Nov 06

The strange and confusing world of Canadian accountants

The word “accountant” is not protected by legislation in Canada. Anyone can claim to one. I’ve seen people call themselves a practical accountant, small business accountant, tax accountant, registered public accountant and many other similar names.

To complicate matters there are three accounting bodies recognized by legislation – Chartered Accountants (“CA”), Certified General Accountants (“CGA”) and Certified Management Accountants (“CMA”). They have varying amounts of experience, skill and training. Another organization – The Association of Chartered Certified Accountants (“ACCA”), which is not recognized by legislation, and claims to be the global body for professional accountants, offers their services. There are also thousands of Certified Public Accountants (“CPA”) from the United States and elsewhere.

For a country of about 34 million the accounting landscape is very complex. Contrast this with the United States, with a population of over 300 million, where a single designation is the most prominent – Certified Public Accountant.

Given all the choices how do you pick a Canadian accountant? I’m a Chartered Accountant (and a licensed public accountant in Ontario), and perhaps a little biased, but I believe Chartered Accountants are the best option. Regardless, start first by deciding why you need an accountant. Often the need is to prepare a tax return, help with special tax situations and planning, bookkeeping or just general advice. Then develop an image of the ideal accountant and try to find a match. Get a referral from your banker, a business colleague or friend that uses an accountant or knows one. A referral from a trusted source is one of the best ways to find a good one.

If you are a business owner, and give your financial statements to anyone other than the tax department, you need a licensed public accountant. Almost all public accountants in Ontario are Chartered Accountants but in the rest of the country a public accountant could be a CGA or CMA. If you don’t distribute financial statements, or are not a business owner, you can usually pick an accountant of your choice – licensed or not.

If you come up short check the member directories of the accounting associations. Every professional body maintains a complete list of members and the directory is searchable.

Another way is to search Google. Search for the word “accountant” and the city where you live. We’re located in Mississauga, Ontario, Canada so you’d search “Mississauga Accountant” or “Accountant Mississauga” and the names of local accountants are listed. Google is a good way to find names but not necessarily the best accountant.

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Nov 05

During my first year as a freshman at West Chester University, I got to understand the real importance of taking accounting. Accounting opens up many doors for students like ourselves. It teaches us not only how to balance our money, but the importance of why you have to balance and keep track of money. Accounting is not as hard or as boring as most people tend to make it. But before one can start to become an accountant it is important to understand the differences between debit and credits, the basics. But to get the basics it is very important to memorize and understand one simple equation. That is Assets = liability + equity with Revenue-Expenses under equity. It is important to keep this equation balanced at all times otherwise all of your recorded information will be unbalanced and information could be lost.

When beginning is it is important to record everything in T-accounts so it can make it easier when moving onto general journals and so forth. Usually when transactions are recorded it is important to have them put into T-Accounts. T-Accounts are T shaped charts where on top of the T is the name of that account. On the left side of the T is where you would record all of your debits. On the left side of the accounts is where all of your credits are recorded.

So I am going to explain the difference between a debit and a credit in a cash account. A debit in a cash account would be considered when you receive cash from someone. For instance if your perform a service for someone for $100.00 then you would record that on the debit, left side of your T-Account, in the cash account. A credit is considered when you pay off something with cash. For example if you had to pay $100.00 for rent, then you would record that transaction on the right side of your cash account. But when recording transactions such as these, it is important to keep everything balanced. So if you received $100.00 for services performed, which is a debit, than you want to credit service revenue for $100.00. After it is recorded you have to record that transaction into a general journal to keep track of all of your transactions. The journal would be recorded debit cash for $100.00 and credit service revenue for $100.00. To keep the rent transaction balanced in your T-Accounts you would credit your cash account for $100.00 and debit your rent expense for $100.00. The journal would be recorded as debit to rent expense for $100.00 and credit to cash for $100.00.

When performing services or when paying off expense, cash is not always on hand, and that is called paying on account. So if your services performed for $100.00 was paid on account your entries into the T-accounts and the journal would be different from when you are paid with cash. If paid on account you would debit, left side, your accountants’ receivable account. Accounts receivable is an account in which the company or person has done a service but is still waiting to receive the money. So after you debit accounts receivable, you would keep the credit the same, which is a credit to service revenue for $100.00. If you were to pay off a rent expense on account, you would record the debit the same as rent expense. But the credit would not be cash because you paid on account. You would credit Accounts payable for $100.00. Accounts payable is exactly how it sounds, it is a account to record all the money that you owe.

Those are just a few of the basics of debits and credits. Of course it can get a lot more complicated and confusing, but with just knowing what a debit is and a credit is can help further your understanding of accounting and give you a head start when learning accounting. It is important to record every transaction that you encounter because forgetting one transaction could result in an unbalanced book, which could mean overdrafts. An overdraft is when you take out or spend more money then you have and will most likely result in a fee. So accounting is a key subject and a good background to have even if you are not an accounting major. It is very important to know how to manage your money and who knows if your that good with managing your own money, you might be good enough to manage other peoples money.

 

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Nov 04

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After completing my first year of business classes at West Chester University, I realized how important accounting knowledge is for any business major. Regardless of the field of business that you choose to pursue, whether it be marketing, management, economics, or finance, you will need to be able to have at least a basic understanding of accounting. Every business has to deal with observing and understanding source documents, income statements, balance sheets, and statements of retained earnings in order to be successful in today’s business world. Anyone interested in entrepreneurship who is looking to start their own business will have a definite advantage if they can understand financial statements of accounting. The truth is that accounting exists in our every day lives whether you realize it or not, so being educated in the field will do nothing but help you in a future business career.

The process of accounting will almost always begin with source documents. In the past, most of the source documents that CPA’s (Certified Public Accountants), auditors, and other accountants would have to deal with were tangible paper documents such as receipts from a recent purchase at a store. The accountant would then have to transfer these source documents into a journal to start the accounting process. Today, most of the source documents are electronic. When a purchase or sale is made between any two businesses or consumers, it is filed into a computer on an electronic database. This method has made accountant’s jobs far more simplistic, as they can they place the transaction directly into an electronic journal on Microsoft Excel.

The basic accounting equation that anyone who works in business should know, is that Assets= Liabilities + Equity. Assets include accounts such as cash, land, building, equipment, office supplies, inventories, and accounts receivable (money owed to you by a customer). The normal balance for these assets are a debit, which means if you are gaining any of the previous, you debit that amount of money towards that account. For example, if a sale is made in your store and a customer pays fifty dollars cash, then you would debit the cash account for fifty dollars. Liabilities include accounts payable (what you owe others on account), unearned revenue (you have been paid but haven’t performed a service), salaries payable (salary money owed to your employees), taxes payable, and interest payable. The normal balance that increases these accounts is a credit, unless the account is a contra account in which the opposite normal balance applies. Equity accounts include dividends (money owed to your stockholders), revenues and expenses. The normal balance for owner’s equity is a credit, but expenses made by your business are always treated as contra accounts. So for a transaction where a customer purchases something from your store on on account, you would debit accounts receivable and credit revenue. Each transaction is then recorded into a journal organized by month.

At the end of each month, the totals are added up from the journal and are placed into what are called “T-Accounts”. These are T-shaped charts with the debits on the left side and credits on the right. It is used to more easily find the ending balance of each account at the end of the month. After the totals of each account are found, you can now make an income statement to determine your amount of money lost or made during the month. The amount of income can be found by subtracting the expenses from your revenues. This is one of the most important financial statements that accountants have to deal with. Your income statement helps you determine if you are making profits or if you are losing money and need to improve a sector of your business.

Once you have transferred all of your journal entries into T-accounts and have made an income statement, you are then prepared to make a balance sheet. This is the basic accounting equation in which you make sure that Assets = Liabilities + Owner’s Equity. When you sum all of your asset accounts they should be equal to all of the liability and equity accounts as well. This is why anyone in any type of business should always have a basic understanding of the accounting process. With the knowledge of how money flows throughout a business, you can make wiser, more experienced decisions with your business, and protect yourself from losing money. It also allows you to take risks with your business and potentially gain a big return when it comes to the bottom line of your income statement. I’m pleased to say that I can now understand a company’s financial statements and comprehend the transactions that go on in every day business. Any business student will be more successful in their future career if they learn the crucial basics of accounting.



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Sean Bonatz

West Chester University

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Nov 03

Job Description

An accountant provide information about financial records. This involve them in financial reporting, taxation, auditing, forensic accounting, corporate finance and so on.

They have a strategic role in companies as they provide professional and trustworthly advice. They goals is to maximise profitability on behalf of the client or the company the accountant is working for. They work in many different sectors including public firms, industry and commmerce.

Typical work activities include many different aspects of finance work… They provide financial audvice, they manage financial audits and keep a track on financial systems and budgets…

Most accountants have a specialty. There are four main kinds of accountants.

Public accountants work for public accounting companies. They do accounting, auditing, tax, and consulting work. Some have their own businesses. They do many different kinds of accounting for people outside the company.

Management accountants keep track of the money spent and made by the companies for which they work.

Internal auditors make sure that a company’s accounting records are right. They check the records to see that no one in the company is stealing. They also check to see that no one in the company is wasting the company’s money.

Government accountants and auditors make sure that government accounting records are right. They also check the records of people doing business with the government.

Accountants and auditors work in offices. They generally work a standard 40-hour week, but some work 50 hours a week or more. Tax accountants often work long hours during the tax season, from January to April. Accountants working for the government and public companies travel to audit other companies or branches of their own company.

Career Path for this Jobs

How do you get ready?

Most accountants have a college degree in accounting. Public accountants have to take a special test as well, resulting in a certification. Public accountants also must have a special license from the State in which they live. Most employers want accountants who know quite a bit about computers. Previous experience in a summer or part-time internship is also a plus.

People who want to be accountants should be good at math, and have good analytical skills. They also should be able to write well, so that they can tell others about their findings.

There is a lot of different paths people can take to become an accountant. Most of the people start as an Customer Service Representative, Junior Accountant, or Assistant Accountant.

After a couple of years, an Accountant could be promoted as Staff Accountant, Senior Accountant, Senior Staff Accountant…

Accountant Salary

How much does this job pay?

Accountant Salary: $41,000 (average salary)

20,000 Salaries

Staff Accountant Salary: $41,000 (average salary)

4,000 Salaries registered anonymously for this job

Senior Accountant Salary: $58,000 (average salary)

1,500 Salaries registered anonymously for this job

Job Offers

How many jobs are there?

There were 1.5 million accountants and auditors in 2010.

Most of them worked in cities, because that is where the large companies tend to be.

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Nov 01

Debits and credits are two key terms that are crucial in understanding the fundamental accounting concepts.  These key terms are used for bookkeeping to record any type of financial transaction.  The words debit and credit can be used to describe either a change in an account or to identify the account balance. Debits and credits are neither good nor bad, and no term is of greater or less importance than the other. The terms debit and credit are of equal value. It is important to understand how debits and credits work before advancing into upper level accounting classes.

In order to further understand the concepts behind debits and credits, it is important to know how they are recorded in the books for financial transactions. Financial transactions are recorded by using a debit (DR) or a credit (CR) balance.  Debits are recorded when dealing with asset and expense transactions.  Credits are used to record liability and equity transactions. When recording transactions in the books, a credit balance is reduced by a debit, and vice versa.  For most transactions, whatever is being received is the account that is debited, and what is given is credited.  To record financial transactions, one would post entries to T-Accounts in the general ledger and then journalize transactions in the general journal.  The numbers are separated into two columns. The debits are on one side of the column and the credits are on the other side. By recording debit and credit transactions on opposite sides, it is easier to keep track of each account.  A ledger account has a debit balance when the debit value amounts are lower than the credit amounts. An account can have a debit or a credit balance; however it cannot have a balance of both. A debit may also be used to reduce a credit account. For instance, a debit can reduce the balance of a liability or equity account. On the other hand, a credit can be used to reduce the balance of an asset or expense account. When an asset is recorded in a transaction, the account is debited or increased, and the credit side is decreased. For personal accounts, the receiver is debited and the giver is credited.  For asset accounts, what comes in is debited and what goes out is credited. For expense accounts, losses and expenses are debited, and income/gains are credited. Every transaction recorded in the books contains debits and credits. The value of the debits MUST equal the value of credits for every financial transaction.

Another concept that is important to grasp when understanding debits and credits is the accounting equation. The accounting equation is simply assets/expenses= liabilities + owner’s equity (A=L+OE).  Just as debits and credits must balance, the accounting equation must balance as well. The debit accounts within the accounting equation are assets and expenses. The credit accounts are liabilities and owner’s equity.  After financial transactions are recorded in the general journal, they are then placed into a financial statement. Three financial statements used in accounting are the balance sheet, statement of retained earnings, and the income statement. Only assets are recorded on the balance sheet, and the other accounts are recorded on the statement of retained earnings and the income statement.

Examples of financial transactions:

1)      A student at West Chester University pays $718 cash for her apartment’s monthly rent.

Since rent is an expense account, this account is increased by recording a debit on the left side.
Since cash is given for the rent, this account is decreased and credited on the right side. 
In other words, rent expense is debited and cash is credited.

2)      A dance studio owner receives $25 revenue in cash for dance classes.

Since cash is received, this account would be increased with a debit transaction. 
A credit transaction would occur by increasing the revenue account with a credit.
In other words, cash is debited and revenue is credited.

3)      A company buys office equipment for $50 cash.

Since office equipment is something that is owned, it is recorded as an asset account.
In this transaction, office equipment is debited.
Since cash is being paid, cash is credited.

4)      The manager of a company pays $100 cash for an employee’s weekly salary.

Since salary is an expense account, salaries expense would be debited for $100.
Cash is given in this transaction, so therefore cash is credited.

Below is an example of how these transactions would be recorded in the general journal:

Account:                                              Debit                                     Credit

Rent Expense                                    $718

                Cash                                                                                      $718

Cash                                                      $25

                Revenue                                                                              $25

Office Equipment                            $50

                Cash                                                                                      $50

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Oct 31

 

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Oct 30

There are various forms of accounting papers, these may include accounting essays, accounting research papers and accounting thesis or dissertation papers-just to mention but a few. Accounting papers present accurate and informative information based on accounting principles. They may explore actual business accounting scenarios in relation to the principles and concepts of accounting. All accounting papers should be supported by figures and facts that substantiate the content that they try to illustrate to the reader of the accounting paper. The reports and illustrations within accounting papers should present the information within them in manner that adheres to the stipulated financial reporting standards; other they may lose their relevance in the professional accounting field. Unlike business articles that may speculate on some accounting aspects, actual scholarly accounting papers should try to substantiate their content beyond doubt through the use of facts and figures as well as illustrations of relevance based on accounting principles. Just like most academic writings accounting papers should have a definite format that creates a flow that directs the reader to a clear understanding of the accounting ideas or concepts being presented.

Firstly, writers of accounting papers should have an introduction to their paper. This introduction should simply outline the subject to be covered. It is at this point that the writer should consider the accountancy know-how that his or readers have in order to start them off in a manner that will help them understand what s/he is presenting through the accounting paper. The question to be answered within the accounting papers should fast be clearly formulated and a thesis statement written that enshrines what is to be answered and its relevance to accountancy. This sets the goals and objective of the accounting papers. Secondly, the writer should create a writing structure that will take into consideration the relevant accounting procedures and concepts are adhered to as stipulated within accounting standards set by the appropriate accounting bodies both at local and international level, especially; if the accounting papers being written are meant for an international readership. Therefore, whilst answering the questions within any accounting papers the writers should consider relating the presentation of their ideas or concepts to the standards set within the profession of accounting. This is the most important feature in the writing of accounting papers, without which any accounting papers may be rendered irrelevant within the profession. After clearly laying out the writing plan the writer should carefully select any relevant resources that may be required in supporting his or her work. These may include online databases, accountancy publications such as journals and books. This is an important feature in the writing process since substantiation of the presented ideas is of great importance in establishing relevance. Since most accounting practices are calculation based, it would be incomplete to present accounting papers that have no analytical calculations based on accounting formulas and principles. Therefore an analytical and calculation section should also be set out in order to show how the presented accounting ideas and concepts can be proven through calculations. Finally, the writer should include a discussion and recommendation section that elucidates the applicability of the presented accounting concepts and ideas within the accounting profession as well as their relevance. This last part should be followed by the list of all resources that were used in presenting and developing the ideas and concepts.

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Oct 29

Product Description
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Schaum’s Guideline of Managerial Accounting

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Oct 27

Writing of accounting papers has become of the major problems which students encounter. This is due to the requirements which the student should meet before writing them. Calculations involved when writing accounting papers requires the student to have better knowledge about them and also have experience in writing academic papers. Time limit is another issue which makes the process of writing accounting papers to be difficult to students. To tackle the problem of writing quality accounting papers and other academic papers students have turned to online essay writing companies. There are a lot of essay writing services which provide students with quality accounting papers and other essays. The greed of making quick profits has made some essay writing companies to provide students with papers which are of low quality. This is because they have substandard services and thus their papers will not enable you to earn better grades in your exams.

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Oct 27

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