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Abstract
AppliedAccountingwithprofessionalandPastandPresentPerspectiveby IQBALSHAUKATDoctoralMemberandmemberoftheCanadianAssociation ofpost-DoctoralfellowandmemberofNationalResearchAssociation. Outline Thispaperconsistsonthepresentandpastandprofessionalperspectiveof theAppliedAccountingwithcasestudyandReferencesandresultofvarious research. Accountingistheimportantpartof economy.Inthehistorywhenthebanking businesswasstartedthebookkeepingwasintroducedandstartedwiththe recordofallthetransactionofinterestandgoldsmithbusinessthepurpose ofthattoregularizedthealltransaction,withthehelpofaccountingallthe businessbecamethemoreefficientwiththepassageoftimemoregood measureswastakenregardingtheaccounting record, asaresultofthis effortsthefirstbankwasintroducedandwereenhancedandgrow.The confidenceofpeoplewasincreasedtheyinvestedmoreandmoregoldother depositspeoplewereverysatisfiedregardingtherecordoftransaction. Thepeoplegetmoreefficientresultofthisfinancialpositions,theclientship ofbusinesswereincreased,manyaccountingorganizationwereintroduced fortheaccountingeducation,manygreatauthorwrotethebooksregarding thebookkeepingandaccounting,withthepassageoftimeothernations adoptedthisaccounting knowledge,thebenefitofthatallthenationswere understandthebusinessterms easily.In seventeencentury,Britishorganized Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 manyfinancialinstitutionsinthevariouspartofworldinmanycountriesof world.In seventeencentury,Dutchorganized thestockand securities business,becauseofthisbookkeepingandaccountingthestockmarket businessweregrowed.In pervioustheaccountingwerenotunderstand, accountingistheknowledgewhichincreasethecourageofthe people.in the historytheMesopotamiapeoplekeeptherecordofalltransaction,for examplethepyramidsinEgyptisonetheexampleofbetteraccounting system inthisworld,manykindsofcivilizationareworkedinthisproject. Thisprojectwascompletedinthemanycouplesofyears,thiswasoneofthe greatexamplesofeffortsofmankinds. According to the history many people worked forthis project,this constructionistheprovethat goodsystemcancreatethegoodenvironment, withthehelpofgoodartoftransactionofaccountingtheycompletedthis project,thisprojecthasprovedthatgoodaccountingsystem isthevery importantofeverymegaproject,accountingduringtheage theyadopted thegoodaccounting system.in Iranpeopleengagedwiththeagriculture, peoplewanttomaintaintheaccountinthetabularbases,theyanalyzedthe economicsituationvery wall,as aresultofthattheagriculturesectorinIran wasdevelopedandprogressed,theparyieldproductionincreasedbecause ofgoodaccounting system,inthecaseofconflictthegoodaccounting system helpedthepeopleresolvedtheproblems,themonetaryvalueof cropswasestimatedonthemarket value.In theclassicagetheroman empireadoptedtheaccounting system..In romanempiresomepeople providedtheservicesforthegoodclineship,forexampletheykeptthe accountoflandaccordingtherequirementofpeoples.DuringtheRoman Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 empirethepeoplewereveryworriedaboutthetransactionofgoods,withthe helpofgoodaccountingsystem thekeepthetransactionrecords.Good accountingsystem helpedthepeopletocalculatetheexpenditureswhich wasincurredduringthecourseofeconomiclife. Duringtheromanempiresomeservicesproviderkeepstheaccounting record.Duringthenomadicperiodgoodaccountingsystemwasadopted,the purposeofthatregularizedthebusinessaffairs,duringthissystemtheywant thefinancialposition ofthebusiness,theywanttogetthemtoadoptsuch typeofbusinessapproacheswhichbeneficialforbusinessoperation,during thenomadictheyadoptedtheself-balancingledgerthepurposeofthat estimatethedebtorsandcreditledger,duringthisperiodtheywantcreate suchsystem whichreducedthepossibilityoferrors,duringthisperiodthe tradewasenhancedmanycountries.Forexample,manytribesofEurope like Germanic,Frank,nomadictribes,theyenhancedthetradetomany countries,withthepassageoftimethebusinessapproacheswerechanged. In theeleventhcenturythebooksystemwasintroducedwhichwascalledthe doubleentrysystem.Thepurposeofthattoestimatethesoundaccounting system,theyintroducedthejournal,Ledger,Balancesheet.Theaccounting systemwaspassedtheevalutionstages.Systemofaccountingwasbecame theschoolofthoughtinthefinancialworld,thenewsystemistoorganized thenationtheeconomicsystem,whichwascreatedfortheobjectiveof economic hemocytetimethebusinesssegmentsrealizedthatthethis accountingsystemsuchasledger.Journal,trialbalancegivetheopportunity tothisthatorganizedtheeconomicsystem onthegloballevel.Egypt civilizationistheascentcivilizationofthisworld,duringtheoldcivilization Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 peopleadoptedthegoodagriculturesystem,agricultureindustrywasthe onlywaytoearnthemoney,peoplemaximizetheircapacityovertheearof agricultureincome.Accountingsystemwasneededduringtheoldcivilization ofEgyptage,Peoplekepttherecordofagriculturecrops,peoplearevery worryaboutthedistributionofagricultureincome,everypersonadoptedthe agriculturewayof income.In IndiafirstaccountingbookwrittenbyChanakya, heexpressedthesystembeforetheB.Ch.E.wrotethebookinwhichheold systemduringmuramylDestineeexplainedtheallthefaceofaccountancy, heexplainedhowthesystemofaccountisworkinonesocietiesexplained thehowtheeconomicsystem isruninonesocietiesexplainedhowthe accountofbookshasbeenpreparedaccordingtotheneed,heexplainedthe standerhowtheAccountingtransactionistransparentexplainedhowthe expensesissummarizedandwrite, heexplainedhowtheaccountingsystemisavailableinoneentity.Famous bookwaswrittenbyChandanastrivesaboutaccountsinwhichheexpressed regardingthecurrencyandtradesystem,.Heexplainedhowthecurrency systemwasworkedduringdifferentdynastiesexplainedhowthecorporate andbusinessentityinthepastages,heexplainedtheBritishlegislation abouttheaccountancy,heexplainedeffectsofBritishlegislationonIndian styleofaccountingandaccountingsystem,hegavegoodconsultation regardingthegoodaccountingstemflowpencillywasthefirstwriterhow explainedtheprinciplesofaccounting,hewrotethisbookin1457.Louca explainedhowtheaccountingsystemworkproperly,hetrainedthemerchant howtheygetcreategoodaccountingsystem,headvisedthatmerchantthey donotleavethemarketuntilthedebitandcreditarebalancedgavethe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 methodhowtomakethetrialbalanceandBalancesheet.Duringtheage whentheJewishwasinItaly,hehelpedhowruntheBusinessandeconomic cyclerunintheBusinessworld,heestablishedtheaccountingschoolforthe promotionofaccounting.DuringtheagetheLousesmanyaccounting schoolswasestablishedforthesack knowledge,as aresultofthatGood bankingsystem wasestablishedinRome.AlltheLuccaofeffortpossible thatwehavethegoodaccountingsystemandbankingsystem.Aftertheera oftheLousestheaccountingprofessionbecomethemostgoodand respectableprofession,manygrowingstudentadoptedtheprofessionof accounting.Lousesgavetheformathowtomakethemakeprofitandloss a/c,withthehelpofprofitandlossestamitedthefinancialpositionsof companyandindiviuals.Lousisgivetheprincipleshowtoexpensesentered intheprofitandloss.Lousisexplainedhowtheprofitandlosscalculated,he explained the aboutthe capitalization ofincome and expenditure,he explained the testhow the how the expenditure and income are capitalised,withthehelpofthiswecaneasilycalculatetheprofitbilityof businessandactualizationofamountofbalancesheets.Duringtheruleof Britaintheymaintainthegoodpractiseofaccounting,becauseofgood accountingsystem,theymaintainedgoodeconomicsysteminvariouspart ofworld.,forexampleitwasnoteasyfortheBritainandotherclonionpowers toruntheeconomicsystem of clonoies,by thehelpofgoodaccounting systemtheystartedmanyprojectsofdevlopmentandtheothernesscessity oflife.AftertheliberationofUSAtheyorganizedthepoliticalsystemaswell asaccountingsystem,theyintroducedthecurrencysystemaccordingtothe statesofUSA,theystartedtheagriculturesystem,withthehelpofgood Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountingsystem,theystartedthelegislationtheforthegoodmonetary system. Thepurposeofthismonetarysystem istoregularizedtheeconomic system.Whentheoilandothermineralswasdiscoveredinpencellvanyia,With thehelpofgoodaccountingsystemtheyutilizedtheoilresourceverywell, theygivethevalueadditionofresourceswiththehelpaccountingsystem theyregularizedtheproductionof minerals.In the1765thestockmarket businesswasstarted,Withthehelpofaccountingsystem theymaintain systemofsecuritiesandshares,theyinvested instockexchange,because ofthegoodaccountingsystem theymaintainedtherecordofsharesand securities, bythehelpofgoodaccountingsystem theykeepthetrendofstock exchange.Thegoodaccountingsystemincreasedtheinvestorcofidence.The secondachievementofthegoodaccountingsystem theyintroducedthe wall street,in whichalltheorganizationmaintainedtheeconomic hub,inwall streetmanybanksandfinancialinstitutswasestablished,thepurposeofthat runthebusinesscycle efficently,in wallstreetseveralaccountingservices firm wasestablished.Thepurposeofthatorganizedthebusinessonthe modern line.In 1855companieslaw wasintroducedthepurposeofthat organizedthepublicbusiness, this law was successfully run,because of good and sound accounting system.In 1865thesingleliabilitycompanieswasintroduced,the purposetoenhancedthebusiness,thisisonlywaydevlopedwhenthegood accountingsystemimplemented. Aftertheestablishedofmultinationalin1796intheform ofoxford Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 press,Nestle,andotherinternationalbrands,becauseofthegoodaccounting systemtheyestablishedtherebusinessaccordingtomodernline,becauseof thegoodaccountingtheychannelizedthereresourceverywall,becauseof theaccountingrecord theymaintainedgoodaccountingcycle. Sometimethebusinessoperationofmultinationalcompaniesiswidely aroundthe world,inthatcircumstancesonlygoodaccountingcyclehelped the organization in cross culturerization,many part of world many professionalinstitution in world,in1929 the firstchartered acccountant institutecameinbeing.Thepurposeofthattointroducedtheeducationin Accountingandfinance,thefundamentalpurposeofthattoprovidethe professionaleducationtostudentsandprovidetheprofessionalservicesto theorganizatio,thefundamentalpurposeofthatinstituteistostreamlineall theaccountingsystemalltheorganizationallevel. AssociationofCertifiedpublicaccountantisthebiggestorganizationofUSA in1928,thebasicpurposeofthatprovidetheprofessionaleducationforthe accountancy.TheAssociationofcertifiedpublicaccountantestablishedthe standerofaccountancyfortheaccountancy. Thebasicpurposeofthattodesigntheprofessionalsyallbusforthe student.ManystudentpartofworldconnectedwiththisorganizationAicp. Instituteofcertifiedinternalauditorisonetheprestigousinstituteinworld. Certifiedinternalauditordesignthestanderforinternalaudit.Thebasic purposeofthatprovidetheprofessionalqualificationsregardingaudit,the basicpurposeofthatqualificationtoestablishsuchstanderwhichwillbe acceptableforallthebusinessentitiesandorganization.Thecertifiedinternal auditorisplayingtheveryfineroleincorporateGoverence.Thefudamentalof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 thisinstitutetointroducedthesuchcultureinAmericansociteywhichis beneficalforalltheentities.Certifiedbusinessconsultantisoneofthe professionalbodiesaroundtheworld,thefundamentalpurposeistoprovide theconsultancyforbusiness,manyofthebusinessconsultantarejoinedthis organizationforthepurposeofgoodreputation.Associationofcertified chartered accountantis the globally recognized bodies around the world.Manyaccountingbodyaroundtheworldrecoginzedthisinstitute.Acca providetheprofessionaleducationregardingaccountingandfinance,the basicpurposeofthatinstitutetobuiltsuchculturesuchisveryfavourable forallsegamentsocitey. Charteredinstituteofmanagement Accountantistheprofessionalbody, thebasicpurpose Ofthatprovideeducationinthefieldofmanagementaccounting. Managementaccountantisonekeyprofessionalwhichisrelatetothefield ofmanagerialstance,thebasicpurposeofthatpromotetheeducationinthe fieldofcostandmanagerialaccounting.Instituteofcharteredaccountant englandandWalesareveryfamousinstituteforcharteredaccountantancy institute.ICAEW wascameintobeingbytheorderofroyalchartered,the basicpurposeofthat to provide the professionalaccountancy in the field of chartered accountancy,icaewdesignedthesyallbuswhichisrequiredaccordingtothe requirmentof qualification.in therecentyears,theicaewplayedthevitalrole inthecountryeconomy,Icaewbuiltthemanpowerforthefinancialservices, Icaew established the standerwhich provided the guideline forthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountant,Taxconsultant,corporateconsultant,Managementconsultant. Accahavethechapterinseveralcountries.TheRoleofProfessionalBodies inImprovingtheEducation isvery important.in variouspartoftheworldvariousprofessionalbodies cameintobeing.Forexamplein.inUK,USAandinothercountriesmany professionalbodiescameintobeingregardingAccountingandengineering andhealth sciences.invariouspartofworldmanyprofessionalbodiescame intobeingwithintentionofcreatetheprofessionalism.Professionalbodies arrangetheexamformembertoincreasetheprofessionalism.Professional bodiesgivethestatusofmembershipsaccordingtotheirexperienceand qualification.Professionalorganizationarrangetheworkshopandseminar for the member to enhancementto increase the professionalism. Professionalbodiespublishthestudymaterialwhichisverybeneficialfor members.Theygivethefacilityoftrainingtomembertoincreasethe professionalism professionalbodiesmakethestanderofperformancefor practitioners.Professionalorganizationgivethesuretyofperformanceto enterprises sector.Professionalorganization arrange the courses for assurancesofstanderofperformance.Professionalorganizationeducate themembersaccordingtotheneedofindustry.Professionalorganization educatethememberaccordingtotheneedofcorporatesector.Professional organization provide the facility of online knowledge to member’s Professionalpracticeadviserboardformedbyprofessionalorganization. Professionalorganizationeducatethemembershowtoincreasetheintegrity ofprofession.Professionalorganizationhelpthememberhowtoincrease thestanderofservices.Professionalorganizationsgiveadvicehowthesafe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 guardofinterestispossible.Professionalorganizationteachthemember howtosavefrom thecorruptpractice.Professionalorganizationgivethe advicehow thebetterservicecanbeprovided.in thecaseanychangein curriculum ofeducation.Professionalinstituteprovideopportunitystudyto updateineducationandpasstheexamination.Forthebetterconceptual trainingprofessionallybodiesprovideteachingopportunitytomembers. Professionalorganizationcalltheannualmeetingof member.in whichall membersaremeeteachothersharetheidearegardingtheideahowthe standerofservicecanbeincreased.Professionalorganizationprovidethe trainingto memberhowthegovernanceissuescanberesolvedregarding laws.Professionalorganizationpublishthestudycaseofinternational companies which is related to services and consultancy.Sometime professionalorganizationmakethearrangementformemberstoattended theconferenceindevelopedcountries.Professionalorganizationnegotiation widthinternationalbodieshowtorulesofengagementbetweentheforeign governedcompanies.Professionalorganizationprovidetheopportunitiesof studytoexistingmemberindevelopedcountries.Professionalorganization providethehelptomembershowtomaketheengagementofserviceswith client.Professionalorganizationprovidetheguidanceofnotetomemberin thecaseitisneeded.Aftertheinternationalstanderorganizationwas established they established the various standards regarding the environmentalpollutionandconditionoflaborsandotherkeyissues. Professionalorganizationguidancenotestomembers.Professionalinstitute publishthedirectoryofmembersfortheinformation.Sometimesome organizationchallengethecredibilityofmemberprofessionalhelpinthis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 regard.Professionalorganizationeducatethememberwhenhedeviatefrom standards.Professionalorganizationeducatethememberhowtocoordinate withgovernmentregardingtheservices.Professionalorganizationhelpthe memberhowtodealwithUNreliableclientwhichisnotregisterunderthe rulesandregulations.Professionalorganizationmaintainthestatusofits members.Professionalorganization design the code of ethics of internationalstandards.Professionalorganizationinformthememberabout thechangeinlawswhichislegislatedbyinternationalbodiesforexample American congressand Europeansunion.Thuswe can wayrole of professionalorganizationisveryimportantandimportanteducatethe client.Professionalbodyplaytheroleofregulator.Ifwesupposethatthe professionalbodieswillnoteducatetheclient.Theeconomicsectorwillface heavylossandnotsustaintheobjectofdevelopmentandaccuracy. Professionalorganizationsprovidetherouteofdevelopmentofservices Professionalorganizationgiveguidancetomemberhowthevalueadded servicesisperformed.Professionalorganizationgiveguidancehow the businessoperationcanbeoperatedwithoutprofessionalservices. Althoughmostoftheeventsandpublicationslistedbelow arerelated specificallytoaccounting,anumberofpublicationsrelatedtomanagement andbehavioralissuesareincludedsincemanagementaccountingis(or shouldbe)mainlydrivenbymanagementtheoryandpractice.Thistime-line couldbeusedasthebasisforashortoralongcourseonaccountinghistory, orasareferencesourceforaccountingevents.mostaccountingstudents getverylittleexposuretoaccountinghistory. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Thisresourceisofferedtohelpalleviatethatproblem. 1812:Accountinghistoriansplacetheoriginofmanagementaccounting around 1812.Around thistime,textilemillsbegan to perform many processesinsidetheorganizationthathadpreviouslybeenperformed outsidethecompanybyindependentcraftsmen.SeeH.T.JohnsonandR.S. Kaplan,1987,RelevanceLost:TheRiseandFallofManagementAccounting. HarvardBusinessSchoolPress:Chapter2.(MAAW'sRelevanceLostsection); Johnson,H.T.1983.Thesearchforgaininmarketsandfirms:Areviewof thehistoricalemergenceofmanagementaccountingsystems.Accounting, OrganizationsandSociety8(2-3):139-146.(Summary);Chandler,A.D.1977. The Visible Hand:The ManagerialRevolution in American Business. Cambridge,Mass.:HarvardUniversityPress;andPorter,D.M.1980.The WalthamsystemandearlyAmericantextilecostaccounting 1813-1848.The AccountingHistoriansJournal7(1):1-15.(JSTORlinnk 1817:Payen(France)wroteabookoncostaccounting. 1818:JohnBennettconducteddoubleentrybookkeepinginstructioninNew York. 1854:Colburn'sRailroadAdvocateurgedtherecognitionofdepreciationby "settingasidesumseachyeartocoverthereplacement." 1861:ThefirstincometaxlawintheU.S.waspassedduringtheCivilWar 1878:ThomasEdisonsetuptheEdisonElectricLightCompany.The companyevolvedintotheEdisonGeneralElectricCompany. 1881:After1880,predeterminedstandardratesweredevelopedusingtime andmotionstudyforlaborandabillofmaterialsforrawmaterials. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 JosephWhartonestablishedthefirstAmericancollegiateschoolofbusiness thatlaterbecamepartoftheUniversityofPennsylvania. 1882:TheInstituteofAccountants&BookkeeperswasformedinNewYork. 1883:TheaccountingfirmofBarrow,Wade,&GuthriewasfoundedinNew York.AnaccountingcoursewasofferedattheWhartonSchoolofFinance& Commerce. 1885:TheSocietyofIncorporatedAccountantsandauditorsregisteredunder theCompaniesActof1885. 1887:TheAmericanAssociationofPublicAccountants(AAPA)iscreated. Issuescertificatesbasedonexperience.Thecomptometerispatented. 1889:Norton,G.P.1889.Textile-Manufacturers'Bookkeeping forthe CountingHouse,MillandWarehouse.Simpkin,Marshall,Hamilton,Kent. 1890:Carter,F.H.1890.PracticalBook-keepingAdaptedtoCommercialand JudicialAccounting:WithSetsofBooksandAccounts.Bell&Bradfutte. 1891:TheaccountingfirmsPriceWaterhouse&Company,andBarrow,Wade, &GuthrieestablishedOfficesinChicago. 1892:TheEdisonGeneralElectricCompanymergedwithThomson-Houston ElectricCompanytoformtheGeneralElectricCompany. 1894:TheAAPApassesaresolutionadvancingitsfirststandard-relatedto thebalancesheet. 1895:TheaccountingfirmHaskins&SellswasfoundedinNewYork. 1896:NewYorkGovernorL.P.MortonsignsthefirstCPAbillintolaw. ThetitleC.P.A.wastobeobtainedbyprofessionalexaminationadministered byNewYorkUniversity. TheDowJonesIndustrialAverageisintroducedat40.94trackingthedollar Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 averageof12stocks. ProvidedbyJamesR.Martin,Ph.D.,CMA ProfessorEmeritus,UniversityofSouthFlorida.HistoryandDevelopment MainPage|TheAccountingHistoriansJournal Althoughmostoftheeventsandpublicationslistedbelow arerelated specificallytoaccounting,anumberofpublicationsrelatedtomanagement andbehavioralissuesareincludedsincemanagementaccountingis(or shouldbe)mainlydrivenbymanagementtheoryandpractice.Thistime-line couldbeusedasthebasisforashortoralongcourseonaccountinghistory, orasareferencesourceforaccountingevents.Isuspectmostaccounting studentsgetverylittleexposuretoaccountinghistory.Thisresourceis offeredtohelpalleviatethatproblem. 1812:Accountinghistoriansplacetheoriginofmanagementaccounting around 1812.Around thistime,textilemillsbegan to perform many processesinsidetheorganizationthathadpreviouslybeenperformed outsidethecompanybyindependentcraftsmen.SeeH.T.JohnsonandR.S. Kaplan,1987,RelevanceLost:TheRiseandFallofManagementAccounting. HarvardBusinessSchoolPress:Chapter2.(MAAW'sRelevanceLostsection); Johnson,H.T.1983.Thesearchforgaininmarketsandfirms:Areviewof thehistoricalemergenceofmanagementaccountingsystems.Accounting, OrganizationsandSociety8(2-3):139-146.(Summary);Chandler,A.D.1977. The Visible Hand:The ManagerialRevolution in American Business. Cambridge,Mass.:HarvardUniversityPress;andPorter,D.M.1980.The WalthamsystemandearlyAmericantextilecostaccounting 1813-1848.The AccountingHistoriansJournal7(1):1-15.(JSTORlink). Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 1817:Payen(France)wroteabookoncostaccounting. 1818:JohnBennettconducteddoubleentrybookkeepinginstructioninNew York. 1854:Colburn'sRailroadAdvocateurgedtherecognitionofdepreciationby "settingasidesumseachyeartocoverthereplacement." 1861:ThefirstincometaxlawintheU.S.waspassedduringtheCivilWar. 1878:ThomasEdisonsetuptheEdisonElectricLightCompany.The companyevolvedintotheEdisonGeneralElectricCompany. 1881:After1880,predeterminedstandardratesweredevelopedusingtime andmotionstudyforlaborandabillofmaterialsforrawmaterials. JosephWhartonestablishedthefirstAmericancollegiateschoolofbusiness thatlaterbecamepartoftheUniversityofPennsylvania. 1882:TheInstituteofAccountants&BookkeeperswasformedinNewYork. 1883:TheaccountingfirmofBarrow,Wade,&GuthriewasfoundedinNew York.AnaccountingcoursewasofferedattheWhartonSchoolofFinance& Commerce. 1885:TheSocietyofIncorporatedAccountantsandauditorsregisteredunder theCompaniesActof1885. 1887:TheAmericanAssociationofPublicAccountants(AAPA)iscreated. Issuescertificatesbasedonexperience.Thecomptometerispatented. 1889:Norton,G.P.1889.Textile-Manufacturers'Bookkeeping forthe CountingHouse,MillandWarehouse.Simpkin,Marshall,Hamilton,Kent. 1890:Carter,F.H.1890.PracticalBook-keepingAdaptedtoCommercialand JudicialAccounting:WithSetsofBooksandAccounts.Bell&Bradfutte. 1891:TheaccountingfirmsPriceWaterhouse&Company,andBarrow,Wade, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 &GuthrieestablishedOfficesinChicago. 1892:TheEdisonGeneralElectricCompanymergedwithThomson-Houston ElectricCompanytoformtheGeneralElectricCompany. 1894:TheAAPApassesaresolutionadvancingitsfirststandard-relatedto thebalancesheet. 1895:TheaccountingfirmHaskins&SellswasfoundedinNewYork. 1896:NewYorkGovernorL.P.MortonsignsthefirstCPAbillintolaw. ThetitleC.P.A.wastobeobtainedbyprofessionalexaminationadministered byNewYorkUniversity. TheDowJonesIndustrialAverageisintroducedat40.94trackingthedollar. 1896:NewYorkGovernorL.P.MortonsignsthefirstCPAbillintolaw. ThetitleC.P.A.wastobeobtainedbyprofessionalexaminationadministered byNewYorkUniversity. TheDowJonesIndustrialAverageisintroducedat40.94trackingthedollar averageof12stocks. Flesher,D.L.,G.J.PrevitsandT.K.Flesher.1996.Profilingthenewindustrial professionals:ThefirstCPAsof1896-97.BusinessandEconomicHistory 25(1):252-266.(Link) 1897:ThefirstStateSocietyofCPAswasfoundedinNewYork. 1899:ChristineRossbecomesthefirstfemaleCPA. Nichols,W.G.1899.MethodsofCostFindinginCottonMills.E.L.Barry. Neal,E.V.1899.ModernBankingandBankAccounting:Containinga CompleteExpositionontheMostApprovedMethodsofBankAccounting, DesignedasaTextBook...Williams&Rogers. 1900:TheaverageAmericanweeklywageis$9.30. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 EastmanKodakCompanyintroducestheBrownieboxcamera. 1901:TheIncorporatedPublicAccountantsofMassachusettsattemptsto establish and maintain the Incorporated Public AccountantorI.P.A. designation. BookkeeperPublishingCo.1901.AccountingSystemsfortheWholesale GroceryandHardwareBusiness.The BookkeeperPublishingCompany.BookkeeperPublishingCo.1901.Retail Accounting:Atextbookfortheuseofbook-keeperswhokeeptheaccounts ofretailbusiness,withspecialattentiontotherequirementsofgeneral stores,drugstores,bakeries,creameriesandicebusinesses.TheBook- KeeperPublishingCompany. Macpherson,F.H.1901.MunicipalAccounting:AcomprehensiveTreatiseon theSubjectofMunicipalAccounts...TheBook-keeperPublishingCompany. 1902:Thefirm ofLybrand,RossBros.,&MontgomerywasformedinNew York. TheFederationofSocietiesofPublicAccountantswasformedintheU.S. U.S.Steelissuedthefirstconsolidatedbalancesheet.Thefirm ofErnst& ErnstwasformedinCleveland. Arnold,H.L.1902.Costfindingmethodsformoderatesizedshops. EngineeringMagazine(December):385-395. Sweetland,C.A.1902.TheScienceofLooseLeafBook-keepingand Accounting.C.A.Sweetland. 1903:DuPontPowderCompanyisfounded,developed acentralized accountingsystemandbeganusingreturnoninvestment.SeetheRelevance LostChapter4summary.TakealookattheduPontEstates. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 FordMotorCompanyisformed. TheWrightbrothersmaketheirfirstflight. Dicksee,L.R.andJ.E.G.DeMontmorency.1903.Advancedaccounting.Gee &Co. Moore,J.H.andG.W.Miner.1903.AccountingandBusinessPractice.Ginn &Company. 1904:ThefirstInternationalCongressofAccountantswasheldinSt.Louis. CostaccountingwasbeingtaughtintheUniversityofPennsylvaniaandNew YorkUniversity. Broaker,F.1904.Techniqueofaccountics.F.Broaker. BookkeeperPublishingCo.1904.TheAmericanBusinessandAccounting Encyclopaedia:A Standard Reference Work forBusiness Men and AccountantsprofuselyIllustrated...TheBook-KeeperPublishingCompany. 1905:TheFederationofSocietiesofPublicAccountantsmergeswiththe AmericanAssociationofPublicAccountants. ThefirstissueoftheJournalofAccountancyispublishedbasedonanearlier journaloftheIllinoisSocietyofCPAs,TheAuditor. JournalofAccountancy.1905.PennsylvaniaC.P.A.Examinationquestions. JournalofAccountancy(December):169-176.(SeeRorer,W.W.1905JOA (December):176-180forsolutions). TheInterstateCommerceCommissionseekstosetupauniformsystemof accountingforrailroads. Hawkins,L.W.1905.Costaccounts:Anexplanationofprinciplesandaguide topractice.Gee&Co. Mackay,J.S.,E.Boyd,J.R.Fogo,A.SloanandJ.Patrick.1905.Ahistoryof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountingandaccountants.T.C.&E.C.Jack. Rahill,J.J.andA.G.Platt.1905.CorporationAccountingandCorporation Law:AManualofCorporateOrganizationandManagement:Accountingin TheoryandPractice:Banking,withSpecialReferencetotheNationalBanking System,andaTreatiseonStockExchanges.TheAuthor. 1906:TheU.S.CensusBureaucallsaconferenceonuniform municipal accountingadoptingatentativescheduleofstandardaccounts. AcommitteeoftheAmericanAssociationofPublicAccountants(AAPA)is appointedtohelptheFederalKeepCommissionintroducebusinessmethods intogovernment. TheAAPAformsacommitteetocreateethicsstandardsforitsmembers. TheAccountant,Volume35.1906.LaffertyPublications 1907:TheTreasuryDepartmentchangedfrom singleentrytodoubleentry bookkeeping. SpraguewroteThePhilosophyofAccountsand19chaptersarepublishedin variousissuesoftheJournalofAccountancy.Sprague,C.E.1972.The PhilosophyofAccounts.ScholarsBookCo.Reprintofthe1908edition. ReviewbyG.J.Previts.1974.TAR(January):216-217.(JSTORlink). 1908:ColewroteAccounts-TheirConstructionandInterpretation.The "Wheregot-Wheregone"statementwasintroduced. Church,A.H.1908.TheProperDistributionofExpenseBurden.The EngineeringMagazineCo HarvardBusinessSchoolwasfounded."Withagrantof$12,500ayearfor fiveyearsfromtheRockefellerFoundationandwithanequalsumsecuredby Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ProfessorTaussigfrom friendsofthecause,theCorporationwasenabled on March 30,1908,to establish the Graduate SchoolofBusiness Administration.($12,500wasequivalenttoapproximately$340,192in2018. Seewestegg.com/inflation/)ItopeneditsdoorstostudentsinSeptember, 1908."..."Yettherestillremainedmanyskepticsamongbusinessmen.There weresomefewwhovoicedtheirbeliefthattheonlytrainingforbusinesswas acquiredatatenderagewithabroom onanofficeorfactoryfloor.There weresomeotherswholikedtoemploycollegemenbutonlyaftersomeone elsehad"brokenthem in." Anumberconcededthatacollegiatebusiness schoolmightimpartsomeusefulknowledgebutitcouldnottrainexecutives. Businessexecutives,weweretoldlikeMichelAngelosandShakespearesare born,notmade."Gay,E.F.1927.ThefoundingoftheHarvardBusiness School.HarvardBusinessReview(July):397-400 Bentley,H.C.andT.Conyngton.1908.Corporatefinanceandaccounting: Treatingofthecorporatefinancesandsecurities;thecorporatebooksof account;reports;negotiable instruments;and the powers,duties and relationsofthecorporationtreasures,withforms.TheRonaldPress. Day,C.M.1908.AccountingPractice.Appleton. FordintroducestheModelT. 1909:AfirstU.S.corporationexcisetaxisleviedoncorporateincome. CharlesKetteringinventsanaccountingmachinefortheNationalCash RegisterCompany. HenryRandHatfieldwroteModernAccounting:ItsPrinciplesandSomeofIts Problems.SeetheAccountingHallofFamesectionformoreonHatfield. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Bexell,J.A.1909.Farm AccountingandBusinessMethods.TheHome CorrespondenceSchool. ThemostexpensiveitemintheSears,Roebuckcatalogisapianolistedat $13 1910:Cole,W.M.1910.AccountingandAuditing.CreePublishingCompany. Church,A.H.1910.Organisation by production factors.Engineering Magazine(April):79-80. HamiltonChurchandotherswereusingaccountingtoevaluatetheoverall profitabilityofthefirm.Church'sideawastotracecosttoindividualproducts. Thismeantlinkingoverheadcosttoindividualproducts. In1910theaveragelifeexpectancyformenwas47years.Only14percentof thehomeshadabathtub.Only8percentofthehomeshadatelephone. Therewereonly8,000carsandonly144milesofpavedroads.The maximumspeedlimitinmostcitieswas10mph.TheaverageU.S.wagewas 22centsperhour.TheaverageU.S.workermadebetween$200and$400 peryear.Acompetentaccountantcouldexpecttoearn$2000peryear (That'sabout$54,430.73in2018dollars).Morethan95percentofallbirths tookplaceathome.NinetypercentofallDoctorshadnocollegeeducation. Instead,theyattendedso-calledmedicalschools,manyofwhichwere condemnedinthepressandthegovernmentas'substandard.'Sugarcost fourcentsapound.Eggswerefourteencentsadozen.Coffeewasfifteen centsapound.Mostwomenonlywashedtheirhaironceamonth,andused Boraxoreggyolksforshampoo.Thefiveleadingcausesofdeathwere:1. Pneumoniaandinfluenza,2.Tuberculosis,3.Diarrhea,4.Heartdisease,5. Stroke.TheAmericanflaghad45stars.ThepopulationofLasVegas, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Nevadawasonly30.Crosswordpuzzles,cannedbeer,andicedteahadn't beeninvented.TherewasnoMother'sDayorFather'sDay.Twooutofevery 10adultscouldn'treadorwriteandonly6percentofallAmericanshad graduatedfrom highschool.Marijuana,heroin,andmorphinewereall availableoverthecounteratthelocalcornerdrugstores.Backthen pharmacistssaid,'Heroinclearsthecomplexion,givesbuoyancytothemind, regulatesthestomachandbowels,andis,infact,aperfectguardianof health'.Eighteenpercentofhouseholdshadatleastonefull-timeservantor domestichelp.Therewereabout230reportedmurdersintheU.S.(Source unknown). 1911:Bunnell,S.H.1911.Cost-Keeping forManufacturingPlants.D. AppletonandCompany. Evans,H.A.1911.CostKeepingandScientificManagement.McGraw-Hill. Moxey,E.P.Jr.1911.AccountingSystems:A descriptionofsystems appropriatetodifferentkindsofbusiness.AlexanderHamiltonInstitute. Taylor,F.W.1911.ThePrinciplesofScientificManagement.HarperBrothers. Taylor,F.W.2008.ThePrinciplesofScience. IFACistheglobalorganizationfortheaccountancyprofession.Itworkswith its163memberorganizationsin120countriestoprotectthepublicinterest byencouraginghighqualitypracticesbytheworld'saccountants.IFAC Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 membersrepresent2.5millionaccountantsemployedinpublicpractice, industryandcommerce,governmentandacademia.TheAICPAisamember ofIFAC. IFAC’s mostsignificantfunction is the promulgation ofInternational StandardsonAuditingbyitsindependentInternationalAuditing&Assurance Standards Board (IAASB). IFAC’s Code of Ethics for Professional Accountants,issuedbyanindependentstandardsboard,servesasaworld- widemodel.IFAC alsohasindependentboardsthatsetstandardsfor educationandpublicsectoraccounting. Besidesitsstandardsboards,IFACalsohasthefollowingbodies: TheComplianceAdvisoryPanel TheDevelopingNationsCommittee TheNominatingCommittee TheProfessionalAccountantsinBusinessCommittee TheSmallandMediumPracticesCommittee TheTransnationalAuditorsCommittee StatementsofMembershipObligations(SMOs)arethefoundationofthe MemberBodyCompliance Program,administered bythe Compliance AdvisoryPanel.Theyaredesignedtoprovideclearbenchmarkstocurrent andpotentialIFACmemberorganizationstoassistthem inensuringhigh qualityperformancebyaccountantsworldwide. TheComplianceProgram promotesandmonitorsconvergencebymemberbodiesto IFAC and InternationalAccountingStandardsBoard(IASB)standards. Compliance Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 withtheseSMOsbymemberbodiesisdeterminedthroughaquestionnaire. Resultsofthequestionnaire,includingtheAICPA’sresponse,areavailableon the IFAC Web site (www.ifac.org/ComplianceAssessment/published_surveys.php). Currently,therearesevenSMOs: SMO1—QualityAssurance SMO2—InternationalEducationStandardsforProfessionalAccountants andOtherEDCOMGuidance SMO3— InternationalStandardsRelatedPracticeStatementsandOther PapersissuedbytheInternational AuditingandAssuranceStandardsBoard SMO4—IFACCodeofEthicsforProfessionalAccountants SMO5—InternationalPublicSectorAccountingStandardsandotherPSC Guidance SMO6—InvestigationandDiscipline SMO7—InternationalFinancialReportingStandards(IASB) TogainsupportforitsstandardsIFAC hasinstitutedanindependent oversightstructure,headedbythePublicInterestOversightBoard(PIOB). ThePIOBisinfluencingIFAC’sactivitiesbyemphasizingmoretransparency, independenceanddiverserepresentationonitsgoverningandstandards- settingbodies. IFACisgovernedbya22-memberBoardthatmeetsfourtimesayearanda Councilconsistingofrepresentativesofmemberbodiesthatmeetsonceper year. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 IFACsponsorstheWorldCongressofAccountantsthatmeetseveryfour yearsandishostedbyamemberbody. AICPAParticipationinIFAC TheAICPAisthelargestmemberbodyinIFAC,andhastworepresentatives ontheIFACBoard. TheUnitedStateshasapproximately18representativesservingonIFAC boards,committeesandtaskforces. Mostoftheserepresentativesare AICPAmembers,alongwithothersrepresentingtheInstituteofManagement AccountantsandNASBA. FormerAICPAChairRobertBuntingwaselectedinNovember2006asthe IFACDeputyPresidentattheWorldCongressofAccountantsinIstanbul, Turkey.Histwo-yeartermaspresidentwillbeginin2008. FormerAICPABoardmemberMarilynPendergastwasnamedtherecipient oftheIFACSempierAwardforexemplaryIFACserviceandreceivedthe awardattheWorldCongressofAccountantsinIstanbul,TurkeyinNovember RelatedArticles InternationalFinancialReportingStandards(IFRS)—anAICPABackgrounder InternationalFinancialReportingStandards(IFRS) InternationalStandardsofAuditing(ISA) IntroductiontoInternationalStandardsonAuditing Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 InternationalStandardsonAuditing(ISA)refertoprofessionalstandards dealingwiththeresponsibilitiesoftheindependentauditorwhileconducting the financialauditoffinancialinfo.These standards are issued by InternationalFederationofAccountants(IFAC)throughtheInternational Auditing and Assurance Standards Board (IAASB).The ISAs include requirementsandobjectivesalongwithapplicationandotherexplanatory material.Theauditorisobligatorytohaveknowledgeaboutthewholetextof anISA,countingitsapplicationandotherexplanatorymaterial,tobeaware oftheobjectivesandtoapplytherequirementsaptly. ListoftheStandards ThekeystandardsissuedbytheISAinclude: Respectiveresponsibilities Auditplanning Internalcontrol Auditevidence Usingworkofotherexperts Auditconclusionsandauditreport Specializedareas StructureofISAs EveryISAisstructuredinindividualsectionsas: Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Introduction Introductorymaterialcanincludethepurpose,scope,andsubjectmatterof theISA,aswellastheresponsibilitiesoftheauditorandothersincontextin whichtheISAisestablished. Objective EveryISAconsistsofasclearstatementabouttheobjectiveoftheauditorin theauditareaaddressedbythatISA. Definitions ForhigherunderstandingoftheISAs,pertinenttermsaredelineatedineach ISA. Requirements Everyobjectiveisshoredupbyclearlystatedrequirements.Requirements arealwaysexpressedbythephrase“theauditorshall.” Applicationandotherexplanatorymaterial Theapplicationandotherexplanatorymaterialexplainsmoreexactlywhatis meantbyarequirementorisintendedtocover,orincludesexamplesof proceduresthatcanbeappropriateundercertaincircumstances. ObjectivesoftheISA TheISAobjectivesaretwo-fold: Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Analyzingthecomparabilityofnationalaccountingaswellasauditing standardswithinternationalstandards,determinethedegreewithwhich applicableauditingandaccountingstandardsarecomplied,andanalyze strengthsandweaknessesoftheinstitutionalframeworkinsustaininghigh- qualityfinancialreporting. Assistthecountryindevelopingandimplementingacountryactionplanfor improvementofinstitutionalcapacitywithaview ofstrengtheningthe corporatefinancialreportingsystemofthecountry. ListofISAs ISA200,OverallObjectivesoftheIndependentAuditorandtheConductofan AuditinAccordancewithInternationalStandardsonAuditing ISA210,AgreeingtheTermsofAuditEngagements ISA220,QualityControlforanAuditofFinancialStatements ISA230,AuditDocumentation ISA240,TheAuditor'sResponsibilitiesRelatingtoFraudinanAuditof FinancialStatements ISA250,ConsiderationofLawsandRegulationsinanAuditofFinancial Statements ISA260,CommunicationwithThoseChargedwithGovernance ISA265,CommunicatingDeficienciesinInternalControltoThoseCharged withGovernanceandManagement ISA300,PlanninganAuditofFinancialStatements ISA315,IdentifyingandAssessingtheRisksofMaterialMisstatement Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 throughUnderstandingtheEntityandItsEnvironment ISA320,MaterialityinPlanningandPerforminganAudit ISA330,TheAuditor'sResponsestoAssessedRisks ISA 402,AuditConsiderations Relating to an EntityUsing a Service Organization ISA450,EvaluationofMisstatementsIdentifiedduringtheAudit ISA500,AuditEvidence ISA501,AuditEvidence-SpecificConsiderationsforSelectedItems ISA505,ExternalConfirmations ISA510,InitialAuditEngagements-OpeningBalances ISA520,AnalyticalProcedures ISA530,AuditSampling ISA540,AuditingAccountingEstimates,IncludingFairValueAccounting Estimates,andRelatedDisclosures ISA550,RelatedParties ISA560,SubsequentEvents ISA570,GoingConcern ISA580,WrittenRepresentations ISA 600,SpecialConsiderations-AuditsofGroup FinancialStatements (IncludingtheWorkofComponentAuditors) ISA610,UsingtheWorkofInternalAuditors ISA620,UsingtheWorkofanAuditor'sExpert ISA700,ForminganOpinionandReportingonFinancialStatements ISA705,ModificationstotheOpinionintheIndependentAuditor'sReport ISA706,EmphasisofMatterParagraphsandOtherMatterParagraphsinthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 IndependentAuditor'sReport ISA710,ComparativeInformation-CorrespondingFiguresandComparative FinancialStatements ISA720,TheAuditor'sResponsibilitiesRelatingtoOtherInformationin DocumentsContainingAuditedFinancialStatements ISA800,SpecialConsiderations-AuditsofFinancialStatementsPreparedin AccordancewithSpecialPurposeFrameworks ISA805,SpecialConsiderations-AuditsofSingleFinancialStatementsand SpecificElements,AccountsorItemsofaFinancialStatement ISA810,EngagementstoReportonSummaryFinancialStatements InternationalStandardonQualityControl(ISQC)1,QualityControlsforFirms thatPerform Auditsand ReviewsofFinancialStatements,and Other AssuranceandRelatedServicesEngagements. Manyinstitutesinthisworldofferedtheappliedaccounting. Pleasenoteduetothegreatdemandforourprogrammesearlyapplications areassessedwhenreceivedanddealtwithpromptly.Thereforeitis advisabletomakeearlyapplicationsforanearlyresponse. Theprogrammeisofferedonaparttimebasisovertwoyearscommencing inSeptember.Itisdesignedforhonours(2.2orbetter)graduatesin accountingwithexemptionsfromProfessional1CPAIrelandexaminations lookingtopursueacareerasaqualifiedaccountantwithCPAIreland. Thosecommencingtheprogrammewithexemptionsfrom Professional1 CPAIrelandwill,onsuccessfullycompletingtheprogrammeandmeeting otherrequirements,beeligibleforexemptionfrom thefinalProfessional2 CPAIrelandexaminations. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 The programme affords candidates opportunities to study advanced modulesinaccountingandrelatedsubjectareaswhicharegroundedin theoryandappliedinpractice.Candidateswillalsodeveloptheskillsand competenciesrequiredtoundertakeindependentresearchinaccountingand relatedareas. Adistinctivefeatureoftheprogrammeisthatitofferscandidatesan opportunitytoengageinworkbasedlearningsimultaneouslywiththeir academicstudies. CourseContentAppliedAccounting AdvancedCorporateReporting (CPAProfessional2exam) Audit Practice and Assurance (CPA Professional 2 exam) Advanced Taxation (CPA Professional 2 exam) Strategy and Leadership (CPA Professional 2 exam) CorporateFinance (TUDublinMScAppliedAccounting) InformationSystems(TUDublinMScAppliedAccounting) Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Communications and Professional Development (DIT MSc Applied Accounting) AccountingResearchPractice(TUDublinMScAppliedAccounting) Research in Contemporary Issues in Accounting (DIT MSc Applied Accounting) WorkBasedLearning(TUDublinMScAppliedAccounting&CPAIreland) Timetable/Hours CandidateswillattendTUDublinononedayperweek(Friday)duringeach academicyearandworkinpracticeand/orindustryfortheotherfourdays (Monday–Thursday)ofeachweek. TheprogrammeinTU Dublinwillbetwoyearsoffourfifteenweek semesters(SemesterIandIIineachyear),consistingofthirteenweeksof lectures,andtwoweeksofexaminationsforeachSemester.Thisisinline withTUDublin’scurrentacademiccalendar. Candidateswillbeon fulltime workplacement foreachsubsequentweek (outsidesemesters)duringthefirsttwoyearsandfulltimeduringyearthree oftheworkplacement. Award Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 GraduateswillbeeligiblefortheawardofMScinAppliedAccountingfrom TUDublin. Graduateswillhaveonefurtheryearoftrainingafterwhichtheywillbe eligibletoapplytobemembersofCPAIreland,subjecttomeetingallCPA Irelandrequirements. EntryRequirements: Anhonoursbachelordegree(2.2orhigher)inanaccountingandfinance undergraduatedegreealongwithexemptionsfrom Professional1CPA Irelandsuiteofexams.AninternationalstudentmustalsohaveanIELTSof 6.5orabovetobeconsideredforentrytothismasters. Candidatesthatdonothavetheappropriateundergraduatedegreemaystill beconsideredforadmissiontothismastersunderexceptionalentryifthey havesecuredProfessional1CPAIrelandsuiteofexamsandappropriate workexperience. Theprogrammeisdesignedforaccountinggraduateslookingtopursuea careerasaCPAIrelandqualifiedaccountant. ForFurtherInformation Dr.RuthCasey AssistantHeadofSchoolofAccounting&Finance CollegeofBusinessirland. ApplyNow Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 KeyCourseInfo Thiscourseisdeliveredby:SchoolofAccounting&FinanceProgramme Code:DT9022(PT)QualificationAwarded:MScin(AppliedAccounting)Level 9Duration:PartTime-2yearsClosingDate:Thisprogrammeisnowclosed. StartDate:September2019Location:SchoolofAccountingandFinance. AppliedAccountingcoursesareanexcellentwaytodiversifyeducationand experiencewhilegainingprofessionalskillsforacareer,whetheryouare alreadyanaccountantneedingtobrush-uponyourskills,orinterestedina careerchange.Thereareaccountingcourseslocatedinseveralcountries andeachisspecifictoacertainsector.Requirementsforcoursesvary,but generally,prospectivestudents. ReadMore TorontoSchoolofManagement Toronto,Canada TorontoSchoolofManagementhasbeenawardedGoldLearningPartner statusbytheAssociationofCharteredCertifiedAccountants(ACCA),which hasover5,000 DegreeinAppliedAccounting ReadMore NorthIowaAreaCommunityCollege MasonCity,USA Areyouinterestedintransferringtoafour-yearcollegeoruniversityand Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 earningabachelor’sdegree?StudentsmaywishtoearnanAssociateofArts andapplytheirstudies...+ ReadMore forAppliedAccountant TecnológicodeMonterrey(EducaciónContinuaPresencial) MexicoCity,Mexico+3More Identifycostgeneratingareasandcostelementswhenproducinganitemor providingaservice,usingnew trendsincostmanagementandApplied Accountant. AppliedAccountingCourse ReadMore HarvardBusinessSchoolOnline Cambridge,USA Thiscoursewillteachyouthefundamentalsoffinancialaccounting.Starting withthebasicsofrecordingtransactionsasjournalentriesandpostingthem toTaccount. AssociationofCharteredCertifiedAccountants(ACCA) ReadMore SunwayUniversity ShahAlam,Malaysia Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Employersaroundtheworld,seekoutACCAmemberstoleadtheirbusiness tosustainablesuccess.KnowingthatACCAmembersarestrategicthinkers withhigh. AccountsPayableCourse(London) ReadMore Acudemy London,UnitedKingdom Thisstructuredtrainingprogram coversallthekeyareasofanAccounts Payablerole.Aprogrammedesignedinprovidingindividualswithanin-depth understandingofhowtomanage. AccountingandFinanceforManagers-Level2 ReadMore aboutApplied LondonBusinessTraining&Consulting London,UnitedKingdom ThisCFOseminarissuitablefor:Managerswhowishtoimprovetheir analyticalskillsanduseaccountingandfinancetoolsformanagerial advantage.Thosewhowishtounderstand. IntroductiontoHyperledgerBlockchainTechnologies ReadMore Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 edX Cambridge,USA Aprimertotheblockchain, ReadMore TecnológicodeMonterrey(EducaciónContinuaPresencial) Culiacán,Mexico Learnbasicaccountingtechniquesandfundamentalstoapplythem in makingdecisionsbasedonfinancialinformation,costaccountingand administrativeaccounting. Courses Full-time Part-time 40hours Spanish 23Mar2020 Campus ReadMore TecnológicodeMonterrey(EducaciónContinuaPresencial) MexicoCity,Mexico Accountantsandauditorswilllearntodevelopadministrativeandfiscal strategies,andidentifytaxevasion,avoidanceandsimulation.Comptrollers andexecutivesmayidenti...+ Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Courses Full-time Part-time 40hours Spanish 27Jan2020 Campus CORECourse ReadMore HarvardBusinessSchoolOnline Cambridge,USA TheCredentialofReadiness(CORe)isourprimeronthefundamentalsof businessthinking—athree-courseonlineprogramdesignedtoprepareyouto participatefullyinthebus...+ Courses Part-time 10weeks English 08Jan2020 31Dec2019 Online Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 CertifiedAccountingTechnicians(CAT) ReadMore SunwayUniversity ShahAlam,Malaysia TheCertifiedAccountingTechnician(CAT)isavocationalqualification designedbyACCAthatwillallowyoutosupporttheworkofprofessional accountants.Thefinal-level Courses Full-time English January2020 Campus CPAProgram ReadMore SunwayUniversity ShahAlam,Malaysia SunwayTESCentreforAcademicExcellence(CAE)isaRegisteredTuition ProviderfortheCPAPrograminMalaysia.SunwayTESCAEprovidestuition supporttostudentsunderstanding. Courses Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Full-time English January2020 Campus TheInstituteofCharteredAccountantsinEnglandandWales(ICAEW) ReadMore SunwayUniversity ShahAlam,Malaysia TheACAqualificationisregardedgloballyasoneoftheleadingbusinessand financequalifications,andisrecognizedandvaluedinpractice,industry, commerce. Courses Part-time 3years English January2020 Campus AdvancedFinancialAccounting ReadMore LondonBusinessTraining&Consulting Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 London,UnitedKingdom Uponcompletionofthisfinancialliteracytrainingcourse,youwillbeableto understand:thepurposeofaccounting;whynon-accountantsneedto understandaccounting ACADEMIC COURSES Browsethousandsofstudyprogramsfromaroundtheworld. Highereducationismorethanacollegedegree.ACADEMICCOURSES connectsstudentswitheducatorsprovidingcourses,preparatoryyears,short programs,certificates,diplomas,andmore.ACADEMICCOURSESispartof theKeystoneAcademicSolutionsfamilyofstudent-centeredwebsitesthat helpstudentsandhighereducationinstitutionsfindeachotheronline. Trustedbystudentssince2002,ACADEMICCOURSESisyourmultilingual gatewaytohigherandcontinuingeducationclosetohomeandaroundthe world. Sometopuniversityofferedtheprofessionaleducationinthefieldof Accountingandfinance.Studentgivetheprioritytothisinstitute. HitotsubashiUniversity Thefirstofthetopuniversitiesforaccountingandfinancetoimprovetheir positionis Japan’s HitotsubashiUniversity,anationaluniversitylocatedin Tokyofocusedonthesocialsciences. Hitotsubashidescribesthecurriculum ofitsFacultyofCommerceand Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Managementas“theappliedsocialscienceofbusinessandmarkets”,asits programs provide you with theoreticalknowledge in management, accounting,marketing and finance fields,providing you with the cosmopolitanoutlookneededforleadershiproleswithinJapanandbeyond. RMITUniversity Alsomovingintothetop100foraccountingandfinance, RMITUniversity is Australia’slargestuniversityanditmadebigimprovementsinitsscoresfor thevariousindicatorsusedtocompiletherankings. RMIT’saccountingprogramsarerigorous,developedwithindustryinputand designedtopreparestudentsfortheworkforce.Mostlytaughtatthe innovative Swanston Academic Building,RMIT’s BachelorofBusiness (Accountancy)degreeincludesglobalmobilityoptionstohelpyoufurther standoutonthejobmarket,suchasstudytoursandstudentexchange programs. UniversityofBristol Alsoclimbingtorankamongthe100topuniversitiesforaccountingand financethisyearistheUK’s UniversityofBristol,withimprovedscoresfor employerandacademicreputation.ItsSchoolofEconomics,Financeand Managementcantraceitsrootsbacktotheverybeginningsoftheuniversity itselfandnowteachesover1,200studentsatalllevels.Itfostersadynamic andchallengingeducationalenvironmentfromwhichyouwillgraduatewitha broadrangeofskillsandknowledge. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 UniversityofZurich Thefinalofthefourinstitutionstohave movedfrom 101-150to51-100in thisyear’saccountingandfinancerankingis Switzerland’s Universityof Zurich. Theuniversity’sDepartmentofBankingandFinance(DBF)hasabroad expertiseinbanking,corporatefinance,financialeconomicsandquantitative finance,withitsmaster’sdegreesinbankingandfinanceprovidingstudents withanin-depthinsightintotheworldofbanksandfinancialmarkets, benefiting from theuniversity’slocation in themajorfinancialcenter of Zurich. TheUniversityofMelbourne Moving onto universities which have made advances in the top 50, the UniversityofMelbourne hasclimbedfrom joint14th intothetop10for accountingthisyear,sharing10th placewithfellowAustralianinstitution The UniversityofNewSouthWales(UNSW). Melbourne’sDepartmentofAccountingincludesaCenterforAccountingand IndustryPartnerships(CAIP)whichiscommittedtobuildingandmaintaining lastingpartnershipswiththeaccountingandbusinesscommunitythrough researchprojects,guestlecturing,symposiaandotheractivities. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 UniversityofToronto Basedin Canada,the UniversityofToronto isalsoupfourplacesthisyearto nowberankedjoint24th foraccountingandfinance.Theuniversity’sJoseph L.RotmanSchoolofManagementoffersawiderangeofcoursesinbusiness, financeandcommerceatallstudylevelsandboastsoneofthemost internationalcommunitiesofanyleadingbusinessschool(withalmosthalf ofstudentscomingfromoutsideCanada). Youcanfurtherinternationalizeyourstudiesthroughglobalstudytours, consultingprojects,exchangeprogramsandmore. UniversitàCommercialeLuigiBocconi Upfrom 33rd tojoint29th thisyearis Italy’sUniversitàCommercialeLuigi Bocconi,knownsimplyas BocconiUniversity,havingimproveditsemployer reputationandH-indexscore. BocconioffersvariouscoursestaughtinEnglishinaccounting,financeand relatedsubjects,suchastheMScinAccounting,FinancialManagementand Control,whichaimstodevelopsolidtechnicalknowledgeandmethodologies foraccounting and finance careers,placing particularimportance on financialcommunicationprocesses,thedesignofmodernmanagement informationsystems,andtheuseoffinancialanalysismodelstosustain long-termstrategies. TheHongKongPolytechnicUniversity Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Nextinourlookatthemostimprovedtopuniversitiesforaccountingand financeis TheHongKongPolytechnicUniversity,whichmovedupfrom51- 100tonowberanked47th,withimprovedscoresforbothemployerand academicreputation. Theuniversity’sSchoolofAccountingandFinanceisthefirstofitskindin HongKongandoffersprogramswhichincorporaterecentfrontierresearch findings and professionalcompetency,taught by an international, interdisciplinaryfaculty. TsinghuaUniversity Upfivepositionsinthisyear’saccountingandfinanceranking, Tsinghua University is now ranked joint34th.The university’s business school, TsinghuaUniversitySchoolofEconomicsandManagement(SEM),has around3,000studentsandwasthefirstinstitutioninMainland China tohave itsdegreesaccreditedbyAACSBandEQUIS. As wellas giving you a firm grasp ofmodern accounting,SEM’s undergraduatemajorinaccountingprovidesyouwithbroadreal-world generalknowledge,MandarinandEnglishcommunicationskills,andthe abilitiestoinnovateandscrutinizeproblemsquantitatively. PekingUniversity Thisyear’smostimproveduniversityinthetop50oftheaccountingand financerankingisanotherChineseinstitution, PekingUniversity,upsix placestonowrankjoint24th intheworld.Pekinghasimproveditsscoresin Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 allfourindicatorsandreceivesaveryhighscoreforemployerreputation. AccountingandfinanceprogramsaretaughtatitsGuanghuaSchoolof Management,oneofAsia’smostprestigiousandcompetitivebusiness schools,whichrunsexchangeprogramswithatotalof96universitiesacross theworldintheUS,Canada,Europe. Thisyear’s10(technically11)topuniversitiesforaccountingandfinanceare: Top10UniversitiesforAccounting&FinanceintheWorld BasedontheQSWorldUniversityRankingsbySubject2018 Rank NameofInstitution Location HarvardUniversity UnitedStates MassachusettsInstituteofTechnology(MIT) US 3 StanfordUniversity US 4 UniversityofOxford UnitedKingdom LondonSchoolofEconomicsandPoliticalScience(LSE) Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 UK UniversityofPennsylvania US UniversityofChicago US UniversityofCambridge UK UniversityofCalifornia,Berkeley(UCB) US =10 TheUniversityofMelbourne Australia =10 TheUniversityofNewSouthWales(UNSW) Viewthefullrankingofthetopuniversitiesforaccounting subjectrankingsaccountingfinance AnaTheresaM,MDF&8otherssavedthis WrittenbySabrinaCollier TheformerAssistantEditorofTopUniversities.com, Sabrinawroteand edited articlestoguidestudents fromaroundtheworldonawiderangeoftopics. Shehasabachelor'sdegreeinEnglishLiteratureandCreativeWritingfrom Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 AberystwythUniversityandgrewupinStaffordshire,UK. ManyeducationinstitutesofferedtheprofessionalqualificationsinApplied Accounts. HongKongBaptistUniversity Universityrank#261(QS) HongKong,HongKong(SAR) TheAppliedAccountingandFinanceprogrammeatHongKongBaptist Universityemphasizesreal,practicalinternationalcases.Studentsacquirean in-depthunderstandingofandupdatedknowledgeinbothaccountingand finance. This AppliedAccountingandFinanceprogrammeatHongKongBaptist University integratesappliedknowledgeandskillsinaccountingandfinance totrainprofessionalswhowillbeathomeinbothfields. ProgrammeObjectives Toenhancestudents’understandingofthestate-of-the-artknowledgein accountingandfinance; Todevelopstudents’analytical,judgmental,andconceptualminds; Toequipstudentswiththesolidaccountingandfinanceknowledgeand practicalskillsneededformanagingtheirorganizations; Topreparestudentstoadvancefurtherintheirprofessionalcareers,orto continuetheirstudiesintherelevantfields,and Tofacilitatestudentstoprepareforrelevantprofessionalqualification examinations. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ProgrammeLearningGoals(LGs) Studentswillbeabletointegratecontemporaryaccountingknowledgeand skillstosolvereal-lifeaccountingissues. Studentswillbeabletoapplycontemporaryfinancetheoriesandskillsto tacklefinancialmatters. Studentswillbeabletocriticallyanalysedifferentaccountingandfinance casesaccordingtorationaldecisionmakingprocedures. Studentswillbeabletoexplainthekeyissuesrelatingtotheethicaland professionalresponsibilitiesoftheaccountingandfinanceprofessionunder achangingenvironment. Accreditation Thisisanaccreditedaccountancyandfinancemasterprogrammeunderthe Association ofChartered Certified Accountants(ACCA),theChartered Institute of Management Accountants (CIMA),the GRC Institute - Governance,Risk&Compliance(GRCI)andtheAssociationofInternational Accountants(AIA). Visittheprogrammewebsiteformore ManyuniversityinthisworldofferedTheprogrammeinAppliedAccouting AppliedAccountingandFinance Visitprogrammewebsite Recommendedforyou RelevantMastersinEurope MCF-CorporateFinance Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 SDABocconiSchoolofManagement Italy,Milano Pre-Master'sinBankingandFinance INTOLondonWorldEducationCentre UnitedKingdom,London Pre-Master's UniversityofStirling UnitedKingdom,Stirling DataAnalyticsandFinance ArdenUniversity UnitedKingdom,Coventry MasterofBusinessAdministration SDABocconiSchoolofManagement Italy,Milano InsuranceandRiskManagement Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 MIBTriesteSchoolofManagement Italy,Trieste Finance TheOpenUniversityUK UnitedKingdom,MiltonKeynes EMMS-ExecutiveMasterinMarketingandSales SDABocconiSchoolofManagement. Specific Characteristics of Accounting Information for Business Management JournalofEasternEuropeResearchinBusinessandEconomics AnnaLátečková1,ZuzanaBigasová2andVladimírBolek3 1,2DepartmentofAccounting,FacultyofEconomicsandManagement, SlovakUniversityofAgricultureinNitra,Nitra,SlovakRepublic 3DepartmentofInformationManagement,FacultyofBusinessManagement, UniversityofEconomicsinBratislava,Bratislava,SlovakRepublic Volume2017,ArticleID529707,JournalofEasternEuropeResearchin Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 BusinessandEconomics,10pages,DOI:10.5171/2017.529707 Receiveddate:6March2017; Accepteddate:31May2017; Published date:23December2017 Thesignificantpositionofappliedaccountingisitsabilitytorecordthe actualbusinessactivityand to evaluateachieved results.Accounting informationhasapragmaticuseatallstagesofthemanagementprocess. Accounting is a comprehensive information system that provides informationaboutaneconomicsituationofaenterprises.Itisveryimportant thatthisinformationmustbereliableforeveryfurtheruse. Enterprises collectandprocessinformationbyaccountingsoftware,byenterprise resourceplanning.Thesurveyisfocusedonagriculturalandfoodprocessing activitiesinenterprises.Thesubjectofthesurveyisinformationsystemand theaccountinginformationoftheseenterprises.Themostimportantisthe qualityofinformationanditsapplicationinbusinessmanagement.To assessthequalityofaccountinginformation,wefocusedontwomainareas: legislationandgovernance.Weappliedbasicscientificmethods:analysis, comparison,synthesisandalsomathematicalandgraphicalevaluationto processthedata.Thearticlehighlightstheimportanceofaccounting informationthatisthebasisforpragmaticmanagementanddecision- making. Accesstocorrectinformationattherighttimeiscrucialforevery decision.Thereareseveralkeyareasthatarecrucialfortoday'sbusinesses. Oneoftheseareasisalsotheaccountinginformationcontainedinthe accountingsystem.Thedataflowispresentedintheenterpriseinformation Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 system,rightintheaccountingsubsystem.Theresultofourresearchisthe presentationofthebasicfeaturesthatenableustoassessthequalityof accountinginformationinanenterprise. Thequalityofinformationisan importantaspectthatdirectlyaffectstheeconomicandfinancialsituationof anenterprise.Incorrect,unnecessaryanddelayedaccountinginformation leadstoincorrectlyquantifiedprofitorlossandmismanagement.Assessing thequalityofaccountinginformationisthereforeveryimportant Fromthestartaccountinghasbeenconsideredasanimportantinformation source.Thereasonforitsformationwastheneedtomonitorbusiness relationships and assets.PaciolliLuca was the firstwho compiled comprehensivedocumentationabouttheprinciplesofdouble-entrybook- keepinginthe15thcentury.Thentherewasanincreaseintherequirement forthe availability and accuracy ofthe information necessary for managementanddecisionmaking. Informationisabasicworkingtoolformanagers.Iftheenterprisedoesnot haveaccurate,timely,relevantandsufficientinformation,managementloses itswaymeaning,thecompanycannotfulfillitsobjectives,targetsand declines.Thelargestsourceofinformationisaccounting(Cilíkováand Lapková,2008).Themaintaskofaccountingistoprovidetheimportant informationneededtoassessthefinancialsituationofthecompany,give informationaboutprofitandlossandtosetupthecompany’sabilityto generateprofitandcash(Šlosárová,2011). Thecurrentoutputandalsotheprimaryimportanceofaccountingisreliable Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 informationaboutthefinancialsituationofthecompanyanditsprofitforthe accountingperiod.Basedonthisinformation,theownersofthecompanyare abletodeterminehowsuccesfullleadersareintheirpositions,howthe companyevaluatesitscapital,andifthecompanyhaslong-term stability. Mostimportantistheprognosisforthefinancialsituation,whichindicates theireconomicdevelopmentforthefuture.Accountingisbasedonseveral assumptions,principlesandqualityrequirementswhicharerequired,inthe processofaccounting,becauseofthequalityandpredictivevalueof accountingdata(Strouhal,2014). Anyinformationshouldbeassessedinthreelevels: asemantic(content)level–intermsofsensorycontentandthecorrect interpretationofinformation.Thecontentofinformationinrelationtoreality, whererealityispatternand informationisreflective.Itisaboutthe characteristicsthatreflectthequalityofcontentinrelationtothedesign. apragmatic(user)level–intermsofachievingitsobjectives.Thisisthe usefulnessoftheinformationinrelationtotheobjectivesforwhichitwas collectedandwillbeused. asyntaxlevel–from thepointofview ofmaterial,energy,character, technologicalandalsofromthepointofinformationtransfer.Itisawayof expressinginformation.Accordingly,wecanspeakaboutthepragmatic, semanticandsyntacticcharacteristicsofinformation(KoklesandRomanova, 2014). Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Accountinginformationshouldsatisfyqualitycharacteristicstobeusefulto users.Themostimportantqualitativecharacteristicsoffinancialinformation include:relevance,objectivity,timelinessandclarity(Soukupová,2008). Usersofaccountinginformationhavedifferentrequirements.Amanagement entity,asonegroupofusers,needsmuchmorespecificanddetailed informationthanotherusers.Financialinformationwhichprovidesanoverall viewofthefinancialpositionissufficientforexternalusers.Accountingcan providethesedifferentrequirementsforfinancialinformationfrom users onlyasanaccountinginformationsystem.(Škorecová,2010). Many authors consideraccounting as the information system.The accounting information system summarizes the financialdata ofthe enterpriseandorganizesthemintousefulreports.FiľaandRepovský(2008) defineinformationsystem asasetofattributesandtheirproperties, functionsandmutualinteractions,resultinginthetransformationofinput dataintofinalinformationwithhighexplanatorypowercreatedinfavourof its users.The main tasks ofan information system are acquiring, classification,processinganddisseminationofnecessaryinformation–with propertiming,amountand quality.Závodný(2006)finds information systemsimportantnotonlyintheacquiringandprocessingofinformation butalsoinprovidinginformationonwhentheycouldbeuseful.Thus,the modernISisnotapassivetoolwaitingforapieceofinformationtobe required;itanalyses the on-going situations and sends messages automaticallyoractivelyaffects business processes and information systems.Theauthorfurtheremphasisesthefactthatinformationsystemis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 asub-system ofmanagementandhigh-qualityinformationisinevitableto reachhigh-qualitymanagement.Incooperationwithsupportivemethods, suchinformationobjectivisesthedecisionsofmanagerswhilethedecisions andrelatedresponsibilitiesareperformedbymanagerswhodecidehowto dealwiththeinformation. Highqualityaccountinginformationhasakeyimportanceforalargenumber ofusers,asitinfluencesthequalityofdecisionmaking.Providinghigh qualityandusefulaccountinginformationisaprerequisitefortheefficiency oftheenterprise.Usefulnessisdeterminedbythequalityoftheaccounting information.Measuringandassessingqualityandusefulnessofaccounting informationisofparticularimportance,astheseactivitieswillnotonly enhancethequalityofeconomicdecision-makingfortheusers,butalsothe overallmarketefficiencyofthebusiness(Nicolaou,2000;Tsoncheva,2014). Applied Accounting provides information fora wide range ofusers. Managersmakeseriousdecisionsbasedonthisinformation.Therefore,itis veryimportantthatmanagerscanfullyrelyonaccountinginformation.We dealwiththeseissuesinourresearch.Theresearchaimofthearticleisto assessthequalityofaccountinginformationanditsapplicationinbusiness management.Theobjectoftheinvestigationistheenterpriseinformation system inselectedcompanieswithafocusonaccounting.Thesubjectof researchisaccountinginformation. Thedatanecessarytosolvetasks,relatedtotheassessmentofthequality ofaccountinginformation,havebeendrawnfrom availableliterarysources Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 and from research carried outin selected companies and software companies (we focused on information systems for double-entry bookkeeping).Theunderlyingdatawereobtainedbyobservation,direct interviewsandquestionnaires.Thequestionnaireconsistedoftwotypesof questions(openandclosed).Closedquestionsprovidedrespondentswitha fixednumberofoptionsfrom whichtherespondentcouldchooseoneor moreanswers.Thesecondgroupconsistedofopen-endedquestions,in whichrespondentswereaskedtoprovidetheirownanswer.Theresulting questionnaireswerescreened.Incorrectorpartialanswersinquestionnaires werenotevaluated. Theobjectoftheinvestigationwastheinformationsystem inselected companieswhichoperateintheagricultureandfoodarea.Thesubjectofthe researchwasaccountinginformation,themainfocuswasonthequalitative aspectsoftheinformationanditsapplicationinbusinessmanagement.We focusedontwomainareas:legislationandmanagementtoassessthe qualityofaccountinginformation. Weappliedbasicscientificmethodsofanalysis,comparison,synthesisand also mathematicaland graphicalevaluation during the process of consideringtheunderlyingdata.Weappliedbasicscientificmethodsduring theprocessing oftheunderlying data.An analysisofthelegislative documentsthatwefound,thecriteriathataccountinginformationhasto complywith.Wedeterminedthesignificanceoftheindividualcriteriafor managersbytheanalysisofthedataobtainedfromthequestionnaires.By comparison and synthesis,we identified some importantcriteria for assessingthequalityofaccountinginformationfromtheaspectofbusiness Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 management.Wealsoappliedmathematicalmethodsandgraphicaldisplays whileweevaluatedthequestionnairedata. Results Anenterpriseinformationsystem ingeneralcanbedefinedasasetof activitiesthatprovideforthecollection,transfer,process,storageand distributionofinformationtomeettheneedsofmanagementanddecision- making (Kokles,Romanová and Hamranová,2015).The enterprise informationsystem(EIS)inallthecompaniesinvestigatedis implemented withsoftware,whichconsistsofindividualsubsystems.Eachsubsystemis focusedonarelativelyindependentareaofbusinessactivity.Forexample recordingandprocessingofdocumentsforfixedassets,inventory,cash, bank transactions, receivables, payables, payroll and personnel administration,productionandsoon. Thecompaniesinvestigatedhavedifferencesinthenumberandalso structureofthesubsystems.Butitisonesubsystem –theaccounting subsystem,whichiscommonforallenterprises.Thisisanintegrating elementofthewholeEIS.Theaccountingsubsystemcentralizesinformation anddatafromothersubsystems,itenablestheregistrationof externaland internaldocumentswhicharenotrecordedinothersubsystems.The Accounting Subsystem enables registered data to be processed and provided,intheform ofoutputreports,orassupportinginformationfor furtheranalysis.Theseprocesseddataarepassedtomanagersatvarious Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 levelsofmanagement.Theflowofaccountingdataforprocessinginthe organisationisrepresentedinorganization. Recordedandprocessedaccountingdataintheenterpriseinformation system are provided forinternaland externalusers.The qualityof informationismostimportantinbothcases,becauserelevantdecisionsare madebasedonit.Managersusethem foroperational,tacticalandeven strategicmanagement.Externalentities,suchasbusinesspartnerswill decidetocooperatewithcompaniesbasedonthisinformation. Theyare alsoimportantforgovernmentauthoritiesmainlyforthecollectionoftaxes etc. Onthebasisofourresearch,weconsideredthemainaspects(areas)forthe assessmentofthequalityofaccountinginformation.Basedonthat,we determinedthecharacteristics(requirements)thatmustbefufilledto providehighqualityaccountinginformation.Wefocusedontwomainareas: legislationandmanagement. LegislativeArea Basedonthelegislativeregulations,wefocusedonthelawsinforceinthe SlovakRepublicandtheinternationallyrecognizedprinciplesofIFRSandUS GAAP.In2010,theInternationalAccountingStandardsBoard(IASB)updated the document“The ConceptualFramework forFinancialReporting”. InternationalAccountingStandardsBoardhasasignificanteffectonthe developmentofarangeofInternationalFinancialReportingStandardsIFRS Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 withanimpactonEUlegislation.TheCouncil’sgoalistocreateasingleset ofhighqualityandgloballyapplicableaccountingstandardsandtohelp harmonizenationalstandardswiththeinternationalIAS/IFRS.In2015,the IASBpublishedanExposureDraft,whichproposesanamendmenttoits conceptualframework.Theconceptualframeworkdescribestheconceptof general purpose financial reporting. They stated the qualitative characteristicsofaccounting(financial)informationasPrudence,prudence Caution, Asymmetric Prudence, substance over form, reliability, understandabilityandthedegreeofcomplexity(InternationalAccounting StandardsBoard information,2016). IntheSlovakRepublic,thereisan applicableActoftheNationalCouncilno 431/2002Coll.onAccounting(MinistryofFinanceoftheSlovakRepublic, 2016),whichwasamendedseveraltimes.CurrentSlovaklegislationtakes intoregardtherequirementsofthedirectiveoftheEuropeanUnionandalso internationalaccountingstandards.Slovakiasupportstheeffortsofthe internationalcommunitytoharmonizeaccounting,theessenceofwhichis thealignmentofaccountingpolicies,proceduresandreportingofindividual countriestoensurecomparabilityanduserfriendlinessofinformationin eachcountry. Basedontheanalysis,wecanconcludethatthebasicrequirementsfor accountinginformationarebasedonaccountinglaw,underwhichitis mandatoryto keep correct,complete,and comprehensibleaccounting information.Theaboverequirementsindicatethataccountingisconducted: Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 correctlywhenitmeetstherequirementsoftheActandotherspecial regulations, completelyifallaccountingtransactionsintheaccountingperiodcanbe identifiedinthebooks,thatfora particularaccountingperiodthereare individualorconsolidatedfinancialstatements,thereisanAnnualReport, publisheddata,storeddocumentsintheRegisterandallthesearenotifiedas accountingrecords, demonstrably,ifallaccountingrecordsareverifiableandinventoriesare taken, clearlyifitallowsthereliableidentificationofthecontentsoftransactions followingtheaccountingpoliciesusedandfollowingtheformatofthe recordsused. Thequalityofaccountinginformation;itisimportanttocomplywiththese requirements.Thequalitycanbeasessedbasedonwhethertheymeetthe followingcharacteristics: Accountinginformationthatconcernsthesubjectoftheaccountingorthe methodofitsmanagement, Financialinformationisbasedontheaccountingrecords.Theaccounting recordsmeanaccountingdocuments,records,books,depreciation,inventory lists,chartofaccounts,financialstatements,annualreport. Theinitialaccountinginformationmustberecordedondocumentswhose contentisstrictlylimitedandmustinclude: verbalandnumericalmarksoftheaccountingdocument, thecontentsofaccountingtransactionandtheidentificationofparticipants, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 acashsumorunitpriceandquantity, thedateofissueoftheaccountingdocument, theaccountingtransactiondate,ifnotthesameasthedateofcompletion, thesignatureofthepersonresponsiblefortheaccountingtransactionand thesignatureofthepersonresponsiblefortheentry, markingtheaccountsonwhichthetransactionshallbeenteredinthe accountingentity,keepingaccountsinthedouble-entryaccounting,ifitdoes notresultfromthesoftware. Accountinginformationcantaketheformofwrittenortechnicalaccounting records.Thewrittenformismadebyhand,typed,printingandreprographic equipmentorcomputerprinter,thecontentofwhichcanbereadina natural way.Thetechnicalformismadeusingelectronic,opticaloranyotherwayas written.Inthisprocess,thetransferabilityoftherecordmustbeensuredin writtenform,itmeansthatifanentitytakesaccountingrecordsina technicalform,itisrequiredtohavesuchequipment,carriersanddevices thatenabletheconversionoftheaccountingrecordsintoa naturalform whichmaybereadbyaperson.Mostoftenanentitytakesaccounting documentsinpracticethroughcomputerprocessing.UndertheAccounting Act,anentitymayconvertaccountingrecordsfrom oneform intoanother, butmustensurethatthecontentoftheaccountingrecordinthenewformis thesameasthataccountingrecordinoriginalform. Accounting information must be verifiable. Accounting information representsaneconomicreality.Foraverifiableaccountingrecordwe considerthattheaccountingrecordmustinclude: directlydemonstratedfacts, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 demostratethefactsindirectlythroughothererifiableaccountingrecords, duringthetransferoftheaccountingrecordthroughtheinformationsystem, theentitymustensurethatthetransferisfreefrom misuse,damage, destruction,unauthorized interference and unauthorized access.The accountingrecordtobetransferredthroughaninformationsystemoutside theentitymustbeconfirmedbyasignature. Thefinancialinformationmustbecredible.Credibilityisgivenbythe accountingrecordsandthestrictrulesforpossiblecorrection(repair).Ifan entitydeterminesthatanaccountingrecordisincomplete,inconclusive,or incomprehensible,itisobligedtorepairitwithoutdelay.Repairshallbedone suchthatitclearlyidentifiesthepersonwhocarriedoutthecorrection,the dayofthecorrection,andthedateoftheaccountingrecordshallberecorded withsuchprecisionthatuncertaintyinthedeterminationofthetimedoesnot giverisetouncertaintyinthedeterminationofthetransaction.Correctionof anaccountingrecordmustnotleadto incompleteness,unverifiability, inaccuracy,incomprehensibilityorlackoftransparencyinaccounting, Accountingentriesinthebooksmustbeunderstandable,transparentand durable: a clearentrymeansanentrywhichcanreliablyandunambiguouslyidentify thecontentsofatransaction, transparentrecordspresentanopportunityfortransparentorientationinthe accountingentries, entriesmustbemadeinamannerthatensurespermanenceandregardless ofthetypeoftreatment,itmeans,whethertheaccountsarekeptbyhandor usingsoftware,theentitymustbeabletoprovidepermanencethroughout Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 processingandsafekeeping.Theperiodofretentionforindividualaccounts arespecifiedintheaccountinglaw,suchasfinancialstatements,annual reportsandauditor’sreportsastenyearsfollowingtheyeartowhichthey relate. BusinessManagement Datafromfinancialstatementsareanirreplaceablesourceofinformationfor managers.Continuousknowledgeoftheenterprise’sfinancialsituation basedontheanalysisoffinancialstatementsenablesmanagerstomakethe rightdecisionsinobtainingfinancialresources,determinationofoptimal financialstructure,allocationofinvestedfunds,provisionofbusinessloans, thechoiceofdividendpolicy,profitdistributionandsoon. Thefinancialstatementsarethebasisformakingfinancialanalyses, enablingthedeterminationoffactorssuchastheintensityandaffectof the economicandfinancialsituation.Therearetwopossiblemethodsof analysis: Ananalysisbasedontheexperienceoftheexecutives,whichiscalled fundamentalanalysis.Thisanalysisisbasedonanextensiveknowledgeof theinterrelationsbetweeneconomicandnon-economicfeaturesonthe basisofsubjectiveestimates.Thiskindofanalysisisbasedontheamount ofinformation,butitprocessesinformationusingthequalitativeaspectsand derivesconclusionsgenerallywithouttheuseofalgorithms, Analysesthatusemathematicalandstatisticalmethodsthatleadtothe quantitative processing of accounting data and the subsequent Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 interpretationofeconomicresults.Thisisatechnicalanalysis,thebasic analysis techniquesincludecomparisonofselectedvaluesinabsoluteor percentageterms,thecalculationofbasicratiosofliquidity,profitability, stabilityandanalysisofthespeedoftheturnoveroffunds. Inthisarea,weinvestigatedtherequirementsofmanagersforfinancial information.Basedonthe processedquestionnaireswefoundthat95%of managersusethedatafromthefinancialstatements.Thegraphevaluation ofrespondents’answerstoquestionsconcerningtheuseofinformation fromaccountingduringtheyearandfromthefinancialstatementsattheend oftheyear. V1 managersusetheinformationfrom theaccountingbooks(throughout theyear)andinformationfromfinancialstatements V2 managersuseaccountinginformationintheform ofreports(monthly) andinformationfromfinancial statements V3 managersonlyuseinformationfromthefinancialstatements V4 managersdonotusefinancialinformation Themostimportantcharacteristicsofaccountinginformationformanagers were identified as: veracity,fidelity display properties,usefulness, significance,clarity,comparability,reliability,transparencyandaccessibility. Inthenextsectionwepresentcontentdefinitionsunderwhichitispossible Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 toassessthequalityofthefollowingcharacteristics: Veracity,accountinginformationwillbetrueifyouobserveaccounting principlesandmethodsthatleadtoafairpresentationofthefinancial statements, Fairviewoffacts.Thereportistrueifthecontentoffinancialstatement correspondstorealityandisinaccordancewithappropriateaccounting principlesandaccountingmethods; Usefulness,itmeanstheinformationprovidestherequiredbenefitstothe user, Significance,theinformationisconsideredsignificantifitsomissionfrom thefinancialstatementsoramisstatementinthefinancialstatementscould influencethejudgmentordecisionofauser, Clarity,informationiseasytounderstandifyouareabletoreliablyand unambiguouslyidentifythecontentsoftransactionsandinconnectionwith theappliedaccountingprinciples,methodsandformsofaccountingrecords, Comparability,theinformationiscomparableiftheentityusesoverone accountingperiodthesameaccountingpoliciesandprinciples, Reliability,informationisreliableifitgivesatrueandfairviewofthefacts whicharesubjecttoaccounting,informationiscompleteandtimely, Transparency,managersrequirecurrentreportsandpresentationswhichare accessibleinthesimplestpossibleway, Accessibility,accounting informationshould bemadeavailableatthe requiredlocationandtimesothattheycanbethebasisofappropriate decisionmakinginrealtime.Thequestionofavailabilityofinformationis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ensurednowadaysthroughinformationtechnology(thecurrenttrendisfor solutionsintheformofcloudcomputing). Allthe presented characteristicssignificantlyinfluencethequalityof accountinginformation.Basedontheirdefinition,itispossibletoassessthe qualityofinformationinanenterprisebythecomparisonoftherealstateof accountingintheenterpriseandthefeaturesthatshouldmeetinthe accountinginformationfromtheviewpointoftwomainareas:legislationand regulation,analyzedinourresearchandpresentedinthisarticles Accountingprovidesinformationthathelpscompaniesassesstheoverall levelofenterprisefinancialmanagement,notonlyintermsofthepast,but alsotheassessmentoftheabilityoftheenterprisemanagemententrusted tosecureresourcesforthefuture.Formanagers,financialinformation becomesavaluablesourceoftimelyandobjectivetermswithwhichitis possibletocarryoutfairdecisions.However,ifthesedecisionsaretoleadto asuccessfuloutcome,thereisaneedforqualityaccountinginformation. Inourresearchactivities,weconsideredtheissueofqualityintwoareas, legislativeandbusinessmanagement. Thelegislativeareashowsthecurrentapplicablelawsatthenationallevel andalsowithregardtotheharmonizationofaccounting.Inthearticle,we presentedthebasiccharacteristicsuponwhichitispossibletoassessthe qualityofaccountinginformation. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Based ontheanalysisoftheaccounting situationintheresearched enterprises,we considered accounting information in regards to the AccountingAct(comparisonofthecharacteristics,whicharespecifiedin thisarticleinpartI,thelegislativearea).Wefounda highqualityof informationinallenterprises(legislativerequirementshavebeenmet). Sometimesthiskindofassessmentishardforthemanagerinlightofthe frequentchangesinlegislativeregulations.Therefore,werecommendthe useoftheservicesofauditorsnotonlytoverifythefinancialstatementsat theendoftheyear,butalsothroughouttheyear.Weseetheauditfunction, particularlythattheauditorexpressesaqualifiedindependentopiniononthe reliabilityofaccountinginformationandthesubstantiveaccuracyoffinancial statements.Ofcourse,theresponsibleentitymustconsideraccuracyofthe accounting,thereforemanagersshouldhavesomebasicknowledgewith whichtheythemselvescanassesstheaccuracyoftheaccountsonthe legislativeside. Theareaofbusinessmanagementisdemandingofsupportinformation. Todayitiscommonplacetohaveanautomatedenterpriseinformation system.Animportantpartoftheaccountingsubsystem.Itisthereforevery importantthattheaccountinginformationmeetsthedemandsofmanagers. Themajorityofmanagerssurveyedincompanies(65%)useinformation from theaccountingsystem intheform ofmonthlyreportsandfinancial statements.Thefinancialstatementsgiveatrueandfairviewoftheassets andliabilities,profitandfinancialpositionandprovidedatafortheresultsof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 financialanalysiswhichallowsmanagerstoanalyzetheselectedperiod,to assessthecurrenteconomicsituationoftheenterprise,recognizecritical situationsandavoidthem,setoutafinancialstrategyoftheenterprise.An assessmentofthequalityofaccountinginformationisthereforevery importantformanagers.Basedonourresearch,wecanconcludethat managersuseaccountinginformationinbusinessmanagementandthe qualityofthisinformationisveryimportant.Toassessthequalityof accounting information,we selected and defined the mostimportant requirementsandcharacteristicsbaseduponwhichitispossibleforeach enterprisetoassesstheirquality. Theissueofthequalityofinformationisverylargeandchallengingarea.The articlepresentsapartofourresearchworkthatfocusesontheareaof accountinganditspracticaluseformanagers.Theresultofourresearchis thebasiccharacteristicsuponwhichitispossibletoassessthequalityof accountinginformationintheenterprise. References Cilíková,O.andLapková,M.(2008).Managementaccounting.MatejBel University,FacultyofEconomicsincollaborationwithOZEconomics,Banská Bystrica. Fiľa,M.andRepovský,A.(2008).Businessinformationsystemsandtheir Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 deficiencies in the agro-business environment (in Slovak).In:4th InternationalBataConferenceforPhDStudentsandYoungScientists.Zlín, TomasBataUniversityinZlín.(4),2008. Internationalaccountingstandardsboard.(2016).ConceptualFrameworkfor Financial Reporting. [Online], [Retrieved February 15, 2017], http://www.ifrs.org/About-us/IASB/Pages/Home.aspx Kokles,M.andRomanová,(2014).Informatics.Sprint2,Bratislava. Kokles,M.,Romanová,A.andHamranová,A.(2015).Informationsystemsin thepost-transitionperiodinenterprisesinSlovakia.JournalofGlobal InformationTechnologyManagement,18(2),110-126. GoogleScholar MinistryoffinanceoftheSlovakrepublic,(2016).Actno.431/2002Coll.on Accounting. [Online], [Retrieved February 10, 2017], http://www.finance.gov.sk/Default.aspx?CatID=4833 Nicolaou,A.I.(2000).Acontingencymodelofperceivedeffectivenessin accountinginformationsystems:Organizationalcoordinationandcontrol effects.InternationalJournalofAccountingInformationSystems,1(2),91- Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Soukupová,B.etal.(2008).Financialmanagementaccounting.Súvaha, Bratislava. Strouhal,J.etal.(2014).Accounting.BizBooks,Brno. Škorecová,E.(2010).Costaccounting.SlovakuniversityofAgriculturein Nitra,Nitra. Šlosárová,A.(2011).Accounting.IuraEdition,Bratislava. Tsoncheva,(2014).Measuringandassessingthequalityandusefulnessof accountinfinformation.IZVESTIAJournalofUniversityofEconomics,(1),52- GoogleScholar Závodný,P.(2006).InformationSystemsProjectManagement(inSlovak). Thetheoryofappliedaccountinghas,therefore,developedtheconceptofa "trueandfairview".Thetrueandfairview isappliedinensuringand assessingwhetheraccountsdoindeedportrayaccuratelythebusiness' activities. Tosupporttheapplicationofthe"trueandfairview",accountinghasadopted certainconceptsandconventionswhichhelptoensurethataccounting Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 informationispresentedaccuratelyandconsistently. AppliedAccountingConventions The mostcommonly encountered convention is the "historicalcost convention".Thisrequirestransactionstoberecordedatthepricerulingat thetime,andforassetstobevaluedattheiroriginalcost. Underthe"historicalcostconvention",therefore,noaccountistakenof changingpricesintheeconomy. Theotherconventionsyouwillencounterinasetofaccountscanbe summarisedasfollows: Monetarymeasurement Accountantsdonotaccountforitemsunlesstheycanbequantifiedin monetaryterms.Itemsthatarenotaccountedfor(unlesssomeoneis preparedtopaysomethingforthem)includethingslikeworkforceskill, morale,marketleadership,brandrecognition,qualityofmanagementetc. SeparateEntity Thisconventionseekstoensurethatprivatetransactionsandmatters relatingtotheownersofabusinessaresegregatedfromtransactionsthat relatetothebusiness. Realisation Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Withthisconvention,accountsrecognisetransactions(andanyprofits arisingfromthem)atthepointofsaleortransferoflegalownership-rather thanjustwhencashactuallychangeshands.Forexample,acompanythat makesasaletoacustomercanrecognisethatsalewhenthetransactionis legal-atthepointofcontract.Theactualpaymentduefromthecustomer maynotariseuntilseveralweeks(ormonths)later-ifthecustomerhas beengrantedsomecreditterms. Materiality Animportantconvention.Aswecanseefromtheapplicationofaccounting standardsandaccountingpolicies,thepreparationofaccountsinvolvesa high degree ofjudgement.Where decisions are required aboutthe appropriatenessofaparticularaccountingjudgement,the"materiality" conventionsuggeststhatthisshouldonlybeanissueifthejudgementis "significant"or"material"toauseroftheaccounts.Theconceptof "materiality"isanimportantissueforauditorsoffinancialaccounts. AccountingConcepts Fourimportantaccountingconceptsunderpinthepreparationofanysetof accounts: GoingConcern Accountantsassume,unlessthereisevidencetothecontrary,thata companyisnotgoingbroke.Thishasimportantimplicationsforthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 valuationofassetsandliabilities. Consistency Transactionsandvaluationmethodsaretreatedthesamewayfromyearto year,orperiodtoperiod.Usersofaccountscan,therefore,makemore meaningfulcomparisonsoffinancialperformancefromyeartoyear.Where accountingpoliciesarechanged,companiesarerequiredtodisclosethis factandexplaintheimpactofanychange. Prudence Profitsarenotrecogniseduntilasalehasbeencompleted.Inaddition,a cautiousviewistakenforfutureproblemsandcostsofthebusiness(theare "providedfor"intheaccounts"assoonastheirisareasonablechancethat suchcostswillbeincurredinthefuture. Matching(or"Accruals") Income should be properly"matched"with the expensesofa given accountingperiod. KeyCharacteristicsofAppliedAccountingInformation Thereisgeneralagreementthat,beforeitcanberegardedasusefulin satisfyingtheneedsofvarioususergroups,accountinginformationshould satisfythefollowingcriteria: Understandability Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Thisimpliestheexpression,withclarity,ofaccountinginformationinsucha waythatitwillbeunderstandabletousers-whoaregenerallyassumedto haveareasonableknowledgeofbusinessandeconomicactivities Relevance Thisimpliesthat,tobeuseful,accountinginformationmustassistauserto form,confirm ormaybereviseaview-usuallyinthecontextofmakinga decision(e.g.shouldIinvest,shouldIlendmoneytothisbusiness?ShouldI workforthisbusiness?) Consistency Thisimpliesconsistenttreatmentofsimilaritemsandapplicationof accountingpolicies Comparability Thisimpliestheabilityforuserstobeabletocomparesimilarcompaniesin thesameindustrygroupandtomakecomparisonsofperformanceovertime. Muchoftheworkthatgoesintosettingaccountingstandardsisbased aroundtheneedforcomparability. Reliability Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Thisimpliesthattheaccountinginformationthatispresentedistruthful, accurate,complete(nothingsignificantmissedout)andcapableofbeing verified(e.g.byapotentialinvestor). Objectivity Thisimpliesthataccountinginformationispreparedandreportedina "neutral"way.Inotherwords,itisnotbiasedtowardsaparticularusergroup orvested. AppliedAccountingdepartmentofanygivencompanyplaysanimportant roleinmanagingmoney,gatheringpaymentsandcollectingreceivables, payingbillsontimeandensuringthecompanykeepsapositivenetworth value.Accountantsoftensetgoalsandobjectivesfortheentiredepartment toensurethebusinessperformsthebestpossibleaccountingpracticesat anygiventime.Theseobjectivesandgoalsmaydifferforeachgiven company ManagesTimelyPayroll Theaccountingdepartmentisresponsibleformanagingandupdatingall payrollinformationforexistingemployeesinagivenbusiness.Oneobjective istoprovideaccuratepayrollinformationandpaymentstoemployees. Employeeearningsmustbetax-deductedbeforebeingissuedtotheworkers inquestion.Inaddition,theaccountingdepartmentmusthavethegoalof sendingoutthesepaymentsinatimelymannerdespiteotherprojectsor deadlinesathand. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 KeepsTrackofAllAccountsReceivable Accountsreceivablesdescribetheaccountsforcustomerswhoowethe company money.Customers buying products and companies buying continuousservicesfrom thegivenbusinessfallintothiscategory.One objectiveforallaccountantsworkingintheaccountingdepartmentisto followuponalloutstandingreceivables,meaningcontactingthebuyersto seewhenthepaymentswillbemade.Atthetimeofsale,aninvoiceisissued withapaymentdate,butbusycompaniesorindividualsmayrequirean additionalnotice,whichisacommongoalforanaccountingdepartmentin keepingthecompany’sfinancesbalanced. AddressesBudgetChanges Boardmembersandexecutivesoftenhavemeetingssurroundingtheissues ofincreasingprofitswithoutharmingthequalityofproduction.Ifbudgetary changesneedtobemade,theaccountingmanageroftenoffershisinputon thechanges,asheknowshowthecompanystandsfinancially.Oneobjective istoofferchangesandsolutionsthatkeepthecompany’snetworth balancedandensuresthebudgethasapositiveprofitfigureeachmonth despitethechangesmade. ContributestoFinancialReporting Theaccountingdepartmentkeepsupdatedentriesofcompanyincomeand outgoandprovidesthatinformationasthebasisofpreparingthecompany's quarterlyandannualfinancialstatements.Thedepartmentassuresthat Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 financialreportingadherestoaccountingstandards. ProvidesCustomerService Sinceaccountingrepresentativesoftencontactaccountsreceivablesto collectpayments,acommongoalistoprovidecustomerservicesand information whenever possible.Common department goals include answeringinquiriesoremailswithin24hours,payinginvoicestothe companywithin10businessdaysofreceipt,addressanysurchargesmade tocustomerswhomissedapaymentdeadline,andofferinformation regardingcurrentinvoices. References(2) AccountingTools:Accountingdepartmentresponsibilities Univ.ofMinnesota:TheRoleofAccounting AbouttheAuthor BasedinToronto,MaryJanehasbeenwritingforonlinemagazinesand databasessince2002.HerarticleshaveappearedontheSimon&Schuster websiteandshereceivedaneditor'schoiceawardin2009.Sheholdsa MasterofArtsinpsychologyoflanguageusefrom theUniversityof Copenhagen. ObjectivesofAppliedAccounting Objectives ofaccounting in any business are;systematically record transactions,sortand analyzing them,prepare financialstatements, assessingthefinancialposition,andaidindecisionmakingwithfinancial dataandinformationaboutthebusiness. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ThemainobjectofAppliedAccountingistoascertaintheresultsofthe financialtransactionsofabusinessconcern. ObjectivesofAccounting Wehaveidentified13objectivesthataccountingserves. 1.Identificationandrecordingoftransactions Theprimaryobjectofaccountingistoidentifythefinancialtransactionsand torecordthesesystematicallyinthebooksofaccounts.Asaresult,thetrue natureofeachandeverytransactionisknownwithoutmuchexerciseof memory. Withthisendinview,thetransactionsareprimarilyrecordedingeneraland inaspecialjournalandlateronpermanentlyvariousaccountsarekeptinthe ledger. 2.Ascertainmentofresults Everybusinessconcernisinterestedtoknowitsoperatingresultsattheend ofaparticularperiod. Theamountofprofitorlossforaparticularperiodofabusinessconcerncan beascertainedbypreparinganincomestatementwiththehelpofledger accountbalancesofrevenuenature. Surplusordeficitofrevenueforaparticularperiodofanon-tradingconcern Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 canalsobeascertainedbypreparingincomeandexpenditureaccountor statement. 3.Ascertainmentoffinancialaffairs Ascertainmentofdebts-liabilities,property,andassetsi.e.totalfinancial affairsofanorganizationataparticulardateisanotherimportantobjectof Accounting. Financialaffairsofconcernataparticulardatecanbeascertainedby preparingabalancesheet. Thebalancesheetisthestatementofassetsandliabilitiesofconcernata particulardate. 4.Keepingaccountsofcash Cashbookisaprominentbookofthebooksofaccounts. Cashreceiptsandcashpaymentsareaccountedforinthisbook.Anumber ofdailycashreceipts,payments,cashinhandandcashatthebankcanbe knownfromthisbook. Fraud,forgery,andmisappropriationofmoneyarereducedbykeepingcash bookscientificallyandaccurately. 5.Controloverassetsandliabilities Forrunningabusinesssuccessfullyabusinessmanistoacquirevarious assetslikeland,building,machinery,etc. Heistofacevariousdebtsandliabilitieslikeaccountspayable,notes payable,loan,bankoverdraft,etc.sidebysidewithdieacquisitionofassets. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Theactualpositionofthesedebts-liabilities,property,andassetscanbe ascertainedthroughtheproperkeepingofaccounts. Abusinessmancantaketherightstepsforcontrollingthequantityofassets decreaseandliabilityincrease. 6.Controllingmoneydefalcationandcost Preventionofmoneydefalcationthroughfraudandforgeryandcontrolling thecostofconcernarealsothemainobjectsofAccounting. Preventionofmoneydefalcationandcostcontrolbecomeeasierifaccounts arekeptscientifically. 7.Providingeconomicdata Anothernobleobjectofaccountingistoprovidetheconcernedpartieswith alleconomicinformationpreparingfinancialstatementsandreportsetc.in time. 8.Helpingtaxfixation Accountspreparedonthebasisofacceptedaccountingprinciplesin considered reliable to the income taxand VAT authorities foreasy determinationandsettlementoftaxandVAT. 9.Determinationandevaluationofpolicy Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Theobjectofaccountingistohelpthemanagementindeterminingand evaluatingthemanagementpoliciesinrunningthebusinesssuccessfullyby supplyingnecessary,information,interpretingandanalyzingthefinancial statements. 10.Testingthearithmeticalaccuracyofaccounts Oneofthemainobjectsofscientificmethodsofaccountingistomakesure thataccountshavebeenkeptinaproperway.Thearithmeticalaccuracyof accountskeptintheledgercanbeassuredbypreparingatrialbalance. Agreementofatrialbalanceistheproofofthearithmeticalaccuracyof accounts.Theadvantageoftakingloansduetotheinsufficiencyofcapital, borrowingcapitalfromoutsidersisfeltnecessarytorunabusiness. Loangiversarenotwillingtogivealoanwithoutknowingthefinancial positionofabusiness.Thefinancialstatementofabusinessconcern reflectsthesolvencyorloanrepaymentcapabilityofthatconcern. 11.Acceptabilitytoothers Banksorfinancialinstitutionsareinterestedtoknowtheaccuratefinancial positionofbusinessconcernforsanctioningloans. Ontheotherhand,thegovernmentorotherauthoritiesmayalsoaskabout thefinancialpositionofbusinessconcernforvariousreasons. Inthesecases,theaccountsmaintainedinadisciplinedwaybecomeeasily Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 acceptabletotheinterestedinstitutionsorauthorities. 12.Creationofvaluesandaccountability Theobjectofaccountsmaintainedinanacceptablewayistocreatehigher valuesamongindividualsandorganizationsandtherebycreatingawareness inpreventingmoneydefalcation,misappropriationoffundandcostcontrol byensuringtransparencyandaccountability. 13.Followinglegalbindingsandprohibition Asallkindsofbusinessorganizationshavetoabidebysomelegalbindings andprohibitions,theyaretomaintaintheiraccountsaccurately. Forexample; Partnershiplaw,incometaxlaw,andcompanylaw,etc.compelbusiness organizationstomaintaintheiraccountsinanappropriatemanner. The main objectives ofaccounting are maintaining a complete and systematicrecordofalltransactionsandanalyzingthefinancialpositionofa business. Everyindividualorabusinessconcernisinterestedtoknowtheresultsof financialtransactions and theirresults are ascertained through the accountingprocess. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Abusinessmancanascertaintheoperatingresultsandfinancialpositionof hisbusiness. ObjectivesofAppliedAccounting Objectives ofaccounting in any business are;systematically record transactions,sortand analyzing them,prepare financialstatements, assessingthefinancialposition,andaidindecisionmakingwithfinancial dataandinformationaboutthebusiness. ThemainobjectofAccountingistoascertaintheresultsofthefinancial transactionsofabusinessconcern. OtherObjectivesofAppliexAccounting Wehaveidentified13objectivesthataccountingserves. 1.Identificationandrecordingoftransactions Theprimaryobjectofaccountingistoidentifythefinancialtransactionsand torecordthesesystematicallyinthebooksofaccounts.Asaresult,thetrue natureofeachandeverytransactionisknownwithoutmuchexerciseof memory. Withthisendinview,thetransactionsareprimarilyrecordedingeneraland inaspecialjournalandlateronpermanentlyvariousaccountsarekeptinthe ledger. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 2.Ascertainmentofresults Everybusinessconcernisinterestedtoknowitsoperatingresultsattheend ofaparticularperiod. Theamountofprofitorlossforaparticularperiodofabusinessconcerncan beascertainedbypreparinganincomestatementwiththehelpofledger accountbalancesofrevenuenature. Surplusordeficitofrevenueforaparticularperiodofanon-tradingconcern canalsobeascertainedbypreparingincomeandexpenditureaccountor statement. 3.Ascertainmentoffinancialaffairs Ascertainmentofdebts-liabilities,property,andassetsi.e.totalfinancial affairsofanorganizationataparticulardateisanotherimportantobjectof Accounting. Financialaffairsofconcernataparticulardatecanbeascertainedby preparingabalancesheet. Thebalancesheetisthestatementofassetsandliabilitiesofconcernata particulardate. 4.Keepingaccountsofcash Cashbookisaprominentbookofthebooksofaccounts. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Cashreceiptsandcashpaymentsareaccountedforinthisbook.Anumber ofdailycashreceipts,payments,cashinhandandcashatthebankcanbe knownfromthisbook. Fraud,forgery,andmisappropriationofmoneyarereducedbykeepingcash bookscientificallyandaccurately. 5.Controloverassetsandliabilities Forrunningabusinesssuccessfullyabusinessmanistoacquirevarious assetslikeland,building,machinery,etc. Heistofacevariousdebtsandliabilitieslikeaccountspayable,notes payable,loan,bankoverdraft,etc.sidebysidewithdieacquisitionofassets. Theactualpositionofthesedebts-liabilities,property,andassetscanbe ascertainedthroughtheproperkeepingofaccounts. Abusinessmancantaketherightstepsforcontrollingthequantityofassets decreaseandliabilityincrease. 6.Controllingmoneydefalcationandcost Preventionofmoneydefalcationthroughfraudandforgeryandcontrolling thecostofconcernarealsothemainobjectsofAccounting. Preventionofmoneydefalcationandcostcontrolbecomeeasierifaccounts arekeptscientifically. 7.Providingeconomicdata Anothernobleobjectofaccountingistoprovidetheconcernedpartieswith alleconomicinformationpreparingfinancialstatementsandreportsetc.in Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 time. 8.Helpingtaxfixation Accountspreparedonthebasisofacceptedaccountingprinciplesin considered reliable to the income taxand VAT authorities foreasy determinationandsettlementoftaxandVAT. 9.Determinationandevaluationofpolicy Theobjectofaccountingistohelpthemanagementindeterminingand evaluatingthemanagementpoliciesinrunningthebusinesssuccessfullyby supplyingnecessary,information,interpretingandanalyzingthefinancial statements. 10.Testingthearithmeticalaccuracyofaccounts Oneofthemainobjectsofscientificmethodsofaccountingistomakesure thataccountshavebeenkeptinaproperway.Thearithmeticalaccuracyof accountskeptintheledgercanbeassuredbypreparingatrialbalance. Agreementofatrialbalanceistheproofofthearithmeticalaccuracyof accounts.Theadvantageoftakingloansduetotheinsufficiencyofcapital, borrowingcapitalfromoutsidersisfeltnecessarytorunabusiness. Loangiversarenotwillingtogivealoanwithoutknowingthefinancial positionofabusiness.Thefinancialstatementofabusinessconcern reflectsthesolvencyorloanrepaymentcapabilityofthatconcern. 11.Acceptabilitytoothers Banksorfinancialinstitutionsareinterestedtoknowtheaccuratefinancial Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 positionofbusinessconcernforsanctioningloans. Ontheotherhand,thegovernmentorotherauthoritiesmayalsoaskabout thefinancialpositionofbusinessconcernforvariousreasons. Inthesecases,theaccountsmaintainedinadisciplinedwaybecomeeasily acceptabletotheinterestedinstitutionsorauthorities. 12.Creationofvaluesandaccountability Theobjectofaccountsmaintainedinanacceptablewayistocreatehigher valuesamongindividualsandorganizationsandtherebycreatingawareness inpreventingmoneydefalcation,misappropriationoffundandcostcontrol byensuringtransparencyandaccountability. 13.Followinglegalbindingsandprohibition Asallkindsofbusinessorganizationshavetoabidebysomelegalbindings andprohibitions,theyaretomaintaintheiraccountsaccurately. Forexample; Partnershiplaw,incometaxlaw,andcompanylaw,etc.compelbusiness organizationstomaintaintheiraccountsinanappropriatemanner. The main objectives ofaccounting are maintaining a complete and systematicrecordofalltransactionsandanalyzingthefinancialpositionofa Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 business. Everyindividualorabusinessconcernisinterestedtoknowtheresultsof financialtransactions and theirresults are ascertained through the accountingprocess. Abusinessmancanascertaintheoperatingresultsandfinancialpositionof hisbusinessatanytime. AppliedManagementaccountingisvitaltoensurethevibrancyofabusiness enterprise.Theultimateobjectiveofthistypeofaccountingistoprovide supportinthedecision-makingprocessesassociatedwithallaspectsof businessoperations.AppliedManagerialaccountingservesanumberof crucialpurposesintheachievementofthisobjective.Herewediscussthe various elementsofmanagementaccountingandtherelationshipbetween them. Planning Afundamentalpurposeattheheartofmanagerialaccountingistoassistin planningforthefutureneedsofabusiness.Thisinvolvestheutilizationofa myriadoffinancialdatathatisincorporatedintobudgets.Management accountantscanbecalledupontoparticipateinplanningeffortsinvolving differentelementsofabusiness,dependingonitsstructureandorganization. Theplanning purposeofthistypeofaccounting also underpinsthe development implementation of strategies designed to enhance competitivenessandincreaseprofitability. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Monitoring Anotherpurpose ofApplied managerialaccounting isinvolvementof accountantsinthefollow-throughprocesses.Accountingofthistypeis involvedinensuringthatstrategiesareappropriatelyimplementedandaction plansarecarriedoutasintended.Confirmationofmilestoneachievement andinvolvementinqualitycontrolrelatedissuesarealsopartofmonitoring process. Themonitoringcomponentisnearlyalwaystakeninconjunctionwithupper- managementofaparticularbusiness.Managerialaccountantssetforth recommended milestones and otherelements utilized to aid in the monitoring process.These recommendations are submitted to upper managementforapproval. Directing Managementaccountants are involved in directing employees.These accountantsserveasvitalliaisonsbetweenupper-levelmanagementofa businessenterpriseandemployees.Anaspectofthedirectingelementof managerialaccountingismotivatingteammembersaswell. Directingandmonitoringareelementsofmanagerialaccountingthatgo handinhand.Monitoringisdesignedtoensurethatdirectivesaresuitably satisfied.Ifanissuearisesinthisregard,themonitoringprocessisdesigned toidentifytheproblemasapreludetoresolvingit. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Analyzing Thekeypurposeofmanagementaccountingisanalyzingdata.Theanalysis ofdataisassociatedwithallotherelementsassociatedwithmanagerial accounting.Theanalysisofinformationiscrucialinidentifyingproblem areasandindevelopingmethodologiestocorrect.Ultimately,dataanalysisis imperativetoenhancingcompetitivenessandincreasingprofitabilityinthe shortandlongterm. Reporting Oneofthecomponentsoftheoverallpurposeofmanagerialaccountingis reporting.Overall,thegoals,plans,andotherworkproductcreatedby managementaccountantscomeintheform ofcomprehensivereports. Thesereportstypicallyincludeananalysisofaparticularmattercoupledwith clearlyidentifiedconclusions.Inaddition,thesereportscontainspecificand usuallydetailedrecommendationforreachinggoalsandobjectiveorfor solvingenterpriseproblems. Managerialaccountantsarguablyaretrueintellectualbackbonesofa businessenterprise.Inthefinalanalysis,managementaccountingisa crucialcomponentvitaltotheultimatelyprofitableoperationofabusiness enterprise,accordingtotheSanFrancisco. The following points highlight the top nine objectives of Applied managementaccounting.Theobjectivesare:1.AssistanceinPlanningand FormulationofFuturePolicies2.HelpsintheInterpretationofFinancial Information3.HelpsinControllingPerformance4.HelpsinOrganizing5. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Helps in the Solution ofStrategic Business Problems 6.Helps in CoordinatingOperations7.HelpsinMotivatingEmployeesandOthers. ObjectivesofAppliedManagementAccounting: AssistanceinPlanningandFormulationofFuturePolicies HelpsintheInterpretationofFinancialInformation HelpsinControllingPerformance4.HelpsinOrganizing HelpsintheSolutionofStrategicBusinessProblems HelpsinCoordinatingOperations HelpsinMotivatingEmployees CommunicatingUp-to-dateInformation HelpsinEvaluatingtheEfficiencyandEffectivenessofPolicies Objective#1.AssistanceinPlanningandFormulationofFuturePolicies: Managementaccountingassistsmanagementinplanningtheactivitiesof thebusiness.Planningisdecidinginadvancewhatistobedone,whenitis tobedone,howitistobedoneandbywhom itistobedone.Itinvolves forecastingonthebasisofavailableinformation,settinggoals,framing policies,determiningthealternativecoursesofactionsanddecidingonthe programmeofactivitiestobeundertaken. Thus,planningismakingintelligentforecasting.Thisforecastingisbasedon facts.Factsareprovidedbypastaccountsonwhichforecastoffuture transactionsismade.Managementaccountinghelpsmanagementinits functionofplanningthroughtheprocessofbudgetarycontrol. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Objective#2.HelpsintheInterpretationofFinancialInformation: Accountingisatechnicalsubjectandmaynotbeeasilyunderstandableby everyonetilltheuserhasagoodknowledgeofthesubject.Management maynotbeabletousetheaccountinginformationinitsrawformduetolack ofknowledgeofaccountingtechniques. Managementaccountantpresentstheinformationinanintelligibleandnon- technicalmanner.Thiswillhelpthemanagementininterpretingthefinancial data,evaluatingalternativecoursesofactionavailableandguidingthe managementintakingdecisionsandhavingthemostdesiredfinancial results. Objective#3.HelpsinControllingPerformance: Managementaccountingisausefuldeviceofmanagerialcontrol.Thewhole organisationisdividedintoresponsibilitycentresandeachcentreisput underthechargeofoneresponsibleperson.Hewillbeassociatedwiththe planningandframingofthebudgetsandberequiredtoexecutetheplans and standards and deviations are analysed in orderto pinpointthe responsibility Thus,managementaccountanthelpsincontrollingtheperformanceofthe differentresponsibilitycentresandtakesuitableactionsinordertocorrect theadversedeviationsbyrevisingthebudgetsifneedbe. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Managementaccountingassistsmanagementinlocationofweakspotsand intakingcorrectiveactionsagainstsuchspotswhicharenotinconformity with the budgeted performance.Thus,managementaccounting helps managementin discharging its controlfunction successfully through budgetarycontrolandstandardcosting. Objective#4.HelpsinOrganizing: Thus management accountant recommends the use of budgeting, responsibilityaccounting,costcontroltechniquesandinternalfinancial control.Thisallneedstheintensivestudyoftheorganisationstructure.In turn,ithelpstorationalisetheorganisationstructure. Objective#5.HelpsintheSolutionofStrategicBusinessProblems: Wheneverthereisaquestionofstartinganew business,expandingor diversifyingtheexistingbusiness,strategicbusinessproblem hastobe facedandsolved. Similarlywheninaparticularsituation,therearedifferentalternativesas whetherlabourshouldbereplacedbymachineryornot,whethersellingprice shouldbereducedornot,whethertoexporttheitem ornotetc.,a managementaccountanthelpsinsolvingsuchproblemsanddecision- making. Heprovidesaccountingdatatoamanagementwithhisrecommendationas towhichalternativewillbethebest.Forsuchdecisions,themanagement Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountantmaytakethehelpofmarginalcosting,costvolumeprofit analysis,standardcosting,capitalbudgetingetc. Managementaccountingprovidesfeedbacktothemanagementsuchas whatbusinesstoengageinordiversifyhowtorunthatbusinessefficiently. Thisismostimportantcontributionwhichthemanagementaccountanthas made. Objective#6.HelpsinCoordinatingOperations: Managementaccountinghelpsthemanagementinco-coordinatingthe activitiesoftheconcernbygettingpreparedfunctionalbudgetsinthefirst instanceandthenco-coordinatingthewholeactivitiesoftheconcernby integratingallfunctionalbudgetsintooneknownasmasterbudget.Thus, managementaccountingisausefultoolincoordinatingthevarious operationsofthebusiness. Objective#7.HelpsinMotivatingEmployees: Themanagementaccountantbysettinggoals,planningthebestand economicalcourseofactionandthenmeasuringtheperformancetrieshis besttoincreasetheeffectivenessoftheorganisationandtherebymotivate themembersoftheorganisation. Objective#8.CommunicatingUp-to-dateInformation: Managementaccounting assists managementin communicating the financialfactsabouttheenterprisetothepersonswhoareinterestedin Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 thesefactssothattheymaybeguidedtoalineofactiontobepursued. Managementneedsinformationfortakingdecisionsandforevaluating performanceofthebusiness. Therequiredinformationcanbemadeavailabletothemanagementby meansofreportswhichareanintegralpartofthemanagementaccounting. Reportsaremeansofcommunicationoffactswhichshouldbebroughtto thenoticeofvariouslevelsofmanagementsothattheymaybeguidedfor takingsuitableactionforthepurposesofcontrol. Objective#9.HelpsinEvaluatingtheEfficiencyandEffectivenessofPolicies: Managementaccountingalsolaysemphasisonmanagementauditwhich meansevaluatingtheefficiencyandeffectivenesso£managementpolicies. Managementpolicies are reviewed from time to time to make an improvementinthem. AccountingTools ThefunctionsofAppliedmanagerialaccounting March17,2018 Managerial accounting involves collecting,analyzing,and reporting informationabouttheoperationsandfinancesofabusiness.Thesereports aregenerallydirectedtothemanagersofabusiness,ratherthantoany externalentities,such as shareholders orlenders.The functions of managerialaccountinginclude: Marginanalysis.Determiningtheamountofprofitorcashflow thata Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 businessgeneratesfromaspecificproduct,productline,customer,store,or region. Breakevenanalysis.Calculatingthemixofcontributionmarginandunit volumeatwhichabusinessexactlybreakseven,whichisusefulfor determiningpricepointsforproductsandservices. Constraintanalysis.Understandingwheretheprimarybottlenecksareina company,andhowtheyimpacttheabilityofthebusinesstoearnrevenues andprofits. Targetcosting.Assistinginthedesignofnewproductsbyaccumulatingthe costsofnewdesigns,comparingthem totargetcostlevels,andreporting thisinformationtomanagement. Inventoryvaluation.Determiningthedirectcostsofcostofgoodssoldand inventoryitems,aswellasallocatingoverheadcoststotheseitems. Trendanalysis.Reviewingthetrendlineofvariouscostsincurredtoseeif thereareanyunusualvariancesfromthelong-termpattern,andreportingthe reasonsforthesechangestomanagement. Transactionanalysis.Afterspottingavariancethroughtrendanalysis,a personengagedinmanagerialaccountingmightdivedeeperintothe underlyinginformationandexamineindividualtransactions,inorderto understandexactlywhatcausedthevariance.Thisinformationisthen aggregatedintoareporttomanagement. Capitalbudgetinganalysis.Examiningproposalstoacquirefixedassets, bothtodetermineiftheyareneeded,andwhattheappropriateform of financingmaybewithwhichtoacquirethem. Giventhebroadrangeofinvestigativeandanalysisactivitiesnotedabove,we Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 couldstatethatmanagerialaccountantsactsinanadvisoryrole,towarn managersofimpendingissuesandtodirecttheirattentiontowardpossibly profitableopportunities. Theothertypeofaccountingisfinancialaccounting,whichisconcernedwith theproperrecordationandreportingofaccountingtransactionstobein compliancewiththeapplicableaccountingframework(suchasGenerally AcceptedAccountingPrinciplesorInternationalFinancialReportingStandard. SmallBusiness»BusinessTechnology&CustomerSupport»Information Technology» HowIsInformationTechnologyUsedinAccounting? byKimberleeLeonard;ReviewedbyMichelleSeidel,B.Sc.,LL.B.,MBA; UpdatedFebruary12,2019 Informationtechnologyrole Informationtechnologyhaschangedthewaythatjustabouteveryindustry functionsincludingaccounting.Whileyoumightnotbeabletoaffordanin- houseaccountant,technologymakesiteffectiveandeasytohavea professionalworkingonyourbusinessfinances.Takealookathowyoucan useinformationtechnologytopartnerwithanoff-siteaccountantandkeep yourbusiness'sfinancialgoalsontrack. InstantAccesstoBusinessInformation Cloudcomputingkeepsbusinessinformationinasecuredinternetserver. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Whenanaccountantusescloudcomputingsolutions,thebusinessowner hasimmediateaccessviahiscomputertoallaccountinginformation.Any creditsordebitsmadeornotatedbyeitherpartyareimmediatelyavailable forreview.Thisaccessibilitymakesitpossibleforbusinessownerstoreview thevaluablefinancialinformationneededtorunoperationswithnodelay. BusinessSoftwareAdvancements Accountingandtaxsoftwareadvancementshavestreamlinedtheentire process ofaccounting and filing returns.Mostaccounting software integrateswithmostcorporatetaxsoftware,whichmeansthedataisquickly segmentedandcategorizedintheappropriatetaxcategories.Notonlydoes thismaketaxfilingfaster,butitalsomakesitmoreaccurate.Aslongasthe dataintheaccountingsoftwareiscategorizedcorrectly,theinformation goingintothetaxsoftwareisenteredcorrectly. MobilityandReducedTravelTime Manysmall-businessownersdon'tneedafull-timein-houseaccountant. With the internetand advances in information technology,a virtual accountantisaseffectiveasanin-personaccountant.Thiswayofdoing businessreducesoverheadandtraveltime.Businessownerssavemoney becauseinformationtechnologybringsaccountantsdirectlytothecompany financeswithouttraveltime,whichreducesoverhead. BankInformationAccessibility Majoraccountingprogramsandbankssyncwithafewmouseclicks.Online Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accessibilityprovidesthebankinformationtotheaccountantassoonasitis available,whichstreamlinestheprocessofmonthlybankaccountbalancing. Theaccountantonlyneedstogoinandtroubleshootlinesitemsthatdon't makesense.Businessrecordsstayuptodate,andtheaccountant'slifeat taxtimealoteasier,whichminimizescoststothecompany. DocumentScanningandSigning Accountantsneedaccesstoavarietyofbusinessdocuments.Previously, whenaccountingwashandledremotely,accessingthisinformationtookalot oftimeandenergyfrombothsides.Withsigningandscanningtechnologies, informationcanbeuploadedandstoredinthecloud.Clientscanmodifyand signinformationasneeded. Forexample,anemployeemaynothavesignedaFormW-9whenhired,but thisform isnecessaryforpayrollrecords.Withdocument-signingabilities, theaccountantcansendtheemployeeanemailrequestingadigital signature.Thisprocessiseasyandsaveseveryonetimewhileremaining compliantwithIRSregulations.Onlinedocumentscanningandsigningis anotherwayinformationtechnologystreamlinestheaccountingprocessfor accountantsandsmall-business. References(3) CPA PracticeAdvisor:TheEvolutionofTechnologyfortheAccounting Profession RogerCPAReview:5WaysTechnologyIsTransformingAccounting Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ScienceDirect:TheImpactofInformationTechnology(IT)onModern AccountingSystems Resources(3) BureauofLaborStatistics:AccountantsandAuditors SouthernNewHampshireUniversity:AccountingInformationSystem StetsonUniversity:AccountingInformationSystems AbouttheAuthor Withmorethan15yearsofsmallbusinessownershipincludingowninga StateFarmagencyinSouthernCalifornia,Kimberleeunderstandstheneeds ofbusinessownersfirsthand.Whennotwriting,Kimberleeenjoyschasing waterfallswithhersoninHavai. HowToStudyAppliedAccounting. Whilethereareseveralrulesforstudyingaccountingeffectively,learning accountingstartswithdesireandhardu.Ifyourheartisn'tinit,studying accountingcanbepuretedium.Onceyou'reheartisinit,andyou'rereadyto giveityourall,it'stimetolearnhowtomakemaximizeyourstudytimeand learnhowtolearnaccountingmoreefficiently. READYOURTEXTBOOKforAppliedAccounting. Textbooksareagreatresourceforstudyingaccounting.Thefollowingare rulesandsuggestionsforusingyourtextbookeffectivelytolearnaccounting. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 1.Studyingaccountingfrom atextbookisdifferentthanstudyingother subjectssuchashistory,economicsorbiology. Whenreadingahistorytextbookyoucangetbyifyou'reabletounderstand 90percentoftheinformationorifyoucomeawaywithageneralideaof what'sgoingon.Notthecasewithaccounting.Readyourtextbookfor understanding.Andifyoudon'tunderstandit,readitagain.Ifyouunderstand aconceptbeingintroduced,thenit'sokaytoskimthetextorskipahead.But makesureyouunderstandtheconcept(s). Similartomath,accountingconceptsbuildupononeanother.Whatyoulearn inchapter2buildsonwhatyoulearnedinchapter1.Whatyoulearnin chapter3buildsonwhatyoulearnedinchapters2and1.Ifyoudidn'treally grasptheconceptstaughtinchapter1,you'regoingtohaveadifficulttime learningtheconceptsinchapter2–andyou'llmostlikelybelostbychapter 3.It'simperativethatyouthoroughlyunderstandtheconceptsbeingtaught ineachchapterbeforemovingontothenextchapter. Scanningtextformainpointsdoesn'tworkinaccounting.Accountingtext booksaremeanttoberead.Almosteverythingthatisincludedinyour accountingbookisimportant.Sowhenyouread...readeverything. 2.Readyouraccountingtextbooktounderstand"WHY." Accountingdoesn'trequireyoutomemorizeasmuchinformationasother subjectsdo.Itdoeshoweverrequireyoutounderstand"WHY."Accountingis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 allabout"WHY."Asyoureadyourtextbookdiscoverthe"WHY"inwhatyou're reading.Trytounderstandthelogicbehindwhatisbeingtaught. Whenyoufinishstudyinganewtopicfromyourtextbook,trytoputitinyour ownwords.Explainthenewconcepttoyourselforsomeoneelse.Putting conceptsinyourownwordsandexplainingthemaloudisfarmoreeffective thanreadingatextoverandoveragain. 3.Discoverthe"HOW." Onceyouunderstandthe"why",it'simportanttodiscoverthe"how".It'snot enoughtounderstandwhyanaccountingprincipleorconceptworks,ifyou can'tapplyit.Youmustunderstandhowaccountingconceptsworkandbe abletoapplythem. Inordertodiscoverhowaccountingprinciplesworkandhowtheyareapplied, worktheproblemsincludedinyouraccountingtextbook.Mostchapter problemsaredesignedspecificallytohelpyoudiscoverhowtoapplythe principlesorconceptsbeingtaughtinthatsection.Workeachproblem beforecheckingyouranswer. 4.Reviewasyougo. Anysubjectiseasiertounderstandandrememberifyouthoroughlylearnit thefirsttimethrough.Butifyou'reunabletoremembereverythingyou've learned,you'lljuststartreviewingafewdaysbeforefinals,right?Thismaybe anacceptablestrategyifyou'restudyinghistoryorsociology,butnotwhen you'restudyingaccounting.Themosteffectivewaytolearnaccounting,and retainwhatyou'velearned,isto"REVIEWASYOUGO". Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Ifit'sabadideatocramforahistoryexamthenightbeforeatest,it'savery badideatocram foranaccountingtest.Neverpostponereviewingyour accountinguntilexaminationtime. Asyoureview,visitpreviouschaptersinyourtextbookandreworkproblems youstruggledwith.Findotheraccountingproblemssimilartothosethat weredifficultforyouandworkthoseproblemstoo. Attheendofeachweektakesometimetoreviewyournotes(1)torefresh yourmemoryand(2)tomakesureyouunderstandeverythingyoustudied duringtheweek.Remember,informationthatisforgottenmustberelearned. Thetimerequiredtorelearninformationisoftenthesameaslearningitfor thefirsttime.It'sfarmoreefficienttoreviewasyougothantoattemptto relearnforgotteninformationattheendofthetermorsemester. Askquestionsandgetanswerstoyourquestionsthroughoutthesemester. Yourprofessor,orteacher'said,isn'tgoingtobeanxioustositdownwithyou forseveralhoursattheendorthetermtoanswerallyourquestionsandre- teachyouconceptsyoushouldhavelearnedalongtheway.ANDwhenyour professorasksyouwhatyoudon'tunderstand,don'tsay"everything." Statementslikethissuggestyou'vemadeverylittleeffortonyourowntotry andunderstand.Beforeaskingquestions,pinpointexactlywhatyoudon't understand.Makesureyourquestionsarespecific. DOHOMEWORKPROBLEMS Ifyouwanttolearnaccounting,thenworkallthehomeworkproblemsgiven toyou.Thereisnobetterwaytolearnhowtodoaccountingthanpracticing accountingproblems.Masteringaccountingisaseasyasmasteringthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 homeworkproblemsinyourtextbook,instudyguidesandthosegiventoyou inclass.Ifyouwillworkyourhomeworkproblems,youwilllearnaccounting. 1.Readtheproblem andmakesureyouunderstandwhatisbeingasked. Thenscantheproblem. 2.Workeachprobleminitsentiretywithoutreferringtoreferencematerials. Ifyougetstumped,refertothetextbookoryournotes,butnotuntilafter you'vemadeyourbestefforttoworktheproblemonyourown. Ifyoucan'tworkproblemswithoutreferringtoyourtextbookoryournotes, youaren'trememberingthematerial–andaren'treadyforyournexttest. 3.It'seasiertokeepupthanplaycatchup. Sinceaccountingconceptsbuildupononanother,it'sveryimportantyou keepupwiththeclass. Aftereachclass,reviewyournotes.Ifthereareanyaccountingconceptsthat wereintroducedduringclassthatyoudidnotfullyunderstand,dowhatever isrequiredtolearnthembeforeyournextclass. 4.Theonlystupidquestionistheoneyoudon'task. Ifyouarehavingdifficultyunderstandingpartofaproblem,ordon'tquiteget anewaccountingconceptbeingintroduced,don'thesitatetoraiseyourhand andaskforclarificationduringclass. MAKEEFFECTIVEUSEOFCLASSTIME Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 YoumaybeabletobreezethroughyourhistorycourseandgetaB+atthe endofthesemesterwithoutattendingclassregularly.Thesamecan'tbe saidforskippingyouraccountingclass.Classattendanceandparticipation iskeytodoingwellinaccounting. 1.AlwaysarriveaclassPREPARED. Show upforeachclasshavingcompletedallassignmentsandhaving reviewedyournotesfromtheprevioussession. 2.You'llgetthemostoutofeachclasssessionifyouparticipate. Cometoeachclasssessionpreparedtoaskquestions,answerquestions, andparticipateinclassroomdiscussion. 3.DON'TBEAFRAIDTOASKQUESTIONS. Again,ifyouhaveaquestionaboutsomethingyoudon'tunderstand,askit. Chancesarethereareseveralotherstudentswhohavethesamequestion butareafraidtoraisetheirhand. PREPAREFOREXAMS Mostexamsofferedatreputableaccountingprogramsaredesignedtotest yourunderstandingofspecificaccountingprinciplesandconcepts.The followingsuggestionswillhelpyouprepareforsuchexams. 1.Focusyourstudyinthemostimportantareas. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Reviewandmakesureyoucanworkallhomeworkproblemsthathavebeen assignedoftheterm. Focusyourreviewontopicstheprofessorhasemphasizedinclass. 2.Makesureyoureallyknowthematerial. Besureyoucanworkallhomeworkproblemswithouthelp. Teachtheaccountingconceptsyou'velearnedtosomeoneelse. Formastudygroup,andtesteachother. Doyouknowthe"whys"and"hows"foreachaccountingconcept? 3.Focusonunderstanding--notmemorization.Yourinstructorwantstosee thatyoutrulyunderstandtheaccountingprinciplesandconceptsthathave beentaughtthroughouttheterm ofthecourse.Expecttoseequestions appearonthetestthatarepresentedinaslightlydifferentwaythanyou've previouslyseen.Makesureyouunderstandhowtoapplywhatyou'velearned. 4.Readtheentireproblem. Readwhateachquestionisreallyasking. Allowenoughtimeattheendoftheexamtoreviewforerrorsyou'vemade. 5.Answertheeasyquestionsfirst.Gothroughtheexamandanswerallthe questionsyouknow.Thengo backand tacklethemorechallenging questions.Thiswillensurethatyougetcreditforallthequestionsyouknow andrelievealittlepressureasyoutacklemoretime-consumingquestions. Redrivercollegeincanadaofferedtheappliedaccountingcourse.Inthis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 paragraphallthedetailarementionedwithemailidwithcontantand mentionedallthesyallabusofAppliedaccountingcourses. FULL-TIME|WINNIPEGLOCATIONS APACF-CTAppliedAccounting CoursesandDescriptions (Clickthecoursenametoviewthedescriptionofthecourse) Year1 Term1 CreditHours ACCT-1971 FinancialAccounting1 ADMN-1001 IntroductiontoCanadianBusiness COMM-1000 BusinessCommunication1 COMP-1975 BusinessComputing MATH-1051 BusinessandFinancialMathematics Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 4 PDEV-1100 ProfessionalDevelopment1 Term2 CreditHours ACCT-1000 AccountingSoftware-Sage50 ACCT-1052 AccountingSoftware-Sage300 ACCT-2005 ManagerialAccounting ACCT-2006 PayrollandBenefits ACCT-2043 FinancialAccounting2 COMM-2000 BusinessCommunication2 PDEV-2100 Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ProfessionalDevelopment2 RecognitionofPriorLearning(RPL) InadditiontoTransferofCreditfromarecognizedpostsecondaryinstitution, otherRPLprocessesareavailableforRPLcourses.Clickhereformore information.ForcourseswithnoRPL,pleasecheckwww.rrc.ca/rplfor additionalcontactinformation. ACCT-1000 AccountingSoftware-Sage50 MoreInformation Sage50(formerlySimplyAccounting)isacomputeraccountingapplication designedforusebyasmalltomedium sizedcompany.Thiscourse introducesthestudenttoprocessingmostbusinesstransactionsusingthis software.Procedurescoveredwillincludesettingupledgeraccounts, recordingpurchases,sales,inventory,andpayrolltransactions.Alsocovered willberecordingadjustments,performingyearendprocedures,andcreating essentialreportsfromthesoftware.Thismaterialispresentedusingpractice companieswhichemphasizemajorfeaturesofthesoftware. Prerequisites: ACCT-1971 Top ACCT-1052 AccountingSoftware-Sage300 MoreInformation Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Sage300(formerlyAccpac)isacomputeraccountingapplicationdesigned forusebyamedium tolargecompany.Itisamodularbatchprocessing system thatoperatesinawindowsenvironment.Thiscoursefamiliarizes studentswithprocessingcommonbusinesstransactionsusingtheGeneral Ledger,AccountsPayableandAccountsReceivablemodules.Procedures coveredineachmodulewillincludesetup,dailytransactions,adjustments, andperiodicprocessing.Thematerialispresentedusingapracticecompany whichemphasizesmajorfeaturesofthesoftware. Prerequisites: ACCT-1971 Top ACCT-1971 FinancialAccounting1RPL MoreInformation This firstcourse in accounting covers the double-entrybookkeeping procedures,adjustments,andproductionoffinancialstatementspertaining tosoleproprietorships.Coverageisalsogiventospecialjournals,subsidiary ledgers,andcontrolaccounts.Thisresultsinacompletepresentationofthe accountingcycleforaserviceormerchandisebusiness.Laterinthecourse moreindepthstudyofinventorycostingmethods,controlproceduresfor cashincludingpettycash,andbankreconciliationsispresented. Top ACCT-2005 Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 ManagerialAccounting MoreInformation Thiscoursewillintroducecosttermsandconceptsandshowtheirimpacton profitabilityanddecision-making.Topicscoveredincludejob-ordercosting, processcostingbothweightedaverageandFIFO(first-in,first-out),and activitybasedcosting.Thebudgetprocess,itsimplementation,andthe usefulnessofstandardcostingandvarianceanalysiswillbediscussed.Also reviewedarecommonperformancemeasures,cost-volume-profitanalysis, andtheconceptofrelevancyinmakingcommondecisions. Prerequisites: ACCT-1971 Top ACCT-2006 PayrollandBenefits MoreInformation Thiscoursewillintroducestudentstofederalandprovincialemployment standards,thecalculationofgrossearnings,statutoryandnon-statutory deductionsfrom earnings,taxablebenefits,thecalculationofnetpay,and theremittanceofpayrolltaxes.Thecalculationofpensionableearningsfor CanadaPensionPlanandinsurableearningsforEmploymentInsurancewill beincluded.Thecalculationofpayrolltaxesandpremiumsforemployment relatedexpensesinvariousjurisdictionsinCanadawillbecovered.The course willconclude with discussions ofyear-end payrollreporting requirementsand thestepsrequired to documenttheterminationof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 employees. Prerequisites: ACCT-1971 Top ACCT-2043 FinancialAccounting2 MoreInformation Thissecondcourseinaccountingstartswithaccountsreceivable,short-term notesreceivable,andpayroll. Thisisfollowedbythecost,depreciation,and disposalofcapitalassets.Thentheaccountingforpartnershipsinvolving incomedistribution,admissionorwithdrawalofapartner,andliquidationsis covered.Anintroductiontocorporationaccountingcoveringtheissueof shares,cash,andsharedividendsispresentednext.Latertopicspresented aretheaccountingforbonds,emphasizingtheeffectiveinterestmethodfor amortizingdiscountsandpremiums,andthecashflowstatement. Duringthe course, studentswillalsoreceiveanintroductiontoSage50software. Prerequisites: ACCT-1971 Top ADMN-1001 IntroductiontoCanadianBusiness MoreInformation This courseisdesignedtointroducestudentstothecomplexitiesofthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Canadian business environment.Exposure to business frameworks, accounting,finance,marketing,management,humanresourcemanagement andoperationsmanagementwillbeprovided.Specialemphasisisplacedon smallbusiness;thedriveroftheeconomyandcreatorofmostnewjobs.The coursewillincludecasestudies,applications,andanalysesofCanadian businesses. Top COMM-1000 BusinessCommunication1RPL MoreInformation Thiscoursewillguidestudentsthroughthetechniquesandprocesses involvedinwriting,speaking,andlisteningeffectivelyforbusiness.Students willbetaughtskillsfornetworking,meetings,andworkinginteams.Students willapplyadirectapproachtocreateprofessionalemailsandletters. Studentswilllearnstrategiesforcompetentinformationreportwriting. Studentswillbetaughthow tocreateanddeliveramemorableoral presentation.Theproperuseofbusinesswritingrules,grammar,and etiquettewillbeemphasizedthroughoutthecourse. Top COMM-2000 BusinessCommunication2 MoreInformation StrengtheningtheskillsacquiredinTerm1,studentswillfurtherdeveloptheir Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 writtencommunicationskillsbyapplyingtheindirectpatterninnegativeand persuasivesituations.Youwillbuildupyourjobsearchskillsbylearningthe strategiesandnuancesofthejobinterview.Presentationskillswillbe polishedasyoudesignanddeliveraformalpresentation.Youwillcontinueto developreportwritingskillsbyplanning,organizing,andwritingananalytical report.Finally,youwilllearnhowbusinessesusesocialmediaandthewebto communicatewithitsaudiences.Bothindividualandgroupworkwillbe emphasizedthroughoutthecourse. Prerequisites: COMM-1000 Top COMP-1975 BusinessComputingRPL MoreInformation BusinessComputingisahands-oncourseinwhichstudentsdevelopskillsin the use ofcurrentMicrosoftproductivity software.Topics include introductoryandintermediateskillsinMicrosoftWindows,Word,Excel,and PowerPointaswellastheintegrationoftheseapplications. Top MATH-1051 BusinessandFinancialMathematicsRPL MoreInformation Thiscourseintroducesthekeymathematicsofbusinessandfinance. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Businesstopicsincludepayroll,taxes,indexes,currencyexchange,and merchandising.Financetopicsincludesimpleandcompoundinterestwith businessapplications. Top PDEV-1100 ProfessionalDevelopment1 MoreInformation Learnandpracticeskills,attitudes,andbehavioursthatwillhelpyouto succeedinyourprofessionalcareer.Youwillreflectonyourpastandcurrent learningsothatyoucanconfidentlywriteaboutanddiscussyourskillsand experiences.Youwillexaminetheroleofcultureonyourpersonaland professionalinteractions.Mostclasstimewillbededicatedtogroupand classdiscussions. Top PDEV-2100 ProfessionalDevelopment2 MoreInformation Youwillimproveyourabilitytoconfidentlydescribeyourskillsinwrittenand verbalform sothatyoucanclearlyconveyyourabilitiestopeopleinyour networksuchaspotentialemployersorclients. Youwillalsocontinueto develop yourintercultural,interpersonal,and academic skills through activitiesanddiscussionswhichencourageintrospection,reflection,and teamwork. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Prerequisites: PDEV-1100 Top ApplyNow HowtoApply Locations,DatesandFees TransferCreditOpportunities Backtotop RedRiverCollegeendeavourstoprovidethemostcurrentversionofall program andcourseinformationonthiswebsite.Pleasebeadvisedthat classesmaybescheduledbetween8:00a.m.and10:00p.m.TheCollege reservestherighttomodifyorcancelanycourse,program,process,or procedurewithoutnoticeorprejudice.Feesmaychangewithoutnotice. Full-timePrograms AppliedAccounting CoursesandDescriptions SUPPORTS AcademicAdvising FinancialAidandAwards RPLAdvising Tours Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 REGIONALCAMPUSES InterlakeandPeguis-FisherRive CONTACT TheFishercollege. StudentServiceCentre-Full-timePrograms Phone:204.632.2327 Toll-free:800.903.7707. TheDisruptiveImpactoftheDigitalRevolutiononApplied Accounting Organizationsareslowatadoptingprogressivemethods.Thisistruefor CFOs,CPAsandaccountants.Theaccountingprofessionneedstoprepare forchangeandthreatstocompetitiveadvantagebecausethereisan acceleratinganddisruptivedigitaltechnologiestransformationinprogress calledthe“digitalrevolution”. Wearewitnessingsignificantchangesinthenatureoftechnologiesavailable fortoday’smanagersandemployeeteamswithregardtoinfrastructure, availabilityandcapacity.Theseelementshaveaccumulatedinfourkey technologiesoftenreferredasSMAC–Social,Mobile,AnalyticsandCloud. Venturecapitalinvestorshaverecentlyshiftedtowardsbigdataandartificial intelligence thatcombine these technologies.These investments are acceleratingtheimpactofthisrevolution. ExamplesofdigitizationdisruptingtraditionalindustriessuchasUberforcar passengertransportationarejustthetipoftheiceberg.Whiletheterm Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 artificialintelligence(AI)originatedinthe1950s,theworldturneditsbackto thepromisesofAI.Fordecades,researchinthisspacecontinuedbya handfulofresearchersinCanada.Theircontinuingresearchhasrecently contributedtotherebirthofinterestinartificialintelligence.It’snosurprise thatsomeoftherelevantstartupsforprofessionalservicesfirmsemerged outofCanada. Asexamples:RossIntelligencecanstreamlinethemanualsearchthatjunior attorneysinlawfirmslaborattoresearchpastcases.MindBridgeAIis capturingandaugmentingassuranceassociates’knowledgeintoanAI, enhancingprofessionaljudgmentandsimplifyingworkarounddataand analytics.Bothexampleswillcreatenewcapacitiesorremoveobsoletejob titlesandwillredefineworkflowsintheseprofessions. Embracing “digitaltransformation”is the recourse forprotection and preservation.Thisdoesn’tmeanthataccountantsshouldseektobecome datascientistsorbuildmobileapps.Theyneedthecompetencetochoose thetechnologiesfittingthemandbedemandingandaggressiveinadopting them.Insomeareas,lowcognitivetasks,suchasthemanualandtedious tasksperformedbyaccountants,canbeaugmentedandmonitored,downto keystrokes,byanAIengine.TheAIwillnevertakeavacationorgettired.It canoperate24/7. 5accountingfunctionsthatwillbeimpacted Asautomationdisplacesatraditionalaccountant’swork,itisimportantfor Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 thoseaffectedtohaveapositiveandanoptimisticattitudeandconsiderthe newly-createdupsidepotentialforthemtoperformfulfillingworkandhigher cognitivetasks.Despitesciencefictionmoviesthatpresentanapocalyptic viewofrobots,thefutureshouldnotbefeared.Thisisbecauserobotic softwarecan,fornow,onlyhandlelow-cognitivetasksanddoesnothavea senseofself-preservationlikehumans.Regardless,weneedtoclearly identifywheretheywillimpactworkthemost. Herearefiveaccountingfunctionsthatwebelievewillbehighlyimpacted: 1.Transactionalaccountingprocesses Clericalaccountantsarethemostvulnerabletodigitalizationandautomation becausetheirrolesinvolveroutinetaskslikebookkeepinganddataentry. Primaryexamplesarecustomerorderprocessing,invoicing,credit,accounts receivable,paymentcollection,vendorpurchase orderprocessing and accountspayable,payrollprocessing,andtravelandexpenseprocessing. 2.Fiscalperiod-endaccountingcloses Theriskofdigitalizationforaccountantsisduetotheincreasingapplication ofaffordablecommercialsoftwarethatautomatestheworkflowprocesses ofthemonthly,quarterlyandfiscalyear-endaccountingclose.Softwarecan quicklyaccesssourcedataandapplytaxcalculationrules.Smallbusinesses, similartoindividualhouseholds,cannowusecommercialtaxpreparation softwareinsteadofhiringtaxprofessionalsfromathird-partyservice. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 3.Auditing Thepurposeofanauditistoobtainreasonableassuranceaboutwhether financialstatementsarefreeofmaterialmisstatementsandirregularities duetoerrororfraud.Digitalizationimprovesthequalityofanauditinmany differentways.Forexample,usinganAI-expertsystemcapableofscanning through100%ofthedataandapplyingadvancedanalyticsandanomaly detectionintheauditcanleadtobetter-informedriskassessments.Itleads toafarmorefocusedandrelevant(higherqualitybasedonrisk)sample whichincreasesthespeedofengagementsanddecreasesliability. 4.Businessprocessoutsourcing(BPO)ofaccountingtasks Thegeneraltermforthirdpartieswhoperformoutsourcedaccountingtasks isbusinessprocessoutsourcing(BPO).TheBPObusinessmodelistypically basedonfee-for-servicepricing.Withcentralizationandeconomiesofscale fromhavingmultiplecustomers,aBPOprovidercanoftenperformbothfront andbackofficeaccountingtasksmoreefficiently. 5.Regulatoryfilings Automationandtechnologyhavealreadybeguntorevolutionizeregulatory compliancereporting.Theimplicationsarethatratherthanaccountants requiringonlymathematicalacumen,masteryoftaxlawsorbookkeeping proficiency,accountantscandevotemoretimewithincreasedskillto interpretingandanalyzingfinancialinformation.Forexample,theycanuse XBRL,aformatthatcannowdigitallytransmititsfinancialstatementfilings togovernmentregulatoryagencies. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Mitigatingriskduetodigitalizationwithinaccounting Automationisboundtoimpactaccountingtasksandjobs.Insometasks wherecomplexityissubstantialandthevolume,varietyandvelocityofdata areallhigh,computersoftwaremayoutthinkahumananalyst.Automationis alsocapableofapplyingwhatwaslearnedfrompreviouslysolvedproblems tonewproblems.Forexample,automatedanalysistoevaluatethefinancial returnfromvaryingcapitalinvestments,suchasfordifferentassetssuchas machines,can beused to evaluateacquiring differenttypesofnew customers. Accountantsneedtofacetherealitythatlow-cognitivetaskswillsoonbe performedbyacombinationofbrutecomputerprocessingpower,bigdata and algorithms.The mostsevere risk an accountantfaces due to digitalizationandautomationistheeliminationoftheirjob.Otherrisksare downwardpressureonsalariesforsomeaccountingpositions,withpotential increasesinworkloadandworkhours. Differentpeoplehavedifferentreactionstochange.Somepeoplemaydeny thechange,whileothersmayembraceit.Thereareseveralwaysthat accountantscanmitigatetheimpactonthemselves: •Increasingskillswitheducationandtraining Asautomationincreasesexaminingtheoutputofautomation,including reportsandanalysis,willbeemphasized.Asthisemphasischanges, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountantscanconverttheirfearedrisksintoopportunities.Theycando this byacquiring new skills and capabilities such as with planning, strategizingandanalysiswhichcontributehighervaluetotheorganization thansimplyreportingdata.Thiscanbeaccomplishedviaeducationand training.Forexample,TheInstituteofManagementAccountantsreportsthat memberswhopassitsCertifiedManagementAccountant(CMA)examearn onaveragea35%highersalaryrelativetocomparableaccountantswithout theCMAdegree. •Augmentingdigitalautomation Incertaincases,accountantswillfindthatroboticandanalyticsoftware doesnotfullyreplaceajobfunction.Instead,itwillautomatetherepetitive tasksofaworkflowprocess,andtheaccountantcanthenaugmentthe automationwithvalue-addingwork.Forexample,asautomationreduces errorsandgeneratesinformationmorequickly,theaccountantcanshiftfrom producingreportstoinvestigatingdiscrepancies.Ineffect,theaccountant becomesthemachine’ssupervisor.Asautomationoccursmanyjobswillbe redefinedratherthaneliminated. •Newbusinessmodelsfromdigitaldisruption Entrepreneurial accountants will recognize the opportunities that digitalization,automationandAIcanbringforexpandingexistingbusiness modelssuchasbusinessprocessoutsourcingandtaxprocessingservices. Additionalopportunitiesaretopursuenew businessmodels,suchas financialsoftwareimplementationservices,includingprovidingtheanalysis Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 generatedfromtheinformationproducedfromthesoftware. Asonebeginstomorefullyunderstandtheimpactofsoftwareautomation andthespeedatwhichitwillaffectaccountingjobs,accountantshavetwo broadchoicesonhowtoreact.Thefirstisfearfully,wonderingiftheychose thewrongprofessionandshouldpursueadifferentcareer.Thesecondisto seizetheopportunityforchangeandembracethepositiveandimminent impactsfrom automation.Thisincludespreparingthemselvesforless tediousandmorefulfillingworkthatwillbringincreasingvaluetotheir organizationsandtheirclients–aswellasthemselves. Thechoicewillbetheirown.Noonehasacrystalball,butourbetistheywill makethelatterchoice. Articleco-writtenbyGaryCokinsandSolon April2,2019ByMariaZegarra 6BenefitsofBecominganAccountant Pursuingacareerasanaccountantmightbeoneofthebestwaysof investinginyoureducation.Alltoooften,graduateshavecelebratedtheir milestonesofcompletingtheirassociates,bachelors,masters,andeven Ph.D.degreeswithoutknowingwhetherornotthedegreethatthey’ve workedsohardforwillrenderareturnontheirinvestment. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Therealityofpursuingapost-secondarydegreeisthatthereareno guaranteesthatanyonewilllandadream jobthatoffersfinancialsecurity. However,ithasbeenproventimeandtimeagainthatthesecanbeincreased withacollegedegree.Whatbetterwaytodothatthanwithanaccounting degreefromFloridaNationalUniversity(FNU)? Accountantshaveaprettygoodideaabouthow thehard-earneddollars contributedbyAmericantaxpayersareputtowork,andtheyknowthata smallportionisallocatedtotheBureauofLaborStatisticsoftheUnited StatesDepartmentofLabor.TheBLSisresponsibleforanalyzingthelabor marketandmakingemploymentprojectionsbasedoneconometricdata; withregardtotheaccountingprojection,thecurrentBLSoutlookisas follows: From nowuntiltheyear2026,demandforaccountantsandauditorswill increasebyabout10percent,aratefasterthanthenationalaverageforall occupations. Morethan1.5millionAmericanaccountantsareexpectedtobeemployedby Evenwithperiodsofrecession,theAmericaneconomywillcontinueto expand,andthismeansthatmorefinancialrecordswillneedtobegenerated andanalyzed. Floridaisoneofthestateswhereaccountantswillcontinuetobeinhigh demand.California,NewYork,Pennsylvania,andTexasarealsoexpectedto Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 offermanyjobopportunitiestoaccountingprofessionals. ObtainingadegreeinaccountingfromFNUhasmanyadvantages.Hereare sixofthem: 1.AccountantsHaveaBetterUnderstandingofFinances Afteryearsofstudyingtheartofmanagingmoney,accountantsgainthetype ofknowledgemanypeoplearehappytopayfor.Earninganaccounting degreeatFNUoffersstudentsawidearrayofknowledgebeyondledger managementandfinancialreporting;theFNUaccountingcurriculum also includescoursesinareassuchasmicroandmacroeconomics,businessand taxlaw,corporatefinance,spreadsheetanalysis,bankingandfinance, management,andsupervisoryskills.Theseskillsareapplicabletoanyjob profession,andthismeansthatemployerswouldgreatlybenefitfrom job candidateswhopossesstheseskillsets.Accountingskillscanalsobe appliedtowardotherprofessionssuchasfinancialplanners,fundmanagers, bankingspecialists,andothers. 2.TheGrowingDemandforAccountants Aspreviouslymentioned,therearenoguaranteesthatanyonewilllandajob oncetheyhaveearnedtheirdegree,butitisworthnotingthatthedemandfor accountantsconsistentlyrankshigh.Sinceaccountingessentiallyentails managingmoney,itcanbeconsideredtobeamajordrivingforceofour economy.Everybusinessneedsatleastoneaccountingprofessionalto handle theirfinances;in some cases,large corporationswillemploy accountingdepartmentswithhundredsofemployeesatofficesaroundthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 world.Itissafetoassumethatsignificantdemandforaccountantswill continueinthe21stcenturyandbeyond. Everyoneneedsaccounting;thedemandisalwaysconstant,spanningacross allbusinessandindustrialsectors,thuscreatingjobsecurityalongwith careerlongevity.Itisuptoprospectiveaccountantstotakethefirststepand learnmoreaboutwhatFNU hastooffer.TheBachelorofSciencein Accountingprogram canbefullycompletedonline;however,youcanalso takeablendedapproachthatcombinesclassroom educationwithinternet courses.Studentswithfull-timejobscantakeeveningclassesatFNU campuslocationsinHialeahandMiami,andtheycanalsoapplyforfinancial aid.FormoreinformationaboutthisFNUprogram,getintouchwithoneof ouracademiccounselors. 3.OpportunitiesforAdvancement Withtherightkindofnetworkingconnections,anentry-levelaccountantmay increasehisorhersalarypotentialwithinayear.Withtherightcombination ofcollege accounting skills plus continuing professionaleducation, accountantscanexpandtheiroptionsbypursuingspecializedpositionssuch asBudgetAnalyst,Auditor,Controller,TaxAccountant,PayrollClerk,Certified PublicAccountant,andevenaCorporateFinancialOfficer.Additionally,the combinationofaccountingwithotherbusinessskillswillcreateanattractive resumethatemployerswillcertainlynotice. Having generalknowledge ofaccounting principles provides a good Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 foundationtowardsadvancingintohigherpositions.Withpositionssuchas CostAccountingandFinancialPlanningandAnalysis,itisimportanttoknow how reportedfiguresaregenerated.Modernfinancialstatementsand reportingaremorethanjustPowerPointpresentations;thefinancesectoris underpressuretobecomemorestrategicbecausethisiswhatshareholders demand.Companiesexpecttheiraccountingandfinancedepartmentto analyze,explain,andtakeaction. 4.ThePayRangeforAccountantsisCompetitive Becauseofthenatureoftheirprofession,accountantstypicallybegintheir careersatenticingsalarylevels.TheBureauofLaborStatisticsreportedthat themediansalaryforaccountantsworkinginthegovernmentsectorin2017 was$67,100peryear,whichcomestoabout$31anhour.Thelowestwas10 percentearned$43,020whilethehighestearnedapproximately$122,220. Thesesalaryfiguresmayvarydependingonone’sregionallocation,whether thecompanyisprivatelyowned,public,oroperatedbythegovernment.Itis alsolikelythathigherpaidsalariesareofferedinbiggermetropolitanareas. 5.TheAbilitytoStartYourOwnBusiness Itisnotuncommonforaccountingprofessionalstobecomeentrepreneurs; thisoftenhappensafteryearsofon-the-jobexperiencewhenaccountants havedevelopedagoodamountofbusinesscontacts.Accountantsmayfeel morecomfortableafteryearsofnetworkingtousethecontactsthatthey’ve developedtostarttheirownbusiness.Whetherit’sconsultingorspecializing intaxaccountingandrepresentation,theoptionsareendlesswhenitcomes Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 tofinancialaffairs. Forbesmagazineoftenlistsaccountingasoneofthebestforprospective collegestudents,andthisislikelybecauseitisthetypeofprofessionthat canholditsownintoday’sjobmarketplace,anditisoftenrecommendedfor peoplewholivewithdisabilitiesbecauseofeasyaccommodations.Evenas aself-employedaccountant,thereisgoodpotentialtoearnagreatdealof incomejustbecauseofthesteadydemandformoneymanagement. 6.GainingaBetterUnderstandingofTaxationandBusinessLaw Agoodaccountingdegreecurriculum willincludecoursesonbusinesslaw aswellastaxation,andthisiswhattheFNU BachelorofSciencein Accountingprogram offers.Becauseofthepersonal,legalandbusiness repercussionsofbreakingorneglectingtaxlaws,accountantsmustacquire sometaxationknowledge.AspartofFNU’scommitmenttoservingthe SouthFloridacommunityandmaintainingitsdegree-grantingaccreditation withtheSouthernAssociationofCollegesandtheFloridaCommissionfor IndependentEducation,coursesandprogramsareregularlyevaluatedfor freshnessandrelevance;inthecaseofaccounting,makingsurestudents learnabouttaxationandbusinesslawtopicsiscrucial. EnrollintheFNUAccountingProgramToday Earningadegreeinaccountingputsyouatastrategicadvantageformany opportunities that may accelerate your professionalcareer.FNU’s accountingprogramdoesnotprepareyoutositfortheCPAexam;however, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 itdoesprepareyoutolearngeneralaccountingprinciples.Italsohelpsto placeyouasaseriousjobapplicantinorganizationswhereaccountingskills areinhighdemand. FNUisdedicatedtopromotingacademicandcareersuccess.Weofferour studentsavastarrayofeducationalprogramsinvarioussubjectsthatcanbe completedwithaflexibleapproach.Itistimetoinvestinyourfutureby lookingintoaccounting;learnhowtomakeithappenandapplytoFNUtoday. Scholarshipsandfinancialassistanceareavailabletoqualifiedstudents. Summary ArticleName6BenefitsofBecominganAccountant DescriptionThinkingaboutbecominganaccountant?Findouthow this professionmightbeofinteresttoyouandwhatbenefitsyoucanexpect. AuthorMariaZegarra PublisherNameFloridaNational. WhataretheBenefitsofStudyingAccounting? PublisherLonsdaleInstitute PublishedonApril20th,2018 Accountingisagreatcoursetostudyforanumberofreasons.Accounting providesyouwithskillsandknowledgethatcanbeappliedtoanumberof industries.Infact,solongastherearebusinessesintheworld,accountants willalwaysbeneeded. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Aqualificationinaccountingisthebestwaykick-startyourcareer,however, beforeyoudecidetostartstudying,it’sworthnotingthekeybenefitsacareer inaccountingcangiveyou. Whatdoaccountantsdo? Therearemanyqualificationsandjobsthatdealwithmoney,sohowexactly doesaccountingdifferfromothertypesoffinance-relatedroles?Perhapsthe easiestwaytodescribeitisthataccountinginvolvesdealingwithreal revenues,actualtransactionsandobservablefinance. Accountants dealin the reality.Theydon’t(orshouldn’t)speculate. Accountantsknowtherulesandfollowthem,andaregoodatkeepingtrack offigures.Theymightmakeassessmentsbasedoninformationinfrontof them,buttheydeallesswiththeunknownthansay,afinance-related position. Theprimaryroleofaccountantsistoprepareandexaminefinancialrecords. Accountantsensuretheaccuracyofaperson’sorbusiness’sfinancial records,andthatbillsandtaxesarepaidproperlyandontime.Ajobasan accountantmayalsoinvolvethefollowing: Organisefinancialrecords Reviewstatementsforaccuracy Makecertainthatrecordsandstatementscomplywiththelaw Computetaxesowed,preparetaxreturns,ensurepromptpayment Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Inspectaccountbooksandaccountingsystemstokeepuptodate Suggestwaystoreduceoverheadsandincreaserevenuesandprofits Provideauditingservices Accountancyasagoodfoundation Evenifyoudidwanttobranchoutintofinanceandeconomics,abackground in accountancylays the valuable groundwork fordeveloping broader monetarytheories.Accountantscanhonetheircraftthroughtheapplication ofknownmethodologies. Anaccountancycertificationisalwaysvaluable.You’lllearnhowtofocuson money management,financialrecording and reporting,and the best processestosavecashforabusinessorsoletraders.Theseskillsare desiredineveryindustry.Formostaccountants,it’sneverhardtofindwork. Whatisstudyingaccountinglike? ThemostcommoncoursetostudyforacareerinaccountingisaDiplomaof Accounting. Whenstudyingaccountingyouwillacquireknowledgeaboutthelawsthat governbusiness,typicalbusinessadministrationschemes,theethicsof accountancy,statistics,andaccountingtheory.You’llbetaughthow to preparethekeydocumentsthatyourjobwillinvolve,includingbusiness proposals,financialstatementsandtaxreturns. Youwillalsohavesubjectsthatoverlapwithotherfinance-basedcourses. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Youwillcoverareassuchasquantitativeanalyticsandmathematics– studyingaccountingmeansknowingyourwayaroundmathsandinferring resultsfromnumbers. Isaccountingrightforyou? Whilethecourseguidecantellyoualotaboutwhetheryoushouldstudy something,it’salsoimportanttoconsideryourfutureworkinglifeandyour idealcareer. Doyouloveroutines,problemsolvingandconcretedata?Accountingcould berightupyouralley.However,ifyoulikearolethatisconstantlyshifting andrequiresmorespeculationandrisktaking,youmaywanttotryother financialroles. Stillnotsure?Don’tstress It’snormaltonothaveyourfuturecareerentirelyfiguredout.Therearelots ofpeoplewhosejobitistohelptalkyouthroughthesedecisions.Ifyoucan’t quitedecideifaDiplomaofAccountingisrightforyou,youcanalwaystalk toastudentadviserortheheadofthedepartmentattheeducational instituteyouwanttostudyat.Thatway,youcangetsomeadvicefrom peoplewhohaveathoroughunderstandingofthecourseandindustry. Youshouldalsorememberthatpursuingonecourseisnotnecessarilygoing tocutyouoffinacareerintheothersector,anditcertainlywon’tstopyou fromstudyingsomethingelseinthefutureifyouchangeyourmind. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Youcan’treallygowrongwithaDiplomaofAccounting.Evenifyoudecideto switchcareerslater,you’llhaveagreatfoundationalunderstandingofhow moneyisrecordedandreportedthatwillonlyhelpyouinthelongterm. Attheveryleast,you’llknowhowtomanageyourownfinancesbetter. Accountinghasgoodjobprospects IfyoudecidetostudyaDiplomaofAccounting,youprobablywon’thaveto waitlongtostartworking.Jobsinaccountingarealwaysindemandandthe skillsyoulearnthroughstudyingaretransferableandcanbeappliedtomany otherdisciplines.Ifyou’rethinkingofstudyingaccounting,LonsdaleInstitute hasagreatrangeofcertificatesanddiplomastochoosefrom,sogoahead andcontactustoday. LonsdaleInstitute LonsdaleInstitutehasoveradecade’sexperienceasaleadingproviderof educationandtrainingforbothAustralianandnewzealand.Benefitsofa Degreein(AppliedAccounting)atCASriLanka’sopenday TheInstituteofCharteredAccountantsofSriLanka(CASriLanka)has organizedan‘OpenDay’forthebenefitofprospectivestudentsandtheir parentstohelpthem discoverthemanyadvantagesoftheBachelorof ScienceDegreeinAppliedAccountingofferedbytheinstitute. TheopendayonSunday,28thApril2013conductedattheInstitute’s Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Colombo7premiseswillfacilitatestudentsandtheirparentstogetamore thoroughunderstandingonthebenefitsandtherecognitionofthisdegree programme which has also been approved bythe UniversityGrants Commission. CASriLankastaffwilleducateandelaborateonthesignificanceofthe degreeprogramme,whileaqualifiedteamfromtheCASriLankaSchoolof AccountingandBusinesswillbeathandtoanswerqueriesofstudentsand parentsrelatedtothedegree. TheinauguralBSc.inAppliedAccountingwillcommenceinJunethisyear andisdesignedundertwoseparatestages,namelythegeneraldegreewhich canbecompletedwithaperiodofthreeyearsoversixsemestersorthe specialdegreewhichcanbecompletedinfouryearsoveraperiodofeight semesters. ThehallmarkoftheCASriLankadegreeprogrammeinappliedaccounting guarantees to create employable graduates with the required skills, competenciesandindustryknowledgetofulfillasuccessfulaccounting career. Uponcompletingtheappliedaccountingdegree,studentswillgainextensive knowledgeandtherequiredskillsinaccountingpractices,asthisistheonly degreeprogrammeinSriLankathatenablesstudentstogainknowledgein thefieldof‘AppliedAccounting’. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Theprogrammewillbeconductedbyafully-fledgedfacultycomprisingof qualifiedprofessors,seniorlecturersandindustryprofessionalswhoare expertsinthearea. CASriLanka,whichwasestablishedin1959byanActofParliament,isone ofthelargestprofessionalorganisationsinthecountrywithover4300 memberswhoarefullyqualifiedcharteredaccountantswithsignificant percentageofthemplayingaleadingroleinthecountry’scorporatesectorin thecapacityofchairmen,managingdirectors,chiefexecutiveofficers,chief financialofficersanddirectors. Theinstituteisalsooneofthelargesttertiaryeducationprovidersinthe countryoutsidetheuniversitysystem,withanactivestudentbaseofover 41,000 who are currentlystudying the institute’s globallyrecognized charteredaccountingprogramme. CA SriLankaistheonlyprofessionalinstituteatpresentoffering a professionalqualificationandadegreeinthecountry. CASriLankanembarkedonthislandmarkinitiativeinanefforttobridgethe growinggapinthedearthofhighereducationopportunitiesavailableinfield ofAppliedaccountandfinance. 8BenefitsofBusinessAccountingEveryBusinessBuilderOughttoKnow Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 CREATE/CONTROLBUDGETS Accountinghelpsbusinessownerscreateandcontrolcompanybudgets. Whenyouknowhowyourmoneyiscominginandgoingout,youarebetter preparedtomonitorbusinessbudgets.Acompanywithoutbudgetsislikea shipdriftingatseawithoutacaptain;accountinghelpsensureyourbusiness isn'theadingforaTitanic-styleiceberg. FORECASTREVENUES Businessownerswhopayattentiontotheiraccountingareinformedand betterabletoforecastrevenuesfortheircompany.Revenueforecastshelp youunderstandwhethercurrentmarketingeffortsareworkingorwhether changesneedtobemade.Ifyoucan'tforecastrevenuesforyourcompany, youwon'tknowwhetheritissafetomakebusiness-relatedexpenditures. MAJORBUSINESSPURCHASEDECISIONS Speakingofexpenditures,accurateaccountinghelpsbusinessowners considertheramificationsofmakingmajorbusinesspurchasingdecisions. Fromanewbuildingleasetocompanyvehicles,majorexpenditurescanhave a significantimpacton monthlycash flow.When you monitoryour company'saccountingonaregularbasis,youcanmakeaninformed decisiononpurchasingnewassetsforyourcompany. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 TRACKBUSINESSEXPENSES Accountinghelpsyoutotrackyourbusinessexpenses.Whetheryouare attendingindustryconferencesorfuelingyourvehicletomakesalescalls, monitoringyourbusinessexpensesisanessentialpartofowningacompany. Littleexpensescanaddupovertime;awisebusinessownertracksthese expendituresonadailybasisviatheiraccountingsoftware.It’sagood practicetosnapapictureofeveryreceiptyoureceiveandsenditdirectlyto youraccountingsoftware. MONITORBUSINESSFINANCIALHEALTH Accountinghelpsyoutomonitorthehealthofyourcompany.Toomany expenditureswithoutanadequatecashinfluxspellstroubleforanycompany. Ifdetailedaccountingisn'tpartofyourmodusoperandi,howwillyouever know ifyourcompanyissucceeding orfailing?Investingindetailed accountinghelpsyoukeepyourfingeronthepulseofyourcompany's financialhealth. PERSONNELDECISIONS Accurateaccountingrecordscanalsohelpyoumakepersonneldecisions. Knowingwhentobringonadditionalstaff,orwhentolayoffemployees,can meanthedifferencebetweenhavingaprofitableyearandbeingintheredor not.Whenyouunderstandhowmuchyourbusinessisspendingonpayroll Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 (includingpayrolltaxes),youarebetterpreparedtomakegrowthdecisions foryourcompany. ACCURATE RECORD KEEPING FOR FINANCIALINSTITUTIONS AND/OR TAXES Accountingalsohelpsyoukeepaccuraterecordsforfinancialinstitutions andtaxpreparers.Applyingforabusinessloanwillrequiredetailedcompany financials.Ifyou don'tprovideaccuratebusinessbooksto yourtax preparationteam,acompletefiscaltaxauditcouldbeinyourfuture.Notonly doesaccountinghelpyougrowyourcompany,ithelpspreventdamaging eventslikefiscalaudits. MONITORBUSINESSGROWTH Theabilitytomonitorbusinessgrowthisoneofthetopbenefitsofdetailed businessaccounting.Whenyouknowyourassets,liabilities,andon-hand revenues,youcaneasilytrackthegrowthofyourcompany.You'llknow whethersalestargetsarebeingmet,whetheryoursocialmediaandcontent marketingstrategiesareworking,andwhetheryouraccountsreceivableand accountspayableobligationsarebeingmet. Thesearejusteightofmanyreasonsbusinessownersshouldinvestin accounting.Usingfinancialaccountingsoftwaremakesthejobeasierand Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 thereportingmoredetailed.Youcanunderstandtheimpactofyourfinancial decisionsonalldepartmentswhenyouincorporateaccountingsoftwareinto yourcompany.Isthistheyearyoufocusongrowingahealthycompanywith effectiveaccounting. BUSINESS ValidityofResearch March30,2015 | Dr.SharonBrown Researchisatermwithmanyconnotations.Manypeoplethinkthatresearch iseasy:pickatopic,lookitupontheInternet,andwriteapaper.This processisfarfromthetruth.Understandingthefundamentalsofresearchis importantbecausethosefundamentalswillserveasafoundationforthe research.Researchersmustthinkcriticallyandlogicallyduringtheresearch processtohelptoensurethattheresearchisbothvalidandreliable. Researchhastointegratetheconceptsofvalidityandreliabilityandthe functionofcriticalthinkingintheresearchprocess.Validityreferstothe degreetowhichaninstrumentmeasureswhatitisexpectedtomeasure (Leedy&Ormrod,2013).Aresearcherneedstobeconcernedwithtwotypes ofvalidity:(1)internalvalidityand(2)externalvalidity.Internalvalidityand externalvalidityensurethatthestudyhassufficientcontrolstoensure warrantedconclusions. Externalvalidityreferstoaresearcher'scontributiontoknowledgeinsociety. Themagnitudetowhichtheresultsofastudyapplytosituationsoutsidethe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 studyarereferredtoasexternalvalidity(Leedy&Ormrod,2013).Internal validityistheextenttowhichthedesignofthestudyandthedatayielded allows the researcherto draw accurate conclusions regarding the relationshipswithinthedata(Leedy&Ormrod,2013).Toensureinternal validity,researchershavetotakestepstoeradicateotherconceivable reasonsfortheoutcomes,suchasusingacontrolledlaboratorystudy,a doubleblindexperiment,unobtrusivemeasures,ortriangulation(Leedy& Ormrod,2013) Validityisimportanttodeterminingtheaccuracyofdatainaresearchstudy, andresearchershavetoconsiderinternalandexternalvalidityinplanninga research studyto ensure thatthe results are valid and meaningful. Researcherscaninfluencetheoutcomeofastudyinmanyways,andmust designthestudytominimizeexternalandconstructthreats.Inordertobuild aviablestudyitmustincludetheconceptspertinenttoresearchwithan understandingoftheeffectofvalidityissues. Dr.SharonBrownisafull-timefacultymemberatPurdueGlobal.Theviews expressedinthisarticlearesolelythoseoftheauthoranddonotrepresent theviewofPurdueGlobal. References Leedy,P.D.,&Ormrod,J.E.(2013).Practicalresearch:Planninganddesign (10thed.). Boston:Pearson. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Filedin:Business Share: AbouttheAuthor Dr.SharonBrown PurdueUniversityGlobaldeliversafullypersonalized,world-classeducation online that's tailored for adults. We offer 175 programs, including associate's, bachelor's, master's,and doctoraldegrees as well as certificates,inareassuchasbusiness,IT,education,healthsciences, nursing. AppliedAccountingresearchishardtodefinebecauseithasshiftedover time.Asaroughoverview,earlyaccountingresearch(pre-1960s)wasmostly normative(i.e.,arguingforthe“correct”accountingtreatment,orwhat shouldbe).WiththeadventoftheJournalofAccountingResearch,advances infinancesuchastheefficientmarkethypothesis,creationoflargedatasets andthestatisticalabilitiestoanalyzethem (i.e.,computers),andthe publicationofBallandBrown’sseminalworkin1968,accountingresearch movedintopositiveresearch(i.e.,examiningwhatisratherthanwhatshould be).Althoughthischangehashaditscritics,ithasresultedinasignificant increaseinresearchoutput(andmanynewjournals). Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Acynicaldefinitionofresearchis:anypaperthatcitesalotofother accountingpapersmustbeaccountingresearch.This“quickanddirty” definitionrestrictsaccountingresearchtotopicsandmethodologiesthatare wellestablishedintheliterature;itis“safe”butsomewhatlimiting.More rigorously,Oler,Oler,andSkousen(2009)attempttocharacterizeaccounting researchbylookingatthetopics,researchmethodologies,andcitations madebypaperspublishedinasetofsixtopaccountingjournals(AOS,CAR, JAE,JAR,RAST,andTAR).Theirworkcanbecriticized,though,becausethey donotconsiderallaccountingjournals,andbecausetheircategorizationsof topics(6ofthem)andresearchmethodologies(7ofthem)arebroad.In spiteofshortcomings,theirpaperappearstobethefirstthatattemptsto characterizeanddefineaccountingresearch,whichtheydefineasfollows: “accountingresearchisresearchintotheeffectofeconomiceventsonthe processofsummarizing,analyzing,verifying,andreportingstandardized financialinformation,and on the effects ofreported information on economicevents.” Professorstypicallywillchooseasubjectareaandamethodologyinwhich tofocustheirefforts.Subjectareasincludethetopicalareasconsidered undertheumbrellaterm "accounting."Theseincludeinformationsystems, auditingandassurance,corporategovernance,financial,forensic,managerial, andtax. GeneralOverviewofAccountingResearch “Academicresearchlooksathowaccountingaffectstheworldaroundus Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 andhow theworldaffectsaccounting.”TeresaP.GordonandJasonC. Porter Accountingresearchplaysanessentialpartincreatingnewknowledge.The hardscienceshaveproducedmodelsofresearchandtestingthatcanbe usedandappliedovermanydisciplinesincludingaccountingresearch.Using thesemodelsalongwithevidencesuchasfinancialstatements,stockprices, surveys,experiments,computersimulations,andmathematicalproofs,we cangainascientificperspectiveandbasisforthefollowing: Decidingandimplementingnewaccountingorauditingstandards Presentingunusualeconomictransactionsinthefinancialstatements Learninghownewtaxlawsimpactclientsandemployers Discerninghow theaccountingprofessionaffectsthecapitalmarkets throughacademicaccountingresearch Researchersperformtwomaintypesofresearch,positiveandnormative. Positiveresearchisthebranchofacademicresearchinaccountingthat seekstoexplainandpredictactualaccountingpractices. Normativeresearch,incontrast,seekstoderiveandprescribe"optimal" accountingstandards. Researchersusethescientificmethodtosearchforcauseandeffect Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 relationships.By using the scientific method,the researcherhas a systematicmodelthatenablesdocumentationoftheirresults.Themore specifictheresearcherisindocumentingtheirmethods,thebetterothers willbeabletofollowandrepeattheirexperiment. ScientificMethod: Observation:Aswithmostresearch,accountingresearchbeginswiththe researchermakinganobservation,seeingapotentialpattern,orwondering howanactionoreventmayaffectafutureactionorevent. Developtheory:Theresearcherthenusestheseobservationstodevelopa theoryoranexplanationofmightbecausingtheseactionsorevents. Backgroundresearch:Oncetheresearcherfindsaninterestanddevelopsa theory,backgroundresearchonthistheoryisimportant.Thebackground researchistohelptheresearcherdiscoversimilarpasttheories,currentand alternativetheories,whatevidencehasbeen broughtforth and tests performed.Thisresearchwillsavetheresearcheragreatdealoftimeand guidetheirresearch to testa new aspectorhelp resolveareasof disagreement. Use theoryto develop hypothesis:Afterthisbackground research is conductedandexistingtheoriesdiscerned,theresearcherwillusetheir theorytocreateaspecifichypothesis.Thishypothesisshouldfocusonan untestedareaorareaofdisagreement.Additionally,thehypothesisshould makeaspecificpredictionabouthowanactionorconditionwillaffectother actionsorconditions. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Testifhypothesisiscorrect:Withahypothesisdeveloped,theresearcher needstoidentifysourcesofdataanddesignteststoexaminethehypothesis. Thedesignofthetestsshouldaddressthefollowing: Howwellthestudycapturesacause-and-effectrelationship; Howwellthevariablesusedinastudycapturetheideasandeventsinthe hypothesis; Howwelltheresultsfromastudycanbeappliedtoothersettings Examinetestresults:Oncethetestshavebeendesigned,operatedanddata collected,thenextstepistousestatisticalmethodstocomparetheactual resultswiththehypothesizedresultsanddetermineifthereissignificant evidencetoconfirmthehypothesis. Confirm ordisconfirm theory:Aftertheevidencehasbeenexaminedand sensitivityanalysisran,theresearchercanthenconfirm ordisconfirm the hypothesisandtheorythehypothesiswasderivedfrom. AccountingResearchTopicalAreas ThefollowingdefinitionofresearchcomefromaresearchpaperbyCoyne, Summers,Williams,andWood(2010,availablehere). AccountingInformationSystems(AIS) Studieswhichaddressissuesrelatedtothesystemsandtheusersof systemsthatcollect,store,andgenerateaccountinginformation.Usersare definedbroadlytoincludethoseinvolvedincollection,storage,oruseof accountinginformationoreventheimplementationofthesystem.These systemsmaybeelectronicornot.Researchstreamsinclude,butarenot Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 limited to design science,ontologicalinvestigations,expertsystems, decisionaides,supportsystems,processingassurance,security,controls, systemusability,andsystemperformance. ForanexampleseeChrist,Emmett,SummersandWood(2011,available here) ForanexampleseeMyers,Starliper,SummersandWood(2015,available here) Auditing Studiesinwhichthetopicalcontentinvolvesanaudittopic.Thesestudies varywidelyandinclude,butarenotlimitedto,thestudyoftheaudit environment—externaland internal,auditor decision making,auditor independence,theeffectsofauditingonthefinancialreportingprocess,and auditorfees. ForanexampleseeDeFondandZhang(2014,availablehere) ForanexampleseePrawitt,Sharp,andWood(2011,availablehere) ForanexampleseeGul,Wu,andYang(2013,availablehere) ForanexampleseeGlover,Prawitt,andWood(2007,availablehere) Financial Studiesthataddressthetopicalcontentoffinancialaccounting,capital markets,anddecisionmakingbasedonfinancialaccountinginformation. ForanexampleseeFields,Lys,andVincent(2001,availablehere) ForanexampleseeBurton,Starliper,SummersandWood(2014,available Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 here) ForanexampleseeAtwood,Drake,Myers,andMyers(2010,availablehere) ForanexampleseeChristensen,Drake,andThornock(2012,availablehere) Managerial Studiesthatexamineissuesregardingbudgeting,compensation,decision- makingwithinanenterprise,incentives,andtheallocationofresources withinanenterprise. ForanexampleseeIttnerandLarcker(2001,availablehere) ForanexampleseePresslee,Vance,andWebb(2013,availablehere) ForanexampleseeEmett,Guymon,Tayler,andYoung(2015,availablehere) ForanexampleseeBol,andSmith(2011,availablehere) ForanexampleseeChrist,Masli,Sharp,andWood(2015,availablehere) Tax Studiesthatexamine issuesrelated to taxpayerdecision-making,tax allocations,taxcomputations,structuringofaccountingtransactionstomeet taxgoals,taxincentives,ormarketreactionstotaxdisclosures. ForanexampleseeHanlonandHeitzman(2010,availablehere)and ShackelfordandShevlin(2001,availablehere) ForanexampleseeMaydew(2000,availablehere) ForanexampleseeBarrickandAlexander(2014,availablehere) ForanexampleseeKadous,Magro,andSpilker(2008,availablehere) OtherTopicalAreas Studiesthatdonotfitintooneoftheothertopicalareas.Thetopicalareasin Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 thesestudiesvarysignificantlyandincludesuchthingsaseducation, methodologies,law,psychology,history,theaccountingprofession,work environment,etc. AccountingResearchMethodologies Aresearcherwillselectamethodologytodeterminehowtheresearchisto be conducted.There are three main methodologies forresearch in accounting:archival,analytical,andexperimental. Onethingtoavoidwhendiscussingmethodologiesistorefertooneofthe methodsas"empirical"todifferentiatefrom othermethods.Thisismost oftendonebyarchivalresearcherswhorefertotheirresearchasempirical andnottoincludeexperimentalresearchunderthe"empiricalumbrella." Empiricalresearchisresearchthatisverifiablebasedonobservationor experimentation;thus,archivalandexperimentalresearcharebothempirical innature. Analytical Researcherswhoutilizeanalyticalmethodsbaseanalysisandconclusions onformallymodelingtheoriesorsubstantiatedideasinmathematicalterms. Theseanalyticalstudiesusemathtopredict,explain,orgivesubstanceto theory. Forarecentexampleofanalyticalresearchinaccounting,seeGao(2010, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 availablehere) Archival Researcherswhoutilizearchivalmethodsbaseanalysisandconclusionson objectivedatacollectedfromrepositoriesofthirdparties.Alsoincludedare studiesinwhichtheresearcherscollectedthedataandinwhichthedatahas objectiveamountssuchasnetincome,sales,fees,etc. Forarecentexampleofarchivalresearchinaccounting,seeBalland Shivakumar(2008,availablehere) Experimental Researchers who utilize experimentalmethods base analysis and conclusionsondatatheresearchergatheredbyadministeringtreatmentsto subjects.Usuallythesestudiesemployedrandom assignment;however,if theresearcherselecteddifferentpopulationsinanattemptto“manipulate”a variable,wealsoincludedtheseasexperimentalinnature(e.g.,participants ofdifferentexperiencelevelswereselectedforparticipation).Experimental researchcanincludeanalyzingbotheconomicandbehavioralfactors. Forarecentexampleofexperimentalresearchinaccounting,seeMagilke, Mayhew,andPike(2009,availablehere) OtherResearchMethodologies Studiesthatdidnotfitintooneoftheothermethodologicalcategories.The methodologiesinthesestudiesvarysignificantlyandincludesuchthingsas surveys,casestudies,fieldstudies,simulations,persuasivearguments,etc. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Skillsnecessarytobeasuccessfulresearcher Althoughtherehavebeengreatdiscoveriesmadebyaccidentthathave changedthegreatparadigmsofknowledge,academicresearchandthe creationofknowledgeisnotaneventlefttochance.Academicresearch comesfrom masteringofskillsthatenabletheresearchertocarryout researchprocessesthatwillcontributeandprogressthecurrentaccepted knowledgebaseandindustrypracticesandopenupnewideasandareasof researchtofollow. Someoftheskillsnecessarytobecomeasuccessfulresearcherincludethe following: Theabilitytoknowandstayabreastofcurrentworkwithinyourfieldof research. Stayingabreastoftheresearchbeingperformedandthepublicationofsuch work,isimportantasyoufurtheryourownresearch,discovernewquestions andproblemsandcontributetoyourfellowresearchers.Beinginvolvedwith workshopsandpeerreviews,aswellasworkingwithfellowprofessorsand readingthepublicationsinthepeerjournalsaresomewaysinwhichtostay abreastofthecurrentworkintheindustry.Alistingoftopjournalscanbe foundatAccountingJournals Theabilitytounderstandandrecognizeresearchproblems. Researchersneednotonlystayabreastofcurrentresearchbeingperformed andpublished,theyalsoneedtounderstandandrecognizedifficultiesin Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 performingtheirownresearchorthatofresearchperformedbyothers. Theabilitytounderstandresearchcontent. Theabilitytoreadandunderstandthecontentofresearcharticlesisan importantskillforacademicsandpractitionersalike.TeresaP.Gordonand JasonC.Porterhaveagreatlistofhintstoreadingaresearchpaperintheir articleReadingandUnderstandingAcademicResearchinAccounting:A GuideforStudents.Readpartofithere. Theabilitytodiscoverwhereyoucanmakeacontribution,andtobeableto evaluateandre-evaluateyourcontribution. Theabilitytodiscernatopicthatwilladdknowledgetothefieldandtrigger yourinterestsisagreatstrength.Additionally,beingabletoevaluatethe causality,strength,andvalidityofyourresearchisimportant,notonlywhen initiallywritingit,buttoreturnandre-evaluatelaterandseeifitneedstobe editedorexpanded. The ability to master appropriate experimental,mathematical,and computationalresearchskills. Itisnecessarytobuildastrongbaseofmathematicalandstatisticaltoolsto beabletodrawonandenableyoutobuildexperimentsthathavegood constructandinternalvalidity. Theabilitytothinkcriticallyandanalytically. Asyouperform research,theabilitytoexamineassumptions,assess evidence,discernhiddenvalues,andevaluatetheconclusionwillbegreatly utilized.Additionally,theabilitytobreakaconceptorparadigm intoits constituentpartsandthenstudythepartsandfindandevaluatethe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 relationshipsbetweenthosepartsisalsoaskillthatwillfurtheryour researchgoals. Theabilitytoformulateplanstomeetshort-term andlong-term goalsand time-specificdeadlines. Theabilitytofollowgoodresearchpractices. Beingabletodevelopexperimentsorstudiesthatarebuiltongoodsolid researchpracticeswillstrengthentheresearchyoudoandlendcredibilityto yourworkthatfellowuserscanrelyon. Theabilitytodocumentandreportyourwork. Afterthedataisgatheredandanalyzedandconclusionsaredevelopedand confirmed,theresearcherneedstheabilitytoeffectivelycommunicatetheir workinapapersuchasathesispaper.Thedocumentingofotherswhohave workedinsimilarareas,contributedtoyourwork,oryouhaveusedtofurther yourresearchisimportant. Theabilitytocommunicateanddefendacoherentargumenttointerested parties. Effectivecommunicationincludesnotonlywrittenpapers,buttheabilityto addressanddefendyourworkinapublicsettingthatincludesfellow researchersandpractitioners.Totakecriticismwithaviewtoimproveyour workandstrengthenthefieldisdesirable. Theabilitytocriticallyreviewtheworthofyourownworkandtheworksof otherresearchers. Aresearcherneedstobeabletocriticallyreviewtheirownworkaswellas theworkofothersandassessthestrengthsandweaknessesofit. Determineifthereisacausalrelationshipandtoassessthevarioustypesof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 validity.Seeifthereisstrongenoughinternalvalidity–thestrengthofthe controlledexperiment.Evaluatetheconstructvalidity–iswhatisbeing measuredactuallycapturetheideasandeventsinthehypothesis.Isthere goodstatisticalconclusionvalidity–wheneverythingelseisinplace,isthere strongenoughevidencetoproveanactualdifference.Andfinallyexternal validity,nowthatwehaveproventhatthisisvalidinthissituation,howdoes ittransfertoothersituationsandothersubjects.Theseareafewofthe conceptstoanalyzethestrengthofyourownworkaswellasthestrengthof yourfellowresearcherswork. Informationforthesekeypointsandfurtherinformationonresearchskills canbefoundat: GuidelinesonPhDResearchandSupervision,ProfessorRobertoCipolla, UniversityofCambridge; ResearchSkillsRequiredbyPhDStudents,Cloudworks; ReadingandUnderstandingAcademicResearchinAccounting:AGuidefor Students,TeresaP.GordonandJasonC.Porter,UniversityofIdaho. Howaccountingresearchcanmakeadifferenceintheworld Affectpractice(usuallyhighleveldecisionmakers,throughtextbooks) Mentorresearchers'thinkingwhothenchangeworldthroughconsulting, professionalservice, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Likenearlyeverythinginlife,accountingcareershavepositivesandnegatives. Butthetruthisnotthatthecareeritselfisgoodorbad,butratherthatit’sthe rightfitforcertainpeopleandnotforothers. Thinkofitlikeshoppingforanewcar—somepeopleseekdependabilityand safetywhile others crave performance and speed.Neitheroption is inherentlygoodorbad,buteachvehicleisabetterchoicefordifferenttypes ofpeople. Whatyou’llthinkofanaccountingcareerdependsonyourpersonality, workingstyleandlifepriorities.Onceyouunderstandthepossibleprosand consofanaccountingcareer,youcanmakeaninformeddecision. Soisaccountingagoodmajorforyoutopursue?Takealookatthesepros andconsofaccountingcareerstosteeryourselfintherightdirection. Prosofanaccountingcareer There’salottoloveaboutacareerinaccounting.Learnmoreaboutafewof theperksyoucanexpectbypursuingthisprofession. 1.Thereisaclearcareerpath Ifyou’restudyingaccounting,you’relearningpracticalskillsaboutcrunching numbersandanalyzingcoststhatemployersneed.Thisgivesyouamuch clearercareerpathcomparedtosomeonewhochoosestostudyEnglishor philosophywherethepotentialcareeroutcomesarehardertodefine. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Ifyouchoosetopursueanaccountingdegree,you’llhaveaprettysolididea ofwhereyourcareerwilltakeyou.Thoughtherearedifferenttypesof accountantsinthefield,thedutiesyou’llhaveandskillsyou’llusewillbe generallythesame,meaningyouknowwhatyou’resigningupfor. 2.It’sastableandgrowingjobfield Accountingisnotaprofessionthat’sgoingawayanytimesoon.Virtually everybusinessneedsanaccountantoranentireaccountingteam,andeven theaveragepersonhasreasonstohireanaccountantfromtimetotime. Thejobprospectsinaccountingareprojectedtogrowinthecomingyears. Aslongaspeopleneedhelpwithtaxesandaslongasbusinessesexist, therewillbeaneedforaccountants.TheBureauofLaborStatistics(BLS) projectsthatemploymentintheaccountingfieldwillgrow10percentfrom 2016 to 2026.This is fasterthan the nationalaverage rate forall occupations.1 3.You’llhavethepotentialforprofessionalgrowth Aftergraduation,youmightbeginasanentry-levelassociate,butthe potentialforgrowthcanbegreat.Manyaccountinggraduateswillstartas staffaccountants,juniorauditorsinpublicaccountingorassistantsinthe controller’sofficeinprivateaccountingastheybegintoplottheircareer paths. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Aftergettingestablishedandgainingexperience,careeradvancementcanbe achieved through on-the-job performance and additionaleducation or certifications,likebecomingaCertifiedProfessionalAccountant(CPA). Lookingformorespecifics?CheckoutAccountingCareerPaths:The NumberCruncher’sGuide. 4.Theearningpotentialisfavorable Likeanyone,youwantacareerthatallowsyoutoprovideforyourselfand yourfamily.Sohowdoesanaccountingcareerstackup? Themedianannualsalaryforanaccountantin2017was$69,350,according totheBLS.1Infact,theBLSreportsthatthetop10percentofearnersmade upwardsof$120,000.Againstthenationalmediansalaryof$37,040,that’s animpressiveamountofupside.1 Additionally,manyfull-timeaccountantsreceivegreatbenefitssuchas healthcare,vacationtime,retirementplansandmore.TheBLSreportsthat mostaccountantsworkfull-time,aroundorover40hoursaweek. 5.Youcanworkwhereyouwanttowork Wherewouldyouliketolive?WestCoast,EastCoastorsomewherein between?Bigcityorsmalltown?Inamountainrangeorbytheocean? Withsomecareerfields,youmayneedtouprootyourlifeandmovetoan Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 industryhubtofindwork.Accounting,however,tendstobeeverywhere. From farmers to governmentorganizations to software development companies,seeminglyeveryonecouldusetheservicesofanaccountant. Thisgivesaccountantsafairamountofflexibilitywhenitcomestochoosing wheretheywanttosettledown. 6.Thereisentrepreneurialpotential Startingyourownbusinessisthesameoptionineveryprofession.It’shighly unlikelythatapilotwilleverlaunchtheirownairline,butaccountants establishtheirownfirmsroutinely.Thedreamofbeingyourownbossisalive andwellintheprofessionofaccounting.Ifyouhavesomeofthat entrepreneurialspirit,startinganaccountingfirm couldbeagreatwayto advanceyourcareer. Startinganaccountingfirm,likestartinganybusiness,hasitsrisksandmay notbeforeveryone,butit’sdefinitelygoodtohavethisasanoption. Consofanaccountingcareer Justlikeanyindustry,workinginaccountingdoeshaveitsdrawbacks.Geta tasteofsomeofthelessappealingfactorssoyoucandecideifit’stheright fit. 1.Theeducationisongoing Ifyoubecomeanaccountant,thelearningdoesn’tstoponceyou’veearned yourdegree.Toprogressinyourcareer,you’llneedtoplanoncontinuing Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 education—atleasttokeepupwithchangesintheindustryandimportant certifications. Aftergettingstartedasanentry-levelaccountant,youshouldlookatwhat typeofcertificationsyoumightwanttoearn.Therearedifferentaccounting credentials,includingtheCMA(CertifiedManagementAccountant),CPA (Certified Professional Accountant) and CFA (Chartered Financial Accountant).Thesecredentialswillalltakeasignificantamountoftimeand efforttoobtain,soit’simportanttoknowwhatyou’regettingintoaheadof time. 2.Theworkcanseemdull Howmanyworld-famousaccountantsdoyouknowof?Ifyou’restrugglingto thinkofone,there’sareasonforthat—accountingisn’tusuallyseenasa “glamorous”field.Butrecognitionandglitzaren’teverything.Theday-to-day workrequiresalotofinvestigatingandmath,whichcanbeboringtosome butinterestingtoothers. Thisisoneofthosequestionsinwhichyou’llneedtolookwithinyourselfand answerhonestlyaboutwhatworksforyou.Learningmoreaboutwhat accountantsdoonadailybasiswillhelpyoudeterminewhetherornotthe workappealstoyou.Checkout“WhatDoAccountantsDo?ALookatLife BehindtheLedger”formoreadditionalperspective. 3.Thereisabusyseason Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Accountingistypicallyastandard9-to-5job,exceptforcertaintimesofthe yearwithimpendingdeadlines.ThemostnotabledeadlineisApril15fortax accountants.Formosttaxaccountants,theheavyliftingstartsafterNew Year’sDayrightuptoApril15. Duringthebusyseason,longdaysandweekendworkbecomethenormas accountantsworktogettheirclients’financesinorder.Buttheplussideis thatthingsslow downsignificantlyafterthattimeperiod.Inthisway accountingcareersoffersomevarietyintheyearlyschedule. 4.Theworkcanbestressful Whenyou’reresponsibleforanorganization’sfinances,thereisboundtobe somepressure.It’sjustpartofthegame.Butthatpressureandstresscan haveanimpactonyouroverallmentalhealth,anddeservesconsideration. Thesenegativeexperienceshavealottodowithwhereanaccountantworks andthespecificsoftheirroles.It’sasafebettosay,themoreimportantyour positionisandthemoremoneyyouworkwith,themorepressureyouwill faceonthejob.Butwhetherthatpressureresultsinnegativelevelsofstress dependsonyourpersonality. Trytohonestlyassessyourattitudetowardpressureandheavyworkloads.If youdon’tstresseasyordon’tmindbeingalittlehigh-strung,workingasan accountantmightnotbotheryou.Ifyouknow you’reeasilyfrazzled,it’s possiblethatanaccountingcareerisn’ttheidealchoiceforyou. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 So,isaccountingagoodcareerchoiceforyou? Nowthatyou’vegotabettergraspoftheprosandconsofanaccounting career,takethetimetoevaluatewhetherthisisthefieldforyou.Ifthepros areoutweighingthecons,youmightwanttotakeacloserlookathowto prepareyourselfforajobinthisfield. Areyoustillasking,shouldIbecomeanaccountant?Itmighthelptoknow whatkindofcommitmentisinvolved.Learnmoreaboutwhatittakesto launchthiscareerinourarticle“YourStep-by-StepGuideonHowtoBecome anAccountant.” 1BureauofLaborStatistics,U.S.DepartmentofLabor,OccupationalOutlook Handbook, [career information accessed February 12, 2019] www.bls.gov/ooh/.Informationrepresentsnational,averageddataforthe occupationslistedandincludesworkersatalllevelsofeducationand experience.Employmentconditionsinyourareamayvary. EDITOR’SNOTE:ThisarticlewasoriginallypublishedinJuly2014.Ithas sincebeenupdated BriannaFlavin BriannaisacontentwriterforCollegisEducationwhowritesstudentfocused articlesonbehalfofRasmussenCollege.SheearnedherMFAinpoetryand teachesasanadjunctEnglishinstructor.Shelovestowrite,teachandtalk aboutthepowerofeffectivecommunication. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 References 9ThingsYouDidn’tKnow AbouttheRasmussenCollegeAccounting Programs WillErstad|12.09.2019 6QualitiesofanAccountantThatYouMightAlreadyHave HannahMeinke|08.05.2019 ShouldIBeanAccountingMajor?TheInfoYouNeedtoDecide AshleyBrooks|06.17.2019 Mythvs.Reality:WhatIsBeinganAccountantReallyLike? WillErstad|06.03.2019 ThispieceofadcontentwascreatedbyRasmussenCollegetosupportits educationalprograms.RasmussenCollegemaynotpreparestudentsforall positions featured within this content. Please visit www.rasmussen.edu/degreesforalistofprogramsoffered.Externallinks providedonrasmussen.eduareforreferenceonly.RasmussenCollegedoes notguarantee,approve,control,orspecificallyendorsetheinformationor productsavailableonwebsiteslinkedto,andisnotendorsedbywebsite owners,authorsand/ororganizationsreferenced.RasmussenCollegeisa regionallyaccreditedprivatecollege RasmussenCollegeisaregionallyaccreditedcollegeauthorizedtooperate Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 asapostsecondaryeducationalinstitutionbytheIllinoisBoardofHigher educa iisafoundationalelementofbusiness,linkedtoprovidingcontrol,stability, andaccountabilitytoacompany’sfinances.It’sarolethatwilllikelyalways beindemand.TheU.S.BureauofLaborStatisticsprojectsthatthe accountantandauditorjobmarketwillgrowby10percentbetween2016and 2026.Evenso,studentsmaystillaskthemselves,whystudyaccounting?The answergoesbeyondaprojecteduptickinjobavailability. WhyAppliedAccountingIsImportant Inmanyways,accountingisthebackboneofbusiness.Itsroleistotracka company’sfinancesintheirnumerousforms,from credits,debits,and profitabilitytopayrollandtaxfiling.Itisafielddrivenbyanalyticsand analyticalinterpretations,andtheinformationderivedfrom suchfunctions providesabusinesswitharecordofitsfinancialhealthandstability. Financialreportsgeneratedfrom thisinformationcandriveacompany’s strategiesinboththeshortandlongterm. Therearekeyoccupationsintheaccountingfieldthatcollectivelyworkto pushabusinesstowardlong-term stability.Accountants,forinstance,are commonlychargedwithexaminingfinancialrecordstoensureaccuracyand to spotfinancialinefficiencies,and they’re also typicallytasked with overseeingcorporatetaxpreparation.Controllerscommonlysupervisea company’saccountingdepartment,from departmentsdirectlycorrelatedto Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 businessexpenditureslikeaccountspayabletoperipheraloneslikepayroll.A chieffinancialofficer(CFO)isan executivetasked with analyzing a company’sfinancialhealthandusingthatinformationtoplotcurrentand futurestrategiesforgrowth. WhereCananAccountantFindWork? Thetypeofjobsthatapersonwithanaccountingdegreecanholdgenerally dependsonthetypeofdegreeearned.Whileit’spossibletogetentry-level accountingpositionswithabachelor’sdegree,mostemployersprefertohire peoplewithadvanceddegreesforhigher-levelpositionssuchasaccountants andcontrollers. Forthesepositions,it’scommonlyrequiredthatprospectiveemployeeshave somelevelofcertificationorlicensure.Suchdocumentationprovides employerswithvalidationthatthecandidatehasafirm graspofthecore competenciesrequiredtoexcelinagivenrole.Insomecases,italso providespotentialemployeeswithanecessaryrequirementtocarryoutthe dutiesoftheirposition.Forinstance,anyaccountantwhofilesareportwith theSecuritiesandExchangeCommission(SEC)isrequiredbylawtobea CertifiedPublicAccountant(CPA). Theserequirementscanopenthedoorstoseveralaccountingpositions spreadamongmanyindustries.Degree-holderscanfindopportunitiesinthe privatesector,from healthcareand educationto manufacturing and insurance.Insomecases,privatesectoraccountantsmaybetaskedwith Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 becomingfamiliarwiththeirparticularindustry,whichmayleadtoalong accountingcareerinthatfield. Moreindependencemaybefoundbychoosingtoworkforanaccounting firm.Thosewhoworkinthiscapacityarepartofanorganizationthatishired toprepare,maintain,andauditclients’financialrecordsandstatements. Theycanalsohelpbusinessesandindividualspreparepersonaltaxreturns. Thisdiverseportfoliocanallowanaccountanttointeractwithawiderange ofindustries,whichcouldmakethejobmoreinteresting. Accountants may also seek employmentatfederal,state,orlocal governmentagencies.Jobresponsibilitiesvarydependingonthelevelof government.Forinstance,federalaccountantsmaybecalleduponto managepublicfunds,conductauditsofgovernmentagencies,orinvestigate high-levelwhite-collarcrimes.Federalagencieswithlargeaccountingstaffs includetheInternalRevenueService,theU.S.GovernmentAccountability Office(GAO),andtheU.S.DepartmentoftheTreasury.Stateandlocal governmentaccountants,meanwhile,maybeaskedtomanagetheuseof stateandlocalrevenuesandinvestigatefraudatthelocallevel. Accountantscanalsotakeamoreentrepreneurialapproachtotheircareers byopeningtheirownfirms.Someupstartaccountingfirmsdistinguish themselvesfrom establishedcompetitorsbydevelopingnew typesof servicesbeyondmoreconventionalworksuchasaudits,compliance,payroll, andtaxes.Entrepreneurialaccountantsmayalsocreatealternativefee Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 structures,markettodifferenttypesofclients,andtakemorestrategicrisks intheirbusinessmodels. TheRiseofTechinAppliedAccounting Advancesintechnologyhavefundamentallychangedseveralaspectsof business,andaccountingisnoexception.Techinnovationssuchasreal-time data,remoteconferencemeetings,mobileapps,andevolvingaccounting softwarehavemadeitpossibleforaccountingfunctionstobecomemore efficientthaninthepastandevenautomated.Theseprogramsinclude standaloneproductssuchasQuickbooksandQuicken,onlineoptionslike Freshbooks,andenterprisepackagessuchasSAPorSage.Becauseofthis, it’simportantthatthoseenteringtheaccountingfieldbecognizantofthe technicalevolution,astheymaybeaskedtohelpresearch,analyze,and implementvarioustypesofaccounting-driventechaspartoftheirjobs. ANecessaryPosition Evenasaccountingbecomesmoreofatech-drivenprocess,theroleofthe accountantwillalwaysbeindemand.Asthejobmetricsproducedbythe BLSindicate,demandforqualifiedaccountantsisn’texpectedtowane.While thisbrightjobmarketmaymakestudyingaccountingagreatoption,the versatilityofpotentialjobopportunitiesinthefieldcanmakeacareerinthe professionattractiveinmanywaysbeyondprojectedjobgrowth. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 RecommendedReading: FinanceorAccountingDegree:WhichOneIsRightforYou? 4CareerOpportunitieswithanAccountingDegree HowtoBecomeaCertifiedPublicAccountant Sources: AccountingToday,“TheRiseoftheAccountingEntrepreneur” AccountingTools,“TheDifferenceBetweenPublicandPrivateAccounting” ACFE,GovernmentAccountant BureauofLaborStatistics,AccountantsandAuditors Forbes,“How TechnologyIsChangingtheAccountingandBookkeeping Industry” HoustonChronicle,“PrinciplesandImportanceofAccountingforaBusiness” JournalofAccountancy,“TechnologyTrendsforAccountingFirmLeaders” Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 OhioUniversity,OnlineMasterofBusinessManagement. ImportanceofAppliedAccountinginManagementDecisionMaking Torunabusinessyouneeddata,records,reports,analysis,accurate information aboutassets,debts,liabilities,profits;and thatis why Accountingis Importanceforanybusinessactivities. Theaccountinginformationisveryimportantforthemanagementorthe decisionmakingthebodyofanorganization. Managementcannotmakethedecisionwithoutreasonableinformationfor backingitup. Tomakeadecision,ithastobebasedongenuinefactsandfigures.For makingadecisionateverylevelofmanagement,informationiscrucial. Accountinggivesmanagementinformationregardingthefinancialposition ofthebusiness,suchas;profitandloss,costandearnings,liabilitiesand assets,etc. Thatiswhytheimportanceofaccountinginbusinessisverylarge. Formakingtherightdecision,Managementdependsonstatisticaldataand informationthataccountingprovides. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 The main objectofAccounting is to record financialtransactions systematicallyinthebooksofaccountsandtofindouttheprofit-lossand financialpositionofabusiness. Ascertainmentofprofit-loss and financialposition,interpretation and analysisofaccountsandstatements,developmentofaccountingsystem,a collectionofstatisticalandeconomicdata,formulationoffinancialprinciples andfinancialplanningandcontrollingresultsasperplan,etc.arethemain functionsofAccounting. Inthemodemage,Accountingisdirectlyrelatedtofinancialmanagement. Duetoentityconceptandmanagement,joint-stockCompany,developed means ofcommunication and internationalbusiness,etc.scopes of businesshavesomuchexpandedthatthemanagementistodependon variousaccountingdataandinformationfortakingvariousdecisions. Accountingpreventsthemisuseofassets,increasesproductionandprofit, controlscostsandhelpsincreasetheefficiencyoftheoverallmanagement. Theroleofmanagementisveryimportantintheoveralldevelopmentofa businessorganization. Thefunctionsofmanagementareplanning,organizing,collectingbusiness elements, motivating, coordinating, controlling and budgeting, etc. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Successfulcompletionofthesefunctionsofmanagementdependsonan efficientaccountingsystem. Accountingisacontinuoussystem thatshowsthefinancialpositionofa businessentitybyidentifyingtheeconomiceventsandrecording,analyzing andpresentingthem. Accountinggivesinformationabouttheeconomicentity’sfinancialposition. ImportanceofAccountinginpartsofBusinessaredescribedbelow; ImportanceofAccountinginPlanning Properplanningisverymuchneededforthesuccessfulcompletionof variousmanagementactivities. This planning’s cash planning,sales planning,procurementplanning, determiningthequantityofstock,developmentplanning,fixinguptarget- profit,etc.areverymuchdependentonaccountingdataandinformation. AccountingImportanceinOrganization Accountingplaysaveryvitalroleintheproperexecutionoftheimportant functionsofthemanagementorganization. Accountinghelpsmanagement-organizationbyprovidinginformationlike percentage of profit over the capital,capitalinvestment position, managementefficiencyincontrolling,etc. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 AccountingImportancefor Motivation Labor-employeesaretobemotivatedforachievingexpectedperformance. Financialrewardisoneofthemainmotivatingfactorsofwork. Themanagementistobeawareofthefinancialpositionofthebusinessfor providingfinancialbenefits.Accountinghelpsmanagementbyproviding necessaryinformationfortakingproperdecisions. AccountingImportanceforCo-ordination Oneofthemainfunctionsofmanagementistoachievethefinaltargetofthe business by coordinating various activities ofdifferentdepartments. Accountinghelpsincoordinatingvariousactivitiesofdifferentdepartments ofthebusiness. Italsohelpsthemanagementintheadjustmentofpurchasewithsales,an expenditurewithincome,saleswithdebtreceivablerealization,etc.toa greatextent. AccountingImportanceinControl Themainfunctionsofmodemmanagementareplanningandcontrolling. Controllingisessentialforthecompletionofactivitiesaccordingtoplan. Accountingcanhelpmanagementmuchincontrol. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 AccountingImportanceMediaofCommunication Accounting plays a vitalrole as a media in communicating various informationfromdifferentdepartments,business,andmanagementplanof actionstovariousdepartments. Forinstance,inthemodemage;accountingisregardedasthebestmediaof communicationinsupplyinginformationtomanagementregardingpurchase andstock,timeofpurchase,costofpurchaseandsalesprice,etc. Besides,thefunctionofAccountingistocollectandprovideinformation aboutthebusinesstovariousinterestedparties. AccountingImportancein Budgeting Thepreparation ofvariousbudgetsisessentialto run thebusiness successfully.Thehistoricalinformationwhichisneededinthepreparationof thebudgetissuppliedbyAccounting. AccountingImportancein ProfessionalAdvice Anefficientandhonestaccountanthelpsthemanagementwithvaluable professionaladviceforthedevelopmentofitsbusiness.Inthemodemage withthecomplexitiesofbusinessmanagementhasalsobecomecomplex. Inthisaspect,theroleofaccountingisveryimportant.Theefficiencyof managementdepends on the efficientuse ofaccounting data and information.Inthedevelopedcountriesaccountantsareregardedasefficient Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 andsuccessfulmanagers. Inthemodem age,inbigorganizationsaccountantsareincludedinthe managementcommittee.ItcanbesaidthatAccountingandManagement areinterdependent.Accountingisanessentialtoolformanagement. Managementisuniversal. Itisrequiredateverystepofanorganization.Andaccountinginformationis veryrequiredformanagement.Accountingaidsmanagementinplanning, organization,motivation,coordinationcontrol,budgeting. Accounting delivers the financialand economic information thatan organizationmanagingprocessisneeded.Managementistheinternaluseof accountinginformation. Itthiscompetitivebusinessworld managementhasto beswiftand dexterousinitsdecisionmaking. Accounting givesinformation thatenablesthe managementto make importantdecisionsforthebusiness.Accountingisanimportanttoolfor managementasit’sregardedasrequiredbymanagement. Accountingisoneofthefundamentalactivitiesofanybusiness.Withoutit,a companywouldbesimilartoablindpersondrivingahigh-speedcar.They Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 mayknowhowtodobusiness,buttheywouldbeblindtoimportantsignals thatAccountingcangivethem. However,itisnotonlybusinessesthatneedAccountingforthemtosurvive. Unbeknownsttomany,evenregularpeoplelikeusareusingiteverysingle day.Weuseaccountingtocheckourfinances,manageourbills,andevenfor somethingassimpleasbuyinggroceries. “Accountingisthesystematicandcomprehensiverecordingoffinancial transactionspertainingtoabusiness,anditalsoreferstotheprocessof summarizing,analyzing and reporting these transactions to oversight agenciesandtaxcollectionentities.” Althoughitisspecificallyaboutbusinesses,byreadingit,youshouldahint onhowitappliestoourlives.LetustrytousethisdefinitionofAccounting onsomethingweoftendoinourpersonallives,namelygroceries. HowWeUseAccountingEveryday Whencookingsomethingathome,thefirstthingweoftendoischeckifwe haveanysuppliesleft.Ifnot,thenextthingwe’ddoislistdownalltheitems thatwewillpurchaseinthestore. Afteryougetallthethingsyouneed,youproceedtothecashiertopaythem thetotalpriceofyourgroceries. Finally,yourigorouslycountyourchangetomakesurethatthereisno Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 overageorshortage.Ifyoufindany,youaremostlikelygoingtoapproach thesalespersontocorrecttheerror. We’reyouabletoidentifywhichpartswereactionsyoudidwererelatedto accounting?Ifyes,thengoodjob!Butifnot,thenhere’sasimpleexplanation onhowgroceriesisrelatedtoaccounting.Summarizing;bylookingatyour refrigerator,youwerealreadysummarizingwhichitemsyouwillbuyand whichonesyouwillnot. Analyzing;theactofcountingyourchangetoknowwhethertheygaveyou toomuchortoolittleislikeanaccountantinvestigatingiftheirbusinessis receivingthecorrectamountofcashorrevenue(auditing). Reporting;lastly,reportingiswhenyoutrytocommunicateyourdatatoother parties.Hence,whenyouexplainedtothecashierthatshegaveyoutoo muchortoolittlechange,youarereportingtoherbasedonhow you analyzedwhatyoupreviouslysummarized. Witheverychoicewemake,whetherformajororminordecision,weare unconsciouslyusingtheprinciplesofaccounting.Hence,itisaninescapable partofeverybody’slives.Nevertheless,therearealsootherwaysthatyou couldapplyaccountingtomakeyourlifebetterorearn/savesomemoreof thatsweet,sweetmoney. OtherWaysYouCanApplyAccountingInLife Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 BudgetingYourMoney Mostcompanieshireaccountantsatthebeginningofeverybusinesscycleto helpthem determinethebestwayforthem tospendtheirexistingassets. Thereasonforbudgetingisthatitwouldassistthemtoavoidwastingtheir moneyorresourcesduetopoorplanning. Privatepeoplecanusethebudgetingprinciplesinaccountingtohelpthem allocatetheirsalaries.Furthermore,itcouldhelpthem avoidunexpected shortagesduetooverspending.Budgetingourexpensesarenotjustlimited tolongtermthingslikeeducation,orretirement,butalsotothingsthatyou engagedailylikeyourfareormeals. TrackingYourExpenseAndIncome Afterwebudgetourexpenses,itisimportantthatweknowhowtofollow throughitbytrackinghow wespendourmoney.Trackingismoreofa continuousactionthatweneedtodoeverytimemoneyleavesorentersour pockets. Bytracking ourexpenses,we can adjustourbudgetaccordinglyto accommodatenewplansorinformationthatwasnotavailablewhenwefirst budgetedourmoney. SavingForTheFuture Thebestcasescenarioafterbudgetingandtrackingyourexpensesishaving someleftovermoneythatyoucansave.Savingsaretheresultofwell- Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 plannedbudgetsandcarefultrackingofexpenditures.Itallowsyouhave someleewayfornextmonthforemergenciesandunexpectedexpenses. Furthermore,bybeingabletosavesomemoney,youcanbemoreassured thatthereisasmallerpossibilityofyouhavingfinancialcrises. InvestingToMakeMoreMoney Lastly,ifyouwereabletosaveenoughmoneyduetofollowingthefirstparts ofthissection,thebestmoveforyouistoinvestitletyourmoneygrowon itself. Youcaninvestyourmoneyinpassiveinvestingplatformslikestocks,forex, bondsandmore.Youalsohavethechoicetostartupabusinessthatyou thinkwouldhelpyoumakemoremoneythanyoualreadyhave. Therearemanyoptionsforanindividualtoinvest,allofwhichwillneedfor youtoapplymoreaccounting.Lastly,itisalsoatthispointthatyou’llneedto startconsideringaskingforthehelpofprofessionalaccountants. Regardlessofhowyouuseaccountinginyourlife,theAldarisCPAGroupis heretohelpyougrowyourpotential. Whyaccountingskillsareimportantforyourprofessionalandeverydaylife ByFiDarby|19February2018 Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Canyouuseyouraccountingskillsinotherareas?Ofcourseyoucan!It’s smallwonderaccountingisoftenreferredtoasthelanguageofbusiness;if youcannotunderstandthelanguageofaccounts,statementsandreports, thereisalargeportionofbusinessyouwillbeeffectivelyilliteratein.Itcould bearguedthatthegoalofanyestablishmentistosecuremoneytoensure continuedfunction. Soifweconcludethateveryorganisationanditsvariousdepartments dependontheorderedmeasurement,recordingandcommunicationofits funds,itbecomeseasytoseewhyattainingbasicaccountingskillswouldbe notonlyanadvantage,butoftenarequirementforanyprofessionalposition inacompetitivejobmarket. Butwait,whatareaccountingskillsgoodfor? Accountingcomesinallshapesandsizesincludinghomeaccounting, managerialaccountingandsmallbusinessaccounting.Basicaccounting skillscanbeusefultomostindividualdepartments,forexample,haveyou everconsideredthequestion,‘How doesaccountingrelatetohuman resources’?Botharefundamentalareasinanycompanyandappearto functionindependently,buttheirrolesareinextricablylinked. Employeesandhumancapitalmanagementplaysahugepartincommercial success,andthecostoftheirsalariesandrelatedhumanresourcesissues hasabigimpactonprofitability.Ifyouarelookingtoupdateyourskillset withan accountingonlinecourse andgiveyourresumeabitofadditional Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 appeal,beingabletoofferevenbasicaccountingskillsislikelytogiveyou theedgeoveryourrivals. Understandingyourbusiness Onewaytoconsiderwhetheryouunderstandyourbusinesswellenoughisto imaginethatyouarerecruitingsomeonetolookafteritforyou.Whichskills wouldyoubelookingfor,wouldyoubeaftersomeonewithbasicaccounting skills,wouldyou,inallhonesty,necessarilyemployyourself? Businessesarecomposedofmanyinterrelatedpartsanditisimportantthat anymanagerorsupervisorhasanelementofunderstandingofallofthese andappreciatesthedifferencebetweenbusinessaccountingandmanagerial accounting. Differentaspectsofyourbusinessthatyoushouldunderstandinclude: Yourbusinesscompetition–nobusinessrunsinsegregationfrom its competitors Yourcustomers–understandtheirneedsandwantsandkeepaheadof these Yourbusinessprocesses–toenableyoutomaximiseefficiency Yourbusinessorsmallbusinessaccounting–whereyouarelosingand gainingmoney Yourbusinessmodel–yourstep-by-stepstrategyforprofitability Ifyouarelookingtoupdateorformaliseyourskillsonanyofthesebutare Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 worriedabouthowyouaregoingtofitupskillingintoabusyschedule,then anonlinecourseinaccountingormanagementmightbeagoodrouteforyou. CanIgettheskillsIneedonline? Onlinetrainingisflexibleandcanbestartedtosuityouandcompletedatany timeofday.Youcanworkthroughassignmentsinablockorspreadthem outaccordingtoyourschedule.Wehaveahugerangeofbothbusinessand accountingqualifications;feelfreetobrowsethroughallofthembutlookat thecoursesbelowtogiveyouanideaofwhatwehavetooffer. CertificateIVinSmallBusinessManagement(BSB42518) AnotherCertificateIVcourse,whichdeliversthepracticalandtheoretical skillsneededbysmallbusinessmanagersandowners.Thiscourseincludes someelementsofsmallbusinessaccountingandsuggestedoutcomes involvearangeofentrepreneurialandbusinessmanagementareaseitherfor thosenewtotheserolesorthosewishingtorefreshtheirskills.Itcomprises 10unitsofcompetencyincluding: Establishandmaintainapayrollsystem Refineandstrengthenasmallbusiness Introducecloudcomputingintobusinessoperations Importantmanagementskills Notonlyaremanagersresponsibleforensuringthesmoothrunningand profitabilityofabusiness,theyarealsoresponsibleforguaranteeingthat employees’skillsareutilisedtomeetthesamegoals.Eachmanagerhas Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 theirownstyleandtherangeofmanagementskillsisvast,buttherearea few keyareasthatallmanagersshouldaim tobothunderstandand demonstrate: Problemsolving–spottingproblemsbeforetheyemergeisvital Communication – allbusinesspersonnelworkwithin asophisticated communicationweb Innovation–inarapidlychangingworld,keepingaheadofthegameisa must Professionalism –managerswithhighstandardscanexpectthesameof employees Motivation–motivationalinteractioncanincreaseproductivityandemployee satisfaction Managerialaccounting–understandinghowtomakesuccessful,financially baseddecisions Doyouwantbobeamanager?Youneedaccountingskills! Ifyouarelookingtoprepareyourselfforamoveintoamanagerialrole,you willbeexpectedtopossessnotonlytheabovesoftskillsbuttobeableto provideallrequiredinformationforimprovingdecision-makingprocessesin theformofdocumentsandreports. Management accounting skills enable managers to achieve a company's goalsby assessing andevaluatingthesuccessorfailuresofthe business'sefforts.Managersareexpectedtobeabletolookatinternal financialreportsandmakechangeswithinthecompanytoimproveon Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 outcomes. Expandingyourskillsetfornon-accountingroles Importantineverydaylifetoo. Settingabudget. Whataboutaccountingwithinthehousehold? Evenifyouworkinajobrolethatdoesnottraditionallyencompassbasic accountingskills,youwillfindthatamorein-depthlevelofaccountingskills canmakeabigdifferencetothewayyouviewsituationsandmakebusiness decisions. Financeunderpinseverythingthateachmemberofabusinesscommunity achieves,anditisonlypossibletogainanunderstandingofhowfinancial decisionareappliedwithinyourbusinesswhenyouunderstandbasic businessorsmallbusinessaccountingandmaybeevensomeelementsof managerialaccounting. 1.Importantineverydaylifetoo. Onceyoustarttounderstandtheimportanceofbasicaccountingskillsitis onlyasmallsteptoappreciatinghowusefultheseskillscanbeforeveryday life.Toomanyofusspendwithoutthinking,havelittleornothingintheway ofsavingsplansandfailtoinvestinourfutures.Accountingtechniquescan helpusalltomakefinancialdecisionsbasedonrealisticsummariesrather thanup-in-the-airguesswork. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 2.Settingabudget. Ifyouareonabudget,homeaccountingcanreallyhelpyoutospread paymentsandmakesimplebuteffectivechangestoyourspending.Ifyou arecurrentlydoingfinanciallywell,homeaccountingisessentialtoensure thatyoumakethemostoftheinvestmentandsavingopportunitiesthat presentthemselves. 3.Whataboutaccountingwithinthehousehold? Formanypeople,becomingfamiliarwithbasichomeaccountingsoftware willhelpthemunderstandtheirownfinancesbetter,allowingthemtotrack spendingandsavings,setbudgetsandevendosomeinvesting.Ifafter havingago,youfeelthatthesesoftwareapplicationsorappsarealittleover yourhead,maybeitistimetotakeoneoftheabovecoursesinaccounting, soyouarebetterpreparedtohandleyourownfinances. Howcanyougetintoaccounting? Basicaccountingskills,smallbusinessaccountingskillsorevenmanagerial accountingskillsareanassettoanyoneandcaneasilybegained,atany level.Ifyouarestrugglingtomakeyourmindupaboutwhichcourseisright foryou,contactouradviceteamorifyouwantabitmoreinformation about thedifferencesbetweenCertificatesandDiplomas,findoutmorehere. Ifyouarelookingforsomesuggestionsonappstousetomanageyourown personalfinances,readourarticleon 10WaystousetheInternetto Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 AutomateandSimplifyYourLife. VIEWALLDEVELOPYOURCAREERARTICLES SmallBusiness»Accounting&Bookkeeping»Accounting» Financial&AccountingSkills byJohnFreedman Manysmall-businessownersneedtobeajack-of-all-trades.Asabusiness grows,thecompanygetsmoreofanopportunitytohireemployeestofocus onadministrativetasks,butinthefirstfewyears,thesmall-businessowner seemstoneedtodoitall.Byunderstandingsomeofthefinancialand accountingskillsneededtorunasmallbusiness,youcanimproveyour businessdecisionswhentheaccountingisunderyourwatch. TechnicalAccountingSkills Successfulsmall-businessownersshouldpossessabasicleveloftechnical skillsneeded in accounting.Technicalaccounting knowledgeincludes knowinghowtoclassifyandrecordtransactions,andhowaccountingentries willaffectthecompany'sfinancialstatements.Evenmoreimportantthan generalknowledgeoftechnicalaccountingistheabilitytobeabletoconduct accountingresearchandfindsolutionstoaccountingissues.Accounting standards change frequently;even though eventually itwillbe your Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountant'sjobtostayabreastofchanges,beingawareofhowachange willaffectyourbusinesswilldecreaseyourrelianceonanaccountant. AttentiontoDetail Accountingtransactionscanbecomplex.Accordingly,successfulsmall- businessownersareabletopayattentiontosmalldifferencesinaccounting details,andseehowthesedetailschangetheclassificationofatransaction. Itisalsoimportanttobeabletoarguefrom analogy.Inmanysituations, therearenotspecificsectionsofguidanceinthegenerallyaccepted accountingprinciplesthatrelatetotheaccountingissue.Inthesesituations, small-businessownersmustbeabletomakeajudgmentregardingwhether anaccountingtreatmentortaxpositionisappropriate.Whenthishappens, businessexperienceandtheabilitytothinkabouthowsimilarsituations wereapproachedcanhelpdeterminewhetherthedecisionmadewas reasonable,andcanhelptosuggestanewpathifitwasnot. CommuncationofFinancialInformation Whilegenerallyregardedasasubjectforthosewhoaregoodatnumbers,in reality,communicatingaccountinginformationverballyandinwritingisjust asimportantas,ifnotmoreimportantthan,therecordingofnumeric transactions.Skillinwritingandcommunicatingfinancialinformationis necessaryforsmall-businessownersformultiplereasons.Externalusersof thefinancialstatements,suchasbanklenders,creditors,orpotential investors,willexpectthatthe ownercan explain how the financial statementsreflecttheeconomicrealityofthecompany.Further,small- businessmanagersmaywishtousefinancialinformationwhencoaching Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 andtrainingemployees,especiallysalesstaffandcompanymanagement. EvaluationofFinancialInformation Asmall-businessownerwhowishestotakeadvantageofthebenefitsof managerialaccountingwillneedtounderstandhowtoevaluatefinancial informationcollectedonhisowncompany.Managerialaccountingisusedto evaluatedataformakinginternalbusinessdecisions.Asmall-business ownerwhoisabletoevaluatethisinformationeffectivelycanmakemore data-drivendecisions.Ifasmall-businessownerisnotabletoanalyzethis dataappropriately,hemaymakedecisionsthatarenotinthebestinterestof thecompany References(1) ManagerialAccounting:RayH.Garrison,etal. AbouttheAuthor John Freedman's articles specialize in management and financial responsibility.Heisacertifiedpublicaccountant,graduatedsummacum laudewithaBachelorofArtsinbusinessadministrationandhasbeenwriting since1998.Hiscareerincludespubliccompanyauditingandworkwiththe campusrecruitingteamforhisalmamater. Accountancy.How manyofyouareawareoftheskillsrequiredfora successfulcareerinthisarea?Inname,itmaynotseemthemostglamorous careeroptionavailable,buttakeacloserlookandyoucouldfindyourselfat Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 theheartofbusiness,makingkeydecisions. Nomatterhow bigacompanyevergets,theneedforanaccounts departmentpersists.Perhapsthatfocusisonauditing,maybemanagement ortaxandfinancerelated.Chancesare,youwillstartinoneoftwocareer paths–technicalorcommercial. Forthoseofyouwithwhofeelnumericallyliterate,herearetheskillsyou needtostartoffonyourjourney. 1.Innovation Accountancyhasbeenanindispensabletoolofbusinesssincedayone.No projectcangetoffthegroundwithoutatightcontrolandsolidmethod appliedtothenumbers.Innovationisneededbecause,asthebusinessworld evolves,sotoodoestheaccountingrequirementsthatgowithit.Often, recruiterswillbelookingforcandidateswithfreshideas–poisedtomakean impactonthefutureoftheaccountinguniverse. 2.Understanding Handinhandwithaneedforinnovationistheneedtounderstandthefieldin whichyouwillbeworking.Assimilatingnewinformationanddata,project managementormeetingnewclientsformsthebackboneofdailytasks.As such,understandinginformationquicklyisessentialanditisthroughasking wellthoughtoutquestionsthatyoucangetsettledinnotime.Startby understandingthedifferenttypesofaccountancy. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 3.Communication Partofthesacredrequirementsinanyindustry,onceagaincommunication isvital.Accountantsneedtoconveycomplexinformationinthemost straightforwardwaypossible.Whetheryouareanoutsidefirm hiredon behalfofabusiness,oryouarepartofaninternalaccountsteam,itislikely youwillneedtoworkalongsidecolleaguesoneverylevel.Assessmentsof theseskillsstartwhenyouapplyforyourfirstaccountancyrole. 4.CommercialAwareness It’sperhapsalittlesurprisingthatpeopleforgetaboutthis.Whilecertain skillsarebasicallyoffshootsofcommonsense,theneedforcommercial awarenessiscrucial.Commercialawarenessis,inessence,theknowledge ofhowandwhereyourbusinessfitsinthemarket–howitisaffectedby economic,socialandpoliticalmovementsandhowitcanforgeaheadand evolve.Itisaboutknowingyourcraft. 5.Enthusiasm Aswithanyrole,enthusiasmisakeycomponentthatrecruiterswilllookfor. Theabilitytobringpositiveenergytoateamandtrulybelieveinwhatyouare workingtowardsiscrucial.Enthusiasm iscontagious;itdemonstratesthat youarewillingtolearnyourtrade. 6.Initiative Closelyalignedwithunderstandingandenthusiasm,initiativeisamusthave. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Itprovesthatyoucanworkonyourown,thatyouareanindependentthinker andinturn,itwillleadtoyoubeingtrustedwithmoreresponsibility.Itis particularlyimportantifyoudecidetobecomeafreelanceaccountantata laterstageofyourcareer. 7.Credibility/Integrity Weallhaveparticularbrandswearefondofusing.Mostofthetime,the reasoningbehindourchoicescomesdowntoonething:trust.Thesame applieswhenyouarebuildingyourcareer.Youwantpeopletotrustyou. Credibilityisthecurrencythatyoucantradeon.Withmorecredibilitycomes moreopportunity.Throughbuildingacrediblebrand,youarealsolayingthe foundationsforasolidfuture. 8.Resilience Awillingnesstoputinhardgraftiscertainlyrecommended.Aswithany career,youwillstartatentryleveland,mostlikely,wanttoworkyourwayup. Itisnotalwaysgoingtobeaneasypath.Anabilitytoworktowardstight deadlines,jugglemultipleclients’needsandremainpositivethroughthese challengesissomethingthatshouldnotcomeasasurprise.Resilienceisthe abilitytokeepacoolheadandputtrustinyourskillset. 9.Stability Althoughthismaynotbeimmediatelyrelevant,itissomethingtotakeinto accountbeforeembarkingonyourcareerjourney.Perhapsoneofthe benefitsandappealingaspectsofacareerinaccountingistheflexibility. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Howeveritisalsoimportanttobuildasolidfoundationearlyoninyour career.Changing finance and accounting jobs everyyearcan be a disadvantageasemployerswillbelookingforgoodCVstabilityandacareer thathasprogressedwell.Makesureyoufindtherightbalance. 10.Internationalworkexperience Finally,thepresenceoforthewillingnesstoincludeinternationalwork experiencewilladdanotherstringtoyourbow.Whilethismaynotbe somethingthatisimmediatelypresentonyourCV,itisworthbookmarking thisskillforlateruse.Manycommercialbusinessesareconcentratingonthe nextphaseoftheirorganisational. ACCOUNTANT:JOBDESCRIPTION Accountantsareemployedbyorganisationsorprivateclientstoaudit accounts,providefinancialadviceandundertakeaccountsadministration. Whatdoesanaccountantdo?Typicalemployers|Qualificationsandtraining |Keyskills Accountantsprovidefinancialadvicetoclientsthatrangefrommultinational organisationsandgovernmentalbodiestosmallindependentbusinesses andindividuals.Accountantsoftenspecialiseinparticularareasofpractice, includingaudit,managementconsultancy,recovery,forensicaccountancy, taxation,assuranceandcorporatefinance(seetheaccountancyareasof workformoredetails).Typicaldutiesinclude: Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 preparingaccountsandtaxreturns administeringpayrollsandcontrollingincomeandexpenditure auditingfinancialinformation compilingandpresentingreports,budgets,businessplans,commentaries andfinancialstatements analysingaccountsandbusinessplans providingtaxplanningserviceswithreferencetocurrentlegislation financialforecastingandriskanalysis dealingwithinsolvencycases negotiatingthetermsofbusinessdealsandmoveswithclientsand associatedorganisations meetingandinterviewingclients managingcolleagues,workloadsanddeadlines. Worktendstobeofficebased,withworkinghoursoftenextendingbeyond theregularninetofiveatpeaktimes,suchasattheendofthefinancialyear. Typicalemployersofaccountants Privatefirmsofaccountants Professionalservicesfirms Industrialorganisations Charitiesandnotforprofitorganisations Commercialandcorporateorganisations Governmentalbodies Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Thepublicsector Vacancies are advertised on TARGETjobs,by careers services,in TARGETjobsFinance,innationalnewspapersandonspecialistwebsites suchasAccountancyAge.Theprofessionalinstitutesregularlyproducelists oftrainingvacancies. Qualificationsandtrainingrequired Thereareroutesintoacareerinaccountancyforbothuniversitygraduates andschoolleavers. Graduatescanhaveanhonoursdegreeinanydiscipline,thoughrelevant subjectssuchasaccounting,businessoreconomicsareadvantageousas thesecanprovideafasterroutetothenecessaryqualificationwitha professionalaccountingbody.Obtainingthisqualificationenablesyouto achievecharteredstatus,whichdemonstratestoemployers,clientsandthe generalpublicthanyouhavethetrainingandskillstodoyourjobwell. GraduateswillalsoneedfiveGCSEs(gradesA*-C,includingmathsand English),andatleasttwogoodAlevels.Recentlysomefirms,inparticular theBig4,haverelaxedtheirentrycriteria,anditisnowpossibletoenterthe professionwitha2.2degreeorlowernumberofUCASpoints.Priorlegal knowledge,especiallyinrelationtotaxation,maybebeneficial. Qualificationasacharteredaccountanttakesatleastthreeyears,andcanbe demanding;studyforexamstakesplacealongsidefull-timeemploymentand graduatesshouldcarefullyconsiderthepackageofferedintheirtraining Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 contract.Whileworkingtowardcharteredstatus,provisionsfortrainingand studyleaveplayanimportantroleinjobsatisfaction,aswellassalaryand theatmosphereofthefirmwhereyouwork. Aspartofthetraining,graduatesmustcompletethreeyearsofrelevantwork experience.Priorexperiencegainedthroughrelevantinternshipsmaycount towardthis,buttheworkexperiencemustalwaysmeetcertaindevelopment objectivesandbesupervisedbyanemployerapprovedbythequalification provider.Qualificationisdependentonthefulfilmentofthesetraining objectives,professionalexams,andaprofessionalethicsassessment. Thereareseveralseparateinstitutesofcharteredaccountants(seelinks below)andentryrequirementsvary.Certainlargefirmshavepreferencesfor qualificationsfromspecificinstitutes,althoughtraininggenerallycoversthe sametopicsandskills.Inordertomaintaincharteredstatus,accountants are required to pursue objectives toward continuing professional development(CPD)eachyear. Tofindoutabouthowyoucangetintothiscareerviaaschoolleaverroute (eganapprenticeshiporschoolleavertrainingprogramme)seethefinance sectorofTARGETcareers,ourwebsiteaimedatschoolleavers. KeyskillsforAppliedaccountants. Accountantsgothrougharigorousrecruitmentandqualificationprocess, Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 andthisisreflectedintheirhighprofessionalstatus.Employerslookfor graduateswiththefollowingskills: self-motivation integrity abilitytoreflectonone'sownworkaswellasthewiderconsequencesof financialdecisions businessacumenandinterest organisationalskillsandabilitytomanagedeadlines teamworkingability communicationandinterpersonalskills proficiencyinIT analyticalability amethodicalapproachandproblem-solvingskills highlevelofnumeracy. Accountants:7SkillstoMaster Asacurrentbachelor’sofaccountingstudentorrecentgraduate,it’s importanttostayfocusedonmasteringthenecessaryskillstosucceedin accountingjobs.Accountingtechnologiesarealwayschanging,butthebasic skillsexpectedofprofessionalaccountantsremainthesame. Evenforaccountantswhohavestudiedatthebestaccountinguniversitiesin thecountry,subjectknowledgeismuchlesseffectivewithouttheabilityto Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 communicate,utilizethelatestdigitaltools,andhaveanappreciationfor workethics.Herearesevenofthemostimportantskillsthatcanhelpyoube anexcellentaccountant. Adaptability Fewindustriesareasdynamicasaccounting.Withfinancialsoftwareand toolsconstantlychanging,it’sessentialtoadaptquickly.Thiscouldmean gettingfamiliarwithanew accountingsystem everyyearortwo,butin general,beingabletokeepupwithgrowingtrendsputsyouatanadvantage. Accountantscanbecomemoreadaptablebykeepingupwithevolvingtrends, planningaheadandthinkingaboutthefuture.Individualsmightfeelstressed whenfacedwithunexpecteddifficulties,buthavingtheabilitytoadaptand determinealternativeoptionshelpsthebestaccountantscopewithchange. Anadaptableaccountantwillanticipatechangingenvironments,remaincalm instressfulsituations,takeonnewjobsonshortnotice,thinkquickly,andbe abletodealwithchallengingworkloads.Accountantscanprovetheirworth tofirmsandclientsbyshowingwillingnesstolearnnew techniquesor methods,showinginitiative,lookingforwaystoimproveaworksituation, andkeepingapositiveattitude. Leadership Beingagoodleaderdoesn’tonlyrequirecommunicationskills.Whilethis couldbevaluableinanyleader,havingstrongleadershipskillsismoreabout Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 makingoneselfapproachableandhavingtheabilitytomentorothers. Developingleadershipskillsrequiresacertainlevelofconfidence.Thisisn’ta traitthatcomeseasilytomostpeople,especiallytorecentgraduates,butif youareconfidentinyourabilitiestothinkstrategically,planahead,anduse thelatesttechnologies,youcansetyourselfupforsuccess. Agoodaccountantshouldbeacreativevisionaryknownformakingthebest decisions.Aleaderwhodisplaysambitionandmotivationcanalsohavea positiveimpactonco-workersandemployees. CustomerService Ifyou’relikemostgraduates,youalreadyhaveexperiencewiththepublic fromworkingapart-timejob.Whetheryou’veworkedinfoodservice,retail,or hospitality,part-timejobsareinvaluableexperiencesthathelpyoudevelop thoseimportantcustomerserviceskillsearly. Whenyouworkforanaccountingfirmorbusinessclient,you’reexpectedto maintainagoodrelationship,retainexistingcustomers,andbringinnew clients.Customerserviceskillsarejustascrucialtothesuccessofyour careerasyouraccountingknowledgeitself. Totakeyourcustomerserviceskillstotheprofessionallevel,focusonbeing thefollowing: Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 •Patient •Knowledgeable •Attentive •Positive •Calm •Goal-oriented •Persuasive Accountantsalsoneedtheabilitytoreadclients,especiallysincetheywon’t alwaysbeinteractingwiththemfacetoface.Readingclientscanbedifficult, aseachclientcommunicatesdifferentlyanditcantakesometimetopickup onthenuances.Theabilitytounderstandaclient’sneedsandkeepthemin mindisincrediblyimportantinanagewherefacetimeisbeingsteadily replacedbytechnologicalalternatives. Tenacity Merriam-Websterdefinestenaciousas“persistentinmaintaining,adheringto, orseekingsomethingvaluedordesired,”aswellas“noteasilypulledapart.” Giventhisdefinition,onecanprobablyalreadyseewhytenacityissuchan importantskillforanyaccountanttohave. A tenacious person is willing to go above and beyond the normal expectationstogetthejobdoneright.Tenacityalsomeanshavingan exceptionalworkethicandtakingonextrachallengeswithdetermination. Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Ofcourse,beingtenaciousmaymeanyou’rededicatedenoughtowork tirelesslyuntilyou’verunoutofsteam.However,thereisadifference betweenbeingtenaciousandbeingsingle-minded.Whilesingle-mindedness cancauseyoutoforgeaheadwithoutthinking,tenacityismorefocusedand reliesonstrategy. Communication Asanaccountant,youwillbeworkingwithavarietyofcolleaguesandclients, includingdifferentdepartmentswithinanaccountingfirm.Communicating effectivelyisextremelyimportantforsuccess,especiallyifyouarejust beginningyourcareerintheaccountingfield. Accountantsdependonallsortsofcommunicationmethodsonadailybasis. Theycouldspendtheirdayansweringemails,respondingtotexts,having face-to-facemeetings,orevengivingpresentations.Inallthesetasks,one needstobeabletorelayinformationasconcisely,quickly,andprofessionally aspossible. TechnicalKnowledge Withadvancementsinfinancesoftware,cloudcomputing,andautomated programs,accountantsareworkingwithnewtechnologiesonaregularbasis. Forinstance,forsomeonejuststartingoutintheprofession,youwerelikely exposedtothelatesttechinyouruniversity’saccountingcourses.Thisisa greatstart,butwithtechnologychangingsoquickly,stayingaheadofthe gameisessential.Familiarizingyourselfwiththefollowingtechnologiesand Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 trendscanhelp. •AdvancedExcel •OpticalCharacterRecognition(OCR) •BusinessIntelligenceSoftware(e.g.,Yellowfin,IBMCognos) •EnterpriseResourcePlanning(ERP) •StructuredQueryLanguage(SQL) •Cloudcomputingsoftware •Automatedaccountingsoftware Organization Oneofthemostimportantskillsanaccountantcanhaveistheabilitytostay organized.Accountantsdealwithsomuchinformationonadailybasisthat organizationisimportanttokeepingthatinformationsafeandconfidential. Ifyou’rethetypeofstudentwho’salwaysusedcolor-codedhighlightersor Post-itnotestostudy,you’vealreadydevelopedcrucialorganizationhabits thatwillcomeinhandyasanaccountant. Accountantsoftenutilizedayplanners,calendars,andtechnologytostore andaccessinformation.Thankstocloud-basedaccountingsoftware,they canaccessaclient’sinformationfromyoursmartphone,makingiteasierto dotheirjobnomatterwhereyouare. Stayingorganizedshowsthatyou’reresponsible,competent,andreliable,so Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 developthoseorganizationalskillsnow(anddon’tforgettoincludethemon yourresume). Althoughthisisbynomeansthedefinitivelist,thesesevenskillscanbe beneficialforthemodernaccountant.Ifyoustartbyfocusingonthemwhen enteringyournewaccountingcareer,youwillproveyourselfaninvaluable employeefromthestart. Ifyouareinterestedinlearningtheseandotherskillsasyoupursuean accountingcareer,consideranonlineBachelorofScienceinAccountingwith MaryvilleUniversity. Sources: https://www.kent.ac.uk/careers/sk/adaptability.htm http://talentegg.ca/incubator/2014/09/08/6-skills-succeed-accounting/ BrowseCategories ProfessionalSkills 30Jul2018 The9KeySkillsNeededtoBecomeanAccountant SiônPhillpott Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Shutterstock Choosingtobecomeanaccountantisawisecareermove;theworkissteady, thereareplentyofopportunitiesforcareerprogressionandit’sajobthatyou candoanywhereintheworld.Butnoteverybodyiscutoutforthiscomplex andseemingly‘dull’profession;indeed,ittakesacertainsetofprofessional skillsinordertobeconsideredsuitable.Ifyou’reinterestedinthisimportant andmultifacetedindustry,thesearethekeyskillsthatareneededfor success. 1.NumericalSkills Althoughthedaysofrecordingtransactionsandcalculationsviapenand paperarenowsomethingofanantiquity,there’snogettingawayfromit:if youwanttoworkinaccounting,thenyouneedtobegoodwithnumbers.This isbecauseeventhoughalotofthingsmayhavechanged,mathematicsstill formstheentirebasisoftheprofession.Youneedtounderstandthebasic principlesofwhathasbeenworkedoutandwhy,aswellasbeabletospot wheremistakesmighthavebeenmadeduetoinputtingerrors. Youdon’tnecessarilyneedtoholdadegreeinmathsorfinance,butmost companiesstipulatethatyoushouldbeeducatedtoatleastGCSE/OLevel standard.Ifyoudon’tmeettheserequirements,thenconsidertakinganight classtogetyourselfuptospeed. 2.TimeManagementSkills Accountantsneedtobeorganised.Often,theyareworkingforseveralclients Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 oronmultipleinternalprojects,andasaresulttheyneedtobeontopoftheir gameeverysingleday.Tomakemattersworse,duetotheproject-based natureofthejob,therearealsoalotofdeadlinestotakeintoconsideration; therefore,theirtimemanagementskillsneedtobetopdraweraswell. Ontopofthis,thehoursyoucommittoaparticularprojectorclientwillbe closelymonitoredandscrutinised.Thisiswhyit’svitallyimportantthatyou completeworkintheallottedtimeframe. 3.CommunicationSkills Asidefrombeingthesolecaretakerofadesertisland,thereisnojobinthe worldwherecommunicationskillsarenotessential–andaccountingisno different.Whethersittinginmeetingsorbriefswithclients,managersor externalpartners,youneedtobeabletoworkwithotherprofessionalsfrom awidevarietyofbackgroundsandindustriesandmaintainthoselevelsof communicationaseachindividualprojectprogresses. Youneedtobeabletocommunicateyouranalysesandreportfindings,too. Ifyou’vediscoveredatechnicalflaw insomeone’sfinancialmodel,for instance,thenyouneedtobeabletoexplainwhattheissueis,whyit’sa problemandofferasolutionofhowtoamendit. 4.AnalyticalSkills Giventheriseofbigdataandtheincreasedavailabilityofinformation,the abilitytoanalyseeffectivelyhasbecomemoreandmorepracticalinrecent years.It’snotenoughtotellaclienthowmuchmoneytheyhaveintheir accountanymore,buttoanalysethevariousindustrytrendsandseasonal Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 factorsthataffecttheirprofitmargins,too. Thisabilitytospotpatterns,visualisefindingsandofferactionableadvice basedonyouranalysisisakeyskillforthemodernaccountant,withmany firmsinvestingheavilyintrainingprogrammestogettheirpersonnelupto speed. 5.ExcelSkills Despitecompaniesexperimentingwithawidearrayofsoftwaretools,Excel continuestoremainasthebreadandbutterofaccounting,duemainlytoits flexibleandrobustnatureandeaseofuse.Ontheflipside,Excelhascomea longwaysincebeingasimpledataentrysystem.Thepotentialofthe softwareisalmostlimitless,withtheabilitytocreatethousandsofunique formulasandperformcountlesstaskstailoredtotheuser’sneeds.Therefore, youshouldlearnasmuchasyoucanaboutitscapabilities. There’snoexcuse,either:therearenumerousbooksandwebsitesthatcan improveandenhanceyourabilities,sobesuretoinvestsometimeinyour Exceldevelopment. 6.CommercialAwareness Commercialawarenessisanotherskillthatisapplicabletonearlyevery industry,butespeciallyinaccounting.Everysinglebusinessineverysingle sectorwillrequiretheservicesofaqualifiedaccountant,afterall. Therefore,it’simportanttounderstandnotjusthowtheprofessionalservices Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 sectoroperatesbutalsothatofyourclients’.Mostlargefirmsmitigatethis byencouragingtheirstafftospecialiseanddevelopexperienceinaparticular field,soifyouexpressaninterestinenergy,forexample,thenmostofthe projectsyouwillbeassignedwillbeforoilandgascompanies.Ensurethat youkeepabreastoftrendsanddevelopmentswithinyourassignedfieldand, ofcourse,buildasmanyconnectionsandcontactsasyoupossiblycan. Manyaccountantsgoontoworkfull-timeforindividualclients,sothere couldpotentiallybealucrativerewardforyourcommitment. 7.ProgrammingSkills Asmentionedearlier,datavisualisationandpatternspottingareskillsthat accountantsneedtopossess;knowinghowtoactuallyextractandanalyse givendataisalargepartofthis.Therefore,youwouldneedtodemonstratea basiclevelofprogrammingknowledge,particularlyindatabase-centric languagessuchasStructuredQueryLanguage(SQL)andPython,inorderto tacklelargeamountsofnumbersandfigures.Manycompaniesprovide internaltrainingtodevelopandhonetheseskills,butyoucanactuallylearn thebasicsofprogrammingyourself.Inthemodernjobmarket,theabilityto codeisbecomingincreasinglyimportant,soitwillcertainlybeworthyour time. 8.AttentiontoDetail Accountants are often accused ofbeing bookish and dull,buttheir dedicationtotheirworkisessential.Whendealingwithhugeamountsof numberseveryday,itcanbeveryeasytoslipupandmakeasmallmistake. Theproblemisthatminormistakescansometimesleadtomajorfinancial headaches–especiallywhenamisplaceddecimalpointendsupcostinga Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 companymillions.Thisiswhyattentiontodetailissoimportant,with numbersrunandrerunanderrorchecksputinplacetoraisethealarmwhen somethingmightbewrong. 9.LeadershipSkills Finally,modernaccountantsneedtobeleaders,too.Whetheryou’reworking externallyforaclient,asthesubjectmatterexpertwithinacompanyorina smallprojectteamatalargeaccountingfirm,atsomepointyou’regoingto needtostepupandmakedecisions.Often,thesecallscanhaveserious repercussions,too.Peoplemightlosetheirjobsasaresultofyourfindings oryoumightbeconfrontedwithethicalissueswhenexaminingsomeone’s books.Thisiswhenyouneedtobeconfidentinyourabilitiesandyour decisionmaking,andsatisfyyourselfthatyou’remakingtherightcall. AppliedAccountingroleintheindustraildevlopemtandprogessaroundthe world.RoleofAccountingisveryimporatantforindustrialization. Admittedly,yes,we’realittleproudoftheaccountingprofessionandthe poweroftheaccountingdiscipline.Toaddsomecolortothistopic,we reachedouttosevenimpressiveandinfluentialleadersworkin,orwith,the accountingandfinanceworldfortheirperspectivesononecriticalquestion: “How wouldpossessingdeepaccountingknowledgemakesomeonea biggerassettohisorhercompany?” Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 Stripawaythecomplexitiesandconsidertheprofitimpactofeverythingthat abusinessdoes. Possessingdeepaccountingknowledgeprovidesastrongfoundationfor someonetounderstandanybusiness.That’saprettytriteobservation,butif youthinkaboutwhatitmeans,it’seasytoseewhyit’srepeatedoverand over. Theclassicobjectiveofabusinessistomakeaprofit.Todetermineifa businessismakingaprofit,someonehastorecordthetransactionsthat occurinthebusiness.Collectively,thosetransactionstellyouwheremoney iscomingfromandwhereitisgoing;ifmoreisgoinginthangoingout.The betterapersonunderstandsthatactivity,themorevaluabletheyaretothe company. Thisisrelativelyeasyatfirstwhenabusinessissmallanduncomplicated. Asacompanygrows,everythingbecomesmorecomplex.Sometimesit becomessocomplexthatabusinessneedstohirehundredsofpeoplejust torecordallthetransactionsanddocumentallthecontextaroundthemso otherpeoplecanunderstandwhat’shappeningandarecomfortablethatit’s beingdonecorrectly.Thedeeperunderstandingapersonhasoftheseissues, thebetterheorsheisequippedtohelppeopleinotheraspectsofthe businessunderstandtheirimpact. Thisisespeciallyvaluabletoacompany—havingadeepunderstandingof Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 accountingbutalsotheabilitytostripawaythecomplexitiesandconsider theprofitimpactofeverythingthatabusinessdoes.Thatis,“WilldoingX resultinmoremoneycomingin,ormoremoneycomingout?”Focusingon thatfoundation—andbeingabletoexplainittoothersinawaytheycan understand,willmakeanypersonabiggerassettohisorhercompany. CalebNewquist Editor,GoingConcern Numberstellastory.It’simportanttoknowhowtoreadandanalyzethat storysoyou’reincontrolofthenarrative. Whenpeoplethinkofaccounting,theytendtodefaulttoanimageof someonesittingatadesk,tracing,vouching,calculatingnumbersandfigures. Butit’smuchmorethanthat.Accountinghelpsyouunderstandandevaluate thefinancialinformationthatgoesintocreating,forming,running,and maintaining a business. Many companies fail because they are undercapitalized.Sowhetheryou’reanemployee,employer,orentrepreneur, havinganaccountingbackgroundnotonlyhelpsyouunderstandandanalyze thefinancialdata,butalsomakebetterbusinessdecisionsthatarevitalto yourbusiness’success. AsaCPAandentrepreneur,Icanattesttothis.EverybusinessdecisionI Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 makeisunconsciouslyingrainedbymyaccountingandauditingbackground. Byusingthisapproachandapplyingaccountingprinciples,I’mabletofocus onthebottom lineandreduceinefficiencies.Thisenablesmetoseehow eachpartofmybusinessmakesupthegreaterwhole,andhasallowedmy companytogrowfromonepersontoover60inthelastseveralyears. Sonomatterwhereyourcareerpathmaytakeyou,rememberthathaving accountingknowledgeiskeytobuildingandgrowingnotonlythebusiness youserve,buttheeconomy,andultimately,yourcareer.Numberstellastory. It’simportanttoknowhowtoreadandanalyzethatstorysoyou’reincontrol ofthenarrative. RogerPhilipp Founder&CEO,RogerCPAReview Myadvicetoanaccountingstudentistopickonehotareaandgodeep. PassingtheCPAexam issomethingtobeproudof.Itdemonstratesa generalknowledgeexpectedbytheprofessionofitspractitionerswithtwo years’experience. Butspecializedknowledgeiswhatdistinguishesyoungprofessionalsfrom theirpeers.Forbetterorworse,therearemanyareasofaccountingthatare Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 extremelycomplex,andforwhichasmallchangeinafactpatterncould changetheaccountingtreatment.Myadvicetoanaccountingstudentisto pickjustonehotarea– e.g.,financialinstruments,hedging,revenue recognition,leasing—andgodeep. TomSelling,PhD,CPA TheAccountingOnion >>AccountingknowledgebolstersyourBusinessIQ.Testyourshere. Thereisnosubstituteforknowingthenumberswhenitcomestomeasuring abusiness’sfinancialhealthanditsabilitytobesuccessful. Financialmanagementandrelateddecisionmaking—bothofwhichrely uponhavingbasicaccountingknowledge—willalwaysbeonetwoofthe strongestdriversofsmallbusinesssuccess.Businessesthatdon’thavea team withtheseabilitieswillalwayskeepthatbusinessfrom reachingthe crucialfive-yearmilestone.Asabusinessowner(orevenakeyteam member),youmayhaveagutfeelingthatthebusinessishummingalong smoothly,butthereisnosubstituteforknowingthenumberswhenitcomes tomeasuringthatbusiness’sfinancialhealthandtheabilitytobesuccessful. Stayingontopoffinancialdatagivesabusinessitsbestshotatbecoming established.Onlybyknowingthekeynumberscanabusinessplanforthe Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 future! StacyKildal Founder,KildalServices Itallgetssortedoutintheaccountingrecords. Accountingisthefoundationofallbusiness.Allbusinessesgetinterpreted throughthelensofaccounting.Therearemanycomplexitiesinabusiness, includingteam cultures,marketing,selling,processes,andclientcontracts. Butitallgetssortedoutintheaccountingrecords.Financialstatementstell thehistoricalstoryofhowyourbusinesshasbeendoingandhowallofthese complexitiesultimatelyturnintoprofitorloss. JasonBlumer,CPA ChiefInnovationOfficer,BlumerandAssociates,CPAs Theoneintheroom whocanturnknowledgeintoactionablebusiness informationistheonewhowillprovideuniquevalue. A“comprehensive”knowledgeofaccountingis,ofcourse,thecostofentry— Electronic copy available at: https://ssrn.com/abstract=3681442 Electronic copy available at: https://ssrn.com/abstract=3875601 tablestakes,ifyouwill.Butmoreimportanttoanaccountant’sstakeholders —employers,shareholders,lenders,colleagues,thepublic,theclients,etc.— isa“deep”or“strategic”understandingofthebusinessathand. Youcangetfiveaccountantsinaroomandgetsixopinionsontheproper treatmentofaFASBrule.Buttheoneintheroom whocanturnthat knowledgeintoactionablebusinessinformationistheonlyonewhowill provideuniquevalue.Therestiscommodity. RickTelberg CEO,CPATrendlinesResearch Peoplewhopossessadeepknowledgeofaccountingareinabetterposition toactasstrategicadvisorstobusinessownersandorganizationalleaders. Peoplewhopossessadeepknowledgeofaccountingareinabetterposition toactasastrategicadvisortobusinessownersandorganizationalleaders. Nomattertheendeavor,thereisamoneyflowtofunditandthatflowhasto be intelligentlymanaged.And,in mostcases,there are matters of compliancetomanagearoundthatmoneyflow,too.Asaresult,all enterpriseleaders(largeandsmall)needhelpfrombrightprofessionalswho understandboththefundamentala