Today the term globalization has become more
popular to people. The world's economy has tuned to a new age that
trading between countries is easier than ever. Yet, globalization has
affected and really changed the world from heavy industrial,
manufacturing, services, transportation, and education. It even affects
on the accounting careers today.
In this paper I will focus on three main issues
of globalization that affects on accounting careers in the near future.
The role of Information technology affects on
accounting career
International students and new immigrant
population
Changing in International trading between countries
The rapid growth Information system and the
Internet not only changes the way people trading, but also changes
accountant's roles. The accountant's role has been expanding within
organizations and they are becoming part of the management and
decision-making team, rather than just providers of financial
information. Corporate accountants must shift priorities from analyzing
past events to acting as strategic partners, advisers and information
providers. Already, accounting and finance professionals are mining
data, turning information into knowledge and communicating what they
learn to all levels of the organization. This is a result of having a
new option in accounting education. Most colleges and universities
realize the importance of information technology, so they have added a
new track that is called Accounting Information System to their school
program.
Internet and information technology created a
revolution in storing, managing, and using business databases. Some
traditional accounting job will be cut in the near future with more and
more people use accounting software for tax preparation. Additional
advancements in information technology further reduce the need for
accountants and auditors. However, Increase of applying information to
accounting will create new jobs. And those new jobs will require
accountants to receive more education. They will be hired into
positions to develop, maintain, and monitor new systems. Because there
will be larger volumes of information to report and the increased
complexity of reporting mechanisms, demand for auditing or monitoring
services by both internal and external auditors should also increase in
the future. According to Bureau of Labor Statistics, "Individuals who
are proficient in accounting and auditing computer software and
information systems may have an advantage in getting some accounting
and auditing jobs."
Globalization opens opportunities for
international students to study in the United States. The number of
international students who go to college to major in accounting in the
US is increasing. This will have both positive and negative impacts on
accounting in the US. A large number of international students will be
a good source for accounting in both the Us and countries. The US will
be able to take advantage of international accounting students as they
return home and implement what they have learned. However, there will
be a large number of students who will stay and work in the US after
graduation. This will create an unbalance in supply and demand in the
US accounting job market.
With the effect of globalization, today accounting
students can work for the big 4 companies in Asian countries or for
accounting firms in European countries. Future accountants in these
positions will require more traveling and additional education. Since
accounting systems are still different in different countries,
accountants need to study different rules. The most important skill
would be understanding and communicating efficiently in a different
culture. English is still the first choice in international trading,
but Spanish and some other languages are also necessary.
According to USA Today, "In an interview, Sir
David Tweedie, chairman of the International Accounting Standards Board
in London, says the growth of the global economy means "we must
eventually end up with a common system of regulation, auditing and
accounting." Change in International trading between countries is the
beginning of change the accounting rules. This will be a big challenge
for international accountants. A common rule for accounting might be
made to simplify the accounting job. In addition, most of the companies
in the US need to expand their market to remain competitors. When those
companies globalize, they also need to globalize their accounting
system. A switch from GAAP to IFRS will be a good solution. Currently,
there seems a hesitance in switching because the change from GAAP to
IFRS may affect to the benefit of company. This also requires a change
in some accounting college level courses. In Future of Accounting
System, Zin Lin says "It is clear that many of the disadvantages of
IFRS are just short term, for example the costs of transition; while
the advantages are long term." For me, sooner or later, the change
needs to be considered to fit with International trading.
Accounting careers are being affected deeply by
globalization. Accounting in the future will require not only specific
knowledge but also must change with the globalization. Accountants will
need to be well prepared in computer skills, the ability to learn new
softwares and new accounting rules. All accountants must be prepared to
work in an international, world-wide environment.
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