What is Accounting? Accounting 10 | ECS | 2011 Accounting 10 | Objectives 1.1, 1.2, 1.3, 1.4
Accounting is…. The process of recording, classifying, reporting and interpreting the financial data of an organization. The language of business. A Record of past information. Recording the same information in different ways. Accounting is systematic. Expressed in monetary terms.
Why Study Accounting? Accounting as a job –Many jobs require accounting skills and knoweledge. Owning your own business –The ability to keep accurate records and analyze them is a necessary part of running a business. Daily Life –An accounting background helps you understand the business world and handle your own day to day finances.
Jobs in Accounting Accountants –People who plan, summarize, analyze and interpret accounting information. Bookkeepers –People who do general accounting work plus some summarizing and analyzing. Accounting Clerks –People who record, sort and file accounting information. General Office Clerks –People who do general kinds of office tasks, including some accounting tasks.
Promotions in the Accounting World Possible Positions include: -CA: -CMA -CGA Post secondary study is required. Accountants Possible positions include: -Senior Bookkeeper -Bookkeeper Clerical Accounting study in addition to high school is required Bookkeepers Possible positions include: -Accounts Payable Clerk -Payroll Require one year of high school study of accounting Accounting Clerks Possible positions include: -Secretary -Typist General Office Clerk
Accounting vs. Bookkeeping Accountant Accounting Clerk/Bookkeeper -Plan the entire accounting system. -Prepare, analyze and interpret reports. -Assist owners in making financial decisions. -Supervise the work of other accounting workers. -Require formal training. -Perform the day to day accounting tasks. -Do the recording, classifying and proving of the financial data. -Does not require formal training Assignment: Accounting or Accounting ClerkAssignment: Accounting or Accounting Clerk | AnswersAnswers
Accounting as a Professional Career There are many routes you could take while you study accounting. They include: –Chartered Accountant –Certified General Accountant –Certified Managerial Accountant
Chartered Accountants Chartered Accountants, or CAs, are business professionals who generally work in four key areas. About 40% of CAs are in Public Practice, while the other 60% are employed in industry, government, or education. Start-up counseling Purchase and sale of business Business valuations Business planning and financial projections Developing strategies for securing financing Corporate and personal income tax planning Information technology need analysis Assurance (audits and reviews) Preparation and analysis of financial information Acting as Trustee for receivership, insolvency or bankruptcy Developing management controls Management consulting Forensic accounting and litigation support
Certified General Accountant Certified General Accountants (CGAs) are a select group of professional accountants working in leadership roles in Canada and beyond. CGAs are certified by the Certified General Accountants Association in their home province. Members in good standing with each provincial or territorial Association are licensed to practice in their respective provincial jurisdictions. CGAs perform or are involved in the following: accounting and business planning tax planning and preparation controllership services auditing management consulting financial planning business start-up advice systems advice and implementation retirement planning succession planning estate planning
Certified Management Accountant Certified Management Accountants (CMAs) do more than just measure value—they create it. Working in organizations of all sizes and types, CMAs provide an integrating perspective to business decision-making, applying a unique blend of expertise in accounting, management and strategy to identify new market opportunities, ensure corporate accountability, and help organizations maintain a long-term competitive advantage. CMAs have the following duties cost management strategic performance and measurement process management risk management assurance services stakeholder reporting connect strategy with operations anticipate customer and supplier needs have a holistic view of business able to identify issues envision and chart solutions
Types of Accounting Financial Managerial Cost
Types of Accounting Financial Accounting –Concerned with the preparation of financial statements from past information. Cost Accounting –Analyzing how money is spent. Managerial Accounting –Making decisions for the future. Assignment Assignment | Answer KeyAnswer Key
Types of Accounting Example- if a company buys a new truck, does it record the purchase price with or without tax (cost accounting)? After five years, does it spend $4,000 on repairs, or does it sell the truck (management accounting)? What amount has been reported on the financial statements for the truck in the last five years (depreciation—financial accounting)?
Generally Accepted Accounting Principles The rules that make up acceptable accounting practices are referred to as, Generally Accepted Accounting Principles (GAAP). The responsibility for setting for setting accounting principles is determined by many individuals and groups. Handout | Quiz | Answer KeyHandoutQuizAnswer Key