Accounting is a Profession

Accounting is a profession for two reasons:

1. It has its own body of specialized knowledge and standards (GAAP, GAAS, etc.). 2. Accountants are recognized as such not only by themselves, but by outside authorities, like governments and legal authorities.

Accountants as a group practice many forms of the profession:

1. Certified Public or Chartered Accountants (CPS's) are accountants who audit, review or compile financial statements and profess an opinion on their fairness. This is considered the purest and highest form of the profession by many and is universally recognized as a position of trust (not withstanding Enron and Wroldcom). 2. Managerial Accounants (Certified Managerial Accountants or CMA's) practice accounting within organizations for the most part and provide decision support and analysis to management. They also prepare the statements audited by the CPA's. These are members of the management team and spend a lot of their time managing not only numbers, but people and resources as well. Other forms of this include Internal Auditors. 3. Forensic Accountants (often also CPA's and/or CMA'Sas well) do internal auditing inside companies or other organizations (usually large ones). 4. Academic Accountants are instructors at colleges and universities and form and ivory tower of the profession.

I have been and am three of these at one time, a CPA, CMA and I teach accounting and management part time. Accounting is certainly a profession; I have been doing it for 23 years and I do a little more than set up links in spreadsheets. Knowing where, how and why do put the numbers in the spreadsheets, develop complex models of cost behavior, make judgements about materiality, relevance and other issues are all part of the job, not to mention managing a department, advising the governing body and management and interfacing with banks, governmental agencies and other organization make up my day. No, beginning accountants mostly do not do these things, as they are learning the basics, but once you have been doing this as long as I have you are a professional.

Bean Counter or Professional

Reminds me of the story about the company needing an accountant. The three finalists were given the same question: What is 2 + 2. The first said "eveyone knows that it is 4" and was dismissed. The second said "I think it is 4, but I would like to use a calculator to make sure" and he also was dismissed. The third responded "You would be amazed at how many think it is 4. Tell me, What did you have in mind?". He was hired on the spot.

This story will be thought of as a joke by those who have not looked at the purpose for hiring an accountant. To believe that everyone who looks at the same thing will see and understand it the same way, is to believe something other than the truth. It is this writers current belief that accountants, whether they are on a company payroll or hold themselves out as consultants are basically advocates for those who pay them, possibly even more so than are attorneys. I am an accountant who does mostly tax work. When a client asks me to prepare a financial statement, the first thing I ask them is "what are you going to use it for". IMO an accountant that would not ask that question is not going to be delivering what is being ordered. To allow this to happen IMO would constitute malpractice, especially since at least some of the clients are not aware of what can be done with a set of numbers and are therefore can be misrepresented without their knowledge. While it is true that some people who hold themselves out as accountants do not realize this, it is my belief that those who are experienced and have considered their real responsibility will be aware of this.

There is so much diversity in the practice of the profession, as I have come to understand. Now that I am in the private sector and working exclusively for a group of companies, I now have the chance to view Accounting in another perspective, with the issue of financial statement reporting and confidentiality. While tax reports and its practice is a separate and distinct part of being an Accountant, the issue of "what are you going to use it for" also applies to what I am doing right now.

Some may only be 'counting the beans' and may consider it as a 'job', but its like saying there is nothing beneath the tip of an iceberg. As a profession, there is a variety of specialization for Accountants to get involved with. Many have come to realize this issue and is now taking advantage of what they can offer in terms of services to various parties.