ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How Globalization Affects Current and Future U.S. Accountants

Updated on April 2, 2018

How Globalization Affects Current and Future U.S Accountants

Globalization is defined as the process by which businesses and other organizations develop international influence or start operating on an international scale. U.S accountants are greatly affected by the differences in standards used by U.S. and the rest of the world. Many believe it is in the best interest to have a universal set of high-quality standards for accounting. “The key assumption is that universal acceptance of a single set of high-quality standards would make the world's capital markets more efficient by enhancing the consistency and comparability of financial statements. Greater efficiency in the world's capital markets would in turn lower the costs of capital for businesses, and lower capital costs would encourage economic growth on a global scale.” (Pounder). “Historically, U.S. GAAP has been regarded as being the highest-quality set of financial accounting and reporting standards in the world. But its acceptance is far from universal, and its standards have been slow to evolve and improve as the business world has become increasingly complex and globalized” (Pounder). While United States continues to use GAAP, most countries use International Financial Reporting Standards (IFRS). This puts U.S. Accountants and Accounting students at a great disadvantage. This leaves them having to

incorporate two different principles in order to do business. As a result of this, U.S. accountants are at a disadvantage to those foreign accounts who are already knowledgeable of IFRS who are then better qualified for rapidly growing career opportunities in China, India, and other evolving economies (Pounder). Learning both sets of standards is not an easy task as most current accountants are used to GAAP since that is what they have been practicing. It would also be in a future accountants best interest to learn both sets of standards before applying for jobs whether they want to work globally or not because that is what is going to be preferred.

The second affect globalization has on accounting is the change in primary focus from external reporting to both external and internal. “In the U.S. economy, a thriving financial sector is usually supported by a strong public accounting and auditing firms. Therefore, the focus over recent years has been to ensure that accountants excel at compiling information involving a company’s assets, liabilities, equity, investments, etc” ("The Effects of Globalization on Both Accounting Profession and Education" 2017). Due to globalization external practices are not as respected if not paired with internal. Internal practices are key to business because it is what shapes the way they communicate and reach customers in the foreign market. “The responsibilities of the internal accountant are becoming more critical to the success of businesses. For a business wanting to expand into foreign territory, cost accounting is used to accurately develop product price information, location of manufacturing facilities, picking suppliers, etc” ("The Effects of Globalization on Both Accounting Profession and Education" 2017). Internal accountants have to be familiar with many regulations, currency conversion costs, and tax treatments overseas. With more and more businesses expanding and striving to go global there is more of a demand for accountants with skills with internal practices or even better, external and internal. Globalization shifted the primary focus in accounting which is a pretty big deal.

In reaction to all the changes in accounting due to globalization, the education for accounting students has drastically changed. The change with the shift away from GAAP greatly affect the education of accountants. Currently GAAP is the primary focus in accounting classrooms because that is what is most widely used. The guidelines are rapidly changing which is going to require a change in the education in what is currently being taught. Previously, accounting students would feel confident with only being familiar with the tax code of the area in which they would be working in, but now are required to be familiar with more taxation systems in order to compete in their field. Another key factor is that accounting students can expect that there may be a lot more freelancing in the market rather than being employed by a particular company. With globalization certain areas of accounting are being outsourced to places where labor is more inexpensive. It is becoming more and more popular to be sent to other countries for work which would require students to further their education to meet the needs to work overseas including all regulations and laws, language and culture, and business practices ("The Effect of Globalization on Accounting Programs" 2017).

Globalization has a huge impact on U.S Accountants and U.S Accounting students. One would think that it has little effect when really it has a huge influence. The standards U.S. Accountants and students have learned and practiced are now being rapidly changed. The primary focus has been shifted from external reporting to a combination of external and internal. As a result of globalization and all these changes accounting programs and education has to be altered in order to prepare students and future accountants for what is to come due to globalization. It is not as simple as just doing business in another country. There is a lot you must know, be able to practice, and be aware of when it comes to the affects on accounting with globalization.

Works Cited

Pounder, Bruce. "How Globalization Is Affecting U.S. Accountants." Strategic Finance, vol. 88, no. 7, Jan. 2007, pp. 41-45. EBSCOhost, proxy- b=a9h&AN=23572488&site=ehost-live&scope=site.

“The Effect of Globalization on Accounting Programs.” Vista College, 13 Nov. 2017,

“The Effects of Globalization on Both Accounting Profession and Education.” JOSIC, 23 Apr. 2017, globalization-on-both-accounting-profession-and- education.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)