According to Eisen, accounting refers to the “art of organizing, maintaining, recording, and analyzing financial activities” (1). The work of an accountant is to convert the accounting information into meaningful terms that are understandable and thus can be used by interested parties. An accounting system can use a simple check register or use the Microsoft Office Accounting which is more appropriate. Although accountants follow the same procedure as bookkeepers, an accountant can design a system that will capture all the necessary details that are needed in a business (Snyder Microsoft.com). Accounting systems are there to serve the control, management, and planning purposes of public finance administration. There are many reasons why accounting is said to be very vital. Just like the language of business, every business owner should be able to know the importance of accounting. Accounting is important as it helps in interpretation of companies operations and finances. Another reason why accounting should be considered important is the fact that it is usually considered as the guiding force to good management decisions in a particular company. No company management team can make sound decisions without knowing how the company finances are. It is important because it helps people to move to a next level in their plans for business. For example, with accounting, a business owner is able to avoid fraud that can cause the downfall of his or her businesses. 2. Differences between Private Accounting and Public Accounting There are many ways of classifying accounting and accountants but the most common method is whether it is private or public. Most college students get stranded on whether to start their career in private accounting or public accounting. Lecturers and university professors are of the opinion that public accounting is the best path to a successful accounting career. The advantage of following this route (public accounting) is there are high salaries involved, more interesting and diverse work which gives an accountant the chance to get exposed to many other companies because his or her work is not limited to a particular company. For example, a public accountant performs three to four audits in different companies in one year, while the private accountant is usually stuck monitoring ledges for a year in one company (Vault Editors 91). Differences between the two types of accounting arise from the differences that exist in payments and accountants training, experience, working environment, social skills, and certification. 2.1 Payments Public accountants are paid directly for providing their services to businesses or individuals. According to Pride, Hughes and Kapoor, “a public accountant works on a fee basis for clients and may be self-employed or be the employee f an accounting firm” (446). In other words, the payment is made to the accountant himself and not via a company (Vault Editors 90). Private accountants on the other hand are not paid directly as it happens in public accounting. Payments are made via the company a private accountant is attached to. Direct payment is not possible in this type of accounting (“What is the difference,” accountingtools.com). 2.2 Training A public accountant is trained on how to evaluate of accounting systems, gather evidence and make assessments to find out whether statements are correct (“
Name Finance and Accounting 22 October 2013 The Differences between Public and Private Accounting 1. Introduction Generally, accounting is very important to everyone, be it at home, school, work, or even in business. Everyone is expected to account for all the money he or she uses and show how the money is spent…
International accounting is regulated by International accounting framework. This reports briefs about the concept, usefulness, and implications of International Accounting. This report is containing all the research of International Accounting Standards, UK GAAP and European rules and regulations about Accounting.
In the view of Turgeon, Rabinowitz, and Wong (2008), IFRS conversion causes a change in book and tax accounting methods which will have a direct effect on the company’s income tax reporting, cash taxes payable, and tax compliance.
The main difference between public and private sectors is management and control. Whereas public sector is controlled and managed by the government, private sector is controlled and managed by private sector and individuals. Many differences emanate from the mode of control and management exhibited in these two forms of business entities.
The private sector on the other hand operates with the main aim of maximizing the return of the shareholders . Because of the differences in the reporting nature and the objectives of accounting reporting, government accounts failed to reveal the high level; of bankruptcy as was observed by the private sector.
These principles are meant to be formulated to the best interests of the public in relation to the execution of accounting practices in public companies. The FASB recommended the formation of the Emerging Issues Task Force (EITF) in 1984. The EITF was tasked with assisting the FASB in improving financial reporting through discussion, timely identification and resolution of financial accounting issues.
The fact that the public sector if government controlled, means that the element of growth is limited to the regulations, which are imposed or implemented by the government. To ensure this is changed it is essential to alter certain ideologies in
The public sector and private sector describe two main types of business. These two sectors provide similar services on some levels, but they differ from one another on a number of issues, which include ownership and objectives.Though there are similarities between the two sectors, there are also differences between the public and private sector
the mechanisms of reproductive as well as the fundamental biological drive which exists in each species and can incorporate sexual contact in all its practices. There exists physical or emotional aspects of sexuality; these refer to an existing bond between people who can be
Private individuals and organizations, at the same time, are increasingly concern about crime prevention and they realize the public law enforcement officials often enter the scene too late to adequately protect them. Over
There are numerous public and private aspects of sexuality of people. Human sexuality is the presence of sex-related feeling and closeness between people. Rationally, sex is the system for demonstrate the volume of truly appeal between a man and a woman. Commonly,
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