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Accounting is a field that involves keeping track of a corporation's financial transactions. Financial accountants create and issue financial statements of a corporation, offer timely and accurate information to management and make sure that every regulatory reporting requirement is met. The goal of accounting is to offer the valuable, reliable and accurate information concerning the financial status of an organization. According to Francois, ( 2011) financial statements summarizes the financial activities of a business for the year and are utilized by banks, shareholders, employee bargaining units and general public to assess the financial value of the corporation.
The duties of accountants differ according to the type of an organization one is working for. Corporations give financial statements regularly and these statements are regarded external since they are issued to individuals who are outside the corporation, with the major recipients being stockholders or owners, and certain lenders. If the company's stock is traded in public, however, its financial reportings and financial statements are widely circulated and information reach secondary recipients like customers, employees, competitors and labour organizations. External financial statements are utilized by a wide range of individuals in a wide range of ways and therefore financial accounting utilizes common rules called generally accepted accounting principles. Accounting principles are not fixed, but are dynamic so as to respond to business, social and economic change (Society of Certified Financial Accountants, 2011).
Accountancy job outlook
Accountants have more job opportunities because almost every business and millions of families and individuals in the U.S utilize the services of financial accountants. In 2008, there were approximately 1.3 million auditors and accountant working in U.S and this figure is anticipated to rise by 22% by 2018. Financial accountants ensure financial aspects of individual of business life are efficiently run and maintain tax obligations and track of records. Depending employer or type of industry, financial accountants have a salary range 54, 000 dollars to 88, 190 dollars in a year (Page, 2011.)
There are so many benefits associated with the field of accountancy. One of them is the big salary as I have stated before. An accountant who is able to keep clean records of an organization gets well paid as long as the organization is performing well in the market. Another benefit associated with accountancy is the opportunities available for career growth and expansion. For an accountant to remain competitive in the market, he or she has to obtain a masters degree in business administration. It is therefore a competitive field where one has to learn more and this is an advantage to the accountant. Once an accountant is registered as a Certified Public Accountant, one gains the opportunity to practice independently and this increases job opportunities. An accountant can also work in any industry since every organization must require an accountant. Generally, the accounting field has many benefits but just like any other field, it is has its associated challenges.
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Challenges in accountancy
Financial accounting is intended to offer information in form of statements like profit and loss account and balance sheet for duration of one year but a corporation needs appropriate information at regular intervals for the management to plan and get corrective action. This has been a challenge to the accountants but it is being solved by the introduction of computerized accounting like the HiTech financial accounting software which offers monthly balance sheet and loss and profit accounts.
Financial accounting also does not consider non- monetary transactions such as competition faced by business and thus financial accountants is deprived vital non monetary information but this limitation has been solved by accounting software such as CRM and MIS( IFRS, 2011).
This information has changed my attitude towards accounts after realizing that accounting is the most marketable field and more than 20, 000 graduates gat jobs each year. Financial accounting jobs are in plenty even in the present weak economy because it's mandatory for businesses to do auditing, booking and balancing of profit and loss accounts.