Accounting is a vast and magnificent study and professional field but the common perception is that accounting is all about numbers. That is not true. Accounting of course has something to do with the numbers but it incorporates an intellectual aspect that brings with it a number of interesting and some debatable issues. Those who study accounting or work as accountants are seen as dull beings working in monotonous routines in corporate and finance sector. But accounting is more about a person’s intellectual abilities and skills that make the field a success. It is not only a number game but is actually a mind game and requires intelligence to come into play to make crucial decisions.
Misperceptions:
As said earlier, those who do not have adequate knowledge of accounting information are of the view that the field only revolves around numbers and those associated with it are boring personalities. This is all a misperception that has made the field look quite dull and not-so-loved especially among the youth. Although accounting revolves around digits and numbers, it is more about subjective estimates and wise decisions that demand thoughtful judgment and powerful imagination. Making misconceptions about accounting and those associated with the field is of no use as the field is vast and incorporates many other aspects and areas as well.
What accounting actually is?
Those who are excited to step into the field of accounting want to know more about accounting basics and it’s the fundamental concepts and knowledge that helps in making a clear understanding about a particular field. Accounting is actually a language that translates business. It is a process whereby we identify, measure, and communicate the economic data to allow thoughtful judgments by the people who make use of that data. This is the most precise definition stated by the American Accounting Association and tells the reader what accounting actually is.
The role of accounting:
Accounting is a major and most vital component of any business and plays a significant role in all kinds of tasks and activities related to economics whether in public, private, corporate, or governmental sectors. Whether one runs a departmental store, a clothing store, a financial institution, a small scale business, huge enterprise, a school, a shopping mall, a medical facility, or an entertainment theatre, accounting is required to keep a track on the budget spent and helps in making financial decisions about the future investment and expenditure.