Why You Should Study Accounting- Accounting is a prestigious profession globally . It is an in-demand profession that allows you work in virtually any company. In the following paragraphs, we would share with you critical details you should know about the accounting profession and why you should study accounting. Read along.
Ten Reasons You Should Study Accounting
#1 Accountants are in high demand
Accountants are in high demand all over the world. There is no field or sector of the economy that doesn’t require the services of an accountant. Even NGOs will still require accountants to help manage their finances. This is one reason you should study accounting. You are sure to get jobs after graduation.
#2 Accounting is a professional course
Another reason you should study accounting is the fact that it is a professional course. After graduation from school, you can decide to set up your own firm to do private practice or you can go get employment in an organization and you can do both. It is a course that gives you multiple options to make good money.
#3 Studying accounting gives room for career flexibility
Accounting is an in-demand career that gives you a lot of flexibility. You can work in different roles e.g risk management, business management, business analyst , entrepreneurship , investment, advisory, etc.
#4 You can work anywhere in the world
Another advantage of studying accounting is that it gives you the opportunity to work in any part of the world. Qualifications like ACCA will give you opportunity to work in over 120 countries.
#5 A degree is not really necessary
Employers wont take you on their team because of your grade in school but rather because of your skills and qualifications. So whether you have a degree in accounting or not, you can still work in the accounting field. Once you have the right skills and qualifications, you can get to work in an accounting role. A good example of such qualification is ACCA.
#6 There is job security
Accounting job is rarely affected by hard economic times or political changes. When a company is going through difficult financial times and laying off employees, the accounting department do not get touched most times. Even changes in governmental policies do not really affect the accounting career.
#7 You will acquire valuable life skills
One benefit you derive when you study accounting in school is that you can acquire valuable skills which can be useful even outside the accounting field. Examples of such skills include attention to details, mathematical skills, organizational skills, planning, budget making, etc. These skills can be useful at home and when you set up your own business.
#8 You can take up some other degrees alongside it
Accounting is one course that allows you take up another degree. So, you could have something like this:
- Major in Accounting and finance
- Major in Accounting and Business Entrepreneurship
- Major in Accounting and Business Management
These double honor increases your employability rate and also enables you work in different capacities
#9 It can open you up for career advancement
When you study accounting, you have opportunities to volunteer in big organizations like UN and WHO. These organizations are always in need of accountants to help with their financial aspect. Working with these organizations will enhance your skills. Such experience can also open you up to better career opportunities.
#10 It is an interesting field
If you are a person that love working with numbers, you will enjoy going to school to study accounting. It is a field that will require some mathematical background such as addition, subtraction, division and multiplication.
What You Should Know About Accounting
Who Is An Accountant
An accountant is a professional who has the responsibility of managing and reporting financial data of an organization.
What Are The Duties Of An Accountant
- Reconciling of the bank’s statement and book-keeping ledger
- Management of accounts for income and expenditure
- Analysis of employee’s expenditures
- Generation of company’s financial reports
- Filing and remitting of taxes and other necessary financial obligation
- Managing the financial aspect of the company’s activities
Types Of Accounting
The accounting department is a very vital/ indispensable aspect of an organization. To study accounting, you must have an understanding of the different types so you can know what area to specialize in your career as an accountant.
1. Financial accounting
This aspect of accounting focus on compiling of information that would eventually be used to generate reports. Financial accountants are all out to strategize how a company can be more profitable. They also track all the financial activities in an organization.
2. Managerial accounting
This type of accounting focus on monitoring and assisting in the financial planning of an organization. Managerial accountants work with managers to analyze and create budget to meet the needs of an organization.
3. Cost accounting
This is an aspect of managerial accounting. It involves documentation, presentation and reviewing of manufacturing costs. Cost accounting implements , oversee and provide feedback on costs incurred by an organization. They oversee variable and fixed costs.
4. Forensic accounting
This aspect of accounting investigate the financial records of an organization. It gathers all available documentation for transactions in financial states. Forensic accounting is majorly applicable in legal cases e.g fraud, disputes, claims, etc.
5. Public accounting
Public accountants provide accounting services to clients based on demand. They work in auditing , tax returns and consultation . They also offer legal advice.
6. Tax accounting
Tax accountants work with businesses to help them stay compliant with internal revenue code when they file their tax documents yearly. They assist companies in adequate planning of tax logistics.
Other types of accounting include: auditing, accounting information systems and governmental accounting.
What Skills Do You Need To Study Accounting And Establish A Career In It
1. Business acumen
Someone aspiring for a career in accounting must have good business acumen. As an accountant, you will be interacting with other units in the organization and participating in daily activities of the business. You must have good negotiation skills, decision making skills and strategic thinking.
2. IT Skills
You must have good IT skills as an accountant. You must be able to use some tools/softwares such as excel, quickbooks, etc.
3. Excellent communication skills
As an accountant, you wont just be working with numbers, balancing financial records. You would also be relating with other personalities in other departments in the organization. So having excellent communication skills (both oral and written) is vital.
4. Critical thinking
To study accounting and establish a career in it, you must have good critical thinking skills. Critical thinking is the ability to apply knowledge to solve problems. As an accountant, there are times you need to gather different data points to solve financial problems and also predict challenges that may arise in a business in the future.
5. Time management
This is another skill important for accountants. As an accountant you will be dealing with lots of figures and you will have lifelines to meet up , so you must know how to manage your time.
6. Analytical skills
As an accountant , you must be able to read and interpret a given set of data. You will need analytical skills to compile reports based on data given.
Other skills include customer service, leadership skills, etc.
There are some specialized skills needed for accounting and they include: auditing, financial accounting, ethics, business intelligence, etc.
If you have a flare for numbers, with strong business acumen and strong attention to details, you may want to study accounting . The accounting profession is an in-demand and lucrative one. As a well-certified accountant, you can work in any part of the world.
Frequently Asked Questions
Why should I choose Accounting?
Accounting is a profession that is highly lucrative and in high demand. It is also a well- respected and prestigious profession
What are the objectives of accounting?
To collect and store financial data of an organization
To generate financial statement
To put together data that can be used for strategic planning and decision making
Implementation of controls that accurately record and process data
What are some of the benefits of accounting
Accounting help company to track income and expenditures
Ensures statutory compliance
Make available financial information that can be used to make business decision
What are some of the roles/ responsibilities of accounting department?
What are some of the roles/ responsibilities of accounting department?
Cash disbursement and accounts payable
Cash receipts and accounts receivable
What is the 1st rule in accounting?
The golden rule of accounting states thus: Debit all expenses & losses and credit all incomes & gains
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