Are you considering starting a career in accounting in Canada? Do you want to find a degree in accounting so you can specialize in areas such as finance or commerce? Do you want to work as a Bookkeeper? Accounting in Canada is a highly regulated and broad field. However, many Canadian certifications can help you specialize in a specific area within the accounting field. Discover everything that involves accounting in Canada! Perhaps it may be the ideal career path you are looking for!

Financial accounting
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Let's start with the basics: What is accounting?

Although there are many definitions of accounting, we can summarize that it refers to everything that involves keeping and analyzing financial records. That simple! It is crucial to know in what situation a company or organization is standing and, through precise documentation, establish the necessary strategies to create wealth.

Let's take a creative example. Suppose you love to eat pizza, and you are presented with the opportunity together with some friends to start a pizza restaurant. What a fantastic option, right ?! And you decide to get to work!

You establish the budget to buy all the ingredients to make the perfect pizza, such as the tomato sauce, the cheese, the vegetables, and of course, the dough. Then you realize you also need to find an appropriate space to prepare them with an oven, a fridge, and electricity for cooking. And why not? You decide to hire people to help you prepare all the pizzas!

But you realize that neither you nor your partner is good at numbers. When you were calculating the individual price of the pizza, you forgot to consider the extra expenses, such as the suppliers' payment, the rent, the maintenance of the oven, and the salary of the people you just hired! Now you feel more pressure because you have also just remembered that you must start paying the bank the interest on the loan you took out to rent the restaurant. And you lose your mind!

Putting this stressful situation aside, all of this would not have happened if you had hired an accountant. As you can see, any business needs to keep track of all the purchases made, the manufacturing and production costs, taxes payments, among many other things to consider. Well, accounting is in charge of all of these and more!

As you can see, accounting is an essential resource to manage the expenses and income of a company, no matter if it is large or small. Any company that develops its activity and carries out purchase, sale, or financing operations will always go through profits or losses. To analyze everything that happens in between, you can always lean on accounting!

Which are the objectives of accounting?

Within the scope of accounting, some of the fundamental objectives that stand out are:

  • Interpret the past situation to make better decisions in the company.
  • Satisfy stakeholders, lenders, and public administrations.
  • Analyze the economic resources of a company.
  • Allow correct planning and direction of transactions.
  • Control the management of the company.
  • And last but not least, create wealth! 

Have you ever heard of an international business with no accounts team? Of course not! Have you ever come across a small business with no accountant to manage its finances? We don't think so! As you can realize, the accounting department is the backbone of businesses!

learning about accounting
"As an accountant, you will be in charge of analyzing the economic resources
and planning the direction of transactions". Source: Media Library.

What exactly does an Accountant do?

Among the main tasks of Accountants is to analyze and provide reliable information about all company's financial records. Accountants have the opportunity to work in various areas of the financial sector, including taxation, financial reporting, forensic accounting, corporate finance, auditing, business recovery, and insolvency, or accounting systems and processes, among many others.

The typical daily tasks of an accredited accountant in Canada could include:

  • The management of financial systems and budgets using spreadsheets and accounting programs;
  • Undertaking financial audits: i.e., an independent check of the company's financial position and verifying how it is reported.
  • Liaising with clients to provide financial information and advice.

However, no matter what area of ​​accounting you pursue, as a general rule, you will be governed by generally accepted accounting principles. Let's get deeper into this one!

Generally accepted accounting principles in Canada (GAAP)

The Generally Accepted Accounting Principles provided all the guidelines, conventions, rules, and procedures related to accounting. The GAAP rules and procedures typically define the accepted practice within the accounting profession. And the Canadian Public Accountability Board/Conseil Canadien Sur la reddition de Comptes (CPAB) is responsible for regulating and auditing the accounting principles and financial reports. 

The GAAP is founded on principles to promote reliable financial reports, the main are:

  • Principle of Regularity: Ensures that every accounting professional follows all GAAP guidelines.
  • Principle of Consistency: Ensures following the same rules throughout the accounting process to better understand all financial statements.
  • Principle of Sincerity: Accountants must follow an honor code since they get to know all the company's finances.
  • Principle of Permanence of Methods: Ensures to follow the accounting methods using similar methodology.
  • Principle of Non-compensation: Ensure that accountants communicate all positive and negative aspects of the financial statements.
  • Principle of Prudence: This principle ensures that accountants will not be able to carry out any speculation.
  • Principle of Continuity: Accountants assume that the business will continue operating and evolving through this principle.
  • Principle of Periodicity: Accountants ensure fair reporting for all revenues, losses, and other changes recorded when they were received.
  • Principle of Good Faith: This principle ensures accountants must communicate everything going on with the financial status.
  • Principle of Utmost Good Faith: Accountants must be honest and adequately manage information.

Also, it's important to mention that in Canada, the Chartered Professional Accountants of Canada (CPA Canada) is the leading source of Canadian GAAPs.

If you feel curious, find more golden rules of accounting here!

"Get to know everything about Accounting Certifications in Canada." Source: Media Library.
The best Accounting tutors available
Huzefa
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5 (17 reviews)
Huzefa
$40
/h
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1st lesson is free!
Josh
4.9
4.9 (12 reviews)
Josh
$70
/h
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1st lesson is free!
Nilima
5
5 (25 reviews)
Nilima
$28
/h
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1st lesson is free!
Ritika
5
5 (5 reviews)
Ritika
$40
/h
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1st lesson is free!
Fuad
5
5 (16 reviews)
Fuad
$30
/h
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1st lesson is free!
Jayanti
5
5 (19 reviews)
Jayanti
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/h
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1st lesson is free!
Karen mae
4.9
4.9 (13 reviews)
Karen mae
$30
/h
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1st lesson is free!
Peter
5
5 (4 reviews)
Peter
$25
/h
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1st lesson is free!
Huzefa
5
5 (17 reviews)
Huzefa
$40
/h
Gift icon
1st lesson is free!
Josh
4.9
4.9 (12 reviews)
Josh
$70
/h
Gift icon
1st lesson is free!
Nilima
5
5 (25 reviews)
Nilima
$28
/h
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1st lesson is free!
Ritika
5
5 (5 reviews)
Ritika
$40
/h
Gift icon
1st lesson is free!
Fuad
5
5 (16 reviews)
Fuad
$30
/h
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1st lesson is free!
Jayanti
5
5 (19 reviews)
Jayanti
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1st lesson is free!
Karen mae
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Karen mae
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Peter
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What is Chartered Professional Accountants of Canada (CPA Canada)?

A CPA, or Chartered Professional Accountant, is a certification that shows that a financial advisor is reliable and professional and has all the knowledge to advise any person, business, and organization to plan and achieve their financial goals.

So the question is: If you study accounting, do you also have to obtain the CPA certification compulsorily? If you're looking to study accounting and plan to get the CPA certification, this could be a great idea as it can open up tons of job opportunities for you! 

For example, would you like to work in a company's management area and become a Chief Financial Officer (also known as CFO) and Chief Executive Officer ( also known as CEO)? Would you like to be able to work with well-known celebrities and famous actors? Well, then getting the CPA certification is for you! Or, do you want your life to be full of adrenaline and that the FBI recruits you to investigate criminal fraud?

The CPA is highly valued in the accounting world and symbolizes professionalism. With this certification, you can professionally evolve in any company that interests you, or even for the Canadian government. Ready to go for the CPA and excel in your accounting career?

As you see, working as an accountant can be very rewarding since you can have an exciting professional path, with many opportunities for growth and a reliable, varied, and well-paid job, especially in Canada. A career in accounting can open many professional doors for you!

Fun fact: Did you know that by working as an Accountant in Canada, you can expect to earn $56,042 per year or $28.74 per hour? While most experienced workers can expect to earn up to $75,032 per year?! Although we know that you should not select your professional career concerning the money you hope to earn, having an idea about the average salary is always recommended.

Do you want to know what skills you need to develop to become an accountant?

Get to know the Eight skills you have to develop as an Accountant!

Accountants must develop several professional skills since they can work in different fields. For example, they need to have the capacity to create different strategies to work under pressure, and above all, feel extremely comfortable with numbers and analytical reasoning.

However, if you plan to study accounting and do not have some of these characteristics, do not worry! Over time, you will develop the essential skills that every accountant should have. What better way than knowing what you need beforehand! But let's not get ahead of ourselves! Let's see point by point:

  1. An accountant is a leader: The accountant is a figure who needs leadership skills since it is necessary consistently to achieve the established goals promptly.
  2. Responsibility: An accountant must assume a role of professional commitment and confidentiality since they are in charge of handling sensitive information and are the central axis between investors, financial institutions, and clients.
  3. Negotiation: An accountant must establish labor agreements efficiently with organizations, companies, and shareholders, among many others.
  4. Logical reasoning: To be an excellent accountant, you must have a good capacity for logical reasoning. You must be a lover of numbers! Developing a logical rationale will allow you to analyze and understand a company's current state and find the appropriate problems and alternatives.
  5. Acquisition of technical knowledge: Because an accountant must intervene in the evaluation of projects and the financial analysis of public and private companies, they must be aware of all the regulations and standards established in the field of accounting, as well as Canadian regulatory organizations. Understanding accounting practices and abiding by the generally accepted accounting principles is a must for anybody working at accounting firms in the corporate and public accounting worlds.
  6. Teamwork: This point is not only focused on accounting careers, but we consider it very important to take it into account. The workplace comprises many people with different profiles and who come from diverse backgrounds. Therefore, it is essential to have excellent interpersonal skills to achieve harmony and effectiveness in the workplace.
  7. Information synthesis: If you want to be a good accountant, you must know how to synthesize information and know-how to prioritize. Completing information to make it understandable is a fundamental skill in accounting.
  8. Honesty: Well, perhaps this point was obvious, but in accounting, and any other profession, one of the most valued characteristics is honesty, especially when you will be in contact with entirely confidential information.

These are some of the qualities and skills that a person interested in becoming an accountant must-have. If you comply with most of them, do not think twice! Perhaps accounting is the ideal career path for you!

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Which are the main types of accountancy?

Do you want to know the types of accounting that exist? See below what is involved in working in the different areas of accounting!

  • Management accounting: Management accountants work internally to provide financial information and conduct better decision-making and company maintenance. A management accountant may perform tasks such as budget analysis, financial planning, and forecasting. Also, management accounting emphasizes planning, achieving financial goals, and planning finances based on budgets.
  • Financial accounting: Financial accountants provide information to external bodies, such as shareholders, investors, and creditors. Financial accountants focus more on summarizing the current economic situation of a company, providing critical information such as profitability, liquidity, solvency, and stability of the company. Unlike management accounting, financial accounting is a legal requirement, while the former is not mandatory.
  • Fiscal Accounting: A tax accountant focuses mainly on the main audit criteria established by law. It is also responsible for regulating and controlling how accounting records are made in the company. Tax accounting is used to make decisions and calculate and declare the payment of taxes to the state, and provide financial, economic, and budgetary information to public institutions.
  • Cost accounting: This type of accounting is responsible for classifying, distributing, and compiling all the information about the costs incurred in the company. In addition, it is in charge of analyzing the possible expenses that may arise in the future. Cost accounting is the one to evaluate the proceeding of each payment derived from the organization in each department.
  • Public accounting: is used to analyze financial information and carry out financial, economic, and social control of state entities through the management of public resources. A Public Accountant is a financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals.

The most awaited moment has arrived! Ready to put your brain to work and brush up on general accounting concepts?

Know the general concepts of accounting having fun!

Instructions of the Game! Select the correct answer that completes the meaning of general accounting concepts.

Dividends Depreciation  Auditor Bank overdraft
Profit Cash flow Bonds Deferred revenues
Equity Financial accounting Shareholder Balance Sheet
  1. F________________ A________________ is a type of accounting that is in charge of the documenting, summarising, and reporting the transactions. Its main objective is to reveal the profits and losses of the business.
  2. An ________________ is an individual who examines the accuracy of financial records of a business to produce a report. They can review and verify that the company complies with tax laws.
  3. The________________ is one of the most essential financial statements of a company. It includes assets, liabilities, equity capital, total debt and reflects the economic status at a certain time. One of the core financial statements that evaluate a business.
  4. The ________________ can be issued in various ways, such as cash payment, stocks, or any other form, and its a reward the company offers to its shareholders. However, is not obligatory for a company to pay them.
  5. The________________ are debt securities issued by private and public corporations.
  6. We say we are in ________________ when the money is withdrawn in excess in a bank account. That is to say, the balance drops below zero.
  7. The ________________ is defined as the diminution in the utility or value of an asset through its life expectancy. It is calculated by subtracting the asset's salvage value from its cost to determine this amount.
  8. The________________ refers to the net amount of cash and cash equivalents being transferred in and out of a company. There are three types of them, the one from operating activities, the one from investing activities, and the last one from financing activities.
  9. In accounting, we say we made ________________ when the revenue remaining after all costs are paid. Its obtained after the expenses and liabilities are deducted.
  10. Are four types of liabilities: Accounts payable, mortgages, accrued expenses and ________________ .
  11. The ________________ refers to the ownership of assets that may have debts or other liabilities attached to them. It is measured for accounting purposes. The word sounds similar to "Equity".
  12. A ________________ is a person, company, or institution that owns at least one share of a company's stock, known as equity.
Accounting
"Learning accounting concepts will be very useful for your career".Source: Unsplash.

Are you thinking about tutoring to learn Accounting?

Have you thought about looking for private classes to learn accounting? Private tutoring can help you if:

  • You are interested in learning more about accounting and accounting institutes,
  • You want to get deeper into the general concepts of accounting, 
  • You want to get better prepared to pursue a Bachelor's Degree, 
  • You are looking to get better informed about how accounting works in Canada. 

Thanks to all the educational platforms that we have access to today, such as Superprof, you can find great accountants who can give you the best private classes in accounting in Canada. You determine the limits! With a private tutor, you can clarify doubts about your professional path or even review how to make a balance sheet for an upcoming exam. 

Most accounting courses will cover the fundamental basics of accounting. Still, through private tutoring, you will be able to know all these concepts and an opportunity to guide your professional path better.

If you want to find the best private accounting teacher, give Superprof a chance! Our platform is present worldwide, and no matter where you are in Canada, we are sure that with Superprof, you will find the best private tutor closer to where you live! Learning to account or delving deeper into the real accounting world has never been easier! Check for online accounting courses here!

Be part of a global community of tutors and students with Superprof! Are you ready to be part of a community of over 3 million students? And the best is that it is too easy! Enter the official site of Superprof Canada and discover more than 300 accounting tutors!

Do you have a social phobia? You can opt for online classes! Do you need to have contact with people? Select the option of face-to-face classes! Some days you have the motivation to leave your house and others you prefer to stay relaxed accompanied by the heating? You can select a hybrid learning style!

Superprof is an excellent option to find the best private tutors in accounting, and that can be adapted especially to what you need! In addition, on the platform, you can find many more disciplines! Are you thinking of taking French pastry classes? Would you also like to learn to speak Italian like a native? Are you feeling very stressed lately and need yoga classes and postures against muscle tension? Do not wait more! Everything you are looking for can be found with Superprof! You just have to start your imagination and creativity! Be ready to have the most exciting learning experience!

And due to that, we are very friendly in Superprof, here you have the answers to the general concepts of accounting!

  1. Financial accounting
  2. Auditor
  3. Balance Sheet
  4. Dividends
  5. Bonds
  6. Bank overdraft
  7. Depreciation
  8. Cash flow
  9. Profit
  10. Deferred revenues
  11. Equity
  12. Shareholder
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