Essay- Accounting as a Profession
Introductory Part Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions, including computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management.
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They perform these vital functions by offering an increasingly wide array of business and accounting services to their clients, in order to provide information to them. Accounting- the best profession There is a lot to gain from a career in accounting. The most important is that people can learn how business works from accounting. Accounting jobs offers stimulating and challenging work that is constantly evolving. Because accountants spend a lot of time looking under the hoods of businesses, they really learn the nuts and bolts of business.
An accountant is perfectly positioned to become a Chief Financial Officer (CFO) because he has the best understanding of what drives business and profits in a company. In the year of 2009, the world economy is undergoing recession. The accounting profession has been affected just like the rest of the financial services industry. Accountants are thinking hard about their work lives and are worried about the future. Yet, the fundamentals are strong, demand for new graduates will be back and accounting should remain a promising profession for many years to come. Accounting in Management
Many firms are focusing on activity-based management, process-view analysis, constraint checking and business process analysis as well. The world of management accounting is evolving rapidly and there is high demand for accountants who are knowledgeable about these trends. Educational Requirements Climbing Most accountant and auditor positions require at least a 4-year bachelor’s degree with major in accounting or a related field. Some employers prefer applicants with a master’s degree in accounting, or with a master’s degree in business administration with a concentration in accounting.
Skill Requirements becoming broader There is high demand for individuals who can go beyond technical skills and display good interpersonal abilities, legal knowledge, sales abilities and foreign language skills. Accounting offers superb career opportunities in many different contexts. The field is normally divided into three broad areas: auditing, financial/tax and management accounting. The skills required in these areas differ as follows: SkillAudit AccountingTax and FinancialManagement Accounting People skillsMediumMediumMedium
Sales skillsMediumMediumLow InitiativeMediumMediumMedium Communication skillsMediumMediumHigh Creative abilityLowMediumMedium Analytical skillsHighVery HighHigh Computer skillsHighHighVery High Persons planning a career in accounting should have an aptitude for mathematics and be able to analyze, compare, and interpret facts and figures quickly. They must be able to clearly communicate the results of their work to clients and managers. Accountants and auditors must be good at working with people as well as with business systems and computers.
Because millions of financial statement users rely on their services, accountants and auditors should have high standards of integrity. Team-oriented job An accountant will usually start as a junior member of a team responsible for auditing an important account or preparing financial statements. It is important that one enjoys working as part of a team and that he or she learns to do so in his/her education. Technological Innovation The field of accounting has seen constant technological and intellectual innovation in recent decades. Firms are implementing new electronic systems for preparing and submitting financial statements.
And ways of tracking costs have improved with the introduction of techniques such as activity-based costing. How to choose a career in accounting Accountants are considered strategic business partners of their organizations and work in a variety of different areas. Besides preparing financial statements and recording business transactions, they also calculate costs and efficiency gains for new technologies, participate in the set up for acquisitions and mergers, and develop IT systems to track financial performance, tax strategy, and employee benefits management.
There are some options a student can follow in choosing a career in accounting. Audit Audit is the bread and butter work of accounting. Accounting auditing careers involve checking accounting ledgers and financial statements within businesses, public and not-for-profit organizations. Being increasingly computerized, this work can rely on sophisticated random sampling methods. This provides a solid foundation to future specialist work, and enables us to understand how an organization makes money. Budget Analysis
A budget analyst develops and manages an organization’s financial plans. Besides quantitative skills many budget analyst jobs require good people skills because of negotiations involved in the work. Financial Financial accountants draw information from the general ledgers to prepare financial statements. They also take part in the business’s important financial decisions involving mergers and acquisitions, employee benefits planning and long-term financial projections. This work can vary from week to week, so needs a combined understanding of accounting and finance.
Management Accounting Management accountants contribute to capital budgeting decisions and line of business analysis which include cost analysis, analysis of new contracts and participation in efforts to control expenses efficiently. Management accountants now often contribute to business decisions, working alongside marketing and financial managers to develop new business. Tax Tax accountants prepare corporate and personal income tax statements. They also prepare strategies for deferring taxes, when to expense items, how to approach a merger or acquisition, etc.
This work requires a thorough understanding of economics and the tax code. Many large firms now also look for persons with both an accounting and a legal background in tax. Places Where Accountants Work Public Accounting Firms A group of accountants work in a partnership that provides accounting services to individuals, businesses and government. A public accounting career will give one the opportunity to gain foundation knowledge before moving into a specialist area. This field offers advancement potential to audit manager, tax manager or partner reached by only two to three percent of new hires.
Government Government accountants may work at any level of government. They prepare budgets, track costs and analyze government initiatives. This work can have high impact on the public good but can also get political and is subject to bureaucratic obstruction. Government accounting offers advancement in most organizations to controller and possibly to higher administrative positions. Corporations Businesses of all sizes usually have an accountant or accounting department that prepares financial statements, tracks costs, handles tax returns, and works on major transactions.
The work is exciting and offers tracks to audit manager, tax manager, cost accounting manager and controller on the accounting side or to manager of financial planning and analysis and Treasurer on the finance side. Solo/Independent Working as a self-employed accountant means generating one’s own business. In this place, the owner benefits from close customer contact, a high degree of independence, and depending on how proficient you are- high financial rewards. Conversely, you are in a more vulnerable position when business is not so good.
Professional Accounting in Bangladesh: Chartered Accountancy: In the twenty first century Chartered Accountancy (CA) has emerged as a unique profession of paramount importance in the field of accounting, taxation, and financial management and other financial consultancy. The Institute of Chartered Accountants of Bangladesh (ICAB), established in 1973, is the National Professional Accounting Body of Bangladesh. The Institute has the following objectives: •Regulates the accounting profession. Provides specialized training and professional expertise in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and related subjects. •Ensures sound professional ethics and code of conduct by its members •Fosters acceptance and observance of International Accounting Standards (IAS) and International Standards on Auditing (ISA) and adopt IAS & ISA in Bangladesh as Bangladesh Accounting Standards (BAS) and Bangladesh Standards on Auditing (BSA) respectively. •Keeps abreast of latest developments in Accounting techniques, Audit methodology, Information technology, Management onsultancy and related fields. A Chartered Accountant is a Professional who is trained in and possesses the expertise to perform the various types of work such as Accounting, Taxation, Auditing, Financial Management, Project Appraisal, MIS, IT, Computer Auditing, Consultancy etc. In certain areas, like auditing, they have the monopoly. A Chartered Accountant engaged in public practice mainly carries out the following functions: 1. Perform professional services involving preparation, auditing or verification or certification of financial, accounting and related statements; 2.
Render professional services or assistance relating to accounting procedures, costing techniques, or recording, presentation or certification of financial facts or data; 3. Render professional services as Management Consultant in order to assist management in formulating its policies, programs, management systems and procedures for maintaining and improving efficiency. During the year 2007-2008, the Institute granted registration to 1257 students for Article ship, 1064 students completed their Article ship training and 28 Articled Students discontinued Article ship due to various reasons.
In the second half of 2008, 614 students were registered for Article ship with the Institute. ICAB has now grown to a membership size of 914 of which 662 are Fellow Members and the rest 252 are Associate Members. (As on 30 June 2008) Females are also playing a vital role as Chartered Accountants in Bangladesh and taking leading role gradually to become co-partner of the profession. ICAB has 26 female members (as on 18 February 2009) who are occupying the high ranking positions in CA firms, NGOs and international organizations like, the World Bank. Cost and Management Accounting:
The main function of a Cost and Management Accountant is to provide management with all persistent information which organizations need to control their operations most effectively, and to take appropriate decision to achieve optimum efficiency. The Institute of Cost and Management Accountants of Bangladesh (ICMAB), established in 1977, is the national institute of the country imparting training and education in the field of cost and management accounting. The Institute has the following objectives: •Regulate and develop the Cost and Management Accounting profession in Bangladesh. Confer highest professional degree in Cost and Management Accounting. •Impart training and education to the members, corporate managers and intending students of CMA for enhancing their capability in the fields of Cost and Management Accounting. •Develop knowledge, skills and competence of the CMAs needed to support economic development of the country. •Help adoption and implementation of IAS and IFRS in Bangladesh. •Implement statutory Cost Audit as provided in the Companies Act, 1994. •Conduct researches in the field of Cost and Management Accounting in order to promote and develop the profession with the requirement of the time.
Equipped with various methods and techniques, the Cost and Management Accountants can provide the following services: •Collecting, collating, screening, interpreting and condensing data relating to techno-human business activities, to enable Non-Financial Executives to arrive at the right decision at the right time. •Proper Costing of products and services. •Designing and implementing effective management information and control systems. •Planning and control of business operation through costing systems and various techniques. Inventory control incorporating mathematical models. •Cost reduction by using the modern management tools like Operation Research, Value Engineering, etc. •Investment analysis and preparation of Feasibility/Project Reports; its appraisal and evaluation. •Information management. •Project management-planning control and accounting. •Cost Audit of business transactions. •Performance evaluation. •Assistance in appropriate legal matters. •Diagnosis of industrial sickness and remedial measures. •Planning and monitoring of industrial action. •Loan application and negotiation. Asset valuation of an organization. •Pricing. •Working Capital Management. •Financial Analysis and projection for New and B. M. R. E. Projects. ICMAB has over 850 qualified members, who hold senior positions in trade, commerce, industry and Government organizations. A good number of them are employed abroad. The number of registered students at present is over 10,000. Chartered Secreteriateship & ACCA Concluding Part In this age of globalization, as the economy grows, the number of business establishments-both productive and non-productive organizations will increase.
The volume and complexity of information regarding costs, expenditures, and taxes will increase as well. Businesses will increasingly need quick, accurate, and individually tailored financial information due to the demands of growing international competition. These trends will positively affect the employment of accounting professionals. Again, in response to market demand, these professionals will offer more management and consulting services as they take on a greater advisory role and develop more sophisticated and flexible accounting systems.
By focusing more on analyzing operations rather than just providing financial data, accountants will help to increase the demand for their services. We know, the year of 2009 is a choppy year for accounting profession just like other service rendering business. Yet, it can be said undoubtedly that the accounting professionals will have an advantage in the job market for their qualifications and ability to satisfy the needs of the change in time.