Accounting, having been coined as the universal Language of business, is not far from the truth, because it is essential for every business for identifying measuring, recording and communicating the relevant, reliable, consistent and comparable information about an organization’s economic activities. Accounting as a discipline has existed since 15th Century and in this day age it’s considered as one of the fastest growing fields.
As the importance of accounting grows in today’s world, so does the need for a solid background and a high level of understanding of both the theory and practice of accounting. Accounting education is important and it can be applied to any job industry. The discipline of accounting is one of the most stable ones and provides a lot of career opportunities.
Not only is accounting important in the business world it is also beneficial for every individual to know as well. Accounting is indirectly associated to our daily lives. Each and every person at some point of time in life needs financial information or it would be more appropriate to mention that whether knowingly or otherwise, every one of us uses some accounting skills, such as, making financial investment decisions, assessing mortgage interest rates, evaluating whether buying or leasing a car, automobile or equipment, budgeting the monthly income or using strategies for financing children’s education etc. If nothing else, one can use the skill of balancing check books by taking in to account the transactions relating to deposits and withdrawals in order to know how much actual money one has had in his or her checking account at any given time.
It would be proper to say that on a personal level, everyone needs collecting and using accounting information.
Accounting is vital that everyone, not just business students, needs to acquire understanding for personal purpose. It’s not that accounting is a topic which is reserved for business only. Neither it’s just for accountants, but the truth is that it's for anyone who wants to get the benefits from basic understanding of accounting or having a good grasp of accounting. Thus, the skills of accounting help a person to make fruitful financial investment decisions while its principles allows one to create budgets and gain accurate understanding as to where money goes including managing money, banking safely, tracking credits and planning for the future.
Accounting is not a new or just a fascinating career, but offering a stable rate of employment even amidst economic fluctuations, it will continue to grow at a steady rate providing reasonable remuneration and perks and various career opportunities for those who have a solid understanding of accounting. It must be noted that accounting today is not just about numbers, but a mix of analysis, problem solving ability involving effective communication skills to deal with different people. It’s a multifaceted discipline that gives professional accountants an in-depth working knowledge of the various functional areas of organizations including finance. It requires the use of knowledge and technical expertise to bring clarity to a wide range of complex accounting issues.
Accounting is a field of study that opens doors in every kind of business. Hardly could there be just a few of the many positions in which an understanding of accounting may not be necessary. It’s such a discipline that is required by almost everyone regardless of job positions. It’s so important in this day and age that without the basic understanding of accounting, the students would be unprepared for the real world. While accounting is the basic frame work of any business, a well-qualified and trained accountant can act as the scaffolding to a business helping to make decisions, to fulfill the goals of an organization and secure the future of a business guiding the organization confidently to sustainable success.
Self employed can face income tax audit in United States either as part of the usual sample testing, or because of certain triggering information related to them that gets flagged by the system during risk assessment of taxpayers. It could be due to unexplained behavior on their part, or due to other factors.
Financial Analysis is important to a business for a number of reasons. The nature of analysis is different and it is undertaken depending on the need of the analysts.
People often do not think twice about saving money. This leads to chaos during emergency situations.