operation. They use the computer...
Subsequent to obtaining the accounting information, managerial accountants will then proceed to use it to plan, evaluate the company performance and also control the business operations. With regards to planning, the managers are required to make decisions concerning the kind of product to introduce into the market, when to introduce the product and where the production should take place. In performance evaluation, individual product lin...
While the rest of us have been busy coming up with jokes about how boring accountants can be, the world has changed. From a look at “Gaebler.com”, the author is speaking directly to entrepreneurs for sma...
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
At a glance, accounting might appear as a repetitive cycle of preparing and examining financial statements. However, a brief exposure to accounting has taught me how chaotic it can be for accountants. An accountant captures and represents the information of businesses. By reviewing financial operations, an accountant helps a business run efficiently. This profession can be intellectually stimulating and rewarding. After learning about accounting, I cannot help but be interested and desire to work toward a degree in accountancy. In my studies, I have learned accountants require a plethora of qualities to be successful. And to mature from a student to a professional, I must resolve to strengthen my weaknesses. There is much I must learn and achieve, but a degree in accounting is well worth the time spent.
GAAP is exceptionally useful because it attempts to regulate and normalize accounting definitions, assumptions, and methods. Because of generally accepted accounting principles one is able to presuppose that there is uniformity from year to year in the methods that are used to prepare a company's financial statements. And even though variations might exist, one can make realistically confident conclusions when comparing one company to another, or when comparing one company's financial statistics to the statistics for the industry as a whole. Over the years the generally accepted accounting principles have become more multifaceted because financial transactions have become more intricate (Accounting Principles, 2011).
Accounting is one of the fastest growing fields in the United States It expands each time a new store, a factory, a filling station, or a school goes up, whether in a large city or a small town. In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figues and advise management on what should be done. They are using more scientific ways changing money, figuring change, and collecting sales taxes. Moreover, department stores and other companies now have plants and offices widely scattered throughout the country. A new set of bookkeepers and accountants, is needed at each branch. I know there are many managements supervisory, and junior or senior executive positions are bing filled by people who started as accountants because accountants have the knowledge of methods and finance and comprehension of the fundamentals of business, and acc...
Accounting itself is a system that people has been using for thousands of years, the system records financial information about a person or business, businesses use it in order to be able to keep and track their financial accounts and other financial information in a safe and efficient way. (Brooks, 2012)
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.
The function of accounting information system transforms from simple storage to a supportive tool of decision-making, producing high quality information and detailed analysis, bringing about real economic benefits. However, it also challenges the skills and ethics of modern accountants, putting forward the new demand for the professionals who use the accounting information system. As a result, two capabilities are recognized to be essential for the professionals. One is the competency, it lists out a pattern of knowledge used in the job as well as be aware of the link between information systems and decision-making. On the other hand is the ability of analyzing and diagnosing, which is good at problem solving. Another challenge is about ethical issue, requiring integrity and confidentiality as a professional quality of an accountant. To conclude, the accounting information system integrating the information, analyzing and supporting decision-making will become more important in the forming of a company’s strategy. Understanding the structure of accounting information system would lead to a competitive advantage over competitors in the