Multinational accounting firms - opportunities & threats

Abstract

The accounting function is the most important control mechanism for organizations. Since its inception with the double-entry form of bookkeeping, accounting has grown to handle transnational deals and is seen as a crucial indicator of the health of major corporations worldwide. The most important function of accounting is to enable stakeholders of an organization, keep track of its performance, management, and ensure use of funds for adding value. At a macro economic level, accounting is used by Governments to publish information about the key indicators of the country's economy (national accounts) which would help take policy decisions. Since accounting uses the common language of 'numbers', it transcends national boundaries and hence, establishes itself as a common metric for benchmarking at all levels of the economic chain: Across countries, across industries within a country, across firms operating within an industry, and finally, various divisions within a firm itself. This advantage of a common metric has enabled firms to look at extending businesses across nations, and smoother execution of transactions worldwide.