Accounting is the process of recording in business. In a business, it is very much needed to record the business data, such as total sales, debit, credit, profit and loss. Accounting cares for those data in a restricted manner. In other words, it can be said that if the business has such language to communicate with professionals that must be accounting. Accounting helps to keep the record of the data regarding business. It also shows the performance of the business after an economic year. In case of a business, there is cash flow, assets, profit and loss statement that must be recorded in an economic year. After the year ends, accounts show how the business has progressed through the whole year. There are such types of accounting, which are:
In this report, the key tasks of accounting will be explained, along with the identification of future challenges, recent growth or evolution, the impact of those growths, challenges and recommendations for resolving those challenges will be discussed.
Key tasks of work that takes place within accounting are as follows:
There may be different points of view regarding the key tasks of the department of accounting in case of a business, but there are certain key roles, which are described below:
There are some specific challenges in recent times in the field of accounting. In the upcoming future, the challenges will grow further and must put a heavy impact on the system of global accountancy. The challenges and growth of accounting are explained in the following paragraphs:
In the upcoming future, certainly within one or two decades, identifying changes are coming towards the profession of accounting. The most significant three changes are being described in this research proposal. Firstly, there will be some huge changes regarding the technology of accounting, such as the evolution of digital technology, which will be smarter. Next, there comes the globalization factor, this particular field of work is going to achieve a huge global market in the recent future. After that, the most obvious change of regulations regarding accountancy (Karreman and Needles, 2013).
In the case of technological advancements, there will be smarter technology as well as software, which will bring some definite changes regarding the accountancy services. The accountants will tend to use the most advanced technologies in the field of work. These upcoming technologies will replace the current methods of accounting for sure (Lim, 2013). Different software systems will be used to develop the processes of accounting and definitely encourage outsourcing services. So it is clear that technological advancement will bring more outsourcing, not only but overseas outsourcing will also be welcomed. Along with technology, social media will put a huge impact all over accountancy. Assurance reports of corporations will be neglected but the usage of social media and its revelation will be more effective (Milakovich, 2012).
Then, it is here, the globalization factor. Globalization in accountancy will clearly bring many more challenges to the field of accountancy and accountants. Globalization influences the free flow of cash throughout the world. While overseas accounting brings money, from one marketplace to another, the technical, as well as skills of professionals, will be counted eventually (Kargin, 2013). Accounting agencies of the EU, Australia and the US are already outsourcing services to third world countries to minimize the cost, and eventually, it will bring some huge differences in the accounting market of West. After the victory of Donald Trump in the presidential election and Brexit, there are already some negative impacts regarding globalization, that is why, accountants must like to look forward towards some serious transformations (Inglehart and Norris, 2016).
Therefore, the most obvious change is increased regulation. Panama papers have revelled already so much fraud in taxation and money laundering; it is inevitable that regulation is going to increase in the recent future (Obermayer and Obermaier, 2016). So many accounting professionals are going to be affected by this huge upcoming transformation (Turner, 2011).
These above-mentioned challenges are inevitable to appear in future, so it is needed for the accountants to know about some specific factors very well. In the world of accounting, the professionals must learn about new technologies, globalized markets and new regulations. If the accountant becomes aware of these severe changes, they will have to face less challenges regarding the events. It is very much important for different universities to teach new accountants with lots of care. The current professionals are not much aware of the challenges such as new technologies, new regulations and globalization. To aware accountants of such factors, very well decorated guidance are particularly needed (DRURY, 2013).
Now it is quite clear that the upcoming future is going to put pressure on the individuals who are the professional of the accounting services. Technological advancements will clearly increase the trend of outsourcing, especially overseas outsourcing. Overseas outsourcing will definitely bring the free flow of cash throughout the world. Now the market trend indicates that in the West, the professional of accountancy will be highly affected due to these changes. As soon as the globalization trend becomes natural, the trend of money laundering and fraud issues will start to progress too. That is why there must be an increase of regulation, which will be needed to dominate the cases of these crimes (Maelah et al., 2010).
The research aims for the project are as follows:
There must be some specific questions, which will be answered in the research:
In research methods, the researcher must gather data from secondary sources that will lead the researcher towards subsequential data and follow towards some specific conclusions (Weil, Schipper and Francis, 2013). In this case, the accountants have to learn specific technologies, which will help them in future. On the other hand, the accountants also have to know the increased regulations as well as the current regulations throughout the monitoring system of the world. The globalization of accountancy is also a factor, which must be covered by the knowledge of accountants (Salvato and Moores, 2010).
The researcher has to find specific data regarding the subject of research, in this case, accounting is the subject and the researcher has to find specific sources, which will be reliable to develop the research proposal. There are certain challenges, which are already portrayed throughout the project. There are some severe challenges, which are detailed previously, such as technological advancements, globalization and increasing regulations (Botzem, 2013). The new accountants must be aware of these upcoming factors (Smith, 2017). They are needed to be well taught and must know the current regulations as well as the new regulations too. There are specific journals and papers which will help the researcher as secondary research material. Collection of data will go through the process of viewing those specific previous works and that will be much help to the researcher. Various journals and papers are there which describe the facts regarding the challenges that are coming in the future of accountancy. On the other hand, the researcher has to bring the facts which will resolve those severe issues regarding the factors of the changes. The researcher has to gather proper information about the method that will resolve serious issues or challenges that are going to break into the world of the accounting business. The students of accounting must be well informed. They have to gather proper knowledge regarding their business. The researcher will find all those information in different papers, books and journals, which will provide various solutions for the upcoming challenges (Inger, 2013).
The research reveals such things like, the profession of accounting is going to face challenges in future. In the upcoming future, certainly within one or two decades, identifying changes are coming towards the profession of accounting. The most significant three changes are being described in this research proposal. Firstly, there will be some huge changes regarding the technology of accounting, such as the evolution of digital technology, which will be smarter (Salehi, Rostami and Mogadam, 2010). Next, there comes the globalization factor, this particular field of work is going to achieve a huge global market in the recent future. After that, the most obvious change of regulations regarding accountancy. Now, it is very important to teach accountants about the inevitable future, which is going to transform the world of accountancy in specific ways. The accountants are much eager to bring the transformation in the world of accounting. Already there are certain issues regarding, fraud, money laundering and so many other issues involving monitory factors. To resolve these issues there will be such regulations that will be amended further. Besides that, there are coming new technologies, software, cloud computing and so many other technologies which will bring progress in accountancy. In addition, there is globalization on the other hand. Globalization will break all the barriers around the world. Overseas outsourcing will get a large part of accounting, already the West part of the world outsource their works so that the works can be done with the minimum transaction of money. These specific factors have been revealed by the collected data (Goodwin and Milazzo, 2017).
These above-mentioned challenges are inevitable to appear in future, so it is needed for the accountants to know about some specific factors very well. This is discussed in following points:
The research proposal concludes that severe changes are coming towards the field of accounting in the recent future. That is why the professionals of this field must be aware of these upcoming changes, such as globalization, differential regulations and transformation of new technologies. The accounting professionals should be well known about the regulations, which are performing in the field right now and further. On the other hand, there are serious issues regarding monitory transactions, such as fraud, transfer pricing, money laundering, tax avoidance and many more that must be overcome (Madinger, 2016). The globalization of accountancy will bring severe transformation, which will become so much effective for the field of accountancy. To avoid all those issues, the accountants must be well taught and well informed about the situations of globalized monitory systems.
Botzem, S., 2013. Continuity of expert rule: global accountancy regulation after the crisis. Great Expectations, Slow Transformations. Incremental Change in Post-Crisis Regulation, pp.149-72.
DRURY, C.M., 2013. Management and cost accounting. Springer.
García-Unanue, J., Felipe, J.L. and Gallardo, L., 2015. Using action research to achieve the implementation of cost accounting: the case of the public sports organizations at the local level. Systemic Practice and Action Research, 28(2), pp.111-123.
Golden, T.W., Skalak, S.L. and Clayton, M.M., 2011. A guide to forensic accounting investigation. John Wiley & Sons.
Goodwin, M. and Milazzo, C., 2017. Taking back control? Investigating the role of immigration in the 2016 vote for Brexit. The British Journal of Politics and International Relations, 19(3), pp.450-464.
Hock, H. and Isenberg, E., 2012. Methods for Accounting for Co-Teaching in Value-Added Models. Working Paper. Mathematica Policy Research, Inc.
Inger, K.K., 2013. Relative valuation of alternative methods of tax avoidance. The Journal of the American Taxation Association, 36(1), pp.27-55.
Inglehart, R. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-nots and cultural backlash.
Kargin, S., 2013. The impact of IFRS on the value relevance of accounting information: Evidence from Turkish firms. International Journal of Economics and Finance, 5(4), p.71.
Karreman, G.H. and Needles, B.E., 2013. Global accountancy education recognition study 2012. National Association of State Boards of Accountancy. Disponível em:< http://nasba. org/files/2013/08/GAER_2012_Study_Final. pdf>. Acesso em, 3(07), p.2015.
Lim, F.P.C., 2013. Impact of information technology on accounting systems. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2), pp.93-106.
Madinger, J., 2016. Money laundering: A guide for criminal investigators. CRC Press.
Maelah, R., Aman, A., Hamzah, N., Amiruddin, R., Sofiah and Auzair, M., 2010. Accounting outsourcing turnback: process and issues. Strategic Outsourcing: An International Journal, 3(3), pp.226-245.
Milakovich, M., 2012. Digital governance: New technologies for improving public service and participation. Routledge.
Obermayer, B. and Obermaier, F., 2016. Panama Papers. Süddeutsche zeitung.
Salehi, M., Rostami, V. and Mogadam, A., 2010. Usefulness of accounting information system in emerging economy: Empirical evidence of Iran. International Journal of Economics and Finance, 2(2), p.186.
Salvato, C. and Moores, K., 2010. Research on accounting in family firms: Past accomplishments and future challenges.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and practice. Routledge.
Smith, M., 2017. Research methods in accounting. Sage.
Turner, J.E., 2011. Money laundering prevention: Deterring, detecting, and resolving financial fraud. John Wiley & Sons.
Weil, R.L., Schipper, K. and Francis, J., 2013. Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.Order Now