How accounting changed my life
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How accounting changed my life
Accounting is a section of business that is concerned with collecting and tabulating financial records. Major tasks in accounting involve recording, analyzing, safekeeping, and generating reports on financial transitions of an organization and individual as well. Almost every organization has accounting department, since financial background of any organization determines its stability. Accounting presents information on the general wealth of a company, how organization runs and makes profits. In any organization, accounting forms the platform that acts as a benchmark for an organization to achieve its short-term and long-term objectives. Example of such includes budget. Just like any other profession, accounting knowledge affects daily life in many aspects.
I now know financial awareness through accounting, in that I am in a position of taking control of my expenditure according to my income. Habits like impulse buying, having personal budget and wasting money on unnecessary things that could lead people living beyond their limit is in control.
Accounting teaches one to develop saving habits, learn to respect and keep track on savings and I am a beneficiary of this as well, have developed healthy relationship with financial institutions, even seeking for financial advices. In addition, I have learned to appreciate the amount of cash with me however little it might look. Accounting has enabled balance between income and expenditure on leisure and other activities. Research reveals that leisure is one big threat to saving activities, which has contributed largely to poverty. Effective accounting activities have enabled me to be organized with my funds, even extending financial assistances to other people without overstretching my budget limit. I have always felt comfortable when people around are settled and I believe that this is one way of appreciating people you live with.
I have realized that accounting is not only applied in financial situations but also in general life. Through accounting, I have practiced accuracy in everything I am doing, and have found this to be a very important personality. Being accurate has even enabled me to use everything I own with a lot of conscience, reducing wastages at large. Honesty being a virtue in accountancy, it has had positive impact on my character as a person. (Cabelli, c 2014) emphasized,” Honesty is defined by how individuals deal with mistakes”. Honesty has been a priority in dealing with any business, and this has made it easier to collaborate with other entrepreneurs.
Accounting helps one to be well equipped with investment knowledge, whereby, you get to know how to calculate the rates and percentages of interests on the amounts you are putting into investment projects. Having accounting knowledge one does not require hiring a financial advisor to deal with financial matters hence reducing costs and minimizing frauds. For example, if it is a business investment you need this knowledge to know what is going on in your business and how to deal with anything that goes amiss for successful results and good profits. In case of buying or selling, a business or an asset one needs this knowledge to understand and interpret the books of accounts and the records of that particular business entity. The social security funds is investing in savings whereby you entrust your money in another company so u need to know the elements involved and how the interests are compounded through accounting knowledge. Generally, we need accounting knowledge to help us in investment procedures. For example, we are required to complete federal tax return each year and in some other cases, a state return.
It is no longer necessary that to venture into any business you must get cash from your pocket. I am in a better position to secure financial loans from various financial institutions and manage my business financial transaction while avoid losses through accurate bookkeeping. As a law-abiding citizen, we have to encourage and appreciate paying tax. Another financial benefit from accounting is procedure of liquidating asset, as professional in business field one have to be aware of how asset evaluation is done, this has enabled me avoid exploitation.
Some weakness arises in accounting carrier path; being an accountant one requires having additional professional certifications in order to remain relevant as professional accountant. This means that an accountant will always have to go back to school to update his or her career skills. Lastly, accounting tends to be a boring work and people in this industry do same tasks. Today accounting software is mostly used, which does not guarantee that accountants are such effective on their own. (Lohrey, 2013). “Computerizing accounting section is a clear cut guarantee accountants will have capability to solve most of the issues on their own”.
In conclusion, accounting as a profession touches many areas of life, and with current development in business, it is almost becoming essential for every company to have accounts department however smaller the company might look. Some of the qualities accountants need to have are accuracy, trustworthy and honesty. Accountants should avoid Small mistakes at most minimize discrepancies. We need to keep in mind that accounting software is not exempted from malfunctions.(Phillip, 2014). Back-up is essential to computerized systems as they can breakdown anytime interfering with information. Overall accounting promotes positive habits in an individual and people should seek for financial advice from experts at all times.