ACCOUNTANCY

Accountancy is the field of managing, organizing, recording and reporting the financial information of a business. The incomes and expenses of an organization are arranged with standardized methods to produce a financial report to provide feedback about the financial status of the organization to the authorities or the external recipients.

An accountant in an organization is responsible for recording the transactions in reports for the purpose of sharing them to the recipients outside the organization such as owners, stockholders or lenders. This process is known as financial accounting. The primary aim of financial accounting is to provide information about the organization to the people who are interested in working with them. While presenting the documents of financial accounting, an accountant should follow certain procedures known as accounting frameworks. An accounting framework is a set of rules to be used in measuring, organizing, analyzing and reporting the financial information for the recognition of the authorities. The most common framework is generally accepted accounting principles (GAAP) which is generally used in U.S.

Another branch of accountancy is called cost accounting. A cost accountant is responsible for determining, gathering and tracking the actual cost of the products that use the economic sources of the company. The main objective of cost accounting is to identify the most profitable products or facilities for the company.

Management accounting is in cooperation with cost accounting in terms of the analysis of the cost information. The main objective of a management accountant is to come up with solutions to make the most valid decisions for the sake of the company. By analyzing and comparing the data from the financial and cost accountants, a
management account determines both the achievements and problems of the company. In this case, management accounting department is highly crucial for the future of the companies or organizations.

Qualifications of an Accountant

The main characteristics of an accountant are a proficiency/degree in mathematics and economy, as well as good communication and computer skills. Another crucial skill for an accountant is working in a well-organized manner. As an accountant, the person is expected to prepare weekly, monthly or annual reports all of the incomes and expenses of the company with the analysis of the problems and solutions to suggest for the profits of the company. Therefore, a systematic and detailed working style is highly important as one little miscalculation may damage the company seriously.

Teamwork is also one of the major skills for an accountant as many accountants work on teams. Thus, accountants are not only responsible for their own actions, but also the overall course of their teamwork. In order to improve the productivity and performance of their team, accountants must be able to arrange their time effectively, have good communication skills, know how to mentor and lead their teammates as well as being a part of the team.

To conclude, an accountancy department plays a crucial role for the future of an organization or company as it is responsible for the financial relationships with the external networks, determining the problems with the current working policy and offering suggestions for the improvements of the problems that are detected in order to
increase the company’s profits.