What is accounting?

What is accounting?

Accounting is the process of tracking and recording financial activity. It is the system of summarizing business and financial transactions and analyzing, verifying, and reporting the results

Accountants prepare, analyze, and maintain financial records. They work as auditors, consultants and financial experts for many different large companies.

Accountants prepare, analyze, and maintain financial records. They work as auditors, consultants and financial experts for many different large companies.

In addition, these professionals also work in the tax field as experts that people often hire to file their yearly taxes.

Educational Requirements

The road to becoming an accountant begins with an undergraduate degree in accounting. This four-year programme includes courses like financial accounting, accounting information systems, income tax, cost and managerial accounting, and auditing. Each type of accounting has specific education and individualized certifications

Golden rules of accounting

Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debits (dr) record all of the money flowing into an account, while credits (cr) record all of the money flowing out of an account.

 

The most common types of accounting

• Financial accounting (Финансовый учет) Managerial accounting (Управленческий учет)
• Cost accounting (Учет затрат)
• Auditing (Аудит)
• Tax accounting (Налоговый учет)
• Accounting information systems (Информационные системы бухгалтерского учета)

Glossary

• Bookkeeper (бухгалтер)
• clients (клиенты)
• tax accountants (налоговые бухгалтеры)
• tax returns (налоговые декларации)
• internal auditors (внутренние аудиторы)
• budget analyst (бюджетный аналитик)
• management accountants (бухгалтеры управления)
• supervisors (наблюдатели)
• CPA (Certified Public Accountant) Сертифицированные государственные бухгалтеры