What is commonly known today as “cost accounting” (defined as “The discipline of estimating, tracking and controlling product and service costs”) didn’t start until the late 18th century, and was spawned by an unlikely source—a world famous potter. Josiah Wedgwood was a highly successful potter when a depression hit, and he discovered that not only were his clerks ignoring much needed paperwork, they were also stealing money hand over fist.

He took the time to examine the books in detail, noting inaccuracies and becoming aware of the importance of calculating overhead into the costs of his pottery. He hired a new clerk and began weekly accounting reviews, and according to historians, the concepts of “economies of scale” and “sunk costs” were discovered. He changed the prices of his pottery to reflect the influence of demand, creating both a high-end line and a lower quality mass market line. Wedgewood’s company was one of the few to survive that depression.

It took another fifty years or so for the occupation now known as “accountants” to come into vogue. In the mid-19th century, a group of clerks in London advertised their services as “accomptants.” As business regulations increased along with taxes, the need for professional number crunchers became clear. The first accounting firm opened in 1845 in London, but accounting technology and technological advances in accounting such as accounting software didn’t come until much later.

Early Technology

Accounting technology has always played a role in keeping track of numbers, and the idea of using machines to solve mathematical problems goes back centuries. Leonardo da Vinci actually designed a machine he called the “Codex Madrid” that contained thirteen wheels that registered digits.

While there were several other attempts to build a numbers calculator, it was Blaise Pascal, a French scientist, who invented the early calculator (interestingly enough, he also is credited with inventing the roulette machine and the wrist watch).

In 1885, William Burroughs invented the first working adding machine. The first batch of machines didn’t sell very well since Mr. Burroughs was the only person who could use them, so they were recalled, and the corrective automatic adding machine was invented. Naturally, this model sold much better.

Adding machines and then later—much later—calculators made the job of accounting much easier. They led to fewer mistakes, greater accountability, and sped up the work of the average bookkeeper or accountant. Technological advances in accounting always mean increased speed and efficiency.

The 20th Century Information Revolution

While there were subtle changes in the field of accounting from its early days through the 1970s, the job remained virtually the same: paper records of columns of numbers. But with the invention of the computer and accounting software, that all changed.

In 1930, Vannevar Bush, a professor at MIT, built an electronic differential analyzer. Other inventors such as Konrad Zuse and Howard Aiken built hybrid binary arithmetic machines and used electric relays to calculate sums. Professor Aiken worked with IBM, and in 1942 they built what could be called the first computer. Over the course of the next fifty years, massive computers capable of only simple calculations went from filling entire rooms to the small desktop computer most of us use at home and the office today.

Computers and accounting software allow accountants to use electronic spreadsheets—eliminating the need for adding machines, calculators, and pencils and ledgers in one fell swoop. It became much simpler for accountants to keep track of information on a minute-by-minute basis and completely eliminated most mistakes. This has led to greater efficiency and accountability, and has changed the face of accounting considerably.

New Technology Leads to New Risks

Of course, all the technological advances in accounting and accounting software is prey to sabotage and other forms of destructive action. Fraud is still possible. But this has led to new areas of accounting work, such as forensic accounting. New computer programs help track any attempts to initiate fraud. This area of accounting protection and investigation will continue to grow and evolve.

Accounting Technology at Home

The computer has not only revolutionized business accounting, it’s also changed how people keep track of their own money. Banking online, software programs that do your taxes, and automatic bill paying have dramatically altered how the individual handles their money.

Most of us are grateful that we no longer have to use an abacus to balance our checkbooks, or clay tokens to figure out the grocery budget. As accounting technology continues to evolve, keeping track of our money will be easier and easier. Thanks to some early mathematicians and accountants, crunching numbers is more accurate, accessible, and error-proof. In the future, new technological advances in accounting will no doubt make our lives easier.

The first step in any area of study is to review the history of the field. Accounting is a career path anticipating strong growth in the coming years. Students majoring in accounting can be assured of long-term career stability and success. If you have a head for numbers, consider becoming an accountant.

As a CPA, you may be branding your practice separately from yourself. No matter how big or small, your firm’s brand will color your personal brand. After all, isn’t that your last name on the door? It is therefore vital to elevate your practice’s brand by becoming a Branded Expert.

Your personal brand is comprised of three elements:

• Competency;
• Character; and
• Charisma and is focused by Community perception.

In short:

• Competency = your know-how.
• Character = your inside values and outside demeanor.
• Charisma = attractiveness (in simple terms, people skills and confidence).
• Community perception is how your market sees you.
• Too many disparate audiences = fuzzy brand perception.
• One market lens = clear and sharp brand.

Remember: you may fire the branding irons (marketing materials), but the brand that matters is the one that burns in their brains.

Personal Brand Innovation

Personal brand innovation occurs through your Competency and Character. Thought leaders exhibit Competency Innovation by adding to their field’s body of knowledge. This can be done through research, studies or simply through neologisms. Wikipedia defines, “A neologism is a newly coined term, word or phrase that may be in the process of entering common use, but has not yet been accepted into mainstream language. Neologisms are often directly attributable to a specific person, publication, period or event.” For example, Clay Christensen’s famous neologism is disruptive innovation. Thought leaders are taxonomists, categorizing and classifying the world around them.

How many copyrights, trademarks, titles (and URLs) have you coined? How often do others use your phrases? The more words you coin and others use, the better it is for your brand. Conversely, as neologisms gain mainstream usage, attribution is often lost. Aspirin is a classic example.

Character Innovation, in other words, is your personal style. To paraphrase Sting, “A recording artist’s responsibility is to have a signature sound. Whether you like the song or not, you should instantly know it’s them.” The same can be said about your looks; e-mail me for my article, “What Are Your White Wires?” Of course, your image governs your personal brand. A great definition of character is “who you are when nobody is looking.”

Your brand is also governed by your beliefs, values and hobbies. The causes to which you dedicate your time and resources shape your brand perception. When I help CPAs write their professional bios, I prod them to include a bit of their personal values that isn’t “motherhood and apple pie.” What distinguishes you from the inside? Truly, your obscure (if not, eccentric) passions showcase your sense of innovation.

How would a caricature of you look? If someone were to imitate your speech pattern, dress style, sense of humor and other mannerisms, what would they do? The more obvious, the more branded you are.

In the TV show, Seinfeld, remember when Seinfeld bought that expense suede jacket? He didn’t think it “was him.” Kramer retorted, “that’s more you than you’ve ever been!” You need not be fake, just be a refined version of who you are.

Conclusion

Your language and style may not be fully branded (or “packaged”) as yet. Start by reflecting on the italicized questions above and note this thumb-rule: What you repeat is what you brand. Repeat your neologisms. Repeat your style. No need to rinse; just keep repeating. Then, practice being a Branded Expert.

Writer: Vikram Rajan helps CPAs author blogs, newsletters and LinkedIn updates through the phoneBlogger.net program. Read more marketing ideas at his PracticeMarketingBLOG.com.

The School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia is organizaing for the sixth consecutive time, the International Management Accounting Conference (IMAC) in Kuala Lumpur, Malaysia.  The conference provides a platform to disseminate and exchange ideas, disccuss issues and research findings on managing innovation and sustaining excellence.  IMAC is expected to attract prominent scholars and practitioners to present their work at the conference.   Submission of high-quality, unpublished original manuscripts are cordially invited.

Selected papers will be considered to be published in
Asian Journal of Accounting & Governance.

Keynote Speaker:

Professor Margaret Abernethy
Sidney Myer Chair of Commerce
Dean, Faculty of Business & Economics
The University of Melbourne

THEME
“Managing Innovation and Sustaining Excellence”
Sub-themes include but not limited to:
- Information and Control Systems
- Multidisciplinary Perspectives of Performance Management
- Corporate Governance and Accountability
- Government Governance Risk and Earnings Management
- Technology and Knowledge Management Social and Environmental Issues
- Contemporary Issues in Accounting
- Interrelationship between Accounting and Other Disciplines
- Changing Paradigm in Accounting

Organizer: Univeriti Kebangsaan Malaysia

Visit Website

1.    Konflik kepentingan antara auditor dengan perusahaan.
Laporan hasil audit dapat memberikan fakta dan evaluasi atas perusahaan yang memungkinkan investor tidak menanamkan dananya ke perusahaan atau kreditor membatalkan kucuran kreditnya ke perusahaan. Selanjutnya, hal ini berdampak terhadap merosotnya nilai perusahaan yang tercermin di dalam turunnya harga saham di pasar modal, sehingga manajemen mendapat sorotan tajam. Dalam beberapa hal, manajemen dan pemegang saham memiliki kesamaan pandangan atas hal ini, meskipun dengan alasan yang berbeda, yaitu keinginan laporan keuangan yang ‘terbaik’ dan ‘impresif’ untuk pihak ketiga. ‘Perusahaan’ (yaitu manajemen) dengan persetujuan secara diam-diam, akan berusaha mempengaruhi laporan auditor untuk memberikan laporan yang diinginkan kepada pihak ketiga. Namun, jika auditor yang bekerja dengan berlandaskan standar profesional dan integritas etika yang tinggi, maka akan menciptakan konflik kepentingan.

2.    Konflik kepentingan pemegang saham dengan manajemen
Pemegang saham melakukan evaluasi kinerja atas aktivitas manajemen perusahaan berdasarkan laporan yang diberikan oleh auditor. Seringkali pemilihan auditor dan besaran fee audit dilakukan pada saat Rapat Umum Pemegang Saham. Kewenangan dalam pemilihan auditor adalah hak para pemegang saham sebagai akibatnya maka laporan hasil kegiatan auditor sering menentukan sehingga fee dan kebebasan auditor tergantung kepada laporan yang dibuatnya. Di lain pihak, manajemen ingin mempengaruhi hasil audit untuk memperlihatkan kinerja yang menarik kepada para pemegang saham. Akibatnya, auditor dapat masuk terjerat dalam konflik antara kepentingan pemegang saham dan kepentingan manajemen.

3.    Konflik kepentingan antara auditor dengan standar profesional
Benturan kepentingan antara auditor dengan standar profesinya seringkali terjadi. Auditor mungkin berada dalam situasi yang menguntungkan untuk dirinya sendiri dengan melanggar atau tidak melaksanakan standar profesional. Auditor dapat meningkatkan nilai tawar dengan perusahaan untuk mendapatkan keuntungan ekonomis dengan mengabaikan fakta-fakta penting atau menafsirkan secara keliru yang menyalahi standar profesional. Auditor mungkin dapat juga tertarik untuk menyetujui kehendak manajemen daripada patuh kepada aturan yang ditetapkan oleh profesi. Hal ini merupakan konflik internal antara diri auditor dengan integritas profesionalnya.

A conflict of interest is a situation in which some person P (whether an individual or corporate body) has a conflict of interest. P has a conflict of interest if and only if (1) P is in a relationship with another requiring P to exercise judgement in the other’s behalf and (2) P has a (special) interest tending to interfere with the proper exercise of judgement in that relationship.

Ada 4 (empat) kata penting dalam definisi konflik kepentingan di atas, yaitu: (1) hubungan (relationship), yaitu merupakan hubungan fidusia dengan melibatkan pihak orang yang dipercaya untuk menilai pihak lain (2) keputusan (judgement), artinya keputusan yang dibuat harus dapat diandalkan berdasarkan syarat pengetahuan, keahlian dan kompetensi tertentu.(3) kepentingan (interest), yaitu sesuatu yang mempengaruhi loyalitas, perhatian atau emosi atau situasi yang membuat keputusan seseorang kurang dapat diandalkan, dibandingkan dalam kondisi normal dan (4) keputusan yang tepat (proper exercise of judgment), artinya adalah keputusan diharapkan yang sesuai dengan aturan dan kode etik profesional.

Sejak terkuaknya skandal akuntansi yang banyak melibatkan auditor, maka memunculkan pertanyaan publik tentang independensi dan peran auditor (Cooper & Neu, 2007). Akuntan publik sering menghadapi konflik, yaitu konflik antara kepentingan individu dan kepentingan masyarakat di sisi lainnya (Gowthorpe, 2005). Akuntan Publik merupakan sebuah posisi yang unik, dia disewa dan dibayar oleh klien namun melayani jasa utamanya kepada pihak ketiga seperti investor dan calon investor, kreditor dan lain-lainnya (Lavin, 1976). Aturan Etika Akuntan Publik (2001) menyatakan bahwa akuntan harus mempertahankan sikap mental independen di dalam memberikan jasa profesionalnya.
Tugas akuntan publik selain menjaga kepentingan publik juga harus independen, harus juga menjaga nama baik profesi, namun akuntan publik juga harus memenuhi ambisi pribadinya untuk mengembangkan karirnya. Berbagai kepentingan yang dihadapi oleh akuntan publik tersebut seringkali akuntan publik berada pada situasi yang sulit. Lebih lanjut, akuntan publik sering dikritik karena adanya kasus ‘opinion shopping’ dalam praktek kegiatannya. Integritas dan menjunjung tinggi kepentingan publik adalah pondasi utama  dalam profesi akuntan publik.

For the CPA profession, the use of IFRS by U.S. publicly held companies will create the need for effective training and education.  Companies will use IFRS only if they and their auditors have been thoroughly trained, and if their investors and other users of their financial statements — such as analysts and rating agencies — understand IFRS as well.  At the moment, most accountants in the United States are trained in U.S. GAAP, not IFRS.  Most specialists, such as actuaries and valuation experts, who are engaged by management to assist in measuring certain assets and liabilities also are not taught IFRS.  Consequently, all parties will need to undertake comprehensive training.  Professional associations and industry groups will need to integrate IFRS into their training materials, publications, testing and certification programs. Colleges and universities will need to include IFRS in their curricula.  If IFRS is accepted—and many think this is inevitable—as GAAP in the United States, it will be included in the Uniform CPA Examination.

The bottom line is that CPAs need to begin to prepare for the day in the not-so-distant future when the SEC could designate a date for voluntary, or even mandatory, adoption of IFRS by all U.S. public companies.

This profession is the epitome of left-brain thinking. Logic and thoroughness are two of the most important skills you’ll need. But there is also passion involved: To enjoy the job, you must love numbers, particularly the practical application of numbers. Most accountants work as public accountants charged with financial recordkeeping and tax services for a range of clients. Public accountants are typically employed by large accounting firms, but many have individual practices. There are also management accountants, who work for large companies and other organizations.

[See a list of The 50 Best Careers of 2011.]

The outlook:

The Bureau of Labor Statistics projects accountant and auditor employment growth of 22 percent between 2008 and 2018, adding 279,400 more positions to the 1.29 million already-existing jobs. The accounting profession is often tied to the growth of the economy. More business creation means more clients. Despite the recession, the Bureau of Labor Statistics expects the number of accountants to grow faster than the national average for job growth. Demand for accountants has increased because of more complicated financial regulations, such as the Sarbanes-Oxley Act of 2002. The likely prospect of tax increases also means that people will turn to accountants.

Money:

In 2009, the median annual wage for accountants and auditors was $60,340, according to the Bureau of Labor Statistics. The best-paid 10 percent of accountants made more than $104,450, while the bottom 10 percent made less than $37,690. The best-paid accountants reside in New York, New Jersey, and the District of Columbia.

Upward mobility:

There is significant room for advancement for a starting accountant. A public accountant might begin at the bottom of the totem pole at his or her firm, then after a few years rise to a managerial position, and eventually become a partner at the firm. Others might choose to start their own firms.

Activity level:

Accounting is not known as an adventurous career. The work is deadline-oriented, however, so you may feel more active than you would at a typical job.

[See a list of the best business careers.]

Stress level:

Moderate to high. Many accountants work more than 40 hours a week—especially tax accountants during tax season.

Education and preparation:

A bachelor’s degree is the first prerequisite. To work as a public accountant, you will probably need to become a certified public accountant. That means taking a uniform exam set by the American Institute of Certified Public Accountants. Like passing the bar to practice law in a certain state, you will probably need to take the exam in the state in which you wish to work. Most states require at least 150 hours of related of coursework before you become eligible to take the exam. That’s one reason why many aspiring accountants choose to get a master’s degree in accounting. There are other certifications. For example, the Institute of Management Accountants offers a Certified Management Accountant designation, which requires a bachelor’s degree, two years of work in management accounting, and passing an exam. It is possible to do accounting work without these certifications. In that case, you would probably be working under a certified accountant.

[Find online degree programs in business.]

Real advice from real people about landing a job as an accountant:

An accounting degree, along with a well-rounded education, can increase your chances of success in this field. “Along with learning the technical skills, students should take communications courses and begin developing their leadership skills to prepare them for their future careers,” says Vivian Moller, president of the American Society of Women Accountants. “Also, it’s never too soon to begin building your network, which may lead to a future job or client.” She suggests joining a professional organization after graduation to network, and considering continuing education opportunities.

By Kimberly Palmer