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| morpethschool.org.uk |
Accounting is defined as the process of identifying, measuring and
communicating economic information to permit informed judgment and decision by
users of the information. Its purpose is to provide quantitative, financial
information about economic entities to statement users so that they could make
informed judgment and better decision. On the other hand, Psychology is said to
be the scientific study of human behaviors and mental processes. How are they
related?
Perhaps it is obvious that
Accounting involves intensive mental processes. Hence, it has problem-solving
portion that entails analytical and critical thinking. It has complex processes
and principles that need to be
understood, stored in the memory and be conformed with. Generally, psychology
can study how we do these mental processes, what things influences them, how
our memory and intellect behaves , among others. This way of dealing with the
mental processes is under the Cognitive Psychology, a specific sub-field of Psychology. What is Cognitive
Psychology?
“Cognitive psychology is the
scientific investigation of human cognition that is, all our mental abilities –
perceiving, learning, remembering, thinking, reasoning, and
understanding. Fundamentally, cognitive
psychology studies how people acquire and apply knowledge or information.”1
From the explanation on what Cognitive Psychology is comes their second
link of connection. How we apply accounting knowledge and information is under
the scope of psychology. How can we use the objective data coming from the accounting process properly and
accordingly can be improved and enhanced by Cognitive Psychology.
“Understanding the way a client
approaches decision making related to corporate earnings and expenditures is at
the heart of the practice of cognitive psychology. So the more training in
cognitive psychology an accountant receives, the better able she is to do her job
and manage her client as well ”2
Indeed, psychology is connected and
important to accounting . But it is worthy to note that accounting process is
for the users to make informed judgment and correct decisions with regard to
their firms. They have a counselor- client relationship . The accountant does
not only disclose numerical information per se but also the interpretation as
to how they affect the business establishment. Subsequently, they leave update
as to the the financial standing of the firm and give hints as to how to adjust
to losses and improve the earnings. Somehow, a background of Counseling
Psychology is relevant to this job especially when a losing business is owned
and managed by the same person.
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