This is the generation of Millennials, where practicality matters more than subjective aspects of anything present worldwide. Education is something basic but essential for every student. It brings-up them as a responsible citizen,and who all will further be the future pioneers of residing countries.
The higher secondary phase of education is crucial for every student like you. And choosing upon a subject area, in which one will continue to master for his or her career, is another point of concern.
But students of this modern age, with a new thought process about everything, are way more interested in selecting subjects which are practical and money-minded in the long run.
Accounting is one of the most popular subjects, being chosen by students, as it leads them towards career points which are higher in demand in today’s corporate fields. Let’s have a proper outline of this subject, and what it holds in the nearby future for students like you:-
What is Accountancy?
This subject area of study mainly revolves around the functions of recording, classifying, summarising, interpreting, and reporting of the business transactions. Along with it, the final process is of communicating these results in form of various financial statements for stakeholder of business entities.
Accountancy is vital for businesses, as it helps to maintain and to provide feedback about the company’s status and liquidity positions in the market. This information is beneficial for long term survival of any business organization.
It is a numerical based subject, so one needs to have a good command over mathematical calculations with better analytical and reasoning skills.
Accountancy – Important chapters to focus on:
The senior secondary curriculum is mostly divided in two years. So, you have plenty of time, to learn the fundamentals of accounting and develop a firm hold upon the principles and core areas of Accountancy.
Have a look upon the list of chapters which are segregated upon two main heads, i.e. theory and practical; also you need to put more focuson:-
- Chapters for – Accounting theories
- Introduction to accounting, its objectives
- Accounting principles by Generally Accepted Accounting Principles (GAAP)
- Basic accounting terms, concepts, and fundamentals
- Books of original entry – Journal, ledger and Trial balance
- Cashbook and other subsidiary books
- Introduction to Computerized Accounting Information System (AIS)
- Accounting for companies: Share, and it’s capital types
- Accounting for Debentures
- Analysis of financial statements: analyzing various ratios (accounting ratio, liquidity, solvency, activity ratios and more), common size and comparative statements
- Cash flow statements
- Chapters for – Accounting numerical
- Bank reconciliation statements
- Depreciation, Provisions and Reserves
- Bills of exchange
- Financial statements of a sole proprietorship: Trading, profit and loss along with balance sheet
- Financial statements of Not-for-profit Organizations: Receipt and payments or income and expenditure accounts
- Accounting for partnership organizations: Change in profit ratios and admission, retirement or dissolution of a partner
- Computerized accounting
- Database management system and it’s business application
Both the theoretical and practical aspects of accounting are necessary to score well in all accountancy examinations. With these proposed session-wise modules, project work is also there for real time application-based learning.
All of these above mentioned chapters are the major ones in concern with the subject of Accountancy; these are covered during the higher secondary. The chapters include topics, which will surely make your knowledge base reliable for higher-level accounting studies.
Score high in Accountancy – How?
Accountancy as a subject can be a little tame, because of the elaborated syllabus for descriptive theories and extra-long numerical along with its tough calculations.
As Robert Kiyosaki has correctly stated,
“Accounting is possibly the most confusing, boring, subject in the world, but if you want to be rich long-term, it could be the most important subject.”
Accountancy has a high-level significance in every business organization, present all around the world. Without it, the entity would not be able to survive for a long run as.
Accounting helps in one of the significant aspects like analyzing the yearly outcomes, communicating the same to the firm’s stakeholders as well as maintaining it for later use.
Let’s get into some magical tips, which will help you score better in exams:
Main tips and tricks:
- Get your hold clear on all the rules for accounting like:
- Debit and credit rules
- Proper recording of transactions in journal, ledger posting, trial balances
- Several accounting principles and concepts followed in most organizations
- Few things you should keep in mind while solving accounting numerical:
- Clear the concepts upon assets, liabilities, profit, loss, debit, credit, and other majors
- Maintain your practical sheets in a tidy way, to avoid errors in calculations
- Try to set a time schedule for each sum in the question paper, to not miss out on more marks later
- Create a working note section, and mention all extra details of the numerical in it
- Try to solve out the problems with proper narrations and headings
- Balancing both the sides (Debit and Credit) of any accounting sum is way tough than ever seen, but is necessary for getting marks. So, tally your calculations well.
- After finishing out the practical, do not forget to revise it once and do the corrections if in need.
Extra preparation tips:
- Knowing the basics is essential, do not try mugging up instead go in detail and make notes of the learning.
- Maintain keeping notes while learning a new chapter and do not read the modules thoroughly.
- Make flashcards for better hold on the definitions.
- After done with the modules, practice more with sample papers.
- Try to incorporate the accounting terminologies in your exam write-ups to score well.
7 Best books for accounting studies:
Numbers – They are not that easy to tackle as it seems to be in any present context. But these numbers are the only ones, helping you to rise in terms of education, business profits, sales, and our world economy as a whole.
So, to have a better understanding of this subject as in accounting concepts, principles, methods along with its numerical and practicality in the real corporate world, one must read the best available books.
Below is the list present for accounting bookswritten by best authors in the world:-
- Accounting Made Simple by Mike Piper
- Accounting All-in-One for Dummies By Kenneth W, Boyd
- The Tax and Legal Playbook by Mark J. Kohler
- Warren Buffett Accounting Book by Stig Brodersen and Preston Pysh
- A Brief History of Economic Genius Paperback by Paul Strathern
- A Random Walk Down Wall Street by Burton G. Malkiel
- Financial Shenanigans by Howard Schilit and Jeremy Perler
These are one of the top-ranked books for learning Accountancy and overall aspects that we use in our practical corporate lives. In these books,accounting information is present in a simplified language without too many terminologies and robust to read points.
8 Career Branches of Accounting:
Accounting – This particular corporate subject of study, has its branches or several departments under it. These branches of accounting show its broad nature and different usage of accounting principles and more in other fields of business organizations.
Each of these departments in the area of accounting isone of the significant points for student recruitments. After the completion of degrees as inbachelors or master’s in accounting, you can try for the vast opportunities availablein this field.
- Managerial Accounting:
This particular branch looks into the compliance measures of maintaining accounting files within the Generally Accepted Accounting Principles (GAAP). Along with it, it deals with the final compiling of company data and provides it to the internal stakeholders.These also help in further forecasting and evaluation of business decisions for organizational development.
- Financial Accounting:
It mainly focuses on developing all kinds of financial documents for the company’s internal and external stakeholders. It looks after all the maintenance requirements regarding past data of company dealings.
It has two types – Internal auditing focus upon all the internal controlling measures developed as in duties, policies, regulations and others within the organization. And external auditing examines the company financials and also verifies it, that every statement should comply with GAAP guidelines.
- Tax Accounting:
This category of accounting area helps any company or clients to abide by all the regulations as income tax, tax advice and others, set by the tax authorities. This particular one saves many from the negative consequences of tax-related matters.
- Accounting Information System (AIS):
This helps the business organizations to handle the developing and installation of modern accounting systems in place. After implementing, it also monitorsthe system workings and manages the software.
- Cost Accounting:
It is mainly high in demand among the manufacturing industry, as it requires recording, analyzing and then reporting of production costs in line. It helps in simplifying the complicated process of recording all actual and standard costs for business operational works.
- Fiduciary Accounting:
It mainly looks into the handling of accounts in any business organization. It also sees that, that whosoever is maintaining company accounts should be a trustworthy one. This particular branch heads into the management of properties and has regulations on trust and estate accounting purposes and more.
- Forensic Accounting:
This involves rules and regulations for all fraud attempts that can take place in any organization. All the investigation regarding fault purposes, business or property disputes or claims come under this particular branch of accounting.
These all have boundless opportunities for all upcoming accounting professionals like you. As this field is in trends, and with it, one can make his or her way to one of the most appealing business organizations present all over.
Major specializations in Accountancy:
Despite the above mentioned branches, where accounting offers you endless working opportunities, but this field also holds something significant in addition, for its fellow followers.
Below are some leading specializations, which accounting is providing for responsive students like us:-
- Certified Public Accountant (CPA):
A certification for providing accounting services to the general public. It is one of the significant and reputed degrees in the field of accounts and also needed to have higher positions in Multinational companies in place.
- Certified Management Accountant (CMA):
These professional perform financial analysis and further documentation for the concerned organization. They help in regulating the internal control process.
- Certified Information Systems Auditor (CISA):
These accredited professionals manage, protect and monitor the company’s IT and business accounting systems. These professionals are mainly into a modern or computerized form of accounting.
- Certified Internal Auditor (CIA):
This certification act as a license for professional internal auditing and analyzing company’s compliance measures with all accounting standards.
- Certified Financial Planner (CFP):
It is a certification for wealth management and financial planning for companies around. It confirms your expertise as a financial planner for taxes, retirement, insurance, and estate planning.
In this fully-fledged field of accounting, one can decide upon, which is the exact position in power that he or she wants to hold in the nearby future.
Accountancy as a subject of study has two main segregations which are in theories and numerics. Both are equally important to score well and have great future opportunities in line. Accounting degrees are offered among the renowned universities all around the world.
Accounting as a subject can test your patience in real means. But if studied well, then it can also fetch great career deals for its followers like you. So, this individual read has already provided you enough of information needed to give Accountancy a thought for selecting it to pursue for future.
MajaKazazic, he has completed her Mastersof Accountancy with a specialization in Business Accounting and Tax Studies from the Stanford University,California. He is currently working with one of the reputed accounting and research firm as a Managerial Accountant.He is into the platform of online tutoring and helping students in this accounting genre for the past few years now.