Accounting (or accountancy) is a subject area based on the study of all aspects of financial information and financial transactions. This discipline is also called “the language of business” because it reveals the key principles of its existing and functioning. The economy of any organization or company is going to fail without a competent specialist responsible for accounting.
What does it mean to be a professional accountant? The traditional characteristics might sound like “a mathematical genius” or “a person with organizational superpowers”. Accountant is a person responsible for all financial affairs of the company, including processes of identifying, recording, measuring, classifying, verifying, summarizing, analyzing and interpreting this information.
Sounds pretty scary! However, in most companies these activities are performed rather by a team of people than by a single accountant. However, as a future professional in this sphere, you cannot predict which duty will lay down on your shoulders. So during your studies you will learn how to record, keep and organize financial transactions, as well as how to summarize and analyze this information. Also, you will learn how to report the data to tax collection entities and oversight agencies the right way.
The process of accounting has the standard framework of guidelines called generally accepted accounting principles (GAAP). Accountants have to know and follow these principles preparing the financial statements.
Modern accounting consists of several large subfields:
- Financial accounting
This sphere studies and reports of company’s financial information to external users. This process includes the preparation of financial statements available for public consumption. So all people, interested in receiving such information (investors, suppliers and regulators) can easily get it.
- Management accounting
This one is connected with the processing of the information (both financial and non-financial) required for managers to do their work properly and make right decisions for the company’s development. This subfield of accounting produces future-oriented reports (for example, the organization’s budget on the following year). Cost-benefit analysis is the base for management accounting reports.
Auditing deals with the process of verification and evaluation of the financial statements of a company. The work of the auditor is to express his/her independent opinion on the fairness of the organization’s financial statements in accordance with the GAAP.
- Accounting information system (AIS)
This is a branch of accounting connected with the processing of financial and accounting data and belongs to the companies’ information system. AIS is predominantly a computer-based method for tracking accounting activity in combination with information technology resources.
- Tax accounting
Each country has its own tax system that requires the use of specialized accounting principles for tax purposes. So tax accounting deals with the process of preparation, analysis and presentation of tax payments and tax returns.
Nowadays, many people follow this well-paid and prestige profession. It is true that accountants will always be in great demand since they make an important piece of work for every company. The only problem is that entering this profession is not an easy task. You will have to go through serious complexities on your way to a desired degree.
Students who choose this sphere as a field of their future professional activity have to devote a lot of efforts and time to understand all its aspects. As you have already understood from the article above, accounting is all about complex stuff, strict rules and calculations. Your professors will give you a great deal of homework projects to rack your brains hardly. But don’t worry – any time you feel puzzled with some research paper or case study, you can rely on professional essay services. Master new heights with no special efforts.