In this article, we will learn that how we can make a career as accountant. There are many people who have their aims to become a successful persons. They are working hard to complete their aims. There are many things by which a person can become a successful person. There are some people who wants to become an accountant. Posts of accountant are there in all departments, state and central government almost in all departments.
Who wants to become account they must know that accountants plays a very important role in every industrial organization. We can also say that without an accountant our organization cannot work effectively. Accounts are the persons who practice the are of accounting. Accounting is a special branch of knowledge.
In accounting we round very useful data of business and there should be an expert to record the important data. The person who records the data is called as an accountant. Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events which are, in part at least, of a financial character, and interpreting the result thereof”.
There are many responsibilities of an accountant to make a career in it. A day in the life of an accountant is full of responsibilities like enter transactions and reconcile account balances, prepare budgets, stay up to date on state and local tax laws and enforce payment terms with accounts.
Types of Accountants
There are three types of accountants-
1. Financial Accounting– Financial accounting is measurement, processing and communication of financial information about a business or organization to the owner, investor, creditor and all related parties.
Financial accounting is the art of recording, classifying and summarizing in a significant manner in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results thereof.
2. Cost Accounting– Cost accounting is system which is used manufacturing industries for purpose of tracking flow of inventory through various stages of production.
3. Management Accounting– Management accounting is a tool to assist management in achieving better planning and control over the organization. It comprises of two words, management + accounting i.e., accounts which increase managerial efficiency or providing all those information and facts which are necessary for managers.
Duties and Responsibilities of an Accountant
Accountants manage the financial statements and records of people and organizations. the sector of accountancy is pretty vast and there are jobs for accountants with varying years of labor experience. A staff accountant is an entry level position for an accountancy job.
The duties of an account are:-
- Examine financial statements to form sure that they’re accurate and befits laws and regulations. Organize and maintain financial records.
- Suggest ways to scale back costs, enhance revenues and improve profits. Assist the auditors during audit process.
- Analyze company’s business transactions and present during an in depth manner.
- Keep track of the expenses. They meticulously supervise the inputting of economic data into ERP systems.
- Preparation of monthly, quarterly and annual financial report.
- Maintaining accurate and up up to now records of all financial transactions. Bringing to the eye of the management any abnormally within the disbursement of the school’s funds.
- Advising and assisting the management within the compilation and control of college budget Reconciliation of bank statements.
- Advising on the event of economic management system, system, the use of economic management software, the medium term and program budgeting Cooperation with external auditors to hold out annual external auditing.
Accounting principles are the rules of action which are universally followed while giving accounting treatment to various assets, liabilities, expenses and incomes. It is necessary to make career as accountant
• Economic Entity– Owner and business as two entities have different liabilities.
• Conservatism– If a situation arises where there are 2 acceptable options for reporting an item, accountant goes for less favourable option.
• Historical Cost– Recordation of the assets should be on their purchases values purchased nor or year ago.
• Going Concern– Business may continue forever and will carry out its goals and plans in foreseeable future with no intension of liquidation.
• Materiality– The information which will have a material effect should form a part of the financial statements.
• Reliability– Only those transactions should be recorded that can be proven and has significant evidence.
• Revenue Recognition– Recognition of revenue should be on the accrual basis of accounting.
• Consistency- consistency in the usage of methods, principles until another outstanding method cones proves to be better.
• Full Disclosure– Disclosure of all important information for the users, lenders or investors within the financial statements or as a footnote.
• Matching Concepts– The debit-side should match with the credit side.
• Monetary Unit– Transactions that carry a monetary value and stated in terms of a currency (for example $ in the U.S.) should not be recorded.
• Revenue recognition- recognition of revenues should be on occurrence of transaction regardless of the actual receipt of the amount.
• Time Period– There should be a standardized time period of reporting the financial statements usually monthly, quarterly or annually.
GAAP and Its Importance-
Meaning of GAAP-
• GAAP stands for Generally accepted accounting principles:
• Principles of accounting are the general law or rule adopted or proposed as a guide to action, a settled ground or basis of conduct or practice.
• GAAP gave substantial authoritative support and general acceptability. GAAP must be relevant (meaningful), objective (reliable) and feasible (implemented without much cost and complexity).
Importance of GAAP:-
1. Language of business- GAAP are said to be language of business as these communicative financial results to stakeholders.
2. Standardize- All companies follow the standard process for preparing financial statements.
3. Comparability- Standardizing financial statements helps in comparing one company with other.
4. Company performance- It ensures that company provide true and correct information.
5. Relevance- GAAP trim information to be revealed without compromising accuracy and transparency.
6. Reliability- Statements become reliable for verification and also to assist management.
7. Keeps a check on cheating- GAAP ensures that companies comply with its principles and reveal all relevant information.
8. Check on spending- this helps in keeping a check on how govt. Is spending the tax income.
• Financial accounting– Focus on external users and GAAP rules.
• Managerial accounting– Focus on internal users and is not necessarily GAAP-driven. Also provides data for financial accounting. This includes: 1) cost accounting 2) cost management
Skills Needed to be an Accountant
Accountants manage the financial statements and records of individuals and organizations. Some skills are necessary for a successful accounting career:- analytical skills and critical thinking, management of finances and budgets, organization and tine management, business knowledge and proficiency, oral and written communication and collaboration with others are important for accountant career.
Nature of work:-
• Prepare and examine financial records.
• Ensure that financial records are accurate and that taxes are paid on time.
• Assess financial operations and work to help ensure that organizations run efficiently.
• Compute taxes owed, prepare tax returns, and ensure that taxes are paid properly and on time.
• Suggest ways to reduce costs, enhance revenues and improve profits.
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Qualification for Becoming an Accountant
These are the basic eligibilities to become a accountant or to establish career as accountant.
1. Complete +2 with commerce subjects( accounts, economics, maths etc.)
2. After +2 , do B.com, there are many options in this-
• B.com in accounting and finance
• B.com in accounting and commerce
• B.com in accounting and taxation
• Bachelor of commerce in accountancy
• BBA in accounting and finance
3. 1-5 years of work experience
4. Ability to use logic and reasons to identify the strengths and weaknesses of alternative solutions.
5. Ability to identify complex problems and reviewing related information to develop and evaluate options and implement solutions.
6. Oral communication skills
7. Ability to work occasionally required overtime.
Age Limit For an Accountant-
Many jobs are there which are dependent on age-limit also. Age limits are set according to categories also. But in some jobs there is no age limit issues. In case of accountants, there are different age-limits are to be set different by departments. But average of age-limit for general is 21 to 27 years.
Some departments age limit is also near about 40 years. In government job of accountant, there selection is done by taking exam and then interview is taken for government job. But in private they may be taken your skill test and then interview or direct interview also. In both government and private job may asked for your experience also.
Accountant Interview Questions –
1. Discuss your resume and tell us something about your background?
2. Why should we hire you when your age limit is below the required age?
3. Discuss your educational qualifications? Did you take any training of handling accounts?
4. How many accounts projects have you handled till date? Tell us if you have done any complicated financial assignment within short deadlines?
5. What is your method to monitor the performance of your subordinates?
6. What accounting processes have you developed or improved?
7. Have you helped to reduce costs at your previous accounting jobs?
8. Which accounting applications are you familiar with?
Salary of an Accountant-
Experience is very important in any job. If you are more experiencing person then you will got good salary. So experience is must. Salary of an account is different in different departments. In private job of an accountant there is no fixation of salary. In private an accountant may be suffering from up and downs in salary. But in government job of an accountant salary is fix. During more experience promotions are happened and salary will increased. In this field, there is so much income.
This article is bases on how to become an accountant or how to make career as accountant. If you have set a aim in your mind and have power to complete your aim then you were do everything. In this article we have discussed on an accountant Career.
If you want to become an accountant you must know to these things about accountant. You must have the knowledge of that which you want to become. We hope this article helped you with the answers of your questions through the data provide on www.amkueducation.com. If so, Stay tuned with to read more interesting article about various topics.
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