Introduction to Accounts
In simple terms Accounts is "the language of businesses. Accounts is a means of reporting, recording, summarizing, reporting and interpreting economic data. It is a system that serves the users need of accounting information. Accounts is used by everyone in one form or the other and therefore understanding of accounts is beneficial for all. Accounts plays an important role in promoting every type of economic activity in public, private and nonprofit sectors.
Accounting is a process that includes step of financial transactions. These steps together make Accounts cycle. There are 9 major steps involved in accounts.
- Collection and study of data
- Recording of transaction in Journal also called Journal Entry
- Posting in Ledger
- Preparation of unadjusted trial balance
- Correcting record
- Adjusting trial balance
- Preparation of financial statements
- Closing the records
- Post- closing of trial balance
Advantages of Accounts
- Measure profit and loss – At the end of every financial year, profit and loss calculation is done that informs about net profit or loss incurred by the company.
- Tells about financial position – At the end of every year, a balance sheet is prepared that tells about the value of the assets and liabilities of the business.
- Comparative study – Keeping every year's accounts record helps to compare the current and previous year's results. This helps to take major managerial decisions.
Accounts give students a chance to hone on their mathematical skills and learn how to apply their knowledge in a business setting. There are many courses offered in accounts..
- Cost Accounts - Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability.
- Management Accounts - According to the Institute of Management Accountants (IMA): "Management accounts involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy".
- Financial Accounts – It is a field that is concerned with summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption.
- Tax Accounts – It consists of methods that focus on taxes rather than public financial statements. Tax accounts focuses on items such as income, deductions, gain or loss, etc. that affects the tax burden of individuals.
- Social Responsibility Accounts – It is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large.
Areas of Accounts
- Accounting Basics
- Accounting Information System
- Balance Sheet
- Financial Statement
- Cash Flow statement
- Decision Making
- Time Value of Money
Accounts Career Opportunities
- Accounting Assistant
- Accounting Clerk
- Accounting Manager
- Accounts Payable Clerk
- Accounts Receivable Clerk
- Budget Analyst
- Certified Internal Auditor
- Chief Financial Officer - CFO
- Forensic Accounting
- Government Accounting
- Payroll Clerk
- Staff Accountant
- Tax Accountant
Students opting for accounting courses thus have lot many career opportunities. Students pursuing accounts as their subject have great career opportunities as every company needs an accountant for a smooth running of business. They even can work as consultants where they can offer accounting and financial services to different organizations.
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