The Importance of basic accounting concepts and principles

“Accounting was the course that helped me more than anything.” –  Julian Robertson

Understanding well the basic accounting concepts and principles are necessary for anyone who is willing to make career in accounting field. If you acquire good knowledge of accounting concepts and principles, you can perform the related tasks in an effective way, while a good understanding at debits and credits leads to carryout your tasks efficiently.

Hence, it is recommended that, after you accomplish business or accounting degree, you find ways to strengthen your practical knowledge by undergoing internship or accepting to work as unpaid employee for a reasonable period of time, so that you can take up an accounting job and carry out its functions successfully.

It is interesting to note that once you have understood well the basic concepts and principles of accounting including debit and credit rules, you will find their application easily in any business organization, whether it is small or big. Since accounting is a business language, which is used universally, your sound knowledge will be very much helpful in this way. Also, it is worth mentioning that though the line of business may be different, as it depends upon the activities that a particular business entity carries out, such as, trading- providing goods or services, but the accounting concepts and principles and the rules of debits and credits will never change. They will also be applied universally. So, if you have acquired a good knowledge, it will guide you effectively. Besides, you will be in a position to correct accounting errors in case they are made due to certain reasons.

Basic accounting concepts and principles include, such as, business as distinct entity, relevance, reliability, materiality, going concern, accrual, timeliness, fair representation or disclosure etc. In addition to gaining good knowledge of basic accounting concepts and principles, your sound knowledge and the application of debit credit rules will be of much value and importance which allows you to perform your duties successfully.

It must be noted that in accounting field, practical experience is of great value and importance. When gained successfully, reasonable experience will provide you many ways for your career growth and development. All that is to be done well is on the basis of strong knowledge of accounting and understanding its concepts which in turn will lead you to gain good experience over time.

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Written by:
K. A. Fareed (Fareed Siddiqui)
Writer, Trainer, Author, Blogger, Software Developer
BBA, MBA-Finance, MPhil-Financial Management, (MSc-Software Engineering)
(PhD-Management)
MA-English, MPhil-English
Post Graduate Diploma in Computer Applications and Programming
Certificate course in English language proficiency
Level 1 – Leadership and Management ILM – UK
Pursuing CMA-USA
Individual Member of Institute of Management Consultants of India