The accounting profession is rich in history. Accounting dates back to ancient civilizations, including the Mesopotamians and Egyptians. The practice of accounting in businesses today has not changed much over the years; however, accounting practices themselves have evolved greatly. Today’s accounting professionals must be versed in many different areas in order to be effective.
What Accounting Entails Is Not Limited To Balancing Ledgers
Accounting involves interacting with both internal and external stakeholders, performing risk assessments, auditing systems for accuracy, identifying knowledge gaps within the accounting department or in the company as a whole, and reporting financial results.
These responsibilities are typically divided into two different groups: accounting and auditing.
Accounting involves recording accounting transactions, inventorying assets, accounting for liabilities, among other tasks. The accounting department is responsible for preparing financial statements that reflect the company’s performance over time.
Internal stakeholders are typically employees of the company who rely on timely and accurate financial results in order to make crucial business decisions. Accurate accounting practices are important because they ensure that decisions are made on accurate information, not gut feelings or assumptions.
Accounting also ensures that all company assets are accounted for. After all, if accounting cannot locate an asset it needs to record or produce documentation proving the existence of, what recourse does the business have against losses or thefts?
External Stakeholders Are The General Public, Vendors, Suppliers, Government Units and Agencies.
The accounting department is responsible for reporting financial results to shareholders on a quarterly basis, as well as providing detailed information about the company’s financial performance for other interested parties. Accounting also ensures that all records of accounting transactions are properly stored for later investigation.
During an accounting procedure known as an audit, accounting professionals investigating accounting irregularities are required to keep detailed records of their work in order to ensure accountability both during the process and after.
The accounting department is not only concerned with the current state of the company’s financial situation; it also needs to be prepared for whatever the company may face in the future. Accounting personnel must be able to identify risks and provide contingency plans for those risks should they become a problem.
Many accounting professionals have undergraduate degrees, but accounting is unique from other fields because it requires accounting professionals to obtain a professional license from their state board of accountancy -a rigorous requirement in and of itself. This ensures that accounting personnel possess the necessary qualifications in order to provide accounting services to businesses and individuals.
Many accounting professionals also possess a master’s degree in accounting, finance or business administration. Some accounting degrees even require previous work experience in accounting before enrolling, which makes the courses more challenging for accounting professionals.
For accounting professionals who are interested in building their skill sets so that they can be competitive when applying for jobs, accounting certificates are also available -a much more affordable way to excel than obtaining a master’s degree.
Accounting certifications provide accounting professionals with additional credentials and formal documentation of their qualifications. The accounting department at a company is responsible for accounting, auditing and reporting financial results to the organization.
The accounting department is also responsible for identifying risks within the organization and implementing contingency plans. Accounting professionals working in accounting must have a bachelor’s degree as well as professional accounting certification or accreditation from an agency recognized by the Public Company Accounting Oversight Board.
In addition, accounting professionals working in accounting must have a master’s degree in accounting, finance or business administration from an accredited program and several years of work experience before they are able to sit for their certification exams. Click here