ACCOUNTING IN OUR DAILY LIFE

Accounting is the recording of financial transactions along with storing, sorting, retrieving,

summarizing, and presenting the results in various reports and analyses. Accounting is a system

wherein the financial books of an organization are set up, maintained and audited. It's an art

wherein the financial position of a company is analyzed by taking into consideration the sales, cost

of things purchased and costs of overheads. The records are maintained in a chronological order

and is summarized in a particular format. Accounting is also a field of study and profession

dedicated to carrying out those tasks. This topic was chosen due to the fact that accounting is an

often overlooked career, and yet it is a skill that’s used regularly in daily life. When it’s true that

accounting is most typically viewed as an essential part of the business world. Accounting is

important in our daily life for it is the way to communicate in the business world.

Accounting has been called "language of business". It is the language employed to

communicate financial information of a concern to various parties such as shareholders, creditors,

investors, employees, government, research scholars, consumers, and managers etc., who are

interested in such information Accounting's 500 year exceptional durability is being severely tested

by the New Economy, characterized by the fast pace of technological change and the consequent

increased uncertainty, the substitution of intangible for tangible assets as the major drivers of

value, and the blurring of the boundaries between the firm and its customers, suppliers and even

competitors. Accounting principles can be applicable in the trading concerns like sole trading

partnership firms, companies, non-profit-trading concerns, clubs, educational institutions,

agricultural farms, management and even households, students, employers and people. Accounting

is the language of business and not only important in the field of business, but is also necessary in

the day-to-day lives of the common man as well. Every day people use accounting skills while

Osting, Catherine L./English 1b/1:30-3:00PM(MW)/May 10,2019

making decisions related to finance and investment options. Moreover, accounting skills are also

used while making an assessment of the interest rates which are needed to pay off a loan. Within

the field of accounting, there is another section called forensic accounts wherein individuals use

investigative and audit skills to help in legal matters, besides making recommendations so as to

minimize risks in the future. This type of accounting jobs can also be extended into matters related

to civil issues like finding out if there is any hidden assets in some divorce cases. People working

in such cases are equally in demand as those working in the accounts department of companies.

The main reason for this is that, there are several instances of fraud and people are increasingly

finding out new ways of committing financial crimes. Accounting is significant not only from the

point of view of jobs in the corporate field, but also in our day-to-day lives. People responsible

for keeping the accounts of a company should look after all matters related to the finances of a

company be it profit, loss or the amount an organization has to pay in taxes. For instances like

making sure all the charges are correct, budgeting and managing spending money, planning for

the future and getting better grades for students are some of the activities that can’t let people get

away from the practice of accounting.

Accountancy is helpful for trading concerns, non-trading concerns, and government and in

general, to Households, students, employers, employees, to everyone. Accounting principles can

be applied in each and every sphere of our lives. Every person must ask himself what he has done

for the country as the accounting principle. Then, each and every person will work hard for the

prosperity of the country in Accounting era. The established accounting representation recognizing

primarily tangibles as assets, dealing asymmetrically with uncertainty (recognizing expected

losses but ignoring expected gains), and focusing on legally-based transactions while abstracting

Osting, Catherine L./English 1b/1:30-3:00PM(MW)/May 10,2019

from many value-changing events was not designed to deal with the new economic environment,

and therefore no longer serves necessary managers' and investors' needs.

Osting, Catherine L./English 1b/1:30-3:00PM(MW)/May 10,2019