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Government Accounting Essay Sample

Government Accounting Pages
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1) Report about different careers:

A. GOVERNMENT ACCOUNTANT

A government accountant helps the federal government, as well as state and local agencies – record and prepares financial reports in accordance with government accounting principles and professional standards. An accounting specialist also aids federal authorities in evaluating budget data, estimating revenue and expense levels, and adjusting social programs.

Based on theories:
Advantages:
* Challenging, Rewarding and Fulfilling Work
* Excellent Benefits
* Job Availability and Demand
* Competitive Salaries
* Career Progression

Disadvantage:
* Without solid government accounting experience, it’s almost impossible to progress to a senior management level.

B. GOVERNMENT AUDITOR

Government accountants and auditors maintain financial records for government agencies, and audit businesses in the private sector that are subject to government taxation or regulation. They make sure revenues due to Federal, State, and local governments are received. They also ensure expenditures are made in accordance with laws and regulations. Some are employed by the Federal government and work for the Internal Revenue Service. Others work in the government areas of financial management, financial institutions examination, or budget analysis and administrations. Based on interview:

Advantages:
* “You can all day from 8 am – 5 am of work and no night shifts for me so I can have enough rest to start on the next day; On weekends I am OFF that’s why I can be able to spend more time with my family and salary wise, very much enough to provide my family what they need.” – Mrs. Vitto, (Government Auditor, COA)

Disadvantages:
* “Of course there are times that we have to be shuffled from different places and we didn’t have any choice but to agree to where they want us to be, it is an disadvantage because we have to adapt again to different situation because the nature of our work depends on how big or developed that place is… for example I was assigned before to audit in Tanauan for almost a year, I was used to that place and the work and eventually we are assigned to Sto. Tomas which was a big town because of so many barangays integrated within Sto. Tomas. It was very difficult because we really have to meet the deadline for us to finish our Auditing for Sto. Tomas and sometimes we even have to visit each barangay to make sure that every funds are allocated appropriately to all their needs.” – Mrs. Vitto, (Government Auditor, COA)

C. FINANCIAL ACCOUNTANT

Financial accountants control the financial management systems of a business. Their role in a company is to extract and interpret information from financial records, advise on strategic direction, advise managers on daily financial decisions of a company, advice the board of directors, control the working capital of a business, ensuring that information with regard to debtors, creditors and stocks is maintained.

The exact duties that a financial accountant may be required to perform would depend on the professional’s area of specialty. For example, a financial accountant may choose to specialize in internal auditing, management, public accounting or government accounting.

Regardless of the area of specialty, the primary responsibility of a financial accountant is to provide their client with financial guidance.
This may include assisting with budgeting and developing financial plans, but may also include monitoring budgets and taking care of taxes on behalf of the client.

Based on theories:
Advantages:
* Like management accountancy, this area is a good entry route for a newly qualified accountant looking for their first role in a commercial environment. The main difference between the two roles is that financial accountancy is better suited to those with a real enthusiasm and excellent knowledge of accounting standards and processes. In larger organizations you will almost certainly be based at head office, so the role can offer early opportunities to be noticed by senior management.

* Because this role is concerned with the results for the whole organization it offers an excellent overview, giving fantastic exposure to the heart of a company’s accounting functions.

Based on interview:
Advantages:
* “Masaya, I’m doing what I want. This is not a job for me. I call this passion. Hehehehe! Wala akong makitang disadvantage.” – Franz Kleven Claracay, (financial accountant at Victory Calamba)

* “More experience. You can apply your knowledge gain during undergrad and see the true meaning of bookish concepts. Dami kong new knowledge na nagain kahit pagod lagi.” – Myrnaliza Ramiro (financial accountant at Fujitsu)

Disadvantages:
* “Mababa (sahod) kapag wala pang experience. Stressful. Adjusting to new environment and so many deadlines. Every hour, every week and every month.” – Myrnaliza Ramiro (financial accountant at Fujitsu)

D. FINANCIAL ANALYST

Writing reports or notes expressing opinions is always a part of “sell-side” (brokerage) analyst job and is often not required for “buy-side” (investment firms) analysts. Traditionally, analysts use fundamental analysis principles but technical chart analysis and tactical evaluation of the market environment are also routine. Often at the end of the assessment of analyzed securities, an analyst would provide a rating recommending an investment action, e.g. to buy, sell, or hold the security.

Based on theories:
Advantage:
* Typical benefits include paid vacation, sick leave, and health insurance. Some employers also provide a retirement plan.

Based on interview:
Advantages:
* “Mas malawak ang experience na nakukuha dahil sa iba-ibang lugar kami naa-assign.” – Carlo E. Regalado (Financial Analyst at San Miguel Brewery)

Disadvantages:
* “Napapadala kami sa malalyong lugar. Gaya ko nasa Lucena ako ngayon.” – Carlo E. Regalado (Financial Analyst at San Miguel Brewery)

E. TAX SPECIALIST

A tax specialist typically acts as a liaison between taxpayers and state, local or federal governments that collect a citizen’s taxes. They assume a variety of responsibilities, from overseeing and entering tax returns to determining the effectiveness of taxing systems already in place. Tax specialists earn a higher-than-average median wage and experience a fair amount of job security, but are not expected to see much job growth in the upcoming decade.

Based on theories:
Advantages:
* Higher-than-average median hourly wage as compared to the national average of all occupations * Higher salary opportunities are available at the federal government level * Generally experience little or no change in employment, even with government budget cuts, due to the need for civilian tax enforcement * Can advance to higher-paying positions with work experience, such as revenue agents

Disadvantages:
* Slower-than-average growth (7% increase) between the years of 2010 and 2020 as compared to the national average of all occupations (14% increase)

* Need to work well under pressure and time constraints

* Might be required to continue their education in order to stay current with new laws and regulations

* Some tax specialist positions require previous work experience in the field

F. MANAGEMENT ACCOUNTANT

Management accountants provide business data and analysis to managers within organization to assist in business decision-making and control. The focus is on the analysis and reporting of a company’s financial position in order to provide insight into business performance.

Specifically, you will provide the monthly management accounts, and budgets and forecasts to aid business planning. You will also be involved in cost analysis and cost-reduction projects, competitor analysis, variance analysis, tender preparation and review, strategic planning, long and medium term planning, as well as investor appraisal.

Based on theories:
Advantages:

* This is a highly commercial role interacting with different areas of the business. You will not only analyze historical data but will provide information on what the business needs to do going forward to meet expectations. As a result you are very much considered to be a finance business partner and will be expected to offer an opinion on your analysis.

G. INTERNAL AUDITOR

An employee of a company charged with providing independent and objective evaluations of the company’s financial and operational business activities, including its corporate governance. Internal auditors also provide evaluations of operational efficiencies and will usually report to the highest levels of management on how to improve the overall structure and practices of the company.

Based on theories:
Advantages:
* The demand for auditors, both financial and technical (IT) is pretty good right now; audits are part of every business at one point or another, at least on an annual basis.

* You will learn a lot about business processes within an organization — and if you go into consulting, you’ll learn about them at industry level. You will also see first-hand what common risks and process/financial issues exist within corporations and how they are handled.

* Your compensation will probably be better than average, especially with experience.

Disadvantages:
* You’ll often have to deal with the internal politics of an organization, which doesn’t typically welcome audits or value audit functions highly; auditors are frequently perceived as a “necessary evil” rather than a vital asset.

* It may be difficult in the current job market to find entry level positions. Audit work can be tedious and is usually very structured. If you are a particularly creative, trendy, out-of-the-box thinker, the job may become boring quickly.

Based on interview:
Advantages:
* Kasi sa audit kailangan alamin yung operation ng company kung paano ‘yon nagwo-work. Sa audit more on checking. Kasi kapag nasa accounting staff may specific lang ‘yon na ginagawa tapos paulit-ulit lang sa audit mas marami kang pwedeng malaman. Tapos as auditor hindi dapat magre-rely sa gawa ng accountant. Kapag may nakitang mga discrepancy or findings iyon gagawan ng audit report lalo na yung mga non-compliance ng rules & policy.” – Kyrie Joy Consul (Audit Staff at Toyota Alabang Incorporated)

Disadvantages:
* “Disadvantages siguro kung nasa accounting (dept.) ako, kasi mas ngagamit mo yung pinag-aaralan natin kasi doon gumagawa ka ng mga reports tapos nage-entry. Mas maiintindhan doon yung accouting cyle.” – Kyrie Joy Consul (Audit Staff at Toyota Alabang Incorporated)

H. EXTERNAL AUDITOR

An external auditor performs independent, third-party reviews all the financial records of a company or corporation. He evaluates all accounting, payroll and purchasing records, as well as any documents related to investments, stocks or loans. His job is to provide an accurate, unbiased analysis of the company’s financial condition.

The objectivity of an external auditor is imperative for him to be successful. No connection to the company is permitted, as it may be construed as biasing the auditor’s report. This detachment generally means he cannot be a friend or relative of any owner, manager or employee. He must not hold stock in the company or have any monetary stake in any of their subsidiaries or holdings.

To be fair and equitable, an external auditor should familiarize himself with the nature of the business he is auditing prior to starting the job. For example, service industries and consumer goods companies have markedly different expenses as well as disparate methods of calculating profits and losses. Being aware of these differences is important for his conclusions to be accurate and constructive.

Based on theories:
Advantages:
* Provides Validity
External audits provide an objective opinion on a small business; accounting process. Many small business owners do not have an in-depth understanding of accounting principles. They simply prepare accounting information the best they can according to basic accounting rules. Professional accountants can review this information and provide business owners with insight on the accuracy and validity of the accounting information. Valid accounting information can help business owners secure external financing from lenders and investors.

* Discovers Errors
Business owners can use external audits to discover errors in their accounting process. Errors in accounting information may prohibit business owners from making the best decisions. Business owners can also find it difficult to review historical financial information and discover trends if errors are in place. Trends allow business owners to plan future production output and estimate sales for the upcoming months. External audits also ensure business owners are recording financial transactions according to generally accepted accounting principles (GAAP). GAAP is the highest U.S. authority on accounting standards and must be followed when preparing business financial information.

* Limits Legal and Tax Issues
Professional accountants provide business owners with information on the legal and tax issues relating to accounting information. Legal issues arise when business owners provide inaccurate or fraudulent accounting information to lenders, investors and the general public. Business owners are usually liable for not reporting their company’s financial information accurately. Incorrect accounting information can increase a company’s tax liability. Overstating income, inventory value or other items can significantly increase the amount of taxes owed by the company. Small businesses organized as a sole proprietorship also need accurate accounting information since income will be reported on the business owner’s personal income tax return. Inaccurate accounting information can trigger a personal and business tax return audit.

* Educates Business Owner
External audits can help educate business owners on the importance of accounting information in business. Business owners often work closely with external auditors to improve their accounting process. External auditors may provide business owners with information on current accounting issues. Public accounting firms may also provide business owners with free educational seminars to improve their companies’ accounting process. Creating a personal relationship with a public accounting firm provides business owners with professional insight for future accounting questions.

Disadvantages:
* Time
Most companies have to go through a request for proposal, or RFP, process in order to find an external auditor. This procedure can be very time consuming, especially if your organization is already understaffed. You’ll need to interview potential auditors, as well as check their references to ensure that you choose the best person for the job. The overall timeline of sending out RFPs, going through all the responses, setting up interviews and making the final decision may take a month or longer to complete.

* Learning Curve
When you hire an independent auditor, you’ll have to get the person up to speed on your company’s financial and accounting procedures, which may be very complex. According to “The CPA Journal,” this may be a significant disadvantage because if your independent auditor doesn’t take the time to learn about your organization, the overall audit may not be successful. This is because an auditor needs to take many things into consideration when conducting an audit.

* Confidentiality
You will probably have to give your external auditor access to confidential and private information, including internal employee salary information and client billing records. You will also most likely need to give the independent auditor login information to access your internal financial records and database. This may put confidential information at risk, even if you mandate that the auditor signs a confidentiality agreement.

* Money
Wages for an external auditor will typically be higher than the pay rate of an internal accounting employee, as contractors generally charge more for freelance jobs than they would make in permanent positions. If you know that you will need a regular monthly audit on a long-term basis, it may make more financial sense to hire a permanent, internal employee.

Based on interview:
Advantages:
* “Dami kong nakaharap na iba’t ibang tao gawa ng iba iba naman yung clients. Tapos iba-iba din yung nature ng industry nila. Tapos makikita mo talaga paano gumawa ng FS at ITR para sa mga clients.” – Lizanne Yang (External auditor at BDO Alba Romeo)

* “Madaming pwedeng matutunan. Hindi boring kasi madaming ginagawa. Napa-practice talaga ang inaral sa school, kung saan-saan nakakapunta, madaming tao namimeet.” – Kristine Dae Tolentino (External auditor at Pelayo Teodoro Santamaria & Co. CPAs)

Disadvantages:
* “April 15 that time siguro. Deadline na kasi ng mga ITR kahit tentative. Yun kasi yung first deadline ko sa BIR. As in nagmamadali na ang
lahat.” – Lizanne Yang (External auditor at BDO Alba Romeo & Co.)

* “Low salary and too much working hours during the tax season.” – Kristine Dae Tolentino (External auditor at Pelayo Teodoro Santamaria & Co. CPAs)

I. ACADEMICIAN

Teach courses in business administration and management, such as accounting, finance, human resources, labor and industrial relations, marketing, and operations research. Includes both teachers primarily engaged in teaching and those who do a combination of teaching and research.

A job as an Accounting Professor falls under the broader career category of Business Teachers, Postsecondary. The information on this page will generally apply to all careers in this category. We are still seeking more specific information about this career from experts in this field.

Based on theories:
Advantages:
* Able to help others.

* High job satisfaction

* Passing on your knowledge and passion.

* The ability to use my own initiative and be creative.

Disadvantages:
* Paperwork

* Involved in – after school meetings, committees, assisting students, grading homework, assignments, projects, and calling parents – all these demand some sacrifice of personal time.

Based on interview:
Advantages:
* “Everyone respects you.” – Arnel Borja (Highschool accounting teacher)

Disadvantages:
* “Low compensation.” – Arnel Borja (Highschool accounting teacher)

2) What interests you most?

* Being an academician. This is because I teach according to textbooks, and not about reality wherein some accountants may engage into illegal acts like accepting gifts in favor of their clients who are trying not to comply with the accounting standards or moral ethics. Being an academician also gives you the chance of sharing your knowledge to the next generations. You see your contribution on building the strong (because of self-confidence that you are a good role model) foundation on being the future accountants. It may also take full commitment to this profession, but in the end, you feel the satisfaction and self-worth. *

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