Kyleigh Ing
The backbone to every company is its finances. Within all the intricate departments of a company accounting is amongst one of the most important as it can determine the outcome of a company’s success. Accounting is the process of keeping records of any and all financial transactions. They summarize the operations and financial positions of an organization periodically. Accountants follow the rules according to the Generally Accepted Accounting Principles to guide them towards the proper structures when filing financial statements. Simple accounting work can be done by bookkeepers. However, they are not qualified to do more intricate accounting work which is why accountants must be certified to perform the tasks they do.
In order to become an accountant obtaining a bachelors of science in accounting is necessary (Math will be a significant part in obtaining this degree). Along with math, other business courses are required which will likely include: financial recordkeeping, ethics, statistics, management, personal and business tax, auditing, and international finance. During the completion of the degree it would be extremely beneficial to complete an internship. Internships allow for one to build relations, gain experience and can offer higher wages in the future and a greater number of opportunities. After successful completion of the bachelor degree, accountants have to undergo certifications to be qualified for their roles. There are a number of certifications available including Certified Public Accountants which consists of a comprehensive exam testing knowledge in the accounting field. The Certified Information Systems Auditor is another certification requiring 5 years of accounting and information systems experience. Certified Management Accountants certification requires an exam to pass that can only be taken after obtaining 2 years of management accounting experience. Finally, Certified International Auditors certification, requiring two years of internal auditing experience, entails a four-part exam to obtain.
There are multiple types of accounting including financial accounting which consists of drawing up financial statements, creating balance sheets, income statements and cash flow statements. Managerial accounting entail periodic reports to guide the business management team about operation decisions and budget forecasts. Cost accounting gives input regarding the production of products and determining prices of the product. Tax accountants follow the guidelines set at federal, state or local government when creating financial reports. They may also help to reduce a company’s tax liability while maintaining compliance with the rules. They also oversee the general taxes of a company.
Accounting follows a routine and is generally repeated periodically. Regular responsibilities include: obtaining transactional information such as invoices, bank statements, receipts and any other business transactions. They update the general ledger by entering all transactional information. From there a trial balance sheet is used to visualize debit and credit balances on the general ledger. This could be compared to a rough draft of an essay and is done to give an outline of the period. Entries are adjusted as is the trial balance in order to ensure proper financial balances. Finally, financial statements and transactions are summarized for the period.
The life of an accountant is suitable for those looking for routine work, where the worlds of math and business intertwine. The career has a repetitive nature and is heavily immersed in the roots of finance. This only further emphasizes how important accountants are to ensure a company’s financial affairs comply with government regulations and will allow the company to continue to thrive.
Works Cited
“Accounting Explained With Brief History and Modern Job Requirements.” Investopedia, https://www.investopedia.com/terms/a/accounting.asp. Accessed 05 January 2023.
“How to Become an Accountant - Learn the Steps, Degrees & Requirements.” Gwynedd Mercy University, https://www.gmercyu.edu/academics/learn/how-to-become-an-accountant. Accessed 05 January 2023.
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