Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizable finance departments with dozens of employees at large companies.
Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes.
Financial accounting is the process of recording, summarizing and reporting the myriad of transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement, that encapsulate the company's operating performance over a specified period.
Scope of Financial Accounting
Financial Accounting has wide scope and area of application. It is not only for the business world, but spread over in all the spheres of the society in all professions. As accounting is a dynamic subject, its scope and area of operation have been always increasing, keeping pace with the changes in socio-economic changes. It also practiced in non-trading institutions like schools, colleges, hospitals, chartable trust, trust clubs, co-operative society and also in government and local self-government in the form of municipality, panchayat.
Financial accounting utilizes a series of established accounting principles. The selection of accounting principles to use during the course of financial accounting depends on the regulatory and reporting requirements the business faces. International public companies also frequently report financial statements in accordance to International Financial Reporting Standards. The establishment of these accounting principles is to provide consistent information to investors, creditors, regulators and tax authorities.
Skills and Competencies needed in Financial Accounting
- Organization. Accountants are important people. ...
- Time management. Good time-management skills go hand-in-hand in with strong organizational capabilities. ...
- Ability of evaluating financial information
- ability to reflect on one's own work as well as the wider consequences of financial decisions.
- business acumen and interest.
- organisational skills and ability to manage deadlines.
- teamworking ability.
- communication and interpersonal skills.
Job Opportunities and Career Options in Financial Accounting
- Teaching in Accounting
- Corporate Controller
- Information Technology Accountants
- Risk and Compliance Professionals
- Finance Director
- Accounting Software Developer
- Senior Financial Analysts
- Spectator Sports Accounting
- Managerial Accountant
- International Accountant
- Chief Financial Officer
- Cost Accountant Manager
- Anti-Money Laundering (AML) Specialists
- Budget Analyst
- Cost Estimator
- Treasury Analyst
- Tax Accountant
- Credit Analysis Manager
- Payroll Clerk
- Billing Clerk
- Auditing Clerk
- Accounting Clerk
Admission Requirements for the study of Financial Accounting in Nigeria
The O'level subject combination and requirements needed to study Financial Accounting;
You require; Five SSCE credit passes including English Language, Mathematics, Economics and two other relevant subjects.
n UTME, please note that English Language is Compulsory for this course. Therefore, the three (3) other JAMB UTME subject combination needed to study Financial Accounting under the Faculty of Social & Management Sciences in the above Universities include;
Mathematics, Economics and any other Social Science subject.