HULAHAKA

Many individuals mistakenly consider bookkeeping and accounting to be one and the same. This confusion is understandable because the accounting process includes the bookkeeping function. However, accounting also includes much more. Bookkeeping usually involves only the recording of economic events and is therefore just one part of the accounting process. In total, accounting involves the entire process of identification, recording, and communication.

The bookkeeping function is often performed by individuals with limited skills in accounting. As a result, it is not surprising that the increased use of computers by business enterprises has resulted in much of the detailed work that is part of the bookkeeping process being performed by machines.

Accounting and You

One question frequently asked by students of accounting is, “How will the study of accounting help me?” It should help you a great deal, because a working knowledge of accounting is desirable for virtually every field of endeavor. Some illustrations of how accounting is used in other careers include’ Agers of businesses took place. As a result, the need to report the status of the business enterprise took on increasing importance, to ensure that managers acted in accord with owners’ wishes. In addition, transactions between businesses became more complex, making necessary improved approaches for reporting financial information.
Our economy has now evolved into a post-industrial age the information age in which the “products” are information services. The computer, as the information processor, has been the driver of the information age.
The pace of business change has also increased, partly in response to international competition. Companies must remake themselves rapidly, and they are doing it by a whole assortment of actions: downsizing, worker empowerment, process re engineering, mergers, alliances, and novel financial instruments. Accounting is constantly adapting to this changing environment, by examining carefully the types of financial information needed in this fast-paced environment.

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