The Accounting Profession

This is an introductive article on accounting.

Most people assume that if you're an accountant then you want to be a math genius. you want to be able to calculate any number in your head. you want to take years of math. They couldn’t be a lot of wrong.

Accounting isn't on the subject of adding numbers all day. Accounting could be a profession of communication.

Communication process

When an accountant comes on the scene, communication between the money world and staff and stockholders occur.  Their job is to take all the ins and outs of the money, the assorted classes, and therefore the goals of the corporate and place into a type that may be understood while keeping inside the bounds of the law and ethics.

 when I was in college advancing toward my accounting degree, many folks around me just assumed that i used to be a math genius.  I wasn’t horrible in math, however genius i used to be not.  I couldn’t get everyone to understand that accounting went beyond adding and subtracting.  I solely had to take the basic math categories that everybody else had to. the remainder of my education was learning how to communicate the results of all that adding and subtracting to people.  I had to find out how formalize it.

                An accountant’s job is to take the deposits and expenditures and place them within the acceptable classes. many would ask why are the classes important as long as the final balance within the checking account is correct.  There happens to be many reasons for this.

Purpose of Accounting

1) Fraud – If solely the ending balance is looked at and validated, then anyone might take away or perhaps add money through illegal and unethical means. the duty of the accountant is to verify that every one transactions are correct.

2) Reporting – various agencies like the inner Revenue Service (IRS) require some transactions reported beneath particular classes. this is often done principally for proper tax deductions and benefits. the corporate or individual needs to take care that they are deducting the proper transactions. Categorizing them, or filing them, helps keep it all straight.

3) accurate money Standing – When the accountant finishes the money reports, anyone might consider the report(s) and see how well the corporate is doing. This communication is great for anyone seeking to take a position within the company, loan them money, or perhaps work for them. sensible and successful money ventures are solely accomplished once trust is established between the assorted parties.