The Role And Benefits Of Accountancy

When you hear the word  accountancy, it makes you wonder what accountancy really means. Many people come to a quick conclusion that  accountancy is just a word or term to go with accounting. Many people do not realize however, that  accountancy is the life of any thriving business and is a necessity within any establishment. Once you understand what  accountancy is, then you will realize how important of a role it plays in how we run and operate our business finances. We will go over some of the basic aspects of  accountancy.

The core of  accountancy is maintaining extremely accurate records of any and all aspects of a business and how it earns and spends money. You must maintain multiple types of records to account for every aspect of your business, which is why  accountancy can become a very complicated process but is necessary. Different parts of these separate records are your accounts receivable and payable, your current inventory, all of your sales orders for your current tax period as well as an accurate database of your past sales records and your purchase orders. You must also maintain a accurate account of your bank statements and a backup record to cross reference all of your records to make sure they are accurate and up to date. This is only one part of  accountancy.

There is another aspect of  accountancy which involves knowing what to list each transaction as. Now in  accountancy you need to be able to define what are your assets, knowing how to identify your liabilities, being able to show your expenses as well as you positive income.  In order to do this properly, you must know how to define these different terms and what they do and do not apply to. This can make what some would view a simple task of maintaining proper records even more complicated.

These two parts of  accountancy are extremely important, not only for tax purposes, but also for banking reasons as well as audits that can arise form businesses that you interact with.  Accountancy also provides several benefits to businesses that use accountancy properly.

The biggest and most obvious benefit of  accountancy is being able to pay your taxes accurately and on time. However, this is a small benefit compared to other vital benefits that  accountancy brings.  Accountancy can help you keep a accurate spending balance for your bank accounts, as well as give detailed reports of of all of your expenses and cash flow which is necessary for audits. One benefit that you can gain from  accountancy, is maintaining accurate expenses and being able to reflect that in your products prices. If you do not accurately maintain records of your costs, then you could accidentally under price your products and actually lose money.  Accountancy will give you a detailed projection of your costs and accurately show you your profit margin that you can compare with your labor and other expenses.

Many businesses suffer financially because they do not keep accurate records for every aspect of their business, which is why accountancy plays a very strong and important role in a business. Without accountancy, a business would suffer and eventually fail as it would have no records or projections to help it progress.

The Benefits of an Accountancy Career

There is an increase in demand for knowledgeable CPAs all over the world. When you say knowledgeable, the accountant must know how to perform various duties like bookkeeping, tax preparation, company audits, and even project management. The demand for the best CPAs in different industries is due to the updated laws, business practices, and the reliance to technology. 

Here’s great news to those accountancy graduates who love to work with numbers and who are willing to learn the newest accounting software – there are a lot of job opportunities out there, waiting for qualified accountants. According to statistics, the accountancy field is growing at a very fast rate. Presently, there areabout 1.2M accountants in different industries including corporations, public agencies, charitable organizations, and educational institutions; this is the best time to join the accounting field.

If you’ve earned a Master’s degree in accounting, the better because you have a higher chance of landing a job; those who have a bachelor’s degree can also take advantage of the various job opportunities online or in the local papers.

The licensing requirements for accountants vary from state to state. This is a very important consideration when choosing a degree program in accounting. Before you can take the exams to become a CPA, you will need a 150 hours course. By 2009, almost all the states in the US will follow the same requirements.

About the salary of accountants, the lowest rate is roughly $35,000 per year and that is for starters only. Once you’re hired and you’ve been with a company for many years, the salary will naturally increase. Did you know that the senior accountants can earn as much as $80,000 per year on the average? That’s a lot of money, right? Being an accountant has its benefits, especially in term of salaries.

It seems that accountancy graduates of today are given more job opportunities. You should be thankful because unemployment is prevalent in many areas. If you’re a graduate of accountancy, it means that you have better chances of finding a good paying job as compared to graduates of other courses. If you try to analyze the business situation, accountancy is essential to the success of a business organization or company. With the growing number of business worldwide, big scale or small scale, accountants are badly needed.

For those who are just going to start college, why don’t you consider an accountancy course? According to statistics, the demand for knowledgeable accountants will increase in the years to come, so why not join the force? It will only take a couple of years to graduate. Make sure that you have excellent grades so that you will have an edge when you apply for a job. It pays to study hard now because you can use the knowledge in the future. You can be one of the assets of the biggest company in the world – now who wouldn’t want that?

The benefits of an accountancy career are nothing compared to other degrees in college. Although some accountants have bad reputations, most of them are still working honestly. These accountants are contributing their knowledge and skills for the betterment of the business industry.

If you want to be part of them, go ahead; just try and apply for a career in accountancy. Who knows, tomorrow you might already have a job.