Accountants are the recognized practitioners of accounting. Then what is an accounting? It’s a process that entails the measurement and provision of financial assurances that will help the stakeholders such as the investors, the managers and also the regulators to make sound decisions on issues that pertain resource allocation.
Accountancy which is a synonym for accounting has been divided into a variety of fields. They include financial accounting, the external auditing, tax accounting and also the cost accountancy. Every set of the field stands for a certain set of entities for instance financial accountancy will deal with all the issues that pertain reporting the firms’ financial information. The information will be communicated in a variety of ways such as the preparation of the financial statements, that will help other stakeholders rather than the managers alone in accessing the firm’s abilities. The external users of the financial statements include the creditors, the investors, the regulators and also the suppliers.
Management accounting is also another field of accountancy that majors in the measuring,analyzing and reporting information for the purposes of management. it’s actually for the internal use. In the accounting process, you will expect to find the activities that entails recording any kind of a transaction to enable the accountant to make summaries and conclusions. this is commonly known as Bookkeeping which also branches into a double entry and the triple entry system. The double entry system is what is used most.
For any activity to be successful, it should have a supervisory setup! Accounting is also not left behind. the standard setters really play an important role to ensure that the accountancy is always transparent in all the organizations. All the financial statements are actually audited by the accounting firms that set standards for all the accountancy.
To conclude, accountants and accountancy really work together, Any successful accountancy needs a certified accountant. It’s therefore right to say accountancy depends on accountants!