Why you Should Study Accounting – Accounting has a reputation for being one of the more difficult business majors, but that doesn’t mean it’s not worthwhile! Accounting provides you with an invaluable toolkit that you can use to help companies keep track of expenses and revenues, understand their current financial situation, and make predictions about future profits. This can be beneficial not only in the business world but also in your everyday life as well.
One of the most lucrative and in-demand careers available today, accounting, has an enormous number of opportunities open to you if you know how to study accounting well enough to pursue these opportunities. Accountants are getting paid $77,250 per year according to the Bureau of Labor Statistics. In this article, we’ll take a look at five reasons why you should study accounting!
What Is Accounting?
Accounting is the process of recording, classifying, and summarising financial transactions to provide information that is useful in making business decisions. The purpose of accounting is to provide financial information that can be used by managers, investors, and other decision-makers to make informed financial decisions.
Who is an Accountant?
An accountant is a professional who helps businesses and individuals manage their finances. They are responsible for recording, classifying, and summarising financial transactions to prepare financial statements, give advice, or audit and assess financial statements to ensure they are accurate.
Accountants work in a variety of industries, including public accounting firms, corporate accounting departments, and non-profit organisations. They may also work for the government or as independent consultants. Accountants typically have a four-year degree in accounting or a related field.
Different Types of Accounting
There are four different types of accounting careers that you can study, each with its own benefits and functions. They are:
- Corporate Accounting
- Public Accounting
- Government Accounting
- Forensic Accounting
1. Corporate Accounting
Corporate accounting is the process of recording and reporting a company’s financial information to internal and external stakeholders. This includes the preparation of final accounts, cash flow statements, analysis, and interpretation of companies’ financial status.
This financial information can be used to make decisions about how to grow and improve the company. Corporate accounting is a special branch of accounting and is taught at school with wide methodologies.
2. Public Accounting
Public accounting is the field of accounting that deals with financial statements that are distributed to the public, such as annual reports, tax returns and many more. The role of public accountants is to ensure that these financial statements are accurate and comply with any applicable laws or regulations.
3. Government Accounting
Government accounting is the process of recording, classifying, and summarising financial transactions to provide information that is useful in making decisions about the allocation of resources. It is done at all levels of government, from local to federal. Government accountants are vetted and carefully selected as they may need to keep confidential information sometimes.
4. Forensic Accounting
Forensic accounting is the application of accounting principles and techniques to investigate fraud or white-collar crime. Forensic accountants use their investigative, analytical, and communication skills to detect and prevent fraud. Forensic accountants can determine whether there was financial reporting misconduct.
Reasons Why You Should Study Accounting
1. Accountants are the backbones of businesses
Every business needs someone to manage its finances, and that’s where accountants come in. They keep track of a company’s income and expenses and make sure its books are balanced.
Accountants also prepare tax returns and advise businesses on financial matters. But they don’t just work with numbers – they also use their analytical skills to solve problems and help businesses make money.
They keep track of all the money coming in and going out, make sure taxes are paid on time, and provide critical financial information to business owners and managers. In other words, they help businesses run smoothly and efficiently!
2. Accountants are always in demand
There are always businesses and organisations that need accounting help, which is why the demand for accountants is always high. And, not only is the demand high, but the pay is also high. So, if you’re looking for a stable and well-paying career, accounting is a great option.
And no matter how technologically advanced we are as humans, accounting jobs can’t be usurped by an automated machine. There is one reason for this, finance tasks still need the analytical knowledge and expertise of a human.
3. You will learn applicable skills
Being an accountant will help you make better decisions with your own finances and you will have a better understanding of how businesses work, which can be helpful if you ever start your own business or invest in stocks.
A good understanding of accounting can help you make better financial decisions in your personal life. If you ever start your own business, accounting knowledge will be invaluable and will help you analyse and interpret financial data, which is useful in many different professions.
Accounting can be interesting and challenging, and studying it can help improve your critical thinking and problem-solving skills. Earning a degree in accounting can lead to a stable and well-paying career.
4. Accounting allows for career flexibility
Accounting is one of the most versatile and in-demand business skills. Companies in every industry need accountants to manage their finances, and there are plenty of opportunities for advancement. An accounting degree can lead to a wide range of interesting and well-paying jobs such as business analyst, business management, risk management, entrepreneurship, investment advisory and many more.
An accounting degree can give you a leg up in the job market. In today’s competitive job market, a PhD degree can make a big difference.
5. Improved decision-making abilities
Accounting is the language of business and helps you make decisions about where to allocate your resources. A strong understanding of accounting will help you make informed decisions and improve your decision-making abilities. Education in accounting can give students a good foundation for financial analysis and investment banking positions.
By studying accounting, you will learn how to identify the key information in financial statements and use it to make sound business decisions.
A career in accounting is a great choice for many reasons. It is a well-paying profession with plenty of room for growth and accounting is essential to any business or organisation, meaning there will always be a demand for qualified accountants.
By studying accounting, you will have a strong foundation in business and finance that can be applied in many different industries. The best part of it? Accounting is a relatively easy profession to enter, as long as you have the proper education and training.
- Investopedia.com – What Is Accounting?
- Accountingtools.com – Who is an Accountant?
- Onlinemasters.ohio.edu/blog – Different Types of Accounting
- Afterschool.my – Why You Should Study Accounting