The purpose of accounting is to gather and report on people financial information about the
performance, financial position, and of course the cash flows of the business. Gathering this
information is used to understand decisions about how to manage the business, how to invest
within it, or how to lend out money. Accumulating in accounting records with accounting
transactions, which h are recorded through standardized business transactions as customer
invoicing or supplier invoices, or through more specialized transactions. The four user groups
usually interested in financial information within a business are owners, managers, creditors, and
government agencies. Financial statements are needed by owners to make decisions on the future
activity of a business. Accounting information is needed by managers for planning, controlling,
and decision making process. Creditors are interested in accounting information because it
enables them to determine the credit worthiness of the business. Lastly, it is needed by the
government to ensure that it is in accordance with the rules and regulations and that it protects
the interests of the stake holders who rely on such information. CPA is a professional trained
accountant who specializes in handling tax needs or your personal business. CMA are pretty
similar to CPA, but they focus on cost accounting, financial planning, and management issues.
CIA is a specialized form of accounting for an organization’s financial information, which
includes systems, policies, and records. If I were to choose the area of accounting to pursue, it
would be the CPA route. I know several CPA’s that have given me insights about the work and I
also like the fact that they deal with businesses.