Industrial Accounts Institute
Need Of Industrial Accounting
Financial experts, particulary in the accounting industry, know that running a practice requires a broad skill variety. Additionally, staying in the black makes a clear understanding of economic flux, progressing technologies and operational problems especially crucial.
For an industry that plodded along fairly unchanged considering that the turn of the century, the world of accounting has experienced some tectonic shifts in the past decade. As the memories of Enron, WorldCom, and Arthur Andersen begin to fade and the industry, particularly the part occupied by the Big Four, reconstructs investor trust, accounting doesn't appear to be returning to its staid, old bean-counter roots.
Well, at least not entirely-auditing is auditing and tax season will certainly outlive us all. But the face of accounting has changed. Its function in business, especially big business, is a lot more complicated. The industry is being required to redefine itself and not just to satisfy the new federal policies.
One result of the accounting scandals from the early part of this century is a new realization of the vital function accounting specialists play in business decisions. New security policies now reach directly into boardrooms, dictating specific requirements about how companies operate-a place no one thought securities law might go. While this provides most executives the jitters, it exposes an unbelievable opportunity for the accounting occupation to carve out a new identity. Accounting has now become a basis for corporate behavior, decision-making, and principles, and the skills demanded of accountants are much more comprehensive as a result.
Accountants are becoming more important to their employers' decision-making processes than ever. Instead of being easy bean counters, monitoring companies' businesses without truly having an effect on the direction of those businesses-even if they work in-house-accountants are delighting in a greater voice in strategic business decisions. Instead of just collecting data and providing it to management, accountants are being contacted to examine the numbers and the business environment then to tell management about how companies are really carrying out, how they can be expected to carry out moving forward, and what steps management may take to improve future performance.
This new emphasis on strategic input in accounting indicates that it will be more crucial than ever for accountants to have a deep working understanding of technology, leadership ability, an understanding of the broad business environment, and the ability to interact with associates in a diversity of corporate departments and functions.