| Accounting |
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Basically accounting is the way to read and understand about business. Accountancy records the financial information about businesses, both small and large. Accounts are the easiest way to assess the success of any business. Any financial decisions made by a company are made in line with the company accounts. Accounting has been called 'the universal business language': as they say, 'money talks'. Company accounts provide the information needed by potential investors to decide whether a company is worth investing in; accounts are also used by government and tax authorities to determine the correct ammount of tax to be claimed, and for the business to check tat they pay the right ammount of tax. Accounting also allows company managers to see how well the sectors of their business are performing, which teams are working most effectively, how to distribute cash flow most effectively through the different aspects of the business, to achieve the best levels of growth and development. All companies, businesses, and organisations depend on accurate accounting to be able to plan for the future and to ensure smooth day to day operations. The right accountacy team is an integral part of every business. Private individuals, especially those who are self-employed, will also use accountants to check their progress and success. An accountant is the person who carries out accountancy tasks. These tasks are very varied, and will differ according to the particular needs and requirements of the business. Some companies will have their own in-house accountant, or team of accountants if the company is large; other businesses and organisations will use the services of an off-site accountant. Some accountants will specialise in one aspect of accountancy, particularly if they work for a lrge firm. Accountants who work for small companies and individuals, or who work for a number of differnt businesses, will usually learn all the specific jobs required. Some of the specific jobs that are carried out under the umbrella term 'accountancy' will include, accounts receivable, auditing, financial record keeping, acounts payable, investment information, book-keeping, and tax advice. The trade of accountancy is as ancient as the practice of buying and selling. The ancient Egyptians invented wat we now know as 'double entry bookkeeping'. Quite simply, this involves putting an entry into an accounts book, also called a ledger, whenever money comes in or goes out. This figure is tallied up against an entry in another ledger and, if done correctly, the figures will match and you have sound accounting. Certain aspects of acountancy involve the attainment of special licenses in order to be able to practice. These specialisations include insolvency and auditing. There are other professional qualifications that are required to be a member of certain professional bodies. Some of these titles are Chartered Accountant (CA), Chartered Certified Accountant (CCA), International Accountant (IA), Registered Auditor (RA), Certified Public Accountant (CPA), Certified Financial Manager (CFM), Certified Fraud Examiner (CFE), Certified Financial Planner (CFP), and Certified Government Financial Manager (CGFM). Perhaps the best kept secret in the world of accountancy is the Enrolled Agent (EA), who provides financial services to the public, government and accounting community, with a particular specialisation in all areas of taxation - it is a title conferred on an accountant by IRS. The Institute of Financial Accountants is a professional body designed specifically for non chartered accountants, and this body ensures that its members adhere to strict guidelines and follow the prescribed ethics of good practice in all areas of professional lives. Larger companies will have a specific role in mind when they are looking to recruit accountants, and will usually advertise in specialised trade journals and magazines for suitable providers for the financial and accounting service they are looking for. Smaller businesses and the self-employed will normally turn to an acccountancy firm to handle all their various aspects of their business accounts - this could range from end of year acounts, payroll, PAYE accountancy, and so on. For most small businesses this is the best way to enable them to concentrate on the business itself. |
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