accountinglistings.com

accountinglistings.com

Accounting refers to the practice of maintaining the books and analyzing the financial position of a company or an individual. Many people refer to accounting as if it were another language, and in many ways, it is. Accounting is the language of business.

Accounting is mainly used by business managers, investors and the IRS to make decisions regarding how to allocate limited resources. On a smaller scale, however, accounting is used by regular people to balance their checkbooks, monitor their investments and file their taxes.

History of Accounting

Though it may seem like a modern practice, accounting actually dates back all the way to the beginnin ... (more)

Accounting refers to the practice of maintaining the books and analyzing the financial position of a company or an individual. Many people refer to accounting as if it were another language, and in many ways, it is. Accounting is the language of business.

Accounting is mainly used by business managers, investors and the IRS to make decisions regarding how to allocate limited resources. On a smaller scale, however, accounting is used by regular people to balance their checkbooks, monitor their investments and file their taxes.

History of Accounting

Though it may seem like a modern practice, accounting actually dates back all the way to the beginnings of human civilization. As long as humans have traded with each other, they have had the urge to keep track of their wealth. Originally, practices were simple and it was agricultural products that were accounted for.

Modern Accounting

The basis for accounting today is a system of bookkeeping that requires every transaction to be recorded in at least two places (as a debit in one account and a credit in another). When added up, all debits must equal all credits. This allows for accountants and auditors to check for errors easily.

Standard practices are very important to the profession of accounting, but it is itself a fluid practice. As the way in which business is performed changes, accounting must change to keep up. It must always be relevant to the current business climate and relative to the economic realities of the market.

Accountants

Those who practice accounting are called accountants. Many accountants belong to a professional organization and carry a designation, such as:

Chartered Certified Accountant (ACCA or FCCA)

Chartered Accountant (CA, FCA or ACA)

Management Accountant (ACMA, FCMA or AICWA)

Certified Public Accountant (CPA)

The requirements for gaining entrance into a professional accounting organization vary from nation to nation.

Accounting Firms

Accounting firms are privately held organizations that provide accounting services to clients for a fee. The biggest multinational accounting firms in the world are:

PricewaterhouseCoopers

Deloitte Touche Tohmatsu

Ernst & Young

KPMG

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