is accounting hard

is accounting hard

The Benefits of Studying Accounting

1. Introduction

However, human beings should often be regarded as reeds that are blowing here and there in uncertain winds, which are guided by no laws save those of their own conveniences. That virtually calls into question the reserved position of humans or if indeed humans are in the first place any different from other lower creations. What then would be the purpose of the divine injunction in the Bible? A man should build his house according to his budget. He should also undertake the building with the amount of money which he has. These basic ideas are two business-like thoughts which are subscribed to by all men. It is unlikely that an enterprising person, who is already involved in the business of profit-making, would be derided for expostulating them. That the above is a universal advice freely gives it the pants and apparel of a reasoned act. What makes an otherwise ordinary counsel the concern of serious academic inquiry is the more general democratic and human condition to which it is propounded. For the man in the street, it indeed makes reasonable sense to exhort an enterprise’s chief executive to be reasonable; after all, such a man had built his own dwelling within his own budget limit.

Introduction. We live in an orderly world. For example, even the underlying structures of the universe, which are believed to exist, exist in accordance with a complex plan. Newton’s laws of motion or Einstein’s theory of relativity come instantly to mind, for no part of the Universe acts independently of the other parts. If even inanimate objects in the Universe observe the laws that bind them into an ordered whole, how much more should human actions, which should be superior in complexity to lower creations, observe any law that would underpin their cause and reality?

2. Section One: Understanding the Importance of Accounting

Financial accounting can be defined as “the communication of financial information about the business to the external world of investors, creditors, customers, suppliers and others”. “The process of identifying, measuring and communicating economic information to various users” was defined by R.H. Scrauder. According to the American Accounting Association, accounting is the process of identifying, measuring, and communicating economic information about the company so that interested parties can make informed judgments and decisions. This definition lays particular emphasis on the sensitivity of economic events and the role of managing in preparing the information in the right perspective. Information which would be useful in making economic decisions can be characterized as relevant and has the capacity to confirm earlier expectations or to correct them is components-reliable. To facilitate quantitative measures of accounting characteristics such as relevance and reliability, several researchers etched out the attributes of accounting information. But the complex nature of financial statements did not allow the researchers to find the logic into testing the relationship between their attributes and the utility of accounting information.

To most people, the principle of accounting is restricted to the recording of business transactions. Financial accounting is mainly to deliver relevant financial information about an economic entity, in order to assist potential investors, creditors in making decision. Asset managers, market analysts, government, research scholars and public: all are interested in the accounting information to some extent. Different groups of people interpret the meaning of accounting in different ways. As per the theoretical concept, accounting is the process that includes the recording, classifying, summarizing, analyzing of transactions and communicating the results of that process to the interested parties. Accounting has several forms based on the parties using them: Financial Accounting, Cost Accounting, Management Accounting, Social Responsibility Accounting and Human Resource Accounting.

3. Section Two: Overcoming Challenges in Accounting

The study of accounting presents many frustrations to the student, some of which are a natural part of learning. But there are other “man-made” issues that compound problems and make this learning process more difficult than necessary. Students complain about the amount of material to be memorized, about the level of prior preparation necessary to take a class, often times with time-consuming “busy work” and multiple steps through simple procedures. The prepared, repeated steps through well-worn problems sometimes lie more in the style of the teaching, that of leading through speed-bumps of complicatedness, those adding mental steps of which the student sometimes needs a greater understanding, rather than simply learning and then being able to speak an additional fundamental base to get an answer.

Computers are great tools for freeing us from doing “mindless” work. In accounting, computers are the classic example of this evolution. Now, with the various software options available, students really “don’t have to know anything” to satisfy the computer’s demands. This paradox, the computer doing everything, can have a potentially paralyzing effect on learning. In effect, the key is not to blindly trust the machine, to have enough understanding to be able to trust, but not blindly. The computer must be a tool, not a master. The tools, at various levels of complexity and aid, can’t do everything, but they must be understood if they are to be of any value in solving problems, in getting, in seeking answers.

4. Section Three: Developing Essential Skills for Success

Ability to Use Financial Models Almost any business administration undergraduate degree or MBA program in the country, let alone the world, includes some managerial accounting coursework. Students with the ability to apply the financial and communication skills learned in managerial accounting gain valuable workforce capabilities. While taking this highly respected higher-level course, students also talk about time-value-of-money calculations and discounted cash flow analyses, which allows them to enhance value and foster strong critical thinking processes. While learning finance, students get to use many financial models, which adds an additional dimension. Foreknowledge about the management of assets and costs help in determining company financial forecasts. Our common friend, time-value-of-money, can’t be forgotten; other than recognizing capital investment decisions, there is relativity to statistics, policy and goal setting. Trends affecting the global environment are hard to overlook, so we frequently engage in discussions around social responsibility, ethics and the role of governance. At the end of the day and from a student’s point of view, managerial accounting is challenging, thought-provoking and has the rewarding consequence of making finance much easier to understand from professional, realistic and transaction-oriented viewpoints.

Most students are surprised by how much accounting has to offer beyond the counting of beans. But as you almost certainly know, accountants get places as ‘bean counters’. But it’s not just the bean counting that will help you get top jobs; it’s your developing essential skills and worthwhile information. This, my third set of benefits, is what we will be covering in this section. When students begin the study of accounting, they are often not aware of these endless prospects. To help them see the big picture, I persuade them to look beyond the numbers and expand their education to see what a great tool the study of accounting can really be.

5. Conclusion: Embracing the Rewards of Accounting

Accounting students receive many rewards, including a higher demand for their expertise, a competitive advantage in the job market, and the ability to use their skills to make a difference in the world. Accounting provides a foundation for both the pursuit of higher education and more advanced certifications and is a great skill to have simply for managing one’s personal life. There is a wide range of disciplines that make up business curricula; however, as administrators in business schools strive to ensure that programs offer relevant coursework and experiences to their students, they centralize an underlying business acumen and base of knowledge that is fundamental for ideating, designing, resource stocking, creating, delivering, capturing, interpreting, inspecting, and measuring value in a commercial or noncommercial setting.

Accounting is the language of business, communicating the results of business operations and financial activity. And because accounting is a universal, vital function in any company or organization, there are a host of benefits to studying accounting at university level that have nothing to do with actually operating as an ‘accountant’. Accounting exemplifies logic and commonsense and allows for deep analysis and full assessment over self-interest, serving a logical, compassionate public interest. The ethics and discipline of accounting teach, and require, greater discipline, ethics, and analytical skills than the pursuit of self-interested desires and unbridled self-indulgence—a thought increasingly out of vogue in today’s instantaneous virtual world. The basic lessons and honed skills of accounting are deeply rooted in logic, commonsense best practices, and discipline and provide a strong foundation for individuals to fulfill their future potential.