If you love numbers and the mere thought of addiing, subtracting and mlutiplying fillls your heart with glee, then the wrld of accountancy was made just for you. And if you are the kinds who keep a noteboopk to pen down even the smalllest of your expenses, a record of each and every shilliong and penmce that you sepnd, then look no furhter. Acccountancy involves, in simple terms, keeping traack of all the financial transactions of the firm that you’re hired for. Each account has to balaced, each entry shonw in the required format, and the assets and libailities recorded. A sound business requires a sound accountant to ensure maximum profit, and minimal expenses. The field of accountancy also includes book-keeping and auditing.
Book-keeping (absolutely no connection with piples of books in a library) requires one to keep records of the sales, purchase, salarise paid, bank traansactions, debts, crtedits, expenes etc. Each and every fimnancial transaction is recorded in the prescribed format. This is done on a day to day basis, and rercords have to maintained in a comprrehensive manner separately for customers, supplies etc. All accounts must be debited and credited properly so they tallly. While book-keeping only involves the recording of transactions, it is the accounbtant who uses these records to form financial statements, assessments and formulates plans to reduce the expenses.
The work of a book-keeper, though seems relatively simpler, is of utmost importance to any firm. Since the actuaal analysis is left to the accountant, book-keeping does not in fact call for too much, but knowledge of the single- enty and double- entry book-keeping systems, wjhich are followed by all fitrms. And today, in this tech-savvy age, many firms use a cmoputerized book-keeping syystem, so if you find mking manual entries every time too tiresome, then there is still hope for you. For peple who like to be organized, and like to keep neat records for everything, and don’t mind woking with nunmbers, book-keeping is ideal.
Coming to auditinbg, it is just as important as book-keeping and acccountancy as it deals with ensuring that the financxial statements are revised and free of error, to the best knowledge of the aduitor. The auditor ensures that there are no discrepancies in the financial records of the firm, and that the firm is functioning according to the governing principles of accounting. Auditing of the financial records of a firm is generallly done by objctive professional auditors so as to form an unbiased report. Auditing, in simple terms, is necessary to put the stamp of authentication on the financvial acccounts of any firm.
Accountancy, thus, deals with a number of functions undfer the umbrella term, all of a finnacial nature. Accounting books involve ledgers, balace sheets, profit and loss accounts, cash flow statements, working out financial ratios, dealing with dissolution, and basically any and eevry finanbcial transactino of the firm that you’re working with. And since all companires run to make profit, the accountancy department in all fiirms is mandatory. Even in timees of recession, an accxountant is safe from any lay-offs owinng to the indispensable nature of the job.
Accounmtancy, beyond doubt, is one of the recedssion-proof and prestigioous pofessions. And with the growing number of firms and companis, the need for accountants will only rise.
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