Accounting is a specialized function, critical to organizational performance. Accounting is often described as `the language of business' providing relevant financial information for its managing and reporting purposes. With the rapid pace of technological advancements and sweeping changes brought about by mechanization of the book-keeping function, the accounting function has truly undergone a paradigm shift in terms of job content, evolving roles and career aspirations. The traditional view linking the accountant to number crunching is outdated now, giving place to newer and more strategic roles in the organizational framework. In the changed business environment, boundaries between the accounting and finance functions are blurring as the profession witnesses a transition from being `transaction-intensive' to `knowledge-intensive'.
Accountants have always been seen as an exclusive category of professionals by virtue of their association with numbers. This penchant for numbers is not a fascinating option for those who do not have a matching fantasy. Accounting as a career would thus not have appealed to those with dreams beyond a regimented work area. However, with business, the accounting profession has also evolved, enhancing the scope beyond mere reporting of figures, assuming the role of strategic partner in taking vital business decisions. Today's accountant is involved in decisions that vary from which software to invest in to the implications of a global acquisition or merger. The scope of the profession is growing in such a manner that the finance and accounting function is seen as the path leading to the top.
The business landscape has witnessed continuous change over the recent years and this trend is expected to continue. These changes present new opportunities and risks. Technological advancement has enabled extensive and immediate access to information and knowledge. The changing external environment has also influenced the way businesses operate in a significant manner. Business reach is spreading across geographies, both in terms of transactions and funding options. Technology and communication have shrunk the world, making global operations mainstream. Local knowledge thus does not suffice, and this is all the more important in the face of increased competition. The growing significance of concepts like stakeholder expectations and regulatory compliance has redefined the frontiers of responsibility and accountability. These changes in the business environment necessitate organizations to make quicker and more effective decisions with transparency. Consequently, the pressure and challenges facing the accounting profession have increased. |
