Disadvantages of Having an Accountant
The following disadvantages to be discussed in this section are (1) cost and (2) liability.
Cost. When establishing a small business and in the being phase of a startup company, money is tight. The company has yet to take shape but the need to generate growth is a huge concern. Cost is an incremental factor that deters the businesses owners’ decision to hire an accountant. Part of the costs involved in hiring an accountant includes their salary, benefits, and office space. Figure 2 shows that an accountants education level and experience has a significant impact on their salary. With an increase in experience and specialization comes an increase in price. Benefits are also pricey and the need to provide
While small businesses are not required to have an accountant, the advantages that they provide in compliance, savings, loyalty, and company contributions are essential. Businesses are always striving to grow and to gain more market share and customer share and with the right tools they are able to accomplish that task. Accountants carry with them a large price and the lack of control and the ability to trust them will impact any business both large and small. With alternatives available, business owners need to weigh the pros and cons of having their own accountant conveniently within arms reach in their organization.
Recommendations
I recommend that small businesses and startup companies take advantage of the services, skills, and benefits that accountants can provide. They are able to save any organization, big or small, money and provide knowledge to help any company grow. The cost of having an accountant is much less than if the fees, fines, and lost profits as a result of inaccurate reporting and unethical behavior both internally and externally. If the goal is to grow an organization and take advantage of other financial opportunities, then consider having an accountant within the organization along with accounting
Assignment of responsibility for certain functions of the bookkeeping and accounting process ensures that when a problem occurs a specific person is accountable. This, in turn, provides an incentive to that person to do their job correctly because any issue or problem will be their sole responsibility. Splitting duties has a similar impact on employees. By providing a system of checks and balances, i.e. one person keeps the records while another keeps the assets, the chance for fraud is greatly decrease and honest mistakes are easily caught. There are many physical, mechanical and electronic controls that provide further safety for a company’s assets. These include passwords, safes, alarms, security cameras, time clocks and locks (Kiesco et.al, 2008). The use of an auditor or other third party to independently verify the bookkeeping and accounting procedures performed by employees adds another layer of safeguarding to a company’s inter...
Krishan, G.V., & Wei, Y. (2012). Do small firms benefit from auditor attestation of internal control effectiveness? Auditing, 31(4), 115-137. doi:10.2308/ajpt-50238
Accounting is very important to the world, both public and private accounting firms have one goal: financial stability. There are differences between both firms, however, it can be proven that public firms are better than private firms. The Big 4 is a good example of how public firms are more beneficial than private firms. All of these accountants have worked hard by getting there CPA degree. People should choose a public accounting firm over a private firm because a public firm deals with more than one business.
This case assignment will discuss managerial accounting and different income statements a business owner may use internal to the company. Divided into two parts, part one will discuss and analyze the difference between managerial and financial accounting, the needs for financial information used for internal purposes. Additionally, it will focus on the managerial accounting profession and how its roles have changed in today’s business. Expanding on the profession, it will comment on the Certified Management Accountant (CMA) certification and how it differs from the CPA certification. Part two of this assignment
One disadvantage of using financial statements is the fact you cannot always provide people what they deserve due to cost. Greg said in many corporations certain repairs; equipment and pay raises have to be put aside, this is if the cost of production is too high and outweighs the revenue we make.
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...
The ethical dilemma in this case is one that Daniel Potter is faced with. Daniel is a staff
Accountants are people that make lives easier for others and mostly deal with financial statements and records. Accountants ensure that financial
In its current practice, the roles and functions of cost accounting includes additional functions. More specifically, it can be described as more than an inventory tracking system. This is because cost accounting entails defining the charges of activities and goods (Horngren & Srikant, 2000). Because of its many roles and functions, this accounting method has been of great help to growth and expansion of business planning and management. Again, the reports offer assistance in the planning and growth projections for different business functions and units within the organization. The information cost accountants offer different uses, some of which aid in the controllership function, as well as the industrial
Cost Accounting: Its role and ethical considerations Introduction: Accounting is the process of identifying, measuring, and communicating economic information about an entity for the purpose of making decisions and informed judgements. The major areas of within the accounting are: Financial Accounting, Managerial Accounting/Cost Accounting and Auditing- Public Accounting Managerial accounting is concerned with the use of economic and financial information to plan and control the activities of an entity and to support the management in planning and decision-making process. Cost accounting is the subset of managerial accounting and it helps management in determination and accumulation of product, process or service cost. Role of Cost Accounting: Increased competition and uncertain business conditions have put significant pressure on corporate management to make informed business decisions and maximize their company?s financial performance. In response to this pressure, a range of management accounting tools and techniques has emerged.
The relevance of costs and revenues is also important to the managers. They need to know what costs are relevant so that they can account for them in their decision making and planning. The irrelevant costs are not put into consideration in the decision making since they have no impact on the decisions. An example of irrelevant cost is sunk costs and examples of relevant costs are marginal costs and opportunity
Change is inevitable. Yogi Berra once said “The future ain’t what it used to be.” It is clear that the future of the accounting profession ain’t what it used to be (Gormon and Hargadon 1). The changes occurring are happening fast, they are dynamic and they are completely and undeniably real. Since the world around the accountant is changing, the accountant has no option but to change as well. The field of accounting has always been one to know change and to know adjustment, but within the recent past and certainly within the next few decades, the changes that are occurring and will occur absolutely are the most dramatic and exponential yet. Obvious changes lie in the expanding scope of services performed by accountants, the increased use of
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
An accountant makes sure that the Nation’s firms are run efficiently, the public records are kept accurately, and that taxes are paid properly and on time (“Accountants and Auditors”). Accounting is the study of how a business tracks their income, assets, expenses, and many other things for a period of time. They also do many other things like quality management, tax strategy, and health care benefits management (“Welcome to Careers in Accounting”). An accountant is crucial to the success of a business, without one the business tends to fail.
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...