Accounting or accountancy will always surface in the discussion of money and finance. To some, its importance may not be that evident. But if you will look beyond all the numbers and figures that accounting crunches, you will
find out that these numbers are the basis of determining the longevity of a business. The primary task of an accountant is to prepare and examine financial records. On the surface, this task may seem as simple and as easy as keeping checks in check and expenditures balanced but from then on, it branches out to several other sub-tasks that embody the complexity of the profession of accounting. This includes making sure that figures and data concerning tax are accurate and are in compliance of the law. They are also in charge of generating reports regarding the cash flow of the company, budgets and cash plan, accounts receivable, accounts payable, income statements, balance sheets, stock holding, owner equity statements, and debtors and creditors statements.
Accountants analyze information and options by developing spreadsheet reports and verifying its information. They are in charge of reconciling accounts and preparing general ledger entries by maintaining records and files. They also answer accounting and financial questions by researching and interpreting data which can really affect the direction a company will take. And in today’s time wherein outsourcing is becoming the immediate solution of companies, accountants have found themselves playing even bigger roles due to the demand of providing risk management services and financial management services.
Aside from all these tasks, like any other professional, accountants also have duties and responsibilities that require great competence, integrity, and due care. Every accountant should not allow bias, conflict of interest or undue influences override his professional business judgments; these may jeopardize his reputation as a professional. After all, finance is a sensitive matter that is shrouded in confidentiality and can make or break a company. Even a simple mistake may result to profit loss or lawsuits. This is why the code of ethics for professional accountants plays a very important role in establishing ethical requirements for professional accountants. It contains the fundamental principles to ensure that the worldwide accountancy profession is kept on high quality and performing standard.
Aside from the code of ethics, there are also independent bodies and organizations that oversee the conduct of professional accountants and make sure their servitude to the public interest. IFAC or International Federation of Accountants is a global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. As of the moment, the organization is comprised of over 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.
With the code of ethics and organizations like IFAC, we can foresee that the profession of accountancy will remain a relevant and reliable industry despite of all the complexities and responsibilities revolving around it.
