Factor That Affects Accounting Practice in Nigeria
FACTORS AFFECTING ACCOUNTING PRACTICE IN NIGERIA AND THE WAY OUT
Accounting Practice refers to the routine manner in which the day-to-day financial activities of a business entity are gathered and recorded. A firm's accounting practice refers to the method by which its accounting policies are implemented and adhered to on a routine basis, typically by an accountant and/or auditor or a team of accounting professionals.
In another context, an accounting practice is intended to enforce a firm’s accounting guidelines and policies. It exists as the daily recording of financial data that is important to the evaluation and monitoring of the firm’s economic activities. Accounting practice refers to the normal practical application of accounting and /or auditing policies that occurs within a business.
In Nigeria, accounting practice faces its own challenges just like in every other countries of the world. Generally, the professional practice has being designated into three levels of practicing or firms.
These are: 1. Large or Big accounting firms, 2. Medium accounting firms, and 3. Small accounting firms
There are common and unique problems associated with each class/level as far as practice is concern. However, this paper will dwell on common issues that really affect accounting professional practice in the country. * Poor economy. The downward trend of the country economy has its impact on various businesses and organization. The profession operates as a subset of the economy, therefore we cannot isolate the practice from the economy hence the poor performance of the economy equally affect the practice. However, the tough economy has been a real motivation because it enforces a constant discipline upon firms that requires them to be much better than service providers. The crash and slow economy recovery process have exerted downward pressure on tax and audit process and made the competitive landscape very challenging. This has forced firms to get much better
Accounting Practice refers to the routine manner in which the day-to-day financial activities of a business entity are gathered and recorded. A firm's accounting practice refers to the method by which its accounting policies are implemented and adhered to on a routine basis, typically by an accountant and/or auditor or a team of accounting professionals.
In another context, an accounting practice is intended to enforce a firm’s accounting guidelines and policies. It exists as the daily recording of financial data that is important to the evaluation and monitoring of the firm’s economic activities. Accounting practice refers to the normal practical application of accounting and /or auditing policies that occurs within a business.
In Nigeria, accounting practice faces its own challenges just like in every other countries of the world. Generally, the professional practice has being designated into three levels of practicing or firms.
These are: 1. Large or Big accounting firms, 2. Medium accounting firms, and 3. Small accounting firms
There are common and unique problems associated with each class/level as far as practice is concern. However, this paper will dwell on common issues that really affect accounting professional practice in the country. * Poor economy. The downward trend of the country economy has its impact on various businesses and organization. The profession operates as a subset of the economy, therefore we cannot isolate the practice from the economy hence the poor performance of the economy equally affect the practice. However, the tough economy has been a real motivation because it enforces a constant discipline upon firms that requires them to be much better than service providers. The crash and slow economy recovery process have exerted downward pressure on tax and audit process and made the competitive landscape very challenging. This has forced firms to get much better