Accounting or accountancy is an accounting method that uses information science and computer technology to manage and process information. Accountants make use of statistical techniques for gathering information on financial transactions, analyse and identify patterns, create reports, and come up with effective policies and procedures to control, plan and carry out financial activities. As the need for accounting and bookkeeping arises, a variety of professions are available in the market, like auditing, bookkeeping, insurance, public accounting, etc. Accounting and bookkeeping are the most important aspects of the business and hence accountants are required for maintaining record of business transactions. To become an accountant, one should have a formal education and undergo specialized training to master the art of accountancy.
Accounting or accountancy comprises of different methods of accounting like the financial statement method, the PQQ method, the Due diligence method, the Functional Approach, data mining, data analysis and the audit technique. An accountant will collect, record, maintain, transfer and exchange information regarding financial transactions. The first step towards accountancy is to construct a system that collect, prepare and analyse financial transactions. Accounting records are created, maintained, organized, processed, analysed, marketed, secured and disposed of according to rules and regulations of an accounting association or a professional body that is recognised by the government. It is mandatory to maintain accurate records, keep track of transactions and record the causes of any discrepancies and errors.
There are many levels of accountants, with an accountant specializing in particular fields. Accountants can be specialized in fields such as management, research, public sector, insurance, auditing, tax preparation, banking, international business, environmental, health care, law and architecture. The degree program includes modules like mathematics, computer science, statistics, information systems, risk management and accounting theory. The education and training for an accountant are quite extensive and includes learning modules like financial accounting principles, problem solving techniques, mathematics, administrative concepts, office and organizational design, project management, law and ethics. Some of the subjects include business statistics, information systems, managerial economics, decision making tools, project management, human resources management, accounting theory, research methodologies and accounting standards.
Aspiring accountants should have good mathematical skills, critical thinking abilities and analytical competence in order to become successful in the field of accountancy. Accounting involves the use of various software like accounting software, micro-processor-based accounting systems, barcode and database based accounting systems, financial accounting systems and payroll systems. In order to be an effective manager, accountant needs to know how to conduct accounting, work with people effectively, understand their problems and requirements, as well as understanding the principles of the discipline. Accountants should also have excellent communication skills and excellent mathematical skills.
It is essential for accountants to comprehend the requirements of the stakeholders. They need to be able to comply with requests and understand the business rules and regulations. Most business owners today require efficient, effective and low cost management services. An accountant’s success lies in achieving good business decisions, taking accurate account records, communicating his findings in a clear and concise manner, analyzing the financial data and implementing sound business decisions.
There are many benefits of hiring good accountants. They make good managers because they are able to plan and implement projects. They can help you manage your financial performance better because they have a comprehensive understanding of financial issues like liabilities, assets, revenues and expenses, and can make sound financial decisions. If you do not have the expertise or time required by complex projects, you can outsource your accounting tasks to qualified accountants who have years of experience and expertise. A lot of good managers have outsourced accounting service because it saves time and enables them to focus on other important aspects of managing a business.