Well-considered to be the universal business language, accounting is one of those core fields every business student should be an expert in. Business professionals carry their accounting knowledge not only to impress their employers or clients but also to better manage their personal finances.
Moreover, the salaries offered to trained accounting professionals are high and promising in the coming years, and it makes this career more fruitful. All this is because accounting tasks are vital to the growth of any company, and most organizations do not hesitate to pay the professionals handsomely. Even the skillful entry-level candidate can earn a lucrative salary in this sector. However, this profitable industry is more beneficial for trained professionals.
Therefore, if you are an aspiring candidate seeking corporate jobs in any of the global companies, mastering accounting is the first step you need to take. It can help you make an exciting career right from the beginning if you are on the right track.
Before going any further with this article on why learning accounting is crucial to get an entry ticket to the corporate world, first, let’s take a tiny tour through the very knowledge field.
What Is Accounting?
Accounting is a systematic process that includes recording, summarizing, analyzing, verifying, and finally communicating the financial transactions of an individual or a business organization. Simply, it is a system that gathers, keeps, and reports the financial information regarding a business. And, accountants are those professionals that maintain the smooth functioning of this system.
Accounting has an essential role in running any business as it deals with tracking income and expenditures, ensuring law and statutory compliance, and providing stakeholders and the government with detailed financial information and statements. Accounting professionals are, therefore, supposed to be the guardians of the financial records of every business enterprise. At the same time, they should also be capable of providing a clear picture of the financial health of the business at any specific point of time, when required.
The financial records that the accounting professionals make reflect the trajectory of the business operations and the overall financial position of the company. These records not only help organizations plan their future activities but also compare the current business progress with the previous data and calculate how well the business is moving. Further, accountants come up with business trends and projections as blueprints for future business activities so that the organization can act according to the predictions and gain profit.
Why Learn Accounting?
Why is it important to learn accounting for a business professional?
Without having skillful accounting resources, no business can go forward and thrive in the long run. For making strategic business decisions, financial reports made by accountants are indeed crucial. And when it comes to the corporate world, the requirements are bigger as they involve more voluminous transactions, multiple locations and hence different laws, huge tax payments and several tax reductions, business partnerships, etc.
To elucidate this fact, you may have to know more about what accounting professionals actually do. Let’s look into it further.
What Do Accounting Professionals Do?
For any business, keeping their financial information clean and up to date is critical, and it is there the accounting professionals pitch in. Every accountant has to perform certain accounting and audit tasks on a day-to-day basis in their organizations. Below are some of the common ones.
The accounting professionals have to:
- Keep track of all transactions of the company
- Collect, compile and maintain financial information
- Prepare financial statements
- Measure performance and assess investment scenarios
- Make sure that the records comply with the law of the country/countries
- Prepare tax returns and ensure that tax payments are cleared on time
Not just for MNCs, all these tasks are essential for the proper functioning and growth of any business enterprise, small or big. It never ends with just preparing some financial records but involves the legal side of things and requires you to have a thorough knowledge of the system to help your company flawlessly. Accuracy in data and dealings is crucial here as even a minor error could sink the boat. Also, you need to have a knack for keeping track of the changing legal requirements of the industry so that you never stop adding value to your company’s financial growth.
What accountants contribute?
In the corporate business world, accountants do contribute to the effective governance of each company, small or big. From top to bottom, accountants can assume different profiles to match the company’s requirements, and once they are in the right place, they can accurately evaluate the company’s performance and contribute insights to improve business performance to further heights.
Mervyn King, the Honorary Professor at the University of Pretoria and Visiting Professor at Rhodes University, envisions accountants to be the actual changemakers by switching their profile from Chief Financial Officer (CFO) to Chief Value Officer (CVO). According to the professor, the duty of a CVO is to add value to the company by integrating its environmental, social, and governance factors with its financial potential. This way, accountants can help companies run on a sustainable business model. Many senior-level employees with accounting backgrounds are already qualified and ready to take up such a responsibility, he says.
Whereas, accountants in their traditional advisory role are expected to help companies gather required financing, make the right investment decisions, develop and maintain the business information system, and be ready to adapt to the ever-changing laws and regulations.
The International Code of Ethics for Professional Accountants (IESBA Code of Ethics) demands that, while they work in the external auditing capacity, accountants should analyze and verify the financial information documented by businesses with an honest and objective perspective. Their reports can further help investors and other external stakeholders to have confidence in the businesses they have invested into. While the accounting professionals measure and communicate financial information, they ultimately bring credibility to these businesses.
And this is exactly why accounting is an extra crucial business skill that you should master if you dream of a corporate career. There are still more advantages to studying an accounting course.
More Benefits of Studying Basic Accounting
By studying accounting, you can achieve more benefits than the ones mentioned above. Let’s check out some of them.
- You will find it easy to manage your personal finances. By learning accounts, you will be able to better manage your money and save more in the long run.
- Learning accounts can also help you make faster career advancements as accounting is always a hot bun in the market, never losing its demand. As per the report from the Bureau of Labor Statistics, career opportunities available in the business and financial industry are to grow around 8 percent by 2030, adding more than 750 million jobs across the world with a median annual salary of $77,250. So, this is indeed the right time to get into the profession.
- If you own a business, it is critical that you know the basic principles and methodology of the field. Thus, studying accountancy can help you analyze the financial health of your enterprise and plan the upcoming activities accordingly, which will, in turn, bring more profits in the future.
- If you are an expert in accounting, then it is easier to decipher the current events occurring in the business world. It will help you know how and why such events matter to you and to the whole world.
- By doing an accounting course, you will be analyzing more and more financial data, and by this, your decision-making power will mature. Thus, doing such a course will make your future business journey easier, both in your workplace and personal life.
- Above all, by being an accounting professional, you will be welcomed in all organizations, regardless of their line of business. You can effortlessly get a job in any industry since all industries, one way or the other, require financial accounting services, at all times.
How To Master Accounting?
The most convenient and effective way to master accounting is to get yourself enrolled in an accounting course and earn academic credentials. There, they will prepare you well for this befitting business career by equipping you with in-depth business awareness and training you in all related skill sets. Getting enrolled in such a course will ensure that you get the right skills, knowledge, and experience needed to be an expert professional in the field. Also, recruiting managers usually prefer trained candidates over the untrained ones as the former can quickly adapt to the working environment with more ease.
Now, if you are totally new to accounting and related fields, it is always better to start with a bachelor’s degree in accounting. But, if you are already a professional with a graduate degree and are looking for a managerial position in the field, you definitely need to get a master’s degree in accounting.
Moreover, when you start studying accounting, you may not just aim to achieve an accounting career. Instead, it opens up the door to numerous career opportunities. Makes you acquire skills that match a vast variety of industries other than just the financial sector. The accounting degree under your belt can lay the foundation for you to become a CEO, CFO, data analyst, tax advisor, purchasing manager, or any of the other top-paying job profiles.
Importance of Accounting Course
Accounting and finance courses usually have a practical approach, along with their theory lessons. During the course, various assignments and projects will be included in the curriculum so that you get more exposure to both simulated and real-life situations. Further, most accounting schools offer placements, and if you avail of such opportunities, you will make the perfect entry into the industry. This way, you can earn ample knowledge, experience, and a handsome salary, right from the beginning of your career. Moreover, if you happen to get an overseas placement, it can additionally offer knowledge of the intercultural aspects of business accounting and an understanding of the global economy.
As you can see, the field of accounting is promising and profitable, and it is indeed the right time to step in and move forward.