An economic depression can be defined as an economic downturn that generally lasts for several years. Primarily, it is characterized by the growth in unemployment rates along with the falling of Gross Domestic Product (GDP). Today if we talk in terms of the occurrence of economic depression in the United States, fortunately the country has not experienced an economic depression since the last one that occurred during the 1930s. It was one of the most serious economic downfalls in the U.S economy that lasted for almost 10 years. In fact, the decline in the GDP growth rates was of such a large scale that the United States has not witnessed since 1930. The key highlights, during the economic depression were unemployment that almost increased to 25% and wages fell by 42%. Besides this, the economic output of United States also chopped from $103 to $55 billion.

If we try to have a deep insight on reasons that caused an economic depression of 1930 then there are several factors. During the 1920s, the country enjoyed a booming economy. In fact, the US was among few nations who were actually producing goods in big amount for which there was little market demand. Unfortunately, this led to a slowdown in agriculture and over production of goods in the factory, which resulted in lose of jobs of millions of people.

The depression was even provoked by deprived monetary policy. Rather pumping money into the economy, the Federal Reserve even permitted the money supply to fall 30%. Though, the “New Deal” was started to end the depression, but government programs alone could not end it. Unemployment remained in the double-digits until 1941. Moreover, many greedy bankers on Wall Street overlooked the warning signs and remained busy in borrowing and investing in stocks for earning more profit. In the end, reality hit the stock market and company valuations finally started to fall. It was during this period when U.S economy witnessed a deep panic selling and the markets went out of control. And, it was just matter of days when the Wall Street officially collapsed.

Today there are many people who still get confused with the usage of terms – “Depression” and “Recession” in terms of economic fall down. Although, both economic recession and depression generally refer to a fall in the economic activity, but more often they have are used interchangeably. Therefore, it is very important to understand that both are very dissimilar, especially if we try to relate in context of their severity.

A decline in the economy for a period of two consecutive quarters can be defined as a recession. Economic depression on other hand is basically considered a more extended slump during which the decline in GDP is almost 10 % or even more high. Therefore, it is very important to note that even a country have more than two successive quarters of recession, it can’t be assumed to have entered into a economic depression phase until the down turn in the GDP in almost all the quarters collectively signs up to at least 10%.
It is important to remember that the economy of every country is fragile. Economy or GDP rate are bound to go through a number of minor fluctuations, but the important point that one need to keep in mind is – whether there is economic recession or depression, one need to prepared to overcome from each fall and learn from mistakes.

No doubt, economic depression is an unavoidable element of any economy. Although it always spell and indicates towards difficult times, but looking on the positive sides such plunges in economy even motivate to formulate new and innovative ideas. Job openings in new sectors are created, as certain businesses unable to prosper in normal periods of economic growth find newer opportunities to grow. The economic depression of 1929 also resulted in the introduction of many new laws and government agencies that work in order to prevent the type of cataclysmic economic pain. Besides this, in present time the Federal Reserve, are even more aware of the significance of monetary policy in regulating the economy. In fact, it was this awareness and learning that helped in preventing a recession of October 2008 turn into severe depression.

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Accounting is a part of business and finance, with a knowledge of which huge transactions and calculations can be dealt with easily. Accounting information system is a sub division of management information system that is responsible for processing financial transactions so as to provide internal reporting to the managers for their respective uses in planning and controlling current as well as future operations and decision making and also to provide external reporting to third parties like creditors, government agencies et cetera.

An accounting information system would require the students to study and practice with accounting with the necessary design, implementation and monitoring of the information systems. The term information technology is used to refer to systems that use modern information technologies along with traditional accounting methods to yield financial information to a user that is mandatory for the management of the organization.

A course in accounting information systems can pave the way for jobs that offer posts like database administrators, software technicians, IT auditors, data security analysts, system consultants et cetera. Accounting information systems specialists earn from $47,500 to approximately $ 69,000 annually. The remuneration increases with experience and certificates. To be able to get the certificates one must have the best of training and education, which depends on the kind of college you graduate from. There are a number of colleges in the United States that offer best courses in training for accounting information systems. Some of the best universities include Strayer University in Birmingham, Brown Mackie College in Tucson et cetera. These institutes provide training in professional systems, accounting technology, computer business applications specialist and computerized accounting or office administration. Top accounting schools in the United States include University of Phoenix, Argosy University, Devry University, Kaplan University and Globe University & Minnesota Schools of Business.

If you have heard of Al Capone and you will understand what I am talking about when I say that it was the Accountants who took on the Mob.

Al Capone was a legendary criminal. He never finished his sixth grade but the man was not stupid. At the age of 26 he became the head of Chicago’s underworld. He gained a stature of an international celebrity because of the odd blend of charm and brutality. In the year 1930, he was the top most wanted man in Chicago.

Chicago in 1920s was facing a lot of brutality and killings. The rival gangs were killing each other and their drive-by shootings became quite common. No one was safe:  neither general people nor public servants. The gangland murders which previously totaled to 16 in  a year, in his rule increased to a massive total of 64.

Al Capone was basically from NY but drifted to the west later on. His career as a gangster started when he was working under the crime leader Johnny Torrio. Johnny was involved in the inner circle of gangsters. After his death, Capone took over and consolidated his criminal career with prostitution, gambling, extortion and liquor racket. He made piles of money from his business ventures, which actually came from the killings and crimes but the case that was handled by his prosecutors make it look like a tax evasion.

He was an astute businessman. He hid most of his illegal earnings and never endorsed a single check in his lifetime. He did not maintain a bank account in his name and therefore conducted all his dealings in cash. After long inquiries and searches, the government was able to find out few people who agreed to testify against him and finally filed a case of tax evasion.

He was ultimately found guilty on that ground and was sentenced to a ten year long imprisonment and one year in Chicago prison. While he was serving his imprisonment Capone contracted Syphilis and brain damage as well. He grew insane after the seventh year due to an infection.

The year 1946 saw the death of Al Capone. His death had quite unexpected effect on the legitimate citizens as well as criminals. They began paying IRS for their back taxes. A grand total of $1million was deposited in the name of unpaid tax-fillings and this amount was just double the amount the previous year’s total.

It was only through the ingenuity of the accountants that a dangerous criminal like Al Capone was arrested. And it is also because of the hard work put in by these Accountants that the common people re-established their belief in the government.

Finance engulfs all industries in itself. A wide range of career opportunities are open today, especially in fields related to finance that focus on analyzing and managing financial information and instruments. The salary in this industry varies with the positions attained in the industry.

For a financial manager the work environment is extremely demanding and has a lot of pressure which can be handled proficiently by an expert who has undergone rigorous training. Several finance related opportunities are available in corporation such as: Banks, Financial Management (Private), Large Corporations, Colleges and Universities and Financial Institutions.

To make a career in Finance, a specific learning and training program has to be followed. First things first, a bachelor’s degree in related field is pre-requisite in order to appear for any competitive programs. Any high level position requires an MBA degree.

Most of the firms at the Wall Street recruit MBA students who have achieved outstanding scores and so prove to be an asset to them. The positions that are available to the students are entirely result based and for this reason the high performers get rewarded with high salary jobs in compared to others. Even the career graph of a finance student depends on his performance at the competitive examinations.

The salary in the job is certainly exceptional. Gradually the demand for finance officials is increasing the job opportunities giving the candidates more choices. Nevertheless, jobs in finance can be stable or volatile, solely depending upon the kind of industry one is working in. The government jobs for instance in Banks, are of course much stable with high job security. On the other hand, those who are working in ventures such as Hedge funds are prone to high job risk.

Let us have a look at some high paying career prospects.

Financial Management
A Financial Manager is required to handle financial matters of a company. He has to prepare the financial report and then after present it to the decision makers. He manages the cash flow and has to make the investment decisions for the company too. Apart from such general requirements, he should be learned enough to understand what the industry is about and can manage its legal matters too.

Personal Finance
Such specialists are required to help the individuals in investments depending on their financial aims, after analyzing the market thoroughly. He should also know about retirement planning, estate planning or college planning.

Finance Controller
A finance controller regulates the capital flow.  He is required to prepare financial reports as well as presentations about company’s financial health. Due to the involvement in programs like investor relations effective and smart communications is important too.

Accounting is the backbone of any business, whether small, medium or large. In fact, the economies of countries globally are tied up through accounting practices.

The discipline of accounting involves grounding in economics, law, finance, management and quantitative methods. Gathering of data, analysis, interpretation and decision making are actively applied. Topics usually discussed are financial statements, risk assessment and control, tax preparation, managing accounting information systems alongside audits and fraud detection. This field has no theory per se and is about application of knowledge through practice.

The career opportunities in this field are immense and global in nature too. New entrants start at entry level positions and steadily graduate upwards based on experience, qualifications and certifications. Opportunities exist across the board in personal accounting and public, private and non-profit organizations. Additional certifications can be acquired by students by sitting through exams for CPA and CMA. Remuneration is also attractive. As per a salary survey conducted by National Association of Colleges in 2006, the average salary offer for Bachelor’s degree holders starting in this field was $46,718. Likewise, it was $49,277 for those holding Master’s degrees.

There are a multitude of courses and programs in the Accounting field. Sometimes, it can be challenging to just choose the right program and institution. Fortunately, the top schools list makes it a little easier for taking a decision. At the very top is the University of Phoenix delivering its best in making higher education highly accessible for students. There is also the Strayer University focusing on adult education, flexible learning and affordable education. Interestingly, Devry University believes in their knowledge that knowledge is not enough and focuses on practical learning. The next in the list is Argosy University that is equally accomplished as the others. Kaplan University primes itself for online learning with campus support.

Each organization requires people who can maintain a track on their everyday accounts and handle different business transactions efficiently and quickly. Do you love working with the numbers? Do you want to qualify yourself for a great job and enhance your computer skills? If so, considering a career in accounting and following an accounting assistant program is certainly the right thing for you. 

An accounting assistant program is a regular 10 months program that will help you get qualified for the job of a full-charge accountant in a small organization. You may also be able to get a job in a large organization as an account payable clerk or can work as a self-employed bookkeeper.

The accounting assistant programs are actually helpful in gaining excellent information about computers as well as manual Accounting Systems. It also increases the capability of an individual to use his knowledge in different business situations. The schools that offer accounting assistants program will help you familiarize with different computer applications like using PowerPoint, excel, Microsoft Word in addition to the subjects like Business Writing, Techniques and Organizational Behavior. 

During the course of an accounting assistant program you will get practical knowledge and experience and will also be able to explore various job opportunities in your field.

Before you think of searching various schools that offer accounting assistant degrees you must know about the responsibilities involved with such a profession. As an accounting assistant you will be looking up for the money of your organization. For instance, you will be responsible for paying the bills, paying checks, issuing invoices and preparing the remittance to the Federal and the province government. You can use faxes, computers and other electronic equipment to perform your job. Most of the Accounting Assistants work for 35 hours a week and usually get an off during the weekend. Being an accounting assistant you have to follow a routine of work.

In order to take admission in different accounting assistant programs you will have to possess certain qualities and skills like:

1. Attention towards the details
2. Familiarity and ease with the numbers
3. Good organization
4. Ability to work on your own
5. Good knowledge of computers
6. Proper management of your time
7. Proper knowledge about your subject

You can choose to get yourself registered in an accounting assistant programs online or offline. There are great numbers of schools working online that can help you in getting accounting assistant degree in matter of 10 months. Going for online accounting assistant programs is a better option as not only you will be able to work in your present job but also you will earn your degree side by side.

A Ponzi Scheme essentially works as long as new investors are investing into the scheme. This in turn propels the continuous returns to the earlier or older investors. Thus, as and when, with time, the new investors stop investing in the scheme, the entire house of cards will collapse automatically. These sorts of investment plans are short-term scams that aid a company to attract or lure fresh and new investors, who invest their money and thus help with unusually consistent and abnormally high returns to the earlier investors. This scheme is often compared to the illegal pyramid schemes.

According to Investopedia, a Ponzi Scheme is named and termed after the clerk Charles Ponzi, who was blamed with notoriety for using such luring investment schemes to dupe thousands of people in New England into investing into Postage Stamp Scheme, back in the year 1919. The man immigrated to the United States from his hometown in Italy. Although, he did not invent this investment scheme, he surely made huge money with the help of this operation and thus came into the eyes of the people who later used the same technique to do the same.

However, the scheme collapses with time as the earnings are comparatively less than the payments made. Also the scheme is watched on with suspicion and thus might get interrupted by the legal authorities. The scheme is often seen as an investment boon for all its investors providing them with high returns even at the time of completion of the scheme. But in reality, such schemes only serve the initial investors or the people who started the scheme – all at the cost of innocent investors who invest towards the later part of the scheme.

A Ponzi Scheme, therefore is essentially a fraudulent operation. Throughout history, there have been several such Ponzi Schemes perpetrated by many people. One of the latest well known scams was the one run by Bernie Madoff who was then sentenced to 150 years in prison. The unveiling of this 50 million dollar scam will remain in the minds of the people of America, close as it came at the early days of the current economic recession.

Technology has laid its impression on almost every field today. There is hardly anything that has not been improved or enhanced by the technology. With all the improvement and development going, the need for getting better is still on. Accounting is not an exception when it comes to the alterations and changes produced by technology. So if you’re wondering how technology has changed accounting then there are few points that you might feel worth reading.

Accounting is equally old as civilization. It existed from the time of the invention of abacus. After that, came the commercial revolution that introduced double-entry bookkeeping. Also, at that time, there were hardly any industries, factories and organizations that have to be looked after to calculate the profit, losses and other tax statements to keep the business running smoothly. In the early times, people were hardly aware of different formulas and applications applied in the field of accounting.  But today accounting is commonly offered as a major study subject.

Although we can say that the changes and updates in the field of accounting have not been made quickly but slowly and steadily, the methods, techniques and principles of accounting have been modified and improved with time. As compared to the 20th century, today we have computers and laptops that completely eliminate the requirement of calculators, pencils and ledgers in just one fell swoop. Now it has become easier and simpler for the accountants to keep a record of the information so that they can eliminate the most frequent mistakes completely. Not only it has provided greater accountability and efficiency but has also transformed the accounting phase considerably.

Although everything has its own qualities and flaws and same can be said about the technology. The electronic information is subjected to sabotage and also several frauds can be made by processing the information. Such kind of illegal activities have opened a new area of forensic accounting. It helps in keeping a track on frauds.

The improvement in the field of accounting has not only assisted the organization and businesses but has also allowed people to maintain a track on their personal money. We are now provided with more facilities like online banking, and a variety of accounting software that helps us in calculating our taxes, automatic payment of various bills, etc.  We should be perhaps thankful to the technology for bringing such an excellent change in the field of accountancy and providing common people with such a comfortable and easy to manage life as now we don’t have to depend upon the calculator anymore!

Thus, we can see that technological improvements to accounting have entered every sphere of our lives – be it personal or professional. And it is with a lot of advantages for the end user – whether it is an accounting professional or a regular person like you and me.

As an accountant, your job is to maintain your client’s accounts. And to add to that, computers and accounting software simply make your life great. Here is a review of the top 10 accounting software which will help you and your clients to manage their finances better.

Accounting software is a boon for so many of us – accountants included! These help us maintain  our accounts – whether personal or for our business. However, with so many options available in the market, it sometimes becomes very difficult to choose the right accounting software package that will be perfect for the accountant as well as for the individuals. Hopefully, this review will help you narrow down your choices.

Peachtree

This software comes in different flavors depending on the number of users. Between Peachtree Pro, Peachtree Complete, Peachtree Premium and Peachtree Quantum buyers can choose from among several features, depending on what they specifically require. Of these, Peachtree Premium and Peachtree Quantum also have Accountants’ Editions, which can prove to be of great use for professional accountants. Added to these are several accounting and business management tools, reports customized for industry specific needs, and even payroll management solutions – you have a complete accounting software package that is just right for your pocket as well.

Quickbooks

A very popular choice of accounting software for personal and professional accounts management, Quickbooks offers something for everyone. Quickbooks is offered in versions Simple Start, Pro and Premier. There is also a free version of the software available for download from the website, and an online version of the software which you can access via the Internet. There is also a Premier version specifically for Accountants. Each of the versions offers a number of features – typically a simple and intuitive interface, access to several reports, payroll and even tax management.

MYOB

This is another popular choice across the board for individuals, small businesses and accountants. A cross-platform software package, MYOB offers the versions Premier Accounting and Business Essentials for Windows users, and AccountEdge, FirstEdge and Checkout for Mac users. Typically the features include invoicing, banking, contacts management, payroll management, inventory management, time billing, purchase management, and over 200 different reports.

Microsoft Accounting Express

Microsoft offers an accounting suite that integrates seamlessly with your other Microsoft products, while allowing you to manage your accounts, invoices, payrolls and even accept credit cards. You can also track your billable time, create quotes and invoices and custom create your reports from 50 available templates.

NetSuite

This is an online accounts management system. There is no software to download and install because it is web based. The website offers different roles for managing accounts, along with a variety of reports and tools for managing accounts receivables, accounts payable, payroll and inventory management along with time billing, costing and banking functions. A good option if you don’t want to install another software package on your computer and want to be able to access your accounts via the Internet.

FreshBooks

This is another web-based accounts management system. Freshbooks offers several features like invoicing, time tracking, estimate creation, tracking of expenses, and client and staff tracking among others. You can have either a free account with FreshBooks or a paid account depending on the number of contractors you want to add. FreshBooks also offers branding solutions helping you create an interface which is in line with your logo and company colors.

BookKeeper

This is a software package offering a complete suite of accounting features like integration with banking, expense tracking, payroll management, creating customized invoices, credit card payment processing, and over 125 custom reports. An additional purchase of Tax Table Updates enables you to automatically calculate your taxes and deductions.

DacEasy

DacEasy is a fairly good accounting software package which offers the typical features and sections like accounts receivable, accounts payable, payroll management, inventory tracking, banking and general ledger entries. A variety of reports from these different sections also allow you to review and manage your business more effectively.

CYMA

CYMA is also another preferred accounting package. Like several accounting software packages, this software also offers accounts payable and receivables, payroll management, banking integration, job costing and general ledger entries. However, it also offers two sections which are not offered by many other accounting software packages: Purchase Order management and Systems management. However, this software doesn’t offer features like inventory and time billing.

NolaPro

A web-based suite of accounts features, NolaPro offers a number of facilities like accounts payable and receivable, payroll management, order tracking, inventory control, point of sale management, and an e-commerce shopping cart. NolaPro also has a number of plugins which enhance the functionality of the accounts suite.

These accounting software packages should give you an idea of what is available out there in the market. Thus, depending on your requirement and the size of your business you can make the right choice.

Accounting is one of the oldest professions. The history of accounting dates back to the earliest days of civilization driven by the trade system of crops and products necessary for survival. As the barter system expanded to include monetary exchange, methods were formalized by 2000 BC. to include the creation of accurate records of the quantities and relative values.

Influence of Earliest Accountants

Through archaeological discoveries of artifacts, researchers are learning more about the true influence the earliest accountants had on civilization. Through their discoveries, archeologists have discovered accountants participated in the development of:

• Trade – expand market for and access to goods and services
• Cities – as trade grew, so did the marketplace
• Concepts of wealth and numbers – personal and governmental planning
• Writing – understandable system of accurate recordkeeping
• Double entry bookkeeping – associated with birth of Italian Renaissance
• Money and banking – helped businesses avoid bankruptcy in Industrial Revolution

Father of Accounting

The history of accounting is not complete without Luca Pacioli (1445 – 1517), also known as Friar Luca dal Borgo and the “Father of Accounting”. Pacioli is credited for the “birth” of accounting. In 1494, he wrote a textbook that was a compilation of the mathematical and accounting knowledge of his time. His textbook provided the first printed description of the double-entry accounting system used by Venetian merchants in the late 15th centrury including a similar accounting cycle as we know it today. The system described journals and ledgers with sections for assets, liabilities, capital, income, and expenses found on the modern accounting balance sheet.

Modern Accounting

As civilization evolved, businesses grew and so did capital markets and with that…accountability. Successes depended more and more on accurate and dependable financial documents. Through time, the role of the accountant has become an integral part of almost every aspect of day-to-day business and governmental regulation. The history of accounting has led modern accounting to become a global, real-time integrated information system driving the direction of accounting expertise and emphasis on the importance of the accounting profession.