Accounting Is The Profession Of Accounting

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Accounting is the art of recording, summarizing, reporting and analyzing financial transactions. The organization wealth, profitability and liquidity are determined by accounting. Daily and long term decisions are done according to accounting, without accounting the company will have no basis to make decisions. Accounting is the most respected and oldest professions. It is a profession consisting of people having the knowledge and education to carry out the tasks of storing, sorting, retrieving, summarizing and presenting the information in various reports and analysis .Part of accounting emphasize on presenting the information in the form of financial statements such as: income statement, balance sheet, trial balance to be presented to people…show more content…
Useful information will lead to better decision by the user. This information must be reliable, relevant, accessible, verifiable, understandable and on timely manner. A system is set of interrelated components that interact together to achieve a specific goal. Information system is the collection of technical and human resources that consist of storage, distribution and communication for the information needed by the organization. It is the combination of software, hardware, infrastructure and trained employees (user) designed and organized to facilitate planning, control, coordination and decision making in an organization. The definition of information system shows that it includes three major components: inputs, processes and output. Input is the devices where data is entered into the accounting system to be processed. Data is transferred into information to be useful. Output is the meaningful and useful information which is provided by the system. Processes, data are processes using computers to produce useful and meaningful information. Other components include goals and objectives where every system is designed to achieve a goal or more. Data storage, data must be stored internally for processing in addition to the external data entered. Users are people who will use the information produced by the system and who use the system also. Finally instructions and procedures, data is…show more content…
We can start with the invention of abacus that was used to keep track of calculation of business. Although this was not technology, there were several attempts to build machines to help accountants with their mathematical calculations. The first machine was the invention of calculator for information accuracy. With every development in technology the speed and proficiency of accountants improve, but even this invention still had to keep track of business functions using paper entry. Identifying, measuring and communicating financial information processes was documented in paper terms, records, columns of numbers and hand written statements. The accounting profession began to take a new look towards the end of the twentieth century. Computers and accounting software has changed the industry completely. With computer programs such as Microsoft excel, electronic spreadsheet is found then. The job became easier and with less error. Accounting technology has allowed the accountant to find new challenges with much more to offer then before when relying on
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