One of these following facts about accounting should be really important for you, accountants, to read. Accounting, or accountancy, is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. Furthermore, to get to know more about this, here are some other facts about accounting you might consider important and interesting for your work-life.
Facts about accounting 1: Several Fields
Accounting can be divided into several fields including financial accounting, management accounting, auditing and tax accounting. Financial accounting focuses on the reporting of an organization’s financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and supplier and management accounting focuses on the measurement, analysis and reporting of information for internal use by management.
Facts about accounting 2: Name
The word “accountant” comes from the French word “compter,” which means to count or score. Over time, the “p” was dropped in both spelling and pronunciation.
Facts about accounting 3: Roman Military
The ancient Romans were obsessed with record keeping. Their military bases kept detailed accounts on everything from how much grain was in their stores to how many nails were in their workshops.
Facts about accounting 4: Accounting Organization
Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms, and are prepared in accordance with generally accepted accounting principles (GAAP).
Facts about accounting 5: Accounting and Accountancy
Accounting has variously been defined as the keeping or preparation of the financial records of an entity, the analysis, verification and reporting of such records and “the principles and procedures of accounting”; it also refers to the job of being and accountant. Accountancy refers to the occupation or profession of an accountant, particularly in British English.
Facts about accounting 6: History
The history of accounting is thousands of years old and can be traced to ancient civilizations. The early development of accounting dates back to ancient Mesopotamia, and is closely related to developments in writing, counting and money, there is also evidence for early forms of bookkeeping in ancient Iran, and early auditing systems by the ancient Egyptians and Babylonians.
Facts about accounting 7: Subfields
Accounting has several subfields or subject areas, including financial accounting, management accounting, auditing, taxation, and accounting information systems.
Facts about accounting 8: Professional Bodies
Professional accounting bodies include the American Institute of Certified Public Accountants (AICPA) and the other 179 members of the International Federation of Accountants (IFAC), including CPA Australia, and Institute Chartered Accountants in England and Wales (ICAEW). Professional bodies for subfields of the accounting professions also exist, for example the Chartered Institute of Management Accountants (CIMA).
Facts about accounting 9: Accounting Degrees
At least a bachelor’s degree in accounting or a related field is required for most accountant and auditor job positions, and some employers prefer applicants with a master’s degree. A degree in accounting may also be required for, or may be used to fulfil the requirements for, membership to professional accounting bodies.
Facts about accounting 10: Accounting Research
Accounting research is research on the effects of economic events on the process of accounting, and the effects of reported information on economic events. It encompasses a broad range of research areas including financial accounting, management accounting, auditing, and taxation.
Hope you would find those accounting facts really interesting, useful and helpful for your additional reading.