Tiger Woods Foundation

Job Description

If you love to work with money and math, have a knack for finding the needle in a haystack and want a skill that applies to every type of business under the sun, this may be your dream job.

Accountants keep track of, inspect and manage the financial records of businesses or individuals. They are needed wherever money is being made and spent, examining financial records to determine a range of critical information for the people who employ them. Accountants work in many industries: They track spending trends of sports fans to help teams predict future profits and budgets; they work as FBI agents to discover inconsistencies and fraud by companies under federal investigation; and they help not-for-profits, like city symphonies, develop their funding strategies. Being an accountant also incorporates a thorough and cumulative understanding of tax law.

Top 10

MONEY, HONEY: Accountants use special words relating to money. Many of these words will become part of your own everyday language as you enter the working population, but if you're interested in accounting as a career, you can start learning now with these 10 simple financial concepts.

BALANCE: In basic accounting, the balance is the amount left after all monies earned have been added and all monies paid have been subtracted. An individual's monthly balance is all the money he or she earned or received that month minus all of the money he or she owed in bills -- electric, water, gas, cell phone, cable, whatever -- minus taxes owed on the money earned. You can figure a balance based on any time frame: daily, weekly, monthly and yearly. It is important to "balance your checkbook" periodically to ensure that you don't commit more money to purchases than you have in your account.

BUDGET: A budget is an itemized list of all estimated costs for an individual, household, company --- any entity - over a given period of time. This is different than a balance because it is an educated guess made before spending occurs. For example, you can create a vacation budget by taking the money you have available to spend and subtracting estimated costs of airplane and train tickets, meals, hotel rooms, rental cars, shopping -- anything that you think you'll spend your money on. By making a budget, you can better ensure that your spending won't exceed your available funds.

CAPITAL: Capital is wealth in the form of money or property, used or gained in business by an individual or a company. This means that if a company buys land, machinery, cars, cows -- anything that has value in the process of doing work -- all of those "things" are capital and constitute part of the company's overall worth.

COLLATERAL: Collateral is property, or capital, used as insurance against a loan. This means that if your mom and dad go to the bank to ask to borrow money to buy a new car, they can use your house as collateral on the money. The bank will give your folks money in the form of a loan to be paid back over time. But, until the entire amount of the loan is repaid to the bank, the bank owns a portion of your parents' house. Once the final repayment is made, the house and the new car then belong to your parents outright. In the meantime, they get to live in the house AND drive the new car, provided they make their loan payments as required by the bank.

CREDIT: Credit is a payment or purchase made according to an agreement to pay the money value of the credit over a specific period of time. This means that if your mom buys you a birthday present on credit, using a credit card, she has some time, often 30 days, to pay for the purchase she has made. If she doesn't pay it in 30 days, the creditor -- often a bank -- will add a charge for every 30 days late she is on the amount. It is very important to have "good credit" and make your payments on time so that future monies can be borrowed when you need them. Credit is the first sign a bank looks for when considering whether or not to loan money to an individual or a business.

DEBT: Debt is money owed. If your dad borrows money in the form of a loan, or purchases something on credit, and then is unable to pay back the creditor or bank in the time agreed upon at the time the loan or credit was granted, he is then in debt. And if he continues to be unable to repay the money he owes, his debt will increase. Debt can become big enough or late enough that future requested loans are denied.

GROSS: Gross income is the amount an individual or company earns before subtracting expenses and taxes. The monthly gross income for a hotel is the amount it made by charging for rooms, food and services. The gross is not the amount a hotel ends up making in the end -- the profit -- since the electricity, water, gas, food and employment costs are paid out of the gross.

INTEREST: Interest refers to the charge a creditor makes on loaned funds, usually in the form of a percentage. So, if you go to your parents to ask for a loan -- say, $10 to buy a video-game cartridge -- they may loan you the $10 for two weeks interest-free. This means that if you pay them back in full in two weeks, you're even. But, if you don't manage to pay the full $10 in two weeks, they may add a charge of 2 percent per week on the money you still owe. That 2 percent is interest.

LOAN: A loan is borrowed money in good standing. A loan that falls below good standing becomes debt. Loans are generally larger amounts than what can be satisfied with a regular credit line. Loans are granted every day but are generally limited to those who can establish a good credit standing. Before a bank loans an individual or company funds, they run a credit check to determine the financial history of the person or business applying for the loan. Loans are granted to those with good credit who can demonstrate their ability to repay by establishing sufficient income or a budget plan that reasonably fulfills the loan.

PROFIT: Profit is the amount remaining once all operating costs have been subtracted from the gross. Profit is always the balance, but balance is not always profit, as unfortunately sometimes costs exceed earnings. Profit is never negative. If there is nothing left over after costs, there is no profit.

How to Get There

Make It Count!

• Work! A great start in accounting is having a small business to force you to manage money. Start with a paper route or babysitting services. Ask a parent to help you to open a bank account. Keep a running record of money going in and coming out.
• Reading, writing, 'rithmetic. Quick and accurate math skills are essential to a successful accountant. Accountants must also read with great attention to detail. They need to be able to follow instructions to a "T" to ensure accurate and proper tax submissions. Pay attention in your math and language arts lessons to set a foundation for your future.
• Be accountable. Accountants work under strict deadlines and become busiest during tax season when businesses and individuals are scrambling to make tax deadlines that, if missed, carry penalties. They must be very organized and able to keep accurate records. In the world of accounting, time really is money, so learn to take deadlines and accuracy seriously in all of your efforts.
• Fluent finance. Learn more about money, taxes and investing by visiting your local library to ask your librarian for books on accounting and by searching on the Internet under keywords "KIDS MONEY" to find tons of information, games, classes and tours designed and written especially for kids.
• Treasure trove. Running for class or club treasurer is a fantastic way of introducing yourself to the responsibilities of accounting. If your school chorus is raising money for a trip to perform in a nearby city, volunteer to manage the fundraising process.
• Get with the program. Becoming a certified public accountant -- a CPA -- requires passing the nationally-recognized and required CPA exam prepared by the Board of Examiners of the American Institute of Certified Public Accounts (AICPA). To find out about courses, testing and individuals in your area involved in professional accounting, visit the AICPA on the Internet or search CPA in your local area.
• Spread out. One of the most important and widely-used tools in accounting is the spreadsheet. For a good accountant, a spreadsheet is as crucial as a calculator in the detailed tracking of funds. Accountants customize spreadsheets according to the specific needs of the project. You can learn how to design a spreadsheet by finding resources in your library or on the Internet.

Activity

Give Me Some Credit!: This activity will require the assistance and willingness of your parent or guardian. Think of something that you really want but just can't afford to buy yourself. Choose something that your parents would probably agree to buy if they had a special reason or occasion to celebrate, such as your birthday. Some possibilities might be a video game, a magazine subscription or a new pair of sneakers.

Next, sit down and write a list of chores that aren't normally required of you, but that you can do and do well (even if you don't like to do them). Some examples:

• Dishwashing duty
• Trash removal
• Vacuuming
• Pet care: feeding, bathing, administering medicines
• Bed making
• Recycling
• Lawn mowing

Think of unassigned chores around your house for which you wouldn't normally volunteer your services. Every household is different. Your parents may not expect to pay for certain contributions, so you may have to come up with a list together.

Now determine together what a complete job entails for each chore on your list, as well as a dollar amount to which the job's completion is equitable.

EXAMPLE:

Dishwashing duty entails the following:

• Clearing and wiping down the dinner table after the family is finished eating
• Rinsing the dishes that go into the dishwasher and placing them in the dishwasher, mindfully avoiding any breakage
• Placing the dish soap in the receptacle as directed and running the dishwasher
• Cleaning non-washer-safe dishes with soapy sponge thoroughly and rinsing
• Drying non-washer-safe dishes and putting them away in their proper places
• Leaving the kitchen clean and tidy

Estimated time: 30 minutes.
Value: $2 per dinner dishwashing duty.

This is only an example. In many homes, dishwashing is not a chore for which children are rewarded monetarily. This is why your list must be made together with your parent or guardian.

Now, determine the cost of the item on your wish list and explain to your parents that you wish to apply for a line of credit equaling the cost of your item. For example, if your item is a $50 video-game cartridge, explain that you are applying for a $50 loan for the purchase of a video game. Next, design a payment plan that allows for regular payments to your creditors through the performance of the described chores. Allow for penalties in the event that a payment or chore is missed or incomplete. Include a clause that allows for the creditors (parents/guardians) to seize the video game if the account goes delinquent for too long, along with an additional penalty.

For example, you can commit to performing $10 in chores a week until the amount is fully repaid. If you don't complete your chores one week, your parent/guardian "creditor" can add a $2 per week late charge to be added to your total credit balance. (This means you'll pay back $52 instead of $50 if you're late one week.) Your parent/guardian creditor can seize the item if payments/chores cease for two consecutive weeks. This can be a tricky negotiation!

Once the terms of the loan are fully agreed upon, everyone must sign the agreement. Post it on the refrigerator or other common location. Have the creditors pick up the item and present it to you along with the receipt. Post another piece of paper on the fridge to record completed chores along with their dates of completion and assigned value. Have a parent/guardian creditor initial each completed chore as it is finished to avoid any future argument about payments made.

Q & A

Q. How do you get to use creativity in your work?

Marge K., who's been a licensed CPA in Columbus, Ohio, since 1986, says:

Well, unlike many certified public accountants (CPAs) who have their own practices or work within accounting firms or other companies and corporations, I am a licensed CPA who works in a law firm. I work with the clients and lawyers of the firm to assist with a range of accounting responsibilities, such as the preparation of tax returns for clients, including trusts.

The part of my job that is probably the most stimulating is the work that I perform with litigation lawyers regarding the examination of financial records on both sides of a suit. These suits can involve financial disputes for business damages, labor wages and breaches of business promise. I look for flaws in the opposition's records to assist in the protection of the client that our firm represents. I also help in the determination and calculation of appropriate damages for wrongdoing or negligence. I study the client's records for useful information to use as a strong defense. I have to consider what information the opposition will point out in an attempt to discredit our client and be able to account for why their interpretation is incorrect or unjust.

I also use my creativity and intuition in my dealings with clients and lawyers on an interpersonal level. Working well with different types of people, especially when it is your job to help them, can require great creativity, understanding, skillful presentation and emotional sensibility.