Importance Of Accounting Education In Business And The Challenges Affecting It

The Vital Advantage of Accounting Education

Discuss about the Analysis Education Research In the Accounting.

The most vital advantage of accounting education is that an individual will get properly educated in the accounting field. With this an individual can address any sort of accounting issue. It is believed that most of the successful businessmen has a strong accounting background. For this reason, in order to become a successful businessman, it is vital to attain necessary accounting education (Blount et al. 2016). The paper intends to present a critical and theoretical approach involving as recently the structural instruments associated with planning of teaching practice. These promote vocational training in the first stages that encompass accounting education along with explaining the difficulties experienced by the students within the learning process of accounting. The objective of this paper is to explain the usefulness of accounting education. Considering the same, the paper also has an objective to promote an innovative awareness along with recognizing the use of specific resources that can be known in development of didactic activities for certain technical use.

Carenys and Moya (2015) evidenced that speedy developments in information technology along with advancement in globalization that has resulted in considerable changes within the business surroundings both within Australia and other nations. Considering the same, for remaining highly competitive a number of accounting organizations have identified the need to widen the service scope for encompassing specialized conducts like business and consulting advice. For this reason, increased creativity and innovation is necessary from the accounting practitioners.

Edmonds et al. (2016) stated that along with being an academic discipline, accounting is also present as a professional practice field in which training and education is of great importance to the public interest. For promoting the accounting sub-fields, it is vital to make sure that the educational initiatives are efficient that needs a serious commitment to the scholarship of accounting education. Franklin (2017) indicated that education research can act as a public forum on the important concerns specifically the ones involving the basic underlying accounting education. These researchers also indicated that the most vital advantage of the accounting education is that a student can get well educated in the field of accounting. With this an individual can solve any type of accounting issue. It is a reality that more than 90% successful businessman have accounts surrounding. In addition, turning out to be a perfect businessman it is vital to attain effective accounting education.

According to Ihlas and Huang (2017) accounting education enhances the ways in which the accounting explains an individual’s recent position of the business and he ways in which one can change this position with other accounting situation tools. In case a student is within a school of accounting, then he might need to know the outflow and inflow of money. Moreover, after this one a change the ways in which such outflow and inflow are changing. Liñán and Fayolle (2015) stated that the accounting education offers people with power of effective anticipation regarding the company that is concerned with the ways in which financial and revenue position is effective. These researchers also indicated that there is nothing within the research definition that includes accounting education scholarship in the favor of research within the capital markets. Moreover, the rigor that is needed for conducting effective accounting education research is highly comparable to that needed for other accounting branch. In addition, Marshall (2016) revealed that accounting education research management is to be carried out without the advantage of a strong paradigm that often results in the requirement for significant nobility within the approach.

The Usefulness of Accounting Education

In the words of Ahadiat and Martin (2015), the accounting mode of delivery associated with accounting education is implemented in the global universities. There are certain general concerns in accounting education; one of them is insufficient manpower. In many nations like UAE, there is lower number of accounting teachers in colleges and universities, since identical attractive opportunities are inherent in the global business arena. Hence, insufficient accounting teachers are a primary setback influencing accounting education in UAE and other nations.

Another concern pertaining to accounting education is remuneration. According to Apostolou et al. (2015), enhanced service conditions would enable teachers in their profession along with their salaries. The researcher further cited that poor service conditions and lack of incentives would have direct or indirect effect on the student performance. It has been found out that the teachers in UAE have not provided due recognition at each level despite their contribution to drive the teachers remained constant with the non-initiation of the salary scale of the teachers.

The third concern related to accounting education is the lack of motivation management of the teachers. As pointed out by Apostolou et al. (2014), work is considered as a stimulus variable. Stimulus variable could be defined as that incentive, which is present in any provided career. Such incentives comprise of various factors associated with jobs, which have the likelihood of influencing their productivity in a positive or negative manner. The benchmarks of accomplishment in the accounting principles rely on competency, accuracy and honesty in business teachers. The accounting teachers need to be aware adequately of differences in the existing business practices. This is because the memorisation of details from the textbooks does not overshadow the remaining of the course. However, majority of the accounting teachers have attended any course, seminars and workshop hardly influencing their overall effectiveness level.

Another issue in the education of accounting is the lack of instructional materials. As commented by Arkorful and Abaidoo (2015), teaching and equipment materials such as equipment in accounting laboratory, teaching aids and textbooks has been an obstacle for accounting in the secondary schools. There is hardly any teaching material provided in this profession. In addition, instructional materials are effective assets in learning or teaching situations. Hence, they need to be dissected with utmost care to assure that their reliability and efficiency achieve the estimated instructional goals. However, certain instructional materials in accounting education are lacking, which constitute of audio visuals, equipment or facilities, community resources and reading materials or resources.

It is not possible for any student to succeed in academic field or perform better without willingness to learn and this is the main reason ineffective performance these days could be attributed to lack of willingness. In this context, Bebbington, Unerman and O’Dwyer (2014) advocated that attitude has direct impact on learning and teaching in the classroom and the type of attitude that a student has could affect school learning and work. Hence, the students are required to develop an effective and progressive attitude, which would improve their overall learning capability.

Enhancing Ways Accounting Explains an Individual’s Financial Position

Finally, university education is cost-intensive in relation to both capital expense and operating cost. The capability of a university for providing quality education in accounting is reliant on the funding level inherent to pay staff salaries along with providing considerable support facilities. Underfunding could result in under provision of primary teaching and learning facilities, incapability to attract quality academic professors and teachers along with low staff morale and ineffective work attitude. Hence, the program objectives of accounting education could not be achieved due to such inefficiencies, which act as the hindrance to the students in taking accounting as their profession. Massaro, Dumay and Guthrie (2016) stated that there are certain challenges within the accounting educational research that requires significant guidance along with instances for the ones who are interested in accomplishing the accounting education research. Among such challenges there are control group definition and selection along with findings clarification that offers several influences on experiences of students. Rebele and Pierre (2015) revealed that accounting educators requires to consider the general education literature along with informing the accounting education programs development. In such scenario education research requires being undertaken in the accounting disciplinary context. The relevance of disciplinary differences is greatly unexplored. Along with the remaining academic discipline, accounting also remains as a professional practice field in which training and education is of great importance for the public interest. For this reason, such training and education must therefore be considered with respect of conceptual foundations along with procedural adequacy and technical content.

Rezaee and Wang (2017) indicated that accounting education is vital in today professional environment for the reason that it has a vital role in effective operation of a company. In consideration to same, any kind of business development can be made possible and it is important to know that accounting serves as a business necessity. The uses of accounting education are explained. Avoidance of memorizing power limitation is one of the major uses. Stout (2018) stated that businessman cannot remember every business transaction because of the limitation of the human memory and for this reason accounting is helpful in business transaction recording. Moreover, when the businessperson checks the record, the person can easily remember the same along with using it for his business purposes. Tucker (2017) indicated that statutory provisions compliance is another important accounting education. From the accounting viewpoint it is gathered that business transaction is important. Moreover, accounting facilitates to address every statutory provisions as it is important to record all bank, cash along with sale and purchase transaction for joint stock organizations.

Profit and loss ascertainment associated with business is another accounting education use importance. Certain business concern is maintained with having a motive of gathering profit. Net loss or profit is a vital result for the business and for appropriate calculation of business profit it is vital to record appropriately through implementing the accounting principles.  Carenys and Moya (2015) stated that ascertainment of a business’s financial position is another accounting education use. At a particular date, organization attains the knowledge of his liabilities or assets from the financial statement. Assets can be explained as sources of liabilities and businesses indicating all payable amounts of business. Business can also be able to calculate appropriate financial position, if businessman records all the liabilities and assets within accounting. According to Warren Jr, Moffitt and Byrnes (2015) tax assessment is another vital use of this accounting education. These days a businessman has to pay several taxes. For instance, sales tax, income tax, excise duty, property tax, import duty and custom duty. Correct anticipation of the same is also possible, in case the businessman record appropriately all his income, sale and production with the accounting help. In case businessman does not maintain its record in an appropriate manner then the assessing officer measures tax amount with his own anticipation.

Concerns Affecting Accounting Education

Carenys and Moya (2015) indicated that creditors and debtor’s knowledge can facilitate in making effective plans for the organization. It is also deemed by these researches that the academic accountants are neither active researchers nor generally published within academic journals. It is also evident that that might claim to attain certain interests within the research of accounting education. This takes place even though this might not have generated awareness of educational research on certain techniques. It is also not evident that everyone is associated with teaching accounting and associated with accounting education research. According to Warren Jr, Moffitt and Byrnes (2015) it is greatly believed that lack of superior quality submissions does not indicate that the accounting education field remains a trivial one and there is also not any excellent research that is being carried out in this field.

Warren Jr, Moffitt and Byrnes (2015) stated that determination of business sales price is another effective use of accounting education use. In case a businessman desires to sell his active business to another party then the overall sales value of business can simply determine in case businessman records all the investments within the business. Carenys and Moya (2015) indicated that court of law evidence is another effective use of accounting education use. In case certain disputes are there between two parties within the court. Then the book of accounts can indicate proofs, court accepts such records as the transaction evidence. Warren Jr, Moffitt and Byrnes (2015) revealed that assistance in managerial decision making is another effective use of accounting education use. Accounting is useful for certain managerial decisions such as price of goods a d services, calculating sales and product mix, distinct use of plants, purchase decisions along with productivity determination based on different sources of production. Attaining accounting education can facilitate in making calculation of continuing or closing the business decisions, machinery decisions replacement, tender based decision making and decision relied on accepting any type of order.

Witte and López-Torres (2017) evidenced that country development is another effective use of accounting education use. These researchers explained that development of a nation can also be ensured through undergoing suitable accounting education in case all the businessman records them correctly. In addition to same, the nation cannot keep black money as people will need to pay huge amount of tax for all year monetary possessions. Moreover, government can also use such funds for a country’s development program and this further ensures development of a country. Witte and López-Torres (2017) stated that external business stakeholders often employ accounting information in order to make certain investment decisions. Lenders, banks, venture capitalists along with the private investors also review an organization’s accounting information. This is to review its operational profitability and financial health of a company.

According to Warren Jr, Moffitt and Byrnes (2015) over the past few decades several changes have been observed in the business landscape and the evolving nature along with expanding function of accounting profession results in accounting education being within the crossroads. The conceptual framework explained the usefulness of accounting education along with explaining the ways. Moreover, it also explains the key concepts associated with accounting education along with training of importance to academics, practitioners, students, trainers and professional individuals. Indicated that this conceptual framework can explain that accounting education can effectively teach maintaining and recording of book of accounts. Moreover, an academic discipline has a considerable role in research as well as teaching in the academic discipline.

Insufficient Manpower

Figure 1: Conceptual Framework Regarding Accounting Education

(Source: Vasarhelyi, Kogan and Tuttle 2015)

Conclusion

The objective of this paper was to explain the usefulness of accounting education. Considering the same, the paper also has an objective to promote an innovative awareness along with recognizing the use of specific resources that can be known in development of didactic activities for certain technical use. It was gathered from the paper that the accounting mode of delivery associated with accounting education is implemented in the global universities. There are certain general concerns in accounting education; one of them is insufficient manpower. In many nations like UAE, there is lower number of accounting teachers in colleges and universities, since identical attractive opportunities are inherent in the global business arena. Hence, insufficient accounting teachers are a primary setback influencing accounting education in UAE and other nations. It is also explained that education research can act as a public forum on the important concerns specifically the ones involving the basic underlying accounting education. These researchers also indicated that the most vital advantage of the accounting management education is that a student can get well educated in the field of accounting.

References

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