Whether you’re an accountant or running an accounting firm, one thing is surely you’re going to face and that’s dilemmas in accounting ethics. When it comes to accounting profession, adopting ethical behavior is necessary to prevent any kind of fraudulent activities and gain public trust. Believe it or not, accounting is most delicate part of any business regardless the size and type of it. As an accountant, you must possess knowledge of accounting business and make sure not to follow unethical or illogical methods of making ends meet.
Well, in this article, I’m going to talk about the potential dilemmas one can face in accounting ethics. If you’re into accounting, make sure to keep reading this article and look at dilemmas in accounting ethics.
Let’s start from scratch.
What ethical dilemma is?
Simply putting, an ethical dilemma is a problem which accountants face while decision-making process. This happens when you have two possible options to make a decision from. No doubt, ethical dilemmas are quite challenging and complicated one and you can’t expect to solve them easily. That’s why finding the optimal solution for such situations is kinda tricky for everyone.
Now hop on to know the ethical dilemmas accountants face.
Dilemmas in accounting ethics faced by accountants
Below given are dilemmas which accountants face in accounting ethics. Just read the points given below:
😟 Lots of pressure from management
There is no doubt that every small, medium, and large organization will put pressure on their accountants for creating balance sheet and financial report of the business. This becomes ethical issue for accountant as they have to maintain true reporting, balance sheet, company’s assets, liabilities, profit, and giving them to corporate officers. In fact, unethical accountants could easily change company’s financial records and depict false picture of your company.
😟 Omission of financial records of the company
Another dilemma in accounting ethic is that some organizations ask an accountant to omit certain financial figure from a balance sheet that depicts the business in a bad light to the public and investors. This is a big dilemma for an accountant as he’s asked to make certain omissions from the company’s balance sheet and financial statement. That’s why an accountant must remain ethically vigilant so that he avoids falling into such as trap. That’s why it’s best idea to hire accounting services in Los Angeles to save your business from falling.
😟 The effect of greed
Greed is common and you can see this in every type of business. Since an accountant has more knowledge about business finance, he might become greedy for profit the business is generating. In fact, an accountant who keeps his eyes on his bank account more than on his company’s balance sheet becomes a liability to the company. No wonder, such accountants can cause real violation in the business.
What are the ways to solve ethical dilemma in accounting industry?
You have already read the ethical dilemmas that accountants face in accounting firm, right. Now you’re going to read about the ways to solve them. Just keep reading below.
Just follow the given approaches to solve the ethical dilemma in the business.
✔️ Follow and value theory approach
Before you get into accounting ethics, you have to learn the theory of it first. When you learn the theory of accounting and dilemmas involved into accounting industry, you better learn the ways to solve dilemmas in accounting ethics to some extent.
✔️ Deny the dilemma
Sometimes the dilemma involved in accounting can be ignored as some dilemmas aren’t that important which are given high attention. That’s why you can easily ignore the dilemma which doesn’t impact or harm your business.
✔️ Always find alternative solution
If as an accountant, you get to see any dilemmas occurring in accounting ethics, make sure to first recognize the problem, and then try to find an alternative solution for it. Finding an alternative solution will help you solve dilemma.
Accounting is most delicate and fragile industry, no businessman can afford to face the loss and risk involved. As an accountant, if you get into ethical dilemma in accounting industry, make sure to find an alternative to the problem or approach any concerned authority that will help you with the situation. Moreover, you can also get in touch with Kayabooks.