What is ABM all about?

The Accounting, Business and Management (ABM) strand provides students with the skills and knowledge they need to work in the corporate world. This senior high school strand is for students who want to become business leaders and entrepreneurs.

This strand would focus on the basic concepts of financial management, business management, corporate operations, and all things that are accounted for. ABM can also lead you to careers on management and accounting which could be sales manager, human resources, marketing director, project officer, bookkeeper, accounting clerk, internal auditor, and a lot more.

If running a business, talking to clients, and coming up with strategies to earn money sound like your ideal career, then ABM is the right strand for you.

UNDERSTANDING THE FIELDS INVOLVED IN ABM STRAND

When it comes to getting a good grasp of the ABM Strand, you have to first get acquainted with the two central and all-encompassing fields involved. Let’s take a comprehensive look at all the factors that come into play within the cornerstones of the ABM Strand:

BUSINESS ADMINISTRATION

Business administration in its most basic definition is the management of a business. It involves each and every aspect of both overseeing and supervising business operations and all its related fields: accounting, finance, and marketing.

The administration of a business is a process that involves both the management and performance of business operations and all the necessary decision making, as well as the efficiency and effectivity of organizing people and resources as to direct activities towards tangible objective and goals.

In general terms, business administration pertains to the broader management function which includes all the associated finance, personnel, and MIS services.

A person working as a business administrator is in charge of overseeing a business and its operations. The central aim of the job is to ensure that a particular business is properly organized, managed, and meets its goals.

The tasks that a person in this position has are varied and immense in wideness. These often involve overseeing daily operations, making plans for the success of the business, and ensuring that the right staff members are hired and adeptly trained. When organizational changes are necessary, a business administrator paves the way for taking the right measures.

There are some cases wherein a person who starts and owns a business also functions as its central administrator, but this is not always the case; companies often times hire an individual for the administrative job. A person that works as a business administrator essentially functions as the manager of a company and even of its other manager. This person monitors those in managerial positions as to secure that they adhere to the company’s policies and efficiently work towards the company’s goals.

Business administrators may also work alongside with the managers solely directed for human resources, finance, accounting, marketing, production departments as to make sure that they are focused and working in-line towards the company’s objectives. Also, business administrators might interact and communicate with people outside the company, such as business partners, vendors, etc.

OVERVIEW OF ACCOUNTANCY

Accounting is a field that has to do with the measurement, processing, and relaying of financial information with regards to economic entities, such as corporations and businesses. The accounting field has been called the “language of business” because it measures and facilitates the results of an organization’s economic activities.

Practitioners of accounting are known as “accountants”. Another term synonymous with accounting is “financial reporting”.

Modern accounting has been defined as the keeping and preparing of an entity’s financial records. The main job of a professional accountant mainly involves the verification and analysis of such records through the fundamental principles and procedures of accounting.

Let’s explore the main fields in accounting:

• Financial Accounting

Financial accounting centers on the reporting of an organization’s financial information for creditors, investors, and potential investors. It involves the calculation and recording of business transactions as to prepare financial statements for said external users in accordance with the GAAP or Generally Accepted Accounting Principles.

• Management Accounting

Management accounting is focused on the measurement, analysis, and reporting of information as to assist managers in making the right decisions that are geared towards the fulfillment of an organization’s main objectives and goals.

In the field of management accounting, internal reports are based on cost-benefit analysis, and are not required to adhere to the GAAP.

• Auditing

Auditing is basically the verification of assertions that were made by others with regards to payoffs. In the field of accounting, this refers to the unbiased examination and evaluation of an organization’s financial statements. An audit is a professional service that is conventional and systematic.

• Accounting Information Systems

Accounting information systems are an integral part of an organization or company’s overall information system that is centered on processing its accounting data. There are many corporations that utilize artificial intelligence-based information systems.

The banking and finance industry uses artificial intelligence for customer services and is also used for cybersecurity. Accounting information systems utilize both computer hardware and software systems for statistics and modeling.

• Tax Accounting

Corporate and personal income are taxed at varying rates, both in accordance with income levels with different marginal rates. Tax accounting generally concerns the recording, examination, and analysis of an individual or company’s tax rates and their adherence to tax policies.