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The Positive Impact of Having Basic Accounting Knowledge for Your Career
July 26, 2019, 4:15 PM
Accounting can be referred to as the systematic and comprehensive recording of a financial transaction relating to any business.
Umm... what? But what is accounting? How does it help me? Why am I wasting my time here? I don’t know if that’s what you were thinking or not, but it’s definitely what I was thinking after reading that!
Accounting isn’t as intimidating as how people describe it in all honesty. I mean, I understand that it isn’t for everyone. And not everyone can wrap their heads around it. I get that! But just listen to what it can offer to your business and professional development. Sounds good?
1) Major Business Purchase Decisions
So, let’s imagine you’re the decision maker in a big purchase at your firm. Whether it be subscription to a new training program or a lease for a new office space. Having accounting knowledge can help you forecast, plan and navigate your way to best purchase possible.
Usually It is only when it is too late that you realize just how important accounting is to your company. What’s worse than buying a commodity and then later realizing you could have done it in half the cost? Or that it isn’t helping you realize your firm’s goals? (i.e. making more money)
2) Monitor Business Financial Health
The two most important aspects in running any business are cost and revenue. But realizing the actual cost of all your expenses. The hidden costs that are invisible to a bystander is where businesses really thrive.
Accounting knowledge helps in visualizing these hidden costs and quantifying them for an accurate estimate of how well your business is doing. This can then be elaborated upon by forecasting your expenses for the next quarter, or even years.
3) Monitor Business Growth
It’s often said that the best businesses aren’t the ones that operate in the present. Rather it’s the businesses that operate in today with an eye on tomorrow. The ability to realize where your business is headed is VITAL in becoming the next BIG company tomorrow.
Being able to quantify your assets, on-hand and off-hand revenues, liabilities and progressions can accelerate your business significantly. Whether it’s the performance of teams or efficiency of different revenue streams, basic accounting acts as the lighthouse in a turbulent sea.
Sounds like you’d need experts for all this right?
Just basic accounting knowledge. Pearson Professional’s Introduction to Accounting professional program kicks off on 19 August.