| The significance of accounting has never been | | | | providing information that is used to determine |
| more apparent than in today's market, with the | | | | the present and future economic stability of the |
| struggling economy and the job market in | | | | organization. It has been proven that these |
| decline. Though the loss of jobs may be | | | | companies that use good accounting practices |
| happening in many fields the one that continues to | | | | have a competitive advantage over their |
| stay strong is accounting. The reasons for this | | | | opponents. Also they have the ability to improve |
| are the same reasons that accounting is such an | | | | their decision making abilities. Those that do |
| important aspect in the economy and in society. | | | | not use these practices face an inability to |
| Before we can begin to | | | | compete in the market and make their decisions |
| understand the importance of accounting, we first | | | | simply on a hunch. |
| must understand what accounting is. Accounting | | | | Not only is accounting |
| can be defined as the theory and system of | | | | very important in the business world it is also |
| setting up, maintaining, and auditing the books of a | | | | beneficial for ordinary people to know as well. |
| firm. It is the art of analyzing the financial | | | | Each and every person uses these accounting |
| position of a business through its sales, purchases, | | | | skills in their daily lives when making financial |
| and overhead. These records must be kept in | | | | investment decisions. They also use it when |
| chronological order and must be summarized in a | | | | assessing their interest rates in order to pay off |
| useful format. It is also responsible for | | | | their house mortgages. The final way in which |
| identifying information on the transactions, | | | | they can use these skills is to balance their check |
| analyzing it and then interpreting each and every | | | | books and to calculate the rates of their car |
| document. | | | | payments. |
| Now that we have | | | | Within the accounting department can be found |
| begun to understand what accounting means we | | | | the forensic accountants these are individuals who |
| can begin to examine how important accounting | | | | use the audit and investigative skills to assist in |
| really is. The first way in which it is important is | | | | legal matters and to make recommendations in |
| that an accounting education can be applied to | | | | order to minimize future risks. Their jobs also |
| any job industry. For instance a secretary uses | | | | can be extended into civil matters, for instance to |
| accounting in managing a company's check book. | | | | find any hidden assets in certain divorce cases. |
| Also the executives of this same company | | | | These individuals are just as important as regular |
| must be able to analyze the success of their | | | | accountants because of the fact that they are |
| business through analyzing the accounting | | | | also in very high demand. The reason though |
| statements from the past and present. These | | | | that their jobs are so important is because of the |
| are just two of the many job positions found in | | | | fact that fraud is becoming much easier to |
| any company that must have some knowledge | | | | commit. These actions are a result of the fact |
| of accounting. Another reason that accounting is | | | | that technology has increased significantly and |
| important to all business majors is because of the | | | | that gives people individuals the ability to commit |
| fact that the business world has now come under | | | | fraud on a massive scale and get away with it |
| much scrutiny. As a result they are held much | | | | very easily. |
| more accountable for their financial practices. | | | | The significance of accounting not only is clearly |
| This has occurred because of the events of the | | | | vital in the business world but it also can be |
| Enron and WorldCom scandals. For this reason | | | | shown that it plays a part on the individual scale |
| nearly all businesses require their employees to | | | | as well. For these reasons and many more it |
| have a general knowledge of accounting. | | | | can be shown that accounting clearly is if not |
| Another way in which | | | | close to the most important skill in todays' society |
| accounting is such an important aspect to any | | | | and will continue to be in the future. |
| business is that accountants are responsible for | | | | |