Accountant Jobs - What is Accounting ?

00:03:23
https://www.youtube.com/watch?v=Yj24JwZVd54

الملخص

TLDRThe video explains accounting as the language of business, highlighting how various audiences (internal users, external users, and the government) interpret business performance differently. It provides a basic business scenario to illustrate profit generation and emphasizes the need for tailored accounting narratives based on the required audience. Internal communication relies on managerial accounting, external reporting adheres to GAAP guidelines, and government communications follow tax codes, ultimately showcasing the adaptability of accounting in conveying the business's financial story.

الوجبات الجاهزة

  • 💼 Accounting is the language of business.
  • 🏢 Business involves creating goods and selling them for profit.
  • 📊 Different audiences require different accounting languages.
  • ⚖️ Internal users focus on accurate information for decision-making.
  • 📈 External users want to see profitability reported according to GAAP.
  • 📝 Tax accounting is tailored for government reporting and tax obligations.
  • 🏦 Banks and investors want to invest based on financial stories.
  • 🔍 Managerial accounting has no standard; it's customizable for internal use.
  • 💰 Businesses may downplay profits to reduce tax liabilities.
  • 🌐 For more information, visit accountingwit.com.

الجدول الزمني

  • 00:00:00 - 00:03:23

    Accounting is described as the language of business, which involves taking raw materials, processing them, and selling the finished goods for profit. The narrative exemplifies a basic business transaction where a product is manufactured for $100 and sold for $200, generating a $100 profit. This achievement is important to communicate to various stakeholders including banks, investors, and government entities. Each group requires specific types of accounting information: internal users utilize managerial accounting, external users rely on financial accounting guided by GAAP (Generally Accepted Accounting Principles), and the government needs tax accounting based on the Internal Revenue Code. While there is flexibility in the way internal users can be informed, external communication must aim for transparency and representation of the business's financial health. Ultimately, the stories told to different audiences can be rooted in the same underlying business actions but will vary in presentation based on the audience's requirements.

الخريطة الذهنية

فيديو أسئلة وأجوبة

  • What is accounting?

    Accounting is described as the language of business.

  • What are the three types of accounting mentioned?

    The three types are managerial accounting, financial accounting, and tax accounting.

  • Who are the internal users of accounting?

    Internal users include managers and decision-makers within the business.

  • Who are the external users of accounting?

    External users include investors, banks, and other stakeholders outside the business.

  • What is GAAP?

    GAAP stands for Generally Accepted Accounting Principles, which guide external financial reporting.

  • Why does the government want to know about a business's finances?

    The government wants to tax businesses, which is why they require specific reporting based on tax codes.

  • How should a business present information to external users?

    A business should present its financial performance in a way that highlights profitability.

  • What is the goal of managerial accounting?

    The goal of managerial accounting is to provide accurate information for internal decision-making.

  • Why might a business want to show lower profits to the government?

    To minimize tax liabilities.

  • Where can I find more videos like this?

    More videos are available at accountingwit.com.

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الترجمات
en
التمرير التلقائي:
  • 00:00:06
    what is accounting accounting is the
  • 00:00:08
    language of business well what is
  • 00:00:11
    business well you could say business is
  • 00:00:13
    like somebody taking a hammer building a
  • 00:00:16
    house and then taking his stuff that he
  • 00:00:19
    made and selling it to somebody with
  • 00:00:22
    money when they make their exchange and
  • 00:00:24
    it's all good another way to look at
  • 00:00:26
    business is that it is a magical box you
  • 00:00:29
    take raw materials put it in the box and
  • 00:00:32
    then it comes out as Goods that you can
  • 00:00:34
    then sell make money that box is
  • 00:00:37
    business so let's say you have a
  • 00:00:39
    business you make something that costs
  • 00:00:42
    you $100 to make and you sell it for
  • 00:00:43
    $200 you have a profit of $100 and
  • 00:00:46
    you're happy I just told you a story
  • 00:00:48
    about a business that made
  • 00:00:50
    $100 so who should we tell our story to
  • 00:00:53
    you might want to tell your story to
  • 00:00:55
    Banks or
  • 00:00:56
    investors Banks or investors want to
  • 00:00:58
    hear your story because they might want
  • 00:01:00
    to lend you money or invest money in
  • 00:01:02
    your business another person who wants
  • 00:01:04
    to hear your story is Uncle Sam he wants
  • 00:01:06
    to tax you we could break it down into
  • 00:01:09
    three different people that want to hear
  • 00:01:11
    your story people on the inside or
  • 00:01:14
    internal users people on the outside
  • 00:01:16
    external users or the
  • 00:01:19
    government The Language by which you
  • 00:01:20
    tell these people stories is sometimes
  • 00:01:22
    called managerial accounting for
  • 00:01:24
    internal users financial accounting for
  • 00:01:26
    external users and then tax accounting
  • 00:01:29
    for government users
  • 00:01:30
    users if you've ever taken an accounting
  • 00:01:32
    class it's usually going to be called
  • 00:01:34
    managerial Financial or tax the actual
  • 00:01:37
    language that external users want to
  • 00:01:40
    hear your information in is gap gaap
  • 00:01:43
    which stands for generally accepted
  • 00:01:45
    accounting principles the government
  • 00:01:47
    wants to hear your story based on the
  • 00:01:48
    Internal Revenue code that is the
  • 00:01:50
    standard by which you must tell your
  • 00:01:52
    story now internal users what's the name
  • 00:01:56
    of the language that they want to hear
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    it's actually whatever you want there is
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    no standard managerial accounting
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    language if you're a business and you're
  • 00:02:06
    talking to an external user you want to
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    look good or show that you made a high
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    profit everyone wants to brag about how
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    good their business is doing however
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    when you talk to the government your
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    objective is to make it look like you
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    made nothing cuz if you're rich they'll
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    take all your money now if you're
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    talking to an internal user your
  • 00:02:24
    objective isn't really to look good or
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    to look like you made nothing it's
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    really just to tell it as accurately as
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    you can
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    cuz that's the information upon which
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    managers and decision makers will make
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    decisions now your story might be the
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    exact same story in every instance but
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    depending on who your audience is you're
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    going to use a different language and
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    each of these languages will actually
  • 00:02:43
    tell a different story even though it's
  • 00:02:45
    based on the same actions of the
  • 00:02:48
    business interview accounting is the
  • 00:02:50
    language of business business is when
  • 00:02:53
    you do stuff for profit when you tell
  • 00:02:55
    the story of your business you're going
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    to be telling it to one of a few
  • 00:02:58
    different options internal users want to
  • 00:03:01
    hear your story based on the language of
  • 00:03:03
    managerial accounting external users
  • 00:03:06
    want to hear it based on Gap and the
  • 00:03:08
    government wants to hear it based on the
  • 00:03:10
    tax
  • 00:03:11
    code for more videos like this visit
  • 00:03:15
    accounting wit.com
الوسوم
  • accounting
  • language of business
  • managerial accounting
  • financial accounting
  • GAAP
  • tax accounting
  • internal users
  • external users
  • government
  • profit