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Accounting - One That All Business Need Most

Updated on May 17, 2009

In the past decade, businesses are growing very fast. There are globalization of business, increased competition, new manufacturing technologies, and now we're struggling the global crisis in finance and economic. All make many companies reevaluate their business practice. But for all those reasons one skill is still needed most in business that is accounting.

In fact, accounting is a skill that still needed during this world recession. Accounting systems created primarily to provide information for external reporting or created at a time when manufacturing technology and systems were essentially labor driven do not provide the information necessary to plan and control these business systems.

Accounting Course From Indiana University

Accounting is an information system which  measured business activities, processing an information become a financial report and communicate the results to all decision makers. Accounting is a "business language". The better the language the better the decisions have taken by the decision makers. For example, a giant company like has a plan to expand their business. All the CEO need a report about their business' performances. How will they take a decision to expand their company or not ? They need to know if their company is profitable or not. Profitable means you've got revenue more than all of your expenses.

Accounting methods will maintain the company's activity on its track. The accounting system will help the company to understand revenues, expenses, profits, and loss. Is profitable or not ? Is need to expand their company or not ? For all those decisions, they need to learn their financial reports.

To provide the kind of information needed by management, accountant began to redesign the accounting systems. Different kinds of data are needed for different kinds of decisions and different kinds of business systems require different kinds of accounting systems to provide that data. At least there are three accounting system, Financial Accounting, Cost Accounting, and Management Accounting.

Financial Accounting supplies information for the external part of the company such as investor and the creditor. They use the company's financial report to decide whether or not they invest or give the company a loan. Now they can access the company's financial report onlike like from the Wall Street Journal Report.

The Cost Accounting emphasizes that accounting information should be useful in planning and controlling the company's business systems. To be effective in this mission, the accounting system must be tailored to the unique nature of the business systems employed by the company. The Cost Accounting tend to supply the information for the internal part of the company.

Management Accounting emphasizes in information for the internal decision makers such as the CEO and the Managers.

Like other profession, Accountants have rules and ethics in doing their job. Accountants need to have a certificate that is lega; call Certified Public Accountant (CPA). The CPA serve the public and not certain company. An Accountant that works on a certain company is called Certified Management Accountant (CMA). Accountant works include auditing the financial report needed by the decision makers.

So, in this economic crisis situation a professional accountant is needed most by many business. Accountants may expand their capability in money management and money consultant. Many companies still need a good professional freelance accountant. Many people need a decision about where should they put their investments. Such as what to choose among options, stocks, savings, or foreign exchange for a police retired  investment.


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    • febriedethan profile image

      febriedethan 8 years ago from Indonesia

      Thank's lovezan, actually accounting is my major study when I was in college.