• Accounting is a career in which Accountants identify events within an organization.  

• They then quantify these events in dollars and cents so that they can record these as journal entries or notes.

• All this is done under the guidance of Principles of Accounting created by the FASB or Financial Accounting Standards Board.

The Accountant must recognize all economic events:

An Accountant must recognize all events past, current and future that will have an effect on the economic activity of an organization.

For example, if there is a pending lawsuit against a company, the Accountant will at least make a note in the financial statements that this liability exists.

If it is known that a lawsuit will result in payment by the company, then a liability will be set up on the company's balance sheet.


Education needed by an Accountant:

• Accounting usually is done by degreed Accountants who should not be confused with Bookkeepers.

• An Accountant is more highly educated and trained to identify events that must be recorded and to present financial results to management or interested parties.

The importance of accounting shouldn't be underestimated. Without it, no one would really know what a company's financial health was.

With well structured principles and guidance, the Accountant is able to report the economic conditions of a company through the financial statements.

Management and others can then make good decisions about the company.