In the good old days students had the option of pursuing science, arts, or commerce degrees. Those with a commerce degree could go on to become accountants. Then came globalization and outsourcing. The US, UK, Europe, Australia, and even Middle Eastern countries saw advantages of outsourcing back office operations like accounting to India, which is blessed with a huge talent pool comprising degree holders as well as BBA, MBA, CA and CS degree holders. This means those who are working as accountants can easily find outsourced back-office accounting jobs. The rub here is that such outsourced work originates from US, Australian, or UAE-based countries, where accounting and taxation must be done in compliance with laws of that country. This imposes a challenge and a limitation on Indian accountants who have learnt only about Indian accounting and taxation. Each country has a different accounting method and vastly different taxation laws, with convergence in some areas such as dual taxation policies. In short, there are g regular jobs with high pay, but only if you are proficient in the accounting methods used in various countries. For example, a US-based company may have operations in the UAE and Australia, which would necessitate appropriate accounting and taxation practices keeping in sight relevant methods and laws pertinent to each country. Accountants working for such companies must, of necessity, be adept at business accounting and taxation methods of all countries. Knowledge is always useful, and if you undergo courses that give you specific expertise in US, UAE, and Australian accounting and taxation practices, you will get ahead. It is easy to acquire such expertise by joining short-term accounting courses conducted by Munimji. You may learn offline or online at your convenience and improve your accounting career prospects.
A brief look at accounting methods and taxation policies of USA, UAE, Australia, and India
Here is a brief look at each country’s accounting and taxation policies:
- USA: The US follows Generally Accepted Accounting Principles with a 5-step rules-based revenue recognition model, FIFO inventory, property, plant and equipment valued at cost possibly with no WDV and differentiation between finance and operating leases. As for taxation, there are federal and state taxes, a progressive federal income tax rate, social security, capital gains, and DTAA with various countries.
- UAE: The UAE follows the International Financial Reporting Standards with a principles-driven assessment of performance obligation, FIFO inventory valuation, permitted revaluation of assets, and single-lessee model lease accounting. There is no personal income tax in the UAE, and even corporate tax applies to profits over certain limits. Besides, there is DTAA for double taxation.
- Australia: The Australian Accounting Standards aligned with IFRS govern accounting principles with FIFO inventory valuation, revaluation allowed for assets, and an emphasis on fair value. There are no state income taxes, but only a federal income tax, GST, and DTAA.
- India: India’s Indian Accounting Standards is IFRS-converged with FIFO inventory valuation, revaluation permitted for assets, and single-lessee model. India has a complex tax scenario spread across income tax with various slabs and surcharges, Goods and Services Tax, capital gains tax, and DTAA with various countries.
The above is a very concise summary of accounting methods and prevailing taxation policies in these countries. However, it does give you an understanding that accounting and taxation principles differ on many points but converge on a few. Knowing the differences is crucial if you wish to handle accounting for a multinational company. Munimji is perhaps the only CA-run institution in India that trains accountants comprehensively on accounting and taxation practices prevailing in the USA, UAE, Australia, and India. You will notice that most countries align accounting methods and taxation systems with the US systems. Therefore, if you aim to work in outsourcing companies or a multinational, you will find it in your interest to be absolutely competent in the US and Indian accounting and taxation systems.
What Munimji’s country-specific courses teach you
You can always talk or chat with a Munimji representative to learn about Munimji’s professional accounting training courses for USA, UAE, Australia, and India practices. Just to give you an idea, here is what the course curriculum entails:
- UAE accounting course: You get to learn about business accounting fundamentals relevant to UAE, like basics of accounting, classification of balance sheet, bank reconciliation, use of Tally software, and Excel for data analysis.
- Australia accounting course: You get to learn basics of accounting, journal entries, adjustments, and reconciliation. The other course modules cover Excel, SMSF accounting and compliance, and business communication.
- USA accounting course: Students learn about US business law, regulatory frameworks, financial accounting principles, corporate finance, auditing, US taxation, financial markets, cost accounting, and the US banking system among other topics.
Is it worth the time and expense?
It certainly is worth the time, effort, and money to acquire in-depth knowledge about accounting and taxation practices of various countries, especially if you wish to get into high-paying back office international accounting jobs. For context, an accountant in an Indian company may be paid Rs 15000 for bookkeeping, but an international accountant with Munimji’s training could be looking at a remuneration north of Rs 50000. That, and a path to top posts, should be more than incentive enough to take on all accounting courses at Munimji in Ahmedabad, either online or offline.