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What Is the Connection Between Mathematics and Accounting?

by Sep 27, 2016Accounting

Many students want to pursue accounting these days.  Many of them want to do so because they don’t want to get bored with history and literature. At the same time, a lot of them are pursuing accounting because they don’t want to get haunted by Mathematics.   If you are one among the following type, then you are mistaken. Mathematics and accounting have a very close relationship.
Accounting is a sector that provides many opportunities and guarantees a stable career. This is the reason why a lot of student wants to join accounting courses. Where there is favorable economic condition or economy is going through some downfall accountants are always in demand. At the same time, many students drop their idea of joining this stream because they are not confident about their skills in math.
The reason is that they believe that extreme maths skills are required for accounting. Although this is true up to a certain point, Mathematic skills are necessary for accounting as you need to add all the incomes and subtract all the expenses to get the final profit. In simple terms what you have earned in your business can only be determined by adding and subtracting.
How accounting and maths are connected
Accounting is a comprehensive discipline of measuring, identifying and communicating a business’s economic health. This subject can be best understood when you have strong conceptual consideration of the other interconnected subjects. One of the subjects that accounting is highly related is mathematics.
There is a close connection between mathematics and accounting. To express the core concept of accounting is expressed as an equation which is also known as accounting equation. Accounting calculation like the determination of loan installment, computation of depreciation, determination of cash price in case of hire purchase as well as installment system required mathematical techniques.
Now a day, accountants use computers, statistical modules and operational research techniques for ascertaining the financial condition of the business. All these computations are based on mathematics and need knowledge of mathematics. Let’s find out more about the connection between math and accounting.
Accounting is the matter of numbers
Everyone knows the fact that accounting is all about numbers. Sometimes you need a lot of mathematic techniques for taking accounting. This is unfortunate that people who are willing to take up accounting but drop the idea after hearing about maths. This reminds all traumas that they have faced because of maths in their entire academic life. The most unfortunate thing is they get discouraged even before beginning their accounting classes. They don’t even want to learn about what account is and why it is so crucial to the business.
If you want to learn account, then the good news is that not much maths is required to study accounting. A small amount of basic algebra and a working knowledge of arithmetic will allow you to finish a preliminary accounting course successfully.
The reason is that all accounting information consists of numerical data. The mathematical tools are required to record these data. Simple addition and subtraction are all you need. If someone says that you need more accurate knowledge than this is because in accounting you need to analyze the transactions before recording them.
This initial analysis helps in determining the correct amount to record. This needs the basic maths skills. The very advanced professional level is where you require more maths than this. There is no reason to worry about maths for completing you accounting assignment, as a many online professional help are available now a day to provide their assistance whenever you find yourself stuck at a point.
How much a mathematic degree important for accounting?
The degree in accounting is considered as an excellent way to make sure that you are on the right path that will lead you to a stabilized career that will provide you with a lot of opportunities for getting promoted and advancing in your professional life. Accountants are always in demand whatever may be the economic condition.
One of the major mistakes that many prospective accounting students make is to believe that they need excellent maths skills for pursuing accounting. While the fact is accounting is not about maths skills, it is just the matter of numbers. You don’t have to be a math whiz to become a great accountant.
To be an accountant a certain amount of math is needed, simply saying only basics is required. If you are well aware of the principles of addition, substations, division and multiplication, this means that you already have sufficient knowledge for pursuing accounting and to be an accountant. You are not required to know differentials, integrals or any other difficult mathematic equations and properties.
What does it need for an advance program?
You must be thinking about what is the role maths will play if you want to go for accounting major. In that case, you will have to attend business statistic class. To complete it successfully you have to make sure that you have a good command over the basic algebra. Some institution may require more advanced topic but the basic knowledge of different mathematic principles can be enough for you to complete your advance program.
For pursuing your dream to become a successful accountant, you don’t have to bother much about maths. The thing you need to know is why and how finance is crucial for accounting? This is the fundamental of accounting and the main aspect of any business. So, don’t let the math monster ruin your dream and the golden opportunities of stable professional and personal life.