Accounting is an old concept that dates back to ancient Egyptians who used it to audit their finances.
In today’s modern world, organizations hire accountants to gather crucial data to ensure that the company is not losing money, employees are getting paid, and there are no compliance issues with the authorities.
It can be easily said that accounting is the backbone of any company or business. No business can fully function until its finances are being recorded in an organized manner.
In this article, we will be talking about the importance of accounting in business and why you should pursue a degree in it.
Importance of Accountancy in Business
Accounting is essential to every business’s success. It records every transaction in a company’s books, which shows the profit/loss, cost/earnings, and liabilities/assets of an organization.
The management and investors can then use these records to judge the company’s financial performance. They can use them to plan and make crucial business decisions.
The company’s financial records are also crucial for reporting taxes and compliance with government agencies. With that said, let’s get into why you should pursue a degree in accounting.
There are many reasons to pursue an accounting degree. We have listed the best ones down below:
1. Start an Exciting Career like the CFA
A CFA is a chartered financial analyst and is one of the most popular designations in the investment industry.
Due to its minimal requirements for entry, the CFA program attracts many professionals who do not have a finance background.
However, the CFA exam is challenging, and only 50% of candidates pass it. You do not have to worry, though, as resources like the Wiley CFA review course give you access to expert instructors to help you study for the exam. They also give you access to the platform until you pass the exam.
2. Learn Skills you can Apply Outside of Work
We learn subjects like geometry, algebra, trigonometry, and calculus during our high school years. Unfortunately, most of us, who do not pursue a career in engineering, architecture, or science, never get to use them in our life because we do not need them.
However, you can apply the knowledge you gain from an accounting degree to your professional and personal life. Accounting principles like double entry, the expense recognition principle for credit card applications, the matching principle, the costing principle, and the objectivity principle can help you at work or in your daily life.
3. Join a Growing Field
Accounting is a fast-growing field. Organizations across industries are looking for competent accountants who can help them manage their financial books. According to the Bureau of Labor Statistics (BLS), jobs in accounting will grow by 7% from 2020 until 2030. The job growth is as fast as the average of all occupations. It is mainly due to workers retiring or switching careers.
In addition, drafting financial records and managing ledgers is not the only career option at your disposal. You can also start a career in many exciting roles in the financial industry, like a finance manager, financial advisor, investment advisor, or business analyst.
4. Job Security and Lucrative Pay
Despite all the technological advances, businesses will always require the services of an accountant. Organizations have adopted new technologies like digital ledgers to keep records instead of a ledger book. However, these new technologies still require the brain and expertise of an accountant. Furthermore, companies are paying high salaries to secure their services due to the high demand for competent accountants. According to the Bureau of Labor Statistics, the average salary for accountants is $80k per year.
5. A Wealth of International Opportunities
Earning an accounting degree can help you land a job anywhere in the world. If you have always dreamed about working overseas, the knowledge you gain from an accounting degree will come in handy as most of its principles and techniques apply internationally.
There will be specific laws and regulations you will have to be aware of. You can take additional classes that teach you the fundamental rules and regulations for the country you want to work in.
6. Perfect for Introverts
Not all of us like to be social and outgoing. Many of us lead a quiet life and get anxious in or around people.
Accounting degrees are perfect for introverts because of two reasons. Firstly, you can earn an accounting degree from the comfort of your own home, as many of the world’s top universities offer online programs.
Secondly, most of your time is spent with numbers and data once you become an accountant. You will only have to interact with people when you explain your findings to a company’s management.
7. Develop Strong Technical Skills
As a student of an accounting program, you will develop expert-level technical skills and have a strong business foundation. You will become efficient in multiple data forecasting tools like:
- Excel modeling
- Valuation models
- Data analysis
- Sensitivity analysis
In addition, you will gain the ability to think strategically and solve problems for any organization and help them make informed business decisions.
8. Take Advantage of Graduate Schemes
Many of the top accounting firms offer graduate schemes. A graduate scheme provides graduates with entry-level jobs that serve as a training program. Their main purpose is to help the employees get familiar with multiple departments and their projects to gain valuable experience and knowledge. Graduate schemes typically last two years and are usually only for candidates starting right after graduation.
If you think you have what it takes to excel while studying for an accounting degree, then you can take advantage of graduate schemes to land a job at some of the biggest firms in the industry.
Read more: Best Small Business Accounting Software
Accounting is integral to every organization’s goal for success. And there is a lot of demand for competent accountants, and because of this, many companies are paying top-dollar contracts to secure their services.
There are many other reasons to pursue an accounting degree, such as job security, learning skills you can apply outside of work, access to exciting fields like the CFA, a wealth of international opportunities, and getting jobs right after graduation through graduate schemes.