Thursday, June 19, 2014

ACCOUNTANT

ACCOUNTANT
Accountant is a qualified person who is trained in bookkeeping and in preparation, auditing and analysis of accounts. Accountant also is someone who keeps track of a company's money and let the company's managers and people outside the company read their reports. Managers look at the accountants' reports to see how well their companies are doing while governments use the reports to tell how much tax a company should pay. Some people read them to decide if they want to do business with the company and others use them to decide if they want to lend money to the company or not. Accountants can either be employed with an accounting firm, a large company with an internal accounting department, or can set up an individual practice.[1]
          To become a successful accountant one’s need to be logical, methodical, good with numbers, excellent IT skills as offices are increasingly becoming paperless environments, good communication skills and to be able to understand the client’s business. They also should be able to write well, so that they can tell others about their findings. There are many accounting qualifications on the market Thus, it is needed to qualify with one of three main bodies outlined below, or one’s will need to do a lower level course such as the Accounting Technicians (AAT) course, the work your way up via training. They need to undertake accountancy exams with one of the following three bodies. First is The Institute of Chartered Accountants England and Wales (www.icaew.com). On completion, they can become a chartered accountant in industry or practice, giving professional advice and making high-level strategic decisions. It also could lead to a career in any of the following which is Forensic accounting, Audit/assurance, Business recovery/insolvency, Corporate finance, Financial accounting and Tax advice. Second is The Chartered Institute of Management Accountants (www.cimaglobal.com), it allows them to run the accounts of a business or be a finance director, but they are not certified to sign off audited accounts of another business. Third is The Association of Chartered Certified Accountants (uk.accaglobal.com), which allows them sign off audited accounts of another business, but they are not necessarily trained to be a company accountant or finance director, although often this does happen.
         Professionalism and ethics is examined at the highest level in the ACCA Qualification. It is also a main part of the practical experience they must complete to qualify. Most accountants have a college degree in accounting. Therefore, it will normally take another 3 or 4 years to get through accountancy exams, after taking the degree. Since they can take time out between the various exams, so it may take even longer than this. Furthermore, one’s need at least 5 GSCEs with good grades, including a good grade in Mathematics and at least two good A-levels which one of it must be Mathematics. Apart from that, Public accountants have to take a special test as well, resulting in a certification. Public accountants also must have a special license from the State in which they live.[2]
        Accountants are the persons who play a very important role in an organization without an accountant an organization cannot work effectively. The roles of accountant are maintenance of accounting book, audit, internal audit, taxation and consultancy service. First is maintenance of accounting book. An accountant keeps a systematic record of the transactions entered by a business firm in normal course of its operation. A firm cannot work effectively without recording all the transaction. Therefore, appropriate maintained accounting books will assists management in planning, decision making, and controlling functions. Second is audit, auditing is concerned with inspecting of accounting data for determining the accuracy and reliability of accounting statements and reports. Every company is required to appoint a chartered accountant as an auditor who is judicially required to report every year whether in his opinion the balance sheet shows a true and fair view or the state of affairs on the balance sheet date, and the profit and loss account shows a true and fair view of the profit or loss for the year. Third is internal audit, it is a management tool whereby an internal auditor thoroughly examines the accounting transactions and also the system, according to which these have been recorded. Fourth is taxation, an accountant can handle taxation matters of a business or a person and he can represent that business or person before the tax authorities and settle the tax liability under the statute prevailing. He can also assist in avoiding or reducing tax burden by proper planning of tax affairs. Fifth is consultancy service, an accountant performs an advisory function.[3]
         When most people think about having an accountant, they immediately think of tax season. The accountant is someone that is going to be able to do the end of year taxes for a person, while giving them the reassurance that they want in order to know that the taxes are getting done properly. However, the accountant can help a person out in many other situations besides taxes. An accountant can help someone who just start-up a business. They are going to be the person to go to in order to figure out just what is the start-up costs and so forth are going to be. They can help the person to estimate just what they have in terms of funding and what they need in order to make this business come true. They are one of the people that future business owners are going to find come in handy when trying to make out a business plan in order to get approved for funding. Other than that, they are someone that you can go to when you need money or investing advice, and they are going to be some of the most knowledgeable in the field since they deal with money issues every day that they are at work. They can suggest you regarding most suitable sources of finance, where to invest your hard earned money and selection of a right and profitable project. For anyone that is struggling with their finances, then accountant are the one that they should be talking to since they can help out tremendously in the majority of situations that a person finds themselves in that are related to finances, whether it be to help them or to just teach them. The accountants can also help with investments and other financial decisions such as getting loans and so forth, so that the person knows what they are getting and know exactly what they will be paying.[4]
         Although many people think that all accountants do the same task, there are special areas of expertise within the accounting industry such as Chartered Accountants, Management Accountants and Forensic Accountants. A Chartered Accountant is defined as a British accountant who is a member of a professional body that has a royal charter, for example, The Institute of Chartered Accountants in England and Wales. A typical chartered accountant will work in many different environments and settings, with roles ranging from chief executive of a multinational company to sole practitioner. In public practice firms, they provide a variety of professional services to a wide range of fee-paying clients, from large commercial and public sector organisations, including banks to private individuals. In the industry and the public sector, chartered accountants may work in areas such as, fund management, venture capital and equity analysis. Next, Management Accountants apply the principles of accounting to provide organizations and businesses, in the public and private sectors, with the financial information necessary for financial protection. Management accountants may either be employed in a finance function or within specialist departments providing financial advice and information to help support strategic business decision-making. Then, Forensic Accountant can be defined as an accountant who performs an orderly analysis, inquiry, investigation, inspection, or test in an attempt to attain the truth, and develop an expert opinion in matters of disagreement. In general, a forensic accountant is engaged in a combination of fraud detection and litigation support.[5]
         Working in accounting is very challenging. An accountant constantly has to continue to learn and adapt to new situations. Accountants are required to use a great deal of professional judgment to make appropriate decisions. Accountants tend to work in a fast-paced, deadline-oriented environment. This is because accounting information is very time sensitive and needs to be processed in a timely fashion. Also, much accounting work requires individuals to work as a team. This helps in the completion of projects as well as the spreading of knowledge between team members. With accounting constantly changing and since it covers such a wide array of complex topics, there is no way one person can know everything there is to know about the subject. Thus, teamwork makes projects more attainable. Besides that, the work environment for an accountant is typically a professional office setting. Most accountants work in an office setting where things are clean and orderly. The offices are usually very well lit. Self-employed accountants may be able to do part of their work at home. Accountants and auditors employed by public accounting firms and government agencies may travel frequently to perform audits at branches of their company, clients' places of business, or government facilities. Although accountants work primarily in an office environment during business hours, during busier periods or when dealing with a financial crisis they may need to work much later hours in order to successfully manage complex situations and procedures. Accountant hours can range from the traditional 40 hours a week to more strenuous hours which are from 55 to 80 hours a week during the three-month busy season especially during reporting period, such as year-end or tax season.[6]
         Accounting can be an exciting and rewarding career, one that offers higher-than-average starting salaries. Although salaries will vary from state to state, experienced accountants can easily earn six-figure salaries and have many opportunities for advancement. Other benefit is that accounting offers a wide variety of career choices. As the need for more accountability, transparency and controls in financial reporting increases, all types of accountants whether it is public, management, government, internal auditors, will be in demand. As an accountant, you can work almost anywhere such as private industry, government office, tax preparation firms and college and university campuses. You can also consider the self-employment option. If you decide that you don't like the first one you choose, you can change. For example, operating a small accounting business from your home to serving as an auditor of international subsidiaries for a major corporation, allowing you to travel the globe. Apart from that, you can easily calculate your own expenses and income taxes. You do not need to trust your investments and hard-earned income to someone with nothing invested to lose. You are able to take every precaution and possible deduction to maximize your wealth. Furthermore, you can gain experience to make informed investment and business decision. As an accountant, you will have a thorough understanding of the tax ramifications of all personal or business expenditures and purchases. Last but not least, accountant is a well-respected career because in the business world, people seek your advice and show respect for your answers on a wide range of issues. A company's future may depend on your approval or disapproval of their accounting records.[7]
         Everyone needs to have a positive value especially in a job. As said in Al-Quran, “O mankind! Reverence your Guardian-Lord, Who created you from a single person, created, of like nature, his mate and from them twain scattered (like seeds) countless men and women – reverence Allah, through Whom you demand your mutual (rights), and (reverence) the wombs (that bore you): for Allah ever watches over you.”[8]. A positive value that an accountant should have is that a member should behave with integrity in all professional and business relationship. Integrity implies not merely honesty but fair dealing and truthfulness. Integrity implies not merely honesty but fair dealing and truthfulness. “Let there arise out of you band of people inviting to all that is good, enjoining what is right, and forbidding what is wrong: they are the ones to attain felicity.”[9]. Next, a member should strive for objectivity in all professional and business judgements. Objectivity is the state of mind which has regard to all considerations relevant to the task in hand but no other. Then, a member should not accept or perform work which he or she is not competent to undertake unless he obtains such advice and assistance as will enable him competently to carry out the work. Besides that, a member should carry out his or her professional work with due skill, care, diligence and expedition and with proper regard for the technical and professional standards expected of him as a member. Lastly, a member should conduct himself or herself with courtesy and consideration towards all with whom he comes into contact during the course of performing his work.[10]
        An accountant is needed when someone is just starting a business. The accountant will take the form of another business adviser. They will be able to give advice on your business plan and the tax issues of registering a new business. Accountant also is needed for you to know how much profit the firm earn last year, tax that the firm owe the Internal Revenue Service and amount of cash that the firm have to pay lenders and suppliers. As the business grows the accountant will help you manage your money. Whether you are starting up or a growing business, they can advise you on the best way to arrange additional finance without putting your business at risk.  You should use your accountant's expertise to help you analyze your financial statements so you can understand what they are telling you. Therefore, an experienced accountant's advice will be invaluable in such matters. In addition, you will also need an accountant if you have questions about what kinds of business expenses are deductible. Most of these rules and regulations are moving targets they change frequently and often vary from state to state. A good accountant will always be on top of the changing laws and regulations and, more importantly, will know what applies to you. It's also important to ask your accountant's advice before you take action. It's almost always easier and cheaper to structure things properly upfront, as opposed to trying to fix something later. Just as important as saving you money, employing the services of an accountant will save your time. Moreover, you need an accountant to handle your business taxation. Taxation is a large business expense and as accountant’s job, an accountant can effectively minimize these costs. Accountants needn't be that expensive anyway. It's unlikely you'll need to employ one full time. Instead you can pay a flat fee for regular consultancy or pay-as-you-go. Most accountancy firms offer a range of packages for businesses of differing sizes and stages.[11]
         The reason why I want to be an accountant is because it offers numerous opportunities for self-employment. To be an accountant, I will have to take an accounting major. Taking an accounting major will enable me take on the different accounting paths that are there. If I take the accounting major so many career opportunities will be opened for me, for example, I could study public accounting and become a public accountant, can also study private industry accounting. I also can simply carry out my activity at the comfort of my home. Hence, accounting can be considered a flexible career as compared to other causes that require me to be at a particular specific place, for example, teaching. Accounting is also a demanding career, many companies require the help of an accountant to run their businesses, hence, creating high chances of being employed. The career is well paying, and creates an opportunity to progress[12]. The salary of accountants also is expected to rise in the future. Accounting can be considered the backbone for any business anywhere, to grow. The biggest economic contributor in any country is business, hence there is need to have people who are good in bookkeeping. Knowledge of accountancy and the skills learnt, enable me who am good in accounting to contribute in the growth of a country’s economy. Hence, the importance of accounting cannot be underestimated. This is because every person needs accounting in their day to day activities. Hence, being an accounting major gives me an upper hand, as I already will be equipped, with the accounting skills.



[1] Ronald Duska, Brend Shay Duska and Julie Anne – Accounting Ethics 2nd Edition – IIUM Press – WILEY-BLACKWELL – 10 – 2011.
[2] Jason Alba & Manisha Bathija – VAULT CAREER GUIDE TO ACCOUNTING – IIUM Press – VAULT Inc. – 41-43 – 2005.
[3]  Ronald Duska, Brend Shay Duska and Julie Anne – Accounting Ethics 2nd Edition – IIUM Press – WILEY-BLACKWELL – 20 – 2011.
[4] Jason Alba & Manisha Bathija – VAULT CAREER GUIDE TO ACCOUNTING – IIUM Press – VAULT Inc. – 41-43 – 2005.
[5] Jason Alba & Manisha Bathija – VAULT CAREER GUIDE TO ACCOUNTING – IIUM Press – VAULT Inc. – 31-33 – 2005.
[6] Jason Alba & Manisha Bathija – Vault Career Guide to Accounting – IIUM Press – VAULT Inc. – 31-33 – 2005.
[7] Jason Alba & Manisha Bathija – Vault Career Guide to Accounting – IIUM Press – VAULT Inc. – 8-9 – 2005.
[8] Surah al-Nisa: 1. See; `Abdullah Yusuf `Ali, The Holy Qur’an: Text and Translation, 85.
[9] Surah al-Nisa: 104. See; `Abdullah Yusuf `Ali, The Holy Qur’an: Text and Translation, 69.
[10] Jack and Maurice – Accounting Ethics – Pearson Professional Limited – PITMAN PUBLISHING – 96 – 1996.
[11] Kevin Sullivan – Handbook of Geriatric Care Management – Cathy Press – Jones & Bartlett Publishing – 33 – 2006.
[12] Jason Alba & Manisha Bathija – Vault Career Guide to Accounting – IIUM Press – VAULT Inc. – 8 – 2005.

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