Examine the purpose of the accounting function within an organization.


Definition of accounting 

In the world, there are many definitions of accounting because it is regarded as the language of business. According to Iwuozor (2023), the systematic process of locating, quantifying, and sharing financial data about an entity is known as accounting. Enabling users of this information to make knowledgeable decisions and judgments is the aim of this process.


Examine the purpose of the accounting function within an organization

  • Accounting functions are operating systems that include bookkeeping information of financial accounting and reports, recording, finance analyzing, and operating cash flows (Indeed, 2022).
  • The purpose of accounting is to accumulate and keep the financial records of an organization or business over a time period. Accountants can know information about the business's performance, cash flows, and financial position. As a result, the managers will be able to comprehend the choices made regarding general financial management, investment, and lending to the company. (Bragg,2023)

The scope of Accounting in organizations

The accounting scope was enlarged by the changes in the economy and social norms. For example, it extends to businesses, government organizations, non-government organizations, and Individuals. (Geektonight, 2022).


The branches of Accounting in organizations
  • The branches of Accounting are vast and diverse, with different areas serving unique purposes in the business accounting world. Some of the types of Accounting that employ certified accountants include Management Accounting, Financial Accounting, Taxation Accounting, and Cost Accounting. These professional accountants are crucial to the smooth running of accounting operations in various organizations (Abedin,2018). 

- Financial accounting: To assess financial stability, financial accounting entails the recording, analysis, and reporting of all business transactions. Financial reports will be created from economic information data for individuals who require them. (The Economic Time,2023).

- A tax accountant is responsible for calculating and declaring taxes for businesses. Besides, tax accounting supports proper government management of the economy (Meinvoice, 2022).

-  In order to achieve organizational objectives, management accounting involves gathering and presenting information about financial activities to audiences outside the company, such as shareholders, creditors, government agencies, securities investment analysts, and customers. 

-  Cost accounting is a branch of management accounting that deals with a company's total production costs. This emphasizes that cost accounting is concerned with calculating product costs for use in financial accounts. (Colin,2013).

Job skillsets required for accountants



·        To be successful in your career, accounting requires many job skills. The first is to know how to use accounting software such as Excel, Google Suite, or the company's own software. Second is the ability to keep records and prepare financial reports to be able to analyze and evaluate company finances in depth and find loopholes. Besides, they need to have specialized knowledge to help company executives make important financial decisions. And based on annual reports, they can plan to lead the company's operations in the future (Gallagher, 2023).


R References: 

Abedin, R. (2018) Different branches of Global Accounting and accountants responsibilities: A study in brief spectrum, The International Journal of Accounting and Business Society. Available at: https://ijabs.ub.ac.id/index.php/ijabs/article/view/364 (Accessed: 28 October 2023). 

Bragg, S. (2023) The purpose of accounting, AccountingTools. Available at: https://www.accountingtools.com/articles/what-is-the-purpose-of-accounting.html#:~:text=The%20purpose%20of%20accounting%20is,or%20lend%20money%20to%20it. (Accessed: 29 September 2023).

Colin M.D(2013), 'Management and cost accounting', books.google.com, <https://books.google.com/books?hl=en&lr=&id=l2gFCAAAQBAJ&oi=fnd&pg=PR19&dq=cost+accounting&ots=EuFgvAqCu1&sig=NXyVe-6i2Oz88gOZ5LgKMRbR0To>(Accessed: 30 September 2023).

Gallagher, M. (2023) The Accounting Skills You Need for a successful career, Forbes. Available at: https://www.forbes.com/advisor/education/skills-for-accounting-career/ (Accessed: 29 October 2023). 

Geektonight (2022) 8 nature and 5 scope of accounting, Geektonight. Available at: https://www.geektonight.com/nature-and-scope-of-accounting/ (Accessed: 29 September 2023).

Indeed (2022) What are the functions of accounting? | indeed.com. Available at: https://www.indeed.com/career-advice/career-development/functions-of-accounting (Accessed: 27 October 2023). 

Iwuozor, J. (2023) What is accounting? the basics of accounting, Forbes. Available at: https://www.forbes.com/advisor/business/what-is-accounting/ (Accessed: 29 October 2023). 

Meivoice (2023) Kế Toán Thuế là gì? Các Công việc Của Kế Toán Thuế Cần Biết - Hóa đơn điện TỬ Misa: Tiết Kiệm 90% Chi Phí: An toàn nhất, Hóa Đơn Điện Tử MISA | Tiết kiệm 90% Chi Phí | An toàn nhất. Available at: https://www.meinvoice.vn/tin-tuc/15883/ke-toan-thue-la-gi/ (Accessed: 30 September 2023).

The Economic Times What is ‘Financial accounting’ (2023). Available at: https://economictimes.indiatimes.com/definition/financial-accounting (Accessed: 30 September 2023).











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