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The management of finances, both in the public and private sectors of society, is supported by general accounting services. The accountants manage the maintenance of records of the income and expenses of their clients. While all accountants are trained in the fundamental aspects of accounting procedures, the field offers opportunities for accounting specialization.
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Accounting is the active process of managing financial activities. It provides a systematic approach, which is generally accepted in the business practices of assets, liabilities, expenses and income record keeping and verification. Accountants record to date all the financial elements of an individual or the financial obligations of the company. It is reported in a standardized format that is easy to follow, accountants prepare their information to be used and interpreted by various entities, such as taxation and mortgage loans.
History
The first records of accounting practices were seen in the ancient civilizations of Mesopotamia and Egypt. Accounting practices are also mentioned in the Bible, as well as in the Koran. Accounting has played an important role in the management of agriculture and commerce.
The first complex accounting system was recorded by Ibn Taymiyyah, an Islamic scholar in the 1100s, which details the complex accounting system of Umar, the companion of the Prophet Muhammad and the second Caliph of Islam. The writing of Ibn Taymiyyah became a standard and an accounting model throughout the Islamic world.
Types
Accounting is a very broad field with several different branches. The field of accounting covers accounting and auditing functions, as well as taxes and financial accounting. Accountants can follow studies in lean accounting, cost management and financial accounting, or they can choose to study public accounting, external or internal. Accounting also has a forensic and social branch, which plays an important role in the evolution of society. Outside the United States, accountants can be public accountants, where they become junior members under a Royal Charter to work in British territories and Ireland. Public accountants can work in public or in their private accounting practice.
Features
After studying the different types of accounting, accountants can acquire different job titles. Accountants can work as financial accountants, who prepare and manage the data and financial statements of a company, as well as provide a variety of financial management services throughout the year.
Accountants can also work as budget analysts, who develop financial planning procedures for companies. Taxation and management of other areas that require accounting, where tax advisors prepare companies for fiscal responsibility, as well as management accountants provide an analysis of costs and control of support costs.
Finally, accountants can work as internal auditors, who keep a close watch on the financial activities of companies to reduce the occurrence of misappropriation of funds and fraudulent practices. Auditors also work hard to align companies with respect to government policies.
Considerations
Accountants work in a variety of scenarios. Accountants working in the governmental field can choose to work in their local or state government, or even in the federal government. These accountants work with budgets and analyze the processes of public expenditure and financial management. The Internal Revenue Service (IRS) is a popular destination for accountants working in the government.
Accountants can decide to be members of a public accounting firm, where they work as public accountants. Public accounting firms are contracted by private entities, companies and governments, for the purpose of managing their financial expenses and for recording and processing income and expenses.
Corporate accountants are hired by companies that need full-time accountants to prepare their monthly, quarterly and annual financial statements. They also acquire the obligation to process financial information for national and international operations, as well as tax preparation and cost management.
Accountants can also choose to develop their own accounting business, such as a Certified Public Accountant (CPA). Accountants usually choose this option to develop a very close clientele. They also value the independence of working on their own, which also demands a greater commitment of time and energy to be successful in the long term.