MODERN BUSINESS

Evening Post, Volume CXI, Issue 73, 27 March 1931, Page 14

MODERN BUSINESS

PLACE OF ACCOUNTANCY

'•'As ;iueoiiiit;ints, it is oui- duly to ] slant! IjcliJin'l llic Government of tlio day :mhl liolp to deviso tlio most suitiible mi'inis ol' bvingins into force ad- , jusl.iin.Mits in costs tlif.il; \vill onablo llio iuduslrics ol: iha country to coJiipolo ; with tlio ]o^v price levels that liavo been readied in tlio world's markets," said Mr. W. Applcton, IM.A.N.Z., in j the course oi' lii.s address to the Wellington branch oi: the Now Zealand 1 Society of Accountants last evening. "There was never probably a belter opportunity for the trained accountant than there is at the present time," he said. "Under ordinary conditions, the business community rightly expects that* the accountant should possess the ability to produce correct figures, and proper profit and. loss statements and balance-sheets. If members of our profession, however, are to take their right placo in business affairs and be able to help in the economic readjustments that hare.to lake place, they should possess an intimate knowledge of modern business conditions to enable them to act as dependable advisors. I "They should not only be specialists j in figures, but understand the broad principles of commerce. In the old days bookkeeping was just a financial; record, and when trade was confined to j individuals it was a comparatively simple matter for a man to keep track of his affairs and to ascertain quickly his financial position from time to time. Nowadays, however, the business of the community is conducted by large companies, and it becomes a matter of some skill to keep those in charge continuously posted as to earnings and outgoings from day to day. Huge aggregations of capital ha,ve been called into being through the necessity for mass production, with a corresponding low margin of profit. Accurate costing is absolutely essential, and costs have to be watched on every j side. The close- control of overhead, distribution, selling, and other expenses, means all the difference between profit and loss. Then too, the growing burden of heavy taxation, with its intricate incidence, has put a heavyresponsibility on the shoulders of members of the profession. . On top or this, the accountant has more and more come to be looked upon as the guide,] philosopher, and friend in the realm ot.i finance. To-day, in most undertakings, finance is the basis of all business, and it can truthfully be said that accountancy is the key-stone of both.