Keeping up with New Accounting Practices

Keeping up with New Accounting Practices

In every industry, there are practices associated with it. These define how the professionals within the industry should conduct themselves. These rules also stipulate the manner in which business should be conducted between the provider and client. Accounting is no different. Accounting practices can be divided into two main categories:

  • Universally accepted practices

  • Practices embraced by an individual country

Every year, accounting bodies re-examine the concepts and practices in use. The aim is to see how relevant these are and whether there is need for amendment. It is important that this be done since the business world is changing by the day. The onus is on business owners and managers to keep up with the emerging accounting practices.

Keeping up to date with knowledge

Accountants, auditors, financial managers and consultants are the people entrusted with the task of implementing the relevant practices in the industry. As new challenges in auditing, financial reporting and taxation emerge, it is certain that you cannot remain rooted to the old way of doing things. You have to keep track of the emerging trends and implement them in your business. Attending regular CPE courses is one effective way to keep accounting professionals up to date. Mark you; these are not professional qualification courses. They are ways of refreshing your knowledge.

Why accounting practices change

Accounting principles remain the same no matter what. For instance, if you are an accountant, you are aware of how double entry works. This is where each transaction will always have a twofold effect. The fact remains that even if international bodies decide to change the way a particular item is treated, the entry system remains the same. Nonetheless, changes in the way businesses are run coupled with new technological innovations may trigger a change in accounting practices. The aim is to standardize reporting and to have a uniform approach.

How new practices come into being

Representatives from the main accounting bodies meet on a regular basis. They brainstorm on what has been in use so far. If some changes are to be implemented, they tabulate them. A vote is then taken upon which the change is accepted or rejected. You can keep up with these developments through the website of the accounting regulating body in your region. The changes are also printed and released in form of e-books or journals. Accounting seminars are then held in order to sensitize accounting professionals about the new practices.

What do you need to do?

First you should be a fully qualified accountant. You can do this by qualifying as a Certified Public Accountant (CPA), Certified Management Accountant (CMA) or a certified auditor. This allows you to become a member of the main accounting body. Make sure you find and attend professional seminars taking place within your region.

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