Whenever international trade is brought up, it is fair to expect the sub-topic of accounting to come up as well. After all, most types of trade, if not all, would be impossible to conduct absent experts who understand finance, taxation, business laws, and many other areas tied to global distribution. And while the impact of CPAs on cross-border operations is quite easy to dissect, what happens when the question is flipped? In other words, what exactly is the impact of trading on the sector operated by accountants?
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Although an average accountant has a plethora of responsibilities, they are seldom engaged in topics pertaining to the growth of globalization. While they may certainly work for international companies and facilitate matters of international tax, they are not the trend-setters who help improve worldwide connections. This is the responsibility of high-level politicians, CEOs, and other mainstream leaders. So, one of the first notable impacts that international exchanges will have is the improvement of accountants’ ability to globalize the industry. For those unfamiliar, this translates to job techniques and strategies that help pair operators from new nations.
Increases the Necessary Knowledge
If one was to use the CPA pass rates as an indication of how hard it is to be an accountant, which is indeed a great way to gauge the level of difficulty, they will probably be shocked. According to the American Institute of Certified Public Accountants (AICPA), which is the administrative body for the license, approximately half of the candidates fail at least once. So, it is fair to say that becoming an accountant is going to be incredibly tough as it mandates a high level of college education and endless courses of continuing education.
Once global trading enters the equation, however, all the knowledge acquired during the initial education may become insufficient. Exchanges that combine multiple countries are often subject to ever-changing international laws and other types of policies that depend on the political climate. Due to this, the field of accounting must constantly seek innovative ways to summarize and supplement its practitioners with the tools that will allow them to thrive in cross-border ventures.
Gives Rise to New Specializations
Many decades ago, the notorious taxation practice in the United States was a general area of work for a lot of accountants. Nowadays, however, the rise of new regulation has given birth to specialists who handle much smaller sectors. For example, instead of focusing on the entire taxation system, CPAs can choose between property, sales, state, federal, value-added, and gift or estate tax.
Well, since international trading came to life, the aforementioned list was further expanded to include international tax as well. Some common duties for folks working within this sector include researching foreign laws, filing the appropriate paperwork with governments of all involved countries, and keeping up with trends related to exchange rates and tariffs. Therefore, global trading has led to a mention-worthy expansion of the practice of accounting. In other words, it facilitated more jobs accompanied by an improved versatility when it comes to areas of practice.
Of course, there are many more connections that could be analyzed. The aforementioned few, however, are the most obvious and important ones when it comes to the impact of international trade on accountants.