ACCOUNTANTS AND ACCOUNTANCY.
An accountant can be referred to as a professional who executes accounting related duties such as analyzing financial statements or auditing. They are dexterous when it comes to books of account. An accountant creates and monitors accounting systems that are needed for records about the transactions a business conducts. Accountants are either hired by accounting firms or a large firm with an accounting department. An accountant could as well establish their private accounting firm. They can have multiple accounting duties concerning the accountant’s educational background. This is to say that an accountant will either be assigned the position of a public accountant, auditor, tax professional, forensic accountant, financial advisor or consultant.
Accountancy, on the other hand, commonly referred to as bookkeeping, is the act of recording, putting into classifications and reporting the business transactions that a business conducts. In simpler terms, accountancy is the process whereby accountants manage the profits and the expenses of a firm. The practice provides the management with feedback on the financial results after conduction of a transaction and the status of the firm at that moment.
Data produced after accountancy could be used for various purposes. In the case that the data reported is intended for parties or firms outside the company, it’s referred to as financial accounting. In other words, financial accounting is the act of computing, summing up, and reporting of financial information regarding a company to relevant parties not within the company such as shareholders. On the other hand, when the information obtained during accountancy is intended for internal use, that is to be used within the company, it’s referred to as management accounting. This is usually done either monthly, quarterly, or semi-annually. The purpose of management accounting is to provide managers and other concerned internal parties with information about operational costs.