Accounting is a structured way of keeping records that involve maintaining financial and business transactions. It usually takes place through analyzing, summarizing, and verifying financial results. It involves transactions expressed in monetary terms. Accounting cannot take place without a professional in place, like an accountant. The four main accounting areas include public accounting, governmental accounting, management accounting, and internal auditing.
The prominent roles of an accountant include the following:
• Organizing and maintaining records.
• Examining account books to make sure they reflect accurate information.
• Preparing tax returns.
• Suggesting ways of increasing revenue.
• Evaluating financial operations.
These are some of the roles of an accountant. Let us jump to the unique challenges that accounting has faced in the recent pandemic and ways of learning. The effects have been devastating, especially in the business world, with many uncertainties. Like any other profession, it has encountered its fair share of tribulations. Here are some of the challenges and some of the resources of learning about accounting.
1. Professional training to handle vulnerable businesses
Accounting involves many financial records and forecasting what will happen in the future. With the pandemic hitting hard, this has become a challenge. Companies are making losses daily, having to liquidate their assets. Getting professional training and certification in this uncertain time whereby many businesses are shutting down is key in salvaging these businesses. It has become an area of great concern for many accounting professionals, especially auditors. The various accreditation bodies help professionals acquire certified public accountant certificates.
2. Incorporating virtual lessons on accounting
The pandemic has caused a paradigm shift in the way people relate to each other, with a lot of social distance being practiced. The accounting scene has significantly been hampered, especially the physical learning aspect. With the advent of online learning classes, this has been taken care of. It involves study materials being availed on online platforms and even examinations administered virtually. The digital space has positively impacted this field. In fact, there are accounting resources available for professionals and those studying for their CPAs.
3. Involving accounting coaches on matters involving taxation
It is mainly in the public accounting sector. The coaching aspect involves offering step-by-step tutorials on all aspects of taxation. It includes filing taxes, claims forms and calculating the value-added tax on items. It is what makes an economy continue thriving. With the pandemic hitting hard, this part of accounting has been adversely affected. There are tax obligations that each individual and business should pay within a certain period.
The pandemic has hampered many companies, with many downsizing employees and other resources. It has made the tax accountants face many challenges by recording discrepancies in the tax returns. In addition, it hasn’t proved easy to come up with plans that enable the company to reach its desired goals. The reason is that the pandemic has rendered most companies to be on the lifeline.
4. Through the trusted accounting mentors
In recent times most accountants have acquired mentors. Most companies have ended up restructuring due to the current economic situation. There have been numerous mergers and acquisitions that affect financial reporting because of discrepancies. It can pose a challenge to a newbie accountant.
In addition, it can cause an increased workload to an accountant profession in the case of mergers where different companies have different accounting records that need to be updated and checked. An accounting mentor will guide you on ways to go about this.
A pandemic may cause adverse effects that may take a lengthy period to recover. With this in mind, it is best to come up with ways to counter the above challenges that the accounting profession has faced. Some of the methods may include adopting new technology and offering ventilators for businesses on the verge of collapsing. Every challenge creates room for making changes, paves the way for learning, and this field is no exception. The several ways of adapting to the post-Covid situation include data literacy and value creation.