Accounting or accountancy is an unavoidable part in every business and even for a day to day life of common people. It is one of the important field of finance and earlier considers as same as finance and finance management. Accounting is a branch of commerce. One who do accounting are called as accountant.
What is Accounting or Accountancy?
Accounting is summarizing, reporting and analyzing financial transactions to keep financial records. It is the study of how businesses keep, deal and maintain their records of daily transactions for a period of time.
Accounting is defined as “the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof” (definition by the Committee of Terminology set up by American Institute of Certified Public Accountants in 1961).
Roles and Responsibilities of an Accountant
Work role of accountants are mainly to keep the accounting records of all daily transactions of the business in a proper and correct manner. These transactions are used for the purpose of planning activities, managing and furnishing tax returns, analyzing the prospects of business, preparing future plans and budgets, investment of excess funds etc. Accountants are also used these records to prepare financial statements and ratio analysis for the use of business.
Now a days as the computer has involved in accounting process, computer based accounting software like tally is used in accounting purposes. So work of accountants is involved with computer and related software.
Key areas of accountants include management of accounting, financial and ratio analysis, budget preparation, cash flow and fund flow analysis, auditing, taxation.
Educational Qualification Required
Basic degree required to become an accountant is Bachelor of Commerce (B Com.) from a recognized university or college. One can go for higher qualifications in this field by obtaining M Com (master of commerce). M Phil. and PhD can be obtained for those who want to enter in the field of academics.
Skills and Knowledge Required
An accountant must have good accounting knowledge and rules related to accounting. He / she must be good in mathematics and have computer knowledge. Other skills required to become an accountant are good analysis skills, ability to interpret data, figures and facts, team work skills, integrity and accuracy, computer knowledge, communication skills, etc.
How to become an Accountant?
To become an accountant one has to opt for commerce in 10+2 or equivalent as their stream of study. After that they can opt for a bachelor’s degree in commerce (B Com) and obtain a post graduate degree in commerce (M Com). Now computer literacy and certification courses in accounting software like Tally is becoming essential to get a good accounting job.
Some other advanced courses one can obtain are Chartered Accountancy (CA), Company Secretary, MBA in Finance, ICAI (Institute of Cost Accountants of India) formerly known as ICWAI (Institute of Cost and Works Accountants of India), Forensic Accounting.
Different Courses in Accounting or Accountancy
Courses or careers that are related to the accountancy are Chartered Accountancy, Company Secretary, Actuarial Science, Cost Accountancy, Banking, etc. Other specific job related to this field is forensic accounting. This deals with the investigative accounting of a firm or client involved in a legal dispute of a criminal nature.
Where do I get the Job?
Any business or sometimes persons requires accountant for maintaining books of accounts for their business or other transactions. Thus accounting is a career which always offer job opportunities. As the business and economic activities are increasing, the scope for accountants are also increasing.
Jobs are available in government, semi government, corporations, big or small business entities, non-government organizations, home-based business, partnership firms, etc. The scope is widespread in all industries as the proper maintenance of accounts is a mandatory for any business. Teaching is another option available for accountancy career. To become a teacher in accountancy one have to obtain specific degree like B. Ed. or M. Ed. or M Phil. or PhD.