Accounting Industry

Introduction to Accounting

Accounting is a system by which financial information is identified, recorded, analyzed, summarized, and reported for the use of decision-makers. Put simply, accounting is the language of business. An accounting system tracks down all the financial activities of an organization (whether it’s the great Fortune 500 company, a small independent book publisher, a non-profit theatre, or a government agency), which shows them when and where all the money has flowed out of the organization and commitments that have been made. This helps in the decision-making process by allowing managers to evaluate organizational performance, by indicating the financial risks and benefits of choosing one strategy over another, and by spotlighting current weaknesses and opportunities.

Core Functions of Accounting

Accountants are responsible for four core functions:

• Accounting: This function helps in overseeing and managing the financial records and operations of an organization to ensure compliance with all regulations of an organization and industry.
• Auditing: Auditing provides assurance that the internal controls are in place to mitigate their organization’s financial risks, ensuring governance processes are effective and efficient, and that organizational goals and objectives are met. It also determines if an organization’s financial activities are reported accurately in its financial statements to regulators and investors.
• Assurance: Defined by the American Institute of Certified Public Accountants (AICPA) as “independent professional services that improve the quality of information, or its context for business or individual decision-makers” (American Institute of Certified Public Accountants, 2020).
• Tax: Preparing tax returns helps corporations, other organizations, and individuals. Tax also involves developing strategies to reduce the amount of taxes paid and examining the tax implications of various business practices.

Perception and Opportunities in Accounting

Despite the variety and dynamic nature of the field, accounting has always had a branding issue. The name "Accounting" often gets stuck in public opinion as a boring, burdened career loaded with math enthusiasts who love crunching and playing with numbers. However, this perception is misleading. Accounting is often ranked as one of the most desirable professions available—including being ranked as one of the top 25 jobs in 2016 by U.S. News & World Report (U.S. News & World Report, 2016). In the same year, CareerCast.com ranked the career of “accountant” in the top 50 best jobs in terms of work environment, income, employment outlook, physical demands, and low level of stress (CareerCast, 2016). Salaries are also strong for accountants. In 2015, accountants and auditors earned a median salary of $67,190, according to the U.S. Department of Labor, earnings that are much higher than the national average ($48,320) for all careers (U.S. Department of Labor, 2015). Opportunities in the accounting industry exist at every career level, although accountants and auditors are the prime movers in this field.

Specializations within Accounting

In addition to this industry, accounting also has a variety of other core specializations that continue to grow as government regulations increase and business opportunities expand. They include:

• Advisory/Consulting Services
• Business Process Outsourcing
• Enterprise Risk Management
• Entrepreneurial Services
• Environmental Accounting
• Expert Witness Services
• Feasibility Studies
• Forensic Accounting
• Healthcare Accounting
• Information Technology
• Insolvency Services
• International Accounting
• Litigation Accounting
• Management Consulting
• Mergers and Acquisitions
• Personal Financial Planning
• Restructuring Services
• Strategic Planning

The Role of ICAI in India

The Indian Institute of Chartered Accountants (ICAI) is the national professional accounting body of India. It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949, enacted by the Parliament to regulate the profession of Chartered Accountancy in India. ICAI is the second largest professional Accounting & Finance body in the world. Alongside, the rapid growth of ACCA has impacted the scope for ICAI, making it the third largest in terms of membership. Accountancy provides various job opportunities and career development to new and upcoming talent and graduates with a wide range of qualifications.

Conclusion

In conclusion, accounting is not just about numbers; it is a dynamic field that offers a multitude of opportunities and challenges. As businesses grow and evolve, so does the demand for skilled accountants who can navigate complex financial landscapes and provide strategic insights. The perception of accounting as a mundane profession is outdated; it is a career that offers both stability and excitement for those willing to delve into its depths.

References

• American Institute of Certified Public Accountants. (2020). Assurance Services. Retrieved from https://www.aicpa.org/
• U.S. Department of Labor. (2015). Occupational Outlook Handbook. Retrieved from https://www.bls.gov/ooh/
• U.S. News & World Report. (2016). Best Jobs Rankings. Retrieved from https://money.usnews.com/careers/best-jobs
• CareerCast. (2016). Top 50 Best Jobs. Retrieved from https://www.careercast.com/jobs-rated/best-jobs-2016