The Symphony of Accounting and Life

Student blogger: V. Aishwarya Singh

When I signed up for an accounting class in high school, I took accounting as a serious profession that only deals with money and numbers and nothing insightful. But having taken accounting for over two years in high school and starting college with Financial Accounting, I have come to realize the connections between life, accounting concepts and philosophy.

The Going Concern

This concept assumes that a company would be able to operate in the foreseeable future and not have to liquidate its assets during the present period of low sales. I connected this assumption with the truth of our lives that “life goes on” and “time does not stop for anyone.” Although we may be facing losses or challenges at the moment, we shouldn’t be demotivated to give up our hopes. The struggles we face in life are temporary, but life goes on. Just like how the company can still run and fill its obligations, we can all survive during the harsh times and make our lives happier again.

The Matching Principle

What is the matching principle? It is a principle according to which the expenses incurred must match with the revenues earned during the specific period. So what is life? Now, isn’t life just the juxtaposition of good and bad experiences? Well then, just how the expenses and revenues temporarily occur during a fiscal year, we face some delightful and some depressing situations regarding our own choices. However, we should always remember that these situations are highly necessary and create a balance in our life. Similar to how we analyze the income statement to figure out what product earns more revenue and must be increased, and what expense is increasing and should be reduced, we can relatively audit our own short comings during harsh times and strengths during successful times to evaluate a prosperous life.

The Historical Cost and Fair Market Value

The Historical Cost Principle records assets on the balance sheet at their nominal costs, while the fair market value estimates the value of property based on its present worth in the market, which could be inefficient during economy fluctuations. Just like how businesses tend to look for profits by keeping up with the new fair market value, and change the historical cost by selling their products at the right time, we tend to get lured by the new ever-changing wants and fancies and ignore our age-old possessions and assets (families). It is true that change is necessary, and we should constantly change and adapt to the new situations. However, we should always hold on and value what we already possess.

Another view would be to learn to accept new changes and ideas in life and try to have a versatile nature in dealing with new changes like the businesses gaining profits from selling at the new higher fair market value.

The Realized and Unrealized Gains and Losses

This concept pertains to the rule that gains and losses are only realized when the actual transactions occur, not when they are only estimated to result. This idea relates to the importance of facts rather than assumptions. It teaches us to be accurate and pragmatic while stating something or when evaluating something. This would enable better decision-making skills and ensure that we don’t get carried away by uncertain “ifs.” On the other hand, we must also be aware of the unrealized values and not just ignore the silent changes taking place.

The Entity Concept

Entity concept, or the personification of a business as a separate business legal entity, separates the business from its owners. The idea of judgementalism is relevant here. When businesses are kept separate from their decision makers, then why should we attach someone with their past and background while judging their capacities? The entity concept in reference to life, is to give all

individuals an equal opportunity and not discriminate someone based on their previous work.

Net Realizable Value

Nothing comes without a cost. The NRV recognizes the value of assets after a reduction of the estimated costs from its sales. This implies to our life by focusing on the essence of our success minus the struggles we went through in order to earn it. The concept also teaches us that we have to pay a certain price in order to earn a certain prize.

Accounting as a department is very crucial to a business. Accounting not only accounts for the transactions of a business, but also teaches an accountant the way to learn from life. With its honest representation policies, it builds the accountant’s personality to appreciate ethics and find meaning in the balancing of natural occurrences.

Posted in V. Aishwarya Singh | Tagged , , | Leave a comment

Don’t Miss the Young Professionals Technology Conference in Houston on Nov. 29

Registration is now open for the 2017 Young Professionals Technology Conference on Nov. 29 at the Federal Reserve Bank in Houston. This daylong event, co-sponsored by TSCPA and the Houston CPA Society, is designed for young CPAs 40 and under, CPA candidates and accounting students. The conference will feature keynote speaker Donny Shimamoto, CPA, CITP, CGMA, past chair of the AICPA IMTA Executive Committee, and sessions on technology, cybersecurity, social media and much more. You don’t want to miss it!

 

View the full agenda and registration details

Posted in TSCPA | Leave a comment

Why Accounting?

V. Aishwarya Singh

A skilled accountant per fiscal year, keeps all frauds and losses away!

Our economy is constantly changing. Research and technological advancements have opened up thousands of luring opportunities for employment: there are new luxuries in the market every day; there are new fields of engineering, medicine, and bio chemistry widening new possibilities for young newly graduated students; there are plans to go to Mars; and there are ideas as crazy as being over ruled by robots! Now, in the midst of all this sci-fi utopia, why would a person want to be an accountant? With the same stereotypical age-old work that’s been done for centuries? Well, among the several reasons, the thrill of accounting, the everlasting demand, the ease of changing work place, and the importance given to an accountant is why.

The thrill of accounting

Ever ask an accountant how their typical day passes, and the immediate and honest reply one gets is that no day is the same for an accountant? Each new sun brings with it new challenges and new accounting balances. The chill an accountant feels when the credits don’t equal debits, or the thrill of closing the trial balance with an accuracy to the last decimal is unparalleled to any other profession.

The responsibilities of an accountant are not just limited to his/her desk and computer, but rather for the company’s proper financial regulation; tax payments; accurate, reliable, and faithful representation of financial records; and auditing and advising how to improve profits. An accountant is seen as a highly responsible and ethical professional because he/she is the first one to question if a fraud is detected.

The everlasting demand

During recessions, when the whole economy faces unemployment, the companies are tempted to lay off employees, however, the company would certainly want to increase their financial controls in order to improve their financial situation. This would lead to the employment of more accountants because the company ‘needs’ someone to bring back their financial position to a stable level that operates efficiently.

Not only can accountants excel in their positions, but also advance in several other certifications that add value to their personal brand, and enable them to take up senior positions globally. Certifications and memberships from AICPA, CGMA, and ACCA recognize the expertise and boost the accountant’s professional value.

Accounting is one field that would persist forever, until of course accountants get replaced by robots. In which case the demand would decline, but still won’t perish because of the fact that accountancy is a skill. No matter how advanced the technology gets, there will always be the need of an accountant, at the least, to program and teach necessary skills to the robots.

The ease of changing work place

Yes, it is true that accountants spend a majority of their time commuting to their client’s place, but it is also true that accountants have the liberty to choose the industry they want to work for. They enjoy a leeway in choosing whether to work at a for or not-for profit company, at a restaurant, major league team, fashion, or technology industry.

Be whatever the industry, every industry ‘needs’ a financial division with at least one accountant, giving accountants a privilege over their other major counterparts who are limited to one specialized industry. Furthermore, accounting, being the language of business, makes it easier for the accountant to understand the company processes through financial reports and learn what decisions should be taken and how financial risks could be mitigated, giving the accountant better chances of entrepreneurial success while changing jobs.

Importance given to an accountant

An accountant is always portrayed as a very respectable, ethical, clever, and responsible professional. The reason being that an accountant carries the load of honest financial representation on his/her shoulders. Money, being the backbone of any business, needs proper controls and management which are fulfilled by the accountant, making an accountant one of the most important people in a company.

Posted in V. Aishwarya Singh | Tagged , , , | Leave a comment

How to Capitalize on Your College Experience

Miguel Francisco Calderon

My name is Miguel Francisco Calderon and I am currently a Junior at The University of Texas at Dallas. My experience as an accounting student is a bit different from many other students as I did not continue my studies full-forced after graduating high school.

I finished my associate degree in accounting from Dallas County Community College in 2014 and joined the work force months after. I worked for three years with a petroleum company doing various accounting roles. I enjoyed working there and getting hands-on experience with what I learned at community college. They really enjoyed having me and pushed me to go back to school. This transition has been a roller-coaster ride of experiences. What I’ve learned is that college is a time where you truly discover yourself and what you are passionate about. How can you capitalize on this experience? Below are some tips that I have for incoming freshman and transfer students.

GET INVOLVED AND BE A LEADER.

Joining organizations on campus shows employers that you have the desire to be active and it is a great opportunity to develop valuable skills. Being a leader takes courage, and it is a great opportunity to learn how to mold your leadership skills that will help you in the workforce.

NETWORK, NETWORK!

We live in a century where technology is taking over and jobs may become harder to achieve. Get to know others, build relationships and establish a network of professionals that are willing to help you and guide you if you ever need it. It’s never too early or too late to network and professionals know this. Do not put yourself down because the next person may seem like a better fit, has a higher GPA or is more outgoing that you. Be confident, be yourself and GET OUT THERE.

HELP OTHERS!

Remember that everyone was new at one point. Be open minded and be willing to help others. You can give them simple advice on interview techniques, study tips and tricks, or how to plan your schedule. This may seem like a small task to you but it can help others tremendously.

 

Posted in TSCPA | Leave a comment

Becker Hosts FREE Excel Skills Webinar on Oct. 17

Becker is offering an exclusive opportunity to participate in a COMPLIMENTARY Excel Skills Webinar, conducted by Michael Brown, Becker’s resident Excel guru. The webinar will take place on Tuesday, Oct. 17 at 1 p.m. CST and 7 p.m. CST. It will focus on Excel’s integration to the CPA Exam in 2018 and the common Excel tools that employees expect you to know, including training in using pivot tables, lookup functions and hot keys. More information can be found in the flyer below.

Register today: https://register.gotowebinar.com/rt/5851674935624111618

148189_CPA_OctExcelWebinar_Flyer

 

Posted in TSCPA | Leave a comment

So, you need an internship… now what?

Robert Murphy

As a college student, I can relate to what it feels like to scramble for an internship before graduating and thinking, “where do I even begin?” There are a ton of things to consider when looking for a potential internship. I am here to hopefully offer a few things to consider that came in handy for me personally when searching for that elusive internship.

1. What is the best fit for you?

One of the best pieces of advice I was given when searching for an internship was to keep in mind the firm that I would be interning for and what type of culture that firm has. Ultimately, you want to be able to be comfortable being yourself at the firm you choose to intern for and you wouldn’t want to feel out of place. The last thing you want to do is commit to a 3-month-long internship for a firm with employees who you can’t even get through one conversation with. The best way in determining if a firm is a right fit for you is getting as much exposure to that firm as possible. This can be through networking events, conversations with current employees or even simply looking on their website. Another thing to keep in mind is that if a firm decides to not interview you or hire you, this isn’t a sign that you’re the worst or that they completely dislike you… It should simply remind you that while firms are looking to hire people who would be a good fit for them, we should be looking for firms that would be a right fit for us as well. It isn’t always about what firm will be paying the most, but what firm will I thoroughly enjoy my internship with.

2. Now that you’ve narrowed down what firms you would want to work for, what type of leader are you looking to serve?

Unfortunately, we all have to start somewhere on the corporate ladder, and 99 percent of the time it will be at the bottom. However, we still have a choice in the leader and management team that we would want to serve under and learn from. At this point, hopefully memories of good bosses and horrible bosses are running through your mind. When considering a firm to intern at, we should be thinking about what style of management does this firm seem to reward or prefer? Is this leader someone that I would someday like to follow and take advice from? Is this a leader that I would be able to count on if things were going wrong? There are a lot of different types of leaders but one important quality I think every leader should have is willingness to serve right next to their followers. Instead of standing over everyone and barking orders, leaders should be looking for opportunities to make those orders easier to accomplish. Everyone performs better under different forms of management, and this is an important question to consider when looking for internships.

3.Lastly, will you be happy there?

If you’re anything like me, then you will be hoping for a full-time offer to come your way after the internship with the firm. We shouldn’t overlook this when deciding what firm to intern for. Is this a firm that I can see myself working for in the long run? Is there room for growth at this particular firm? These are both good questions to be asking yourself when looking for an internship. Everyone is different and will give different answers as to what qualities they’re looking for in a potential employer, but it is always a good idea to have a list of qualities that would make you happy and to do your best to stick to them.

I hope this serves as a good foundation of questions to consider and to build off of while in search of an internship or even a new job. Feel free to add to it and tailor it to your specific interests in employers. Good luck!

Posted in Robert Murphy | Tagged , , , | Leave a comment

Pouring Out – Don’t Attend the Buffet

Blogger: Jacob Walker

Did you get to your current position in life solely due to your own endeavors? Or were there people that helped you along the way? The more thought you put into it, the more you realize how much help you have actually received. Every friend that gave you a piece of advice, the people that raised you making you who you are now, every professor that took the time to share their knowledge, every boss who gave you an opportunity to succeed, they all have one thing in common. They all helped you.

So, what is this buffet the title mentions? And why shouldn’t you attend it? Every single person has received help in some form or another. As this is an incredible thing, someone who attends the buffet and pursues help with an “all you can eat” mentality hinders themselves. There is an element of giving back and assisting others that completes us as human beings. As much as I am poured into, I want to pour out into those around me. The most meaningful experiences I’ve had in my 22 years on this planet involve the times that I have put others first and helped them with little to gain from it myself. There is something innate inside of us that desires to serve others. The more you pursue pouring out into others, the more you grow as a person.

I’ve heard it put beautifully using an analogy. The Jordan River can be found in the Middle East and supports the life of many people living around it. It flows through the Sea of Galilee both entering and exiting it. The Sea of Galilee has both an inflow and outflow feature. There is an abundance of life and nature both inside the sea itself and in the surrounding area. It’s a beautiful sight. However, the Jordan River continues on and ends in the Dead Sea. The Dead Sea has an inflow feature, but there is no outflow to it. As a result, there is no life in the sea and the surrounding area is barren. Isn’t it funny how these ideas can be seen in nature? The sea with inflows and outflows is full of life, but the sea solely with an inflow is dead; it is literally called the Dead Sea. Likewise, we should be both helped by others and help others. Only receiving help and never helping others leads to a result similar to that of the Dead Sea – barren.

The Bible talks about this in Galatians 5:13. It says “You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh; rather, serve one another humbly in love.” How are you doing when it comes to helping those around you? As Anne Frank said, “No one has ever become poor by giving.” Experiencing humanity to the fullest of its extent involves putting others first and being a source of help to those around us. The more you pursue this idea, the more you will grow as an individual yourself.

Posted in jacob walker | Tagged , , | Leave a comment