Assessment on the Diversity in Accounting

One of the pertinent issues in Accounting today is the issue of diversity. Diversity is not only a business issue, but a social issue. Undeniably, business has become more global than ever before. Is it fair to say that that the workforce should reflect this trend? If so, how can we assess the diversity in the Accounting profession today? Specifically, how can Accounting firms assess their hiring efforts of minorities? Analyzing this situation, it is clear that Accounting has come far in diversity inclusion; however, hiring efforts must increase and more needs to be done to specifically interest minorities into accounting

Small business accounting plays a crucial role in deciding the success of a business enterprise. Financial matters related to small businesses are a little different from that of the large business firms. So, if you wish to administer your business in a proper way, understating of these accounting matters are mandatory. Optimum utilization of funds, correct business activities, right credit allocation and timely evaluation of competitors along with effective decision making are all necessary for small business accounting professionals.

Everyone who runs a business organization knows the difficulty of maintaining the account books. Accounting work is complicated yet very crucial for the organization. Any discrepancy due to carelessness can cause great havoc and wastage of time. So, no business organization can afford to take any chances as far as maintaining the account books are concerned. Taking accounting help from experts in the field is thereby the viable solution available.

History of Accounting

Early History

Accountancy’s roots date back almost to the days of pre-history when man toiled the fields in early civilisations, such as the Sumerians, located in southern Mesopotamia, an area geographically located between the Tigris and Euphrates rivers, who are known to be one of the earliest known civilisations in the world.

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Just like any other business field, real estate is also associated with all types of financial transactions, profits and losses, credits and debits, incomes and expenditures and so on. In fact, the figures and data associated with real estate industry can outnumber those available with other businesses. Keeping this fact in mind, we can say that real estate accounting is more complicated and cumbersome than account maintenance followed by other businesses. Thus, you definitely require accounting professionals with those extra skills to handle your business figure accurately.

The global financial crisis of 2008 began with the rapid decline in housing prices, increased interest rates, and the increase in subprime lending which lead to a growing rate in mortgage foreclosures. The subprime mortgage crisis has affected various financial institutions and banking systems across the world in various ways. With the fall of large financial institutions such as, Fannie Mae and Freddie Mac, Lehman Brothers, Merrill Lynch, and American International Group (AIG) the Federal Reserve have responded in an attempt to relieve the crisis of the credit markets. The fall of financial institutions has created a domino effect on the economy. Thus, there is very little that the Federal Reserve can do to avoid the collapse of other financial institutions. In addition to affecting the financial institutions, the financial crisis has affected accountants in various ways. Although the global financial crisis has affected overall businesses in a negative aspect, the effect on accountants haven’t been as negative.

Ethics and high morality are in high demand today especially among corporate America, and specifically within the accounting profession. After the ethical failures of Enron and WorldCom, a public outcry for future preventative measures resonated throughout the American Institute of Certified Public Accountants (AICPA), and the accounting community at large. Consequently, the Securities and Exchange Commission (SEC), the overseeing government board of the AICPA, released the Sarbanes-Oxley Act of 2002, otherwise known as SOX. The act requires a higher performance standard for accounting firms and the audits they perform to prevent future accounting scandals. SOX, which has been extremely beneficial, doesn’t change the ethical standards of an individual but instead takes away most of the opportunity to commit a scandalous act. The basic character of the fraudulent individual remains corrupt, even with legislation in place. The question is then posed: Can ethics be taught, and if so, what accounting or business ethics courses are available? The answer is not ironclad as the word ethics describes the morality of an individual, which is hard to measure. There are also very limited courses offered on ethics, however ethical education should be a required course in college and a prerequisite to new employment for all accounting firms.

Ethics and high morality are in high demand today especially among corporate America, and specifically within the accounting profession. After the ethical failures of Enron and WorldCom, a public outcry for future preventative measures resonated throughout the American Institute of Certified Public Accountants (AICPA), and the accounting community at large. Consequently, the Securities and Exchange Commission (SEC), the overseeing government board of the AICPA, released the Sarbanes-Oxley Act of 2002, otherwise known as SOX. The act requires a higher performance standard for accounting firms and the audits they perform to prevent future accounting scandals. SOX, which has been extremely beneficial, doesn’t change the ethical standards of an individual but instead takes away most of the opportunity to commit a scandalous act. The basic character of the fraudulent individual remains corrupt, even with legislation in place. The question is then posed: Can ethics be taught, and if so, what accounting or business ethics courses are available? The answer is not ironclad as the word ethics describes the morality of an individual, which is hard to measure. There are also very limited courses offered on ethics, however ethical education should be a required course in college and a prerequisite to new employment for all accounting firms.

Ethics and high morality are in high demand today especially among corporate America, and specifically within the accounting profession. After the ethical failures of Enron and WorldCom, a public outcry for future preventative measures resonated throughout the American Institute of Certified Public Accountants (AICPA), and the accounting community at large. Consequently, the Securities and Exchange Commission (SEC), the overseeing government board of the AICPA, released the Sarbanes-Oxley Act of 2002, otherwise known as SOX. The act requires a higher performance standard for accounting firms and the audits they perform to prevent future accounting scandals. SOX, which has been extremely beneficial, doesn’t change the ethical standards of an individual but instead takes away most of the opportunity to commit a scandalous act. The basic character of the fraudulent individual remains corrupt, even with legislation in place. The question is then posed: Can ethics be taught, and if so, what accounting or business ethics courses are available? The answer is not ironclad as the word ethics describes the morality of an individual, which is hard to measure. There are also very limited courses offered on ethics, however ethical education should be a required course in college and a prerequisite to new employment for all accounting firms.

           If you are an accounting student, you picked the right field of business!  Especially now a days when the economy is struggling, unemployment it rising, and it is getting harder and harder to find a job.  Compared to all the other business fields, accounting has the most job availability, and the best job security.  It has the best job availability because there is much more work for accountants since the Sarbeans Oxley Act, which requires publicly traded corporations to file much more reports and paperwork to the SEC.  The Sarbeans Oxley Act was passed in 2001 after the Enron scam, and requires more filings from public companies to make sure they are not committing fraud of any kind that could affect its employees and shareholders.  If you are graduating now with a degree in finance, good luck to you!  Finance majors are struggling because of the failing economy and it is much harder for a finance major to find a job fresh out of college then it is an accounting major.