“Accounting helps in keeping everything under check.”
Accounting a subject which might sound dull to many scholars, doesn’t know that every maximum number of pupils apply for this course when in college. From having a great career prospect of having knowledge that would help you in personal life; accounting has it all.
For example, you require doing taxes and stuff for yourself every year unless you hire an accountant. If you are a professional accountant then you can do all these by yourself without having to depend on anyone.
Apart from personal life, accounting is quite necessary for other aspects of life too such as every business requires having proper accounting information to flourish.
However, students do struggle from time to time when it comes to completing syllabus as well as papers and projects.
Take a look at why this happens!
Issues students face
One of the most essential problems which scholars face is understanding the entire concept.
It is quite difficult for pupils to understand everything easily as accounting means going through numerous calculations where one mistake and nothing will match.
Without having a basic understanding of accounts, it is not possible to go in-depth of this subject which is what most syllabus in colleges comprise. A little misunderstanding often creates massive hindrances for pupils.
Also, time plays a crucial role in a student’s life. Every scholar pursuing this course have to prepare for not just written examinations but also papers, assignments, etc. on different topics.
All these are necessary for receiving extra credit which helps you to get the desired result at the end of each term.
However, these things require a lot of researching and knowledge which takes up a lot of your time. Time is a luxury for students and most struggle to handle it.
Most pupils often observed to be burned out completely by all these stress and the result of which is reflected on their marks.
This further leads to depression and more errors in academic life that leads to an unsatisfying term.
Knowledge is another factor which seems to make people struggle.
For example, you just started a chapter on accounting; prior to this, you have no knowledge about this topic.
When having to work on assignments on such topics, you are bound to make errors without any assistance. Also, you have access to your college professor for a limited time every day.
So, when you will sit to work on your paper without having adequate knowledge, you will either have a lot of mistakes in it or it won’t be up to a mark which would fetch you good grades.
These are the primary and most essential problems you will face when pursuing accountancy.
However, complex accounting topics are also another reason why you might find this course quite difficult.
Have a look at accounting subjects and topics where you have a chance of suffering most!
Cost accounting and management accounting
Cost management and cost accounting are two entirely different topics. Management accounting completely deals with collecting data from financial and cost accounting.
Then, it analyzes as well as interprets it for preparing reports and offers essential information to management of a company.
Now, in cost accounting, cost books are prepared using data that comes from financial accounting after end of an accounting period.
Apart from these, primary goal of cost accounting is assisting businesses in handling cost control as well as make necessary decisions.
However, management accounting’s primary aim is to offer detailed crucial information in process of controlling, planning, performance evaluation, etc.
Moreover, cost accounting uses quantitative cost information which is measured in terms of money. While management accounting uses qualitative and quantitative data and also measures data that can’t be measured in monetary value.
Cost accounting’s base is cost data that is received from financial accounting whereas management accounting’s base is data received from cost as well as financial accounting.
Last, cost accounting helps in making decisions which are associated with future cost depending on historical cost data. Management accounting, on the other hand, offers predictive and historical information to make future decisions.
Students face most difficulties when going through topics like costing methods, material costing as well as control, overhead costing, etc.
Advanced financial accounting
As the name suggests, here you will have to deal with advanced topics of financial accounting. This is what not even students who are interested in accounting likes.
There are certain topics under this which are complex and requires ample practice and knowledge to get it done correctly.
In Consolidated financial accounting, you will learn about financial statements of a business along with its subsidiaries combined.
These provide a parent company as well as its subsidiaries financial position’s aggregate look. Also, it provides an overall picture of an organization’s entire group instead of an individual firm’s position.
Financially distressed business’ accounting is another topic which will create a lot of dilemma for you.
In this section, you will come across accounting for companies that are financially distressed which means a company is unable to its lenders and creditors.
This condition occurs when a firm has high leverage, high break even point, profit level per unit is low, etc.
Due to a massive amount of calculations in order to match the balance sheet and more, students often have been seen struggling with this topic.
Next under advanced financial accounting falls business combination’s accounting. Here, business combination means any transaction that makes acquirer gain control of acquire (other business).
This is a common way to develop or grow an organization through internal activities.
You will have to keep both companies’ data and use them when going through accounting procedures which makes this quite intricate.
Ensure that you don’t miss a class when college professors are teaching you topics in advanced financial accounting.
These are some of the topics mentioned here which might create a problem for you.
However, you need to keep in mind that without a basic understanding of financial accounting and certain other accounting areas, understanding these difficult topics is next to impossible.
This is where you will learn to deal with different forms of auditing. When it comes to revenue and collection cycle’s auditing, there are various steps involved.
In business collection cycles and sales refers to the procedure set which begins when any client/customer buys a product or services. Also, it ends when a business receives the entire payment.
Auditing is done before the financial year ends, where external accountants go through sales transactions to ensure a company isn’t stating incorrect accounts receivable or revenues.
In this, you generally learn how to catch all these discrepancies through auditing. Going through year-long financial numbers can be confusing and quite difficult to complete an assignment.
If you are pursuing to become an auditor you will have to know about expenditure cycle auditing.
Here, one learns how to seek low-level material misstatements’ risk in financial statements because of transactions due to expenditure cycle.
Materiality’s allocation to accounts gets affected by the cycle will lead to varying results due to account’s misstatement’s likelihood and verifying account’s probable cost.
So, if you are looking to become an auditor, these two topics of applied auditing are where you need to focus completely.
Also, when completing assignments on these, be careful and check your work for errors thoroughly. Even a slight mistake might make the answer have a huge difference which will lead to lower grades on assignments.
In this, you will go through process of measuring, identifying, analyzing, interpreting, as well as communicating information and data to management for achieving a company’s goal.
The key difference between this and financial accounting is that this assists managers to make decisions while financial accounting offers information to people outside of an organization.
One of the most confusing topics here is capital budgeting decisions. It is basically an organization’s formal process that aids in evaluating potential investment or expenditure which are of a substantial amount.
It involves decisions for investing current funds to dispose, add, replace or modify fixed assets. The mistake which scholars often make here is calculating assets correctly.
Another quite interesting part of managerial accounting is environmental cost management. It enables a firm to control all costs related to business operation’s environmental impact.
For example, if an organization is impacting the environment through air pollution, waste disposal, manufacturing emissions, etc. that firm is responsible for current as well as future environmental effects.
Also, that company is responsible for labor costs that is associated with it. Effective control aids in increasing a business’ total profitability.
When completing this topic, you should have total knowledge of how to effectively control this so, that you can help the organization you are working for, earn ample profits.
Segment reporting and profitability analysis help in breaking out a firm’s financial information by subsidiaries, company divisions, etc. In an annual report, segment reporting’s purpose is providing correct picture of performance of a company to shareholders.
Upper management uses this data to ascertain income, assets, expense, liabilities and more of each segment for assessing risk and profitability.
This is something which many students find to be difficult and many don’t. It depends a lot on how much the student grasp the nature of this topic.
It is a process through which you will learn how to summarize, record, and lastly report heap of transactions that business operations generate over a specific time period.
When preparing financial statements, these transactions have to be summarized as it would include cash flow, income statement, and balance sheet.
This will provide a record for an organization’s operating performance within a specified duration.
Things to look out for here include non-current liabilities which are also known as long duration liabilities.
This is a financial obligation that is listed in balance sheet which is not required to settle in one year unlike current liabilities that are debts for a short term.
Apart from these, leases and employee benefits’ accounting are two more topics where most students like you get into trouble.
All these different topics which fall under accounting must be dealt with properly. These are the portions which make pupils struggle and eventually they fail to receive the grades they deserve. Hence, working on these should be a priority for all.
Overcoming assignment problems
Even if you have all the information you require, there will be times when you face a dilemma due to some confusion or misunderstanding.
You are not alone in this, numerous students every year faces this. Firstly, accounting is not an easy course to pursue. Research and clear understanding is a must when pursuing this degree.
However, that still gives rise to several problems. In that case, you should be open to the idea of discussing such problems with your professor, private tutor, classmates, etc.
Basically, anyone who has adequate knowledge of this subject. Opting for long discussions along aids in clearing issues as well as come across problems which you didn’t realize was an issue.
So, whenever, you are sitting to complete an assignment on these accounting topics, ensure going through it first and writing down points and questions which arise.
Next, all you need is to examine if your findings will answer questions that a topic asks. Also, go to your professors and discuss with them whether you are on the right track.
Hopefully, this blog helped you understand the troubling areas in accounting. There is no way of avoiding them. All you can do is jot down notes and never miss an explanation from your professors as well as your private tutors.
These are the people who will assist you in fetching grades which would make your academic life a successful one. So, best of luck for your future endeavor of pursuing this course!
Michelle Johnson is a professional teacher as well as a blogger who posts blogs and articles about various subjects that aid pupils to learn topics quite efficiently. For more than 6 years she is helping scholars receive high grades in examinations and assignments. She completed her MBA from Booth School of Business and from then has been helping students reach for the stars.