Accounting is one of the most important and unique disciplines, which has a profound effect on all economic entities. Regardless of the job position, each individual should possess the knowledge of accounting as it has its application in various job specialties. Accounting is not only useful for business organizations, but also individuals in their daily lives to analyze their finances. I like accounting because it is one of the noblest professions, which receives a very high esteem the eyes of the public. In businesses, accounting is the fundamental framework of any business. It helps to assess the profit or loss of an organization. In government organizations, accounting aids in the budgeting of funds and financing projects of national significance. For personal use, accounting helps to make important decisions related to investments, insurance, pension planning, savings and many other financial aspects .
Accounting is the only way of keeping track of the financial information of an organization, which helps to detect fraud and take necessary steps to prevent the same. It is an instrument of communication between the financial institutions and individuals to avail funds from banks. Accounting generates reports and financial statements, which help the creditors, banks and other financial institutions to decide on the disbursement of loans. Without accounting, it is impossible for businesses as well as individuals to maintain a healthy financial status in the society. In the case of businesses, accounting helps to track the performance of their organizations, which in turn determines their reputation in the investors . Investors judge the profitability of their investments only after examining the financial statements of an organization thoroughly. Even after investing in a company, investors continually review the financial statements.
Record keeping, one of the important elements of accounting helps to analyze and interpret data collected from various sources, which helps in the process of decision making in various economic activities. Accounting provides various performance measures, which determine whether or not a business is achieving its goals and objectives. It is only on the basis of financial information provided by accounting that businesses survive in the market. In order to take important decisions related to public issues, accounting serves as a useful tool to the regulatory agencies, tax authorities and other institutions . Labor unions also depend on accounting to analyze the financial information of organizations and prepare contract negotiations. Various non-profit organizations also depend on the accounting information in order to raise funds from investors, tax payers and creditors.
Accounting aids in the planning process and plays an important role in preparing annual tax statements. The income statements and balance sheets prepared through the knowledge of accounting help to assess the profit and loss, and assets and liabilities of any business. For employees, accounting is important as it determines the financial condition of the organization in which they work. Accounting helps in controlling the finances from inappropriate expenses and ensures the future prospects of a business. The elimination of fraudulent activities becomes easy through the maintenance of accounting information. It also prevents chaos and discrepancies in various transactions conducted by businesses. Accounting improves the efficiency, accuracy and effectiveness of a business organization through the maintenance of financial records. It also helps the organizations to compare and comprehend the finances of other organizations and analyze their position.
A wide variety of jobs and careers are available for those pursuing education in the field of accounting. According to the surveys, there is an expected growth of accounting related jobs in the near future due to an increase in the number of businesses, which require auditing services to meet the changing financial regulations of the market . Moreover, there is a great demand for the scrutiny of the finances of businesses in today’s culture, which is another driving factor for the growth of accounting jobs. In the recent years, jobs related to audit positions and financial analysis, are witnessing an increasing growth. One can become a management accountant and work in-house for companies belonging to all categories. Jobs in new accounting specialties are growing at a tremendous rate, which include international accounting and forensic accounting. Litigation consulting and environmental accounting are gaining importance in the recent years due to a growing concern of businesses related to antitrust situations and environmental awareness .
The role of public accountants who majorly deal with financial accounting is also increasing at a tremendous rate. One can also become a private accountant and serve the accounting needs of businesses, individuals as well as government and non-profit organizations. There is a huge need for internal auditors in various companies as they perform audits related to specific departments and operational units within the company. A career as an accountant in the government sector helps to serve the local, state and federal needs of accounting . In the long term, public accounting has more benefits when compared to private accounting jobs, such as job security and promotions. However, there are also risks related to chargeability issues in public accounting. Thus, depending on the interests and various options available in the market, individuals may decide on which career they would like to pursue in the accounting field.
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Carter, Felicity. Accounting Careers: Adding Interest to Your Future!. Career FAQs, 2007.
Christensen, Peter Ove and Gerald Feltham. Economics of Accounting. Springer Science & Business Media, 2005.
Needles, Belverd and Marian Powers. Financial Accounting: Media Enhanced. Boston: Cengage Learning, 2007.