Are you one of those people who has always had the gift of counting or calculating numbers, even those in triplicate or quadruplicate or all the other “cates” that come after, with no trouble at all? Maybe organizing and planning especially with finances just comes naturally to you?
And yet you still aren’t sure what you want to do with your life.
Well maybe a degree in accounting might be just the perfect fit for you. I’m sure you already know the basics, accounting is the systematic means of recording, processing and summarizing financial transactions. Producing financial reports, showing the way money has been spent or used whether wisely or abused and providing them to stakeholders of the business, the boss, management or investors.
It is the language of business. Its sole purpose is to communicate information to business decision-makers. The important tool for anyone who is making business decisions is information and it is useful to know where information comes from; what it means and how to use it to make informed business decisions.
However, what is the value of accounting for an everyday person going about their lives like you and me?
- It comes in handy when setting long-term goals; getting out of debt, starting a business, saving for your kid’s education and planning for your retirement.
- At some point in your life, you are going to purchase a vehicle and for example, the salesperson suggests you lease the car. What is a lease? They give you some explanation but you don’t understand, they even show you a lease contract but you still don’t get it.
- Let’s say you want to buy a home and you need financing. You go to the bank and they explain your options to you. “You want a fixed -rate mortgage?” You do not have a clue what they are talking about because you cannot speak the language of the business relative to the purchase of a home.
- You want to invest your money into a business. Do you know what type of investment you want? The risks and potential advantages of investments? Do you know what the stock market is?
All these scenarios represent situations where you can be of use to those of us who need a financial Einstein!
Even if you choose not to go into business with your accounting degree, you are going to be forced to make financial decisions throughout your life. Therefore learning to manage your finances and having basic accounting skills gives you an advantage to make better financial decision.
Understanding the basics of accounting will help you make better financial and business decisions even for yourself. One can have a better financial literacy by educating yourself on how to manage money, personal finances and investments in general.
It’s one of the most important skills you can have as an adult. It teaches you to budget, save, the value of money, interest and learning to navigate your way through all that financial jargon thrown at you every day.
The key part of accounting is forecasting, when accountants look back at historical data and make estimates, predictions of what a business would be in the future, what future expenses to expect or what the cash position might look like.
These techniques can be applied in everyday life when it comes to setting long term goals.
Botho University offers a BSc (Hons) in Accounting targeted at those who wish to enter the accounting sector or want to acquire financial skills to use in their businesses.
For more information on this programme and more do visit our programmes web page, visit: http://bit.ly/FacultyOfBusinessandAccounting