Career in Accounting

January 22nd, 2016

Making a successful career in his life is the ultimate aim of a student. From the starting of his education, a student starts planning about his career goals and aims he need to achieve. Medical, engineering, doctors, scientists, biotechnologists, etc are the careers which one can opt for post completing his studies in the science field. After science, be it medical or non- medical, commerce is the field which attracts students. Many students have been seen opting for career in accounting or commerce after passing their secondary school examinations.

Career in accounting or finance becomes the goal for the student’s pursuing studies in the field of sciences. The different fields to which the commerce subject is divided are: 1.)Accounting. 2.)Banking. 3.)Finance. 4.)Computers. 5.)Business studies. 6.)Economics.

After completing his senior secondary education, commerce students mainly opt for business management, computers or accountancy courses as their graduation subjects. The most popular course which has become the career goal for almost every commerce students these days is career in accountancy. Accounting Job involves the responsibility of maintaining the accounts of the organisation, analysing it and further adding on to the economic development of the company.

The three different fields or courses available in the field of accountancy are:

1.)CA- Charted Accountancy 2.)ICWAI- Cost Accountancy 3.)CS- Company Secretary

All these courses are provided by special institutes and have their individual regulatory bodies, governing the course structure and further career developments in the respective fields.

Charted Accountancy: Charted accountant is the person responsible for few of the most important functions required to run a smooth functioning of the organisation in term of its monetary funds and finances like accountancy, auditing, taxation, etc. The Institute of Charted Accountants of India (ICAI) is the organisation responsible for the regulation of charted accountancy profession in India. The students for becoming a member of this institute, has to go through a series of examinations, appearing before which, he has to register himself with the statutory body of ICAI. There are three levels of CA examination, i.e. CPT- Common Proficiency Test, PCC- Professional Competence Course, and then is the final exam, which has to be cleared, after which the student becomes a members a member of ICAI and can practise his profession in charted accountancy. The minimum time required to do this entire course is 3.5 to 4 years, which is in very rare cases, because the examination is very tough and it consumes years to pass one level.

Cost Accountancy: In this field the person responsible, is required to manage the cost related functions of the company in an organised way, he needs to collect, analyse and assemble all the cost related departments. He also needs to check, the utilisation of the funds is done in the right manner and in the productive direction. The institute responsible for application of the job responsibilities of cost accountancy in the country is The institute of Cost and Works Accountants of India. For taking admission in this course, students needs to clear three levels of examination, conducted by ICWAI, and registration for examination can be done after passing the senior secondary exam. The students having passed out all the three levels of ICWAI exam, other than working as cost accountant in public and private organisations, can also opt for working as a consultant in the field of finance management.

Company Secretary: This is another field which can be opted by the accounts or commerce students after passing their 12th exams. It is regulated by the Institute of Company Secretaries of India, which takes examination of the students applying for the course of CS, there are three levels for the same, after which the student can apply for CS in different companies and industries. As the name suggests, the job is not of a clerical or secretarial job, the CS is responsible for all the legal, board, trustee, managerial and corporate level decisions are taken with reference to the Company Secretary.

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Accountant Job Description

December 26th, 2015

An accountant’s job entails working to ensure that business firms
and individuals are keeping good records and paying taxes properly and
on time. Though the accountant job description for some accounting
positions may be simple, other accountant job descriptions are not quite
as clear because of the number of duties that are required.

In
general, an accountant performs vital functions to businesses, as well
as individuals, of all types by offering a very wide array of business
and accounting services, including public, management and government
accounting, as well as internal auditing. These four major fields of
accounting, and in addition to having a minimum of a bachelor’s degree,
each has a separate accountant job description.

1. Public Accountant

A
public accountant job description can be summed up in what most people
envision as “typical” accountant’s work. It involves performing a broad
range of accounting, auditing, tax, and consulting activities for their
clients, which may be corporations, governments, nonprofit
organizations, and individuals. Specialties in public accounting are
often chosen. For example, a public accountant may choose to concentrate
on tax matters, such as advising companies about the tax advantages and
disadvantages of certain business decisions and preparing individual
income tax returns. Other public accountants may choose areas such as
compensation or employee health care benefits, or may design accounting
and data processing systems. Still other public accountants may choose
to specialize in auditing financial statements and inform investors and
authorities that statements have been correctly prepared and reported.
Public accounts are usually Certified Public Accountants (CPAs), and
generally own their own businesses or work for public accounting firms.

2. Management Accountant

Another
accountant job description is that of a management accountant. Also
called a cost, managerial, industrial, corporate, or private account,
management accountants record and analyze the financial information of
the companies for which they work. The management accountant job
description includes a detailed listing of responsibilities, such as
budgeting, performance evaluation, cost management, and asset
management. Management accountants are often a part of executive teams
involved in strategic planning or the development of new products, where
they analyze and interpret financial information that corporate
executives need in order to make sound business decisions. They also
prepare financial reports for other groups, including stock holders,
creditors, regulatory agencies, and tax authorities. Management
accountants are usually a part of an accounting department, employed a
large company, and may work in many areas that may include financial
analysis, planning, budgeting, and cost accounting.

3. Government Accountant

A
government accountant works in the public sector, maintaining and
examining the records of government agencies and auditing private
businesses and individuals whose activities are subject to government
regulation and/or taxation. This accountant job description, while
detailed, is much more specialized. Government accountants are employed
by Federal, State, or local governments, and work to guarantee that
revenues are received and expenditures are made in accordance with laws
and regulations. Those employed by the Federal government may work as
Internal Revenue Services agents or in financial management, financial
institution examination, or budget analysis and administration.

4. Internal Auditor Accountant

The accountant
job description of an internal auditor can basically be summarized by
the job title. Internal auditors verify the accuracy of their
organization’s internal records, and check for mismanagement, waste, or
fraud. It is an increasingly important area of accounting, because
internal auditors examine and evaluate their firms’ financial and
information systems, management procedures, and internal controls to
ensure that records are accurate and controls are adequate to protect
against fraud and waste. They also review company operations, evaluating
their efficiency, effectiveness, and compliance with corporate policies
and procedures, laws, and government regulations. The accountant job
description of an internal auditor can vary with different companies,
and may include job duties such as electronic data processing,
environmental auditing, engineering, legal auditing, insurance reviews,
banking, and health care auditing.

Accountants in all four areas
can work for a company, or can be employed by an accounting firm, which
would in turn be hired by a company for consulting. An accountant can
also be self-employed, and provide accounting services to individuals,
businesses, or both.

Most accounting jobs include an accountant
job description that requires a bachelor’s degree, at minimum, in
accounting or a related field, and some accountant job descriptions
might include the requirement of a master’s degree or Certified Public
Account (CPA) certification, obtained through a four-part, Uniform CPA
Explanation prepared by the American Institute of Certified Public
Accountants (AICPA). While the two-day CPA examination is rigorous, and
only about 25 percent of those taking the exam pass every part they
attempt, CPA certification can greatly assist in the rate of pay
received, and in most states, the examination can be taken in two parts,
which may assist in preparing for and passing the exam.

According
to the United States Department of Labor, employment of accountants and
auditors is expected to grow at a faster than average rate, for all
accounting occupations from all accountant job descriptions mentioned,
through the year 2014. This is due to an increase in the number of
businesses nationwide, changing financial laws and regulations, and
increased scrutiny of company finances. In addition to these reasons for
new accounting jobs opening up, there will also be a need to replace
accountants and auditors who will retire or transfer to other
occupations.

The field is also becoming more specialized due to
technology and new, accurate accounting and auditing software experience
becoming a crucial addition to an accountant job description. An
accountant job description may include, in addition to educational and
technological requirements, strong interpersonal and communication
skills, simply due to the fact that most accountants work on teams with
others from different backgrounds, and will need the ability to
communicate accounting and financial information clearly and concisely.

Regardless
of one’s qualifications, competition in the accounting field will
remain strong for the most prestigious jobs, as well as for obtaining
clients for those accountants that are self-employed.

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Additional Skills For A Forensic Accountant

December 18th, 2015

To join the field of forensic accountancy, you need to be a certified forensic accountant (Cr.FA) or a certified forensic examiner (CFE). These are the certificates where accountants need to sit for an examination to obtain them. A person is required to be a certified public accountant (CPA) and should practice for two years before obtaining these certificates.

Here are tips for obtaining them:

Improve your interview skills
For becoming a CFE, one should know how to interview employees of a company or personnel to get their clues for investigation. If a person’s interview skills are not good, that person will miss important leads. With the right interviewing skills, you will not only be guaranteed a certificate, but also a great future as a CFE.

Knowledge of the law
During investigations, you should know what the problems are. In order to see what the problem is you have to know the prohibitions by law. By deciphering the law, it would be easier to see fraudulent practices and there wont be instances of “I did not think there was anything wrong with it” which show up, when there was surely something wrong going on!

Tech Competency
If you hate the computer, you will have to start to love using it. Forensic accountants have to use a lot of different software for investigating frauds in a companys accounts and transactions. These computer skills are also required in order to pass the certificate exam.

Expand Contacts
To make it easier for you to obtain certificates, it is wise to do forensic accounting courses in specialized fields. If you have already taken the course, stick close to your course mates. Discuss how to do things are done and know the way they should be done. Always listen to the lecturers or instructors advice.

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Your Revenue And Expenses

December 8th, 2015

Revenue

Revenue is the price of goods sold and services rendered during a giver accounting period. Earning revenue causes owner’s equity to increase. When a business renders services or sells merchandise to its customers, it usually receives cash or acquires ar account receivable from the customer. The inflow of cash or receivable from customers increases the total assets of the company. On the other side of the accounting equation, the liabilities do not change, but owner’s equity increases to match the increase in total assets. Thus revenue is the gross increases in owner’s equity resulting from operation of the business.

Various terms are used to describe different types of revenue; for example, the revenue earned by a real estate might be called Sales Commissions Earned, or alternatively, Commissions Revenue. In the professional practice of lawyers, physicians, dentists, and CPAs, the revenue is called Fees Earned. A business which sells merchandise rather than services (General Motors, for example) will use the term Sales to describe the revenue earned. Another type of revenue is Interest Earned, which means the amount received as interest on notes receivable, bank deposits, government bonds, or other securities.
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When to Record Revenue: The Realization Principle When is revenue recorded in the accounting records? For example, assume that on May 24, a real estate company signs a contract to represent a client in selling the client’s personal residence. The contract entitles the real estate company to a commission equal to 5% of the selling price, due 30 days after the date of sale. On June 10, the real estate company sells the house at a price of $120, 000, thereby earning a $6, 000 commission ($120, 000 x 5% ), to be received on July 10. When should the company record this $6, 000 commission revenue in May, June, or July?

The company should record this revenue on June 10 the day it rendered the service of selling the client’s house. As the company will not collect this commission until July, it must also record an account receivable on June 10. In July, when this receivable is collected, the company must not record revenue a second time. Collecting an account receivable increases one asset, Cash, and decreases another assets, Accounts Receivable. Thus, collecting an account receivable does not increase owner’s equity and does not represent revenue.

Our answer illustrates a generally accepted accounting principle called the realization principle. The realization principle states that a business should record revenue at the time services are rendered to customers or goods sold are delivered to customers. In short, revenue is recorded when it is earned, without regard as to when the cash is received.

Expenses

Expenses are costs of the goods and services used up in the process of earning revenue. Examples include the cost of employee’s salaries, advertising, rent, utilities, and the gradual wearing-out (depreciation) of such assets as buildings, automobiles, and office equipment. All these costs are necessary to attract and serve customers and thereby earn revenue. Expenses are called the “costs of doing business”, that is, the cost of the various activities necessary to carry on a business.

An expense always causes a decrease in owner’s equity. The related changes in the accounting equation can either (1) a decrease in assets or (2) increase in liabilities. An expense reduces assets if payment occurs at the time that the expense is incurred (or if payment has been made in advance). If the expense will not be paid until later, as, for example, the purchase of advertising services on account, the recording of the expense will be accompanied by an increase in liabilities.

When to Record Expenses: The Matching Principle. A significant relationship exists between revenue and expenses. Expenses are incurred for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on a basis of “cause and effect” is called the matching principle.

Timing is an important factor in matching (offsetting) revenue with the related expenses. For example, in preparing monthly income statements, it is important to offset this month’s expenses against this month’s revenue. We should not offset this month’s expenses against last month’s revenue, because there is no cause and effect relationship between the two.

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Accounting For Stock Redemption- Significant Fact About Business Accounting

December 7th, 2015

It’s difficult to provide accurate accounting for stock redemption information, but we have gone through the rigor of putting together as many accounting for stock redemption related information as possible. Even if you are searching for another information somehow related to federal funding for training, accounting information, lease accounting software or accounting depreciation this article should help a great deal.

Many of the small business managers I now view accounting this way. It’s overhead and really doesn’t contribute to the bottom line. Or does it? The people who run the accounting system speak in an unintelligible blur of debits and credits. They have been little grasped of the operation that generates the money to pay their salaries.

Think of the G/L as a sheet of paper on which transactions from all four categories of accounts-assets, liabilities, income, and expenses-are recorded. Some of them follow up from various sub ledgers, and some are entered directly into the G/L through a general journal entry. An example of such a direct entry would be the payment on a loan.

Collateral fees are expenses incurred in the creation or purchase of printed sales materials used by your sales staff in marketing and selling your product. Promotion fees include any product samples and giveaways used to promote or sell your product.

If this article still doesn’t answer your specific accounting for a stock redemption quest, then don’t forget that you can conduct more searches on any of the major search engines like Search Yahoo Dot Com to get specific accounting for stock redemption information.

Amortization, In the course of doing business, you will likely acquire what are known as intangible assets. These assets can contribute to the revenue growth of your business and, as such, they can be expensed against these future revenues. An example of an intangible asset is when you buy a patent for an invention.

Tax, Tax accountants prepare corporate and personal income tax statements. They also prepare strategies for deferring taxes, when to expense items, how to approach a merger or acquisition, etc. You need to have a thorough understanding of economics and the tax code. Many large firms now also look for legal knowledge.

Some public accountants specialize in forensic accountinginvestigating and interpreting white-collar crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions, including money laundering by organized criminals. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine whether an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials.

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