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information about accounting

information about

Accounting

What is accounting? Accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. ­Accounting is the language of small business. Without proper insight into your company’s financial health, you are paralyzed as a small business. As an individual, you may only ever use an accountant by way of an online form for submitting your taxes. Those are handled by Certified Public Accountants (CPAs), who pass an exam to prove their mastery of accounting. For businesses, though, tax collectors, regulators, and other oversight agencies want to see thorough and proper accounting records.

An accountant usually works for a person, a business, or the government. However, accounting firms such as Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PWC) are renowned for tracking and managing public and private financial data.

Here’s a breakdown of the three main types of accounting:

Financial Accounting

This type of accounting is accomplished with investors in mind. It is used to assess the financial health of a business and helps management get an accurate idea of a business’s finances.

Managerial Accounting

This type of accounting is used to generate financial statements for companies, including product costings, cash flow reports, profit and loss statements, and business acquisition reports. This type of accounting is essential for business leaders, as it provides accurate financial data and can help companies make decisions about their money. 

Tax Accounting

Tax accounting focuses on how your business works with the IRS. Accountants can help you understand your financial picture when filing your yearly or quarterly taxes.

accounting career

mANAGEMENT aCCOUNTANT

Work as an accountant in various service firms and retail (national or international)

Highest Career: President Director/CEO

public aCCOUNTANT

Work as an auditor in various government institutions (BPK, Ministry, etc.)

Highest Career: President/Governor/Ministry

tax consultant

Work as a helper to taxpayers to calculate the amount of tax that must be paid.

Highest Career: Independent Tax Consultant

teaching aCCOUNTANT

Work as a lecturer on campuses.

Highest Career: Professorship

Auditor

Work as an auditor in a national or international accounting firm. They usually have their own offices or work in groups at a firm. To become a public accountant, you must obtain permission from the Minister of Finance.

Highest Career: Partner of Accounting Firm