fields of accounting
Fields of Accountancy
Vocabulary
| accountant | to classify | type (2) |
| organization | to employ | employee |
| employer | unemployed | general (2) |
| handle | finance | record (2) |
| corporation | various | duty |
| involve | hire | professional |
| individual | occasional | task |
| task | special | examination (2) |
| title | entitle | charter |
| certify | public | specialize |
| field (2) | major (2) | include |
| budget | cost | management |
| manager | tax | audit |
| review | consist | draw |
| draw up | expect | future |
| activity | organization | during |
| certain (2) | period (3) | base (2) |
| recent | project | projection |
| condition | determine | expensive |
| expenses | to produce | sell |
| product | service | among |
| wage | pay | employee |
| employer | employed | unemployed |
| material | need | overhead |
| include | heat | light |
| power | maintain | machine |
| recommend | way | improve |
| operate (2) | policy | politics |
| efficient | decide | method |
| major (2) | undertake | purchase |
| buy | factory | such as |
| provide | consultant | firm |
| service | change (2) | tax |
| consist | prepare | return |
| individual | propose | transaction |
| suggest | save (2) | thorough |
| know | knowledge | must |
| law | affect | affect |
| client | need | court |
| rule | ruling | wide |
| variety | case (2) | freelance |
| exam | examine | record (2) |
| prepare | accept | principle |
| principal | internal | make sure |
| procedure | desire | seek |
| reduce | waste |
Fields of accountancy
Accountants may be classified by the type of organization for which they work. For example, business accountants are employed by all types of companies. A small firm may have one general accountant who handles all financial records.
But a large corporation may employ large numbers of accountants for the various duties involved.
Organizations or individuals may hire professional, freelance accountants for occasional tasks or special accounting services.
Qualifying as an Accountant
Accountants sit professional examinations which entitle those who pass them to membership of various bodies.
Such accountants are called chartered accountants in the United Kingdom, Canada, and some other countries and certified public accountants (CPA’s) in the United States.
Specialization
Most accountants specialize in a field of accountancy. The major fields include budget accounting, cost accounting, management accounting, and tax accounting.
Accountants who specialize in a field called auditing review the work of accountants in other fields.
Budget Accountancy
Budget accountancy consists of drawing up a budget for the expected future activities of an organization during a certain period.
Budget accountants base their work on the organization’s most recent financial reports and on projections of future conditions and activities.
Cost Accountancy
Cost accountancy deals with determining the expenses involved in producing and selling a product or service.
Among these expenses are the wages paid to a company’s employees, the cost of the materials needed, and overheads. Overheads include all other costs, such as heat, light, power, and maintenance of machinery.
Management Accountancy
Management accountancy involves recommending ways to improve an organization’s operating policies and increase its efficiency. For example, a management accountant may assist managers in deciding the best method of undertaking a major project, such as the purchase of a factory.
Many accountants work for companies that provide management consulting services. A business firm hires such accountants to study its system of management and recommend changes.
Tax Accountancy
Tax accountancy consists of preparing tax returns for organizations or individuals and determining the taxes involved in proposed business transactions.
Tax accountants suggest ways to save money on taxes. They must have a thorough knowledge of the tax laws that affect their clients or employers. Tax accountants also need to know the details of court rulings in a wide variety of tax cases.
Auditing
Auditing involves the examination of the accounting records of an organization or an individual. Auditors evaluate the accuracy of these records and whether they have been prepared using generally accepted accounting principles.
Some organizations employ their own auditors, called internal auditors. Internal auditors make sure their organization follows the accounting procedures desired by management. They also seek ways to increase efficiency and reduce waste.
Questions
1. Accountants who work in small businesses and large corporations have the same duties and tasks. True or false?
2. Do very small enterprises or individuals hire accountants full-time?
3. What are chartered accountants or CPAs?
4. What are the major fields of accounting? The major fields of accounting include…
5. Budget accountants only consider and think about the future. Yes or no?
6. What do cost accountants have to consider?
7. Management accountants are involved in decision making. Is this correct or wrong?
8. Do tax accountants have to know the law very well? Once they know the laws, can they relax?
9. Tax accountants look for “loopholes”. True or false?
10. What do auditors do? There is no difference between internal and external auditors. Do you agree?
A. Are you an accountant? Are you a generalist or a specialist?
B. Which field of accounting is the most difficult?
C. Is accounting entirely computerized?
D. What will accounting be like in the future?
