Accountancy or accounting is an information science that uses information to create, process, manage and communicate accounting information. A person who has entered into the field of accountancy has a wide range of opportunities. Accountants have the ability to work in various businesses, government agencies, consumer groups and think tanks. They may also find employment as an investment banker, a financial consultant, or an auditing firm.
The word ‘accountancy’ comes from the Greek words acus (meaning ‘having order’) and taxes (meaning ‘paying taxes’). The modern meaning of accounting may be described as the process of arranging financial transactions to make sure that the tax obligations due to the government are properly collected. This process is known as accounting.
The process of accounting involves the recording of financial transactions such as sales by a business or the receipt of payment by an entity. These transactions are then processed to provide information on the financial position of the organization. Information on the financial position is used to prepare financial statements, which are reports that provide information regarding the activities of the company that have been recorded in the accounting period. The information recorded in the accounting period will be used to guide future decisions regarding the organization’s finances.
Accounting refers to the system that is designed to help accountants record the financial transactions of a company. The transactions that are recorded in the accounting period are referred to as debits and credits. Accountants ledger, for instance, is a detailed list of all the transactions that have been entered into the ledger. The ledger is designed so that all transactions are recorded in the correct sequence. All debit transactions are recorded as debits while all credits are recorded as credits.
A company needs to maintain proper accounts receivable and financial health because these will allow it to meet its obligations as well as enable it to make future payments. Proper accounts receivable management helps a company to reduce its expenses and improve its financial health. On the other hand, financial health enables a company to improve its profits. Therefore, the proper accounts receivable management and financial health will ensure that a company can meet its obligations and earn profits.
There are many differences between the internal accountant and the external accountant. One important difference between the two is that an accountant has to follow accounting principles while a forensic accountant investigates and exposes frauds and corruption by a company’s employees and directors. Another important difference between the two is that accountants follow accounting rules while forensic accountants follow strict accounting principles. Thus, both forensic accountants and auditors are responsible for maintaining accuracy and maintaining the integrity of the accounting records and systems.