Nature of Accounting Work

In most organizations the accounting group consists of two types of people: (1) bookkeepers and other data-entry employees who maintain the detailed operating records and (2) professional accountants who decide how items would be reported, prepare the reports, interpret these reports, prepare special analyses, design and operate the systems through which information flows, and ensure that the information is accurate.

What Is the Work of Bookkeeping Clerks?

Bookkeeping, accounting, and auditing clerks are an organization’s financial record-keepers. They update and maintain accounting records, including those which tabulate expenditures, receipts, accounts payable and receivable, and profit and loss.

In small establishments, bookkeeping clerks handle all financial transactions and record keeping. They record all transactions, post debits and credits, produce financial statements, and prepare reports and summaries for supervisors and managers. Bookkeepers also prepare bank deposits by compiling data from cashiers, verifying and balancing receipts, and sending cash, checks, or other forms of payment to the bank. They also may handle payroll, make purchases, prepare invoices, and keep track of overdue accounts.

In large offices and accounting departments, accounting clerks have more specialized tasks. Their titles, such as accounts payable clerk or accounts receivable clerk, often reflect the type of accounting they do. In addition, their responsibilities vary by level of experience. Entry-level accounting clerks post details of transactions, total accounts, and compute interest charges. They also may monitor loans and accounts to ensure that payments are up to date.

More advanced accounting clerks may total, balance, and reconcile billing vouchers; ensure the completeness and accuracy of data on accounts; and code documents according to company procedures. These workers post transactions in journals and on computer files and update the files when needed. Senior clerks also review computer printouts against manually maintained journals and make necessary corrections. They may review invoices and statements to ensure that all the information appearing on them is accurate and complete.

Auditing clerks verify records of transactions posted by other workers. They check figures, postings, and documents to ensure that they are correct, mathematically accurate, and properly coded. They also correct or note errors for accountants or other workers to adjust.

As organizations continue to computerize their financial records, many bookkeeping, accounting, and auditing clerks are using specialized accounting software on personal computers. With manual posting to general ledgers becoming obsolete, these clerks increasingly are posting charges to accounts on computer spreadsheets and databases. The widespread use of computers also has enabled bookkeeping, accounting, and auditing clerks to take on additional responsibilities, such as payroll, procurement, and billing. Many of these functions require these clerks to write letters, make phone calls to customers or clients, and interact with colleagues. Therefore, good communication skills are becoming increasingly important in the occupation.

Most bookkeeping, accounting, and auditing clerks are required to have a high school degree at a minimum. However, having some college is increasingly important and an associate degree in business or accounting is required for some positions. Graduates may accept bookkeeping, accounting, and auditing clerk positions to get into a particular company or to enter the accounting or finance field with the hope of eventually being promoted to professional or managerial positions.

What is the Work of Accountants?

Accountants help entities be successful, ethical, responsible participants in society. Their major activities include observation, measurement, and communication. These activities are analytical in nature and draw on several other disciplines (e.g., economics, mathematics, statistics, behavioral science, law, history, and language/communication).

Accountants identify, analyze, record, and accumulate facts, estimates, forecasts, and other data about the unit’s activities; then they translate these data into information that can be useful for a specific purpose.

Accountants design and maintain accounting systems, to help control and provide a record of the entity’s activities, resources, and obligations. Such systems also facilitate reporting on the entity’s accomplishments for a period of time and on its status at a given point in time.

The accounting system must provide internal controls to ensure that (1) laws and enterprise policies are properly implemented; (2) accounting records are accurate; (3) enterprise assets are used effectively; and (4) steps be taken to reduce chances of losing assets or incurring liabilities from fraudulent or similar activities, such as the carelessness or dishonesty of employees, customers, or suppliers.

An enterprise’s system of internal controls usually includes an internal auditing function and personnel to ensure that prescribed data handling and asset/liability protection procedures are being followed. The internal auditor uses a variety of approaches, including observation of current activities, examination of past transactions, and simulation—often using sample or fictitious transactions—to test the accuracy and reliability of the system.

Accountants may also be responsible for preparing several types of documents. (e.g., employees’ salary and wage records) that serve as inputs for the accounting system and to satisfy other reporting requirements. Accountants also provide data for completing income tax returns.

Accounting career paths for CPAs include being controllers, chief financial officers, or internal auditors in profit-seeking enterprises or not-for-profit and government organizations.

2. Match the English collocations from the text with their Russian equivalents:

1) update records	a) составлять платежную ведомость
2) keep track of overdue accounts	b) выставлять счета
3) compile data from cashiers	с) проводить операции по журналам
4) handle payroll	d) разрабатывать учетные системы
5) do the billing	e) заполнять налоговые декларации
6) record transactions	f) отслеживать просроченные счета
7) post transactions in journals	g) калькулировать подлежащие уплате проценты
8) post charges to accounts	h) обновлять записи
9) complete income tax returns	i) списывать затраты на счета
10) compute interest charges	j) нести обязательства
11) monitor loans	k) регистрировать операции
12) incur liabilities	l) контролировать выданные кредиты
13) design accounting systems	m) собирать/сводить данные

3. Read the text again and take notes of the main functions that certain careers involve.

DEVELOPING VOCABULARY

1. Job adverts often use compound adjectives formed according to the following patterns:

good-tempered – (Adj. + N) + -ed;

low paid, newly-formed – Adj. or Adv. + Past Participle

fast-expanding – Adj. or Adv. + Present Participle

The two parts of the words below have been jumbled. Put them together again; give their Russian equivalents.

1	far-	educated
2	fast	lasting
3	hard	reaching
4	high	appointed
5	long-	witted
6	well-	flying
7	quick-	growing
8	newly	working

2. Form meaningful word partnerships and make up sentences with them.

1 meet	a) the CPA Examination
2 pass	b) an unbiased opinion
3 express	c) financial reports
4 issue	d) taxes
5 collect	e) requirements
6 design	f) self-analysis
7 do	g) accounting systems
8 prepare	h) a license

3. Translate the following collocations from the texts of the Unit, mind the approach described in Unit 2.

accounting specialty areas, federal income taxes, a rigorous five-year education program, entry-level accounting clerks, auditing clerk positions, good communication skills, data handling, asset/liability protection procedures, not-for-profit and government organizations, reporting requirements, employees’ salary and wage records, income tax returns.

4.  Confusable words: effective vs efficient

Study the dictionary descriptions of these words and choose the appropriate one to complete the sentences.

effective a (→ effectiveness n) –- adequate to accomplish a purpose; producing the intended or expected result.

efficient a (→ efficiency n) – performing or functioning in the best possible manner with the least waste of time and effort.

Note: Being effective is about doing the right things, while being efficient is about doing the things in the right manner.

1. The process makes … use of limited resources.

2. We find advertising on the radio very … .

3. The heating system is very … in its use of fuel.

4. You need … communication within the organization.

5. He became a highly … Chief Accountant.

6. The new technology is aimed at improving … of customer service.

5. Look at the dictionary definitions of the following words and then complete the tree diagram below

1) Salary – a fixed amount of money agreed every year and paid monthly directly into a bank account, normally to professional people and office workers

2) Wage (often pl) – a fixed amount of money that is paid, usually every week, to an employee, esp. one who does work that needs physical skills, rather than a job needing a college education

3) Fringe benefits (also perks) – extra benefits arising as a result of employment, in addition to regular remuneration such as a car or free accommodation

4). Fee – an amount of money paid for a particular piece of work or for a particular service, e.g.. a payment to a lawyer, doctor, etc. for professional services

5) Royalty (usually pl) – a payment that someone such as a writer or musician gets each time their work is sold or performed

6) Earnings – a) the total of the sums earned by an employee during a regular pay period; b) what is left of the net profit of a business after allowing for transfers to reserves. the net income or profit of a business

7) Income – money we receive from work, investments, etc. It can be earned income (wages or salary) or unearned income (money from dividends, interest, royalties, etc.)

8) Revenue – a) income, generally, the total income earned by the state or a large corporation; it is not used for people; b) money a government receives through taxation

9) Remuneration (formal) – payment or other rewards that you get for your work

6. Complete the sentences using the appropriate word from the list above.

1) How much … did you earn on your shares last year?

2) A company car, a mobile phone and luncheon vouchers are some of the … that come with the job.

3) The best lawyers often ask for the highest … .

4) Total company … for 20.. was the best yet.

5) My total … this year, including salary, royalties, fees, dividends and perks, should exceed 300,000

6) … levels in manufacturing and mining dropped again last month.

7) The company reported that … were down last quarter.

8) The players are demanding increased … for their services.

9) The publisher paid them … on their dictionary.

7. Translate into English

1) Компания предоставляет дополнительные льготы в виде служебного автомобиля и бесплатной медицинской страховки. 2) Средние заработки квалифицированных рабочих растут. 3) Мы предлагаем привлекательный компенсационный пакет. 4) Рабочие требовали повышения зарплаты. 5) Он многие годы жил на авторские отчисления с повторных тиражей (reprint n) своей книги. 5) Компания официально заявила о том, что в последнем квартале прибыль снизилась. 6) Для малоимущих семей (семей с низким доходом) предусмотрены льготы. 7) Каков Ваш приблизительный среднегодовой доход? 8) За последние десять лет заработки населения росли быстрее, чем цены. 9) Доходы от дивидендов не относятся к заработанным доходам.

FOCUS ON FUNCTIONS

Describing Company Structure

Organizations can be described in terms of:

●hierarchy

The company is headed by the MD (Managing Director).

The Finance Director reports to the MD.

The Finance Director is below the MD.

The Finance Director is accountable to the MD.

●responsibilities/functions

The Controller is responsible for accounting throughout the company.

The Production Department takes care of product manufacturing.

The Chief Accountant is in charge of company’s accounts.

● titles

Below are the main managerial titles with common US equivalents in brackets.

Chairman/Chairperson (President)

Managing Director (Chief Executive Officer (CEO)/Senior Vice-President)

Finance Director (Vice President Finance)

Sales Manager (Sales Director)

● structure

a parent company, a subsidiary, a division, a department, a section

1. Study the organization charts, then complete the paragraphs that follow, using the correct form of an appropriate word or phrase from the lists given.

a)

DSA Corporation (New York)

Building Materials

Construction

Civil Engineering

The DSA Corporation consists of three _______, Building Materials, Construction and Civil Engineering. DSA _______ New York and comprises four _______: ABC Inc., Halcon, Conway and RoadCo. Each of these _______ by a Senior Vice_President who _______ the _______.

subsidiary division be based in parent company

be headed report to

b)

ABC Inc. is a building materials manufacturing company in Detroit. ABC _______ the Chief Executive Officer, who _______ the Board of Directors, which ______ four people. The staff in each of the four departments are _______ a Vice-President who is also on the Board. In each department, a managerial team of directors _______ the Vice-President. In the Sales Department, one director _______ exports, the other _______ domestic sales.

be responsible for be in charge of be supported by support be accountable to consist of be headed by

DISCOVERING LANGUAGE

During a job interview Alan is talking about his previous jobs. Complete what he says with the best form of the verb in brackets. Choose between past simple, past continuous or past perfect, the first has been done for you. After you have completed the conversation, listen to the recording to check.

INTERVIEWER: So, Alan, why did you quit your last job?

ALAN: Well at the time I (1) was working (work) as a financial officer for an International Accountancy firm in London. I (2) ………. (be) in the same company for three years.

INTERVIEWER: How (3) ……… (you/get) the job?

ALAN: Just after I (4) ……… (finish) university I (5) ………. (go) to a job fair. I still (6) ……… (decide) what I wanted to do and I was interested to see what kind if jobs there (7) ……… (be) at the fair. While I (8) ………. (look) at information on one of the stands for a large international accountancy firm, someone (9) ………. (give) me an application form to fill in. I thought this might be a good career opportunity for me as I (10) ………. (already/take) some accountancy exams for my degree. So I (11) ……… (complete) the form and (12) ………(send) it off. They (13) ………. (interview) me the following week and I got the job. At first, I (14) ……… (feel) satisfied with the job, but as time went by, things (15) ………. (change) and I began to hate working there.

INTERVIEWER: So what (16) ……… (go) wrong?

ALAN: Well the situation was this: I (17) ……… (work) for a person who was very difficult, er …very demanding … never satisfied. What's more, my job (18) ………. (become) too repetitive and really wanted to do something more creative. So, that's why I resigned … I (19) ………. (not have) another job to go to, but I knew I (20) ………. (have) to make a change.

LISTENING

1. You are going to hear a Chief Accountant discussing his work.

2. Before listening, make sure you know the following words and word combinations

skinflint – скряга, скупердяй («кто камень обдерет ради барыша»)

be in a mess – иметь неприятности

shaking out = slimming down = tightening up – сокращение, уплотнение, затягивание

axe pet schemes – урезать ассигнования на чьи-то любимые проекты

petty cash – мелкая наличность

3. Note down the names of the chief divisions he mentions within his department. Label them on the chart given.

4. Listen to the recording for the second time and finish the following statements.

1) As Chief Accountant of the company, I am obviously involved in … .

2) Unless my department is properly organized and working efficiently, we … .

3) To audit the books means … .

4) It is very tempting for people to introduce … .

5) The single most expensive recurring item for any company is … .

6) Every single item of expenditure or income has to be … .

5. Summarize in brief the functions of each division in the Accounting department and explain why, according to speaker, he is often called ‘a skinflint’ in the company.

WRITING

1. Cloze-Test. Read the text supplying the missing words (more than one option is possible). Then read the information again and give its summary of 5 sentences, outlining the major gender changes in the US accounting profession.