What is accountancy?
Accountancy is the process of documenting, categorising, and reporting on business transactions for the purpose of running a company or a commercial enterprise. Management receives input on the financial outcomes and overall health of a firm via this process. The most important accounting responsibilities are listed here.
For the most part, the recording of commercial transactions includes the issue of customer accounts, the payment of supplier invoices, the recording of client cash receipts, and the payment of workers. The billing clerk, payables clerk, cashier, and payroll clerk are responsible for these duties.
Several corporate transactions are non-repetitive in nature, which necessitates using journal entries to document them in the accounting records. Fixed asset accountant, general ledger clerk and tax accountant are more likely to be engaged in journal entries.
There are some accountants who have worked hard to compile a collection of accounting records. The general ledger summarises their work. An organization's financial records are organised into many accounts, each tracking a specific transaction type such as product sales, depreciation costs, accounts receivables, and debts, among other things. Customer billings may be recorded in a subledger and just the sum of their totals be rolled into the general ledger for large volume transactions. Each month, the general ledger's closing balances may be amended by amending entries, mostly to capture unrecorded costs.
General ledger information may be used to generate financial statements and may also be utilised in internal management reports.
The reporting components of accounting are extensive, thus they have been broken down into smaller specialisations, as stated below.
Accounting for financial transactions is the responsibility of the general ledger accountant, the controller, and the chief financial officer. Accounting frameworks, such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), are used to provide these financial statements (IFRS).
An analyst and a cost accountant work to enhance profitability in a firm and report their findings in a form that is understandable to management. As with activity-based costing systems, their reports may be obtained from the primary accounting system or from a separate data accumulation system. In management accounting, the form of the reports presented to management is not limited by any accounting system.
Accounting, in its simplest form, entails all three of the aforementioned activities: recording, categorization, and reporting.
5 reasons to study a Accountancy
- High demand
Every business in the world has a need for an accounts expert who knows money and is capable of managing the company's accounting systems, which means there will always be a demand for individuals to fill these positions in the future. Furthermore, accounting abilities enable you to transfer those talents to any organisation or sector that piques your interest, regardless of location. In the event that you currently work in a firm, adding accounting abilities to your CV will allow you to make a significant contribution to the financial operations of the company and advance even more quickly up the corporate ladder.
- A great fit with self-employment
If you are thinking about establishing your own business, understanding how to effectively read the financial statistics of your firm can put you in a better position to succeed. Having the ability to build your own budgets and make sound financial choices will increase your confidence and the success of your company.
- Job security
Accounting has been referred to be "recession proof". As the economy goes through its ups and downs, accounting professionals are always in demand to handle both the good times and the bad. The future looks bright; the Australian government expects more than 84,000 new jobs in accounting and related sectors to be created over the next five years across the border, so there are lots of opportunities.
- Skills for life
In the business world, working with numbers and understanding financial records is sometimes seen as a foreign language by many people, even those with many years of expertise in the field. Providing yourself with the ability to not only generate financial reports, but also to understand them and then convey the information to others can improve your career chances as well as the prospects of the company. Accounting is a skill that will serve you well for the rest of your professional life, since taxes are one of the few things that are guaranteed in life, and accounting is no exception!
- A truly complementary qualification
Becoming proficient in the very practical skill of number crunching is not only beneficial in and of itself, but it also supports a wide variety of other professions in company, including those in finance and business analysis as well as investment and risk management. Individuals in today's working settings must be multi-skilled, and adding these critical abilities to your tool belt can help you advance your career opportunities in the corporate sector.