Most of you have encountered this word in daily life. You have heard of accounting professionals, accounting standards, accounting subjects and so on. This word is not to be missed. Also, called accountancy, ‘it is the measurement, processing and communication of financial information related to businesses and industries’. This is one straightforward definition. Financial reporting, accounting and accountancy are all the same.
There are various sub-divisions in accounting. There is financial accounting, management accounting, cost accounting and tax accounting.
Types of Accounting
Includes the making of financial statements and then disseminating the information to stakeholders.
It stresses on the analysing, recording and reporting of the financial information within organizational boundaries. It is for internal use.
Is the investigation of financial statements of client companies? It also requires auditing skills. The entire history of the company needs to be known, to ascertain the financial conditions and other factors, relating to the same.
It is totally under the purview of government rules and regulations. Accountants need to have in-depth knowledge to get into this form of accounting.
Is a relatively new form of accounting? This involves jotting down all events related to financial transactions and investigating on the same. This is applicable to destroyed businesses and to record fraud transactions.
Is related to tax regulations, tax filings, planning and more, from company perspective. Tax Managers are generally hired for the post.
This type of accounting is aimed at controlling various company’s weak areas, fraud, wastage and other factors in a business.
Why do people study accounting?
Famous personalities are present all over the world, who studied accounting as a subject. Some studied accounting or were professional accountants. The study of the subject, gives you a broad perspective about life and additions and subtractions, for that matter. Accounting as a subject, is broadly recognized in most fields today. It has a huge influence, in business and allied fields. By studying accounting, you do not necessarily become a desk-bound person or a traditional accountant, for that matter. Studying accounting opens up a whole new world for students and professionals. You get to record transactions, ledgers, profit and loss statements apart from other interconnected areas.
The careers, you can step into include Finance management, business analysis, business management, investment advisory and risk management. The estimation worldwide, for accounting jobs is approximately 1, 88,100 as of 2015.
Employment Potential of Accounting
A whole range of career options, open up in front of you if you study accounting. You can take on the role of a chartered accountant, chartered management accountant, Company secretary, and forensic accountant apart from other interconnected careers like Actuarial sciences, Management consultant, Mortgage advisor, retail banker and many more. The opportunities for accounting students are endless.
Top 10 Reasons to Study Accounting
Accounting is the most wanted subject, chosen by numerous students who want high-flying careers. No organisations can handle financial decisions, without accountants. Accountants are responsible for all kinds of financial decision making in any company, whatsoever.
Is Accounting Hard to catch up with?
Some sections of society have this question in mind. Some students think, accounting is really difficult to catch up with. There is a certain scare attached to the subject – accounting. Those who study arts or science, will not find it interesting. They might say, it is a difficult subject. Well, if you don’t love anything, how will that thing love you back? If you do not find something interesting, then how can you find it easy? It will appear difficult for you. It is the same, with all subjects.
So, Accounting as a subject is hard for some and easy for some. It totally depends on individual characteristic. Actually, it is a very memorization-oriented subject. It requires lots of remembering, definitions and mechanics. It is related to mechanical subjects.
Accounting involves, concepts like credits, debits, double entry, single entry, assets, liabilities, equity and T-accounts. You have to understand the basic first. It is the same in any subject. You have to get your fundamentals strong, then only you can move up the ladder to far-more important things.
Secondly, practice is as important. If you study one topic in class and forget all about it, you cannot get into accounting. You have to practice a lot of problems and find out their solutions. Some people fear, it is only related to mathematics. That is not the case, I would like to tell you. It consists of basic arithmetic, rest of it is concept related.
For somebody, like me, who has also done CPA, I always found the subject interesting enough. It is like solving crossword puzzles and it is one of the best ways to become an accountant.
Nowadays, some people have this query, ‘Do I have to be good in math?” No, just get your basics right. That will be all. Accounting is an exact science. It uses the numbers and set formulaes to get answers to specific questions.
Similarities and Dissimilarities of Math and Accounting De-coded
Both the subjects, rely on numbers and there are problems that need to be solved. However, the approach to both subjects is different. There is a purpose behind everything that you do in accounting. Why we do math, is a huge question mark. However, there is an answer to accountancy. Why are we studying accountancy, there is a definite answer?
Accounting Terminologies worth Mentioning for the Layman
Real Life and Accounting
So, by studying accounting, as a subject is good for your life and professional career in every manner possible. It is the best that you can do for a full-fledged long time career in the times of today’s global 21st century state.
Michelle Johnson is a highly experienced academic professional, with 6 years of experience in the corporate and academic sector, together. She has graduated from Stanford University, with MBA and Accounting as major subjects. She has a different take on the subject and teaches it through her own methodologies, which are well conceived by students.