Accounting

Accounting

Introduction:

Accounting or accountancy is one of the most important fields of finance & commerce. Accounting is the branch of commerce which deals with aspects such as summarizing, reporting and analysing financial transactions to keep financial records. It is the study of how businesses track their income and assets over a period of time. Accountancy is related to dealing and maintaining records of all daily financial transactions happening in business to estimate the success or failure of a business.

Growing economic and commercial activities has made accounting an integral part of our everyday lives. Any business requires an accountant who would be responsible for maintaining books of accounts. Hence, accounting career opportunities exist almost everywhere, and accountants are in high demand whether it is a new business, big or small, home-based business, corporations and government organisations. The services of accountants are required by all organisations as they must maintain systematic records of all transactions for the purpose of planning activities, managing and furnishing tax returns. Without this department, recording financial transactions, proper maintenance of staff salary and books of account, balance sheets preparation, calculation of various taxes etc. is not possible in a firm. Most decisions related to present and future projects are based on the financial records of a concern. Accounting is an important field not only in business but also in everyday life of common man. People use accounting skills while making decisions related to finance and investment options.

With IT boom, computer has occupied almost every field and in this scenario even accounting is not possible without computers. This has increased the importance of computerised accounting. Specially designed accounting software like Tally is used by firms to ensure speedy and accurate accounting.

Educational Qualification:

• The basic educational qualification for pursuing a career in Accounting is taking 10+2 with Commerce as the main subject, followed by a bachelor degree in Commerce.
• For Post graduate courses such as M.Com one needs to have B.Com at graduate level.
• Along with subject specialisation computer literacy is also essential. One must take a course in computer accounting software's such as Tally or some other related diplomas.
• One can further take up more advanced positions by doing ICWA, CA, Company Secretary ship or an MBA in Finance.
• After bachelor’s degree in accounting, one can also go for diploma or certificate course in Forensic accounting. Some institutes offer Forensic Accounting as part of the Law degree.

PERSONAL ATTRIBUTES:

• Accountants should have an aptitude for mathematics and be able to analyse, compare and interpret facts and figures quickly.
• They must be able to communicate well and have an eye for detail.
• Familiarity with computerized accounting is essential.
• They must be able to work as a team.
• Must have high standards of integrity and accuracy as major decisions are made based on financial statements given by them.

JOB PROSPECTS & CAREER OPTIONS:

As the economy grows and the number of businesses increases, more accountants is required to set up account books, prepare tax returns and provide management advice regarding financial matters. Accountants are always on demand and a diverse range of exciting careers are available for accounting graduates to choose from. 

People can start their career as a junior accountant and can reach various top level positions such as a Senior accountant, Chief financial officer, auditor, budget analyst, financial manager, tax consultant etc. An accountant's work can range from auditing, which is the formal analysis of an organization's financial statements, to the daily bookkeeping that ensures the accounts are maintained correctly. Places where they can find work include public accounting firms, government departments, non-profit organisations, private firms etc. They could also start their own accounting or auditing firm. 

The four major fields of accounting are:

Public accountants - Public accountants work with different clients to assist their accounting needs. They provide accounting services to individuals, businesses and governments. As a public accountant you will focus primarily on tax functions and auditing. They advise on the most effective use of financial resources.

Management accountants - Management accountants also called industrial, corporate or private accountants. Their main responsibilities involve cost management, budgeting, asset management and performance evaluation. Management accountants analyse and interpret financial information and assist to make sound business decisions. 

Government accountants-Government accountants may work at the local/state level or the central level, administer and formulate budgets, track costs and analyse programs. With this position, you work in a variety of government departments such as the Internal Revenue Service, Department of Defence.

Internal Auditors- They conduct audits to ensure compliance with accounting laws and working to make sure that accounting information systems are up to the standard. Verify the accuracy of financial reports and guard against waste or fraud in company operations. Specifically, they examine and evaluate their firms financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate to protect against fraud and waste. 

Options available in this field are that of

Auditors - The job of the auditors is to ensure the credibility of the financial accounting data and financial statements in private sector companies as well as public sector companies. Work in audit involves checking accounting ledgers and financial statements.

Budget and credit analyst- Budget analysts are responsible for developing and managing organizations financial plans. They forecasts expenditure incurred, analyses records of present and past operations. There are many opportunities for a budget analysis accountant in private as well as government agencies.

Financial accountant- Financial accountants draw information from the general ledgers to prepare financial statements. The core function of a Financial Accountant involves analysing and recording business transactions, financial statements, with information from the ledgers by preparing general ledger accounts, trial balances etc.

Tax accountants- Tax accountants prepare corporate and personal income tax statements and formulate tax strategies. Based on their statement financial choices are made as how to best treat a merger or acquisition, deferral of taxes, when to expense items and the like. They clarify current tax laws to clients, advises on ways to avoid tax by smart investments and assists businesses in calculating annual tax returns. They need to have a thorough understanding of economics and up-to-date information on the tax code and laws of the country. 

Management accountant - Management accountants work in companies and contribute to decisions about capital budgeting and business analysis. Major functions include cost analysis, analysis of new contracts and participation in efforts to control expenses efficiently. They work along with marketing and financial managers to take business decisions.

Teachers/Lecturers- Teaching is another noble profession. If you have a knack for teaching and the required qualification, you can work as professors, or as researchers in universities or colleges. Pursuing B.Ed., MEd, M. Phil or passing the NET Exam can give an edge for those interested in teaching. 

Forensic accountant - Forensic accountants frequently work for public accounting firms, banks, the IRS (Indian Revenue Service), insurance companies and law firms.

COURSES:

There are lots of Accounting colleges in India and, therefore, the choice is quite a tough one to take when it comes to selecting the proper institute.

» B.Com
» B.Com Taxation
» M.Com
» M.Com. Cost accounting
» M.Com Computer Application
» M.Com. Taxation
» M.Phil Commerce
» Ph.D Commerce
» Certificate in Financial Accounting
» Certified Advance Business Accountant (C.A.B.A)
» Certified Public Accountant (C.P.A)
» Certified Management Accountant (C.M.A)
» Diploma in Financial Accounting

REMUNERATION FOR ACCOUNTANTS

At the entry level an Accountant can start with a monthly remuneration ranging from 6,000 to 15,000. One can command a higher salary as the experiences raises. Companies are offering handsome salary packages to account professionals across the world.

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