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The accounting industry offers many different types of possibilities when it comes to a career. Accounting jobs are numerous in nature and range from entry level to executive. Many accounting jobs offer challenges to those working them. Accountants tend to be highly organized individuals and people who are very precise and meticulous.
Consistency and Accuracy
One enormous challenge an accountant faces is consistency. Accountants post business transactions daily, and transactions must be posted consistently and accurately. Companies have standard procedures employees adhere to, and it is extremely important for an accountant to follow the procedures in the same way daily. An example of this is posting transactions for accounts receivable. When customers are billed, an accountant follows standard procedures to keep billing consistent. This includes offering discounts and including the correct terms of the bill on the invoice.
Generally Accepted Accounting Principles
Accountants always follow Generally Accepted Accounting Principles (GAAP). These are principles designed for accountants that regulate how accounting principles and procedures should be handled to account for transactions in a business. Some of the principles outlined by GAAP include the consistency principle, the full disclosure principle and the matching principle. The consistency principle is important so records are kept in a steady manner. The full disclosure principle states that companies make footnotes on their financial statements outlining any changes they made to accounting methods or any other information the public should be aware of. The matching principle is often a challenge for accountants as well. With this principle, accountants have the responsibility of posting all transactions in the period in which they occur. This principle deals with revenue and expenses. In most businesses revenue is posted in the month in which it was earned and not when it was collected.
Deadlines are another huge challenge in most accounting jobs. Accountants work diligently, posting transactions as they occur. This is extremely important in accounting, because at the end of each month, accountants are responsible for preparing financial statements. Business owners typically like getting these statements as fast as possible after the month ends. This puts pressure on accountants to ensure all transactions are posted accurately, promptly and consistently. In order to prepare financial statements, all information from the month must be posted.