UNIT 2: CAREERS IN THE FIELD OF ACCOUNTANCY

A. READING

When deciding on a future career a lot of people don't give accountancy a second
thought. Most people don't realize how varied the world of accounting is and in fact it is
often seen as boring. The truth is that accounting is the backbone of any organization and
offers a wide number of attractive careers within it.

Below you will hear about just some of the more common careers in the field of
accountancy, there are of course many more, but we don't have time to talk about all of
them.

When we consider the accounts team within a company, we generally think about clerks,
both sales ledger clerks and purchase ledger clerks recording the financial information
from all transactions the company makes. Other roles include the payroll clerk
responsible for processing staff salaries and the tax which occurs from them. Higher up
the hierarchy we have the management accountant who finalizes the accounts and
prepares the annual financial statements. The people doing these jobs make sure that the
directors or owners of the company always know its true financial position.

However, accounting is more than just reporting financial data. A good accounts team
actually works to save the company money by minimizing the tax payable and delaying
payments so companies can earn interest from their banks.

These job roles are not so clear in smaller accounting practices, where the accounting
staff often need to perform various tasks from meeting clients to helping with loan
applications. Often the majority of the work in these smaller practices is done by
bookkeepers. Generally, the owner of the practice is the most senior accountant and is
usually a chartered accountant, which means that their signature is accepted on the
financial statements.

The job opportunities for accountants don't stop there: auditors are the police of the
accounting world and when they are called into a company it is their job to ensure that
the accounts were done in the correct way and that everything was accounted for. The
most feared of these auditors are the government auditors who are sent to companies
suspected of somehow breaking the rules. Working as an auditor is very different from
other accountancy work as there is no routine; you work in many locations and have
contact with many people. Although, you should be thick-skinned as often the accounting
staff in companies do not like the idea of being audited.

Career progression within accountancy often results from a specialist knowledge in a

particular area, tax advisors are able to help their clients lower their tax bill thanks to
their in-depth knowledge of taxation law and specifically what a client can off-set against
tax.

As you can see the world of accountancy offers various careers, but in all of these areas
there are some qualities that a potential accountant should have. Firstly, as accounting is
the process of collecting and classifying financial data all accountants need to be
perfectionists unwilling to accept anything less than an exact result. Also, as accountants
deal with large volumes of data they need to have a good eye for detail and a real love of
numbers.

A talented accountant will also be able to advise their clients on the best course of action
to take so as to save money and at the same time stay within the local accounting
standards.

Accountants have to follow very strict rules and codes of conduct in order to make sure
that they do everything in a legal way. If an accountant breaks these rules they could face
severe punishment, but some accountants practice creative accounting to get around rules
without breaking them. Confidentiality is obligatory for all people working with accounts
as the financial data could be very sensitive.

Whether working in the public or private sector, accountants can expect to earn very
good salaries and also gain valuable knowledge on topics like income tax, value added
tax (VAT) and pension schemes which can help them in their life outside of work. What's
more, as accounting is such an important part of a company's success there will always be
a demand for good accountants.

After reading this text I hope that you will appreciate the complexity and the variety of
accounting and the value accountants serve in an organization. So the next time you hear
someone say that accounting is dull, please correct them. Accounting is about truth and
money, and there is nothing dull about that!

B. VOCABULARY

Find the equivalence of the 15 vocabulary terms in Vietnamese

1. Annual financial statements: the set of accounts which are prepared each year

Once a year the shareholders review the annual financial statements to see if the
company made a profit or loss.

2. Auditor: a specialist whose job is to carefully check the accounts and accounting
practices of a company
The entire department were scared when the team of auditors arrived and asked to see
all of the previous year's records.

3. Bookkeeper: a person, who may or may not be qualified, that records the financial
transactions of a business

A lot of smaller companies use bookkeepers for their daily accounting needs and only use
an accountant for the yearly financial statements.

4. CA (chartered accountant): a fully qualified accountant, holding current certification

When the bank asked for confirmation that John would be able to repay the loan, his
chartered accountant provided it.

5. Code of conduct: a set of rules (often used within a company) which show the correct
way to behave

All employees must follow the company's code of conduct.

6. Confidentiality: the state of being secret and/or kept secret

James was dismissed when he broke confidentiality and told his wife that the company
was having financial problems.

7. Creative accounting: the use of holes in financial law to have an advantage or to

show figures in a deceptive way

Some accountants often use creative accounting to try and cheat the tax authority out of
monies due.

8. Income tax: the tax which is due on personal earnings

Most people complain about the rate of income tax, but for those earning over 40,000 a
year who have to pay 32% it is an even less comfortable situation.

9. Local accounting standards: the set of rules and laws for a country which govern
how accounts should be prepared

Multinational corporations need to be aware of the local accounting standards of each

country they operate in.

10. Management accountant: a senior member of the accounting team, who liaises with
company owners / directors and advises on the financial aspects of any planned action
After the meeting with the management accountant, I realized that launching the new
product line didn't make financial sense.

11. Payroll clerk: the member of the accounting team who deals with employees

The sales-director asked the payroll clerk to issue bonuses to the top five sales people.

12. Purchase ledger clerk: (U.S. accounts payable) the member of the accounting team
who deals with suppliers, issues payment for goods and services and keeps track of
expenditure

When the supplier contacted the company to ask why the invoice wasn't paid, the
purchase ledger clerk explained that the cheque was in the mail.

13. Sales ledger clerk: (U.S. accounts receivable) the member of the accounting team
who deals with sales, raises invoices and collects payment.

The sales ledger clerk made sure to issue the invoice on the same day as the sale.

14. Tax advisor: a specialist who is able to give advice on matters of taxation

Larger corporations often have a dedicated tax advisor to help them minimize the
amount of tax that they need to pay.

15. VAT (value added tax): the tax which is due on the difference between the value of
a product or service and the cost of its production

The government are talking about increasing the value added tax rate next year, which
means the cost of consumer goods will increase.

C. DISCUSSION

1. What is accounting? Why is it necessary for companies and organizations?

2. Why do you think accounting is seen as boring?

3. Which of the jobs mentioned would be most interesting for you?

4. Why is it so important for accountants to be ethical?

D.PRACTICES

I. Match each definition with the letter of one of the following:

a - balance sheet, b - liquid assets, c - liability, d - net income, e - property, f - payroll, g -

equity, h - journal, i - cash flow, j – expense

1. a list of all employees and their wages

2. an accounting record where all business transactions are INITIALLY entered

3. money that is spent to purchase goods or services provided by someone else -->

4. a detailed summary of a person's or a company's financial condition at a specific point

in time, taking into account their assets, liabilities, etc. -->

5. something that is legally owned by a person or company -->

6. an obligation to settle a debt; money owed to someone -->

7. this word has 2 meanings: "stock (shares)" and "net worth" -->

8. the balance of cash receipts minus cash payments over a given period of time -->

9. cash or something that is easily convertible into cash -->

10. money remaining after all expenses and taxes have been paid

II. Match the word in the box with the definitions below.

assets cost accounting income tax accounting financial

accounting expenditure liabilities bookkeeping management
accounting auditing

1.____________anything owned by a company –cash, buildings, machines, etc.

2.____________calculating how much tax an individual or a company should pay or
trying reduce this figure. 3.____________checking and evaluating financial records.
4._____________determining the unit cost of a manufactured product, including indirect
costs 5._____________keeping financial records and preparing financial statements.
6._______________ money that a company will have to pay to someone else – bills,
debts, interest, taxes, etc.

7._____________ recording transactions (purchases and sales) in ledgers

8._____________the money that a company receives from supplying goods or services

9. _____________the money that a company spends.

10. _____________the use of company’s accounting data by its manager for

III. Choose the correct answer

1. A charge for arranging a transaction (e.g. buying or selling securities) (a) commission
(b) fee (c) tax

2. A charge for a service performed by a bank (a) Commission (b) fee (c) tax

3. Payments for an insurance policy (a) Commissions (b) premiums (c) tariffs

4. A reduction in the value of an asset, charge against profits (a) Amortization (b) loss
(c) waste

5. An adjective meaning after all deductions have been made (a) Gross (b ) net (c) zero

6. An adjective meaning for a whole group of companies (a) Consolidated (b) corporate
c) mutual

7. An adjective meaning one year or less in financial statements (a) Annual (b) long-term
(c) short-term

8. Part-ownership (less than 50%) of other companies (a) Conglomeration (b) liabilities
(c) minority interests

9. Things of value that cannot be physically touched, such as reputation (goodwill), brand
names and trademarks (a) Intangible assets (b) liabilities (c) tangible assets

10. The net worth of a company – the amount by which an asset exceed liabilities (a)
Dividends (b) profit (c) shareholders’ equity
IV. Complete the sentences below. Use the key words if necessary.

 Accounting
………….involves…………….and summarizing an
organization’s……………..or business deal, such as purchases and sales, and
reporting them in the form of financial statements. In many countries, the
accounting or…………….profession has professional organizations which operate
their own training and examination systems, and make technical and ethical rules:
these relate to accept ways of doing things.

…………..is the day-to-day recording of transactions.

………….included bookkeeping, and preparing financial statements for

shareholders and creditors — people or organizations who have lent money to a
company.

…………..involves the use of accounting data by managers, for making plans and
decisions.

Auditing
…………means examining a company's systems of control and the …………or
exactness of its records, looking for errors or possible fraud: where the company
may have deliberately given false information.

An ……………….is carried out by a company's own accountants or internal

auditors.

An………………is done by independent auditors: auditors who are not employees

of the company.

The external audit examines the truth and fairness of financial statements. It tries
to prevent what is called 'creative accounting', which means recording transactions
and values in a way that produces a false result — usually an artificially high
profit.

 There is always more than one way of presenting accounts. The accounts of
British companies have to give a…………of their financial situation. This means
that the financial statements must give a correct and reasonable picture of the
company's current condition.
 Laws, rules and standards

key words

In most continental European countries, and in Japan, there are …………relating

to accounting, established by the government. In the US, companies whose stocks
are traded on public stock exchanges have to ……….set by the Securities and
Exchange Commission (SEC), a government agency. In Britain, the rules, which
are called …………, have been established by independent organizations such as
the Accounting Standards Board (ASB), and by the accountancy profession itself.
Companies are expected to ………or use these standards in their ………..in order
to give a true and fair view.

Companies in most English-speaking countries are largely funded by shareholders,

both individuals and financial institutions. In these countries, the financial
statements are prepared for shareholders. However, in many continental European
countries businesses are largely funded by banks, so accounting and financial
statements are prepared for creditors and the tax authorities.

V. What type of work does each person do?

 I record all the purchases and sales made o external auditing

by this department. —  . . .  o management accounting
 This month, I’m examining the accounts of o accounting
a large company. —  . . .  o financial accounting
o bookkeeping
 I analyze the sales figures from the
different departments and make decisions
about our future activities. —  . . . 
 I’m responsible for preparing our annual
balance sheet. —  . . . 
 When the accounts are complete, I check
them before they are presented to the
external auditors. —  . . . 

VI. Choose the most suitable answer to complete the statement

 Accounting rules are established by o Britain
a government agency in  . . . . o most of continental Europe
 Companies are mainly funded by and Japan
shareholders or stockholders in  . . . . o Britain and the USA
  Accounting rules are set by an o much of continental Europe
independent organization in  . . . . o the USA
 The major source of corporate
finance is banks  . . . .
 Accounting rules are set by the
government  . . . .

VII. Choose the correct word to complete the phrase related to accounting

  . . .  an audit carry out follow apply

  . . .  an audit do make establish
  . . .  rules establish use apply
  . . .  rules summarize follow record
  . . .  rules make do carry out
  . . .  rules apply use set
  . . .  standards do record apply
  . . .  standards establish set summarize
  . . .  standards carry out use record
  . . .  transactions set record establish
  . . .  transactions apply summarize follow

E. WRITING

Write a composition expressing your own opinion on the topic: Why do people want to
become an accountant? Use the following plan:

Introduction

Paragraph 1: state topic and your opinion clearly

Main body

Paragraph 2: viewpoint 1 and reason

Paragraph 3: viewpoint 2 and reason

Paragraph 4: give the opposing viewpoint and reasons

Conclusion
Final paragraph: restate your opinion, using different words

Useful words and phrases:

To list viewpoints: To begin with, In the first place, Firstly, Secondly, Finally, etc.

To add viewpoints: What is more, In addition, Furthermore, Besides, not only … but
also, etc.

To present the other side of the argument: Some people argue that…, As opposed to the
above ideas, Contrary to what most people believe, etc.

To express opinion: I believe, In my opinion, I think, In my view, I strongly believe, I

feel that, To my mind, It seems to me that, etc.