Introduction
Any society around the world aspires for prosperity in terms of economic, social and wellness aspects. The quality of life largely depends largely on our ability to develop a constructive interplay among social, economic and political influences. All this however depends on the available resources within the community’s reach. Substantially, finances are the key component of these resources. It is therefore critical that all policies, laws and norms reflect the society’s constraints on the financial aspect. Accountants are thus not only liable to these laws but also answerable to the society. However, they are just but a part of the large system that manages safeguards and controls how these finances are allocated and reallocated.
In the modern-day world of business, finances play a very vital role and failure to account to the flow of various financial resources, may lead to business failure. Therefore, accounting as a discipline, ensures transparency and responsibility of the finances. As Shiller puts it, finances should be viewed as assets or resources that are prone to human manipulation and as such, oversight of how finances are used is critical (Shiller, 56). Admittedly, corruption is rampant in our social, economic and politic institutions. Apart from the laws and regulations put to protect public finance, accounting makes such laws operative in the sense that, corruption and misappropriation of funds can be pinpointed. According to MoneyInstructor, being at the top level management, business leaders such as CEOs can easily use their influence to avert public or company finances into their pockets (MoneyInstructor, par 1). Therefore, insistence is on the need for the investors to seek various accounting tips and knowledge that can easily insulate their investments from corrupt individuals.
Financial innovation and creativity provide the most appropriate solution to the uncertainties of the business world today. Rich identifies that financial creativity dwells on developing a business culture that recognizes finance as an asset rather than as the solution to business needs (Rich, 31). In order to revitalize the potential of finances, a more integrative approach is necessary (Sonja and Jim, 23). This should be based on a culture of accountability and evaluation of policies and guidelines within the accounting departments. In the overall setting of the organization, it is critical that the CEOs and the accounting staff in general provide a leadership entrenched on the value of integrity and accountability.
Brooks and Dunn offer a more realistic approach by identifying the that creativity is defined by the business owner‘s or the investor’s sound financial background to avert possible cases of financial misappropriation (Brooks and Dunn, 18). This incorporates the ability to develop ethical standards that suit the business model and structure of financial management. Dependency on managers does not necessarily offer a permanent solution for business finances. As Shiller discusses, the society as a whole should take the role of making sure that finances as a limited resource are protected by policies, legislation and ethical guidelines (Shiller, 42). Holistic approaches in accounting encompass giving the society and the stakeholders a key role to safeguard and put into proper use the limited finances. An organizational approach alone cannot offer the required technicalities to safeguard finances due to their revolving nature.
The business world has never been a statue, or dormant and changes are inevitable especially in this age of technology. This implies that business and accounting should also exhibit this type of dynamism. Very many accounting procedures and practices are based on the archaic business models. Businesses should take an evidence-based approach to accounting whereby; businesses appreciate the role of technology in accounting (Brooks and Dunn, 10). Likewise, businesses should also adopt policies that support this shift from the old accounting concepts to concepts that are more applicable to the 21st century business environment. Apart from technology, there are other 21st century factors that should be considered in accounting. Demographics change day in day out and thus there is a need to address this aspect in the modern day accounting models (Nyce and Sylvester, 61).
The benefits of financial management and accounting should not only accrue to the members of the business fraternity but to the society in entirety. Responsible accounting should extend benefits to the community at large (Rich, 7). This is through economic use of available resources to produce finished goods and as well as acting socially and environmentally responsible. Prudent accounting ensures that the business community serves the interests of the community more than it serves it interests.
Conclusion
Therefore, accounting is an imperative tool in not managing financial resources, but all the resources that the earth has been endowed. As much as businesses thrive to protect their financial resources from misappropriation; they should be equally concerned about their actions and their effects to the larger society. Rich emphasizes that successful businesses are those that serve the interests of the community as a priority (Rich, 7).
Works cited
Brooks, Leonard J., and P. Dunn."Business and Professional Ethics for Directors."Executives and Accountants, 5th Edition (South-Western Cengage Learning, Mason) (2010).
MoneyInstructor. Money, Personal Finance, Business, Careers, Life Skills: Lessons, Education. N.p., 2012. Web. 1 Oct. 2014.
Nyce, Steven A, and Sylvester J. Schieber. The Economic Implications of Aging Societies: The Costs of Living Happily Ever After. Cambridge: Cambridge University Press, 2005. Print
Rich, Jay S. Cornerstones of Financial & Managerial Accounting. Mason, OH: South-Western/Cengage Learning, 2012. Print.
Shiller, Robert J. Finance and the good society. Princeton University Press, 2013
Sonja Gallhofer and Jim Haslam. Accounting for Society: Some Critical Interventions. London: Routledge, 2003.Print
