The focal point of this essay is to place and explicate the definitions and differences between Accounting and Bookkeeping, function of comptrollers in concern, professional and personal features of comptrollers and the demand for professionalism and moralss.
“ The typical comptroller is a adult male past in-between age, spare, wrinkled, intelligent, cold, inactive, noncommittal, with eyes like a codfish, polite in contact, but at the same clip unresponsive, cool, unagitated, and as damned composed as a concrete postaˆ¦ ” ( Benson ( 1989 )
Accounting is the procedure of recording, preparing, and summarizing minutess of a concern e.g. gross revenues and purchases of goods, payments and disbursals etc. , in order to fix drumhead studies and fiscal statements that can supply utile and dependable records and can be analysed to do determinations by directors and stockholders. Accountants provide a sum-up for a concern ‘s fiscal minutess, which are besides normally known as fiscal statements. They are needed for a figure of things, to measure up for a loan from bank or an overdraft, to see how good a concern is making, for insurance, claiming revenue enhancement return, to sell your concern or to happen out how much it is deserving. They can besides be used to see a portion of two spouses in a concern. A really big concern will necessitate to hold their histories audited at least one time a twelvemonth by an independent hearer. The rules of accounting are divided in three chief countries, accounting, scrutinizing and clerking.
Auditing is besides a really critical portion in accounting. They are chiefly performed to look into the cogency and truth of information, and to verify the facts provided. The histories of the company are audited ( checked ) every twelvemonth by an independent internal or external hearer. An hearer gives a ‘true and carnival ‘ sentiment on whether a company ‘s histories and fiscal statements are free of any mistakes or frauds.
Bookkeeping is an act of entering fiscal minutess of an administration. It includes purchases and gross revenues, day of the months, beginnings etc. It is normally done by a junior comptroller or a book keeper, and are besides knows as accounting clerks. They are supervised by an comptroller. Any procedure affecting twenty-four hours to twenty-four hours recording of merely the fiscal minutess of a concern is called a book maintaining procedure, but the two most normally used methods of book maintaining are individual entry book maintaining and dual entry clerking. In the individual entry clerking system, the minutess are recorded merely one time and it uses income and disbursals histories merely. The dual entry bookkeeping system records each dealing as both recognition and debit. Credit entry represents the beginning of finance and for each recognition entry there is one or more corresponding debit entry, which so leads to equilibrate nominal leger histories and trail balance. It reduces the hazard of mistakes and errors. Bookkeeping shows where your concern is standing financially. It can assist you do of import fiscal determinations about your concern and it can besides assist do your fiscal place clear to other people e.g. Bankss and clients. Taylor ( 2003 ) says that bookkeeping can sometimes look like a job.
Accounting and clerking is considered to be the same thing by many people. Bookkeeping is merely one and first portion of fixing histories. A book keeper records all the everyday dealing that takes topographic point in a concern in the right journals, gross revenues, purchases and nominal legers and brings it all to drag balance. Bookkeepers are besides responsible for fixing bills, grosss, cheques and paysheet. Whereas an accountant so makes a few accommodations and alterations and is responsible of fixing studies, profit/loss histories, hard currency flow statements utilizing the trail balance sheet and the legers created by the book keeper. An accountant takes over when the book keeper coatings.
There are several different functions of comptroller in all sorts of administrations. “ Accountants are merely every bit of import as any other facet of a concern, and can be important to its prosperity and even endurance ” ( Taylor 2003, P11 ) . An accountant plays a critical function, provides advice and service and has an input in all countries of a concern. They can cipher breakeven point for a concern to assist them make marks. The information prepared by an comptroller is really utile and it is of involvement to both external and internal parties ; it enables directors to do of import determinations and to foretell what is likely to go on when a certain action is taken. It besides gives a full image of how an administration is making and how it is likely to execute in the hereafter. The stockholders of the company can happen out how expeditiously the company is running and how much net income it is doing. It will besides enable HMRC calculate revenue enhancement collectible by the company.
The populace, fiscal advisors and trade contacts might besides be interested in the information provided by the comptrollers. Some comptrollers choose to work in audit, fiscal or the non-financial side of the concern. The function of a finance comptroller is to work with budgets and fitting marks. Forensicss accountant would be responsible of bring outing any mistakes or fraud activity and analyzing the histories.
Successful comptrollers have accomplishments, unity and strong instruction. Accountants must ever work independently. They should be able to do determinations by comparing and analyzing the facts and figures. They should hold first-class communicating accomplishments both written and spoken to be able to explicate and discourse fiscal affairs with fellow co-workers, clients or people with small or no accounting background. Good computing machine accomplishments are besides really of import in order to utilize different accounting package programmes expeditiously. Accountants need cognition of current economic growing and environment in which they operate. They must work with truth and consistence. Accountants must hold personal values like confidentiality, candidly, trustiness and dependability. The best comptrollers will hold the ability to interact with people and maintain themselves up to day of the month with the alterations in regulations and ordinances because there have been changeless alterations in the field of accounting in the last few decennaries. “ Like so many things the universe of accounting and finance is of all time altering ” ( Taylor 2003, p11 ) . Accountants have to manage all the fiscal operations and supply advice and information hence working accurately under force per unit area is besides one of the of import personal accomplishments an comptroller must hold.
Accountants should be really originative and full of thoughts, they should hold an ability to maneuver a concern off from possible fiscal jeopardies. He/she must be a valuable squad participant and flexible with people. An comptroller should acquire along with everyone including hard personalities. Puting as much attempt in as possible in every undertaking is critical to accomplish the best possible consequences. Listening accomplishments is besides of import to listen to others. Time direction accomplishments are perfectly indispensable.
Education demand for comptrollers depends on the specific occupation. There are no cutoffs to going an comptroller. A unmarried man grade in accounting, concern or economic sciences is required. An involvement in maths is besides really of import. However it is possible to go a book keeper or accounting clerk with a sheepskin or school makings with important experience. Accounting instruction back land is of import as it provides cognition, a scope of accomplishments and expertness to execute needed undertakings. Without instruction and experience comptrollers will most likely make errors caused by deficiency of apprehension, and will non be able to supply first-class service to their clients. Successful comptroller will hold cognition of revenue enhancement and accounting processs and rules every bit good as rules of concern and direction.
The importance of professionalism and moralss has increased in the last few decennaries due to the frauds and accounting dirts. Particular cognition and expertness about a particular topic which is obtained through higher instruction and accomplishments is known as professionalism. Accountant trades with the fundss of an administration, they have a responsibility to move professionally. There are rigorous guidelines for professionalism and moralss. It is critical to understand the rudimentss of professionalism in accounting field.
“ Professionalism is a figure of things. It is an attitude. It is the manner you communicate. It is the manner you work. It is the manner you view yourself and the people you work with. It is the manner you do concern. First and foremost, nevertheless, professionalism is an attitude. ” ( leslie, 2010 )
It ‘s of import for comptrollers to derive preparation in a professional environment. A professional comptroller follows rules. He/she is independent and they are responsible for their ain actions. Black ( 2000 ) says that there are many accounting constructs but four of them which have been identified as basicss are traveling concern, accumulations, consistence and prudence. To forestall accounting dirts, Statements of Standard Accounting pattern ( SSAPs ) was formed in 1970s.
Ethical motives are of import throughout the concern and finance field. As a professional comptroller, honestness is really of import to work ethic. A company will lose profitableness and clients if it does n’t value moralss. Trust, earnestness, confidentiality and ethical motives are indispensable in concern and they are the key to holding loyal clients. Ethical environment creates a comfort zone for clients and providers as they know they will be reasonably treated. Businesss can lose clients and providers due to their unethical behavior. Cipher wants to use and cover with an unethical person. Keeping fiscal affairs confidential is besides a cardinal ethical construct. A company ‘s or an person ‘s fiscal affairs and state of affairs should ne’er be disclosed.
In an ethical environment, comptrollers should be able to portion and discourse their thoughts without worrying about person else stealing or misapplying them. Good determinations will be made as a consequence of join forcesing. Treating people with regard is another ethical pattern. Having moralss is what allows clients to swear you. If you are true to your policies and guarantee client satisfaction, it will make strong and loyal dealingss with others and this will ensue in more gross revenues and concern. It will besides assist make good repute ; people will urge you to others. That can be the difference between failure and a successful concern. Without moralss you will develop a negative repute. Ethical motives have an impact of determination devising because greed can easy come in the manner where money is involved. Making ethical determinations shows that are morally right. Unethical determinations can take to dirts ; they can destruct companies and callings.
Practicing moralss will give you an border over your rivals. Satisfied clients, having positive feedback will turn out really good for your concern. Therefore it is necessary to hold a codification of moralss for all the employees. In order to do your concern flourish, the demand for moralss is perfectly critical. “ As a professional you know your ethic will reassure people of you desiring what is best for all involved in any concern covering ” ( leslie, 2010 )
Every concern needs a professional, skilled and good qualified comptroller. Without comptrollers a concern will ne’er cognize its fiscal place. The more control you have over its histories, the better you will be able to command the concern.
AOP, Leslie G ( 2010 ) How do you specify professionalism = Attitude! [ Online ] Available URL: hypertext transfer protocol: //accountantorpartner.com/2010/02/03/how-do-you-define-professionalism-attitude/ [ Accessed 4th November 2012 ]
Benson H ( 1989 ) Accounting for life. London. Kogan page
Black G ( 2000 ) Introduction to accounting. Pearson publishing houses. UK. P 3
Taylor, J ( 2003 ) Book-keeping & A ; Accounting for the Small Business. 7th Ed. Oxford, United land. Pp 11-38