How To Start A Career In Accounting

Is A Career In Accounting Right For You?

Is a career in accounting the right professional path for you? Only you can know, but keep reading to learn a bit about it if you are at all curious about it.

The field of accounting is a study in how businesses track their assets and income over time. Accountants do a lot more than just making generic assumptions. They also compute the efficiency gains and costs associated with new technology. They also participate in strategies towards acquisitions and mergers, and they handle quality development. Additionally, they develop and use information systems to track fiscal performance metrics, tax strategies, and even manage health-care benefits.

An accounting career is versatile and rather momentous. The field is typically divided into three comprehensive categories. These are auditing, management accounting, and tax/financial accounting.

Auditing: Working in an audit means checking the financial statements and accounting ledgers of a government or corporation.

Budget Analysis: These analysts are usually responsible for the development and management of the financial plan of an organization.

Financial Accountants: These professionals assemble and prepare financial statements that are based on the available general ledgers. They also participate in crucial financial decisions. These decisions include mergers, acquisitions, long-term financial projecting, and benefits/ERISA planning.

Management Accounting: These professionals are employed by companies where they participate in decisions regarding the line of business analysis and capital budgeting.

Tax Accountants: Professionals in this category prepare both personal and corporate income tax statements. They also develop specific tax strategies regarding financial choices, tax deferrals, what items to expense, and how acquisitions or mergers are best treated.

Among these different branches, different levels of skill are required for them. Communication skills are necessary for all of them but financial and tax accounting typically demands the least amount of skill necessary. On the other hand, audit accounting is best for those with intermediate skill levels or better, whereas financial accounting necessitates the utmost levels of proficiency.

Entry-level accountants typically work in team-oriented settings, often starting as junior members of teams handling larger tasks, accounts, or statement preparation. Junior members have to still pull their weight, proving they can function as a productive member of their unit.

The BLS reports considerable growth in the field of accounting, which means that positions are open and competitive in terms of benefits and wages. Those who do well in their work will also do well in their careers.

A dozen or so firms constitute the industry’s best. Those who are graduating from college and looking for entry-level positions are advised to start their careers at such firms. The overwhelming majority of accountants will never make partner at these firms, but the training and experience in spending time with them are of tremendous value.

After that, many go on to business or government careers with a focus on accounting. Some even move on to start their own firms.

The expected growth in the accounting field is not expected to slow down anytime soon, and the positions open might start increasing with the Baby Boomer generation retiring.

Here is a list of local Accounting companies in the area that may be able to assist in getting started in accounting

How To Work With The Best Accounting Professional

You need to find someone that is good at accounting if you have a business or a need to get accounting work done. It’s best to find someone that has been doing this work for a while that you know will do a good job. Here is how to hire the right person for accounting related work.

You’re going to want an accountant that has been able to do this kind of work for a living for quite some time. You at least want to know that they have a year or more of experience. It’s also a plus if they went to school for this kind of thing so you know they have the right kind of training. Either way, if they have been doing this work for quite some time, you know they are good. If they did not do good work then they wouldn’t have lasted very long in this kind of a field.

Figure out what you’re going to have to pay an accountant. If you’re just going to use their services once or twice, it’s going to be cheaper than it would be to hire on someone as a full time accountant. When you do need help regularly, it’s best to just hire someone full-time that is able to keep things in order for you so you don’t have to keep getting help from different people. Just make sure you know that the person is skilled because you don’t want an amateur doing the work and causing problems for you.

The accountant needs to be aware of the laws regarding their job. You don’t want to hire someone that is not going to do good work according to what the law says they need to report. When you try to hide something like how much money your business has made, it can come back to haunt you by costing you a lot of money in the end. You want to be honest with your reporting every step of the way. The government can and will look into your business from time to time so you always want your accounting to be spot on.

If you’re going to do accounting work on your own, make sure you have the best possible software that can help you with it. There are plenty of great options out there so just be sure you look over them and find what you know is going to work best in your situation. To find out more about software, it’s good to look up reviews on it to see what other people went through when they used it. If all you learn is that it’s not that good, then you can save your money for something else that will work for you.

It should now be easier for you to get accounting help. There are many great people out there that are good at this kind of thing. You just have to use what you learned here to find out who you should work with.

Why Is Accounting Important?

Accounting refers to recording financial transactions of a business comprehensively and systematically. Some of the processes involved in accounting include summarizing, analyzing and reporting the transactions to the relevant agencies. Here is why accounting is important in any business organization.

1. Budgeting

Budgeting is an integral process in every business. With a proper budget, a business can make strategies, save money and identify any expenditures that are higher than the budgeted amount. Planning a budget requires the previous records which have been well maintained, thanks to accounting.

2. Banks And Lenders

If your business applies for a loan from a financial institution, you need to present your financial records so the lenders can have an idea of your current financial status. Keeping such records requires accounting to maintain a proper system of organization with the assets, liabilities, profits, taxes and much more.

3. Proper Record Keeping

Any organization needs to keep proper records so they can be used for decision-making purposes and many other processes in the organization. Accounting plays a huge role in maintaining the books. All the records need to be collected and organized as well as interpreted whenever needed. Therefore, whenever any decision needs to be made regarding the business, there should be proper records in place.

4. Decision-Making Purposes

Any economic decision regarding the business is determined by the current financial status of the business. All these financial statements can be ascertained properly with good accounting. If it wasn’t available, the executives would have a hard time making any viable decisions about the business. Actually, they would be operating blind and it would be tough to achieve any organization objectives.

5. Providing Investors With Relevant Information

The financial accounts are used to represent the organization to relevant parties and stakeholders. These include creditors, investors, government, debtors, employees, and customers. Investors are bound to flee from your organization if you don’t have financial records. Therefore, with such records, thanks to accounting you can present the true account of the business.

6. Reporting Profits

Any organization needs to make profits so as to run comfortably. Whether it’s a small or a large business, it needs to maintain proper books of accounts so they can ascertain all the transactions being made. Also, any interested parties would be able to make relevant decisions regarding the progress of the business.

7. Managing And Monitoring Cash Flow

If the business is bankrupt, it’s hard to make any money. Therefore, a proper accounting system needs to be in place to help manage and monitor the cash flow. The books of accounts should report the working capital and any other cash needs within the organization.

Now that you understand the importance of accounting, you need to take time to hire the right accountant for your business. Depending on the available resources, you can choose to outsource the accounting department or hire an in-house accountant. However, everyone needs to be vetted properly to make sure they practice integrity. Otherwise, they would cripple your business completely if left to their own deeds.

Unbelievable Misconceptions about Bookkeeping & Accounting

According to observation and experience there exists nothing with zero myths and misconceptions. Be it your health, any technology or simply a profitable initiative such as bookkeeping and accounting, everything has a long list of misconceptions. These misconceptions arise from poor experiences which might be triggered by some other factors or rumors which gradually grow strong and ultimately become a fact or news. Bookkeeping and accounting is an idea that has proven itself helpful for all businesses. No successful business is complete without a good accountant like Nova Accountants Carrum Downs. As long as your money is concerned bookkeeping and accounting is the most helpful hand you can ever get.

Let’s bring all the misconceptions under the spotlight and see what they say.

1: Where there is accounting there is mathematics: Throwback to the times when you were in your accounting class with calculator n hand and struggling with your digits. Fast forward to the current times. Is accounting all about digits? Well to be very precise, not really. An accountant is not to juggle the decimal points and worry about profit and loss. There is much more to it. They have to keep track of all the legal policies and keep the business owner aware of the declines and climbs of business. Based on the current statistics, they have to come up with the most innovative advice for the company. Somehow, the company depends upon them.

2: Small businesses don’t need to focus on bookkeeping: Says who? Businesses which are still in the age of infancy have an urgent need for bookkeeping and accounting. Many businessmen think that they have so much to look at that they can’t focus on something as negligible as bookkeeping. Surprisingly, if you don’t keep a check on your expenses how would you move ahead? Bookkeeping and accounting keep an updated check on how much money went where. At the end of the day, you are not dubious about your precious investment. For growing up you need a budget, right?

3: Accounting and bookkeeping have no difference: Imagine a football team. All players play at different spots. One is a midfielder while other is a defender. Similarly, bookkeepers and accountants belong to one team but their positions in the company slightly differ. Accounts worry about the tax issues and the audit of the company. Whereas bookkeepers keep a check on the numbers and analyze them. They advise the company strategies to move ahead with the figures they are currently standing at.

4: Bookkeeping is not important: There is a long list of businessmen who have underestimated the power of bookkeeping and accounting. Where are they now? Overcoming the loss. Past shows us that all the businesses who never thought bookkeeping would be necessary ended up drowning themselves in piles and piles of paperwork at the time of need. They could not expand themselves in any way possible. Communicating with partners became difficult and coming up with new profitable strategies also became impossible.

5: Accounting and bookkeeping are required in annual tax returning season: Even if we believe this notion for one split second how do you think the cash flows and money transactions and financial reports of all year long are going to be prepared in such a short time and that too when something as important as tax returning is at stake. Isn’t it better to keep the record in making from day one so that everything is compiled?

Are all these misconceptions familiar to you? If yes, you need to start bothering about your business’s well-being. Take a wise decision now and enjoy the smoothness of your business
from now on!

The Creek Accountants Are Back In Business

Hi guys and girls out there, I know things have been a little quiet here at the Creek. I have been redeveloping this awesome accounting blog and wanted to create a quick post to get any avid readers up to speed with where things are out. I know how much you enjoy reading all the latest info going on in the accounting world so I have been busy working away to generate a really interesting and yet exciting read for all my lovely fans. Come back soon and I promise you will enjoy what you see and please feel free to share or leave a comment as I love to engage with my fans.