Accounting Structure of India

Accounting, whether in a commercial organization or in Government/Private, is a tool of management. In a manufacturing organization, It provides information to management about the cost of manufacturing a product, the cost of performing a job, the cost of sales and the profit earned or loss incurred. Recent years have witnessed an exponential growth in the Indian economy and simultaneously an increased demand or specialized workforce, especially in the sphere of accounts, payroll and compliances.

India is the next big destination for international investments. Market analysts are simultaneously predicting that domestic entrepreneurs are the life line of the country's economy. But if we se our present structure of accounting we come to know that there is a big gap between study and practical aspect of the accounting study.

Despite the demand, there seems to be a paucity of work-ready professionals, especially to cater to the needs of the multinational or domestic companies operating in India. In such a scenario, a student, a fresher, or a new entrant in the industry, although equipped with the right academic qualifications, lacks the know-how of the essential and pragmatic fundamentals' that the corporate world today needs. There is a huge gap between industry expectations and contents of the course curriculum of various educational institutions including professional courses. Further, currently there are no courses that enable a candidate to be "work-ready" from an industry point of view, apart from pre-training for BPO's and Call-centers.

Compounding this problem is the fact that most companies today would rather hire 'Work-ready' professionals rather than hiring raw candidates and putting them through the grind of training them,'on-job or otherwise. In India professional accounting education remained the same for a long period of time and present structure is inadequate for the future needs of accountants. According to American Accounting Association (AAA) there is a big gap between what accountants do and what accounting educators teach in the classroom. American Institute of Certified public Accountants (AICPA) called that we required modification in our present accounting education program because accounting education as offered was too inadequate and narrowly focused to meet the changing needs of accountants and accounting students.

Traditional Accounting educations programs followed by colleges/Universities put more emphasis on training students for professional qualification examination and less on the teaching of broader knowledge subject or on professional skill development. So for that matter students are ill-equipped to handle accounting duties at the workplace because there is lots of difference or gap between our studies and practical aspect of accounting. Numbers of western countries and India have called for accounting education reform in order to address the gap between what accounting education provides and what is demanded by the company. So for that matter in India no of companies, NGO and universities conducted a survey for the accounting education.

On present accounting structure some authors present his/her views. A famous Albrecht & Sack described accounting education as too narrowly focused, backward looking and too costly for the benefits received. They argued that the major problems lie with the content and design of the curriculum and that the solution should not only be adding new courses to the existing curriculums, but also focus on producing a good business person. They further argued that accounting education does not expose students to real life business situations, instead it focuses too much on content at the expense of analytical skill development and much time is spend on classroom teaching rather than facilitating students contact with business worlds.

They describes accounting education and curriculum design as being driven by the interest of faculty and not what is demanded by the market some university now introduce some practical aspect of the accounting but these steps are not enough for the students. The authors further argued that while the traditional accounting program may produce a good accountant, this is not necessarily the right person that the business world requires.

We want to conduct some practical accounting training program like (KFP) Knowledge Fostering Program this program has been designed keeping in mind the growing need of the corporate world for 'work-ready' professionals. Floraison's KFP has been devised to foster knowledge by focusing on the work related 'know-bows' and In turn helping associates nurture their confidence. KFP is a knowledge fostering program, designed with a pre-determined, scientific and well structured curriculum covering all the practical and fundamental aspects related to accounting payroll and compliance domains, with a special emphasis on India entry strategies and new entrepreneur support and is designed to give the associate a sneak peak into the industry expectations and enable them to be 'work-ready'.

Tags: Accounting, India, Vushii