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What is accounting?
Accounting deals with analyzing, strategizing and tax planning using the collected financial data. Financial statements summarize and reflect your business standing.
All the financial statements such as balance sheet, cash flow statement and income statement will reveal how you got to a place where you are in business.
There are different types of accounting namely financial accounting, managerial accounting, tax accounting, cost accounting and credit accounting.
Why is accounting essential for a business?
Accounting provides a roadmap for a great business journey. Business growth requires businesses to set goals. Accurate reporting of all financial transactions will furnish an exact picture of where you stand.
Financial statements provide an objective answer to your goals.
How does accounting help a business?
Solid accounting is indispensable to secure loans from banks if you have a plan to expand your business. It saves you from deviating or breaking tax rules which may land you in trouble.
It can guide you pay the right amount of taxes so that you can invest that overpaid tax money in your business.
Since the balance sheet gives an overall view of all your multiple accounts and your bank account balances, it enables you to keep an eye over your debts and cash availability and plan your future payments accordingly.
- It helps to get back the outstanding dues that your customer owes you.
- It also enables you to prove the profitability of your business to investors in case you plan to sell your business for whatever reasons.
- Hence, proper accounting is an effective tracking system to save you from pitfalls and to guide you in the right direction.
Accounting as a profession
Accounting opens up great career opportunities for students who are committed to achieve success. They can be absorbed into financial and insurance sectors, government institutions, companies and enterprises for auditing, tax preparation and so on.
- Students with accounting degree are in high demand and are also paid well.
- The prospects of job growth in this industry are quite promising.
- Paying attention to detail is a requisite to be successful.
Why do accounting students feel overwhelmed?
Students that have enrolled themselves for accounting programs should learn statistics, math, business and management subjects.
The jargon and concepts of accounting overwhelm the students because of their unfamiliarity to the various disciplines of accounting.
As some of the elements of accounting are a bit complex, students find the course difficult. They find the classes intense and the workload laborious.
The course itself seems like a fulltime job. To come off with flying colors every student of accounting should work hard consistently, be disciplined and dedicated and should possess the attitude of a go-getter.
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