In the Business world, Accounting is one discipline of study that all people, regardless of job position, should have some knowledge of. Its concepts can be applied to all job specialties, its importance has been promoted in recent years, and it is useful in people’s everyday lives.
First, an accounting education is important because it can be applied in all job specialties. Secretaries must use accounting skills to manage the company check book and orders, auditors have to study financial statements to evaluate the accuracy and integrity of the business, and executives need to judge the success of their business using accounting statements from the past and present. These are just a few of the many possible positions where an understanding of accounting is necessary. Another reason all business students should have some background in accounting is because in recent years, people in the business world have been held more accountable for their financial practices. Since the Enron, WorldCom and recently Satyam crisis when independent auditor Arthur Anderson and PWC failed to report illegal accounting practices, the Securities and Exchange Commission (SEC) has been monitoring public corporations more closely. Thus, companies require not only basic knowledge of accounting to avoid any future misstatements unintentionally occurring but also to answer stakeholders.
Additionally, it is vital that everyone, not just business students, acquire an understanding of accounting for personal benefit. People use accounting in their daily lives when they study financial statements to make investment decisions, assess interest rates to pay off their house mortgages, and calculate rates for vehicle/movable asset payments. In the business world, accounting is utilized in much greater depth, but each individual encounters some activities in his/her everyday life that requires knowledge of accounting principles. Accounting is the most basic framework of business. Without an accounting education, students would be unprepared for the real world of commerce.
First, an accounting education is important because it can be applied in all job specialties. Secretaries must use accounting skills to manage the company check book and orders, auditors have to study financial statements to evaluate the accuracy and integrity of the business, and executives need to judge the success of their business using accounting statements from the past and present. These are just a few of the many possible positions where an understanding of accounting is necessary. Another reason all business students should have some background in accounting is because in recent years, people in the business world have been held more accountable for their financial practices. Since the Enron, WorldCom and recently Satyam crisis when independent auditor Arthur Anderson and PWC failed to report illegal accounting practices, the Securities and Exchange Commission (SEC) has been monitoring public corporations more closely. Thus, companies require not only basic knowledge of accounting to avoid any future misstatements unintentionally occurring but also to answer stakeholders.
Additionally, it is vital that everyone, not just business students, acquire an understanding of accounting for personal benefit. People use accounting in their daily lives when they study financial statements to make investment decisions, assess interest rates to pay off their house mortgages, and calculate rates for vehicle/movable asset payments. In the business world, accounting is utilized in much greater depth, but each individual encounters some activities in his/her everyday life that requires knowledge of accounting principles. Accounting is the most basic framework of business. Without an accounting education, students would be unprepared for the real world of commerce.
The article was written by Mrs. Shilpy Jain, faculty of the Accounting & Taxation department of GRV Business Management Academy, Bangalore
