Organisations cannot function without trained individuals that keep track, assess financial and resource data. Accounting is the technique and practice of recording, verifying, evaluating, and reporting financial transactions. Usually, accounting is an integral role in every business’s financial department and local firms have standard requirements for obtaining accountants from ACA qualification to standard diploma. However, most firms nowadays are highly preferring accounting certification from ACA qualified.
Defining Accounting & Auditing
Auditing however, is an associated area where records are reviewed and finalised to formulate better conclusions for decision-making. These decision-making processes are geared to provide sound actions to ensure effectiveness and to enhance efficiency as well as guarantee adherence to the organisation’s standards and principles. It makes an accountant a highly valuable position in every company which is evident with the high standard of more than just accounting certification.
Relationship of Accounting & Auditing
The relationship of an accountant to auditing in the workplace is often portrayed where accountants would keep track of the firm’s expenditures; the audit will keep reviews and records produced by the accountant to pinpoint if finance is being used well.
Accounting specialists commonly deal with financial and budget aspects. Since working with money ratios tend to be quite sensitive yet demands efficiency and precision, to track all this data, professionals today are trained/use specialised software, (mainly spreadsheets and other specialised accounting software). So apart from accounting certification, familiarity with working with these automated programmes is crucial when learning to work effectively and provide accurate data within a given time frame.
Many people are puzzled and confused about the purpose of accountants in regards to many aspects such as financial statements, taxations, and account transactions.
Determining Purpose of Accountant
We must understand that an accountant is a licensed professional who has gone through rigorous and careful training like taking ICAEW ACA to be a certified accountant and be eligible for corporate applications. The screening for the qualification is beyond high. If an accountant is accredited, it implies they are incredibly well-versed in taxation, transactions, making financial statements and resolving related complex problems.
It’s nearly impossible for an individual in today’s world and local firms to hold an accountant position without obtaining ACA qualification or let alone earning an accounting certification from reputable professional institutions for accountants.
Many people are under the mistaken belief that accounting professionals simply provide transaction or tax statements or sit at a desk for hours to crunch numbers. Despite the stereotypical view of accountants who earned ACA qualification only to handle receipts and tax returns, their role greatly varies. Accountants are required to be flexible. Some work as certified public accountants, others handle debit/credit. You can also become an auditor or a financial consultant.
The Use of ‘Accounting’ In Our Daily Lives
Preferably, an accounting professional will know about all elements of your financial life. They must also be aware of events in life, such as having a child, effectively handling debts, paying a loan, etc. Managing money is significant even in private life. We all know that an effective and efficient way of managing money also lends the idea that you are also effectively handling your life. While getting ICAEW modules is not essential for this, learning the ways and principles of an accountant can aid an individual at every event he may encounter in life that concerns finance.
Once an accountant has all the ideas and principles needed to become a certified one, they are expected to be well-versed in it. They will certainly give you details and even offer recommended actions to conserve cash and effectively use it. Similarly, they will provide you with advice in dealing, handling or a working strategy for organisational/business tax under the policy and legal law.
Types of Accountants and Accounting:
- Private accounting professionals – They may execute cost accounting, budgeting; internal auditing, financial or management accounting as well falls under private accountants for companies
- Public accountant – From the word ‘public’; in contrast to private ones, these types of accountants serve the public with specialised services like tax accounting, consultancy for finance management and auditing as well. Despite working for the public, accounting certification is still required to be a certified public accountant.
For business owners, they are still required to be concerned with financial and management accounting. While accounting certification is not needed to fully understand these two field concepts, it is a crucial factor for your business. So what is the difference between these two?
- Financial accounting mainly deals with the aggregation for making financial statements to the external audiences/stakeholders (outside the business) like the government for tax-related purposes. It also includes entities such as creditors, investors and financial institutions for reviewing the enterprise performance on a given/agreed basis (usually on annual periods).
- Management accounting primarily deals with the internal process (within the business) for conducting business transactions. This is where the designated managers and administrations would play a key role in making well-informed, operational decisions like asset replacement, reviews of revenue etc.
What does it take to be a professional accountant?
Just like any kind of career, an interest in the topic is essential. Somebody who dislikes mathematics must not consider taking an accounting career just as someone who despises writing or literature should stay away from becoming a writer.
If you are keen on learning about accounting, there are a variety of training that one can particularly choose. Mostly, local firms and the standards of chartered accounting in Singapore today greatly demand an ACCA (Association of Certified Chartered Accountants) /ACA qualification (Associate Chartered Accountant). While some would agree that ACA is the more advanced (and has a high learning curve), both degrees are widely recognised for high-calibre accounting talents.
ACA uses ICAEW modules that help students and candidates gain the required expertise, knowledge and skill set. Upon completion of ICAEW ACA (which often takes 3-5 years) enables you to use the title of ‘ICAEW Chartered Accountant.’
If you are looking for an ICAEW ACA qualification, visit ICAEW Singapore for more info on chartered accountant qualifications in SEA.