For many, the definition of accountancy is a career that deals with the measurement, disclosure, and communication of information about financial transactions.

The main accountancy definition, put in simple terms, is to keep a company's financial records and maintain its budget. To fully define accountancy, you need to be informed about the processes involved in this career. That is why this article exists. Whether you are interested in accountancy as a side hustle or a mainstream source of income, keep reading.

Common Facts About Accountancy

• Accountants work in many sectors within finance.

• They are professionals who provide services to businesses and organisations, such as preparing financial reports or advising on tax law.

• There are different types of accountants, including Public Accountant, Corporate Accountant, and Personal Accountant.

Why Accountancy Matters

There are many reasons why accountancy matters, like it helps businesses familiarise themselves with their finances. In addition, it provides a professional and ethical service. For example, an accountant gives advice on taxes or managing budgets to avoid overspending.

Who Qualifies for Accountancy?

To qualify for accountancy, you need a qualification to help you be knowledgeable enough to advise on tax law or prepare financial reports. 

Training For Accountancy

If you want to qualify as a professional accountant, you must go through the proper training before trying your luck on the job market or starting your own business.

Recording Accountants' Work

Accountants have a lot of information to keep track of while preparing financial reports or advising on tax law. Therefore, they use many tools to record all this data and make it easier to understand what you need to do next. Some different types of accountancy software can do just that, such as:

• Bookkeeping - for tracking expenses and incomes, payroll accounting, invoicing, inventory management.

• QuickBooks Online - for small businesses and self-employed people who want to automate their bookkeeping. It includes features like time tracking and project billing.

• Quicken - the personal finance software that helps you get a better grip on your money while simplifying your life.

Classification of Accountancy

You can classify depending on the type of organisation or business that it provides services to. Some examples are:

• Public Accountant - providing financial and accounting advice for public bodies, such as governments, schools, and hospitals.

• A Corporate Accountant visits companies about their finances, and reporting accountants are just one part of this team.

• Personal Accountant - providing financial advice for individuals and small businesses, like helping them understand their taxes or get a mortgage.

Financial Reporting and Accountancy Services

Financial reporting and accounting services are a big part of what accountants do, as they provide information to help companies understand their finances.

The Financial Accounting Standards Board (FASB) creates standards around how financial statements should be prepared and reported on to create consistency across businesses. These standards are also known as Generally Accepted Accounting Principles, or GAAP in short.

Accountants provide financial information to companies by creating reports like balance sheets and income statements that disclose the company's financial position at a certain point. Financial reporting is essential for accountancy services because it helps businesses report their performance to shareholders, investors, and other interested parties.

In conclusion, accountants have many different tasks to do, and they use many tools to get the job done.