According to Bloomberg.com, there has been an increase in the demand for accounting graduates since 2008. This is good to know that this profession is sought after by companies in the real world and in effect an increasing number of financially literate graduates to help these companies. However, for all the rest of us non-accountants struggling to make sense of accounting, what makes it so important?
Accounting is important because accounting education can be applied to any job industry. For example, an administrative professional uses accounting to manage a company's checking account. Executives must analyze their company's success by looking at their company's financial statements. It is important to business majors because first of all, they must pass the introductory accounting classes to complete their major requirements. In addition, the business world has become more scrutinized due to what auditors have found in some large companies in the past 5 years. Also, accounting is important for ordinary people. Each person uses accounting skills in their daily lives when making financial decisions, or balancing their own checking accounts.
In my many years of working with small to mid sized companies, I have come to realize that everyone must understand accouting at some level to help them manage their business or simply balance their company checking account.
Furthermore, as my new book "Accounting is Not a Foreign Language" explains, anyone can grasp the concepts of accounting and apply it to their businss and/or individual life to make better financial decisions.
In my book I show you how to:
- Picture accounting as simply starting from a foundation and building up with a building block idea, stressing that without all of the building blocks in place, accounting cannot work. This is an easily grasped concept.
- Stress that the main "building block" is the journals and walk you through real world transactions from each journal, picturing the journals connect by a LINKS approach with L being liabilities, I inventory, N necessary other journal entries, K being keeping cash receipts recorded and S are sales held here.
- Apply how these journal entries flow in the general ledger/balance sheet and income statement.
- Explain how to reconcile (balance) your accounts.
- Explain how to read your financial statements to discover how your company really is doing financially.
A lot of people are trying to cut back on their overhead costs in their business. Reading this book will help people first lose their fear of trying to understand accounting and realize how important understaning accounting really is to them. In addition, they will learn how to cut the costs of large accounting firms to year end only by doing a lot of it themselves.