Accounting is the language of business. It is the system of recording, summarizing, and analyzing an economic entity’s financial transactions. Effectively communicating this information is key to the success of every business. Those who rely on financial information include internal users, such as a company’s managers and employees, and external users, such as banks, investors, governmental agencies, financial analysts, and labor unions. Accountants must present an organization’s financial information in clear, concise reports that help make questions like these easy to answer.
Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. Finance can be broken into three different sub categories: public finance, corporate finance and personal finance. Careers in accounting and finance are associated with very high salaries.
A recent National Institute study identified accounting as the most lucrative of all degree courses in terms of graduates’ lifetime earning capacity When it comes to choosing a major you want to pursue, it is important that you pick a major that you will enjoy working in for the some part of your life. How does one make that decision? There are several different factors that play a role in choosing a major. When I looked into business for my intended major the first thing that came to my mind was not if I was going to enjoy working in some kind of business environment because I already knew I would like that.
Instead I looked at other aspects or values that a business degree offers. More importantly, I looked at what concentration I wanted in business. For example the motivation to take finance major is informed by knowledge that it is an essential area of management as well as decision making that cannot be ignore by any business or organization that plans to be a going concern. Any decisions that are to be made at management level ought to put into account the likely ramifications of these decisions as the financial implications can render these decisions irrelevant.
First the world right now is faced with a serious economic recession as well as ever fluctuating market prices. Organizations need to know the likely sources of credit facilities due to the ongoing credit crunch. Thus said, an appropriate evaluation of the credit facilities is necessary to determine the long-term implication of taking such credit facilities and thereby making a decision on the best of these facilities and thereby deciding which ones can be used in both the short run and the long term.
To make these decisions, proper analysis by a financial expert is therefore necessary to help in making these decisions. The accounting side of business is a very rewarding one for many reasons and especially if you love working with numbers. As a person you will enjoy setting up budgets and different types of financial statements and seeing of everything works together with that aspect of business. One of the values of being an accounting major is that the demand for accountants is high and it probably will not change.
According to the website of the Princeton Review the accounting profession is to be growing very quickly and because of all the different types of accounting needed to fulfill the needs of various businesses, the need for an accountant will always be there. Another plus to obtaining an accounting degree from most other business degrees is according to the AICPA, an accounting degree is a degree that offers all ranges of possibilities in the business society. As well stated in a publication by the AICPA, “Accounting opens doors in every kind of business coast to coast.
Accounting deals with the aspects of preparing financial statements and budgets for companies as well as other career path opportunities, but because of the complexity with working with numbers, accounting is said to be the basic language of the business world and that is what makes it a successful field (Accountant Key). An accounting degree is not what many people stereotype it as; sitting behind a desk and crunching numbers. There is a variety of options to choose from in the accounting field in which you exercise your skills. There are different areas of accounting and places of employment in which you can pursue.
A Career-in-Accounting website pointed out some of the areas in which accounting is performed and the different types of employment environments accountants work in. In accounting you can become a Certified Public Accountant (CPA), a Certified Management Accountant (CMA), a Certified Internal Auditor (CIA), or even a Certified Fraud Examiner (CFE) (Accountants next doors). You can also find variety in the places that you work as an accountant. As an accountant you could work for public firms, public or private corporations, in government, or be a self-employer.
The corporations you work for can also either be for or not for profit, in which deals with different kinds of accounting rules. In the public firms you can work in tax, auditing, and consulting (Chron-Small Business). Some corporations, such as HCA, a leading heath provider, have their own internal auditors in which you travel while performing audits. In auditing you interact with people and not just work with numbers. After knowing about this value of accounting helps taking away from the idea of accounting being just some boring desk job.
Another value of the accounting or business degree is the amount of money in which I could potentially make. The amount of money that you make is all dependent on what qualifications you have and what size of company you work for. Some figures that can be found on the AICPA website for new accountants were taken from the Robert Half 2010 Salary Guide. These numbers showed that accountants with one to three years’ experience would make between $35,500. 00 up to $50,250. 00. These numbers are also not considering if the accountant hold a master’s degree and or their CPA.
If one of these other qualifications are obtained the annual salary is to be ten percent higher that a person with just an accounting degree. However, if you work at a public firm and were a partner, depending on the size, this guide gave an average salary for 2006 partners to make anywhere from $60,000 to $175,000. For a Chief Financial Officer (CFO) it is even higher than that. With accountants in demand, the average salary for accountants will be in a higher percentile than other professions fresh out of college (The New York Times).
Here is a picture showing in purple which states are in demands for Accountants. One important value that I consider to also be important is the trust that one must have with their accountant because of the work that accountants do for their clients, if it be taxes, auditing work, or consulting. When it comes to placing your financial information into someone’s hands, the accountants in charge have to have ethics when dealing with financial information. The same goes for finance and working with someone that helps you invest your money into stocks, and IRA’s.
Right now, the AICPA is working on restoring some of the lost trust from the public since the last scandals of Enron and WorldCom. The way that this was supported was by the issuance of Sarbanes-Oxley and Statement on Auditing Standards 99. Both these two guidelines will enhance the performance of accountants in auditing and keeping with GAAP and at the same time help restore the publics’ trust. The accounting major comes with many values. The demand for accounting, variety of work and work environments, the compensation of services, and the placement of trust in me are just a few of the values that I have that come with the major.
Being an accountant is deemed to be a respectable field to go into and is also a path that I see that leads to career success. As you can see, it is not surprising why accounting is a very popular career choice. Although a lot of people are considering this type of career, you can be sure that you will never run out of jobs as an accountant as the need for accountants in all industries and sectors is growing. So, if you want to be successful and you are looking for a good career choice, an accounting or accountancy career can be your best choice.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 18 December 2016
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