Study on the Education Mode of Accounting Professional in the TCM Industry Cui-Ling GUAN 1,a, Hui WEN 2,b* and He-Rong MAO 3,c

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1 2017 3rd Annual International Conference on Modern Education and Social Science (MESS 2017) ISBN: Study on the Education Mode of Accounting Professional in the TCM Industry Cui-Ling GUAN 1,a, Hui WEN 2,b* and He-Rong MAO 3,c 1 Center for TCM Development and Research, Hubei University of TCM, No. 1, West Huang Jiahu Road, Hongshan District, Wuhan City, Hubei Province, , PRC. 2* Department of Finance, Academy of Military Economics, No.122, Luo Jiadun, Qiaokou District, Wuhan City, Hubei Province, , PRC. 3 Center for Compilation and Translation of TCM Literature, School of Foreign Languages, Hubei University of TCM, No. 1, West Huang Jiahu Road, Hongshan District, Wuhan City, Hubei Province, , PRC. a guancuilinghbtcm@126.com, b* wenhuitcm@163.com, c trans_morning123@126.com * Hui WEN, Department of Finance, Academy of Military Economics, No.122, Luo Jiadun, Qiaokou District, Wuhan City, Hubei Province, , PRC. Telephone: , wenhuitcm@163.com Key words: TCM Industry; Accounting Professionals; Education Mode Abstract: This paper tries to reexamine the existing educating mode of accounting professionals under the background of rapid development of the TCM industry both in China and abroad. By analyzing the historical development of the education mode of accounting professionals and generalizing the present situation of talents cultivation in TCM universities based on the surveys of the provided, problems faced the education mode of accounting professionals can be easily disclosed. The results suggest that measures like adjusting the education goals, reforming the curricular arrangement and innovating education concepts should be taken immediately. Introduction The development of Traditional Chinese Medicine (TCM) is now at the best stage in history as Chinese government is paying more and more attention to TCM and Chinese medical culture. In cannot be denied that the sound development of TCM depends partly on the industrial accounting system, because one of the disadvantages faced with TCM industry is shortage of fund. So education of professional accountants in the industry is of great importance. Early in 1990, the State Administration of Traditional Chinese Medicine (SATCM) issued Enforcement Regulations on of Accounting Certificates, for the first time how accounting professionals in TCM industry should fulfill their duties is mentioned. However, situations have been greatly changed as TCM industry develops and importance attached to it. In 2011, the new Financial System of Hospitals took effect. Still, the development of accounting system in TCM industry cannot be compared with that of other industries, like the real estate s industry, the automobile industry and financial industry, and it far lags behind the status quo of the rapidly developing TCM industry. In this sense, it s definitely important to carry out some reforms on the cultivating modes of accounting talents in this industry to regulate TCM-related market at home and promote the expansion and development of TCM service industry and TCM-related organizations abroad. 213

2 Then what s the industry accounting? The industry accounting refers to the segmented accountings in different industries in the national economic activities, such as the accounting of industrial enterprises, the commercial accounting, the accounting of the insurance industry. 1 Accounting of the TCM industry then refers to the accounting activities and norms based upon TCM-related enterprises, hospitals and other organizations. Connotation of the Education Mode of Accounting Professionals in the TCM Industry As for the education mode of professional talents, the Ministry of Education gave a definition early in 1998 it means that the knowledge, faculty and quality structure that schools construct for students as well as the ways of realizing this structure. It gives a fundamental specification on the characteristics of the talents and embodies the education thoughts and concepts. 2 The famous Chinese educator Gong Yizu believes that the education mode of professional talents refers to some standardized style and mode of operation of the education process in realizing the education goals, which should be under the guide of education thoughts and theories. 3 Therefore, the education mode of professional accountants in the TCM industry should be based on the development of the TCM industry, and under the guide of TCM higher education and accounting education. Only in this way, will the graduates and employees be competent for their jobs in the future. The Background of Education of Accounting Professionals in the TCM Industry To Deal With the Growing Size of Capital and Assets in the TCM Industry From 2007 to 2015, more than 33billion RMB had been invested on the TCM industry to promote the prosperity of TCM culture and meet the greater needs of people on medical care. It s estimated that more than half of the public TCM hospitals had received fund during this period. 4 Another fact is that during the 12th Five-year Plan, the pharmaceutical industry of TCM was developing so fast that its gross output had been improved at the rate of 20 percent every year. In 2014, the gross output has amounted to billion, almost totaling 1/3 of the gross output of the pharmaceutical industry in China, among which export and import output reached to a new peak of $4.63billioin. 5 Settlement of such a large amount of money means tough challenges for accounting professionals in the TCM industry. To Meet the Needs of Rapid Development of TCM Overseas According to the White Paper Traditional Chinese Medicine in China, TCM has been spread to 183 countries and regions around the world. According to the World Health Organization, 103 member states have given approval to the practice of acupuncture and moxibustion, 29 have enacted special statutes on traditional medicine, and 18 have included acupuncture and moxibustion treatment in their medical insurance provisions. Currently, the Chinese government has signed 86 TCM cooperation agreements with other countries and international organizations, and has supported the building of 10 TCM centers overseas. 6 The rapid international development of TCM, especially international trade of TCM service requires that a larger number of accounting professionals be cultivated. What s more important, in the following years, with more and more integrated overseas TCM centers established in other countries, personnel from the construction parties and established centers should get themselves familiar with the tax laws in the targeted countries, modern accounting system and International Accounting Standards, etc.. The overseas development of TCM also include international medical aids, which requires as the deputy director of China s Ministry of Health strengthening the training of financial management on the members of the medical aid teams

3 The Present Situation of Education of Accounting Professionals in the TCM Industry Lack of Competent Accounting Talents in the TCM Industry At present, the personnel who are working in the TCM-related industries, like TCM clinics and hospitals, pharmaceutical enterprises, TCM schools and institutes etc. are all general accounting professionals, that is, they are in serious lack of TCM knowledge. In fact, TCM is quite different from western medicine. So the budget and accounting of the costs should be different too. For example, heavily dependent on statistics, the medical equipment are fully applied, so in hospitals of western medicine, accounting of the fixed assets should be the focus. While in TCM hospitals, because the practitioners medical experience is traditionally more important than equipment s, accounting should be concentrated on human cost. Additionally, as scholars claim, the revenue cost of Chinese pharmaceutical formulas and Chinese herbal medicine in a TCM hospital is also quite different because they are used in large amounts. In this sense, TCM hospitals should have separate accounting plans. 8 On the other hand, as the R&D often lasts for a long time, the cost of R&D should be included in the long run to reduce the cost pressure for TCM hospitals or enterprises. 9 If the accountants and other financial staffs in TCM hospitals are ignorant of the difference, appropriate financial budget cannot be made. Inflexible Cultivating System of Accounting Professionals Although the National Training Program for Leading Talents of Professional Accountants in TCM Industry has so far held twice, the professional skills of them have been greatly improved, the size and covering of the programs are still limited, which cannot meet the rapid increase of qualified accounting talents in the industry. Most seriously, TCM industry is deficient in a flexible and effective system of cultivating the industry talents. First, there are no TCM colleges in China that have provided majors concerned for students to choose. So the recruited talents of TCM schools or companies are liable to have no sound consciousness of TCM, while some of the accounting personnel don t have the professional knowledge of accounting. Second, while offering some basic related like Foundations of Accounting, Science of Financial, professional and advanced are not adequately offered to the students. So far, only Beijing University of TCM has offered professional course Accounting and Finance of Hospitals. Some others like Hubei University of TCM tried but failed to apply for new majors like Accounting. For details, see the following chart: Chart of Accounting-related Courses at Universities of TCM. No. Universities of TCM Schools responsible for related Names of the related Pilot Pilot level 1 BUTCM School of Accounting and Finance of Hospitals 2 SHTCM School of Public Health Financial School-level 3 NJTCM School of Economics, Trade and 4 GZTCM School of Economics, and 5 ZJTCM School of Humanities and Social Sciences Accounting/Financial Accounting/Financial Principles of Accounting School-level 215

4 6 AHTCM School of Medical Economics and 7 CCTCM School of Humanities and Principles of Accounting/Public Finance 8 CDTCM School of 9 GSTCM School of Economics, Trade and 10 GXTCM School of Humanities and Social Sciences 11 GYTCM School of Medical Humanities Principles of Accounting Principles of Accounting 12 HNTCM School of Humanities Foundations of Accounting 13 HLJTCM School of Humanities and 14 HNTCM School of and Information Engineering 15 LNTCM School of Economic Principles of Accounting/ Financial Public Finance 16 SXTCM(Tai Yuan) 17 SXTCM(Xi An) School of Medical School of Humanities and Foundations of Accounting/Public Finance 18 TJTCM School of No. Universities of TCM Schools responsible for related Names of the related Pilot Pilot level 19 YNTCM School of Humanities and Principles of Accounting/ Financial 20 HBTCM School of Principles of Accounting/ Financial It can be obviously seen that although most of universities of TCM have offered accounting-related, but few offered professional accountings, and most of the related are just at their preliminary stage of construction. The education system for accounting professionals in TCM schools is in an urgent need of reform and upgrading. Suggestions on Constructing the Education Mode of Accounting Professionals in the TCM Industry Mapping out the Education Goals in Conformity with the TCM Industry The education goals are the basis of cultivating talents. The education of professional accountants in the TCM industry requires that the professionals-to-be should have a good mastery of his 216

5 professional knowledge, like accounting, finance, management, statistics and computerized accounting and be familiar with the present situation of development of the TCM industry and its development in the history. As mentioned before, the TCM industry is undergoing great opportunities of development nowadays, a large group of applied professional talents are demanded in the industry. Reforming the Curricular System The curricular arrangements are the carrier of education. As a qualified accountant in the TCM industry, he should not only lay solid foundation on accounting-related, familiarize himself with the development situation of TCM in history, but also have a systematic learning of other the industry requires, such as Fundamentals of TCM, Diagnostics of TCM, Chinese Herbology, Studies of Chinese Formulas and Social Insurance. Only in this way, the professionals may take into account the balance of costs and benefits in the TCM hospitals and enterprises, etc. Professionals who will work for the TCM international service trade should also have a deep trust in TCM as the reproaches about TCM and TCM culture he will unavoidably meet with in his social life and work. When conditions are mature, we believe the top universities of TCM, like Beijing University of TCM, Nanjing University of TCM can apply for majors like Accounting of TCM Industry. Innovating the Education Concepts Education concepts play an important role in imparting knowledge to students and shaping them as professional talents in the future. By virtue of the present situation of the development of TCM, a task-based education mode is quite necessary. In the education practice, as scholars hold, task-based education should pay attention to the degree of difficulty of the and principle of To learn, to use, that is, applying what the students have learned to the practice in their lives. 10 In the talents cultivating practice, the cooperation between schools of TCM, TCM institutes and TCM-related organization is a must if we want the talents to have the competence for their future jobs. Conclusion Modern medicine is now facing lots of tough problems in dealing with chronic and infectious diseases and conquering the high medical costs. TCM, in contrast, shows its unique strength in settling these problems and attracts wider concern of different parties in the society. The TCM industry is speeding up its pace of development. The grand national strategies like Healthy China and Belt and Road Initiative will surely further promote the acceptance and popularity of TCM both at home and abroad. As a result, understanding of the present situation and promoting the reform on the education mode of the professional accounting talents in the blooming TCM industry is of great importance. Acknowledgements This research is financially supported by academic programs of Hubei Provincial Department of Education (2014B101) and Center for TCM Development and Research, Hubei University of TCM ((ZX2015Y01). 217

6 References [1] Ma Haoguang, Comparison of Professional Accounting, 2nd ed., Publishing House of Electronics Industry, Beijing, 2012, pp1-5. [2] Information on [3] Gong Yizu, A brief study on the education mode of universities, Journal of Higher Education Studies, 6(2010)9. [4] Information on [5] Information on [6] Information on [7] Information on [8] Li Fang, Reflection on cost accounting in the TCM hospitals, Journal of Chinese Health Service, 3(2006)149. [9] Ji Zhe, Shen Junlong, Analysis of TCM service price in TCM hospitals and suggestions on policies, Journal of Shizhen Guoyi Guoyao, 23(2012)2894. [10] Wu Duanming, Application of task-based education methods to the teaching of Principles Accounting, Journal of China Informationization, 13(2010)

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