why do you want to study accounting essay

why do you want to study accounting essay

The Importance of Studying Accounting

1. Understanding the Basics of Accounting

The aim of the accounting is to measure the revenue that a company and evaluates their performance profiles each year so the real situation becomes crystal clear to the business people who trade or wish to invest their money in international and domestic. The owner and managers of a company can traders investors in business community by using the financial reports of the Article and those who supposed to deal with or invest their money also possess the knowledge of financial performance of a company. So these reports are summarized. Are required for each company that has been published in each year. The persons who need the financial statement of the company are investors, creditors, governments, employees, management and board of directors.

The accounting is very important for the success of any business. Therefore, it has been established and used for many years ago. It is very helpful to the business people because it makes some things became more valuable for them in the business, such as clear things like the cost of operating businesses and allowing them to order from external sources to maintain books of accounting on a regular basis so reliable to the business community.

2. Exploring the Career Opportunities in Accounting

Non-profit Organization: Not-for-profit organizations include hospitals, social services agencies, museums, colleges, and other organizations that operate with the help and funding of their donors and their clients. As a student, you gain the specific skills that apply to NPOs. These include not only learning the accounting software but also knowing the difference between gifts and grants. Donor restrictions are funds receivable and determination on factors that an NP is meeting its objectives and more.

Government Accounting: Government accounting is referred to as public accounting. The governmental accounting system focuses on looking at the financial state of local, state, and federal government.

Public Accounting: The employees in public accounting generally get a lot more exposure to a wide variety of industries and clients. The work in a public accounting firm can be very challenging, rewarding, and stimulating. Public accounting firms are small and large. There is also a big five-public accounting firm, although currently there are only four remaining. It helps auditing clients understand that their financial statements will be properly interpreted by investors. In addition, they also help companies to organize and manage their financial infrastructure.

The accounting profession is one characterized by constant change. With the globalization and expansion of business, new opportunities are exploding for those with a knowledge of accounting. Accounting shows the best student for a variety of careers and for a series of business careers. The following are the career opportunities in accounting:

3. Developing Essential Skills for Success in Accounting

At all times, individuals should demonstrate socially responsible conduct and integrity in all functions of life and gain respect for local and international standards of ethical and professional conduct for guidance in all business accounting disciplines and recognized professions. When venturing on recognizing the importance of accounting, the characteristics of accountants, as well as the study of accounting, are fully understood. The challenges that have been faced by individuals are addressed through the acceptance of accounting as a course for knowledge development in the accounting profession. The recommended advice is shared with students for them to address all issues that they may encounter in the study of accounting. Those new to the study of accounting are given guidance and practical experiences that lead to the professionalism of certified accountants and members of the accounting profession. The article comments on the teaching of accounting and provides insight on the students’ perception of accounting as an area of study. With the understanding of the importance and characteristics of accountancy, stakeholders encourage departments to become successful.

Accounting is one of the oldest and most well-established professions in the world. Although it continues to change, the accounting function is considered vitally important. The accounting profession is comprised of both those who must become registered as accountants and those who are not registered under the Close Corporations Act of 1984, i.e. other accountants. Irrespective of their status, both groups form the backbone of the economy and their importance is growing, especially in the environment of e-tolls, South African Revenue Service (SARS) customs duties, and taxes. Irrespective of the nature of the business, every branch in the economy has an accounting function that must be performed. Whether or not the business functions as a sole trader, close corporation, or public company, the function of accounting is integral to its operations. Whether or not the accountant is registered with a professional accounting body, those practicing accounting are part of a profession that is known as the accounting profession.

4. Contributing to Business Decision-Making with Accounting Knowledge

Many types of management decisions are of little value to the accounting profession. Strategic management decisions, although they can have very positive or negative effects on firm value over the long term, are not guaranteed to leave a legal and recorded financial history that can be traced back to these ultimate components of earnings. Decisions such as deciding which customers to target, how to create and retain the desired customers, or how to source services are all important decisions that don’t result in financial statement numbers. It doesn’t mean accountants have nothing to offer, it just means that traditional measurements by themselves are quite insufficient for assessing operational value and that other types of process and outcome metrics will help managers determine if their strategies are delivering the benefits expected. Some of those metrics can be provided by the accountancy profession and include measurements on the effectiveness of cost management, the support of value creation activities, and successful consumer targeting. For many managers that lack such experience, these types of related accounting measurements can play a role in helping them plan, implement, and navigate the venture toward the desired future.

As well as informing investors, facilitating contracts, and ensuring compliance with governmental regulations, accounting information is used extensively by corporate and investment managers to make investment decisions, project cash flows, bargain with suppliers and creditors, evaluate employee performance, and make dividend decisions. The information and tools produced and analyzed by accountants provide the underlying support for the decisions made involving these types of activities. Given the immense value that sound decision-making adds to corporate venturing success or social welfare, this is ultimately the most important role of accounting and the reason that professionals who focus on the final stages of this decision-making process are demanded by business and society in general.

In addition to helping management plan for the future, accounting information plays a critical role in the actual decision-making process in established businesses. As firms strive to obtain performance data that are timely, accurate, and predictive, the market for expert business valuation services is booming, as is the demand for skilled practitioners to perform such services. With the aid of experts who analyze accounting information, decision-makers are better able to anticipate market trends and economic conditions, understand how key industry and firm-specific variables will influence future operations, and manage risks effectively.

5. Making a Positive Impact on Financial Stability and Growth

There is broader significance in such accounting, too. Accountants add value through continuous improvement, competence, fiduciary responsibility, integrity, and objectivity. They play a pivotal role in regulatory compliance, bankruptcy appraisal work, cost applications, and fraud investigation. Accountants can significantly impact matters of economic stability, corporate income taxes, and investment. In the case of pension funds, for example, with $14.4 trillion in assets in 2021, there was a significant bottom-line effect when the Financial Accounting Standards Board issued two exposure drafts and held a public roundtable to address disclosure and measurement on pension plans. Information was released. Results were generated. Financial stability was maintained. More recently, audited 401(k) plans generated 18% higher contributions than those that were not as they engaged in the securitization of assets process. Reader preference ratings compiled from various 401(k) plan investment accounts were 11.9% higher when they were audited. Decisions were made. In some areas, auditing accounted for 60% of the total investment in stock valuation reports.

In many ways, accounting is the language of finance. It is the means by which important financial information is shared. That information can have a profound impact on businesses and their decision-makers. It is the bottom line. It helps guide enterprises. Accountants are often at the forefront of sharing that information. Ethical accountants carefully handle data, and they operate with integrity to ensure that the transactional data they share is accurate, current, and relevant. In this way, accountants are very much like the alimentary canal of a company. Without them, important financial information wouldn’t be absorbed or flow properly. The entire decision-making process would be disrupted.