The Federal Election was held in Australia on 21st of August 2010. During the rather slow election campaign there were questions raised by the major parties and everyone else for that matter, on how the elected government would go about accounting for the very stout amounts of money they receive and consume. These people talk in billions of dollars. It is rather mind-boggling but the accounting system they exercise can also be applied to dinky business and personal finances.
Most households require some invent of accounting to deal with their personal financial matters. You are probably aware of the saying that the only thing that is sure in this life is death and taxes. I mediate that it is radiant to say that accounting affects the lives of everyone in some draw in a original society.
I have always opinion of an accountant as someone who processed the financial data Ibprepared for them and submitted my annualbincome tax return required by the Australian Taxation Office (ATO) . Their value was measured by the amount of money they could magically retrieve from the ATO by minimising the amount of tax I was required to pay. This understanding is shared by many who peruse accountants as nothing more than bookkeepers, 'number crunchers' or 'bean counters'. Unfortunately accountants are not magicians and the reports they prepare must stand up to the scrutiny of the ATO. The accountant should therefore be perceived as a professional who is able to minimize income tax by applying his talent and know-how acquired through years of ogle and experience
The accounting must abide by the rules. There are no two ways about that. The terms of reference are spelt out in:
* Income Tax Assessment Act 1936 and 1997.
* Corporation Act 2001.
If the accountant fails to follow the laws made by our society, he/she will be punished. Accounting is a discipline and is extremely necessary to any financially healthy entity. Inadequate records normally accompanies business failure and in some cases bankruptcy. Accountants provide information to the owners and managers of a business or company so that appropriate decisions can be made on purchasesand investments. This is achieved by processing records, interpreting these records and reporting the findings from these records to these decision-makers in monetary terms.
The role of the accountant is always changing due to legislation changes and technological developments. Accountants are spoilt for choice when choosing an site in which to specialise. There are many opportunities in private business, government bodies or institutions. Some examples of the career paths an accountant may determine to pursue include:
* Taxation
* Auditing
* Budgeting
* Cost Accounting
* Management Advisory Services
* Financial Planning
* Forensic Accounting.
There are professional accounting associations available with entry qualifications and the aim of these associations is to maintain its members up to date with unusual developments. In Australia the longest established associations are the:
* Institute of Chartered Accountants (ICA)
* CPA (formerly known as the Australian Society Of Accountants)
* The National Institute of Accountants (NIA) incorporating The Association Of Accounting Technicians (AAT) .
These associations have had a well-known execute on the development of accounting in Australia. Its members are expected to abide by the pronouncements made by these associations as gracious accounting practices. Members are also expected to undertake a definite amount of professional development each year as it is valuable that accounting keeps lope with the needs of those it serves.
The increase in the size of organizations means that it is impossible for a manager to hold in touch with all that is going on. This is the reason for the development of the role of an accountant in a management team. The growth of collective ownership rather than individual ownership has meant that the function of the accountant has been extended to preparing financial reports for shareholders and people outside of the businesses they are interested in. Fortunately, computer technology has enabled the saving of a lot of time and energy and the production of more fair and detailed information.
Accounting is continually affected by legislation, technology, economic conditions and professional associations. It is these changes that has molded this profession into the sometimes nerve racking but essentially rewarding profession it is today.
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