Accounting practitioners ought to respond to the constantly changing tax systems. Governments globally have adapted tax adjustments to boost economic performance and benefit taxpayers, for example, some government rid income tax for low income earners during epidemics (Sheedy, 2018). Similarly, governments introduce tax changes to raise more revenue to finance development projects. Moreover, in developing countries, regimes increase import custom duty to encourage use of domestically produced goods, thus promoting local industries. Dridi and Boubaker, (2015) explain that accounting practitioners must stay up to date with the tax trends to appropriately advise their customers.
Implication
The enactment of new tax systems affect organization’s effective tax rates, account balances and disclosure of income tax. Hence, companies should develop strategic plans that integrate the ever changing tax systems and adjust their internal controls to ensure accounting transactions are correctly entered in the financial statements (Sheedy, 2018). The plans help in making positive decisions for organization’s future tax variations.
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New Technology
The accounting profession has to deal with the ever changing accounting technological advancements across the world which have converted accountant’s work to that of an advisor (Andronie & Ionescu, 2019). Accountants must embrace new accounting technology to remain relevant in the business and to be in a position to appropriately advice their clients. Computerized programs; for example, mobile accounting and tax software are loaded with task-oriented accounting projects. Accountants must be able to provide professional opinions based on the outcomes.
Implications
The trend demonstrates that accountants must grasp soft skills like critical thinking and judgment for them to be in a position to interpret accounting concepts. Additionally, they must remain open to learning new advancements in technology to meet accounting needs for their organizations (Sheedy, 2018). Businesses have to implement improved accounting practices in computation of financial problems to help reduce errors in calculation of corporate tax.
Good Communication Skills
According to Schmidt and Madison (2009) effective communication is integral for success of any business that deals with workers, suppliers and customers. A good management ought to understand that accounting is a central function of an organization and that good communication skills are imperative for any business. Accounting information is used by the management in making informed decisions for the business, hence budget preparation, financial reports, payroll and income reports need to be presented appropriately to the management and other users of financial information (Sheedy, 2018). Therefore, accounting practitioners ought to be equipped with effective communication skill both verbal and written to provide accounting data that users can understand.
Implications
In the modern world, most organizations consider good communication skill as an important aspect during recruitment process which pushes candidates to take additional training in communication skills. Similarly, companies organize workshops and training programs for their workers to improve on communication skills. Accountants need to have effective communication skills to help them address questions arising from upper management, suppliers, clients, shareholders and well established good relationships with employees to enable seamless running of the business.
Future of Accounting Practices
The responsibility of accounting professionals as business leaders ought to be re-visited to integrate the ever changing business environment that demand constant adjustments and adaptations in organization administration (Brown & Johnstone, 2019). Initially, accountants were viewed as custodians of value and keepers of financial records a role that has changed to being drivers of opportunities into sustainable value creation. Additionally, accounting practitioners have positioned themselves as key machines in delivering strategic plans along with top management to yield financial strength and sustainability of their organizations and ensure that shareholders expectations are achieved (Brown & Johnstone, 2019).
Implications
Accountants must welcome additional responsibilities in the accounting profession to cope with the market’s needs across the world and indeed boost shareholders’ confidence towards investing assets in organizations. Also, the practitioners must be willing to embrace new accounting technologies and engage in continuous learning to enable them to fit in leadership positions.
Growing or Sustaining Accounting Practice
The business must adapt sustainable strategies to thrive in the modern competitive market. Many organizations have discovered that accountants can be strategic partners in realizing a more sustainable future (Gray, 2010). Investors need quality information relating to a firm’s financial performance. Accountants ought to maintain a close communication with investors through integrated reports that disclose both financial and non-financial information. As Sheedy (2018) explain, accountants conduct audits of organization financial statements and provide independent professional opinions about the weaknesses and strengths that helps the firm’s management in adjusting internal controls and making improved decision for improved productivity (Gray, 2010). Similarly, accountants play a primary role in business growth by formulating strategic plans, improving processes and periodically measuring performance.
Implications
Businesses globally ought to recognize that accountants are fundamental resources in the growth and sustainability of organizations. Provision of accurate financial information builds trust and confidence among stakeholders leading to continuous improvement and leveraging of opportunities for organization growth. Furthermore, important accounting changes in organizations are ought to be directed towards enabling performance that guides the management team in incorporating strategies that tap new opportunities.
References
Andronie, M., & Ionescu, L. (2019). The Influence of Cloud Technology In Transforming Accounting Practices. Annals of Spiru Haret University, Economic Series , 19 (4), 27-34.
Brown, R. G., & Johnston, K. S. (2019). Paciolo on accounting . Routledge.
Dridi, W., & Boubaker, A. (2015). The difference between the accounting result and taxable income in detecting earnings management and tax management: The Tunisian case. International Journal of Business and Management , 10 (7), 131.
Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability… and how would we know? An exploration of narratives of organisations and the planet. Accounting, organizations and society , 35 (1), 47-62.
Schmidt, J., Green, B. P., & Madison, R. (2009). Accounting department chairs’ perceptions of the importance of communication skills. Advances in Accounting Education: Teaching and Curriculum Innovations , 10 , 151-168.
Sheedy, C., (2018). The top 8 issues facing accounting practices today
