Accounting Vs. Auditing: Which Is Which?

Accounting and auditing are two processes important in businesses. While many individuals confuse accounting and auditing’s purposes, people who have or are planning to build business ventures should be aware of its functions.The process of auditing begins when accounting ends. Accounting is when companies keep track of monetary transactions. It also involves reporting financial statements of the business. There are three branches in accounting: financial accounting (maintaining, grouping, processing, and analyzing financial reports), cost accounting (identifying key costs), and managerial accounting (planning and support).

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Auditing, on the other hand, is the process of determining the accurate picture of accounting books. It happens after accounting in a certain timeframe (usually a year) is completed. While accounting and auditing are related fields, auditing is a much wider one. It involves an understanding of tax rules, accounting standards, and even the knowledge of various financial activities and transactions. Excellent communication skills are also required in auditing.

Auditing is divided into two: external and internal auditing. External auditing is performed by agencies outside the company. Many countries require companies to have their financial statements audited by external agencies. External auditing is sometimes required by court order, especially if a company declares bankruptcy, or if they have been called out for fraudulent activity. Internal auditing is done to understand various accounting processes and risks. It can be done by employees of the company or by an outsourced agency.

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Eddie O’Brien is the CEO of the Americas at Arvato Bertelsmann. He has worked as an executive for various companies including Microsoft and is also a certified public accountant. Visit this blog for related reads.

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Accounting Vs. Auditing: Which Is Which?

Handy Accounting: Mobile Apps For Accountants On The Go

For decades, accountants relied on handwritten ledgers with computers slowly crawling in as a must-have in the office. With the advancement of technology, knowledge in software like QuickBooks and Excel are considered essential for accountants.

These days, many accountants have their ledgers and account records on the palm of their hands—specifically, in their ubiquitous mobile phones. Here are some mobile apps that are great for accountants and other finance professionals.

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FreshBooks

FreshBooks is a great way for accountants to make invoices, file taxes, organize expenses, and track receivables. Available for free on mobile for FreshBooks subscribers, it also allows clients to make fast payments via credit card, e-checks, and PayPal.

Mint

Mint may be tagged as a personal finance app, but it is also useful for small business accountants and entrepreneurs. Users can add bank accounts and credit cards, and the app will help automate recorded transactions through easy-to-read graphs.

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QuickBooks

QuickBooks now comes in a mobile edition. Just like its desktop version, it offers accounting tools to help users manage and track their finances. While it comes with a free 30-day trial, users who have active subscriptions to QuickBooks may get the app for free.

Eddie O’Brien, a certified public accountant, currently serves as the CEO of the Americas at Arvato Bertelsmann. Prior to that, he spent years working for Microsoft. Visit this blog for related updates.

Handy Accounting: Mobile Apps For Accountants On The Go

Why Accountants Can Make Good Leaders

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Image source: treelineassociates.com

Accountants have made quite a name for themselves in the corporate world. Almost every corporate entity survives, in large part, due to the success of its accounting operations.

Because their roles are crucial, accountants have had very rewarding careers, and often, they have taken the route of owning their independent businesses, which are likely to have become successes as well. Here are a few reasons as to why they can be good leaders.

Accountants typically have strong organization skills. This is what enables proper delegation of tasks and prioritization of goals. Doing these the right way can dictate how successful a company’s overall management will be.

It is typical too of accountants to be very detail specific. As looking for small mistakes in a balance sheet can be likened to finding a needle in a haystack, accountants’ brains are hardwired into this kind of orientation. This kind of talent is most useful, especially when dealing with people in an organizational framework.

Another reason why accountants can be reliable leaders is their skill to make decisions fast. It so happens that accountants are quite immersed in a certain environment that can also speed up their ability to classify things with much success. In leadership, this makes for swift decision-making that enables actionability.

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Image source: accouting-leader.ro

Accounting is no joke, and neither is the business of leadership. When these two combine, they can make a strong foundation for a powerhouse corporate entity to make waves soon enough.

Edmund O’Brien is the CEO of the Americas at Arvato Bertelsmann. He is a successful leader who started out as a certified public accountant. To get more business insights in his field, visit his profile on LinkedIn.

Why Accountants Can Make Good Leaders