Challenges Of Accounting In Global Organizations: Personal Reflections And Future Implications

The Challenges of Accounting in Global Organizations

The report is a reflective journal about overall personal learning from challenges of accounting in global organization. These days, it is important to understand that there are number of new technologies which are based on developing, ruling as well as regulating so many transformations which administer costs from time to time and there are accountants who will worry about their future role (Guthrie and D. Parker, 2014).

It is also simpler than ever to generate the website and immediately start a firm from anywhere and there is rise in so many kinds of accountants including qualified and unqualified one that can pose some serious issues in this sector specially unqualified accountants. In my research, I have understood while going through number of books and studies that at the time of selecting accounting practices, very little percentage of businesses took qualification of an accountant seriously.

This is primarily because of the reason there is no proper setup or regulatory based laws and anybody has the liberty to call themselves a working accountant without any prior training and learning. There is no specific rule in most of countries for them to pass the exam and join a professional body which makes them subject to any type of professional standards (Guthrie and D. Parker, 2014).

It is also important to understand here will limited knowledge the unqualified accountants and people similar in accounting field are yet working for businesses and there are companies which are turning to them for help as well as guidance for number of reason. There is also a risk that any kind of business must take and receive a lot of bad advices which malign the reputation of overall profession and it impacts negatively on development as well as on growth (Guthrie and D. Parker, 2014).

The rise in the significance of management accounting process is evolving over a period of time for many years to come but some kind of CPAs also mentions that such fields must be handicapped by lacking a proper structure as compared with certain strict standards which are applied more or sometime less on international level by properly auditing as well as reporting it financially. This might further modifies with release in proposed accounting based on global management which is designed especially to develop a proper framework in order to bring more consistency in management accounting practices worldwide (Bartram et al., 2014). This principles is based on America Institute of CPAs and the based in London UK with the name of Chartered Institute of Management Accountants. It is further subjected to an overall ninety day consultation time which ends sometime back and assisted management accounting to take it into global platform.

The Development and Significance of Management Accounting

From an international point of view it is important to provide a proper blueprint for so many rigorous forecasting which is able to meet the requirements of the organization. The main aim is to help the management accounting professionals and also build many high performing organizations (Albu et al., 2014).

In countries like Hong Kong, there is a developing popularity of management accounting which mainly leads to an Institute that is based on a module in its present Financial Controllership programs which is presently under development.

The study cleared one thing that management accounting is a developing trend and there will be a lot of changes as far as work is concerned. There are many management accountants that are present in market and they require having some level of proper knowledge. We are also trying to have some control on the program as a method to deal with the requirement for more amounts of education as well as the management accounting. The proposed management based on accounting principles further becomes a golden standard for number of accountant to be able to adopt and also use same for training motives (Prencipe et al., 2014).

Expansion on global platform actually means that business these days are trying to reach new customers since there is rise in profit as well. With all kind of uncertainty in coming time and with all the issues that have yet to see themselves since there are rules for conducting business on international level that I as a professional must be based on leaping into new global work. In the end the important challenge faced in the present accounting industry as per number of experts and it is based on domestic level trend towards so many consolidations of companies (Hyndman and Liguori, 2016).

Since there is rise in costs in every sectors, reduction in overall overheads and expenses as well as sharing the resources with expansion in offers is based on providing a more different selection of services to customers which is more sensible. There are number of accounting based industry where people often argues that company must consolidate and provide a solution to the issues faces because of number of accountants (Al Ariss, 2014).

It is also important to focus on the real issues and recognize the kind of services that client is interested in knowing. While offering anything and become a one stop place that is not important to motivate. For me as a professional it has become important to aim on real values of management accounting since it will help in delivering above and beyond on them and secure the future (Brusca et al., 2016).

Accounting in International Business

I read case in my research about Phil Knight who is now known as a founder of Nike however, people must understand that he started his career as an accountant. It is actually important to understand that accounting is primarily related to people profession and a lot of people still feel that accountant spend most of their time sitting and dealing with numbers which in reality is a misconception. There are so many accountants that are working around the clock with number of other people to solve business issues properly (Koumbiadis, 2014). For that they require, a very strong base for analytical skills and it is important to be able to test financial based data but it is also important to also be able to work in an effective manner with colleagues. It is important to have good interpersonal skills and since it is also important to write as well as speak properly and also present all kinds of financial data in terms of people that can understand and also require good communication skills as well.

With all the discussion previously there was a lot of challenges as well which the companies are facing these while dealing with management accounting and its application in international business. However it has become crucial to rise to them and if people are aware of any kind of issues, it is important to take the important steps to support the clients with new kind of needs that people might face. The good news here is that in the present accounting industry which is still seen as most reliable and constantly developing professional relationship with different industries and providing a support to new kind of businesses with future looking right (Hoekstra., 2014).  

There are number of public firms that provide clients with proper accounting as well as tax based services in return for fees. I am actually planning to learn about that since there are so many members of such company who are actually certified as public accountant and who have also met right education and work need set up by the state and clear a tough exam. The public accounting companies are offering consulting as well as tax based services, there is a hallmark of this profession in properly performing audits externally (Larionova, 2016). The public accountant also evaluates a financial statement of the company and also submits an opinion on whether they are well prepared according to the GAAP. This boosts the confidence and trust of people. So the future plan is invest efforts more in understanding and learning about this subject area.

Conclusion

My understanding related to this told me that there are many challenges for accounting in global organizations however, as number of new technologies continue to grow, there are rules and different regulations based transformations and with rise in cost, number of accountants and future professional like me are worrying about what the future holds for us. Trust is actually a traditional base for number of financial companies which remain low for most of the time but accountants are still most reliable source for any kind of advice for so many kinds of businesses. In order to maintain as well as live up to the work, accountant should also be well aware of so many important challenges faced by the industry in the present time

Reference

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Albu, C.N., Albu, N. and Alexander, D., 2014. When global accounting standards meet the local context—Insights from an emerging economy. Critical Perspectives on Accounting, 25(6), pp.489-510.

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Hoekstra, A.Y., 2014. Water scarcity challenges to business. Nature climate change, 4(5), pp.318-320.

Hyndman, N. and Liguori, M., 2016. Justifying accounting change through global discourses and legitimation strategies. The case of the UK central government. Accounting and Business Research, 46(4), pp.390-421.

Koumbiadis, N., 2014. Morality, ethical awareness and ethical behavior in business: challenges for twenty-first century organizations. Journal of Accounting & Organizational Change, 10(2).

Larionova, M., 2016. Making global economic governance effective: hard and soft law institutions in a crowded world. Routledge.

Prencipe, A., Bar-Yosef, S. and Dekker, H.C., 2014. Accounting research in family firms: Theoretical and empirical challenges. European Accounting Review, 23(3), pp.361-385.