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Essay: What is Accounting? An Introduction to the Backbone of Business

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Accounting (43%)

What is Accounting?

Accounting is the process of keeping track of financial accounts, ensuring the flow of money and

handling all money matters.

Are you a stickler for the rules? Someone who always finished and handed in his homework on time.

Are you an honest person who believes that ‘honesty is the best policy’? Are you good with numbers

and calculations? When everyone wanted to borrow your maths homework in school, but you being

the honest person that you were, said no? Do you want to be considered successful and professional

by friends and family? Well, if this does sound like you, then read on as we meticulously introduce

you into the rich world of accounting.

Accounting can be said as the backbone of any business because that’s what sustains it. Keeping

track and inspecting financial accounts for companies, government groups and individual clients are

some of the responsibilities of an accountant. Some are self-employed while others work for large

firms with offices across the nation. Basically, you handle money, and lots of it.

Specialisation

Tax Accounting, Financial Accounting, Audit, Forensic Accounting, Managerial Accounting.

Courses covered

SPM

Principles of Accounting

Mathematics

Trading

Basis of Economy

University Level

Accounting

Business Law

Taxation Law

Company Accounting

Organisations and Management

Accounting Systems

Management Accounting

Professional Practice in Accounting

Ethics, Sustainability and Culture

Business Statistics

Business Economics

Strategic and Sustainable Accounting

Auditing and Assurance Services

Accounting Theory

Financial Management

Why should study Accounting

With so many degree options out there, here are some top reasons why you should study Accounting:

Can work in any industry:

In all organisations, in all industries need the services of an accountant.

More job opportunities:

The degree of the accountant will provide you a lot of job growth opportunities, as every company needs an accountant. Job rate of an accountant is 95%.

Move to other areas:

If you do accounting job in different organisations, so you can also learns practical skills of business and can move to the different area even start your own business.

Requirements

STEP 1 : SPM / O – LEVELS

STEP 2 : DIPLOMA / STPM / PRE-U / Foundation

MINIMUM requirements for admission 3 credits, including Mathematics and a pass in:

English

Bahasa Malaysia

History

You can choose to complete any of the following

Diploma in Accounting (Possibility of immediately entering Year 2 of Degree course)

STPM

Foundation in Business or Arts.

STEP 3: DEGREE

The basic requirements that you’ll need to meet to pursue an Accounting Degree are:

A-Levels: Minimum of CDD; or

STPM: Minimum 2C+s; or

Australian Matriculation: Minimum of ATAR 65; or

Foundation in Business or Foundation in Arts: Minimum CGPA of 2.50; or

Asasi or Matrikulasi: Minimum CGPA of 2.50

Synopsis of pathway

1) SPM

2) Foundation/Diploma: 1 – 2 years

3) Degree: 3 – 4 years

4) Masters: 1-3 years

You have 4 options to become a professional accountant

ACCA

CIMA

ICAEW

MICPA

ACCA (3-4 years, if done while working)

* Minimum entry requirements:

3 LCCI Higher passes/A levels/STPM (Group diploma is equivalent to 3 LCCI Higher passes)

AND

2 LCCI Intermediate Level passes/O level/SPM

(in five separate subjects including Mathematics & English)

Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global

professional accounting body offering the Chartered Certified Accountant qualification (ACCA or

FCCA). From June 2016, ACCA recorded that it has 188,000 members and 480,000 students in 178

countries.

To qualify as an ACCA member, you will need to complete:

Exams – a minimum of five of 14 exams (nine are eligible for exemption if applicants possess

the proper qualifications*)

o You need to give 14 papers which are divided by 9 papers of the Fundamental Level

and 5 papers of the Professional Level (Objective & long type, case studies)

The question papers are divided into three patterns of questions; objective type, longer type

and case studies.

Experience – record 36 months' experience in a relevant role

Ethics – The online Professional Ethics module provides applicants with an interactive means

of exploring and practising their own ethical attitudes. It asks them to examine their ethical

response to a variety of situations. The module allows applicants to establish what their

ethical values are, gives them a wide base of ethics theory and reinforces the five

fundamental ethics principles – objectivity, integrity, confidentiality, professional behaviour,

professional competence and due care.

You can choose how you study, how often you sit your exams and where you get your relevant

practical experience. But ACCA recommends you do the practical experience along with passing your

exams if you can.

You can choose from a variety of study options such as:

full-time courses

part-time day or evening courses

distance learning

weekend courses

ACCA-X (an exciting online learning programme providing high-quality, free and affordable

course)

revision courses.

ACCA certificate holders are recognised all around the world and its qualification is recognised by

employers and appreciated by students who have passed out ACCA as they are known for their

quality and excellence, making it easy for employers to rely on their ability and knowledge while

hiring them. ACCA has a wider spectrum and is known for its flexibility.

Future prospects:

Accounting firms

Educational & training companies

FMCG sectors

Financial services & consulting companies

Healthcare

CIMA (4 years)

CIMA Qualification is a globally recognised credential awarded by the Chartered Institute of

Management Accountants, UK for those interested in pursuing a career in the specialised field of

management accountancy. CIMA has over 88,000 students and 70,000 members in 161 countries.

What sets apart this finance certification from most others is its focus on accountancy as related to

business management more than anything else. The focus on business makes CIMA different and

suitable if you want to do a professional course but have a knack for business and finance.

Minimum entry requirements:

For CIMA Qualification in Business Accounting:

There are no specific eligibility criteria but a good grasp of Mathematics and English is essential

along with an interest in studying accountancy.

For CIMA Operational Level Studies:

CIMA Qualification in Business Accounting

Master’s in Accounting or MBA

Membership of ICWAI, ICMAP or ICMAB

Membership of an IFAC body

Any relevant qualification to get exemption from the CIMA Certificate in Business

Accounting

Management Level Studies:

Successfully complete CIMA Operational Level studies & Operational Case Study.

For CIMA Strategic Level studies:

Successfully complete CIMA Operational & Management Level studies & Operational &

Management Case Studies

CIMA is divided into four levels:

1 st level – Entry

2 nd level – Strategic

3 rd level – Management

4 th level – Operational

Each level aims to train students toward a complete knowledge of the business and provides

practical skills that would give an edge to the candidate in the professional world.

To fully qualify:

Pass a total of 12 exams to achieve the CIMA certificate: 9 multiple-choice objective tests

(three per level), and three case studies (one per level).

Three years of professional experience

Held twice a year:

May

November

Future prospects:

Sports

Media

Fashion

Publishing & more

ICAEW / ACA (3-4 years)

The Institute of Chartered Accountants in England and Wales (ICAEW) is the largest accountancy

body in Europe; ACA is their main accounting qualification, fully focused on the evolving needs of

modern business. ACA-qualified accountants who are Institute members are entitled to offer their

services as a 'Chartered Accountant' and to use the letters ACA or FCA (Fellow Chartered

Accountant) depending on their experience and length of membership.

ACA also helps you create a delicate balance between your study and work so that you’re able to

have proper work-life balance and thrive as a professional. ACA has several entry routes and it can

be done even in Europe, USA and Asia. However, in many countries in Asia, ACA is not considered as

a globally recognised certification.

There are three levels:

1st level – Certificate

2 nd level – Professional

3 rd level – Advanced

To fully qualify:

Pass the ACA qualification, which has 15 modules over 3 levels:

Certificate Level 6 modules (1.5-hour computer-based exam each)

Professional Level 6 modules (2.5 – 3-hour exam each)

Advanced Level 3 modules (3.5 hour exam each)

Complete 450 days of relevant work experience (in ACA registered firms only)

ACA is conducted in:

March, June, September & December (Professional level)

July & November (Advanced Level)

Future prospect:

PwC

KPMG

Deloitte

Ernst & Young

MICPA

Formerly known as the Malayan Association of Certified Public Accountants (MACPA), the Malaysian

Institute of Certified Public Accountants (MICPA) is the only homegrown professional body. It was

established in 1958 and has a long history of producing technically-sound professional accountants.

The institute has had many prominent business people in the industry who became its members.

A turning point in 2009 saw MICPA and Chartered Accountants Australia and New Zealand (CAANZ)

collaborate to run a joint professional programme called the MICPA-CAANZ Programme – which

provides its graduates with a dual qualification and memberships with both MICPA and CAANZ,

leading to the use of 2 titles – Certified Public Accountant, Malaysia and Chartered Accountant,

Australia and New Zealand.

Members of both MICPA and CAANZ are eligible for Malaysian Institute of Accountants (MIA)

membership.

A second development saw a new agreement made, the Mutual Recognition Agreement (MRA)

between ACCA and MICPA.

To qualify:

If you have a Diploma in Accounting, then you can join the Professional Stage Exam (4 modules). This

will bring you to the MICPA-CAANZ Programme (5 modules) after having 3 years of working

experience in accountancy.

With a Degree in Accounting, you can do the MICPA-CAANZ Programme (5 modules). To join this

programme, you need to have 3 years working experience in accountancy.

If you have a degree from a non-accounting background, you can do the Conversion Programme (8

modules). After completion, then you can join the MICPA-CAANZ Programme (5 modules) + 3 years

working experience in Accountancy.

From MICPA to ACCA

MICPA members who have been admitted as a Certified Public Accountant member before January

1, 2009 but who have achieved less than five years’ relevant post-qualification experience must pass

ACCA’s Paper P1, Governance, Risk and Ethics.

Alternatively, MICPA members who have been admitted as Certified Public Accountant members

before January 1, 2009 but have achieved five years’ relevant post-qualification experience must

satisfactorily complete the ACCA Professional Ethics module.

To qualify:

As per the Accountant act 1967, schedule Part 1.

Obtain 3 years of relevant working experience

Pass the final exam as specified in the Accountants Act

Once you have completed MICPA, you could then apply to become a member of the Malaysian

Institute of Accountants (MIA). To do so, you would need to know the following:

There are two prerequisites for a person to apply for MIA membership. You must have:

• obtained one of the qualifications recognised by MIA

• obtained not less than 3 years relevant practical working experience in areas related to

accounting.

If you have fulfilled the above requirements, you may apply for membership into MIA. To register,

you are required to complete and submit the MIA application form to the Institute with all the

relevant documents.

To register as a chartered accountant with the MIA, you would need to have one of the following

qualifications recognised by the Institute:

• Have passed any of the final examination specified in Part 1 of the First Schedule of the

Accountants Act, 1967; or

• Be a member of any of the recognised bodies specified in Part II of the First Schedule of the

Accountants Act, 1967; or

• Be eligible to sit for and has passed the Malaysian Institute of Accountants Qualifying

Examination (QE).

Skills

Eye for detail

If you’re a detail-oriented person, you pay attention to the little things. That means you may like

sharp creases in your jeans and crisp shirts, but it goes beyond attire or an obsession with making

lists. It means you’re conscientious and focused on accuracy and precision. You pride yourself on

being a perfectionist. You’re also patient and persistent in pursuing answers to challenging

questions.

Inquisitive

Your primary responsibility as an accountant is to safeguard your organisation’s assets. That means

you can’t take anything at face value. Your job is to question everything and then be willing to dig in

and investigate – to do the research necessary to find the answers and resolve discrepancies. For the

curious-minded, this can be satisfying work, particularly when your ability to overcome a challenge

results in success for your company or clients.

Good communicator

Bet you thought accounting was just about math. While it is a numbers-based profession, real-world

business problems do not present themselves as mathematical equations, even if math is required

to solve them. You need to be good with words – a careful and critical reader, and a good oral and

written communicator, able to present and explain financial data, new regulations, financial results

and business projections.

Follows rules

Do you believe in following rules even if you don’t agree with them? Accountants must follow lots of

rules, principles, tax codes, and regulations governing what data to report and how to report it.

While it is okay to be creative in terms of how you set up spreadsheets or develop presentations,

“creative accounting” – or making up your own rules – is not.

Career Options

Accounting Clerk

Auditing Clerk

Accounts Receivable Clerk

Accounting Assistant

Accounts Payable Clerk

Bookkeeper

Management Trainee

Payroll Clerk

Salary

The average pay for an Accountant is RM 51, 345 per year. Financial accounting and Controlling will

generate a higher pay. Most people move on to other jobs if they have more than 20 years'

experience in this field. Experience strongly influences income for this job.

Malaysia:

Malaysia needs about 60,000 accountants to become a developed nation by 2020. As Malaysia

navigates towards becoming a high-income nation, more chartered accountants are needed to drive

the country’s economic growth.

Overseas:

Despite the economic downturn, demand for accountants remains strong. Additionally, in some

places there has been a fall in the number of people taking up accounting in the last 2-3 years which

will create even more opportunities for those choosing to enter the profession now.

Tougher trading climates also make the financial insight provided by chartered accountants even

more valuable. As the adoption and updating of International Financial Reporting Standards (IFRS)

gathers speed, qualified accountants will be needed to help organisations interpret and apply these

complex standards.

Entry level: RM2,000 to RM 3,500

1-4 years: RM 4,200 to RM 7,000

5 years – 9 years: RM 5,000 to RM 15,000

>10 years: > RM 15, 000

Top Recruiters

Accounting technician.

Actuarial analyst.

Business adviser.

Chartered accountant.

Chartered certified accountant.

Chartered management accountant.

Chartered public finance accountant.

Do you know?

Before a standard numbering system was developed, ancient accountants used clay tokens to keep

track of animals and grains.

Where you can study ?

Do note that all courses should be accredited by the Malaysian Qualifications Agency (MQA). Click

here (http://afterschool.my/news/how-to- check-if- your-course- is-accredited- by-mqa/) to check if

the course you choose is accredited.

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