Issues Faced by Futuristic Accounting

Contemporary business issues refer to the problems that occur in a business. These issues often lead to problems in the organisational context and prevention of these is important for an organisation. In the context of Futuristic Accounting, these issues normally arise from the context of an account. Abend (2014) stated that most people are of the view that accountants do not have to do much work in an organisation. Accountants provide important decisions regarding internal as well as external investments. In small organisations such as Futuristic Accounting, the accounts are the main stakeholders of the company. They also deal with businesses that are related to Information Technology as well as areas in management. The business issue in Futuristic Accounting is the stereotype of the employees regarding the role of an accountant.

The perception and belief that an accountant does not contribute to an industry is the issue that needs to be solved. In order to do so, it is necessary that people involved in the accounting department be given multiple roles and responsibilities in order to prove their worth. As stated by Goretzki, Strauss and Weber (2013) in small organisations every employee has multiple roles. Similarly, in Futuristic Accounting, the roles of the employees working in the accounting department and the roles of the employees working in other departments need to be merged. This is one way of identifying the roles played by the employees in various departments in an organisation.

The situation in Futuristic Accounting is the stereotypical mindset of the people. The perception in which the employees believe in the superiority of the job roles played by them underpins the fact that every employee considers unethical approaches practised within the organisation. According to Gray (2014), unethical practice in an organisation can create differences among the employees that may hamper productivity. Employees need to be motivated in order to increase productivity and help an organisation to attain success. Keeping this in mind it can be said that the situation in Futuristic Accounting is by no means stable.

Leighton (2015) stated that the influence of ethical biases often leads to a loss for an organisation. This is mainly because of the fact that unity is one of the major factors that an organisation needs to maintain. Proper communication between employees in every department is needed in order to achieve the objectives of the organisation. Such a situation is faced in Futuristic Accounting and the gravity of the situation is high. This is mainly because of the fact that the organisation is a small private sector that possesses a profit-making motive. Thus, the existence of these issues plays a major factor in the success of Futuristic Accounting. The managers need to take immediate action in order to control the situation and ensure that the organisation does not suffer due to the existence of these issues.

The Role of Accountants in Futuristic Accounting

According to Enofe, Nakpodia and Moruku (2014), the accounts department form an important part of an organisation. This is because the people working in the department calculate the budget, profit and loss statement, balance sheet and valuation of assets. The process required to make such calculations can be lengthy, time-consuming and requires focus from the employees. Focus while calculating is required in order to ensure no mistakes are made that may influence the decisions in an organisation. Hence, it can be said that the role of an accountant is important for the success of an organisation.

Such concepts can be applicable in Futuristic Accounting. This is mainly because of the fact that the employees from other departments in the organisation are of the view that the accountants do not have job responsibility. This can work as a de-motivation factor for the accountants. This, in turn, can influence the mentality of the accountants and force them to commit mistakes. As stated earlier, Futuristic Accounting is a small private sector that aims at a profit-making initiative.

Every business organisation needs to formulate plans in order to address issues that may hamper the progress and growth of the organisation. These plans need to be formulated keeping in mind the resources available and the ways by which an organisation can implement it for future purposes. Schaper et al. (2014) stated that in the case of any ethical issues that arise in the organisation, the plans required for maintaining this needs to be formulated in an effective manner. In the case of Future Accounting, this is a major concern for the company. In order to address the issues, it is needed that the company formulate plans that can help in removing the ethical biases among the employees. However, the main issue that is faced is that other employees perceive accountants in a different manner. Hence, the plans need to be implemented keeping in mind the ways to change the perception of the people. This can be done systematically by delegating roles and responsibilities to the people. The major focus needs to be made on the accountants who need to be given duties related to management and Information Technology. Thus, this can help in implementing the ways by which the perception of the employees can change.

In order to gain knowledge about contemporary business issues and the ways by which it can affect the organisation, it is necessary to take assistance from certain research articles that can help in exploring this area of business. According to Smallbone, Welter and Ateljevic (2014), the rise of entrepreneurship in the market context is one of the issues behind the existence of business ethics. The factors that need to be studied in the market needs to be evaluated in a broader manner in order to avoid any unethical issues that exist in the business scenario. Similarly, DesJardins and McCall (2014) were of the opinion that business ethics in the free market can cause problems in among the employees. The ethical considerations need to be maintained in order to understand the ways by which, a business can be carried on without the ethical biases.

Formulating Plans to Address Ethical Biases

Weiss (2014) also stated that in order to identify the issues in business the involvement of the stakeholders is important. This is because the stakeholders remain concerned regarding the welfare of an organisation. Similarly, Wellington (2015) observed that a proper education about ethical issues that may hamper business is necessary to be conducted. The education needs to be in the form of theoretical or in the form of practical application for the employees. Brass et al. (2014) was of the opinion that perceptions of the employees working in an organisation need to be changed in order to maintain a stable work environment. This needs to be done in order to understand the ways by which employees can be motivated at a work place. For this reason, the ability the understand the demands of the employees is necessary.

The issue that is faced by Futuristic Accounting is a general misconception that may occur in any organisation. This issue needs a clear understanding of the concept and the ways by which these issues need to be protected in an organisation. West (2014) stated that certain regions in the world characterise the philosophy as the general idea that exists in an organisation. Actions such as compassion, tolerance and harmony can help in preventing the rise of these issues in the organisational sector. Trevino and Nelson (2016) are of the opinion that business sectors around the world require proper knowledge about ethics and the ways to maintain it. The laws related to a business need to be maintained and made available in the b bulletin boards so that employees do not violate the ethical code set in the region of the business.

On the other hand, Crane and Matten (2016) stated that the management of corporate citizenship is an important factor for business. Accountants need to be perceived as valued members of an organisation and the roles they undertake need to be respected. This is an important aspect in the age of globalisation, as people tend to believe in the ethical considerations. Barry (2016) was of the opinion that business ethics is a historical phenomenon that has been established from a long time. However, with a change in time, it is also required that the business organisations set up new rules reading ethical considerations. This can help in understanding the ways by which the effect of globalisation has taken place in the ethics of business. Finally, according to McDonald (2014), contemporary business issues can be dealt with the support of the co-workers. It is necessary that every member of an organisation work together in order to achieve organisational goals and maintain discipline in the organisation. The unity of the organisation can be maintained and every employee can benefit from the experiences gathered from the other. In this regard, the skills and knowledge of the employees can increase vehemently.

Gaining Knowledge about Contemporary Business Issues

After analysing the articles that help in understanding the ethics, it can be concluded that most of the articles establish a link between ethics and the way it affects a business. The articles help in understanding the ways to deal with the ethical issues that arise in an organisation. One of the best ways to mitigate the issues is by the imparting knowledge among the employees. In the light of this statement, it can be said that the ideas imparted in the articles can be related to the situation that occurs in Futuristic Accounting.

This is indicative of the fact that the issues faced by the organisation require intense knowledge to cope up with the situation. As per the situation in the organisation, the fact that the employees do not consider the role of an accountant as important indicates that the ethical issues are high in the organisation. In order to contain the issue, it is necessary that the organisation begin to delegate works among the employees. Apart from this, the importance of imparting knowledge among the employees regarding the ethical laws needs to be given by the organisation (Burns and Needles 2014). Thus, these links can be established with the scenario that is presented in the article and the organisation.

Contemporary business issues can hamper the progress of an organisation. However, there are certain positive factors that can be gained in after dealing with these issues. As mentioned by Epstein, Verbeeten and Widener (2016), every organisation needs to embrace the positives that can be derived from any act that causes a sense of negativity in the organisation. The negative factors need to be seen as strengths that can help in further improvement of an organisation. However, the organisational contexts are different in every for every company. Hence, the advantages may also vary depending upon the ways by which these organisations function. In the light of this, it can be said that in the case of Futuristic Accounting, the managers need to focus on the positivity that can be derived from this ethical biases.

This is because the shift of the roles and responsibilities can help an organisation to maintain flexibility among the employees. For example, a person working in the accounts section can be useful if the role is shifted to a different department. The knowledge gained from such a shift can help the employee, as well as the organisation as internal transfer or promotion, can be given to the employees. Apart from this, it can also help to identify talents and increase the reputation of the organisation. The fact that it is a small private limited company, the rotation of responsibilities can help in improving the skills of the employees and improve the ways by which the organisation can function properly.

Delegating Multiple Roles and Responsibilities for Accounting Department

After analysing the advantages and benefits that are derived from the use change in role and responsibility, certain difficulties need to be shed light upon. These difficulties arise because of various factors that may affect the business. Mistry, Sharma and Low (2014) stated that these difficulties mostly arise due to the internal factors of the business. The internal factors denote the employees and the changes that they need to undertake in pursuit of the roles played by employees. The change in role is usually considered as a challenge for most employees. In this regard, it can be said that managers also take a risk while implementing the changes in the organisation.

In this context, it can be said that Futuristic Accounting also faces challenges that in the adoption of new roles. The main challenge is the fact that training is required for the employees in order to adopt the different roles. This is important in order to make the employees understand the role in a proper manner. However, Dickmann, Brewster and Sparrow (2016) stated that training of the employees could cause financial loss for an organisation. This is because the production needs to stop, as employees need to learn about the new role and equipment. This can be a huge challenge for a small organisation like Futuristic Accounting as the setup and built by the company is required.   

Figure: Conceptual map

(Source: Created by author)

The cost implications that can occur due to the issues are the fact that Futuristic Accounting needs to employ people with knowledge regarding a type of job. The ways by which the company can exert itself in the market may depend upon the authenticity by which it can rectify the problems in the sectors. According to Goldman, Nienaber and Pretorius (2015), cost implications need to be done in order to access the ways by which an organisation can implement itself in the future. The costs required for maintaining the resources and provide training to the employees need to be checked based on the situations of the financial situation of a company. In the case of Futuristic Accounting this is an important aspect for the company as the training and developing of employees in various roles require a huge investment. The cost implication can be identified in every department of the organisation. In order to handle clients, the company needs to make certain investments. Records of these investments are required to be maintained in the organisation.  

Imparting Knowledge Among Employees on Ethical Laws

 According to Richards and Daston (2016), the movement from one approach to another can be stressful for the employees. This is because of the fact that the employees need to adjust to the new role in an effective manner. The contemporary business issue that arises in this context signifies the importance of the changes that take place. Change is a necessary part of an organisation. Organisational change is done when the work process in a particular organisation fail. Hence, it is for this reason, Futuristic Accounting need to understand the ways by which the changes can be maintained in the organisation.  In most occasions, it is seen that the employees remain dissatisfied due to the changes that take place in the organisation. Hence, the issues cannot be solved effectively due to the change of roles. It is the role of the managers to solve these issues for the success of the organisation. The changing of roles need to be done subtly and with time in order to provide proper management effort for the organisation.

Laguna, Cocho and Miramontes (2016) stated that contemporary business issues have a high impact on the stakeholders. This is because the stakeholders invest a lot of amount on a particular company. This is an important aspect of an organisation as stakeholders are the people that direct the working of an organisation. Any issues that arise in an organisation severely affect the internal as well as the external activities. In the case of Futuristic Accounting, the stakeholders include the employees and the customers. Any issue within the employment can result in the low growth of productivity. This, in turn, can hamper the satisfaction of the customers. Overall, the production and growth of an organisation depend on the ways by which employees develop and utilise their skills (Taylor 2017). Customer satisfaction is also important in order to increase the reputation. Without proper coordination between the employees, production may stop that may lead to the dissatisfaction of the customers and loss of business. Thus, the impact upon the stakeholders is high as it may end the business of Futuristic Accounting.

In conclusion, it can be said that Futuristic Accounting is a small private organisation that is trying to establish itself in the market. The organisation deals with client handling that requires maintaining the satisfaction of the customers on a regular basis. Financial stability of the organisation is a main issue as most clients fail to make the necessary payments. Hence, the job role of an accountant is important in order to maintain the financial statements of the company. However, there are certain issues that arise in the company, which may affect its progress and growth. The basic issues that the organisation face is the employee issues related to job roles and responsibilities. The accountant of the organisation deals with a lot of criticism regarding the job role and the contributions it makes for the organisation. This issue needs to be mitigated by the managers by prompting the promotion of a flexible working environment. This can help the organisation to maintain the skills of the employees and ensure that proper productivity is maintained in the organisation.

Reference

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