What Accounting Entails
Accounting can be defined as the action or process of recording, sorting, storing, summarising, retrieving and presenting financial transactions in a manner that can help a business or any other commercial establishment make informed decisions. The accounting process may include the following:
- Preparing and adjusting entries (searching for and recording transactions that were not recorded in the books).
- Carrying out the analysis of the operational costs of the establishment
- Preparing the financial statements of the business
- Completing tax returns including income tax returns
- Helping the business owner to understand the impact of financial decisions
Accounting seeks to provide reports that put together the financial indicators of a business. The main aim of accounting is therefore to deliver a better understanding of a firm’s profitability as well as the awareness of cash flow. It uses the information availed by bookkeepers in the ledgers. Accountants also help business owners with financial forecasting, strategic tax planning as well as tax filing.
Which Should You Be?
Now that you have a clear understanding of what bookkeeping and accounting entail, it’s likely to throw up the questions of which career you’d prefer. There are many considerations to take into account when choosing your career, and we’ve listed some below, to help you make up your mind.
Bookkeeping:
To be a bookkeeper, you need to have the right skills and qualifications. The Certificate IV in Accounting and Bookkeeping (FNS40217) is designed to help you gain the knowledge that employers are looking for in this field. The course is nationally accredited and meets the qualification requirements needed to become a registered Business Activity Statements (BAS) Agent. The attributes of a good bookkeeper include high levels of accuracy, knowledgeable about various financial topics, and highly attentive to detail. A bookkeeper’s work is under supervision by an accountant or the owner of a small business whose financial books they are keeping.
Accounting:
An analytical mind and an appetite for problem solving are attributes for success in the field of accounting. The Diploma of Accounting (FNS50217) is designed to give you the training and knowledge for a range of career pathways in the accounting, business and finance sectors. The course is nationally accredited and will give you some of the educational units required to become a registered Tax Agent.
From the above information, you should be able to make an informed decision on which career path to take. Accountants rank higher in the job scale compared to bookkeepers but remuneration may depend on the size of the business. The undeniable fact is that both of the professionals are needed by any serious business owner.
To make your start in a career in Accounting or Bookkeeping, check out the courses offered by Kangan Institute. If you have any questions, drop us a line here.