If the profession evolves, accountants can evolve with it and move to their own practise full-time without putting undue financial burden on themselves or their families. There would be a significant rise in income without incurring major expenditures and the relaxation of financial strain when running the new practise simultaneously with jobs. As job income is sustained, cash savings will increase significantly, and new income will also start to flow in from the new practice.Have a look at San Jose CPA for more info on this.
This rise in cash reserves will be a huge help in funding a full-time transition, and this will make the change easier when the time comes. When making the move to a full-time career, in the month of January, accountants would find it easiest to shift full-time into their own practise. January is the beginning of the tax season, followed by the beginning of income tax planning revenues. The rise in revenue will arrive right at the moment when it is most needed by accountants. It is crucial that accountants put themselves in a position to start marketing at the beginning of the tax season in order to grow individual tax clients vigorously, taking full advantage of their first tax season. Moreover, for many firms, January includes year-end jobs, such as payroll and financial statements. In the month of their transfer, this would also bring more money to the practises of the accountants.
January is also the best month of the year for a full-time move into practise, as it could be the best month of the year for new companies to grow as consumers. Many owners of businesses oppose changing accountants. It takes a very strong justification for a customer to abandon the accountant of a predecessor. Usually, if a customer makes the decision to change, he or she will not invoke the change until the end of the business year without having to break a fiscal year between two accountants. Therefore, the end of the year is the most suitable time to contact company owners, and it will promote the transition into full-time practise.
Accounting is a process which is used and practiced every day, no matter where in the world you are. Going along with the fact that it is used no matter where you are, this means there are hundreds of countries using accounting in one way or another. I chose to concentrate on developing countries for my subject, and how they use accounting. I will later concentrate on Libya and Indonesia on a smaller scale, looking a little further into the developing countries. Get more info about W M Wright & Co-Penrith Accountants.
Our accounting procedures and principles are very much set in stone here in America, where we are one of the most highly developed countries in the world. Though it is not as easy to come up with set standards in other countries that aren’t as advanced. Many businesses around the world have adopted GAAP, but those that don’t do this have the worldwide uncertainty accounting issue There are many factors that impact the accounting system of a country. The nature of the accounting system, the stage of economic growth , social factors, education , culture, the legal system, politics and accessibility to the outside world all have a significant effect on how a nation uses accounting (Zehri). Given that a developing country is dealing with most of these factors, it can be easily established that it affects its accounting procedures in a negative way.
I decided to look at the Libya accounting more closely. Libya is situated in Northern Africa and has a population of only 6 million. Libya is only one of the countries left without IFRS (Zehri) yet to be implemented. Income tax was first implemented in 1923. Italian companies brought their own accountants with them at this time, but at this stage Libya had not studied accounting. There were no accounting workers (Zakari) up to 1951, when Libya became independent. Libyan companies were dependent on other accounting firms in the countries, typically from Italy and the UK. Once the oil discovery emerged in the 1960s, Libya acquired financial capital used to grow company (Zakari) operations. Around this point, Libya agreed to enforce some rules. The Commercial Code of Libya of 1953, the income tax law of 1968, the Libyan Petroleum Act of 1955, and the 1975 developed LAAA (Laga) were all produced. Libya ‘s accounts are affected by four main sources: regulatory criteria, technology impacts, accounting education effects, and changes in their climate (Zakari). IASB took over the previous use of IASC in 2001, and this was revised to become IFRS. The conversion of their accounting to IFRS is an obstacle (Laga) given the problems Libya has created.