We have all heard about accounting, and we probably all know someone working in business accounting, but are you aware of what an accountant does day by day and what their line of work entails? Perhaps you haven't discovered yet that accounting is the perfect career path for you! Let's take a quick look! We assure you that you will be more than informed!
How can we define Accounting?
Let's start from the very basics. How can you define accounting when it is such a broad field of business?
Accounting allows recording the economic events carried out in a company and knowing the financial and economic status, mainly to make informed decisions about the company. It is a process to identify, record, measure, classify, verify, and communicate the financial status. It shows the profit or losses for a period and the value and nature of a firm's assets, liabilities, and owners' equity. As you can see, accounting in a company is extremely important for the participating partners, investors, suppliers, and the company's survival. Accounting is the backbone of a firm! It will always reflect the current state and allow better decision-making based on financial information, identifying its strengths and areas of opportunity.
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Having accounting knowledge is more critical than you thought, right?
To sum up, accounting gives information on:
- The resources available for a company,
- How the company employed to finance those resources, and
- The results they got through the use of these resources.
Now let's try to see how your accounting knowledge is with this Trivia Game! And do not worry, there is no school mark here!
Trivia Game: Introduction to Accounting!
Choose the correct answer regarding the main concepts and test your knowledge in accounting. Good luck! And... ready, set, GO!
1. What is the goal of Accounting?
- a. Report financial information about the performance of a company.
- b. Take decisions to manage the business better.
- c. Manage the profit and loss of the business.
2. What does profit mean?
- a. Represents a loan made by an investor to a borrower.
- b. The difference between the amount earned and the amount spent.
- c. Represents the amount of money that would return to shareholders.
3. What are the types of financing for companies?
- a. Direct costs involved in manufacturing products.
- b. Debt and equity.
- c. Bank overdraft.
4. Which option represents one of the leading financial statements in accounting?
- a. Balance sheets
- b. Income statements
- c. Cash flow statements
- d. Statements of shareholders' equity
5. Liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, and accrued expenses.
- a. True
- b. False
6. What is an asset?
- a. Everything a company owns.
- b. Everything a company owes.
- c. Everything a company expects.
7. What is equity in accounting?
- a. The most liquid asset a company can possess.
- b. The most solid asset a company can possess.
- c. Represents the shareholders' stake in the company.
8. What is a bond?
- a. Represents a loan made by an investor to a borrower.
- b. Occurs when money is withdrawn or reaches zero on the current account.
- c. Refers to a decrease in net income outside the business's everyday operations.
Now that we have made you hesitate a bit let's go over some types of accountancy that will be very useful to know if you want to start your path towards accounting or a related field.
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Types of accountancy: Discover all the Possibilities!
There are many types of accounting, as you might expect. Within everything that involves accounting in a company, we will be able to find several branches of specialization, and these will depend on the needs of the company. Let's go over some of them so we don't get lost along the way!
- Financial accounting: This branch of accounting is used mainly to obtain, analyze and prioritize quantitative information through profit and loss. Financial accounting is fundamental since we can keep a record of our company's financial situation and make better decisions for the future. It is always necessary for investors and public entities to be informed about its status. Financial accountants focus more on the act of summarising a company's current financial position, reporting on crucial information like the company's profitability, liquidity, solvency, and stability. Unlike management accounting, financial accounting is mandatory by law.
- Tax accounting: This type of accounting is based mainly on the fiscal criteria established by law to declare and pay taxes. If you don't know these concepts, we can say that tax accounting is used to calculate the payment of taxes to the state. Tax accountants are the financial experts who understand all the government rules and regulations that determine the amount of money owed to federal, state, or local agencies.
- Management accounting: This type of accounting is responsible for analyzing and interpreting financial information to make short-term decisions. But generally, it is to evaluate the internal use of resources and establish new strategies. A management accountant might perform budget analysis, financial planning, and forecasting. They focus on forward-planning, for example, achieving financial goals based on budgets.
- Cost accounting: Sometimes also known as analytical accounting, its objective is to use financial information to evaluate the cost of manufactured products, labor, materials, and indirect expenses, to carry out production and sales. A cost accountant typically oversees the preparation of organizational budgets, operational costs, and purchasing.
- Public accounting: It 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.
So if you are beginning to be interested in accounting, you can already carry out a more detailed investigation to start your professional career in financial accounting or work in public accounting, for example. Take advantage of all the tools you have access to today!
Accounting: Get to know all the Professional Paths!
If you study accounting, you will discover a wide variety of career paths. Join us to learn the main ones within the accounting area!
- General Accountant: A general accountant prepares, analyzes, and maintains financial records. Accountants typically work for a company, managing their finances. They might perform various tasks, including managing their payroll, taxes, and liabilities.
- Auditor: If you work as an auditor, you will be in charge of verifying the company's accounts and reflecting an actual image. You will analyze the annual accounts and issue a report that shows all the financial statements. You make work, control, and risk projections to have a deep understanding of the company's operation. And the most interesting: Also, you will identify possible drawbacks and inconsistencies! You will have to have the profile of a multitasking person!
What is the difference between an auditor and an accountant? The first one prepares, analyzes, and manages financial records just like an accountant. But auditors typically work for an accounting or payroll service rather than one particular company. Generally, an auditor checks the work performed by a company's accountant and helps multiple companies deal with their finances. Voila!
- Management Accountant: A management accountant generally knows to account, manage business strategies, and assist in decision-making. Among the primary responsibilities, they supervise the implications to help its growth and generate profits. A management accountant profile seeks attention to detail, problem-solving, and good analytical and communication skills.
- Finance Manager: They are responsible for providing strategic direction and development plans to promote increased profits and reduce risks. Extensive knowledge of financial analysis, taxation, treasury, business development, and planning is required.
- Financial Analyst: A financial analyst evaluates the financial data and projects to see if an entity is an excellent investment option. Financial analysts might recommend a particular bank, company, or various investors about investing in a specific company.
- Group accountant: These accountants play a crucial role in international companies, ensuring that the company is in order and follows the correct accounting procedures. Group accountants prepare financial statements and provide financial information to assist in decision-making regarding the profitability and performance of the business.
- Business Analyst or Commercial Analyst: A business analyst interprets and monitors business needs to implement solutions. Good analytical knowledge and problem-solving skills are required.
- Controller: This one is responsible for accounting activities. They prepare financial statements and budgets, process data, and organize payments for taxes. The controller typically reports to the chief financial officer (CFO).
As you can see, when studying accounting, you can choose a wide variety of professional paths. The most important thing is that you determine your professional goals, that you analyze your profile, that you work on your strengths and weaknesses, and above all, that you recognize what you like. Try to keep an open mind to take all the opportunities available! Remember that you can design your career path in the best way for you!
FUN FACT: Did you know that an accountant can expect to earn a minimum of 58,500 CAD per year in Canada? It's amazing everything you can accomplish by studying Accounting! Right?
*Although we know that money is not the most important thing, knowing the average salary could be interesting when choosing a professional career.
How to study Accounting in Canada?
Suppose you are looking for a Bachelor of Accounting in Canada. In that case, generally, you can also find different degrees such as Bachelor of Commerce or even Bachelor of Business Administration with which you can pursue a specialization in Accounting. This Bachelor in Accounting in Canada is usually a full-time program lasting four years.
It is essential to mention that most accounting degrees offered by Canadian universities are accredited by the Chartered Professional Accountants (also known as CPA), which is excellent news! But what does this mean exactly? Chartered Professional Accountants is one of the most crucial accounting organizations globally, very recognized in the business, government, and education sectors. Their main objective is to build a stronger accounting profession.
If you acquire a Chartered Professional Accountants license, you can demonstrate that you have the knowledge and leadership necessary to accomplish the most important job positions. If you are interested in acquiring the Chartered Professional Accountants license, find out more here, you will find everything you need!
Other professional accounting designations in Canada that are also recognized are:
- Chartered Professional Accountant (CPA)
- Certified Management Accountant(CMA)
- Certified General Accountants(CGA)
- Certified Information Systems Auditor(CISA)
- Certified Credit Professional(CCP)
- Certified Payroll Manager(CPM)
- Payroll Compliance Practitioner(PCP)
As you can see, the accounting professions are highly regulated in Canada. If you are interested in knowing what other occupations are regulated in the Canadian territory, you can do a more in-depth investigation here.
Where to Find the Best Accounting Program in Canada?
Some of the universities where you can find recognized Bachelors in Accounting, Master of Commerce, Finance, Business Administration, or International Business where you can pursue Accounting Specialties in Canada are:
- University of Toronto
- University of British Columbia
- University of Alberta
- McMaster University
- University of Waterloo
- University of Calgary
- University of Ottawa
Getting Qualified To Work In Accounting in Canada
This one can be a perfect option for you if you are looking to work as an Accounting technician or bookkeeper. An accounting technician or bookkeeper is in charge of maintaining accounts records, verifying the correct recording of financial transactions, and providing bookkeeping services. You can work for the private and public sectors or work as a self-employed in this area. Accounting technicians and bookkeepers are not regulated professions in Canada, so you don't have to sign up to any regulatory authority to exercise your career.
The Certified Accounting Technician (CAT) is recognized by the National Institute of Accounting Technicians (NIAT) in Canada and focuses on developing good technical accounting knowledge to upgrade your career. The good part here is that it is recognized worldwide in Canada, the United Kingdom, Australia, New Zealand, Europe, Hong Kong, China, Singapore, Malaysia, India, and the Middle East.
So, what is the difference between a bookkeeper and an accountant? A bookkeeper records and classifies a company's daily financial transactions such as sales, payroll, payment of bills, among others. A bookkeeper focuses on an accurate recording. However, accountants are more focused on interpreting all the data and analytics. An accountant builds on the information provided by the bookkeeper.
Survival Tips to Get Into Accounting!
Whether or not you've always dreamt of becoming an accountant, or if you've recently discovered it as a possible professional career for you, perhaps breaking into this field is not easy. But do not worry, because nobody is born knowing what to do in life!
Suppose you do not have much knowledge regarding accounting and all the professional specialties related to it. In that case, start analyzing each of the working possibilities and acquiring skills that could help you in the future. For example, you could start studying the different programs offered by Canadian universities, begin checking the admission requirements, if they ask you to take a language test, or even how to prepare to obtain the Chartered Professional Accountant certification.
Regarding the working world, remember that you cannot start in the job position of your dreams (but if you do it from the beginning, you should know that you have been fortunate!). As a recently graduated accountant, you may have to start at the bottom of every company. But this will be very rewarding since you can begin to know how accurate accounting works day by day. You must always work your way up to achieve your goals!
Each of the decisions you make regarding your career will be a stepping stone to your professional and personal success. Whether it's an internship, a junior administrator position, or an accounting assistant, learning the right skills and contacts you'll need for your future is priceless! Learning on the job can be the fastest way to acquire the skills you need, so if an exciting opportunity arises, don't hesitate to take it!
Private tutoring to learn Accounting?
Have you thought about taking private classes to start you on the accounting path? If you think about it, it could be an excellent idea! What better option to learn everything about accounting and become familiar with each of the general concepts than with a private teacher! Get ready to enter your preferred Bachelor's degree!
But hold on a sec! Are you already studying accounting and have exams coming up? No problem! You could better prepare yourself with private tutoring to pass your CPA certification or even seek extra school support to excel your marks at school! It will be easier for you to understand how to build a simplified balance sheet or learn the best techniques to evaluate an inventory if an expert accountant accompanies you through private tutoring.
Through private accounting tutoring, you will be able to:
- Understand general, financial, or management accounting, for example.
- Clarify your professional goals.
- Determine what skills you need to develop.
- Better prepare for any exam or certification.
- Learn in the most exciting way possible!
Are you ready to become an expert with your calculator and Microsoft Excel? It's time to bring out the accountant inside you! A good accounting tutor can help you develop critical and analytical thinking and find the best strategies to learn to solve an accounting problem. But, where to find the best accounting tutoring in Canada? Get to know Superprof!
Superprof is a global and accessible platform where you can find the best accounting tutors (or tutors in anything) closest to you, no matter where you are in Canada!
Superprof offers you the online or face-to-face modality depending on your needs, and you can always choose the private tutor that suits you best! Do you want to be sure you select the correct tutor? Please take advantage of the free try-out class to learn about their way of working and personality. Find your better half of accounting!
Using Superprof is easier than you think! Enter the official website of Canada and discover thousands of private teachers ready to help you with your accounting classes! You can choose that you want to study business accountancy, or general accounting, for example. Then, don't forget to enter your location to get the most accurate results.
Check here to know the best online accounting courses in Canada, and remember that the world belongs to those who take opportunities. Welcome to the Superprof family!
If you are falling in love already with accounting and you want to know everything about it, learn about the generally accepted accounting principles!
But before we go, here are all the answers to the Accounting Trivia! Thanks for your participation and we hope you didn't cheat!
- The correct answer for "What is the main goal of Accounting?" is all the above!
- The correct answer for "What does profit mean?" is B "The difference between the amount earned and the amount spent."
- The correct answer for "What are the types of financing for companies?" is B "Debt and equity".
- The correct answer for "Which option represents one of the main financial statements in accounting?" is all of the above!
- The correct answer for "Liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, and accrued expenses." is A: True!
- The correct answer for "What is an asset?" is A "Everything a company owns."
- The correct answer for "What is equity in accounting?" is C "Represents the shareholders' stake in the company".
- The correct answer for "What is a bond?" is A "Represents a loan made by an investor to a borrower".
See you soon, future Canadian accountant!
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