This article will help readers better understand the purpose and function of accounting

1.The purpose and scope of accounting in complex operating environments:

First, we have to understand what is accounting:  

Accounting is the practice of keeping track of a company's financial activities. Summarizing, evaluating, and reporting these transactions to oversight authorities, regulators, and tax collecting bodies are all part of the accounting process. Accounting financial statements are a succinct overview of financial transactions over a period of time that summarize a company's activities, financial status, and cash flows (Fernando,2021)

And since we understand what the definition of accounting is, we can find its purpose:

- Accounting help to maintain full and systematic records of business transactions: accounting's major goal is to preserve a systematic record of financial transactions that allows users to comprehend day-to-day activities in order to acquire a better understanding of the entire organization.

- To ascertain profit or loss of the business: Accounting determines if a firm made a profit or lost money by creating a Profit and Loss Account or an Income Statement. Profit or loss is determined by comparing revenue and expenditure

- To depict financial position of the business: A business is always interested in determining its financial position at the end of a certain period. For this purpose, a position statement called Balance Sheet is prepared in which assets and liabilities are shown. The financial health of a company may be determined by looking at the balance sheet. It is financially healthy if its assets outweigh its liabilities.

- To provide accounting information to the interested parties: One of accounting's goals is to make accounting information available to various parties so that they may make good and realistic decisions. They are provided with accounting information in the form of an annual report.

Scope of accounting

The scope of accounting will affect the following three groups of people: internal users, external users, and government. And there will be a distinct report type for each object. Users will employ GAAP (General Accepted Accounting Principles) (Fernando,2021) for external users, which is a financial statement for external persons including suppliers, banks, consumers, investors, and potential investors. GAAP will offer customers with an overview of a business's financial picture as well as data on the growth and reduction of each cash flow so that they can see if the business or corporation is in excellent shape, how to act in certain situations. The government, like external users, employs the IRC (Internal Revenue Code) as a key form of report (Generally Accepted Accounting Principles (GAAP) - Accounting.com, 2021). Internal users have access to both GAAP and IRC.

2. A critical evaluation of the accounting function in informing decision making and meeting stakeholder and societal needs and expectations:

It may be stated that the have an effect on of presenting accounting records influences all actors withinside the economy:

Functions of accounting for outside customers: outside customers of accounting records are commonly creditors, investors, customers (Users of Accounting Information | Financial Accounting, 2021)

-      -  Creditors: permit them to decide the creditworthiness of the commercial enterprise.

-       - Investors: are involved with the inherent dangers of making an investment and profit. Because it's far crucial to assess the feasibility of making an investment withinside the company

-     -   Customers: to evaluate the monetary scenario of the commercial enterprise, particularly after they stay with it for a protracted time, as it permits retaining a strong supply of commercial enterprise.

Functions of accounting for the government (Users of Accounting Information | Financial Accounting, 2021)

-       - Legal authority: guarantees that it conforms to policies and guidelines and that it protects the pastimes of these concerned who depend on such records.

Functions of accounting with inner customers: the customers of inner accounting records are commonly management, employees, and owners (Users of Accounting Information | Financial Accounting, 2021)

-       - Management: significantly enables the management withinside the planning, control, and decision-making process, supporting the supervisor to carry out his task better.

-       Employees: use accounting records to recognize the monetary health, sales, and profitability of the commercial enterprise to decide their stage of task security, capability destiny compensation, blessings retirement, and task opportunities

      - Owners: examine the viability and profitability in their investments, it additionally leads them to decide any destiny direction of action.

3. The main branches of accounting and job skill sets and competencies

In spite of the fact that there are eight branches of accounting, McAdam & Co says there are three primary categories of accounting. These are tax accounting, financial accounting, and management accounting. (Segal, 2021)

3.1 Tax accounting:

Tax accounting is a set of accounting systems that focuses on taxes rather than the appearance of financial statements in the public domain. The Internal Revenue Code governs tax accounting, laying out the particular procedures that businesses and individuals must follow when filing their tax returns. (LEA, 2021)

A tax accountant's job is to help clients and businesses with their financial and income tax statements. These competent individuals do research, analysis, and interpretation of tax law. Preparing payments, detecting tax savings, and assessing tax difficulties are all part of their job.

3.2 Financial accounting 

Financial accounting is a part of accounting that entails the process of recording, summarizing, and reporting a wide range of transactions arising from corporate operations throughout time. (WILL, 2021)

Financial accountants are in charge of keeping track of their company's finances. They are in charge of maintaining financial accountability in areas such as payroll, taxes, and spending.

3.3 Management accounting

Management accounting, often known as managerial accounting, is a method of delivering financial information and resources to managers to assist them in making decisions. Management accounting is different from financial accounting only in that it is used by an organization's internal team.

Management accountants play the role of risk managers, budgeters, planners, strategists, and decision makers. They do the job that assists the owner, manager, or board of directors of the organization in making choices.

4. Accounting systems and the role of technology in modern-day accounting:

An accounting system is a collection of accounting systems that work together to handle a company's revenue, expenses, and other financial activities. Purchases (expenses), sales (invoices and income), commitments (financing, accounts payable), and other financial activities can all be tracked using an accounting system. The goal of an accounting system is to keep track of company transactions, aggregate them into reports, and present them to decision makers so they may monitor, assess, and improve operations.

The role of technology in modern-day accounting

-       E-Accounting, often known as online accounting, is a relatively new invention in the accounting sector. All of your transactions will be recorded in an internet server or database, similar to a website, blog, or web blog. However, login id and password will be used to open or create accounts. E-Accounting is still in its infancy, but by 2010, it will almost certainly be commercialized. E-Accounting has been adopted by a vast number of businesses. Both the accountant and the employer are pleased with E-Accounting because it is inexpensive and free of software errors or failures.

-       Accounting software or the Excel application has been found to effectively eliminate data inaccuracies, reduce costs, and improve efficiency when used in accounting tasks.

-       Timeliness in data processing and information provision: The capacity to compute, accelerate, access, share, and transmit data across computer networks has aided in the timely and accurate processing of accounting data...

5. 5. Issues of ethics, regulation and compliance and the extent to which they are constraints or threats to the organization:

It can be seen that becoming an accountant is not difficult, but becoming a good accountant with professional ethics is extremely difficult. During the past 20 years, we have witnessed many financial scandals, where accounting is an important link in those scandals. For example, the financial scandal of Toshiba company in 2015 Toshiba Corporation's management has utilized accounting methods to exaggerate profits in various ways to beautify the financial statements, concealing losses due to inefficient operations while also distracting investors. The consequences of that scandal not only caused economic losses to Toshiba and Japan, but also caused many people to lose their jobs. Through this, it can be seen that the role of professional ethics is very important for an accountant

Professional ethics of accountants and auditors

-      -  Professional ethics principles of integrity: This principle requires all professional accountants to be candid and honest in all their professional relationships.

-      -  Principles of professional ethics about objectivity: The principle of objectivity requires that all professional accountants and auditors do not allow favoritism or conflict of interest.

-       - Ethical principles of confidentiality: Professional accountants and auditors must not disclosure of information obtained from professional and business relationships outside the accounting, auditing firm or the enterprise or organization where they work without the consent of an authorized person.

                                                 References

Accounting.com. 2021. Generally Accepted Accounting Principles (GAAP) - Accounting.com. [online] Available at: <https://www.accounting.com/resources/gaap/> [Accessed 11 November 2021].

Courses.lumenlearning.com. 2021. Users of Accounting Information | Financial Accounting. [online] Available at: <https://courses.lumenlearning.com/finaccounting/chapter/users-of-accounting-information/> [Accessed 11 November 2021].

Investopedia. 2021. Financial Accounting. [online] Available at: <https://www.investopedia.com/terms/f/financialaccounting.asp> [Accessed 11 November 2021].

Fernando, 2021. Accounting Definition. [online] Investopedia. Available at: <https://www.investopedia.com/terms/a/accounting.asp> [Accessed 11 November 2021].

LEA, D., 2021. Tax Accounting. [online] Investopedia. Available at: <https://www.investopedia.com/terms/t/tax-accounting.asp> [Accessed 11 November 2021].

WILL, K., 2021. Financial Accounting. [online] Investopedia. Available at: <https://www.investopedia.com/terms/f/financialaccounting.asp> [Accessed 11 November 2021].