Usefulness of Accounting?
Q: As a student, how is accounting useful to me?Return to our page of Basic Accounting Questions
A: Accounting is the international "language" of business, so if you've ever thought that you may work in a business of any kind, knowing accounting will give you the edge over others.
When I say it's the "international language of business," I mean accounting contains things like the income statement, the balance sheet as well as other accounting reports, which communicate things about a business - for example, you can see how a business is performing and what sort of position they are in.
If you know accounting you can read these financial reports, understand them and use them to make decisions. if you don't know accounting they would be meaningless to you (or at least just very complicated).
Your accounting studies give you the theoretical basis of the subject and teach you the rules and practices of accounting.
After your studies you will start to see it in practice - in business. There you will get first-hand experience with income, expenses, assets, liabilities and owner's equity. You will see these things in action.
Having accounting studies as part of your resume or curriculum vitae will definitely make you more of an asset to prospective employers (even if you are not applying for a job as a bookkeeper or accountant). In other words, it makes you more employable and can easily result in a higher salary.
As a final note, knowing accounting is also useful from the point of view of being able to handle your own finances.
You can use your knowledge to budget and plan your spending, and you can even draw up personal financial statements - a personal income statement and/or balance sheet. So knowing accounting would then give you more control over your personal finances too.
How and why is accounting useful to you?
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