Accounting is the processing, the measurement, and the communication of the financial statements of an organization or a business. Accounting can also be referred to as “accountancy”. Accounting in schools is a branch of the business or commerce department. In accounting, several processes are used including summary; analysis and report are used to oversee regulators, agencies, and tax entities.
Accounting is one of the major factors of any business or organization. Every organization has or needs some or all the three accounting streams. These streams are; Financial Accounting, Cost accounting, and management accounting.
In summary, financial accounting involves the systematic record of the transactions of a business or organization in the individual books of accounts which are maintained by the business for the preparation of financial statements. The two financial statements prepared by the organization are the profit and loss account and balance sheet.
Cost accounting on the other hand refers to the systematic recording and classification of expenditure incurred during business operations in order to find out the cost.
The third one which is Management accounting is the process of interpreting, analyzing, and presenting collected accounting information using the two other accounting streams, financial and cost accounting to help business and organization management on taking decisions, creating policies, and the operation of the business or the organization. Thus to say, management accounting is dependent on the financial and cost accounting.
BENEFITS OF CHOOSING ACCOUNTING RELATED COURSE STREAM IN 2020
There are several benefits to choosing an accounting-related course, especially in this era of technology. The inclusion of data science and other technical knowledge to accounting has made accountants very relevant even in this technological era. Some of these benefits may include the increased level of accountants’ salary, the flexibility in the job relating to accounting, the opportunities available for advancement, the diversity in the accounting course which makes specialization simpler and easier, the essence of the course to the world which makes it a passion to do and many more.
Some of the benefits of studying an accounting-related course in 2020 are explained below.
DEVELOPMENT IN CRITICAL AND PRACTICAL SKILLS
In accounting, there is always advancement in the knowledge that demands critical thinking and practical skills so accounting personnel always have the opportunity to develop themselves in their fields whenever there is a development, being a mathematical or technological advancement. Accounting has grown into a great and deeper technological way that demands a lot from accountants. This keeps those in the accounting firm always updated and relevant in the job field. In recent years, the accounting field has been advancing even more into the technological field. The Institute of Management Accountants (IMA), for example, has been transgressing in the technological aspect of accounting, making Certified Management Accountants (CMA’s) very relevant in the business field even when robotics rise high in the business field, especially in the area of Digital Science and Data Analytics, Communicating in the 21st Century, Blockchain and many more.
EMPLOYABILITY WITHIN ANY INDUSTRY
Every organization or business has this money motive which gives a high demand for accountants to measure, analyze, interpret, and communicate the financial statements of the organization or business to the management. The works of the accountants help the management in their decision making, predict the future of the business or the organization, and improve on previous works. The well being of the business or organization is interpreted by the accountants to the management using the financial statements of the business or organization at hand. Employers seek to employ accountants anytime possible when there is a chance due to the relevance of their services in any organization, party, or business. They tend to be the pillars to keep the business in motion, determining the present and future status of the business, analyzing and communicating the progress of the business using the financial statements of the business, and improving upon the running of the organization.
DIVERSE CAREER ADVANCEMENT OPTIONS
There are different streams of accounting which makes the diversity versatile. People studying accounting or even those in the accounting field have the opportunity to choose which stream of accounting they prefer to join. Such streams include cost accounting, management accounting, and financial accounting. Accountants can work as finance managers, financial controllers, financial advisors, finance directors, management accountants, financial secretaries, strategic analysts, risk managers, business lawyers, business advisors, forensic accountants, forensic analysts, and many more. This makes being in the accounting field a versatile thing. You can choose between the different available options in accounting. The high essence of accountants makes them very relevant to many businesses and organizations.
INCREASE IN ACCOUNTANTS’ SALARY
Due to the advancement in the accounting career, the salary of accountants rises most times, especially after an academic upgrade in a professional course such as the CMA, ACCA, CIMA, CA, MA, ICAG, and many other accounting professional courses. These professional courses help accountants and students of accounting to learn more as new things emerge in the accounting field to keep them updated and learned in their field of study and profession, making them very relevant all the time with no replacement options. Accountants have their salary increased almost every year due to the nature of their work and their relevance to organizations and businesses. Managers actually believe that Accountants contribute greatly to the development and advancement in organizations and businesses since the can measure, analyze, and predict the future of the organization or business using the financial statements of the organization. They also affect management’s decision making after their hard and relevant analysis of the business.
THE ABILITY TO START THEIR OWN BUSINESSES AND ORGANISATIONS
Accountants can start their businesses since they are trained in the management of businesses and organizations. Some accountants choose to start their firms after their studies. Such firms that accountants can start on their include, finance consulting firms, forensic analytic firms, management consultancy firms, forex bureaus, imports and exports, international business consultancies, strategic analytic firms, and many others. Due to the broad knowledge, they gain in studies, they can start businesses on their own and make it work.
GAINING A BETTER UNDERSTANDING OF TAXATION AND BUSINESS LAW
In their training as accounting personnel, they are trained in the field of taxation and business law which are very relevant to any firm and economy. These fields make the accountant very relevant to the business industry and help bring any criminal agenda to the right place. Every nation depends on the tax rate in the nation to determine their outputs and outcomes, their Gross Domestic Product (GDP), and the per capita of the nation. Accountants are trained to handle this critical field in a business, organization, or economy.
A BETTER UNDERSTANDING OF FINANCE
Accountants are the individuals who usually are well trained in the field of finance. They are specifically trained to handle financial matters from taxation to cost, profit determination, loss change, and other relevant keys in business. This gives them great honor and essence in the business field.