How to become good Accounts person How to become good Accounts person How to become good Accounts person How to become good Accounts person

by CMA.Ramesh KrishnanCMA.Ramesh KrishnanCMA.Ramesh KrishnanCMA.Ramesh Krishnan

Introduction:Introduction:Introduction:Introduction: After a commerce degree as a fresh graduate, we are getting

several career opportunities in commerce field. Accounting and Book keeping is

a very important and major area which we are selecting our career in commerce

field. While selecting Accounting field, mostly all persons starting their career as

Basic Accountant/Accounts Executive positions only in most of the places. But in

this entry level everyone struggling to come out from doubts which arising from

the difference between theoretical knowledge to practical accounts handling

knowledge. In this Article myself try to discuss how to come out from those

struggles and which are the factors need to concentrate and develop to shine in

this field as a good Accounts Person. Here I am discussing the factors in three

broad categories as follows:

I. General factors

II. Specific job factors

III. Development factors

I.I.I.I. General FactorsGeneral FactorsGeneral FactorsGeneral Factors

1.1.1.1. Understanding the business Structure:Understanding the business Structure:Understanding the business Structure:Understanding the business Structure: In every business concern Accounts team is a service team to all other

departments, whatever process in other departments like Sales, Production, HR,

final accounting and finance effect will be in Accounts department. Accounts

team is final responsibility for accounts & finance effects in all departments; So

Accounts team is a heart of the Business unit. So an accounts person need to

understand the business structure/ Organisation structure of working

organization. It will help to work us in comfortable position.

2.2.2.2. Understanding the work flow:Understanding the work flow:Understanding the work flow:Understanding the work flow: Once understood the business/Organisation structure, we required

understanding the work or processing flow of the organization, if it is

manufacturing company then we need to understand from the production to sale

of finished goods, from the input to output where the process flows. In case

service sector, we need to understood the service nature and the work flow. It will

help us to work in correct direction.

3.3.3.3. Understanding the goals of the organisation:Understanding the goals of the organisation:Understanding the goals of the organisation:Understanding the goals of the organisation: As an accounts person, very essentially we need to understand the objectives

and goals of the organisation. This will help us to work in proper accounting

according to the accepted accounting standards with co ordination with the

company goals.

4.4.4.4. Understanding Understanding Understanding Understanding the Business transactions:the Business transactions:the Business transactions:the Business transactions: Basic objective of book keeping is account the financial effect of each and every

business transactions in proper way with applicable accounting rules and

regulations. So we need to understand the business transactions happening in

the organizations.

5.5.5.5. Applicability of statutory Laws, Acts & Rules:Applicability of statutory Laws, Acts & Rules:Applicability of statutory Laws, Acts & Rules:Applicability of statutory Laws, Acts & Rules: Accounts person need to have knowledge about the applicability of statutory law,

acts & rules for the company. It is not only about accounts laws also applicability

of all other laws like general law, Labour law, safety law. It is very essential to

comply with all acts; otherwise non compliance will lead the penalty and other

actions against the company and affect the revenue and profitability of the

company.

6.6.6.6. Understanding the owUnderstanding the owUnderstanding the owUnderstanding the own role and responsibilities:n role and responsibilities:n role and responsibilities:n role and responsibilities: While joining we should understand our role and responsibilities, this is very

important to do our work and correlate to the objects and goals of the company

and account the transactions and comply with the rules and regulations.

In this first part just I enlisted the general factors further parts we start discussing

the specific factors to be considered for becoming good Accounts person.

II. Specific Job factorsII. Specific Job factorsII. Specific Job factorsII. Specific Job factors

1.1.1.1. Understanding the Accounting Structure:Understanding the Accounting Structure:Understanding the Accounting Structure:Understanding the Accounting Structure:

In any organisation, accounts team having their own type of structure which is

the business transactions where it is starting and how it will be captured as

accounting terms, who is responsibility for what. Where the revenue is arising

and the expenses related to revenue how it can be linked all these need to be

understood by every accounts person. In the simple word Accounts person had

broad thinking about the company activities. This is help to make the accounting

in proper way.

2.2.2.2. Understanding the Accounting PoliciUnderstanding the Accounting PoliciUnderstanding the Accounting PoliciUnderstanding the Accounting Policies: es: es: es:

Every company having their own accounting policies. It may be similar to the

other organisation or the different from the others also. Based on the company

business practices accounting policies also will vary. Accounting policies is the

basic guide for an account person. Accounting policy only describe way of

accounting each and every transaction in the company such as revenue

recognition, capitalization of expenses or not, fixed asset accounting, deprecation

and all other activities in the business. So before starting work in any

organisation just go through the accounting policies of the company.

3.3.3.3. Understanding the Accounting Standards:Understanding the Accounting Standards:Understanding the Accounting Standards:Understanding the Accounting Standards:

As we discussed in the point no.2, accounting policies are describe how to

account the business transactions. But where the specific policies are not

available for some transactions that time we need to refer the accounting

standards applicable to the particular company for the treatment of the

transactions. Also on finalization of accounts the role of accounting standards are

important. So study and understand the accounting standard related to the

company.

4.4.4.4. Understanding the taxation structure:Understanding the taxation structure:Understanding the taxation structure:Understanding the taxation structure:

Each industry and every organisation having different tax structure based on

applicability of the direct and indirect tax. As an accounts person we should

aware the taxation. We should have knowledge of income tax rules and other

indirect tax like excise and service tax rules, because while doing day to day

transactions and accounting for that we need to take care the compliances

according to the tax acts. Also like taxation like VAT we should aware the rates

and application of TDS and TDS rates for business transactions. So try to

understand the taxation structure for the industry and business organisation.

5.5.5.5. AnAnAnAnalysis of Financial implications:alysis of Financial implications:alysis of Financial implications:alysis of Financial implications:

As an accounts person we always dealing with money matters and financial

transactions, also whatever the business transactions we are scaling the financial

implications for the particular transactions. We always have the analyzing

capacity of each and every transaction financial implications. It will help us to

plan our finance and control the same.

6.6.6.6. Analysis of Cost implications:Analysis of Cost implications:Analysis of Cost implications:Analysis of Cost implications:

In present business scenario cost control is the very important tool for maximize

the profit of the business, in cost control role of accounts person is very

important. We need to analysis the cost effect and implication of each business

transactions. This will include the control of revenue leakages and correct

approach of cost of the transactions.

In this first part just I enlisted the general factors further parts we start discussing

the development factors to be considered for becoming good Accounts person.

III. Development Job factorsIII. Development Job factorsIII. Development Job factorsIII. Development Job factors

1.1.1.1. Update your knowledge about latest changes:Update your knowledge about latest changes:Update your knowledge about latest changes:Update your knowledge about latest changes:

In all fields changes are inevitable but based on the changes we need to update

our knowledge. Especially in accounting field changes in laws, acts, taxation,

laws, and procedures are very often, in developing factors updating of latest

changes are very essential. So update your knowledge though various ways.

2.2.2.2. Improve your technical skills:Improve your technical skills:Improve your technical skills:Improve your technical skills:

According to the various changes which mentioned in point 1, we need to

improve our technical skills like software and other skills which related to our day

to day work. It is very much required to develop in our job. So improve your

technical skills through training and other ways.

3.3.3.3. Improve your Analytical skills:Improve your Analytical skills:Improve your Analytical skills:Improve your Analytical skills:

As I told in my part 2, we should have analytical skills for analyzing every

business transactions, so we should develop our analytical skills also based on

latest changes and updates. So improve your analytical skills by experience.

4.4.4.4. Improve your communication skills:Improve your communication skills:Improve your communication skills:Improve your communication skills:

Communication is a very essential tool in working. For developing our career in

any field very strong communication skills are required. So improve your

communication skills.

5.5.5.5. Improve your Study habit:Improve your Study habit:Improve your Study habit:Improve your Study habit:

Study habit is a very effective habit to develop the career. Improve your studying

habit. Try to study professional magazine, journal to improve your knowledge in

the field. Studying habits not only improves your habit but also improve your

practical approach in your work and give rich experience.

Conclusion:Conclusion:Conclusion:Conclusion:

In this first part just I enlisted the development factors to be considered for

becoming good Accounts person. These are the factors which is part of improve

your accounting career and develop your style of working.

Thanks & Good Luck

CMA.Ramesh KrishnanCMA.Ramesh KrishnanCMA.Ramesh KrishnanCMA.Ramesh Krishnan