Education plays a very important role in civilization of any nation. Education does not contain to obtain bookish knowledge, read articles or informative novels but it is a comprehensive guideline to spend a civilized social & professional life. It provides us better behavior techniques by which use we can get our life’s goals & targets.
A well-educated person can do work in smart ways as compared to an uneducated person. His input will be minimum with maximum output results. An educated personal presentation, the way of communication, the solution of problems even his surrounding environment will inspire the society. In a result of this, the society will also help him to get his goals.
In earlier days of previous century educational institutes were very rare in their numbering. Their aim & objects are just to educate the people as many as they can without earning profit & known as “Not for Profit” organizations. The interest of people is also very little to get an education, but with the passage of time when people saw a boom in the life of educated personals, they would interact towards it. As well as some more people got education & interest of people enhanced the educational institute also enhanced their capacity & changed their objectives.
Now in modern era education is one of the best profitable industries of our economy. Many schools, colleges & universities produce their name as a brand in this industry. With the expansion of business and change of objectives this industry also feels to manage their records in better ways.
Now in these days when the main objective of educational institutes is to earn profit it is essential for them to hire professional accountants & managers who can maximize their profit. It is a very challenging role for professional accountants & managers too because there is no hard form of goods or tangible finished goods.
In normal accounting cycle in any industry e.g. Textile, Sugar, Cement is easy to understand & perform practice in daily official life as there are thousands of examples & guidelines are available. Easy to understand the data & information. Prepare the summary from that data & then report it to higher management as per their requirement.
As accountant we need to do the same practice in the educational industry too. We need to understand the requirement of the user of reports, identify the relevant data, summarizing it & then report it to management as per their need by following IFRS & IAS. As an example of above-said objective, the best report can be represent is the analysis of cost & revenue & profit comparisons with other institutions in the same market.
We should mind it that comparison always be on like to like basis.