Knowledge that Transforms

The article discusses the differences between the profession of accounting and the profession of accountancy. It lists the definitions of the terms which brings one to the conclusion that there is no profession of accountancy but there is a profession of accounting, namely public accounting. The article suggests that a profession should exist if practitioners are to receive full professional recognition and status. It defines the profession of accounting, a controller's obligation to judge, measure and disclose which extends through the internal and external fibre of the organization. It discusses the question of whether a controller can obtain true professional status and enumerates the four specific requisites against which the professional status of a controller can be measured, which are, special training for a degree distinct from the usual degrees in Arts and Science, principally mental rather than manual or artistic skill, recognizing the duty of public service and the compliance to a code of ethics for controllership.

The accountant most certainly needs some knowledge of tax planning regardless of the area of his specialization. Most business executives are aware that there are opportunities to save on taxes. The nature of these opportunities is not nearly so well known. Consequently, they are frequently overlooked and unnecessary tax obligations are incurred. It is important that tax saving opportunities be recognized when they arise. While it is sometimes possible to take advantage of opportunities which were overlooked on an earlier date, the usual result of tardy recognition is a lost opportunity. Taxes cannot be neglected because it is net income after taxes that is important. In view of the importance of tax planning in the management of business, it seems desirable that instruction in the subject be made available to all students of business administration. The interests and needs of different classes of students vary widely and must be considered in determining the extent and timing of their work in tax planning. Organization of a separate course in tax planning has a number of disadvantages.