While we tend to think of globalization in the macro sense, often with the attention focused on manufacturing and outsourcing trends, it has effects on almost every facet of daily life, and that includes education. Although accounting programs are notorious for their strict adherence to rules and regulations, things do change over time, and nothing is contributing more to that change than the broad strokes of globalization and its effects on the world’s economic structure.
With more and more companies getting savvy about the organizational structures that are optimized for tax efficiency, modern accounting classes need to take those structures into account, and often, those structures involve a significant international component. At Vista College, we pride ourselves on providing students with the forefront of innovative classes and coursework, giving them the tools they need to succeed in a highly competitive job market. For those interested in learning more about the accounting field and how it continues to change and develop year after year, we’ve put together some of the ways in which globalization is having an effect on accounting programs.
1. Learning the Taxation Systems of Multiple Countries
While in the past, accounting students could reasonably assume that they would only need to be familiar with the tax code of the country in which they planned to work, today’s accounting students are grappling with the reality of a world that has significantly lower boundaries between the economies of different countries. With that shift toward a broader geographic footprint for the economy, there is also a broadening of the taxation systems that account students must become familiar with in order to be competitive and competent in their field.
2. Outsourcing Elements of Accounting
One of the other primary changes that is taking place with the increasing globalization of the world is that certain portions of the account profession are getting outsources to areas in which labor is less expensive. While outsourcing is hardly a novel concept, the idea of parsing out certain elements of the accounting profession and moving them overseas and across borders is certainly a newer change to the role. While accounting has always been viewed as a field that involved a significant amount of “number crunching” and a dexterity with math is touted as a prerequisite, modern accounting roles are shifting some of the more tedious elements to overseas partners or automated programs.
3. The Shift Away from US-oriented GAAP
American accountants of today might look to the GAAP, or for laymen, the Generally Accepted Accounting Principles as their guidelines, a sort of rulebook if you will. While the GAAP is the standard for many accountants, those guidelines are rapidly changing as the emphasis on international accounting standards grows stronger and stronger every year. What’s going to take its place? IFAC, or the International Federation of Accountants is quickly becoming recognized for its efforts to create an international set of standards and practices for accounts around the world, regardless of nation. The resulting standardization of financial reporting and practices is a promising move toward easier international collaboration, transactions, and business partnerships.
Globalization is a massive trend that continues to affect our daily lives in new and unexpected ways, but many of these ways increase the prospects for an increasingly egalitarian international community. Contact a Vista College admissions representative today to learn more about your educational opportunities for a future career in accounting!