Updated : Jan 13, 2019 in Finance Accounting

Accounting Defined

Watching an awards show of any kind, there will be a time when they introduce the accountants for the evening. Wait. What? Why are accountants anywhere near the major awards shows? Well, they are the ones responsible for tabulating the votes and figuring out who won. Sometimes it works out and sometimes … well, sometimes the presenters are given the wrong card and they announce that the wrong movie wins … and the blame goes back to the accountants, in this case unfairly.

Accountants are found in all industries and offices. They play an integral part in the day to day business dealings by recording transactions, keeping records, performing audits and reporting financial information. They also advise their bosses on taxation matters and work at keeping balanced books.

Accounting defined is the act or process of keeping financial accounts and while a lot of the basic things like money coming in versus money going out and that sort of thing can be handled by a bookkeeper, the more advanced stuff is usually done by a professional accountant .

In short, if you have a business, you need an accountant. They are the financial brains behind the operation, they are the ones who use a systematic approach to record the financial transactions, they use comprehensive and complex strategies to summarize, analyze and report things to not only management in their own company but to oversight agencies and the proper tax collection authorities as well. They keep the business running in the right direction, and a good one will foresee pitfalls and steer the company clear of them well before they impact the situation. In short, they are the money brains behind a business.

They will also help management make sound and solid business decisions, having beforehand informed them of what's been going on with the company's finances. If you are the head of a company you have a lot to do yourself, which is why getting someone professional on the team to take over the money side of things is a good idea. And yes, they can also tally votes, and tell management about the resources available to them in matters of taxation, money flow and the ins and outs of daily commerce.

The next time you are watching that awards show, give the poor accountants a little credit, they're not just bookworms hunched over a desk crunching numbers, they are the lifeline of the company.