Many People in today’s society think of an accountant as simply a glorified book-keeper. But the role of an accountant is continually changing. Discuss in the classroom what really the role of accounting is?
Over the centuries, accounting was confined to financial record-keeping functions. However, today's rapidly changing business environment has forced accountants to reassess their roles. The role of an accountant has now shifted from being a mere recorder of transactions to a member providing relevant information to the decision-making team.
Accounting today is much more than just book-keeping and preparation of financial reports. Accountants now work in exciting new growth areas such as forensic accounting, e-commerce, financial planning, environmental accounting, human resource accounting, social accounting, and responsibility accounting.
Accounting is regarded as the language of business as it collects and communicates economic information about an enterprise to a wide variety of interested parties through measurement, classification and summarisation of data into reports and statements.
Explanation
This answer addresses the misconception that accountants are merely glorified book-keepers. The textbook clearly explains how the role has evolved from simple record-keeping to becoming an integral part of decision-making teams. The context highlights new areas where accountants now work (forensic accounting, e-commerce, environmental accounting, etc.) and establishes accounting as the 'language of business' that communicates economic information to various stakeholders.
Solution Steps
Step 1: Explain the shift from traditional record-keeping to decision-making role
Step 2: List the new growth areas where accountants now work
Step 3: Describe accounting as the language of business and its function of communicating economic information