Does the claim hold water

Globalization across the world has brought about so many positive impacts in our economy. However, with the rate at which globalization is taking place, businesses are involved in dealing with tough problems in their day to day operations. There has been an effort that has been put in place so as to curb these problems facing all businesses across the world that includes changing some of the accounting rules. Accounting has played quite an essential role in boosting the profits of the businesses and also the economy of the various countries. This paper will therefore seek to support the claim that accountants are the solution to solving the numerous problems facing the businesses’ money making process.

Accountability in businesses is one of the most important elements towards success. Having a corporate reporting which is the role of accountants ensure that a company’s way of making money is clear. As a result of accountability aspect in businesses, businesses are able to analyze their sustainability as evidenced in the annual report provided by the accountants (Bakker, 2013). With accounting, investors as well as business people are able to focus on both the internal and also o the external factors affecting the business. Reports on internal sustainability are geared towards improving the management of risk and performance of a business. on the other hand, the external disclosure by the annual reports submitted by accountants act as a driver for a more efficient valuation of organizations and assists in acquiring an effective allocation of the capital investments in the market (Bakker, 2013). Major corporations and companies are active players in derivative markets as a means of increasing their profits and it is for this reason that attracted the attention of the business reporting. Some of the companies and corporations regard some of the risks as substantial and thus they fail to disclosure their financial reports to the public and are thus treated as off-balance sheet transactions. This is not the right direction used by these organizations s it does not support transparency and accountability hence it may make it difficult for investors and the public to effectively evaluate the real risks on the ground. The truth about the performance of a business should not at any given time be made aware to people whenever losses are reported as this is detrimental in the success of any business or organization. It is for this reason that the business should integrate the use of accounting approach where accounting reports are frequently presented to the stakeholders and the business hence allowing them to evaluate their current stand in sustainability and in handling risks and ultimately assessing the overall performance of the business (Korten, 2001).

To sum it up, for the world to effectively address the many challenges in businesses, the businesses must engage in business transactions that are transparent and accountable. Businesses must also acknowledge that the exploitation, conservation and the social benefits that they stimulate must be considered into a company’s value and also in the daily management. This is thus a radical change that all businesses should endeavor to be a part of as this will see the businesses move into a new level of success. This radical transformation phase will only be enhanced by accountants who are making big steps into changing the transparency and accountability of companies through submission of annual reports that are all inclusive.

References

Korten, D. C. (2001). When Corporations Rule the World. Bloomfield, CT: Kumarian Press, Inc.