What is Accountancy?

Accountancy as a profession

Accountancy involves the production of accurate financial reports, often known as financial statements. The financial information is compiled together and provided to businesses and organisations.

The collected information is mainly used by managers, investors, tax authorities and other stakeholders. The information is required in order for companies, organisations, and public agencies to make decisions regarding the allocation of resources.

Accountancy is critical to the successful running of a business, because it allows the businesses to see if they are making a profit, and also understand what is likely to happen in the future.

What is an accountant?

Accountants are the people who perform accountancy. Accountants are highly skilled in keeping track of business records and audits. It is their job to inspect the financial records (the transfers of capital or income) of individuals or businesses, along with preparing financial reports.

Some accountants are responsible for examining the tax implications of those actions. In addition, accountants must be comfortable with numbers, but must also spend a considerable amount of time reviewing other people’s work and, in particular, delivering bad news.

Accountants are highly competent in understanding how organisations function. They are able to provide detailed information on company performances, risks, investments, tax and also strategic business guidance.