Finance is not only a complex subject. It is also highly interesting to those who understand it properly. It is to be rememberedthat finance is not only one subjectin your course.Other subjects are backing it up. In fact, finance is a part of a bigger category of studies known as ‘accounting’. So if somebody wishes to learn finance as the only subject without any accounting background, it would be unrealistic.
The topic of accounting deals with handling data and information which includemonetary information as well. Finance is one of the parts of it. The main subcategories of accounting are:
- FinancialAccounting
- Taxations
- Law and Ethics
- Management Accounting
- Economics
If a student wishes to learn finance properly, then he must have basic knowledge about the other accounting subjects.
Accounting subjects
Accounting or often formally termed as accountancy refers to measurement, analysis, processing and linking of financial information about different economical entities. Usually, this subject is termed as the language of business management.
- Financial accounting
This part of accountancy concentrates mainly on preparing reports about the corporates financial matters such as financial statements, external matter viz. investors, regulators and suppliers.
- Management accounting
This part is dealing with measurement analysis and reporting of information for internal management. Bookkeeping and double entry bookkeeping are common jobs of this subject.
- Taxation
Learning systems of taxation is mandatory if you wish to pursue a financial or accounting career.Every financial institute or commercial firms in every country are under laws of taxation. There are several types of taxes imposed on such organizations, and it is their duty to pay the proper amount of tax in due time, or else it is a punishable offense.
- Laws and ethics
Business ethics are important concepts to be learned. No business can stand if its members and the other organizations around do not follow any ethic. Hence, such ethics has been conventionally established by business initiators long ago and are mostly followed till date.
Our society is not only constrained by laws of taxes, but also by other civil and financial laws. Any business organization must abide by these rules. Breaking national lawscan lead to substantial penalty or severe punishments.So you must learn the law and order of the country with which you are associated or wish to get associated.
- Business management
As you know, accountancy is the base to business, hence learning business management is the final step to become an ideal expert accountant. Business as you must know, it is not an easy job.It requires investing agood amount of money as capital or extreme planning and scheming or both.
It also often initially involves a good amount of physical labor and hard work. If a business is to be successful, then its planners must have knowledge of business management along with other accountancy subjects. So if one wishes to join thebusiness, then he must learn this subject well.
Other important subjects
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It is not so that if one wishes to learn accountancy or finance, these are the only subjects that one should be concerned with. If they want to understand these subjects successfully and enjoy them, then there are other subjects too which you should be concerned about.
Mathematics
No doubt that there are tons of arithmetic and algebraic calculations involved in subjects like accountancy and finance. So if you are weak inmathematics, then you cannot shine well in these subjects.
An accountant must have strong computational skills whichthey can reluctantly apply in their subjects. So if you wish to do well in accountancy, you must focus on mathematics. Do not neglect it!
Statistics
Statistics is very much in use in subjects like accountancy, especially in the taxation and management accountancies. It is very crucial that an accountant has enough knowledge of statistics as it is required to study trends and make predictions about future. Right predictions can lead to theeffectiveapplication of accountancy in different cases.
Economics
The subject that deals with the study of financial and industrial growth and changesin a particular area is Economics. As evident, such study is essential in carrying out business in a certain place.If a business man knows nothing about the economics of the country and starts their business, then they will not be able to succeed much.
It must be clear by now that finance is not a singular subject.Rather itis standing with other subjectsof accountancy. If the finance students have an eco-stat-math background,then their learning would be easier and effective. They should also manage to studyother accounting subjects along withfinance. This is how university students can overcome with the problem of finance assignment. Now you get to know the tricks about shining better in finance and accountancy and you too can become a good student in this subject to make a career.