In the current competitive environment, accounting has become a very important entity for any business, whether it is small or big. If you want to discuss the term “Introduction to Accounting“, then you have to look at these terms- Importance of Accounting, Opportunities in Accounting and Fundamental of Accounting.
Importance of Accounting
Accounting is primarily concerned with assisting an individual or business to keep an accurate record of the entire financial portion. Therefore, every individual or business requires having a record of all the financial transactions that they do on a regular basis. This is really important to have a fair idea about the current status of their business. The need of accounting becomes so vital when they want to enquire the income statement (profit and loss statement) of their company.
Career Opportunities in Accounting
Accounting is sort of system, which is dedicated to quantifying business activities, transforming information into reports and communicating the output to top level management. Therefore, some major career options in accounting are given in the following way:
Public Practice- Today, most job seekers start their career in accounting as a public accountant. Employing some staff accountants, these professionals charge some fee for giving their services.
Commerce and Industry-An accounting group is found in almost every organization whether small or big. This group is mainly concerned with organizing and preparing financial statements; taking care of tax issues, keeping track of costs, and working on international transactions.
Government Service- In government organizations, accountants either work at the local or state level or the federal level.
Fundamental of Accounting
Principles and concepts guide accounting to a great extent. Two key fundamentals of accounting are described under this section.
Ethics—A Key Concept
The main purpose of accounting is to render the users with essential and useful information for making decisions. This should be useful and trusted as well. This is majorly concerned with demanding ethics in accounting. Ethics are beliefs that help the users distinguish right from wrong. They are usually taken as the standards of good and bad behavior.
Generally Accepted Accounting Principles
Financial accounting practice is executed with the help of rules and concepts known as generally accepted accounting principles (GAAP). The need of understanding these principles becomes very important when it comes to using and interpreting financial statements effectively and properly. GAAP focuses on making information in financial statements comparable, reliable and relevant as well.
These topics are really important to consider when it comes to describing the term “Introduction to Accounting“.
